OFG Bancorp (NYSE:OFG) Q1 2023 Earnings Conference Call April 20, 2023 10:00 AM ET
Company Participants
José Rafael Fernández - Vice Chair, Board and CEO
Maritza Arizmendi - Chief Financial Officer
Conference Call Participants
Timur Braziler - Wells Fargo
Brett Rabatin - Hovde Group
Alex Twerdahl - Piper Sandler
Kelly Motta - KBW
Operator
Please standby. Your program is about to begin. [Operator Instructions] Good morning. Thank you for joining OFG Bancorp’s Conference Call. My name is Melinda. I will be your operator today. Our speakers are José Rafael Fernández, Chief Executive Officer and Vice Chair of the Board of Directors; and Maritza Arizmendi, Chief Financial Officer.
A presentation accompanies today’s remarks. It can be found on our Investor Relations website on the home page in the What’s New box or on the Quarterly Results page.
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 Factors 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 background noise. After the speakers’ 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. Fernández.
José Rafael Fernández
Good morning and thank you for joining us. We are pleased to report our first quarter 2023 results. All our businesses performed well and contributed to another strong quarterly performance by OFG. The quarter’s results also reflect the strength of our franchise, supported by high levels of liquidity and capital. This places OFG in a strong position in today’s banking environment.
Now let’s turn to page three of our conference call presentation. Core revenues, net interest margin, credit quality, operating leverage and customer acquisition trends all remain at high levels or improved compared to the fourth quarter. Deposit balances were stable with only a 10% cumulative beta.
We continue to execute our digital-first strategy, placing more banking kiosks and interactive teller machines in the field. Client digital adoption increased 10% year-over-year. Our key performance metrics also continued at strong levels.
Businesses and consumers are in good financial shape in Puerto Rico and the economy continues to do well. We look forward to ongoing progress in 2023. Thanks to our teams for their excellent execution, commitment and drive, helping customers and the communities we serve achieve their financial goals.