Good morning. Thank you for joining OFG Bancorp's conference call. My name is Nikki and I will be your operator today. Our speakers are Jose Rafael Fernandez, Chief Executive Officer and Chairman of the Board of Directors, Maritza Arizmendi, Chief Financial Officer, and Cesar Ortiz, Chief Risk Officer. A presentation accompanies today's remarks. It can be found on the homepage of the OFG website under the 4th Quarter 2025 section. This call may feature certain forward-looking statements about management's goals, plans, and expectations. These statements are subject to risks and uncertainties outlined in the Risk Sectors section of OFG's SEC filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Instructions will be given at that time. I would now like to turn the call over to Mr. Fernandez.

Good morning and thank you for joining us. We are pleased to report our fourth quarter and 2025 results. Let's go to page three of the presentation to review the fourth quarter. Earnings per share diluted were up 17% year-over-year on 2% growth in total core revenues. This was driven by disciplined core operations and a favorable tax benefit. Asset quality and credit metrics were sound and well-controlled throughout the quarter. During the quarter and year, in line with our strategies, we saw increased commercial loans and broad acceptance of our flagship mass market Libre account and mass affluent elite deposit account. performance and credit metrics remain strong capital continued to grow and we repurchase $40 million of common shares in the fourth quarter Maritza will go into more detail on these numbers shortly please turn to page four we accomplished many of our strategic and financial goals last year earnings per share increased 8.3 percent on a 2.8 percent increase in total core revenues Total assets grew 8.4% to a record $12.5 billion. Core deposits grew 5% to $9.9 billion. Loans grew 5.3% to $8.2 billion, with commercial loans growing to $3.5 billion, now representing 43% of our loan book. In addition, new loan production increased 11.5% to $2.6 billion. dollars we repurchased close to 92 million dollars of shares and increased our dividend 20 percent business activity is robust in puerto rico the outlook for economic growth is positive and businesses and the consumer are resilient having said all that one of our biggest strategic and financial accomplishments of 2025 was the progress we made with our digital first strategy please turn to page five over the last two years we have clearly emerged as a leader in banking innovation in Puerto Rico. Our digital focus gives us a differentiated approach and provides customers with a unique enhanced experience. In 2024, we introduced the Libre account for the mass market and the Elite account for the mass affluent market. Both Libre and Elite have been successful in attracting deposits from new and existing customers. In addition, we enhanced our Oriental Biz account suite, making treasury management easier and more secure for small businesses, driving a 5% increase in commercial customers during 2025. We have further enhanced the customer experience through technology. In 2025, we launched our omni-channel platform. This provides customers with a seamless banking experience anywhere they choose to interact, transforming the branch into a place for building customer relationships. With our intelligent banking model, customers now receive tailor insights based on cash flows and payment habits, helping them access and monitor their finances with real-time, value-added tools to improve their financial life from their mobile phones. Please turn to page six. All this has directly contributed to our increased market share in retail deposits and a 4% growth in retail customers. To put this into perspective, we have provided data showing our progress over the last two years. As you can see, OFG is well positioned for continued success in the coming years. Now, here's Maritza to go over the financials in more detail.

Thank you, Jose. Let's turn to page 7 to review our financial highlights. All comparisons are to the third quarter unless otherwise noted. Core revenues totaled $185 million, an increase of $1.4 million. Total interest income was $197 million, a decrease of $3 million. This reflected higher average balances of loans and cash at lower average yields. This was partially offset by higher average balances of investment securities at slightly higher yields. Total interest expense was $44 million. A decrease of one bid was $1 million. This reflected higher average balances of deposits and borrowings at lower average rates. Total banking and financial service revenues were $33 million, an increase of $3.4 million. This mainly reflected increased wealth management revenues due to $2.3 million in annual insurance commission recognition. The other income category was a loss of $1.1 million compared to a profit of $2.2 million in the third quarter. The change reflected $6.1 million for accelerated amortization of technology-related assets. gains of $3.9 million on the sale of non-performing loans and $1.1 million on sales of real estate. Please note that the third quarter benefited from gains from OFG Ventures' investment in fintech funds. Looking at non-interest expenses, they totaled $105 million, up $8.5 million from the third quarter. This reflected $3.3 million in professional services fees related to performance-based advisory costs. This was part of the cost savings renegotiations of a technology services contract. $2.5 million of business licensing and $1 million related to the previously mentioned accelerated amortization of technology-related assets. Compared to the third quarter, there were $1.7 million in increased costs related to an additional accumulation of performance bonuses, expanded marketing activities, and the sales of foreclosed assets. For 2026, we currently expect that total non-interest expense to be between $380 million to $385 Income tax was a benefit of $8.5 million due to two discrete items, $12.9 million from the expiration of a tax agreement from the 2019 acquisition of Scotia and Puerto Rico and USBI operations, and $3.9 million from a released evaluation allowance of deferred tax assets at the holding company level. Excluding discrete benefits, the estimated tax rate for 2025 was 21.8%. Looking at some other metrics, tangible book value was $29.96 per share. Efficiency ratio was 56.7%. return on average assets was 1.81%, and return on average tangible common equity was 17.2%. Now let's turn to page eight to review our operational highlights. Average loan balances were $8 billion, up slightly from the third quarter. This reflected increases in Puerto Rico commercial loans, partially upset by lower balances in auto and residential mortgage. Lawn yield was 7.73%, down 70 basis points. This was mainly due to the effect on variable rate commercial loans from the Fed's 50 basis rate cost in the fourth quarter. New loan production was $606 million compared to $624 million. This reflected decreases in Puerto Rico and U.S. commercial and consumer lending, partially upset by increases in auto and residential mortgage lending. Average core deposit balances were $9.9 billion, up almost 1% from the third quarter. This reflected increase in retail, commercial, and government balances. By account size, each reflected increase in demand, time, and saving deposits. Core deposit cost was 1.42%, down five basis points. This was mainly due to lower cost of government deposits. Excluding public funds, cost of deposit was 102 basis points, compared to 103 basis points in the third quarter. Investment totaled $2.8 billion, down $96 million. This reflected principal paydowns and maturities, and it was partially offset by purchases of $25 million of mortgage-backed securities and residence and mortgage securitization of $21 million. Average borrowings and brokered deposits were $787 million, dollars compared to six seven hundred sixty nine million dollars in the third quarter the aggregate rate pay was four point zero three percent without eight basis points from the third quarter end of period balances were eight hundred ninety seven million dollars compared to seven forty six million dollars this reflected increased broker deposits for liquidity management End of zero cash at $1 billion was 41% higher, reflecting increased core and brokered deposits. Net interest margin was 5.12% within the range we had expected. Please turn to page 9 to review our credit quality and capital strength. Credit quality continues to be resilient. Provision for ferry losses was $31.9 million, up $4 million from the third quarter. This reflected $21 million for increased loan volume, $5.1 million for a specific reserve on a Puerto Rico telecommunications commercial loan, $2.4 million related to the U.S. macroeconomic and $1.7 million in charge-off from the sale of non-performing loans. Net charge-off totaled $27 million, up $6.7 million. Net charge-off included $4.8 million related to the sale of non-performing loans, of which $3.1 million had been previously reserved. Looking at other credit metrics, we observed the typical seasonal pattern of higher delinquency and non-performing levels during the year end period. Despite this, overall credit quality remains within expected ranges. Early delinquency rate was 2.8%, down from the third quarter and down year over year. Total delinquency rate was 4.18% up from the third quarter, but down year over year. The non-performing loan rate was 1.59% due to the move to non-accrual classification of the Puerto Rico telecommunication loan that I mentioned. On the capital side, our CETI-1 ratio was 13.97%, stockholders' equity totaled $1.4 billion, up $15 million, and the annual common equity ratio decreased 8 basis points to 10.47%. To summarize the year, loans and core deposits both grew about 5% in 2025. This year, we expect loans to continue to grow in low single digits. We also expect retail and commercial deposits to increase with LibrePlus, Elite, Oriental Biz, and our digital offerings driving customer growth. As for the Puerto Rico, as for the large Puerto Rico government deposit, $500 million moved this month to our wealth management business as an advisory account. The remaining $600 billion is staying as a variable rate core deposit. Net interest margin was 5.27% for 2025. Looking ahead, net interest margin should range between 4.95% to 5.05% in 2026. That That takes into account two more 25 basis point costs, the effect of the partial exit of the government deposits and the incremental cost of funding to replace it. Of cost of funding to replace it. Non-interest expense total $189 million in 2025. We currently expect them to be between $380 million dollars to 385 million dollars and steady reflecting the strong economic environment in Puerto Rico our effective tax rate for 2026 should be around 23% excluding any possible discrete items capital should continue to build enabling us to continue to return capital to shareholders through dividend and buyback shares on a regular basis now here's Jose thank you Maritza

please turn to page 10. The Puerto Rico economy continues to be steady with a sustainable long-term outlook. Liquidity is solid, businesses and consumers remain resilient, and unemployment is low. Public reconstruction funds and private investments are providing economic tailwinds. Manufacturing investments are continuing from multinational companies seeking unshoring solutions, particularly in the pharmaceutical and medical devices sectors. Having said that, we always have to closely monitor all the global microeconomic and political uncertainties these days and their political impact on Puerto Rico turning to OFG the success of our differentiated positioning has been evident over the last several years we will continue to focus on the client experience with enhanced product tailoring strategies our Libre Plus and elite accounts offer AI insights and tools not available elsewhere in Puerto Rico commercial loan and deposit account growth is benefiting from deeper relationships and services and credit and asset quality are sound and well controlled the technology investments we make and our continuous improvement culture are starting to produce tangible efficiencies all of these give us confidence in sustainable long-term growth across our core businesses As always, we could not have achieved these results without the hard work of our dedicated team members. We're very thankful to them and excited about our future. With this, we end our formal presentation. Operator, let's start the Q&A.

Thank you. And if you have a question at this time, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, press star 2. So, again, if you would like to ask a question, press star, send the number one on your telephone keypad. We'll take our first question from Kelly Mota of KBW, please go ahead, your line is open. Hey, good morning, thanks for the question.

Maybe to just kick it off with credit, just given that provisions were a bit elevated for the second quarter now, can you provide additional color into the larger Puerto Rico charge-offs this quarter as well as, you know, there was some move-in in MPLs with some sales. Can you provide more color as to, you know, what was done there and what migrated back

Hi, Kelly. This is Jose. I'll let Cesar take that question.

So the charge-offs that you're looking in the quarter are the result of a sale that we performed that released $17 million in non-performing loans during the quarter. And that released three years, charge-offs, et cetera, but the results at the end of the day was a gain of $3.9 million that we reported. Offset, of course, by the entry of a loan, telecommunications loan that was recorded as non-accrual and non-performing during this quarter. So that's basically the moment in non-performing during the quarter in commercial.

So when you look at it, it's $45 million on the communication loan minus the $17 million on the sale of the NPLs, and that's why you see the increase in NPLs in the quarter, particularly on the commercial. So it's only one loan and it's not something that is across the portfolio. We just see this as very idiosyncratic.

Yeah, and just to add, and I share a little bit on my prepared remarks, there was a charge of related to the sale of about $4.8 million, and a big portion of it was already reserved. It was about $3.1 million that was already reserved.

Got it. And then on loan growth, I mean, you've been talking about auto being more competitive in prior calls and such. In terms of your outlook for low single-digit loan growth ahead, can you provide additional color in terms of what's the driver of that, is the expectation that auto will be kind of more muted like the past two quarters?

Yeah, that's a great point. We see auto starting to stabilize at these levels. As again, in Puerto Rico, you also are starting to see a stabilization in the new car sales. so we we look at auto balances to be down in the year between two and three percent we also see commercial loans up five six percent during the year both Puerto Rico and US so with with that kind of a setup we see consumer going up a bit a mortgage also is trending down but less than in years past we see those single digits as a reasonable target for us for loan growth overall got it left

last question if I can just sneak it in is on your expenses 380 to 385 you know relative to your your operating is it's relatively flat year over year can you provide like your confidence in that and and the drivers of those increased efficiencies?

Well, yeah, thank you for your question, Kelly. The range reflects our continuous investment in technology and people, capabilities, talent to continue driving the digital first data we are deploying constantly in the bank. And we have a certain efficiencies, like this year we have, if you look at our full-time equivalent employees there are 30 less 30 people 660 altogether no so we continue to expect that number to go down but we need to continue reinvesting that's why we see expenses to continue to be flat this year but what we're thinking that by the end of the year we will start seeing some of that saving and and the 2027 and 2028 we see a savings to accelerate And we will see that more in a tangible way for 2027, 2028.

It's something that we've always kind of been very cognizant of. These investments in technology, they certainly have enhanced the customer experience in a significant way and it's providing us the ability to grow and differentiate ourselves. But it also has a very intentional effort to bring efficiencies to the bank. and this is the first year where we are seeing in 2020 2026 we're seeing the the expense range flattening it out and it has everything to do with a little bit of what we've done in the past but it's being more importantly on the culture of a continuous improvement and how do we look at processes to simplify them, make them more agile, and really try to eliminate interactions and processes that are very manual and with very little value add, try to convert them into technologies and use the blockchain and all the technology, all the robotics and all. We're starting to use all those things, and we feel more confident in our expense ranges in 26 for sure and we will continue to work hard to bring additional expense reductions in 27 and 28, Maritza mentioned. Thank you so much, I'll step back, appreciate the caller. Yep, thank you Kelly. Thank you. Our next question comes

from Aaron Suganovic of Truist. Please go ahead, your line is open. Good morning,

Jose, I was wondering if you could talk a little bit about what you're viewing is the best strategic initiatives or your focus on strategic initiatives for 2026, maybe relative to 2025, it seems like you're making a good push on the deposit side and, of course, always investing in technology.

Yeah, thank you, Aaron. So we will continue to enhance our retail efforts. It's not something that we're going to decelerate, So we will continue to invest in enhancing the customer experience, adding additional functionality to our omni-channel platform and drive additional benefits for our customers on the retail side. And you'll see some of those playing out throughout 2026. But in 2026, our focus is going to be much more on commercial. And we see a good opportunity. As you saw, we grew 5% our commercial customers last year, and I think we have an opportunity here to continue to translate the same strategies that we have done in terms of technology and digital, translate it as it is appropriate on the commercial side. And it's going to be a journey. It's going to be three years or so for us to be able to deploy all this and all that stuff, but that's where we're going to be putting more effort. We see an opportunity for us to keep growing our commercial business, and we think the Puerto Rican economy is supporting that, and us as a bank feel compelled to invest in small and mid-sized clients and help them grow, because that's critical for the growth of our economy here in Puerto Rico. We really focus on the Puerto Rico market, and we feel that we have a great opportunity

And on capital return, I think Marita said that she expects capital to build, said to return capital to shareholders. I was trying to balance the two. What's the expectations for capital return for 2026?

I think the fourth quarter capital actions that we took in terms of the buyback, I think it's going to become more, given our valuation, right, given the way the market is valuing our stock and given the multiples that they're assigning to us versus our peers we feel the best use of our capital after loan growth and balance sheet rules is buying back shares and so we will we will continue to be very intentional there we certainly will also look at the dividend But, again, we see some differentiation in the valuation there, and we feel that it's the best way to reward our shareholders by buying back shares.

And then just lastly, so clarification on your answer about expenses, the expense reductions in 27 and 28, is that more so thinking about the efficiencies that you're going to get from the actions you're making this year? and I guess I'm just thinking like is it is it actually going to go down or are you going to yeah so we're going down and somebody on top of that oh I don't

want to put the car in front of the horses right but I tell you we're working very hard to to bring additional deficiencies during 2010 26 that will play out in 27 and 28 we will give you more details as we execute on those initiatives but as Marisa mentioned we are looking at a FTEs and and and where where can we redeploy our people talent to more customer facing and and value add building relationships type of talent a versus having FTEs sitting behind a desk in operations and servicings and pushing papers and and dealing with Excel spreadsheets to manage different functions. And I can give you an example. We have been able to optimize the entire fraud management processes just simply by using robotics and being able to eliminate several SDEs that were basically managing fraud on a daily basis. And those are some of the small examples that we can provide. And I'm sure, you know, many banks in the U.S. and in Puerto Rico are also doing the We're trying hard to bring down expenses, not without investing in technology, investing in our people, and continuing to do the right thing for the long-term of our franchise, which is critical for us, it's important. Yeah. You're welcome.

Thank you. We will move next with Brett Rabatin of Hovdi Group. Please go ahead. Your line is open.

Hey, good morning, everyone. Wanted to start on the margin and just on the fourth quarter, wanted to get a little better color on the link quarter change in the loan yields, which had been fairly stable up until this quarter. So just the 17 basis point link quarter change was just hoping to figure out how much of that was the large non-accrual loan and any other comments on the loan portfolio yield change link quarter.

Thank you, Brett, for your question and, you know, remember that we are asset sensitive and we continue to be asset sensitive and this quarter, as I mentioned in my remarks, the loan yield went down basically because of first 50 basis points cost during the quarter, but also we have the full effect of the September 25 basis cost. so that's one of the main drivers for the reduction in the name and we were able to compensate that to our a government deposit a variable rate because it also get a reduction there but it reflects our as a sensitive

position I think I think also here you're also on the long side you're starting to see since we have moved our originations to higher significantly higher quality, we are also seeing a slight decrease in the yield coming in on the auto lending side. That's just a testament to the credit quality that we're bringing in, better credit quality.

That's helpful. Just thinking about the margin guidance for 26, it was nice to see that the funding costs, which were up a little bit in 3Q, moved back down in the fourth quarter. Is the margin guidance for 26, you know, does that reflect some additional leverage to lower funding costs from here? You know, one of the key things that's always been a question is Puerto Rico has lower cost upon us. In the mainland, you know, how much can those go down as rates go down given they're already fairly competitively priced?

Yeah. The reality is when you look forward for this year, 2026, we will have a change in our funding makes because the $50 million exit, $500 million exiting the bank, now moving to the wealth management business. And we will replace that with wholesale funding, and that carries a higher cost of about 25 basis points to 40 basis points, depends on the term of that wholesale funding. But the reality is that we will have that change. and that's part of the impact of the NIM. But when you look at 2026, 2026 we have the full effect of the 75 basis point cut that happened in the last part of 2025. You will have all that full effect plus we are also foreseeing two additional costs during 2025. And we are sensitive, we have more assets repricing than the deposit side, and that's why we are giving that indicative in the margin, okay? That guidance. And when you look at 2024 based to 2025, it reflects that. We had a margin in 2024 of 5.43 percent. This year it was 5.27. It was about 16 basis point reduction, and it's related to the the rate cost of 100 basis point late 2024 and this year 75 basis point end of 2025.

Brett and I and I could also add and as you saw this quarter and you saw throughout 2025 core deposits excluding government went up on the retail side and and that is also something that We expect more core funding that we bring in is going to be cheaper than wholesale funding. So our margin guidance is the margin guidance, and that's how we see it, but we're going to be working hard to beat that margin guidance as you guys kind of – we'll update everybody on the first quarter when we talk.

Okay. If I could ask one last one, the other thing I was hoping to figure out was, if you look at slide 20 as the auto portfolio net charge off rate, it was a little bit higher in the fourth quarter as were NPLs and just wanted to see if, you know, the higher level in 4Q, if that seems to be an anomaly or a year in cleanup of the portfolio or what have you, you know, versus something maybe you're seeing with the book.

Yeah, Cesar, I can take that one.

This is, like Marisa mentioned before, it's typical that the seasonality of the portfolio starts very low in terms of delinquencies and non-performing loans in the first quarter of the year, and then it takes up until fourth quarter, and at the fourth quarter is at the upper level of that equation. But next chart jobs, if you compare this next chart job, you usually compare it to last year, same period last year. and what you saw what you see there is 1.63 last year but that that was benefited but because we sold charge of portfolio without that sale that number would have been 1.86 percent and we are right now 1.81 percent this quarter so it is a positive sign you know but the again the seasonality of the portfolio will result in an increase delinquency in this quarter but we expect that benefits in the next quarter you're gonna see a positive effect on all those

metrics yes okay I just end of the year seasonality and we'll keep on keep you guys updated in the first part of the year and see if that turns around again but that's what we've seen in the last three years we'll we'll be watching closely in the first part of this year to see if that replicates again okay great uh sorry interrupting thanks for all the color yeah thank you for your questions thank you our next question

comes from timor brazler with wills fargo please go ahead your line is open hi timor hi good morning

Maybe bigger picture. Hi, can you hear me?

We can hear Timur.

Here, one second. I don't know, can you hear me? Can you hear me now?

Timur, we are able to hear you. One moment, please. And for all the interruption speakers, are you able to hear us?

Is this better? Now I can hear you. Now I can hear you. Okay, perfect. Sorry about that. But maybe just a bigger picture on credit, you know, if we look at kind of 1% full-year charge-off rate, is that kind of a good proxy for where we are in this, you know, post-pandemic cycle? And then if you look at the allowance ratio, you know, year over year, you added a little bit over $25 million to allowance. You built that to almost 2.46% of loans. I guess how do we think about the allowance bill in 2025, what that might portend for charge-off activity in 2026, and then what does a stabilized level of credit activity look like going forward here?

Well, I think that the 1% range that you're mentioning is within what we can expect here in HRT. If we look at 2025 without any specifics of the sales or any particular case, that should be a good run rate. When we think about how we build the reserve, please be mindful that there's some specific reserve at the end of this year related to the telecommunication loan so that's a very very isolated case very specific so setting that aside I think that we will continue you know monitoring credit and building this stuff as needed but one percent a net charge of delinquency remaining at the level that that we're managing this year maybe we won't be reserved at the same level because of the specifics that we have this quarter, but definitely it could be about flat from what we have right now, excluding any specific case that we have managed during the year.

Got it. And then the telecom credit this quarter, was there anything incremental that happened in 4Q that drove the activity, or is this just really recalibration of maybe what the other banks were talking about in the third quarter, and you guys kind of catching up to that same level of reserving in the fourth quarter.

No, it's basically we received financials every period. So last year, you know, they didn't, you know, warranted a right away, you know, no accrual status, but this period, it repeated the deterioration of the, on the financials, so basically we decided, yeah, this is a deterioration that merits the no accrual status.

Yeah, and at the end, this is a loan that continues to pay, you know, So what we're doing is being prudent and given the specific situation of the company that comes from the outcome of a merger, we decided to put it in our door.

Got it. That's great, caller. And then just last for me, you guys have had really good success rolling out some of these retail deposit products during the course of 2025 that have been, you know, differentiated from what the island typically sees. I'm just wondering, from a competitive standpoint, what's been the reaction? And as you think about, you know, Puerto Rico ex-public fund deposits during 2026, during 2027, does it feel like the competitive nature is shifting now? And do you still think you can maybe get those lower with these rate cuts? Or is the competitive nature such that even with these rate cuts, the costs of the core of Puerto Rican deposits are likely continuing to rise here?

Yeah, I think the competitive landscape is slowly but surely intensifying. I think each institution has its own drivers, right? And some of the drivers that come in from the reinvestment in the investment portfolio at a higher yield gives flexibility to be more competitive and more aggressive on some of the CD offerings and stuff like that. So I'm not saying that we are going out crazy here in the market in Puerto Rico in terms of deposits, but it's slightly and slowly but surely getting more intense in terms of deposit competition. Also be aware that we have credit unions, US credit unions that are and have been for the last three or four years very aggressive. they remain so and and that is also you know part of the equation here in Puerto Rico this tax expense credit unions they have another lever there that allows them to be more aggressive on the deposit side so that's that our strategy is to target the math and the math affluent we have come up with the with the with the products we have come up with the differentiation in terms of our platforms in technology and the way we do the business that that's the formula that we're using and it's paying off I'm sure our friendly and and larger competitors are are also doing their thing and I'm sure they're going to be very very competitive throughout so it's just now blocking and tackling struggling and trying to achieve organic growth on the loan side and on the deposit side. And it's exciting for us at this juncture how we are well positioned to achieve the Thanks, Ricardo. Appreciate it.

We'll move next. We have Manuel Navas with Viper Sundler. Please go ahead. Your line is open.

I just wanted to follow up on that last question. And has there been any price response from other players on the island from your new Libra and Elite products? And where are those having the most success? Yeah, happy to hear a little bit more on those two products as well.

So there's no need to have a price response because we're not paying high yields. So I don't know where the idea that we're kind of bringing in higher yields or so. So it really, it's actually Libre account is a non-interest bearing account. So I don't know where that comes from. But Elite, it does pay 1.28% average cost of funds on the balances that we have. And that is the way we approach the math affluent. And it's paying off and it's doing well. Because it's not about the rate only. It's about what we offer as a product and what is the value proposition that we bring into the equation here. And it's not only a rate, it's the accessibility, it's the everyday, every time, anywhere, wherever you are, and the fast, the agile way we service our customers in any interaction that they have with us that brings us the ability to attract relationships across the markets that we operate which is here in Puerto Rico so reaction from the competition zero there's no there's no increasing in competition in terms of rates here what we're seeing is more on a targeted basis CV rates and that's that's what I have I mentioned earlier Manuel I appreciate that and it is

pretty early innings but you're seeing that deeper relationship are you seeing younger clientele in these accounts as well given they're a little bit more

digital forward? Actually that's a good point, Manuel. Even Puerto Rico's demographics, what we're seeing is that, I'll share this information, 75% of the accounts that we're opening on the Libre account are new customers. 40% of those are 29 years or younger and to us that is because it allows us to build a long-term relationship and build a long-term franchise with them so so it's exciting times for us that's that's kind of the crux of the matter you actually pointed out one of the great things that is going on in the last couple years I appreciate I appreciate

that a extra color going back to the NIM for a moment as you're targeting a little different auto client and commercial loans are adjusting. What are kind of some of your new yields coming out especially in those two categories

in auto and commercial? So commercial remember our commercial originations are 50% fixed 50% borrow and the rates are depending on the type and the size of the commercial loan but it ranges between let's say 275 to 350 basis points above the term that we're lending at so that's kind of I'm giving you a range and you can get on the lower end when it's larger a larger account a larger loan or repeat small business or a larger commercial so that's on the commercial side on the auto side I think the yields are in the eight handle eight and change it is coming from the higher eight levels it's now stabilizing around 830 or 840 or something like that between 830 and 850 and it's all about you know certainly competition but also us originating close to 90% of our of our loans in prime and super prime levels okay that's

That's really helpful. And then I guess just my last question is, is there a level – you know, I appreciate the commentary around the buyback. The pace was a little accelerated in the fourth quarter. Do you think we stay at this fourth quarter pace? And is there any price sensitivity or where is there some price sensitivity on repurchases?

I'll repeat what I said earlier, Manuel, because we don't have a price target. we we do we do see the market being kind of penalizing us a bit on in terms of of the multiple that they're the pricing of that so I think we kind of look at the market in general we see where we can deploy our capital in terms of loan growth this year we're probably going to grow single digits as I said earlier low single digits because of what I mentioned earlier on the auto so we might have a more ability to deploy capital like through buybacks throughout the year but we don't have a set a number or a set stock price to go after it's just part of our natural ongoing capital management strategies appreciate the commentary thank you yep thank you for your questions and welcome to the

calls thank you yeah thank you and once again if you would like to ask a question please press star send the number one on your telephone keypad we'll pause a moment to allow any further questions to queue and at this time if there are no further questions I will now turn the call back over to management

for closing remarks thank you operator and thanks again to all our team members Thanks to all our shareholders who have listened in, looking forward to our next call. Have a great day.

Thank you. This does conclude today's program. Thank you for your participation, and you may disconnect at any time.