First BanCorp. (NYSE:FBP) Q4 2022 Earnings Call Transcript

And we continue to adding functionality to these products, as we call it is an omni channel strategy, the branch is important, the call center is important, and that is the channel is very important. So we continue to invest in all channels to optimize and improve the level of services that we can provide to our clients.

Brett Rabatin: Okay, that’s helpful. Thanks for all the color.

Operator: Thank you for your question. We now have a follow-up question from the line of Kelly Motta with KBW. You may proceed.

Kelly Motta: Hi, my question was asked and answered. So I’m stepping back. Thank you.

Aurelio Aleman: Thank you.

Operator: Thank you. We now have a follow up question from the line of Timur Braziler with Wells Fargo, you may proceed.

Timur Braziler : Hi, thanks for the follow-up. Again, on the security book, it seems like for the last couple of quarters now, the average balances have been pretty meaningfully higher than the period end balances. I’m just wondering what’s driving that dynamic mid quarter.

Orlando Berges: Well, you have to be careful because of valuation. The reality is that the balances have been coming down. But obviously the OCI valuation has changed. And for example, if you look at balances this quarter, they came down by over 140 something million, but it went up by about 60 million of the valuation. The other component that you have in there is that as we draw on Federal Home Loan Bank advances, we are required to invest in Federal Home Loan Bank stock. That’s part of the requirements. So that was about $40 million in the quarter. So if you segregate that, in reality that portfolio was down 140 something million during the quarter.

Timur Braziler : Got it. Thank you for the color. Make sense.

Operator: Thank you for your question. There are currently no further questions waiting at this time. . There are no further questions. So I’ll now pass the line back to Ramon Rodriguez for closing remarks.

Ramon Rodriguez: Thanks to everyone for participating in today’s call. We will be attending Bank of America’s financial services conference in New York on February 14, and KBW’s conference in Boca on February 16. We look forward to seeing a number of you at these events and we greatly appreciate your continued support. At this point, we will end the call. Thank you.

Operator: That concludes the conference call. Thank you for your participation, you may now disconnect your lines.