Core Insights - The article discusses the recent increase in market volatility due to concerns about a potential U.S. recession, leading to a sell-off of high-risk investments [1] - The author emphasizes a focus on income-oriented investments, particularly dividend-paying stocks and funds, to support retirement income [1] Investment Strategy - The investment strategy centers around seeking high-yield income through various asset classes such as Business Development Companies (BDCs), Real Estate Investment Trusts (REITs), Closed-End Funds (CEFs), and Exchange-Traded Funds (ETFs) [1] - The author aims to enhance retirement income beyond traditional sources like pensions and Social Security [1] Market Psychology - The article highlights the importance of understanding market psychology, which is viewed as both fascinating and complex [1] - The author reflects on personal investment experiences, particularly during the Great Recession, which shaped a commitment to smarter long-term investment decisions [1]

Group 1 - Airbus receives positive analyst attention with Barclays lowering its price target to 185 euros while maintaining an "overweight" rating, and Kepler Cheuvreux upgrading it to "buy" with a 170-euro price target [1] - Airbus stock has declined about 8% over the past month due to macroeconomic recession concerns but has rebounded by approximately 10% in the last three weeks [2] - Boeing has received an upgrade to "outperform" from Bernstein SocGen, indicating a potential recovery as it addresses issues with its 737 MAX program and plans to increase production [3] Group 2 - Airbus reported a profit of $4.4 billion last year, contrasting with Boeing's loss of $11.5 billion, and is projected to grow earnings to $5.8 billion this year, while Boeing may struggle to earn anything [4] - By 2026, Airbus profits could reach $7.3 billion, nearly double Boeing's expected earnings of $4 billion, highlighting Airbus's stronger operational performance [4] - Despite Airbus trading at 26 times earnings, it is considered a stronger investment compared to Boeing, raising questions about why Airbus is not receiving similar upgrades [4]

Financial Data and Key Metrics Changes - Net interest income increased by $15 million, and net interest margin expanded by five basis points to 3.4%, primarily due to lower deposit costs [10][18] - Deposit balances grew by $935 million, with both banks contributing to the increase [11][20] - Tangible book value per share increased by nearly $4 to approximately $72, driven by quarterly net income and lower unrealized losses in the investment portfolio [12][30] - Total operating expenses were $471 million, an increase of $3 million compared to the previous quarter [24] Business Line Data and Key Metrics Changes - Loan balances increased by $146 million, primarily driven by the Commercial and Construction segments in Popular Bank [10][19] - Mortgage loan balances at Banco Popular increased by $136 million, driven primarily by home purchase activity [15] - Non-interest income was $152 million, a decrease of $13 million compared to the previous quarter [22] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico was 5.5%, remaining around all-time lows [14] - Combined credit and debit card sales for Banco Popular customers increased by approximately 6% compared to the first quarter of 2024 [15] - Passenger traffic at the San Juan International Airport increased by 11% during the quarter [16] Company Strategy and Development Direction - The company aims to continue its transformation efforts, focusing on strengthening its market-leading omnichannel experience and enhancing payment capabilities [71] - The ongoing disbursement of federal disaster recovery funds is expected to support economic activity in Puerto Rico for several years [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged recent market volatility due to tariff uncertainty but expressed confidence in the company's strong balance sheet and diversified business mix [13] - The company expects net interest income to increase by 7% to 9% this year, anticipating further net interest margin expansion [29] - Credit quality metrics improved during the first quarter, with lower early delinquencies and net charge-offs [32] Other Important Information - The company repurchased $122 million in shares at an average price of approximately $96 per share during the quarter [11][30] - The effective tax rate in the first quarter was 20%, with expectations for the year to be in the range of 19% to 21% [25] Q&A Session Summary Question: What are the implications of macro uncertainty and tariffs on investment in Puerto Rico? - Management noted that while the power grid is a concern, many industries, especially pharmaceuticals, are resilient and have their own power solutions [51][53] Question: Can you provide an update on deposit flows and seasonal growth? - Management indicated that deposit balances are about 35% higher on average compared to pre-pandemic levels, with positive momentum expected to continue [58][61] Question: What is the outlook for loan growth and potential payoffs? - Management acknowledged that while there is a positive outlook for loan growth, elevated payoffs and client uncertainty may temper growth expectations [120][121] Question: How does the company plan to achieve a sustainable 14% return on tangible common equity? - Management emphasized the need for execution across various areas, including deposit growth, expense control, and strategic decisions [136] Question: Will total fee income rebound after the recent decrease? - Management expects total fee income to increase, with guidance set between $155 million to $160 million per quarter for the year [144]