29 slides from First Bancorp. New's investor presentation, May 4, 2016
Slide 1: First BanCorp Investor Presentation May 2016
First BanCorp Investor Presentation May 2016 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation may contain “forward-looking statements” concerning the Corporation’s future economic performance. The words or phrases “expect,” “anticipate,” “look forward,” “should,” “believes” and similar statements of a future or forward-looking nature that reflect our current views with resp
Slide 3: Investment Thesis: The Value of First BanCorp
Investment Thesis A turn-around story underscored by steady improvement and organic market share gains in the core franchise, operating within a challenging macro environment. Strong, tenured leadership team with a commitment to increasing shareholder value, while fulfilling our vision to be the mos
Slide 4: Franchise Overview
Franchise Overview Founded in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida ~2,675 FTE employees(1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share Florida presence
Slide 5: Strengthening geographic and line of business diversification
Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities. Line of business diversification: Commercial represents 44%, residential represents 36% and consumer represents 20% of the total
Slide 6: Diversified business model across all regions
Diversified business model across all regions Franchise Overview Consumer Banking Mortgage Banking Commercial Lending Focus on small to middle market commercial and corporate borrowers across FBP’s footprint. Complimented by full suite of deposit and business products. Balanced risk/return profile t
Slide 7: Well positioned Puerto Rico institution in a consolidating market
Franchise Overview Well positioned Puerto Rico institution in a consolidating market Source: PR Market Share Report prepared with data provided by the Commissioner of Financial Institutions of Puerto Rico as of 12/31/15. 1) Puerto Rico only. 2) Calculated as institution bank branches within a mile o
Slide 8: Executing for Earnings Growth
Executing for Earnings Growth Puerto Rico Market Share Puerto Rico Opportunities for ongoing market share gains Largest opportunity on deposit products, electronic banking & transaction services Growth in selected loan products for balanced risk/return to manage risk concentration and diversify inco
Slide 9: First Quarter 2016 Highlights
First Quarter 2016 Highlights Franchise Overview: Profitability Net income of $23.3 million, or $0.11 per diluted share, compared to $15.0 million in 4Q 2015. Adjusted net income, excluding items that affect comparability, was $25.8 million, compared to $15.1 million in 4Q 2015. Net interest income
Slide 10: Successful core deposit growth
Total Deposit Composition (%) Core Deposits(1) ($ millions) 1) Core deposits are total deposits excluding brokered CDs. Non-brokered deposits, excluding government deposits, increased $137 million in 1Q 2016. Reliance on brokered deposits declined $91 million in 1Q 2016. Puerto Rico non-brokered dep
Slide 11: Geographic Diverse Business Model Sustains Portfolio
Geographic Diverse Business Model Sustains Portfolio 1) Including refinancing and draws from existing revolving and non-revolving commitments. Loan Originations* ($ millions) Loan Portfolio ($ millions) $9,567 $880 $781 Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS
Slide 12: Proactively Managing Asset Quality
Proactively Managing Asset Quality NPA Composition * Net Carrying Amount = % of carrying value net of reserves and accumulated charge-offs. Residential Consumer Construction Commercial Loans HFS REO & Repo $610 $754 $644 $617 Non-Performing Assets ($ millions) Commercial NPLs (Includes HFS) Total no
Slide 13: Proactively Managing Asset Quality: Quarterly Migration Trends
Proactively Managing Asset Quality Quarterly Migration Trends ($ in 000)
Slide 14: Puerto Rico Government Exposure
($ in millions) Puerto Rico Government Exposure ($ in millions) Total outstanding exposure to the Puerto Rico Government was $359 million with a book value of $341 million as of 1Q 2016, down from $361 million as of 4Q 2015. Investment portfolio outstanding principal of $65.6 million with a book val
Slide 15: Stable Core Performance in Challenging Environment
Stable Core Performance in Challenging Environment Pre-tax pre-provision income of $52.6 million1 average 4 quarters of $50 million. Replacement of NPLs with performing loans should reduce provisioning needs. Future earnings potential with a reduction in costs associated with managing NPLs and OREO.
Slide 16: Earnings Continue to Drive Capital Formation
Capital Ratios (%) Total stockholders’ equity amounted to $1.7 billion as of March 31, 2016, an increase of $55.0 million from December 31, 2015, mainly driven by $23.3 million of net income and an increase of $24.6 million in other comprehensive income attributable to fair value of U.S. agency MBS
Slide 17: Stronger Franchise: Proven Success Implementing Strategic Plan
Stronger Franchise: Proven Success Implementing Strategic Plan Our franchise has never been stronger and is poised to increase shareholder value navigating through fiscal and economic challenges. Strong, tenured leadership team with exceptional track record of executing strategic plan during challen
Slide 18: Exhibits
Exhibits
Slide 19: Exhibits
Exhibits Page Stock Profile…………………………………………………………………………………………………………….20 History …………………………………………………………………………………………………………………….21 1Q 2016 Earnings Presentation…………………………………………………………………………………22 Non-GAAP Reconciliations……………………………………………………………………………………….28
Slide 20: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (5/3/16): $3.65 Shares Outstanding (as of March 31, 2016): 217,011,555 Market Capitalization (5/3/16): $792 million 1 Yr. Average Daily Volume: 1,044,823 Price (5/3/16) to Tangible Book (3/31/16): 0.48x Includes the U.S. Treasury warrant t
Slide 21: Company history timeline
June 2010: Written Agreement with the FED and Consent Order with FDIC July 2010: The U.S. Treasury exchanged TARP for convertible preferred August 2010: Exchange of 89% Perpetual Preferred Stock for Common Feb 2011: Sale of non-performing loans with book value of $269 million Feb-April 2011: Sale of
Slide 22: First Quarter Financial Highlights
Results of Operations: First Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 23: Key Highlights: Net Interest Income
Key Highlights Net Interest Income ($ millions) Net interest income decreased $0.6 million in 1Q 2016. This decrease was mainly due to: A $1.0 million decrease in interest income on consumer loans directly attributed to the $35 million reduction in average balance (primarily auto); and A $0.3 millio
Slide 24: Key Highlights: Non-Interest Income
Key Highlights Non-Interest Income* ($ millions) * Non interest income excludes equity losses of unconsolidated entities, OTTI, HFS bulk sale impact and bargain purchase gain. Excluding the $6.7 million OTTI charge on Puerto Rico Government debt securities and the $4.2 million pre-tax gain on the re
Slide 25: Results of Operations: Operating Expenses
Results of Operations: Operating Expenses Non-interest expenses decreased by $3.0 million in 1Q 2016 to $93.0 million. Excluding non-recurring expense of $2.2 million related to the voluntary early retirement program reflected in 4Q 2015 employees’ compensation and benefits, non-interest expenses de
Slide 26: Key Highlights: Net Charge-Offs
Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 1Q 2016 were $24 million, or 1.03% of average loans, compared to $22 million in 4Q 2015. Allowance coverage ratio of 2.61% remained flat compared to 4Q 2015. The ratio of the allowance to NPLs held for investment was 41.4% as of M
Slide 27: Results of Operations: Key Margin Drivers
Results of Operations: Key Margin Drivers Q1 vs. Q4 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations ($ in 000)
Slide 28: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operation
Slide 29: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operation