25 slides from First Bancorp. New's earnings presentation, Feb 5, 2015
Slide 1: Financial Results Fourth Quarter & Fiscal Year 2014
1 Financial Results Fourth Quarter & Fiscal Year 2014
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains “forward-looking statements” concerning First BanCorp’s (the “Corporation”) future economic performance. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “expect,” “anticipate,” “look forward
Slide 3: Agenda
3 Agenda Fourth Quarter & Fiscal Year 2014 Highlights: Aurelio Alemán, President & Chief Executive OfficerFourth Quarter 2014 Results of Operations: Orlando Berges, Executive Vice President & Chief Financial Officer Questions & Answers
Slide 4: Fourth Quarter & Fiscal Year 2014 Highlights
4 FOURTH QUARTER & FISCAL YEAR 2014 Highlights
Slide 5: Fiscal Year 2014: Highlights
5 Fiscal Year 2014: Highlights Source: Ipsos Advertising Tracking Study 2nd Wave Oct-Nov 2014 Source: Financial Behavior of Individuals: Puerto Rico Gaither / Inmark Effectively executing strategic plan as we continue to strengthen our core franchise across our three geographies and further de-risk
Slide 6: 4Q14 Highlights: Highest Net Income Quarter Since Return to Profitability
6 4Q14 Highlights: Highest Net Income Quarter Since Return to Profitability Net income of $26.3 million, or $0.12 per diluted share, up 13% compared to $23.2 million in 3Q 2014. During 4Q 2014 Net interest margin decreased by 3 basis points to 4.09%. Pre-tax, pre-provision income of $49.6 million co
Slide 7: Fourth Quarter 2014 Highlights: Loan Portfolio
7 Fourth Quarter 2014 Highlights: Loan Portfolio Origination and renewal activity at $891 million for 4Q 2014 at healthy levels compared to prior quarters: Softening consumer demand persists in our main market. The FL market produced approximately $85 million in commercial origination volume in 4Q c
Slide 8: Fourth Quarter 2014 Highlights: Deposit Mix
8 Non-brokered deposits, excluding government deposits, increased $25.5 million. The cost of deposits net of brokered declined to 0.70%. Continue to reduce reliance on brokered deposits: 30% of deposits are brokered CDs, a decline of $176.7 million compared to 3Q 2014. ($ in millions) Core Deposits
Slide 9: Fourth Quarter Highlights: PR Government Exposure
9 Total asset exposure to the Puerto Rico Government was $400 million of which $369 million was outstanding as of December 31, 2014, down $8 million compared to 3Q 2014 and over $100 million compared to $470 million 4Q 2013. In addition, there is $133 million of indirect exposure to the Tourism Deve
Slide 10: Fourth Quarter 2014 Results of Operations
10 FOURTH QUARTER 2014 Results of Operations
Slide 11: Fourth Quarter 2014 Financial Highlights: Select Financial Information
11 ($ in thousands, except per share data) Select Financial Information 4Q 2014 3Q 2014 Variance Results of Operations: Fourth Quarter 2014 Financial Highlights 4Q 2013
Slide 12: Net Interest Income
12 Results of Operations: Net Interest Income NIM increased 4 basis points compared to 3Q 14. Net interest income increased $1.5 million in the fourth quarter. Adjusted net interest income, excluding fair value adjustments on derivative instruments of $0.3 million and a $2.5 million prepayment penal
Slide 13: Cost of Funds
13 Results of Operations: Cost of Funds Cost of total deposits, excluding brokered CDs, declined to 0.70%. The average rate paid on non-brokered interest-bearing deposits declined by 2 basis points to 0.81% during the fourth quarter. The average cost of brokered CDs increased 1 basis point while the
Slide 14: Non-interest Income
14 Results of Operations: Non-interest Income* Non-interest income increased $1.7 million compared to 3Q 2014, due to:A $1.0 million increase in other operating income that related to an increase in merchant and POS fees and an increase in insurance commissions; andA $0.7 million increase in revenue
Slide 15: Operating Expenses
15 Results of Operations: Operating Expenses A $0.7 million increase in credit related expenses due to higher legal and collection fees incurred in troubled loan resolution efforts offset by lower REO losses. A $0.3 million increase in credit card processing fees attributable to seasonally higher tr
Slide 16: Asset Quality: Non-performing Assets
16 2010 2011 2012 2013 Results of Operations: Asset Quality NPAs decreased $27.7 million to $717 million in 4Q 2014. Total NPLs decreased $35.6 million primarily attributable to cash collections on non-performing commercial and construction loans, charge-offs, the restoration to accrual status of lo
Slide 17: Net Charge-offs & Allowance Coverage
17 Results of Operations: Net Charge-offs & Allowance Coverage ($ in millions) Total net charge-offs for 4Q 2014 were $27 million, or 1.13% of average loans, down from $43 million in 3Q 2014. Allowance coverage ratio of 2.40% as of December 31, 2014 compared to 2.42% as of September 30, 2014. The sl
Slide 18: Capital Position
18 Results of Operations: Capital Position Total stockholders’ equity amounted to $1.4 billion as of December 31, 2014, an increase of $43.1 million from September 30, 2014 attributable to net income of $26.3 million and an increase of $16.0 million in other comprehensive income due to the fair valu
Slide 19: Fourth Quarter & Fiscal Year 2014 Q&A
19 FOURTH QUARTER & FISCAL YEAR 2014 Q&A
Slide 20: Exhibits
20 EXHIBITS
Slide 21: Fourth Quarter Key Margin Drivers
21 Results of Operations: Fourth Quarter Key Margin Drivers Q4 vs. Q3 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations
Slide 22: Migration
22 Results of Operations: Migration
Slide 23: Use of Non-GAAP Financial Measures
23 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 operati
Slide 24: Use of Non-GAAP Financial Measures
24 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 operati
Slide 25: Use of Non-GAAP Financial Measures
25 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 operat