First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (August 2022)
28 slides from First Bancorp. New's investor presentation, Aug 4, 2022
Slide 1: Investor Presentation August 2022
Investor PresentationAugust 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Corporation’s future economic, operational and financial performance and can be identified by the words or phr
Slide 3: Investment Merits
Investment Merits Strong Market Position & Scalable Platform Fully integrated and expanded franchise with a strong market position in a consolidated market with opportunities for enhanced market penetration while serving over 690,000 customers Fortress Balance Sheet Liquidity, reserve coverage, and
Slide 4: Franchise Overview
Franchise Overview Founded in Puerto Rico in 1948 Headquartered in San Juan, Puerto Rico with operations in Eastern Caribbean and Florida Second largest financial company in PR, with an attractive business mix and substantial loan market share in retail and commercial lending segments Florida presen
Slide 5: Puerto Rico Market Share
Puerto Rico Market Share* TOTAL LOANS 2ND CORE DEPOSITS 3% COMMERCIAL LENDING AUTO & LEASING 2ND 2ND 2ND CREDIT CARDS 2% SMALL LOANS (<$5K) PERSONAL LOANS ATM TERMINALS (#) BRANCHES ACH TRANSACTIONS (#) POS TRANSACTIONS ($) MORTGAGE ORIGINATIONS 3% 2ND 2ND 2ND 2ND 2ND 2ND 3RD 2ND FirstBank Peers Gap
Slide 6: Fortress Balance Sheet
Fortress Balance Sheet Note: Peer group consists of U.S. banks with assets between $10 billion and $25 billion. Top quartile as of 1Q 2022 as per S&P Global Market Intelligence. 2Q22 2Q21 3Q21 4Q21 1Q22 Top Quartile Peer 2Q22 2Q21 Top Quartile Peer 3Q21 1Q22 4Q21 Top Quartile Peer 2Q22 4Q21 3Q21 2Q2
Slide 7: Financial Review
Financial ReviewSecond Quarter 2022 Financial Results
Slide 8: Operating Environment and Franchise Highlights
Second Quarter 2022Operating Environment and Franchise Highlights Core Franchise Highlights Record pre-tax pre-provision income of $118.8 million, up 6.2% vs 1Q 2022 and 22.9% vs 2Q 2021 Linked quarter loan growth of $144 million net of PPP; strategically grew all targeted portfolios and registered
Slide 9: Performance Highlights
Second Quarter 2022Performance Highlights Profitability Net income of $74.7 million ($0.38 per diluted share) compared to $82.6 million ($0.41 per diluted share) in 1Q 2022 Income before income taxes of $108.8 million, compared to $125.6 million in 1Q 2022 On a non-GAAP basis, adjusted pre-tax, pre-
Slide 10: Balance Sheet Metrics – Loans and Deposits
Second Quarter 2022balance Sheet Metrics – Loans and Deposits Total loans grew by $103.9 million to $11.2 billion driven by an increase of $130.7 million in consumer loans and $18.5 million in commercial and construction loans, partially offset by an $45.3 million reduction in residential mortgage l
Slide 11: Discussion of Results: Income Statement and Selected Financial Data
Second Quarter 2022 HighlightsDiscussion of Results Income Statement Selected Financial Data
Slide 12: Profitability Dynamics: Net Interest Income
Second Quarter 2022 HighlightsProfitability Dynamics Net Interest Income ($MM) Non-Interest Income ($MM) 3.81% 3.60% 2Q21 3.61% 3Q21 4Q21 1Q22 3.81% 4.00% 2Q22 Net Interest Income ($) Net Interest Margin (GAAP %) Net interest income increased by 5.7% to $196.2 million, compared to $185.6 million in
Slide 13: Profitability Dynamics: Non-Interest Expenses
Second Quarter 2022 HighlightsProfitability Dynamics 100 125 110 -5 105 120 135 0 115 60 65 95 130 70 85 75 80 90 2Q22 3Q21 1Q22 $106.7 $108.3 $1.9 $130.2 $111.5 $68.5 2Q21 -$0.8 $2.3 $62.4 -$0.8 $60.7 4Q21 $0.2 -$0.4 $0.0 $56.9 $0.0 $57.4 $114.0 Other Operating Expenses Payroll Related Credit Relat
Slide 14: Asset Quality
Second Quarter 2022 Highlightsasset Quality Non-Performing Assets ($ in Millions) $158 1.20% 2Q21 0.81% 0.76% 3Q21 $147 4Q21 0.79% 1Q22 0.76% 2Q22 $256 $172 $156 Repossessed Assets and Other NPAs/Assets Loans HFI $6 $10 $9 $6 2Q 2021 $158 $11 $10 3Q 2021 $3 4Q 2021 $3 1Q 2022 $10 $2 2Q 2022 $156 $25
Slide 15: ACL Levels and Capital Position
Second Quarter 2022 HighlightsACL Levels and Capital Position Total stockholders’ equity amounted to $1.6 billion as of 2Q 2022, a decrease of $223.2 million from 1Q 2022; decrease was driven by: (1) the repurchase of 7.07 million of shares of common stock for a total purchase price of approximately
Slide 16: Exhibits and Non-GAAP Financial Measures
Exhibits and Non-GAAP Financial Measures
Slide 17: Puerto Rico Government Exposure
Second Quarter 2022 HighlightsPuerto Rico Government Exposure ($ in millions) As of 2Q 2022, the Corporation had $353.2 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $356.8 million as of 1Q 2022 88% of direct government exposure is
Slide 18: NPL Migration
Second Quarter 2022 Highlights NPL Migration
Slide 19: Use of Non-GAAP Financial Measures
Second Quarter 2022 HighlightsUse of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes they will be helpful to an understanding of the Corporation’
Slide 20: Use of Non-GAAP Financial Measures
Second Quarter 2022 HighlightsUse of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes they will be helpful to an understanding of the Corporation’
Slide 21: Use of Non-GAAP Financial Measures
Second Quarter 2022 HighlightsUse of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes they will be helpful to an understanding of the Corporation’
Slide 22: Appendix
BanCorp APPENDIX [2
Slide 23: Puerto Rico Disaster Recovery and Pandemic Relief Funding Overview
Puerto Rico Disaster Recovery and Pandemic Relief FundingOverview Disaster Recovery Funding(1) Pandemic Relief Funding(2)(3)(4) (1) Source: Recovery Support Function Leadership Group (RSFLG), https://recovery.fema.gov/rsflg-monthly-data $28,616(45%) $10,730(17%) $18,328(29%) $5,400(9%) Other FEMA Pu
Slide 24: Puerto Rico Recovery Funding: FEMA Funding Overview
Puerto Rico Recovery FundingDisaster Recovery Funds | FEMA Funding Overview(1) $39.3(62%) $18.3(29%) $5.4(9%) FEMA Other HUD Disaster Recovery Obligated Funds FEMA Funding $3.0(8%) $28.6(73%) $7.7(20%) $39.3 Individual Assist. & Other Public Assistance Operations & Admin. $5.7(20%) $22.9(80%) Emerge
Slide 25: Puerto Rico Recovery Funding: HUD's Funding Overview
Puerto Rico Recovery FundingDisaster Recovery Funds | HUD’s Funding Overview $39.3(62%) $18.3(29%) $5.4(9%) FEMA HUD Other Disaster Recovery Obligated Funds $16.5(90%) $0.3(2%) $1.5(8%) Third Allocation (1/27/2020) HUD Funding Second Allocation (8/14/2018) First Allocation (2/9/2018) $18.3 $8.3(45%)
Slide 26: Puerto Rico Labor Market Conditions: Employment Trends
Puerto Rico Labor Market ConditionsEmployment Trends Total Nonfarm Payroll Employment | 5-Year Trend Total Nonfarm Payroll Employment | Month-over-Month Change Sources: U.S. Bureau of Labor Statistics; U.S. Employment and Training Administration In thousands; seasonally adjusted January 2017 – June
Slide 27: Labor Market Conditions: Labor Force and Unemployment Rate
Labor Market ConditionsPuerto Rico | Labor Force and Unemployment Rate Unemployment Rate| 5-Year Trend as of June 2022 Civilian Labor Force and Total Employment| 5-Year Trend Sources: U.S. Bureau of Labor Statistics Household Survey %; seasonally adjusted January 2002 – June 2022 In thousands; seaso
Slide 28: Other Economic Indicators
Other Economic IndicatorsConsumer Confidence and Airport Passenger Activity Sales and Use Tax (millions) Consumer Price Index (%) 5-yr average trend (2016-2020*): 118.4 797 March January February 481 April May 1,010 752 June 683 726 952 888 753 532 747 821 918 766 776 896 944 888 +40.5% +50.8% +22.1