First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q3 2019 Earnings Presentation
22 slides from First Bancorp. New's earnings presentation, Oct 22, 2019
Slide 1: Financial Results 3Q 2019
Financial Results3Q 2019
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation may contain “forward-looking statements” concerning First BanCorp.’s (the “Corporation”) future economic, operational and financial performance. “Forward-looking statements” include, without limitation, statements relating to the impact the Corporation
Slide 3: Agenda
Agenda Third Quarter 2019 Highlights Aurelio Alemán, President & Chief Executive OfficerThird Quarter 2019 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Third Quarter Highlights
Third Quarter Highlights
Slide 5: Third Quarter Highlights: Profitability, Loan Portfolio, Asset Quality
Profitability 3Q 2019 net income of $46.3 million, or $0.21 per diluted share. Adjusted 3Q 2019 net income of $44.7 million, or $0.20 per diluted share, compared to 2Q 2019 adjusted net income of $40.8 million, or $0.18 per diluted share.Adjusted pre-tax, pre-provision income of $70.2 million, compa
Slide 6: Results of Operations
Results of Operations
Slide 7: Results of Operations: Third Quarter Financial Highlights
7 Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 8: Net Interest Income Key Highlights
8 Key Highlights Net Interest Income ($ millions) Net interest income increased $1.9 million in 3Q 2019. This increase was mainly due to:A $2.9 million increase in interest income on consumer loans, primarily due to an increase of $96.0 million in the average balance and the effect of one additional
Slide 9: Results of Operations: Non-Interest Income
9 Non-interest income for 3Q 2019 amounted to $21.4 million, compared to $22.2 million for 2Q 2019. The $0.8 million decrease was primarily due to: The effect in the second quarter of 2019 of a $0.6 million gain from hurricane-related insurance proceeds in Other.A $0.5 million OTTI charge on private
Slide 10: Results of Operations: Non-interest Expenses
10 Results of Operations: Non-interest Expenses Non-interest expenses decreased by $0.1 million in 3Q 2019 to $92.8 million due to:A $2.5 million decrease in the net loss on OREO operations under “Credit related expenses” primarily due to a $1.9 million decrease in write-downs to the value of OREO p
Slide 11: Results of Operations: Asset Quality, Non-Performing Assets
11 Non-Performing Assets ($ millions) A $36.4 million decrease in nonaccrual commercial and construction loans, including the repayment of a $31.5 million nonaccrual commercial mortgage loan in the Florida region, the largest nonaccrual loan in the portfolio, and additional collections of $3.2 milli
Slide 12: Results of Operations: Net Charge-Offs
12 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 3Q 2019 were $13.8 million, or an annualized 0.61% of average loans, compared to $24.3 million, or an annualized 1.07% of average loans, in 2Q 2019. The decrease of $10.5 million in net charge-offs was mainly related to a $12.4 milli
Slide 13: Exhibits
Exhibits
Slide 14: Third Quarter 2019 Highlights: Loan Portfolio
14 Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Our island is beginning to show signs of growth and we continue relying on our regional diversification: * Including refinancing and draws from existing rev
Slide 15: Third Quarter 2019 Highlights: Deposits
15 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Continue improving deposit mix; noninterest bearing increased $99.3 million. Third Quarter 2019 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $8,439 $8,666 Over
Slide 16: Third Quarter 2019 Highlights: Capital Position
16 Third Quarter 2019 Highlights: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $2.2 billion as of September 30, 2019, an increase of $47.6 million from June 30, 2019. The increase was mainly driven by the earnings generated in the third quarter and the $7.6 million incr
Slide 17: Third Quarter 2019 Highlights: PR Government Exposure
17 Third Quarter 2019 Highlights: PR Government Exposure ($ in millions) As of September 30, 2019, the Corporation had $204.8 million of direct exposure to the Puerto Rico Government, compared to $213.5 million as of June 30, 2019. 89% of direct government exposure is to municipalities, which are su
Slide 18: NPL Migration
NPL Migration (Sin 000) Beginning balance Plus: Additions to non-performing Less: Non-performing loans transferred to OREO Non-performing loans charged-off Loans returned to accrual status / collections / pald-off Reclassification Ending balance Beginning balance Plus: Additions to non-performing Le
Slide 19: Use of Non-GAAP Financial Measures
19 Use of Non-GAAP Financial Measures Basis of PresentationUse 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’s results of operations or f
Slide 20: Use of Non-GAAP Financial Measures
20 Use of Non-GAAP Financial Measures Basis of PresentationUse 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’s results of operations or f
Slide 21: Use of Non-GAAP Financial Measures
21 Use of Non-GAAP Financial Measures Basis of PresentationUse 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’s results of operations or f
Slide 22: Use of Non-GAAP Financial Measures
22 Use of Non-GAAP Financial Measures Basis of PresentationUse 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’s results of operations or f