First BanCorp. New

Hello, everyone, and thank you for joining the first Bancorp First Quarter 2025 Financial Results Conference Call. My name is Marie, and I will be coordinating your call today. During the presentation, you can register your question by pressing star followed by one on your telephone keypad. And if you change your mind, please press star followed by two. I will now hand over to your host, Ramon Rodriguez, Investor Relations Officer, to begin. Please go ahead.

Thank you, Mary. Good morning, everyone, and thank you for joining First Bank Corp's conference call and webcast to discuss the company's financial results for the first quarter of 2025. Joining you today from First Bank Corp are Aurelio Alemán, President and Chief Executive Officer, and Orlando Vergés, Executive Vice President and Chief Financial Officer. Before we begin today's call, it is my responsibility to inform you that this call may involve certain forward-looking statements, such as projections of revenue, earnings, and capital structure, as well as statements on the plans and objectives of the company's business. The company's actual results could differ materially from the forward-looking statements made due to the important factors described in the company's latest SEC filings. The company assumes no obligation to update any forward-looking statements made during the call. If anyone does not already have a copy of the webcast presentation or press release, you can access them at our website at fbpinvestor.com. At this time, I'd like to turn the call over to our CEO, Aurelio Arimano.

Thank you, Ramon, and actually, good afternoon to everyone, and thanks for joining our call today. Usually, I will start with a brief discussion on the financial performance, and then we'll move to some highlights on economic matters. Again, we delivered what I consider a very strong quarter for the franchise, driven by the margin expansion and the positive operating leverage, question on profitability, ROA and ROE. Return on asset was solid at 164, and pre-tax pre-provision income grew by 7%, reaching 125 million during the quarter. The project continues to perform quite well as we enter 2025 with strength, the strength of the balance sheet, the strength of capital, and obviously a proven track record to successfully navigate unforeseen conditions while supporting our clients. That's really the main goal. Turning to the balance sheet, total loans were slightly down on the late quarter basis. I think I mentioned last quarter that we were excited, you know, every payment that didn't happen and took place this quarter. On the other hand, you know, renations were healthy and reached $1.2 billion in line with usually the first quarter. On the other hand, you know, the pipeline is, we have a healthy pipeline in place and it actually continues to build. as we continue to work with our clients, supporting them in this current operating cycle. As we know, it's difficult to predict closing of chunky deals usually, but at this time, we continue to sustain our mid-single-digit growth for the year. That remains unchanged. Core deposit flows were stable. We saw, and I speak of, in non-interest bearing, which grew 70 million. And when you look at deposits in Puerto Rico, they have an end growth, what we consider core, excluding government, of $75 million. And actually, if we adjust, we actually lose two large, chunky deals on the deposit side, on the pricing side, of $175 million. So it's going to be much better, but I think we're very pleased that the granularity continues to improve. Credit performance. was stable, and we continue to see the normalization that we talk about in the consumer credit trends. Early delinquency is down when compared to private quarter. And finally, regarding capital, as we always say, we continue to be opportunistic in our approach how to deploy. We redeemed approximately $50 million in some of the ventures and declared $30 million in common stock dividends. we decided to resume our stock purchase program during the quarter, and we repurchased 22 million in the first quarter, in addition to the drops, and we expect to complete another 28 million during April, which will reach the goal for the second quarter of 50 million in common stock. Just as a reminder, we still have 100 million left of the prior year approval, which obviously, as we continue to be opportunistic, we're looking to deploy in the second half of this year. Please let's turn to slide five. Again, the financial resorts are a product of execution of the teams and a stable economic backdrop, which continues to show you know, positive metrics. Business activity continues healthy. Obviously, consumer confidence, you know, as of today, is about to be determined based on new policies, fiscal policies and tariffs, which are under evaluation. See everybody pending to see what the impact is going to be in that confidence. On the other hand, year-to-date fiscal government tax collection are up by 3%. Unemployment rate, again, another low register in the first quarter. And when we look at quarter to date, debit and credit card sales were 3% in the first quarter in 2024. Dispersion of federal disaster relief funds continue, and we continue to participate in affordable housing projects primarily. and looking at some infrastructure improvement too. On the digital front, we have continued to invest. This quarter, we achieved a very important step in converting to the centralized FIS cloud. Our core system now, all our core systems are in the cloud. And then our franchise investment continues in the digital environment, which digital adoption continues to progress in line with our objective. Again, capital utilization, first priority is really trying to grow the balance sheet and obviously improve our products, improve our infrastructure. We still believe it's early to assess the broader economic implications of the changes in human policy we'll have in Puerto Rico, but again, we'll keep you updated. I think all bankers are just in the same place looking at potential implications to our our economies and our core customers. So, as I mentioned, you know, full year guidance remains unchanged, and I guess we'll provide an update in the next call in July. So, despite this concern, you know, we remain committed to our disciplined approach of delivering consistent results and creating shareholder value. Now, with that, I'll pass it to Orlando to give you, you know, a little more detail on the financial results. Thanks for joining today.

Thanks, Aurelio. Good afternoon, everyone. As Aurelio just mentioned, we recorded another strong quarter highlighted by the net interest expansion. We earned $77 million in net income, which is $0.47 per share, compared to the $76 million or $0.46 we had last quarter. This translates to return on average assets of 164. The provision for credit losses for the quarter increased $4 million. It's primarily some projected deterioration on the consumer real estate, the commercial real estate price index, I'm sorry, that affected the allowance for credit losses for commercial and construction loans. and some higher adjustments we did to the qualitative framework due to the uncertainty of the economic environment considering all the things that are going on with the tariffs. Net interest income for the quarter was $212 million, which is up $3 million versus the prior quarter. The income does include a $1.2 million prepayment penalty collected on a prepaid commercial loan. but it's also a net of $2.7 million impact from two less working days in the quarter. Funding costs drive a lot of this. It was down $5.8 million in the quarter, including the days impact. As the cost of the interest-bearing checking and savings accounts decreased seven basis points to 145 basis points as a cost, and the cost of time deposits came down 12 basis points to 3.39. We also raised our reductions in wholesale borrowing costs due to the full quarter effect of the redemption during the fourth quarter of the $50 million in subordinated debentures, and a decrease in the average balance of Federal Home Loan Bank advances. We had some assurances during the month of March that were repaid this quarter. In addition, we had in the quarter an improvement of 11 basis points in the yield of cash and investment securities. Some of the lower yielding cash flows from the investment portfolio were reinvested or kept at the Fed account, which is a higher rate. On the other hand, the loan portfolio yields did decrease two basis points, mostly on the commercial, which decreased nine basis points due to the repricing of the floating rate component of the portfolio. which was compensated by increases in the yield of the consumer portfolios for that net effect. The net interest margin dynamics continue to play out well. Margin expanded 19 basis points in the quarter to 452. However, this expansion did include an increase of four basis points, which was related to the prepayment penalty I just mentioned. and some higher income on late fees in the consumer portfolios. The adjusted margin eliminating some of these items was really 448, which is a 15 basis points pickup from last quarter. This increase reflects our plan change in asset mix as we deploy the cash flow from the investment, lower yielding investment portfolio to higher yielding earning assets. and also the repayment of the borrowings, the higher-cost borrowings. We also had the benefit of the additional reductions in funding costs we achieved, as I just mentioned. This quarter, we received approximately $352 million in cash flows that were yielding around 1.5 percent, which obviously we priced at higher rates with benefits coming in the future quarters. At this point, assuming a normal flow of deposits and stability on the lending side on the loan portfolio, we believe that NIM should continue expanding over the next few quarters. We benefit from additional repricing opportunities on the investment portfolio cash flows, either through lending, higher yielding securities, or even the cash at the Fed, as well as the cancellation of some of the higher-cost funding. The projected investment portfolio cash flows for the second quarter amount to approximately $260 million, with a runoff yield of 1.5 percent. And we also expect approximately $1 billion in additional cash flows during the second half of the year that will also be priced at higher yields. Depending on the timing and amount of rate cuts in the second half of the year, we estimate that a margin should improve approximately five to seven basis points per quarter for the remaining months of this year. In terms of other income items, it was stable, but we did have a $3.5 million increase related to contingent insurance commission that were collected during the quarter. That happens in the first quarter of every year. And some additional income we had from purchase tax credit. On the expenses, expenses were $123 million, which is $1.5 million lower than last quarter. Business promotion was $2.1 million lower based on the seasonality of marketing efforts. But also, we had debit and credit card processing expenses due to $2.2 million in expense reimbursements we received in the quarter. On the other hand, compensation expense was $2.5 million higher in the quarter, which is related to seasonal payroll taxes, and $2.9 million in bonuses and stock-based compensation usually take place in the first quarter, which offset a reduction of $1.6 million related to two less working days in the quarter. If we were to normalize compensation and card expenses, Expenses for the quarter would have been $123.9 million. And if we exclude OREO, they would have been $125.1 million, which are within the guidance range we had provided in the last call. Last quarter, just to remind you, last quarter expenses, including OREO, were $125.6 million. The efficiency ratio for the quarter was 49.6 percent, which compares with 51.6 in the fourth quarter. But if we adjust some of these income and expense items that don't happen every quarter, the efficiency ratio would have been approximately 51.3%, roughly in line with our targets. Based on our estimates, we expect that our expense base for the next couple of quarters, excluding the Oreos, will continue to be in the range of 125, 126. And our efficiency ratio will be around the 50 to 52% considering the changes in expenses and projected income components. In terms of credit quality, NPAs did increase in the quarter $11 million, which is basically due to an inflow of one non-accrual commercial real estate loan in the Florida region that amounted to $12.6 million. On the other hand, we had reductions in residential mortgage, non-performing, and OREO balances, which offset some of this increase. The MPA ratio was 68 basis points to total assets for the quarter. Just to mention, this non-performing loan that migrated in the Florida region did not impact the allowance for credit losses. because it's collateralized by a good value collateral at this point. The inflows to nonperforming for the quarter were $43.4 million, which is $6.3 million higher than last quarter, basically related to this one CRE case that went into nonperforming. But we did have reductions of $6.5 million in consumer loan inflows. In general, I would say credit metrics are holding up well. Loans in early delinquency were down 21.8 million during the quarter. We have started to see some normalization trends in consumer credit, with consumer loans in early delinquency decreasing by 19.5 million when compared to prior quarter. The allowance for the quarter did increase by 3.4 million to 247.3, And this reflects the higher qualitative adjustments that we incorporated to consider the uncertainty in the economic environment. The ratio of the allowance grew four basis points. Allowance to loans grew four basis points to 195, mostly in the commercial side, driven by the forecasted deterioration on the commercial real estate price indexes. However, we did see some improvements in the unemployment rate projections on the shorter term, which led to five basis points reduction in the allowance for consumer loans, which ended up at 3.78% of loans. Net charge for the quarter were 21.4 million, or 68 basis points of average loans. It's down 3.2 million from last quarter. But this reduction includes a recovery of 2.4 million, we recognize, related to a bulk sale of consumer charge-off loans we had in the quarter. Excluding this recovery, net charge-off to average loans would have been 76 basis points, which is slightly lower than the 78 basis points charge-off rate we had in the fourth quarter. On the capital front, as Aurelio mentioned, we executed on our capital deployment priorities during the quarter. We redeemed approximately $50 million in subordinated debentures on top of what we have already redeemed in prior quarters. It's only $11 million left of those debentures. We also declared $29.6 million in dividends and repurchased $21.8 million in common stock. In terms of our capital impact, these actions were offset by the earnings, obviously, which at the end resulted in higher regulatory capital ratios when we compared them to last quarter. During the quarter, we also registered a 7 percent increase in tangible book value per chair to $10.64, and the tangible common equity ratio expanded to 9.1 percent, mostly due to an $84 million improvement in the fair value of the securities that lower the amount of adjusted or comprehensive loss. The remaining other comprehensive loss represents $2.91 on tangible book value per share, and about 220 basis points in the tangible common equity ratio. As Aurelio just mentioned, we will continue with our strategy of deploying excess capital as thoughtful as possible to improve franchise and shareholder value, and we continue with our execution of our plans. This concludes our prepared remarks. Operator, please, we'd like to open the call for questions.

Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure that your device is unmuted locally. Our first question comes from the line of Frank Chiraldi of Piper Sandler. Please go ahead.

Hey, good afternoon. Just Orlando, I think you mentioned some numbers around securities book in terms of yield, in terms of cash flowing. And I think you said one and a half percent for the second quarter. Did you share what those yields are coming off in the back half of the year?

The yields on the second half of the year are slightly lower. They're going to be, talking from the top of my head, but they're going to be around 135 to 140, what's on the second half of the year.

Okay. And then, could you share just a ballpark in terms of that assumption you gave around margin expansion, I think five to seven bits, of what that assumes in terms of pick-ups? on that, you know, what you expect the new, I don't know if it's a mix of loans and securities you assume this is going, these cash flows are going into, but what kind of pickup do you anticipate? What sort of blended rate are you looking for on the new origination to get to that sort of margin expansion?

We're assuming, there are a few things, obviously. We're assuming it's going to be a couple of somewhere around 150 to 300 basis points. But, you know, remember that that assumption considers that there might be some rate reductions in the year. At this point, it's become a little bit unpredictable. But when we had done our original estimates for 2025, we were assuming two cuts in the second half of the year. Maybe we're looking at three now. So, you know, that reflects what would be what we can keep on the investment portfolio, cash, and obviously, depending on what's the growth on the loan portfolio, it could move a little bit higher than that. But also, you know, it all depends. We were able to move funding costs this quarter a little bit more than we had anticipated. That helped the margin pick up in this quarter. Uh, so, uh, depending on that, uh, you know, the, the next quarter without, you know, assumptions are based on those, uh, those, uh, numbers I just gave you.

Okay. And just, just one more on that line of questioning in terms of, um, you know, the one and a half percent in the second quarter, back after the year, one, three to one, four, in terms of the cash flows, um, just looking out beyond 2025. Is it similar levels of cash flowing out of that book and at sort of similar yield coming off? Can you share any sort of detail there?

I don't have with me the additional, Frank. I need to get that in future years. Remember that duration in the portfolio is not high. The amounts through March of next year was $1.5 million. That includes that billion I just gave you and the $2.6 million. So it's $250 million more in the first quarter of 2026. But I don't have the full report with me here to give you some more indications of the full year.

Okay. All right. So, at least for the first quarter, you said $250 million?

In the first quarter, it's about $250, yes.

Okay. Okay. I appreciate it. And then, just lastly, if I could just sneak in one more. In terms of the commercial mortgage loan, or even just commercial mortgage in general in Florida, I think you had the one large payoff. And you had talked about, I think it fell from four Q to one Q, but just in terms of the general thoughts around Cree, your Cree in Florida, something that you guys are looking to continue to grow, and then kind of where are you seeing Cree Where are you seeing the stress? And if you could just talk about that large payoff, you know, I guess that's by design, just maybe a little more detail there. Thanks.

You know, the large payoff was in Puerto Rico, and the MPA was in Florida. You know, the large payoff was, you know, a refinancing that we did not participate in. based on terms, expected terms. And the one in Florida, you know, I think we put some details in the release. You know, we believe it's a one-off case. It's on the hospitality sector. Really good loan-to-value. We actually don't expect any losses in that one. Okay. All right, I appreciate it. And on the CR refund, you know, we continue to originate. We have a good pipeline. And obviously, under our underwriting criteria, we continue to move up the balance sheet, yeah.

Our next question is from Greg Rabotin of Hovde Group. Please go ahead.

Hey, thanks for the time. Wanted to ask on the loan origination side, you know, I know commercial, can be a little lumpy, you know, and obviously 4Q is really strong. But if I heard correct, you know, the guidance for the year is kind of that mid-single-digit number. And just wanted to see if you think that the commercial side that's on slide 13, if that grows from here, you know, or if you'll see more on the consumer side, just looking for some color on where you guys see the originations coming from.

Yeah, actually, you know, we think this year, you know, it's different to prior years, obviously, where we see the opportunities, where we see the performance of the books. And we believe, you know, both construction and commercial will grow. We believe the consumer will grow at a slower pace in prior years. And we believe that actually we're going to see some growth in residential, which we already actually experienced this quarter. which was not the case, if you look back, very slight growth over the past year or so. So that's the way we see it. I mean, think of the growth being combined, yeah.

Okay. And then I noticed you guys didn't roll out the Apple Pay. Any color on if that was, you know, by choice or... What was the function there, and then if you guys might be looking to do that going forward?

Yeah, we have about, you know, I would say a dozen of improvements to the data functionality that are currently being worked on. We did launch, you know, Samsung Pay and Google Pay for the MasterCard debit side. We are a dual brand. We do both Visa and MasterCard. The Apple Pay project is ongoing. We have some vendors that are involved in the execution, and there's priorities on timing with those, but you should see that happening during this year. Combined with some of other functionalities that we continue to enhance in our digital front.

Okay. And then Aurelio, would you consider you know, if you just think about Puerto Rico versus Florida, you know, I know sometimes you've said you think there's probably more risk, um, credit wise in Florida than there is in Puerto Rico. What, um, what do you think today, you know, just in terms of where you see the credit risk, particularly on the, uh, the commercial side?

Well, I, you know, I think I, I make comments regarding competitive landscape and obviously Florida it's, uh, It's more competitive on the deposit side. Puerto Rico is competitive, but at a different level. Florida has a multiple number of competitors at very, very large times also there. In terms of credit, we continue to see a healthy pipeline. We have our own writing guidelines. The portfolios have performed. If you look at the segregation of the ACL, the portfolio has performed really well in Florida. You know, cases that we see, obviously, it's a smaller portfolio than Puerto Rico, so, you know, you have less ground already. But, you know, at this point, you know, we continue to see Florida as a healthy portfolio. We have very limited office there, small, and it's a well-diversified book, so. Puerto Rico, when we say lower risk on the CID, remember there was no construction built for many years in Puerto Rico, and asset values didn't, you know, increase rapidly, so loan-to-values are quite healthy in the Puerto Rico portfolio, so that's why. And yes, you know, there's opportunities for growth, but, you know, we keep ourselves to our underlying guidelines and try not to deviate from those. Okay. Appreciate all the color, guys. Thank you, Wes.

Our next question comes from the line of Steve Moss of Raymond James. Please go ahead.

Good morning. Morning.

Morning.

Maybe just following up on loan growth here. Morning. Maybe following up on loan growth here, just kind of curious, you know, with pipeline building, I hear you guys are a little bit more uncertain in the market, but do you think loan growth will happen, you know, Pick up this quarter, it sounds like it will be a little bit positive, but do you think it will be more back half-weighted as we think about the mid-single-digit growth?

Well, you know, in the last call, we actually said that we see long growth, you know, in the second half of the year. If I recall, we did cover that item. You know, to be honest, you know, we, you know, in today's environment with, you know, the conclusion of tariffs, is going to be the answer to your question because some investors are sitting on the sidelines waiting to see if I close this or I don't close it. So that's happening all over the industry, not only in Puerto Rico. So I think the conclusion which will happen over the next 90 days will bring conclusion to that the pipelines continue to build. So if I look at my pilot today versus the one that I have in January, it's actually better. which is a positive, but obviously the uncertainty on the market is different. That's just a reality that we have to deal with. Obviously, if you go back to the pandemic, same thing happened. All of a sudden, we didn't know how to project. That's what I said in my remarks. We have a good pipeline. We're not modifying our guidance, but only policies impact will tell how markets will behave. And it's not going to be just a first bank thing. It's going to be a market thing. So we're very closely working with our clients to continue moving the needle and supporting them. But market could change a perspective of risk and perspective of investors entering into deals or not. So that's just a reality that we have to deal with in a recycle. But, yes, for now, our mid-single-digit guidance continues.

Got you. I appreciate that color. And then in terms of just kind of curious, you know, on the, you know, I think the phrase was some normalization of consumer credit. You know, I see, like, the consumer charge-offs were up year over year. Just kind of curious how you guys are thinking about consumer charge-offs for the full year.

We expect an improvement on that metric, yes, from prior year. We expect a reduction prior year on the charge of rate. On the rate itself, obviously, it's a balance that could grow and absolute amounts could grow, but charge of rate should improve year over year.

Remember, Steve, that we saw a ramp up of charge of through 2024 on the consumer side. So when you compare it to first quarter, we're looking more to prior quarters, because that's where we say that the benefit is going to start coming at some of these older vintages that behave worse are getting run off. So we have that. And remember, we also had the sale charge of loans that improve the debt charge on the consumer side.

Yes. Okay. Great. I appreciate that color there. And just one last one for me, just for clarification, the five to seven basis points of margin expansion is off the 448 adjusted margin, correct?

That is correct. That is correct.

Okay. Perfect. Well, that's all for me. I appreciate all the call here. Thank you very much.

Our next question comes from the line of Kelly Motta of KBW. Please go ahead.

Hey, good afternoon. Thanks so much for the question. Maybe piggybacking off that margin outlook, I really appreciate all the color on on the securities repricing as well as your outlook there for five to seven basis points expansion during the quarter. Just turning to the other side of the balance sheet, I would imagine given your securities flows that the overall size is going to be dictated by what you're seeing on the deposit side. So on that note, what are you seeing on the deposit side? I think one of your competitors said that You know, there's some better deposit trends that flows have been improving. Wondering what you're seeing in your overall outlook here, given what you're seeing from your customers so far. Thanks.

You know, we're seeing more stability than the two prior years. We're seeing, you know, some more transactional activity, actually some growth in what we consider core transactional and non-interest-bearing activity. Obviously, you know, we have an appetite for government deposits, which we are there, and we continue to support as long as, you know, there are 100% collateralized to be. That is our appetite. If that would change, you know, we'll change our appetite. But for now, you know, we see stability. We see the market, you know, fairly stable on that front. When we compare market numbers to 2024, there was a contraction, slight contraction. We had a We have a slight increase. And we continue to monitor. It's really the critical strategy for all of us, but are definitely stable.

Got it. That's really helpful. And then just a small modeling question. On the expense side, I appreciate the outlook on a quarterly basis ahead. insurance and supervisory fees were about 2 million lower in linked quarter. Was there anything, any reversal there? Just wondering if 4Q is a better run rate going forward from here and any dynamics that may have impacted 1Q.

I'm thinking here, there was nothing. Are you looking versus last year or you're looking versus December?

versus December.

Remember that last year we had a special assessment from the FDIC. Let me see. I don't remember anything specific, Kelly. I would have to look for some more details to provide you.

um got it appreciate it less um just a point of clarification for me on on the buyback i think you had said you've done 28 million dollars in april um based on your commentary would you expect to um still continue to be active in in the shares here um opportunistic for the rest of the quarter or um I need to go back and look at the transcript. I thought you may have implied you might be out for the quarter. Just wanted to clarify that point.

Yeah, our goal for this quarter was $50 million, and we're going to complete that by the end of April. And, you know, we always keep the optionality. Right now the plan is to deploy that $100 million in the second half, But, you know, it's always a consideration if, you know, if a unique opportunity shows up on the market that we act. We have the flexibility, so. But the goal is the 50 million.

Got it. And last one, that 448 adjusted margin, that's on a GAAP basis, right? Not an FTE. I believe you said the interest recovery was four basis points.

That's right. It's on a GAAP basis, not a full taxable equivalent.

Awesome. Thank you so much.

Thank you. Thank you, Kelly.

Our next question comes from the line of Timur Breziler of Wells Fargo. Please go ahead.

Hi. Good afternoon. I want to first follow up on the deposit line of questioning. I think if I heard correctly, there was some chunkiness in deposit flows in 1Q. I'm just wondering, as you look at that portfolio, if there's anything that's expected to exit the bank here in the near term, and just talking to maybe more near-term deposit trends, can you just remind us what kind of the seasonal cadence is for First Bank and what the expectation is maybe over these next couple of quarters on the deposit side?

I mean, if you look, we had a couple of cases that were deposited at the deposits we got at the end of the year, meaning at the end of the year, meaning in the last quarter of the year. One Florida customer, one Puerto Rico customer, that they mentioned that there were, you know, the monies were earmarked for some specific projects, and they would have been moved before it was going to be at the end of last year. It did not happen. It happened early this year. So that was a chunky component that moved out. But there's nothing specifically on what we have in the portfolio today other than there's always going to be some kind of variability on the deposits on the public fund side because they have large components that come in and out. But on the commercial and retail side, we don't have any, you know, like what we knew from what we had at the end of the year on those two specific customers.

Okay. And then to that, maybe just going back to the Florida conversation, you had talked about the $12.6 million hospitality credit. It looks like there was another one that was called out that migrated to classified. Can you just maybe talk through what that loan was and You know, more recently there's some news on just the Florida condo market and how much more expensive that's become. Can you just remind us of what exposure, if any, you have to the condo market in Florida?

To the condo market? Well, this one in hospitality was not condo. I'm trying to remember which one was moved to classified because that was the one that was moved. There's nothing... significant that I remember. Let me take a look at here. Other than this.

It's only that one case of Florida.

But condo market, in terms of exposures, we don't have any in Florida.

We don't have any on the construction. We do have some in the mortgage portfolio, but it's very small. Thank you. Thank you.

We currently have no further questions, so I will hand back to Ramon Rodriguez for closing remarks.

Thanks to everyone for participating in today's call. We will be attending Wells Fargo Financial Services Conference in Chicago on May 13th. We look forward to seeing a number of you at this event, and we greatly appreciate your continued support. Have a great day. Thank you.

This concludes today's call. Thank you for joining. You may now disconnect your lines.