First Bancorp. New · NYSE:FBP

First Bancorp. New — First Bancorp — Q1 2015 Earnings Presentation

26 slides from First Bancorp. New's earnings presentation, May 5, 2015

  1. Slide 1: Financial Results 1Q 2015

    Financial Results 1Q 2015

  2. Slide 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,” “should,” “believes” and s

  3. Slide 3: First Quarter 2015 Highlights and Results of Operations

     First Quarter 2015 Highlights Aurelio Alemán, President & Chief Executive Officer  First Quarter 2015 Results of Operations Orlando Berges, Executive Vice President & Chief Financial Officer  Questions & Answers

  4. Slide 4: First Quarter Results: Key Highlights

    First Quarter Results Tan Bancorp | Key Highlights

  5. Slide 5: Doral Bank acquisition, DFAST and Consent Order termination

     On February 27, 2015, FirstBank acquired, in alliance with other bidders, certain assets and deposits from the FDIC, as receiver for Doral Bank. — The transaction included 10 branches, approximately $523 million in deposits, a performing residential mortgage loan portfolio of approximately $325 mi

  6. Slide 6: Profitability and Asset Quality

    Profitability  Net income of $25.6 million, or $0.12 per diluted share, which included a bargain purchase gain on assets acquired and deposits assumed from Doral Bank.  During 1Q 2015 net interest margin improved 9 basis points to 4.18%.  Pre-tax, pre-provision income of $55.4 million compared to

  7. Slide 7: Loan Portfolio and Loan Originations

    Loan Portfolio ($ millions) Loan Originations* ($ millions) 2,548 2,795 2,820 3,011 3,332 2,072 2,062 2,027 1,983 1,937 153 148 142 123 124 4,794 4,461 4,327 4,145 4,092 79 72 80 77 82 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 $9,646 $9,538 $9,396 $9,339 $9,567 151 161 169 154 153 275 272 245 235 221

  8. Slide 8: Core Deposits and Total Deposit Composition

    Core Deposits* ($ millions) Total Deposit Composition (%) 2,860 2,812 2,814 2,841 3,203 1,201 1,174 1,246 1,263 1,390 2,073 2,108 2,111 2,092 2,225 742 440 469 401 451 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 $6,876 * Core deposits are total deposits excluding brokered CDs. $6,534 $6,640 $6,597 $7,26

  9. Slide 9: First Quarter 2015 Highlights: PR Government Exposure

    First Quarter 2015 Highlights: PR GOVERNMENT EXPOSURE  Total asset exposure to the Puerto Rico Government was $404 million of which $387 million was outstanding as of March 31, 2015.  In addition, there is $133 million of indirect exposure to the Tourism Development Fund supporting hotel projects.

  10. Slide 10: First Quarter Results: Results of Operations

    First Quarter Results Tan Bancorp | Results of Operations

  11. Slide 11: First Quarter Financial Highlights

    Results of Operations: FIRST QUARTER FINANCIAL HIGHLIGHTS ($ in thousands, except per share data) Select Financial Information 1Q 2015 4Q 2014 Variance 1Q 2014 Interest income $ 152,485 $ 158,293 $ (5,808) $ 160,571 Interest expense 26,838 29,141 (2,303) 29,251 Net interest income 125,647 129,152 (3

  12. Slide 12: First Quarter Financial Highlights: Doral transaction adjusted

    Results of Operations: FIRST QUARTER FINANCIAL HIGHLIGHTS ($ in thousands, except per share data) Select Financial Information (1) Assuming a 39% statutory tax rate. 1Q 2015 Doral Transaction Adjusted 1Q 2015 Interest income $ 152,485 $ 1,662 $ 150,823 Interest expense 26,838 332 26,506 Net interest

  13. Slide 13: Net Interest Income

    13 Net Interest Income ($ millions) Key Highlights $131.3 $129.9 $127.7 $129.2 $125.6 4.27% 4.21% 4.14% 4.18% 4.18% 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Net Interest Income ($) Net Interest Margin (GAAP %)  Net interest income declined $3.5 million in 1Q 2015. 4Q included a $2.5 million prepayme

  14. Slide 14: Cost of Deposits

    Cost of Deposits (%) Key Highlights 0.87% 0.82% 0.83% 0.81% 0.76% 0.77% 0.72% 0.72% 0.70% 0.66% 0.60% 0.70% 0.80% 0.90% 1.00% 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Interest Bearing Deposits (%) Total Deposits (%)  Cost of total deposits, excluding brokered CDs, declined to 0.66%.  The average ra

  15. Slide 15: Non-Interest Income

    Non-Interest Income* ($ millions) Key Highlights 4.1 4.2 4.2 4.2 4.6 3.4 3.0 3.8 4.5 3.6 10.5 9.3 8.2 9.3 11.1 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Other Mortgage Banking Service Charges on Deposits * Non interest income excludes equity losses of unconsolidated entities and bargain purchase gain.

  16. Slide 16: Operating Expenses

    Results of Operations: OPERATING EXPENSES  A $1.8 million decrease in credit related expenses due to gain on sales of OREO and a decrease in professional fees related to legal services, collections and other fees related to troubled loan resolution.  A $1.8 million increase in compensation and ben

  17. Slide 17: Non-Performing Assets

    Non-Performing Assets ($ millions) 1,639 1,551 1,506 1,239 1,233 1,208 1,184 1,138 1,119 1,066 1,008 976 683 506 498 496 522 565 560 524 564 150 150 163 163 172 176 188 194 213 242 251 260 256 151 147 175 154 138 130 138 136 159 148 95 80 55 55 55 55 55 55 9.5% 10.0% 9.3% 10.2% 10.2% 9.6% 8.4% 5.7%

  18. Slide 18: Net Charge-Offs

    Net Charge-Offs ($ millions) Key Highlights 6 5 6 7 5 17 17 18 19 16 28 28 15 2 8 3 3 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Residential Consumer Commercial Construction $51  Total net charge-offs for 1Q 2015 were $29 million, or 1.25% of average loans, compared to $27 million in 4Q 2014.  Allowa

  19. Slide 19: Capital Position

    Results of Operations: CAPITAL POSITION Capital Ratios (%)  Total stockholders’ equity amounted to $1.7 billion as of March 31, 2015, an increase of $34 million from December 31, 2014 attributable to net income of $25.6 million and an increase of $7.1 million in other comprehensive income due to th

  20. Slide 20: Q&A

    First Quarter Results Tan Bancorp | Q&A

  21. Slide 21: Exhibits

    First Quarter Results Tan Bancorp | Exhibits

  22. Slide 22: Net Interest Income Changes: Q1 vs. Q4

    Q1 vs. Q4 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations $  in %  in Average Average Volume Rate Average total investments $ 4 3,940 0.12% $ 768 Average loans & leases: Residential mortgage loans 108,966 0.08% 1 ,175 Co

  23. Slide 23: Non-Performing Loans Migration

    Results of Operations: MIGRATION Residential Mortgage Commercial Mortgage Commercial & Industrial Construction Consumer Total Beginning balance $ 180,707 $ 148,473 $ 122,547 $ 29,354 $ 42,815 $ 523,896 Plus: Additions to non-performing 19,213 5,802 79,503 128 14,079 118,725 Less: Non-performing loan

  24. Slide 24: Use of Non-GAAP Financial Measures: Tangible Common Equity

    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

  25. Slide 25: Use of Non-GAAP Financial Measures: Tier 1 Common Equity

    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

  26. Slide 26: Use of Non-GAAP Financial Measures: Adjusted Pre-Tax, Pre-Provision Income

    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

First Bancorp — Q1 2015 Earnings Presentation on 6ix