Good day and welcome to the October 28, 2014 First Bancorp reports its Third Quarter Results 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 note this event is being recorded. I would now like to turn the conference over to Mr. John Pelling, Investor Relations Officer. Please go ahead, sir.

Thank you, Chad. Good morning everyone and thank you for joining First BanCorp's Conference call and webcast to discuss the company's financial results for the third quarter 2014. Joining me today are Aurelio Alemán, 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 that 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 the company’s website at firstbankpr.com. At this time, I would like to turn the call over to our CEO, Aurelio Alemán. Aurelio? Aurelio Alemán-Bermudez: Thank you, John. Good morning, everyone, for joining again to discuss our results for the quarter. On the call we have today is Orlando Berges, our CFO. First, I will walk you as usual through the key highlights and then Orlando will discuss the results in more detail and then we will open for a Q&A for all of you. Please let’s move to Slide 5 on the presentation. We’re definitely very pleased with the quarter $23.2 million in net income for the quarter, what is really our highest net income number since we turned into profitability and it represents 46% increase when we compare to third quarter of 2013. Pre-tax, pre-provision continues strong, that actually improved from prior quarter…

We are ready to begin the question-and-answer session. (Operator Instructions) Our first question today comes from Alex Twerdahl with Sandler O'Neill. Please go ahead. Alexander Twerdahl – Sandler O'Neill & Partners LP: Hey, good morning. Aurelio Alemán-Bermudez: Good morning, Alex. Alexander Twerdahl – Sandler O'Neill & Partners LP: First question, could you give us a sense towards the size of the total charge-offs in Florida we're in, and what kind of recovery is there, sort of what the magnitude of recovery is that, if still the remainder potentially are? Aurelio Alemán-Bermudez: Yes, let me kind of give you that information, Alex. Alexander Twerdahl – Sandler O'Neill & Partners LP: You will get back to me with that information, is that right? Aurelio Alemán-Bermudez: Yes, Well, I’ll pull out my reports to try to give you that information. Alexander Twerdahl – Sandler O'Neill & Partners LP: Okay, sure. I'll just move on and ask it really, you said in your prepared remarks that you remain optimistic on moving some of the held for sale and real estate owned properties, and you said, given the strong investment activity that you are seeing in Puerto Rico, could you just elaborate a little bit on what you mean by that and how that’s changed over the past couple of quarters? Aurelio Alemán-Bermudez: When I think, we continue to see C&I and revenue generating activity trading into properties, which I don’t want that we are kind of taking the longer in the legal cycle. And some of them that we have in our (inaudible) portfolio that we sold and actually in area out, so we see a lot more people knocking doors and looking into the assets and activating due diligence, not only that and when we say about what we see in the market,…

Our next question comes from Brett Rabatin with Sterne Agee. Brett Rabatin – Sterne Agee & Leach Inc.: Hi, good morning. Aurelio Alemán-Bermudez: Good morning, Brett. Orlando Berges-González: Good morning, Brett. Brett Rabatin – Sterne Agee & Leach Inc.: Wanted to first ask on the U.S. treasury piece, any color around how much they've already been able to sell, or any thoughts on what remains there? Aurelio Alemán-Bermudez: It’s actually, we don’t know it’s actually a private thing within the treasury. And if you look at the press release the way the process works, at the end of the 90 day period they will report. So we will know by the – I will say close to mid-December, we will always – we will also monitor other programs to determine – frankly to determine the number, but it’s very predictable to say how much volume it’s trading there, they are trading on a daily basis. Orlando Berges-González: They have 19.7 million shares going in the amount. Brett Rabatin – Sterne Agee & Leach Inc.: Aurelio Alemán-Bermudez: Some of the figures are really effect to restructurings or negotiated transactions that because of our great appetite we either decide not to participate or because of pricing we decide not to participate. So we don’t anticipate that to be a problem. This is just one of the more challenges that you have in a competitive market. So – and at the same time we try to be very straight about of equality. On the other hand as you can see we compensated some of that with incremental opportunities in the Florida market which we will continue to take. Orlando Berges-González: To your question, Brett, on timing, it was on average was like the minimal to quarter where you saw the effect on the…

Our next question comes from Brian Klock with Keefe, Bruyette & Woods. Brian Klock – Keefe, Bruyette & Woods Inc.: Hey, good morning, gentlemen. Orlando Berges-González: Hey, Brian. Brian Klock – Keefe, Bruyette & Woods Inc.: So, as a follow-up to Alex’s question, so for Orlando on the DTA, I guess, just remind us on the process that you go through on it. I guess is that conversation that you start with your auditors now, I guess, is part of the year-end work and thinking about what you need to do to sort of justify a potential recapture on that DTA. Orlando Berges-González: Second thing is taking that financial projections to be able to put them and schedule them its impact and see how the end loans would reverse throughout the timeframe. Obviously, with – when you’re talking about financial projections you have taken into account there’s always some level of uncertainties so you have to be conservative on those numbers, and based on that you come with a full resale that it costs with the auditors. We had already some conversations with them on the subject matter. Obviously, once we have full documentation of our position then we will sit down with them, but if we reported that we have reached our full documentation and reached our conclusions. And based on that it would – whether the accounts with the full or partial realization depending on what you see on the numbers. So we expect that now if – definitely as you mentioned a process that we’ll start later this quarter. We’ll have started conversation in detail with the auditors since we’re in the process of completing all documentation. Brian Klock – Keefe, Bruyette & Woods Inc.: I appreciate that extra detail. You know what, I guess thinking about…

(Operator Instructions) Our next question comes from Taylor Brodarick with Guggenheim Securities. Taylor Brodarick – Guggenheim Securities LLC: Great, thank you. Just two from me, I guess obviously with the agreements of regulators there are some limitations on using your kind of deploying all your access capital, just kind on your thoughts on really your sort of your preference for whether augmenting the platform or I don’t know, even buying back stock or I don’t know even doing a reverse stock split, just kind of curious how you rank some of your options going forward. Aurelio Alemán-Bermudez: Taylor, can you – I’m sorry about it, we have a little difficult listening to the question. The question was related to how we’re trying to use capital? Taylor Brodarick – Guggenheim Securities LLC: Yes, I am sorry, if I had audio problem. No, I just was saying looking at your excess capital that continues to grow, I know you’ve got some restrictions with the agreements with the regulators but absent that sort of what’s your thoughts on how to do best deploy that capital and also if you consider a reverse stock split just to get the share price a little bit higher. Aurelio Alemán-Bermudez: I think at this stage as we – I think a couple of things are important. One, if we chart the opportunities as they come up and they are economically feasible, we continue to execute as we did in the last quarter. From a longer-term we are over $10 billion bank. So that means we fall in the range of banks that have to file – that comply with DFA and find the stress test at the end of the first quarter. So I can anticipate no capital decisions would be made prior to completing that exercise…

This concludes our question-and-answer session. I would like to turn the conference back to Aurelio Alemán for any closing remarks. Aurelio Alemán-Bermudez: Thank you. I just want to like that, we’ll be presenting at the Bank of America Merrill Lynch conference in New York on November 12. We’ll also be meeting investors at the Sandler O' Neill Financial Services Conference in Naples in November 13. And again, we like to thank you for your time and continued interest in First Bancorp and look forward to talk to you again.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.