OFG Bancorp (NYSE:OFG) Q2 2023 Earnings Call Transcript

And it goes from basic stuff like asking for the balance of a loan to cancel it to — and you can get that digitally and as also opening a deposit account digitally. And those are things that help us to kind of show some differentiation. And we keep on working on that. We have formidable competitors and they are — they have deeper pockets than us. And at the end of the day, each one continues to focus on their own strategies. But we’re really happy with the way we’re working ours, and for the size of our bank, we’re very happy with the results that we’ve come up with.

Timur Braziler : Great. Thanks for that update.

Jose Rafael Fernandez: Yeah. No problem. Thank you for your questions.

Operator: Thank you. Our next question will come from Bernard Horn with Polaris Capital Management. Your line is open.

Bernard Horn : Yes. Good morning. Actually, my first question was just asked and answered, so thank you. But the second question is on the auto market. The U.S. has seen lower used car prices. I’m wondering if you could give us any color on what’s happening in Puerto Rico and whether you see that as a potential risk on residual values for any part of your auto loan book.

Jose Rafael Fernandez: Yeah. We have yet to see that reduction on the used cars values, but it’s certainly a risk into the future, right, in terms of the losses. One thing that we are focused on is on the models and we’re focused on what type of cars we kind of lend to. And it’s really more on the middle-size type of kind of the middle market, the Japanese and the Korean cars, most of it. We really don’t play on the higher-end autos. So that serves a little bit as a hedge to your point, so that’s kind of what we’re seeing. We’re seeing better resale values on some car manufacturing, like I don’t want to give an advertisement some of those guys, but we’re seeing better values on the Toyotas than in others, and we kind of work it that way.

Bernard Horn : Thanks very much. I’m clear.

Jose Rafael Fernandez: Yeah. Thank you.

Operator: Thank you. We have no further questions in the queue, so I would like to turn the call back over to Jose for any additional or closing remarks.

Jose Rafael Fernandez: Thank you, operator, and thanks again to all for joining us in this call. And thanks to all our team members for a great job. Looking forward to the next call. Have a great day.

Operator: Ladies and gentlemen, this concludes today’s conference call. We appreciate your participation. You may disconnect at any time.