First Bancorp (NYSE:FBP) Q3 2020 Earnings Conference Call - Final Transcript
Oct 30, 2020 • 10:00 am ET
we had at June, but a very significant coverage if we consider that we added a large amount of portfolios, that a large part of it is also mark-to-market and fair value mark-to-market and has been discounted. On a non-GAAP basis, if we exclude the PPP loans, which don't carry much reserve, the ratio of the allowance to total loans was 3.38% as compared to 3.55% last quarter. Asset quality remained good in the quarter. Non-performance are down $10.5 million, $293 million. Most of the reduction happened on the OREO portfolio, which decreased $7.3 million. Mostly sales were completed in the quarter. Migrations to nonperforming were higher this quarter. As moratoriums expire, we start getting back to levels of more -- to the normal levels that we were seeing before. And we are in a position to continue to pursue some of the foreclosure processes that were put on hold for a couple of quarters as we provided those moratoriums to customers. The inflows were $18.4 million this quarter, which is $10 million higher than last quarter. Capital ratios remained really strong. As you can see, even with the impact of the acquisition, we still have Tier one ratios of 17%. The leverage ratio, I think that's important to mention. You see it's about 13% for the quarter. But we only had Santander operation for one month in the quarter, so average assets were less. If we were to normalize and assume the full quarter of average assets, that ratio will be closer to 11%, just over that. And that was -- we expect that it's still very significant with the acquisition of $5-plus million in assets in the quarter.
With that, I will open the call for questions.