# FIRST BANCORP /PR/ (FBP) FY 2021 MD&A

Verbatim Item 7 Management's Discussion and Analysis from FIRST BANCORP /PR/'s 10-K for fiscal year 2021.

SEC filing source: https://www.sec.gov/Archives/edgar/data/1057706/000105770622000005/fbp1231202110k.htm
Accession: 0001057706-22-000005
Filing date: 2022-03-01
Report date: 2021-12-31
Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization.
Confidence: high

Company profile: /company/FBP/
All MD&A years: /company/FBP/mda/
Next year: /company/FBP/mda/fy2022/ (FY 2022)

Item 7. Management’s
 
Discussion
 
and Analysis
 
of Financial
 
Condition
 
and Results
 
of Operations
 
(“MD&A”)

The following MD&A
 
relates to the
 
accompanying audited consolidated
 
financial statements of
 
First BanCorp. (the
 
“Corporation,”

“we,” “us,”
 
“our,”
 
or “First
 
BanCorp.”) and
 
should be
 
read in
 
conjunction
 
with such
 
financial statements
 
and the
 
notes thereto.
 
This

section
 
also
 
presents
 
certain
 
financial
 
measures
 
that
 
are
 
not
 
based
 
on
 
generally
 
accepted
 
accounting
 
principles
 
in
 
the United
 
States

(“GAAP”).
 
See “Basis of
 
Presentation” below
 
for information
 
about why the
 
non-GAAP financial
 
measures are
 
being presented
 
and

the reconciliation of
 
the non-GAAP financial measures
 
to the most comparable
 
GAAP financial measures for
 
which the reconciliation

is not presented earlier.

The detailed financial discussion that follows focuses on
 
2021 results compared to 2020.
 
For a discussion of 2020 results compared

to
 
2019,
 
see
 
Item
 
7,
 
Management’s
 
Discussion
 
and
 
Analysis
 
of
 
Financial
 
Condition
 
and
 
Results
 
of
 
Operations
 
included
 
in
 
the

Corporation’s Annual
 
Report on Form 10-K for the year ended December 31, 2020, which is incorpora
 
ted herein by reference.

DESCRIPTION OF BUSINESS

First BanCorp.
 
is a diversified
 
financial holding
 
company headquartered
 
in San Juan,
 
Puerto Rico offering
 
a full range
 
of financial

products to
 
consumers and
 
commercial customers
 
through various
 
subsidiaries. First
 
BanCorp.
 
is the
 
holding company
 
of FirstBank

Puerto
 
Rico
 
and
 
FirstBank
 
Insurance
 
Agency.
 
Through
 
its wholly
 
-owned
 
subsidiaries,
 
the
 
Corporation
 
operates
 
in
 
Puerto
 
Rico,
 
the

USVI, the BVI, and the state of Florida, concentrating
 
on commercial banking, residential mortgage loans,
 
finance leases, credit cards,

personal loans, small loans, auto loans, and insurance agency activities.

SIGNIFICANT EVENTS

Stock Repurchase Program

On April
 
26, 2021,
 
the Corporation
 
announced that
 
its Board
 
of Directors
 
approved a
 
stock repurchase
 
program, under
 
which the

Corporation
 
may repurchase
 
up to
 
$300 million
 
of its
 
outstanding stock,
 
including common
 
and preferred
 
stock, commencing
 
in the

second
 
quarter of
 
2021 through
 
June 30,
 
2022. During
 
the year
 
ended December
 
31, 2021,
 
the Corporation
 
repurchased 16,740,467

shares of
 
its common
 
stock for
 
$213.9 million.
 
In addition,
 
on November
 
30, 2021,
 
the Corporation
 
redeemed all
 
of its
 
outstanding

shares of
 
non-convertible, non-cumulative
 
perpetual monthly
 
income, Series
 
A through
 
E Preferred
 
Stock for
 
its liquidation
 
value of

$36.1 million.
 
Furthermore,
 
during the
 
first quarter
 
of 2022
 
the Corporation
 
repurchased 3,409,697
 
million shares
 
of common
 
stock

for the remaining $50 million authorized under the stock repurchase
 
program.

COVID-19 Pandemic and Economy

The
 
ongoing
 
COVID-19
 
pandemic
 
has
 
caused
 
unprecedented
 
and
 
continuing
 
uncertainty,
 
volatility
 
and
 
disruption
 
in
 
financial

markets
 
and
 
in
 
governmental,
 
commercial
 
and
 
consumer
 
activity
 
in
 
worldwide,
 
including
 
in
 
the
 
markets
 
in
 
which
 
the
 
Corporation

operates. In
 
response, federal,
 
state, and
 
local governments
 
have taken
 
and continue
 
to take
 
actions designed
 
to mitigate
 
the effect
 
of

the virus on
 
public health and
 
to address the
 
economic impact of
 
the virus. As
 
restrictive measures were
 
eased during the
 
end of 2020

and into 2021, based
 
upon positive signs of
 
recovery driven by
 
vaccination and government
 
stimulus programs, economic
 
activity has

improved.

As
 
of
 
February
 
18,
 
2022,
 
approximately
 
6.6
 
million
 
vaccines
 
of
 
COVID-19
 
have
 
been
 
administered.
 
Approximately
 
2.9
 
million

people
 
have received
 
at least
 
one
 
dose of
 
the COVID-19
 
vaccine and
 
approximately 2.6
 
million
 
people,
 
or approximately
 
84.9% of

Puerto Rico’s eligible population,
 
have completed the vaccination process and 54.3% have received the booster
 
shot.

The
 
Corporation
 
continues
 
to
 
operate
 
consistent
 
with
 
guidance
 
from
 
federal
 
and
 
local
 
authorities.
 
The
 
Corporation’s
 
banking

branches
 
are
 
operating
 
during
 
regular
 
hours
 
following
 
health
 
and
 
safety
 
requirements
 
to
 
comply
 
with
 
federal
 
and
 
local
 
health

mandates, including, among other things, deep cleaning, face mask requirements
 
,
 
and strict social distancing measures. On February 8,

2022,
 
the
 
Corporation
 
announced
 
that
 
as
 
part
 
of
 
COVID-19
 
protocols,
 
all
 
employees,
 
service
 
providers
 
and
 
consultants
 
of
 
the

Corporation
 
must
 
have
 
the
 
booster
 
shot
 
of
 
the
 
COVID-19
 
vaccine
 
by
 
March
 
1,
 
2022,
 
with
 
few
 
exceptions.
 
Additional
 
vaccine

mandates
 
have
 
been announced
 
in jurisdictions
 
in which
 
our businesses
 
operate.
 
Adoption
 
of electronic
 
channels continues
 
to grow

significantly during
 
the ongoing
 
pandemic,
 
with active
 
digital banking
 
users growing
 
by 16%
 
during 2021
 
while capturing
 
over 40%

of deposits through digital and self-service channels.

Our
 
results
 
of
 
operations
 
for the
 
year
 
of
 
2021
 
continue
 
to reflect
 
an
 
improvement
 
from
 
the
 
disruption
 
caused
 
by
 
the COVID-19

pandemic. However,
 
we maintain a
 
cautious view
 
of the
 
macroeconomic outlook
 
due to
 
continuing uncertainty
 
regarding the
 
pace of

recovery
 
in the
 
economy and
 
uncertainty
 
related to
 
the COVID-19
 
pandemic,
 
including the
 
emergence
 
of new
 
variants of
 
the virus,

such as
 
the Omicron
 
variant, which
 
appears to
 
be the
 
most transmissible
 
variant to
 
date. Uncertainties
 
associated with
 
the pandemic

include
 
the
 
duration
 
of
 
the
 
COVID-19
 
outbreak
 
and
 
any
 
related
 
infections,
 
including
 
those
 
from
 
new
 
variants
 
of
 
the
 
virus,
 
the

47

effectiveness of
 
COVID-19 vaccines,
 
vaccination rates
 
among the
 
population, the
 
impact on
 
our customers,
 
employees,
 
and vendors,

and the impact to the economy as a whole.

The
 
CARES
 
Act
 
or
 
“CARES
 
Act
 
of
 
2020”,
 
as
 
amended
 
by
 
the
 
Consolidated
 
Appropriations
 
Act,
 
2021,
 
included
 
an allocation
 
of

$659
 
billion
 
for
 
SBA PPP
 
loans.
 
SBA
 
PPP loans
 
are
 
forgivable,
 
in
 
whole
 
or in
 
part,
 
if the
 
proceeds
 
are
 
used for
 
payroll and
 
other

permitted
 
purposes in
 
accordance
 
with the
 
requirements
 
of the
 
program.
 
These loans
 
carry a
 
fixed
 
rate of
 
1.00% and
 
a term
 
of two

years
 
(loans
 
made
 
before
 
June
 
5,
 
2020)
 
or
 
five
 
years
 
(loans
 
made
 
on
 
or
 
after
 
June
 
5,
 
2020),
 
if
 
not
 
forgiven,
 
in
 
whole
 
or
 
in
 
part.

Payments are
 
deferred until either
 
the date on
 
which the SBA
 
remits the amount
 
of forgiveness proceeds
 
to the lender
 
or the date
 
that

is 10
 
months after
 
the last
 
day of
 
the covered
 
period if
 
the borrower
 
does not
 
apply for
 
forgiveness within
 
that 10-month
 
period. On

December
 
27,
 
2020,
 
President
 
Trump
 
signed
 
another
 
COVID-19
 
relief
 
bill
 
that
 
extended
 
and
 
modified
 
several
 
provisions
 
of
 
the

program.
 
This
 
included
 
an
 
additional
 
allocation
 
of
 
$284
 
billion.
 
The
 
SBA
 
reactivated
 
the
 
program
 
on
 
January
 
11,
 
2021
 
and
 
the

program ended on May 31, 2021.

As
 
of
 
December
 
31,
 
2021,
 
the
 
Corporation’s
 
SBA
 
PPP
 
loan
 
portfolio
 
amounted
 
to
 
$145.0
 
million,
 
net
 
of
 
unearned
 
fees
 
of
 
$7.9

million.
 
As applicable,
 
the unearned
 
fees are
 
accreted
 
into income
 
based
 
on the
 
contractual period
 
of
 
two or
 
five years.
 
Upon
 
SBA

forgiveness,
 
unamortized
 
fees
 
are
 
then
 
recognized
 
into
 
interest
 
income.
 
During
 
the
 
years
 
ended
 
December
 
31,
 
2021
 
and
 
2020,
 
the

Corporation
 
received
 
forgiveness
 
remittances
 
and
 
consumer
 
payments
 
related
 
to
 
approximately
 
$543.6
 
million
 
and
 
$48.9
 
million,

respectively,
 
in principal balance of
 
SBA PPP loans. As
 
of December 31,
 
2021, we have processed
 
forgiveness to approximately
 
80%

of our customers.
 
Forgiveness remittances in the year ended 2021 accelerated
 
the fee income recognition by $13.2 million.

Total
 
deposits, excluding
 
brokered deposits
 
and government
 
deposits, continued
 
to increase
 
and were
 
$14.2
 
billion as
 
of December

31,
 
2021,
 
an
 
increase
 
of
 
$1.4
 
billion
 
from
 
December
 
31,
 
2020.
 
In
 
addition,
 
government
 
deposits
 
increased
 
by
 
$1.2
 
billion
 
to
 
$3.3

billion as of December 31, 2021,
 
compared to $2.1 billion as of December
 
31, 2020. The strong growth in deposits
 
continues to reflect

the effect
 
of government
 
relief programs
 
on the
 
liquidity levels
 
of our
 
customers, including
 
increases in
 
the balance
 
of transactional

accounts
 
of municipalities
 
in Puerto
 
Rico and
 
the local
 
government
 
of the
 
USVI in
 
connection
 
with the
 
American
 
Rescue Plan
 
Act

(“ARPA”)
 
funding for states and local
 
governments. Our liquidity levels
 
and capital position remain strong,
 
with capital ratios that are

well
 
above
 
regulatory
 
requirements.
 
This
 
robust
 
liquidity
 
and
 
capital
 
levels
 
provide
 
us
 
with
 
significant
 
flexibility
 
to
 
maintain
 
the

strength
 
of
 
our
 
balance
 
sheet
 
and
 
return
 
capital
 
to
 
shareholders
 
through
 
share
 
repurchases
 
and
 
dividend
 
payments,
 
subject
 
to

regulatory considerations.

During
 
2021
 
economic
 
conditions
 
started
 
to
 
show
 
significant
 
signs
 
of
 
recovery,
 
which
 
included
 
improved
 
consumer
 
demand

evidenced by rise
 
in retail sales, auto
 
and home sales
 
and recovery in
 
the payroll employment
 
in Puerto Rico
 
where it reached
 
98% of

the
 
pre-pandemic
 
level. The
 
early
 
signs of
 
economic
 
recovery have
 
impacted positively
 
the
 
Corporation
 
which
 
among
 
other
 
things,

during
 
2021 grew
 
total loan
 
originations
 
by approximately
 
17% when
 
compared
 
to 2020
 
and
 
is reflecting
 
a strong
 
commercial
 
loan

pipeline. Additionally,
 
on January 27,
 
2022, the PROMESA
 
oversight board certified
 
the 2022 Fiscal Plan
 
for Puerto Rico
 
(the “2022

Fiscal Plan”).
 
The 2022
 
Fiscal Plan reflects
 
the Commonwealth
 
Plan of Adjustment
 
recently confirmed
 
by the U.S.
 
District Court for

the District of
 
Puerto Rico. Relative to
 
the previous fiscal
 
plan, the 2022 Fiscal
 
Plan incorporates a
 
new set of expenditure
 
projections

that
 
factor
 
in
 
the
 
now-established
 
debt
 
service
 
requirements
 
pursuant
 
to
 
the
 
Plan
 
of
 
Adjustment,
 
as
 
well
 
as
 
additional
 
investments

enabled
 
by
 
the
 
increased
 
resources
 
available
 
to
 
the
 
government.
 
The
 
2022
 
Fiscal
 
Plan
 
prioritizes
 
resource
 
allocations
 
across
 
three

major
 
themes:
 
(i)
 
investing
 
in
 
the
 
operational
 
capacity
 
of
 
the
 
government
 
to
 
deliver
 
services
 
with
 
Civil
 
Service
 
Reform,
 
(ii)

prioritizing obligations to current and future retirees, and (iii) creating
 
a fiscally responsible post-bankruptcy government.

Integration
 
of BSPR

During the
 
year ended
 
December 31, 2021,
 
the Corporation completed
 
the conversion
 
of all BSPR’s
 
core systems into
 
FirstBank’s

systems.
 
In
 
conjunction
 
with
 
the
 
conversion
 
of
 
BSPR’s
 
core
 
systems,
 
the
 
Corporation
 
had
 
consolidated
 
a
 
total
 
of
 
nine
 
banking

branches
 
and
 
the
 
Corporation
 
decided
 
late
 
during
 
the
 
fourth
 
quarter
 
of
 
2021
 
to
 
consolidate
 
four
 
additional
 
branches,
 
which
 
are

expected to be completed during the first half of 2022.

In
 
addition,
 
during
 
the
 
year
 
ended
 
December
 
31,
 
2021,
 
the
 
Corporation
 
continued
 
to
 
execute
 
in
 
reducing
 
personnel
 
and
 
service

contract
 
expenses
 
and
 
completing
 
other
 
business
 
rationalization
 
activities.
 
Cumulative
 
merger
 
and
 
restructuring
 
expenses
 
of
 
$64.4

million have been incurred through December
 
31, 2021, of which $26.4 million
 
was incurred during 2021. The total amount
 
of merger

and
 
restructuring
 
costs
 
related
 
to
 
the
 
BSPR acquisition
 
was
 
originally
 
estimated
 
to
 
be
 
approximately
 
$65
 
million.
 
The
 
Corporation

does not expect any
 
additional significant merger
 
and restructuring expenses
 
during 2022. The Corporation
 
also has estimated that
 
the

combined
 
entities
 
will
 
achieve
 
total
 
annual
 
pre-tax
 
savings
 
of
 
approximately
 
$49
 
million,
 
which
 
are
 
expected
 
to
 
be
 
fully
 
realized

during 2022.

LIBOR Transition

Following
 
the
 
2017
 
announcement
 
by
 
the
 
United
 
Kingdom’s
 
Financial
 
Conduct
 
Authority
 
(the
 
“FCA”)
 
that
 
it
 
would
 
no
 
longer

compel
 
participating
 
banks
 
to
 
submit
 
rates
 
for
 
the
 
London
 
Interbank
 
Offered
 
Rate
 
(LIBOR)
 
after
 
2021,
 
regulators
 
and
 
market

48

participants
 
in
 
various
 
jurisdictions
 
have
 
identified
 
recommended
 
replacement
 
rates
 
for
 
LIBOR,
 
and
 
many
 
have
 
published

recommended
 
conventions to
 
allow new
 
and existing
 
products to
 
incorporate
 
fallbacks or
 
that reference
 
these Alternative
 
Reference

Rates
 
(“ARRs”).
 
In
 
March
 
2021,
 
the
 
FCA
 
confirmed
 
that
 
publication
 
of
 
the
 
overnight
 
and
 
one
 
month,
 
three-month,
 
six-month
 
and

twelve-month U.S.
 
Dollar LIBOR settings
 
will cease or
 
become no longer
 
representative of the
 
market the rates
 
seek to measure
 
(i.e.,

non-representative) immediately after June 30, 2023, and all other
 
U.S. Dollar LIBOR settings, including the one week and two-month

U.S. Dollar LIBOR settings,
 
became non-representative
 
after December 31,
 
2021. The Federal
 
Reserve, the Office
 
of the Comptroller

of
 
the
 
Currency,
 
and
 
the
 
FDIC
 
also
 
released
 
supervisory
 
guidance
 
encouraging
 
banks
 
to
 
cease
 
entering
 
into
 
new
 
contracts
 
that
 
use

U.S. Dollar
 
LIBOR as
 
reference
 
rate as
 
soon as
 
practicable and
 
in any
 
event by
 
December 31,
 
2021. Banking
 
regulators in
 
the U.S.

and
 
globally
 
have
 
increased
 
regulatory
 
scrutiny
 
and
 
intensified
 
supervisory
 
focus
 
of
 
financial
 
institutions
 
LIBOR
 
transition
 
plans,

preparations and readiness.

Significant
 
amounts
 
of
 
financial
 
instruments
 
in
 
the
 
market
 
are
 
referenced
 
to
 
U.S.
 
Dollar
 
LIBOR,
 
and
 
any
 
inability
 
of
 
market

participants
 
and
 
regulators
 
to
 
successfully
 
introduce
 
benchmark
 
rates
 
to
 
replace
 
LIBOR
 
and
 
implement
 
effective
 
transitional

arrangements to
 
address the
 
discontinuation of
 
LIBOR could
 
result in
 
disruption in
 
the financial
 
markets. In
 
the U.S.,
 
the Alternative

Reference Rates
 
Committee (“ARRC”),
 
a group
 
of market
 
participants convened
 
by the
 
Federal Reserve,
 
recommended the
 
Secured

Overnight Financing
 
Rate (“SOFR”) as
 
a replacement
 
index for U.S.
 
Dollar LIBOR-indexed
 
contracts. SOFR is
 
an overnight
 
interest

rate based
 
on U.S.
 
Dollar Treasury
 
repurchase agreements.
 
On March
 
2, 2020
 
the New
 
York
 
Fed began
 
daily publication
 
of 30,
 
90,

and 180-day compound
 
historical averages of
 
SOFR. In addition,
 
the ARRC has developed
 
a detailed supporting framework
 
for using

SOFR, including
 
tools such
 
as fallbacks
 
and recommended
 
conventions for
 
new use
 
of SOFR in
 
various products.
 
On July
 
29, 2021,

the ARRC
 
formally
 
recommended the
 
Chicago Mercantile
 
Exchange Group’s
 
(“CME”) forward-looking
 
Term
 
SOFR rates
 
for one
 
-,

three-,
 
six-
 
and
 
twelve-month
 
tenors,
 
marking
 
the
 
final
 
step
 
in
 
the
 
ARRC’s
 
Paced
 
Transition
 
Plan
 
it
 
released
 
in
 
2017.
 
The
 
ARRC

recommended using
 
the CME’s
 
Term
 
SOFR rates
 
for cash
 
products and
 
derivatives, limited
 
to end-users
 
hedging cash
 
products. An

end-user is
 
described as
 
any counterparty
 
to the underlying
 
cash product,
 
such as a
 
borrower,
 
lender, or
 
guarantor.
 
These parties
 
may

enter into Term
 
SOFR rates swaps, caps, swaptions,
 
or other derivatives to
 
hedge cash product exposures.
 
The Corporation may offset

such exposure with an upstream dealer.

The
 
Corporation
 
continues
 
to
 
execute
 
its
 
LIBOR
 
Transition
 
workplan.
 
As
 
part
 
of
 
this
 
transition
 
plan,
 
the
 
Corporation
 
started

including fallback language on new and renewed
 
contracts tied to LIBOR to provide for the determination
 
of an ARR and had adhered

to the LIBOR Fallbacks Protocol of the International
 
Swaps and Derivatives Association. In addition, effective
 
December 31, 2021 the

Corporation discontinued entering
 
into new contracts that
 
use the use U.S. Dollar
 
LIBOR as reference rate.
 
Currently,
 
the Corporation

is primarily
 
offering
 
CME’s
 
Term
 
SOFR rate
 
as the
 
ARRs to
 
LIBOR. The
 
Bank may
 
also offer
 
other industry-accepted
 
benchmark

interest
 
rates
 
that
 
can
 
be
 
supported
 
for
 
commercial
 
transactions.
 
The
 
Corporation
 
continues
 
working
 
with
 
the
 
update
 
of
 
systems,

processes, documentation, and models, with additional updates expected
 
through 2023.

As of
 
December 31,
 
2021, the
 
most significant
 
of the
 
Corporation’s
 
LIBOR-based assets
 
and liabilities
 
consists of
 
$2.0 billion
 
of

variable rate
 
commercial and
 
construction loans,
 
approximately $58.4
 
million of
 
U.S. agencies
 
debt securities
 
and private
 
label MBS

held as part of
 
the Corporation’s
 
available-for-sale investment
 
securities portfolio, $134.4
 
million of Puerto Rico
 
municipalities bonds

held
 
as
 
part
 
of
 
the
 
Corporation’s
 
held-to-maturity
 
investment
 
securities
 
portfolio,
 
and
 
$183.8
 
million
 
of
 
junior
 
subordinated

debentures.

The Corporation
 
is monitoring
 
the development
 
and adoption
 
of SOFR
 
and
 
other
 
credit sensitive
 
ARRs and
 
their liquidity
 
in the

market. The manner and impact
 
of the transition from LIBOR to
 
an ARR, as well as the effect
 
of these developments on our
 
loans and

investment securities portfolios, asset-liability management, systems, processes,
 
and business, is uncertain.

49

OVERVIEW OF RESULTS
 
OF OPERATIONS

First
 
BanCorp.'s
 
results
 
of
 
operations
 
depend
 
primarily
 
on
 
its
 
net
 
interest
 
income,
 
which
 
is
 
the
 
difference
 
between
 
the
 
interest

income
 
earned
 
on
 
its
 
interest-earning
 
assets,
 
including
 
investment
 
securities
 
and
 
loans,
 
and
 
the
 
interest
 
expense
 
incurred
 
on
 
its

interest-bearing
 
liabilities,
 
including
 
deposits
 
and
 
borrowings.
 
Net
 
interest
 
income
 
is
 
affected
 
by
 
various
 
factors,
 
including:
 
(i)
 
the

interest rate environment;
 
(ii) the volumes, mix,
 
and composition of interest-earning
 
assets and (iii) interest-bearing
 
liabilities; and the

re-pricing characteristics
 
of these assets
 
and liabilities.
 
The Corporation's
 
results of operations
 
also depend
 
on the provision
 
for credit

losses,
 
non-interest
 
expenses
 
(such
 
as
 
personnel,
 
occupancy,
 
the
 
deposit
 
insurance
 
premium
 
and
 
other
 
costs),
 
non-interest
 
income

(mainly
 
service
 
charges
 
and
 
fees
 
on
 
deposits,
 
and
 
insurance
 
income),
 
gains
 
(losses)
 
on
 
sales
 
of
 
investments,
 
gains
 
(losses)
 
on

mortgage banking activities, and income taxes.

The
 
Corporation
 
had
 
net
 
income
 
of
 
$281.0
 
million,
 
or
 
$1.31
 
per
 
diluted
 
common
 
share,
 
for
 
the
 
year
 
ended
 
December
 
31,
 
2021,

compared to
 
$102.3 million,
 
or $0.46
 
per diluted
 
common share,
 
for the
 
year ended
 
December 31,
 
2020. The
 
Corporation completed

the acquisition
 
of BSPR effective
 
September 1,
 
2020.
 
The Corporation’s