Financial Data and Key Metrics Changes - Earnings per share diluted was reported at $1, driven by strong operating execution and loan and deposit growth [5] - Core revenues totaled $178 million, with total interest income at $189 million, a decline of $941,000 due to two fewer business days [11][12] - Total interest expense decreased to $40 million, down $874,000, reflecting the same two fewer business days [12] - Non-interest expense totaled $93.5 million, down $6.3 million, aligning with guidance for the quarter [14][15] - Efficiency ratio was 52.2%, return on average assets was 1.56%, and return on tangible common equity was 15.28% [16] Business Line Data and Key Metrics Changes - Average loan balances were $7.8 billion, up close to 1%, with end-of-period loans held for investment totaling $7.9 billion, up 4.2% year-over-year [17][18] - New loan origination was $559 million, down 9.3% from the fourth quarter but up 4.2% year-over-year [19] - Average core deposits were $9.6 billion, up close to 1%, with end-of-period balances increasing by $308 million or 3.3% quarter-over-quarter [20] Market Data and Key Metrics Changes - Total assets were $11.7 billion, up 5% from a year ago and 2% from the fourth quarter [17] - Cash increased by 20% to $710.6 million, while investments totaled $2.8 billion, up 2% [23] - Net interest margin was reported at 5.42%, slightly higher than the previous quarter [24] Company Strategy and Development Direction - The company continues to invest in technology through a digital-first strategy, enhancing customer relations and operational efficiency [6][34] - New digital tools were launched, including an omni-channel online mobile app and smart banking insights, reinforcing the company's innovative position in the Puerto Rican banking market [8][9] - The management emphasized the importance of adapting to macroeconomic and geopolitical events while maintaining a strong balance sheet [32][34] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economy in Puerto Rico is growing, it is experiencing higher volatility due to external factors [32] - The Digital First strategy is proving effective, with expectations for continued investment in customer innovations [34] - The management expressed confidence in consumer credit trends and the overall stability of credit quality [34][30] Other Important Information - The company bought back $23.4 million of shares and raised its dividend by 20% during the quarter [16] - The CET1 ratio was reported at 14.27%, with stockholders' equity totaling $1.3 billion, up about $41 million [28] Q&A Session Summary Question: Digital channel deposit account openings - Management confirmed that approximately 25%-26% of checking accounts and certificates of deposits are opened through the digital channel, with increasing trends observed [41] Question: Deposit growth and seasonality - Management acknowledged seasonal components affecting deposits in the first quarter, including tax refunds and the Child Tax Credit, and expressed optimism for continued deposit growth [43] Question: Consumer charge-offs normalization - The Chief Risk Officer indicated expectations for stabilization in consumer charge-offs, particularly in the auto portfolio, with a positive trend noted [52] Question: Bond book duration and cash flow - The duration of the bond book is around five to six years, with repayments of $84 million noted for the quarter [60] Question: Fee income outlook - Management expects banking fees to remain in the range of $29 million to $30 million for the year, with higher activity in debit card transactions noted [78] Question: Competitive environment in Puerto Rico - Management described the competitive landscape as relentless, with a focus on deepening customer relationships and growing deposits [92]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1, driven by strong operating execution and loan and deposit growth [4] - Core revenues totaled $178 million, with total interest income at $189 million, reflecting a decline of $941,941 due to two fewer business days [9] - Total interest expense decreased to $40 million, down $874,000, primarily due to the same two fewer business days [10] - The efficiency ratio was 52.42%, return on average assets was 1.56%, and return on tangible common equity was 15.28% [12] Business Line Data and Key Metrics Changes - Average loan balances were $7.8 billion, up nearly 1%, with loans held for investment totaling $7.9 billion, up 44.2% year-over-year [13] - New loan origination was $559 million, down 9.3% from the fourth quarter but up 4.2% year-over-year [14] - Average core deposits were $9.6 billion, up nearly 1%, with end-of-period balances increasing by $308 million or 3.3% quarter-over-quarter [15] Market Data and Key Metrics Changes - The company experienced a 12% year-over-year growth in digital enrollment and a 21% increase in digital loan payments [6] - The net charge-off rate was 1.05%, up 23 basis points sequentially, with consumer net charge-off ratio increasing to 4.34% [19][20] Company Strategy and Development Direction - The company continues to invest in technology through a digital-first strategy, enhancing customer relationships and operational efficiency [5][25] - The management emphasized the importance of adapting to the economic environment in Puerto Rico, with a focus on consumer credit trends and maintaining a strong balance sheet [24][25] Management's Comments on Operating Environment and Future Outlook - The management noted that while the business environment in Puerto Rico is positive, there are concerns about macroeconomic and geopolitical volatility impacting the economy [24] - The company is committed to methodically executing its business plan and supporting clients and communities [25] Other Important Information - The company bought back $23.4 million of shares and raised its dividend by 20% during the quarter [12] - The CET1 ratio was 14.27%, indicating a strong capital position [21] Q&A Session Summary Question: Digital channel deposit account openings - The company confirmed that approximately 25% to 26% of checking accounts and certificates of deposits are opened through digital channels [32] Question: Deposit growth and seasonality - The management acknowledged that the first quarter has seasonal components affecting deposits, including tax refunds [34] Question: Consumer charge-offs normalization - The Chief Risk Officer indicated expectations for stabilization in consumer charge-offs, particularly in the auto portfolio [42] Question: Bond book duration and cash flow - The duration of the bond book is around five to six years, with repayments of $84 million this quarter [49] Question: Margin trajectory - The management expects the net interest margin to remain in the range of 5.3% to 5.4% for the year, depending on funding side dynamics [50] Question: Competitive environment in Puerto Rico - The management noted that competition remains high, but they are pleased with core performance in deposits [79] Question: Onshoring opportunities in pharmaceuticals - The management expressed optimism about potential onshoring opportunities for pharmaceuticals but noted it is too early to see significant movement [82]