Good morning. My name is Paula, and I will be your conference operator today. Thank you for joining us for this Conference Call for 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 on the Homepage or on the webcast, presentations and other files 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 Factors section of OFG's 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 speakers' remarks, there will be a question-and-answer session. I would now like to turn the call over to Mr. Fernández. José Rafael Fernández: Good morning. Thank you for joining us. We received good feedback to the shorter format presentation we did last quarter, so we will continue with that and I will address the big picture here in Puerto Rico that affects OFG, then we will open it up for questions-and-answers. We have all our usual quarterly slides in the appendix of today’s presentation, Ganesh and I will be happy to answer any questions on that. To start, please turn to slide three; there are four major points that I would like to communicate today. One, Puerto Rico’s economy remains flat. It is not falling off a cliff as many people outside the island hear. The GDB Activity Index has been mostly stable since…

[Operator Instructions] Your first question comes from Brian Klock of Keefe, Bruyette & Woods.

Good morning, gentlemen. José Rafael Fernández: Good morning, Brian.

José Rafael, I guess the question for you would be the other matter that you discussed with the consent order around the BSA/AML. I know it’s early in the process, but I guess what are you thinking about as far as -- it’s a good news that there is no civil monetary penalty, so I guess is there a thought process about I guess expenses going forward about having to either comply with or enhance some of your internal controls? José Rafael Fernández: Hey, Brian, thanks for the question. The way I can easily answer that question for you is that we have been working with this, a, for the last year or so. It’s something that we have been already built in into our expense, the results you’re seeing with our expense levels. So we don’t -- even though we have increased our expenses due to BSA, they have already been baked in into the results that you’ve seen. We do not expect any significant incremental expenses from that part right now. They have already been kind of included in the results.

Okay. Thanks for that. Appreciate that. And I think the quarter and I would say thanks again, like on page four of the release, there was a lot of noise with the bulk sale and some moving parts, so thanks for that reconciliation, it helps to work clearer form of your kind of recurring earnings power. So given how challenging it’s been in the economy, at least the headlines, I would say, I mean it’s challenging economy that you’re dealing with in challenging times, but maybe just talk about, there is some stability though on the ground it seems. As you mentioned, the economic activity index seems to be so much stable and you’re seeing some good origination trends. So maybe just talk about that dichotomy of what you’re reading in the paper if you’re not in Puerto Rico and what you’re seeing on the ground and how you guys are operating through that? José Rafael Fernández: So, we see the numbers and certainly the consumer continues to be resilient to the economic situation in Puerto Rico and the level of consumption remained relatively stable also. You are seeing -- again, we’ve been at this for nine years and the businesses that we visit and I visit clients got often. They continue to tell me a couple of things. One, we have been able to streamline our operations and certainly are preparing ourselves to a difficult economic environment. Two, energy prices are down significantly and therefore, that has given them some cushion in terms of being able to navigate the environment also. So that’s one side of what you are seeing. And I also think that it has to do a lot with two different types of industries. Certainly, industries related to professionals and manufacturing that does not depend on government as a client. They remain strong and this will steer some economies so that the weak are being bought by the stronger and we tend to look towards those types of clients to do business with them.

Okay. Thank you for that. José Rafael Fernández: We are also seeing, Brian, a lower levels of cash on the different businesses that we do business with and that’s because they are trying not to leverage themselves to invest in their different operations. So they are using their access cash to kind of invest in their operations rather than going out and borrowing. We are seeing that on several different industries. But in general, I think that the economy is not falling off the cliff as I said and it’s going to be very much dependent on how the next couple of quarters or months the central government liquidity shortfall plays out and that’s what concerns us.

Sure. And I guess maybe my last question and I will get back in the queue. So when you think about that, so you spend the time to try to go through your exposure. Obviously, you’ve done a great job working through the direct government exposure. But I guess as far as the indirect, how do you think about the potential issues if there really is a government shutdown and is that something that -- I guess, how worried are you in the near-term on that? José Rafael Fernández: We have been proactively analyzing the direct exposure in all our portfolios. We feel comfortable that the exposures that we have, not only are they manageable but they are also focused from our part to make sure that we reduce them or proactively manage and interact with those clients to make sure that they reduce their government exposure. I think we’ve been very successful and really does not have much over of an effect. It’s around $82 million in total that we have of indirect exposure to the Puerto Rico government on the commercial loans.

Okay. Great. Thank you for your time. Appreciate it. José Rafael Fernández: Yeah. You are welcome.

[Operator Instructions] Your next question comes from Emlen Harmon of Jefferies.

Hey. Good morning, guys. José Rafael Fernández: Good morning, Emlen.

Good morning.

I just have a quick follow-up on the BSA consent order. Were there any capital provisions related to that order? José Rafael Fernández: No.

Okay. So no restrictions on capital levels or capital allocation systems. Got it. Okay. And then I would -- second, Brian, thanks on the reconciliation tables. I think those are going to be pretty helpful. When we think about just the interest income effect from those bulks sales, your brook it down into two, kind of two components as a $7 million component and the $3 million component. That $7 million, is that a full quarter’s kind of run rate from the sale, or is there an incremental effect that we should be thinking about as we head into the fourth quarter?

Emlen, this is Ganesh here. The $7 million what we said was because of the accounting effect of this sales. Going forward, we do believe the Eurobank will not -- Eurobank portfolio will not have such a high yield and it should drop. And we are in the process of working our forecast and we need to work on it and do exactly price what is going to be.

Okay. José Rafael Fernández: It’s going to be much lower than the 22%, 32% that we have, we are usually.

Right. José Rafael Fernández: Yeah. Yield wise.

Right. Got you. Okay. And then last one from me. You guys added some, you mentioned you added the, you should be adding more mortgage to the portfolio instead of selling this quarter? Is that something you think you will continue to do?

Yeah. It’s something that makes sense to us from a yield perspective rather than going out and buying mortgage-backed securities at 2.25%. We are holding on to our FHA originations and securitizing at 3% unchanged. So it makes sense for us and it also tax exempt so we make this.

Okay. All right. That was it from me. Thanks. José Rafael Fernández: Thank you.

[Operator Instruction] Your next question comes from Taylor Brodarick of Guggenheim Securities.

Great. Thank you. I guess, really two questions from me. Just looking at the charge-off on delinquency slide, I guess, how much of the decline is from the bulk sale is risky? I’m just trying to get a sense on the four trends? José Rafael Fernández: Can you repeat the question? You got little bit cut-off.

Sorry. I think I am having some telephony issues. I was just wondering, so just looking at the improvement in the delinquency rate. I guess, how much of that is a function of the derisking to the bulk sales and is the core -- is your core improvement tracking that as well? José Rafael Fernández: Well, actually, Taylor, if you look at table six, we show over there excluding acquired loans. And so if you look at that that should give you the idea of what is the decrease in our non-acquired book. And we show a decrease in the earlier delinquency and as well as the NPA level a bit.

Okay. Got it. Okay. Great. And then, I guess, have you updated the credit shock scenario that you released at the last earnings call? José Rafael Fernández: Yeah. We are in the process starting that process, the last one was what we presented last quarter. And we will be continuing to update that starting right now.

Okay. All right. Great. All right. Thank you very much. José Rafael Fernández: You’re welcome.

[Operator Instruction] At this time, there are no further questions. I’ll now turn the floor back over to Mr. José Rafael Fernández for any closing remarks. José Rafael Fernández: Thank you, Operator. Thank you also to all our stakeholders who listen in today. In November, we will be visiting investors in Dallas and at the Sandler O’Neill East Coast Financial Services Conference in Palm Beach. So we look forward to seeing some of you there. And our preliminary date for reporting fourth quarter result is Friday, January 29, 2016. So, thank you again and have a great weekend.

Thank you. This concludes today’s conference. You may now disconnect.