OFG Bancorp (NYSE:OFG) Q2 2020 Earnings Conference Call - Final Transcript
Jul 24, 2020 • 10:00 am ET
Good morning. Thank you for joining OFG Bancorp's conference call. My name is Laurie, and I'll be your operator today. Our speakers are Jose Rafael Fernandez, President, Chief Executive Officer and Vice Chairman; and Maritza Arizmendi, Executive Vice President and Chief Financial Officer. A presentation accompanies today's remarks. It can be found on the Investor Relations website on the homepage in the What's New Box or on the Webcasts Presentations & Other Files 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 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. Fernandez.
Jose Rafael Fernandez
Good morning. Thank you for joining us. Please turn to Page 3. First, I would like to thank all our team members for their dedication and commitment during these very challenging times. Like other banks, we faced a number of COVID-19 related challenges during the second quarter. But for us at OFG, the pandemic also followed the earthquakes we experienced in January and occurred while we were in the process of integrating the Scotiabank acquisition. Certainly, no small challenge. But by acting quickly and with foresight, we produced excellent results for our customers, communities and people, and continue to help them build better financial futures.
In March, governments in Puerto Rico and US Virgin Islands shut down businesses and personal activities. Restrictions were eased in late May. But recent spikes in new cases have forced Puerto Rico to reduce some of the flexibility. The Federal Reserve Bank cut rates 150 basis points in March, following the 75 basis points reduction in the second half of 2019.
Our commitment and preparation enabled us to successfully manage these challenges facil, rapido, hecho; easy, fast, done, as we say at OFG. All our branches operated safely throughout the quarter, enhanced by our technology platform. Our full-service ATMs and ITMs, mobile app, and online bill paying tools facilitated routine transactions in a contactless manner. Online and mobile appointment scheduling helped make COVID safe customer meetings possible at branches. We deployed a 100% digital client-friendly application and funds disbursement process for PPP loans. About half of our team members are still working remote. We also implemented extensive new safety protocols for our customers and people on site. And we continued to offer new benefits for our people such as free COVID on-site testing and daily online health check-ins, as well as incentives.
The results speak for themselves. We provided high levels of customer service, safety and knowledge throughout all channels. Loan production in the second quarter totaled more than $500 million. Customer deposits increased $760 million. Our online loan