26 slides from First Bancorp. New's earnings presentation, Jan 29, 2016
Slide 1: Financial Results FYE 2015 & 4Q 2015
Financial Results FYE 2015 & 4Q 2015
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
Agenda Fiscal Year & Fourth Quarter 2015 Highlights Aurelio Alemán, President & Chief Executive Officer Fiscal Year & Fourth Quarter 2015 Results of Operations Orlando Berges, Executive Vice President & Chief Financial Officer Questions & Answers 3
Slide 4: Fiscal Year 2015 & Fourth Quarter Results Key Highlights
Fiscal Year 2015 & Fourth Quarter Results Key Highlights 4
Slide 5: Fiscal Year 2015 Highlights
Fiscal Year 2015 Highlights During 2015 the Corporation achieved significant milestones in its successful turnaround strategy: Recognized an income tax benefit of $302.9 million in the Q4 2014 related to the reversal of a significant portion of the valuation allowance recorded against the deferred t
Slide 6: Fourth Quarter 2015 Highlights: Profitability, Asset Quality, Core Deposits
6 Profitability RNet income of $15.0 million, or $0.07 per diluted share, compared to $14.8 million in 3Q 2015. Net interest income & non interest income (excluding one time items) increased compared to 3Q 2015. Adjusted pre-tax, pre-provision income of $50.6 million, compared to $50.5 million for 3
Slide 7: Loan Originations and Loan Portfolio
7 Loan Originations* ($ millions) Loan Portfolio ($ millions) 3,011 3,332 3,328 3,330 3,345 1,983 1,937 1,899 1,862 1,827 123 124 121 164 156 4,145 4,092 3,870 3,946 3,946 77 82 80 35 36 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015$9,339 $9,567 154 153 197 179 174 235 221 235 234 231 12 9 14 4 4 490 398
Slide 8: Total Deposit Composition and Core Deposits
8 Total Deposit Composition (%) Core Deposits* ($ millions) 2,841 3,203 3,139 3,079 3,081 1,263 1,390 1,346 1,438 1,360 2,092 2,225 2,194 2,189 2,227 401 451 495 743 573 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 * Core deposits are total deposits excluding brokered CDs. $6,597 $7,269 Interest Bearing
Slide 9: Fourth Quarter 2015 Highlights: PR Government Exposure
9 Fourth Quarter 2015 Highlights: PR GOVERNMENT EXPOSURE Total outstanding exposure to the Puerto Rico Government was $382 million with a book value of $361 million as of 4Q 2015, down from $371 million as of 3Q 2015. Investment portfolio outstanding principal of $65.6 million, being carried on book
Slide 10: Fourth Quarter Results of Operations
10 Fourth Quarter ResultsResults of Operations
Slide 11: Fourth Quarter Financial Highlights
11 Results of Operations: FOURTH QUARTER FINANCIAL HIGHLIGHTS ($ in thousands, except per share data) Select Financial Information 4Q 20153Q 2015Variance4Q 2014Interest income151,640$ 149,812$ 1,828$ 158,293$ Interest expense26,427 24,883 1,544 29,141 Net interest income125,213 124,929 284 129,152 P
Slide 12: Key Highlights: Net Interest Income
12 Key Highlights Net Interest Income ($ millions) $129.2 $125.6 $126.5 $124.9 $125.2 4.18% 4.18% 4.18% 4.19% 4.07% 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Net Interest Income ($) Net Interest Margin (GAAP %) Net interest income increased $0.3 million in 4Q 2015. This increase was mainly due to: oA
Slide 13: Key Highlights: Cost of Deposits
13 Key Highlights Cost of Deposits (%) 0.81% 0.77% 0.73% 0.74% 0.75% 0.70% 0.66% 0.61% 0.61% 0.62% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Interest Bearing Deposits (%) Total Deposits (%) Cost of total deposits, excluding brokered CDs, increased 1 basis point to 0
Slide 14: Key Highlights: Non-Interest Income
14 Key Highlights Non-Interest Income* ($ millions) 4.2 4.6 5.2 5.1 5.5 4.5 3.6 4.8 4.3 4.6 9.3 11.1 10.1 9.4 9.2 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Other Mortgage Banking Service Charges on Deposits* Non interest income excludes equity losses of unconsolidated entities, OTTI, HFS bulk sale imp
Slide 15: Operating Expenses
15 Results of Operations: OPERATING EXPENSES Non-interest expenses increased by $2.7 million in 4Q 2015 to $96.0 million. Excluding non-recurring expense of 2.2 million related to the voluntary early retirement program reflected in employees’ compensation and benefits, non-interest expenses increase
Slide 16: Non-Performing Assets
16 Non-Performing Assets ($ millions) Total non-performing loans, including non-performing loans held for sale, decreased by $29.8 million, or 6%. NPAs declined $7.3 million in 4Q 2015. New non-performing loan inflows amounted to $42.0 million compared to inflows of $50.8 million in 3Q 2015. NPAs de
Slide 17: Key Highlights: Net Charge-Offs
17 Key Highlights Net Charge-Offs ($ millions) 7 5 3 5 5 19 16 11 14 12 2 8 62 5 5 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Residential Consumer Commercial Construction$22 Total net charge-offs for 3Q 2015 were $22 million, or 0.95% of average loans, compared to $24 million in 3Q 2015. Allowance cove
Slide 18: Fiscal 2015 Financial Highlights
18 Results of Operations: FISCAL 2015 FINANCIAL HIGHLIGHTS ($ in thousands, except per share data) Select Financial Information FY 2015FY 2014VarianceInterest income605,569$ 633,949$ (28,380)$ Interest expense103,303 115,876 (12,573) Net interest income502,266 518,073 (15,807) Provision for loan and
Slide 19: Non-GAAP Adjusted Pre-Tax Income
19 ($ in millions) Select Financial Information Results of Operations: NON-GAAP ADJUSTED PRE-TAX INCOME FYE 2015FYE 2014Pre-tax GAAP Income27.7$ 91.6$ Adjustments for Items not arising from normal operations & certain unusual items:Net interest income: Prepayment penalty collected- (2.5) (2.5) Provi
Slide 20: Capital Position
20 Results of Operations: CAPITAL POSITION Capital Ratios (%) Total stockholders’ equity amounted to $1.7 billion as of December 31, 2015, a decrease of $6.8 million from September 30, 2015, mainly driven by a decrease of $23.1 million in other comprehensive income mainly attributable to the $20.5 m
Slide 21: Fiscal Year 2015 & Fourth Quarter Results Q & A
21 Fiscal Year 2015 & Fourth Quarter Results Q & A
Slide 22: Fourth Quarter Results Exhibits
22 Fourth Quarter Results exhibits
Slide 23: Key Margin Drivers
23 Results of Operations: KEY MARGIN DRIVERS Q4 vs. Q3 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations $ Δ in % Δ in AverageAverageVolumeRateAverage total investments380,935$ 0.07%2,468$ Average loans & leases:Residential
Slide 24: NPLs Held for Investment - Migration
24 NPLS HELD FOR INVESTMENT - MIGRATION Residential MortgageCommercial MortgageCommercial & IndustrialConstructionConsumerTotalBeginning balance174,555$ 68,979$ 141,855$ 55,971$ 31,275$ 472,635$ Plus: Additions to non-performing20,154 4,298 3,409 401 13,779 42,041 Less: Non-performing loans transfer
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
Slide 26: Use of Non-GAAP Financial Measures
26 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