Good morning. My name is Laurie, and I will be your conference operator today. Thank you for joining us for this conference call for the OFG Bancorp. Our speakers are José Rafael Fernández, President, Chief Executive Officer and Vice Chairman; and Ganesh Kumar, Executive Vice President and Chief Financial Officer. There is a presentation that accompanies today's remarks. It can be found on the Investor Relations website under the webcast presentations and under file page. Please note this call may feature certain forward-looking statements about management's goals, plans, and expectations, which are subject to various risks and uncertainties, outlined in the Risk Factor sections of OFG Securities and Exchange Commission 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, which occur afterwards. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question-and-answer session. During the question-and-answer session, we ask questioners to not use cell phones as they might call loud static on the line. I would now like to turn the call over to Mr. Fernández. José Rafael Fernández: Thank you and good morning to all. I will cover the general overview and Ganesh will discuss key aspects of our financial results. Please turn to slide four. OFG had another strong core performance in the third quarter. We earned $0.34 a share diluted versus $0.68 in the second quarter. Please note that $0.68 included $0.43 for the other items. The first was a net of increase in our DTA and the second one was an increase in provision related to moving NPLs to held for sale. There were a number of significant accomplishments during this quarter. First, we saw continued high levels…

Thank you, José. Thank you all for your time. Let me start walking you through operating results that echo José’s sentiments he expressed now. The quarter’s highlight to recap are strong core performance completed technology conversion, vastly improved asset quality, all performance ratios are comparable to state size good performing institutions. In all, we can say we are delivering on our promises we made prior to our acquisition. On page -- on slide five, you can see that we are building our non-covered loan balances very nicely. We had anticipated some run-off prior to be our -- prior to BBVA-PR acquisition on our modeling. But actual results are much more encouraging. Balances are up 4.2% from second quarter and slightly ahead of year 2012 combined. These high balances have resulted in a greater level of interest income year-to-date and it has also benefited our NIM trends. To give you some color on our portfolio, commercial institutional loans showed strong growth. This includes new commercial loans and as well as expanded government loan book that we will be discussing in few slides. Residential mortgages decreased this quarter. We expect the balances continue to taper down gradually as we do not had more non-conforming loans as part of our overall production. Other loans were flat, we are primarily maintaining our market share and as well as the portfolio as the production balances, repayments and charge-offs, consumer loans continuing to do well include -- increasing our portfolio. On page six, we present you the trends in our loan generation. Prior to acquisition we expressed that one of our key strategy is to build our loan generation capabilities. We demonstrated this in second quarter which we are pleased to repeat again in the third quarter. Production increased 68% from preceding quarter to a record…

(Operator Instruction) Your first question comes from line of Brian Klock of Keefe, Bruyette & Woods. Brian Klock - Keefe, Bruyette & Woods: Good morning, gentlemen. José Rafael Fernández: Good morning, Brian. Brian Klock - Keefe, Bruyette & Woods: I guess, just a real quick question, I guess, on clarification then, José Rafael on your earlier comment since beginning of the call, you talked about sort of core run rate of earnings, similar to what the third quarter was. So should we take the $0.34 add back to $0.03 of merger cost, the losses and security and then at the loss and the sale of an NPL so are you talking about a core run rate that’s more like $0.40, so that’s what you mean? José Rafael Fernández: Brian, I'm referring to really the end of the 2013 year when I -- so I just want to first of all frame it there and I’m just giving a comfort to everyone that we feel very comfortable that the results in the fourth quarter are very much in line with this quarter and your comments are quite accurate. Brian Klock - Keefe, Bruyette & Woods: Okay. Okay. And then…

Brian, I would like to add because the $0.35 -- the ETR will go back to be 35% as supposed to be 25% this quarter as of right now. Brian Klock - Keefe, Bruyette & Woods: Right. Yeah. And I guess thinking about -- can I show, with the net interest income and the margin guidance that you gave and I know you said that obviously there is a lot of the accretable yield in the purchase accounting nose that goes through there and eventually you would expect to see that margin kind of compressed down to the 5% range. It seems like though that you did have some more transfers from the non-accretable discount into the accretable yield. So it almost seems like there’s going to be some more accretable yield coming through the NII line in the next few quarters, does that make sense? José Rafael Fernández: Correct. We -- not next few quarters lower -- the lower the average, weighted average life of the loan I should say. If you see the 10-Q, accretable yield and then what we are showing in this table preliminary results it’s about $60 million increase in accretable yield quarter-to-quarter between the end of the second quarter and beginning of the third quarter. That’s because of the remeasurement that we are continuing to do. Basically what are the way we work was throughout the year, we have until December 18 to do the remeasurement, complete the remeasurement. We take pull-by-pull, our loans in terms of significance, in terms of balances and continue to work down. So that’s part of the changes. And I think if you ask me, are there more remeasurement that is yet to come, we are almost very closed to performing it and are showing it and therefore, there will be very little changes in the next quarter and that’s why I think I’d said that this quarter is very closed to being a normalized quarter. And to me I think the noise primarily comes from some provisions, higher provisions because we did a higher covered provisions as part of the annual recasting and the FDIC is always the issue and then the tax. Brian Klock - Keefe, Bruyette & Woods: Got it. Okay. Thank you. I’m going to jump back in the queue. Thanks for taking my question, guys.

Your next question comes from line of Emlen Harmon of Jefferies.

Hey. Good morning, guys.

Good morning, Em.

I was actually hoping to continue on the provision for a little bit as well, did see -- you guys increase the reserve on parent consumer and auto books? Could you give us a little bit a color behind the decision there and do you feel like the provision on a non-covered portfolio is kind of at a run rate we should expect going forward?

If you see (inaudible) what we did Emlen is obviously our LNS methodology replaces what charges we have done, so because that is our historical loss factor. And we assume as I mentioned that going forward the historical loss factor is the actual experience that we are going to have. It’s not going to any more lower than that. That is our assumption working assumption. And if you consider our production levels, if you have to maintain the same 2% sort of allowance to the total loan portfolio, if you take the new production and see the basically the 2% is what we have provided as for the new loans.

Got you. Okay. But, I mean, the balances there were on a net basis, I guess, relatively flat in those two books. So, I guess, based on what you’re telling me, I mean, if we see kind of limited growth in the auto or the consumer books, we essentially expect to you guys be replacing charge-offs from this point going forward? José Rafael Fernández: Emlen, remember that, what you’re saying at the overall book…

Exactly. José Rafael Fernández: … is correct, but we have the new book is growing quite rapidly on the consumer side.

And thus was the auto. The way it happens, Emlen, is the -- what our production, the net of the charge-offs and all those kind of outflows, it comes out of the SOP book and it goes into the new book, which needs provisions.

Got you. So there is going to be a churn essentially over the next year or too.

Exactly. José Rafael Fernández: Correct.

Yeah. Got you. Okay. And then still -- couple of questions on the expenses, the decline in interest earning assets you noted they were some expense saves that come along with that? Is that separate in distinct from the kind of three areas that you laid out near the tail end in your prepared remarks?

Decline in interest, say that, could you repeat the question again?

So, yeah. Sure. So you know, you’re expecting a decline in interest earning assets, as we head out in to next year? José Rafael Fernández: Correct.

And in conjunction with that you would also say there were some cost savings, I guess, that you were expecting to kind of help offset that, was that something separate in distinct from the three areas that you laid out for us at the very end of the call here or is that -- those expense kind of included in those three areas? José Rafael Fernández: They’re all included. They’re all included. And as I mentioned part of those sales from deposit cost saves that we anticipate. And including in that we can also say that we have already taken some BBVA costs saves in 2013, which we will add into 2014 additional portion and together the full impact you will see it in 2015. And that’s kind of how we have laid out the cost saves into the acquisition.

Got it. Okay. And one final one if I could, kind of say thanks is there going to be a little bit of color on how you’re thinking about capital longer term? How should we think about return to shareholders versus keeping something in store for kind of strategic activities that may come up? Should we think about you guys are kind of at a level in 2015 where you can -- you feel like you have some capital in store for doing acquisitions or other strategic actions and we should expect the majority of earnings to be return or how do we think about kind of where you are in 15 and what you want to hold in store for anything that comes up?

The way we look at it, Emlen is we kind of look at tangible common equity levels and we think we should operate slightly above the 8% TCE. So right now we are around 7.43% and we think that we can target 8% on the TCE we will be comfortable kind of having, I don’t want to use a word excess but I guess, I’m, so comfortable with levels of capital. We are comfortable today but we will be then getting into some more, let say capital management strategies. Having said that and as I mentioned on my prepared remarks, we feel that there is an opportunity for us to start looking at the dividend and start evaluating that possibility.

Okay. Thanks. Appreciate the responses. José Rafael Fernández: Welcome.

Your next question comes from the line of Todd Hagerman of Sterne Agee.

Good morning, everybody. José Rafael Fernández: Hi, Todd. How are you?

Good. Thank you. Couple of questions. First, Ganesh, one of the leverage points is the cost to funds as it relates to deposits specifically, and I was wondering if you could just talk a little bit more, as I look at the average yields in Table 5 I noticed that, I noticed you the both brokered and the borrowings did come down which is positive yet. The brokered deposits really not change in yield and we had a pick up on the borrowing side. I’m just wondering if you could just give a little more detail in terms of those leverage points particularly with some of those higher cost funding sources.

Sure. As I mentioned, Todd, that we do have time deposit and as well as some institutional CDs that are maturing and we are going to reprice them and I think that’s in the plan. And we have not taken wholesale efforts in order to reprice the consumer deposits primarily because we were focusing on integrating the organization and the branch network and all those kind of things. So there, as we have always said there are some opportunities in deposit cost reductions and I think the first order of business after this quarter for us is to take a look at the institutional time deposits and continue to wind down the broker CDs as we run access of loans, so as they become mature and I think that is our first starter of business. And then in 2014, we can always take a look at lower cost deposits on the consumer side. José Rafael Fernández: I also point -- like to point out also, Todd, that during the quarter we also took advantage of restructuring or the maturity of a couple of repos that we had. And that’s why you see a little bit of a higher cost on the repos this quarter and that is basically us maintaining our asset and our liability strategies in place, as we had some short-term repos that we wanted to extend for one and half to two years going forward.

Okay. That’s helpful. And just a follow-up, Ganesh, in terms of the institutional time deposits, could you just give us a sense of what the kind of average rate there is and what the order of magnitude kind of where that could possibly reprice?

It’s the institutional deposits. When we referred to institutional deposits, are primarily deposits from local cooperatives and there is absolutely no need for excess liquidity at this point in time, and therefore these deposits which are price at 120 basis points, as and when they come to maturity we maybe able to offer them lower rates. And in case if they don’t renew into continue the relationship, we do have liquidity, enough liquidity and loan to deposit coverage to let them go. So, I think the primarily, as I said this quarter, we need to take a look at those relationship and start repricing them as we can.

Okay. Great. And then just finally, José you mentioned about the positive pipeline I believe on the commercial side. I’m just curious in terms of this quarter, if you could just give a little bit more detail in terms of the impact that the government borrowing did have on the growth this quarter and kind of related to the pipeline going forward, does the government play that segment, play any kind of meaningful role in terms of your pipeline going forward? José Rafael Fernández: Yeah, let me say a couple of things. One, Ganesh mentioned in his remarks, the exposure that we have to the government of Puerto Rico was pretty much acquired from the BBVA acquisition back in December. And I think we are pretty much covering our exposure in terms of how much more we want to be exposed in terms of the government of Puerto Rico. Having said that though, we are here to continue to work with the government and try to help and lead in terms of what needs to be done to help get things restarted in terms of the economy. From that angle, I can say that the production here this quarter was basically a tranche that matured in the second quarter that we had a $125 million of tranche that matures and we basically originated a new tranche for $100 million on the same type of tax anticipation note which will come due April, May and June of next year. The rest is a couple of municipal, a very strong municipal loans that we gave and these are municipalities that have a very longstanding relationship with us in terms of other banking products and services and we feel very confident and comfortable with their operations. I would say, we also did couple of significant new loans on the commercial side that add to our good relationships, commercial relationships and we can now continue to grow those and expand those client services as we have more capabilities now.

That’s very helpful. I appreciate the comments. José Rafael Fernández: Welcome.

(Operator Instruction) Your next question comes from the line of John Stein of FSI Group.

Hey, guys. Just a couple more questions on the Puerto Rico loan exposure and thank you for putting this Slide 11 in here. But the 2.61% valuation allowance is that just on the investment securities portfolio or is that on the overall portfolio? José Rafael Fernández: That is actually not in the investment portfolio, it’s on the loan portfolio and it’s part of our acquisition mark.

So that’s the acquisition mark, okay. José Rafael Fernández: That’s the general valuation allowance and the securities’ mark to mark.

But the new loans that you’re making, you are specifically provisioning on? José Rafael Fernández: The new government loans?

Yes.

According to our provision methodologies? José Rafael Fernández: The general valuation allowance and according to provision methodology, it’s covered under the provision.

And what is the yield profile of the new government loans that you are putting on? José Rafael Fernández: The new government loans are coming in around 350 to 400 basis points above LIBOR and remind you -- let you know that these are tax exempt, so there is a effective tax, a yield…

Full time equal of -- fully taxable, equal in this fair.

Okay. And here you emphasize relatively short duration, do you expect to keep the portfolio size stable as these loans mature or shrink it down? José Rafael Fernández: It just really depends. We do have a constant communication with the government and I think we need to work with them and make sure that we help on all fronts. So my expectation would be to keep it at this level and if there are some opportunities to reduce that exposure we will take advantage of them, but we also want to be able to provide some help locally.

Okay. Thank you. José Rafael Fernández: Welcome.

At this time, there are no further questions. I will now turn the call back over to management for closing remarks. José Rafael Fernández: Thank you. And we look forward to talking to you next quarter when we hold our fourth quarter call next year actually. Thank you all for your time and have a great day.

Thank you for participating in today’s conference call. You may now disconnect.