Good morning and welcome to First BanCorp Second Quarter 2014 Earnings Conference Call and Webcast. All participants will be in listen-only mode. (Operator Instructions) After today's presentation there will be an opportunity to ask questions. (Operator Instructions) Please also note this event is being recorded. I would now like to turn the conference over to John Pelling, IR Officer of First BanCorp. Please go ahead, sir.

Thank you, Rocko. Good morning everyone and thank you for joining First BanCorp's Conference call and webcast to discuss the company's financial results for the second quarter 2014. Joining me today are Aurelio Aleman, President and Chief Executive Officer; and Orlando Berges, Executive Vice President and Chief Financial Officer. Before we begin today’s call, it is my responsibility to inform you this call may involve certain forward-looking statements, such as projections of revenue, earnings and capital structure as well as statements on the plans and objectives of the company’s business. The company’s actual results could differ materially from the forward-looking statements made due to the important factors described in the company’s latest Securities and Exchange Commission filings. The company assumes no obligation to update any forward-looking statements made during the call. If anyone does not already have a copy of the webcast presentation or press release issued by First BanCorp, you can access it at our company’s website at firstbankpr.com. At this time, I would like to turn the call over to our CEO, Aurelio Aleman. Aurelio? Aurelio Alemán-Bermudez: Thank you, John. Good morning, everyone, and thank you for joining us to discuss our second quarter results. I will walk through some key highlight from the quarter and then Orlando will discuss the results in more detail and then we will open the call for Q&A as usual. Please turn to Slide 5. As we have stated in prior calls, we remain focused on our dual track of improving the core franchise profitability, while remediating our legacy credit issues and the risk in the balance sheet. We have to say that we're really very pleased with the $21.2 million of net income for the quarter. This was our best net income quarter since we turned into profitability. In spite of…

Thank you, sir. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Alex Twerdahl of Sandler O'Neill. Please go ahead. Alexander Twerdahl – Sandler O'Neill & Partners LP: Good morning. Aurelio Alemán-Bermudez: Good morning, Alex. How are you? Alexander Twerdahl – Sandler O'Neill & Partners LP: I'm well, thanks. First off, could you give me a little bit more color on these two commercial loans the $60.5 million that migrated into non-performing during the quarter. You said that they were shared national credits, are they located in Puerto Rico? Aurelio Alemán-Bermudez: Yes, they're both located in Puerto Rico. Alexander Twerdahl – Sandler O'Neill & Partners LP: Okay. And were they on some sort of a watch list or was it kind of just a huge surprise that they went bad during the quarter? Aurelio Alemán-Bermudez: No, they were no surprise. They've been in the radar screen for some time. Alexander Twerdahl – Sandler O'Neill & Partners LP: Okay, great, thanks. Can you talk about the appraisal trends for commercial properties down there? I know that after the bond issuance in Puerto Rico in March, there were some more increased investor interests for some of the larger commercial properties. Can you talk about how that changed over the past quarter, especially with the recovery act being passed and the balance budget et cetera, just sort of what you are seeing for – some of these big properties for the interest down there? Aurelio Alemán-Bermudez: I'll make some comments, but obviously we have not seen – with the recovery act was enacted less than a month ago. So I doubt we'll see any impact (inaudible). It's too close for any actions. During the quarter, we saw some improvement, remember, some of the properties are also – appraisals…

Thank you. (Operator Instructions) Our next question comes from Brian Klock of Keefe Bruyette & Woods. Please go ahead. Brian Klock – Keefe Bruyette & Woods Inc.: Good morning, gentlemen. Aurelio Alemán-Bermudez: Good morning, Brian. Orlando Berges-González: Good morning, Brian. Brian Klock – Keefe Bruyette & Woods Inc.: So actually I just – I had a question on Slide 14, you guys talked about the increase in adversely classified during the second quarter related to a public corporation. I guess, is there any sort of color you can give us on any sort of provisioning that would have been built along with that adversely classified loan? Orlando Berges-González: Yes, we (inaudible) adversely classified loans that are not considering fair – general (inaudible) and we assign general (inaudible) allowance, that are (inaudible) in accordance with our allowance calculation methodology. As you know, we develop general valuation allowances that are for each category of loan meaning differently from the classified assets. And along with (inaudible) will be treated (inaudible) so for this case we assign the same level of reserves that we would assign to any other substandard classified loan that we would have on the books on the general (inaudible) process. Brian Klock – Keefe Bruyette & Woods Inc.: Okay. Thank you. That’s helpful. And maybe I guess a follow-up to Alex's question on the two large commercial NPAs in the quarter, I know I had – I think you said, that they are performing, so I guess what was the sort of characteristics of those loans, what was it that, I guess, got you concerned and hedge it (inaudible) to non-performing? Orlando Berges-González: The two loans as Aurelio mentioned are (inaudible) credit, so we move according to what the banks (inaudible) sees on the cases. They're obviously to be classified,…

Thank you. Our next question comes from Taylor Brodarick of Guggenheim Securities. Please go ahead. Taylor Brodarick – Guggenheim Securities LLC: Great, thank you. I think Alex and Brian had a lot of stuff, but on the tax rate I assume that probably would revert back what we've seen in the last several quarters prior to 2Q, is that right? Orlando Berges-González: I couldn’t hear you well, Taylor, could you repeat that please? Taylor Brodarick – Guggenheim Securities LLC: Yes, I said, I would assume that the lower tax rate in 2Q is an anomaly and hopefully the tax rate trend back into the – what we've seen in 1Q and 4Q, correct? Orlando Berges-González: Yes, as I mentioned, we did have some accrual reversals in the quarter. That's why we had a positive effect because of I think specifications that has been going on for quite a while and then was completed. So we did reverse on tax accruals in there. So you should see more in the levels that we had in prior quarters. Remember, the tax number is at this point it’s basically related to the results of the profitable subsidiaries that we have the banks [ph] because of the amount of NOL carryovers and the fact that we have valuation allowance and the DTA, any impact on the bank will be compensated with that. Taylor Brodarick – Guggenheim Securities LLC: Great, thanks. And looking at sort of residential and the migration of residential and consumer NPL, very little this quarter. I've heard comments here from your peers that suggested that additional strength on the consumer was (inaudible) in Puerto Rico. Are you seeing that or anything change materially over the last few months? Orlando Berges-González: Well, we've been playing conservative for some time, so we monitor very closely the policies on the new volumes. And we – the inflows are not really the issue at this stage, I think the issue is – it’s more market volumes in the overall that we have seen a reduction in auto sales and mortgage originations over the last year if you compare to 2013 to 2014. But we feel – obviously, the consumer portfolio does not accumulate NPA, so we see the impact immediately. We act on the front-end of the policies, when we see early deteriorations. So the – at this stage – to this stage early delinquency is stable, but we monitor that every day basically. Taylor Brodarick – Guggenheim Securities LLC: Right, okay. And then I guess lastly of the public corporation exposure, I assume the $75 million is PREPA, what is the balance PRASA? Aurelio Alemán-Bermudez: In our case it's (inaudible), yes. Taylor Brodarick – Guggenheim Securities LLC: Okay, great. Thank you, both. I appreciate it. Aurelio Alemán-Bermudez: Thank you.

Thank you. And it looks like we have a follow-up from Alex Twerdahl of Sandler O'Neill. Please go ahead. Alexander Twerdahl – Sandler O'Neill & Partners LP: Sorry about that. Just can't let another conference call go by without getting some updated commentary on the DTA recapture. Orlando Berges-González: You couldn't let it go, right? Aurelio Alemán-Bermudez: Orlando Berges-González: I don’t think anything has changed from what we have mentioned the last few quarters. I mean, we – this is again the fourth quarter of profitability since the (inaudible). We continue to see a possibility of laying (inaudible) continue profitability and we will continue to work on that side to eventually have those discussions. But clearly the (inaudible) important thing to support (inaudible) and that we were looking for, so nothing has changed from what we have mentioned before. Alexander Twerdahl – Sandler O'Neill & Partners LP: Okay, great. Thank you.

Thank you. And this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks they may have. Aurelio Alemán-Bermudez: We thank you all for joining the call and participating today again. And we look forward to the next call and seeing you in person.

Thank you. The conference has now concluded, and we thank you all for attending today’s presentation. You may now disconnect and have a wonderful day.