First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q3 2018 Earnings Presentation
23 slides from First Bancorp. New's earnings presentation, Oct 25, 2018
Slide 1: Financial Results 3Q 2018
Financial Results3Q 2018
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation may contain “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes” and similar expressions ar
Slide 3: Agenda
Agenda Third Quarter 2018 Highlights Aurelio Alemán, President & Chief Executive OfficerThird Quarter 2018 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights
Key Highlights 4 Third Quarter 2018 Highlights
Slide 5: Third Quarter 2018 Highlights: Profitability, Loans, Asset Quality, Deposits
Profitability 3Q 2018 net income of $36.3 million, or $0.16 per diluted share, compared to $31.0 million in 2Q 2018.Adjusted pre-tax, pre-provision income of $60.2 million, compared to $61.3 million for 2Q 2018. Net interest income increased $2.0 million compared to 2Q 2018. Loan Portfolio Loan orig
Slide 6: Loan Originations and Loan Portfolio
6 Loan Originations* ($ 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 revo
Slide 7: Total Deposit Composition and Core Deposits
7 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Continue improving deposit mix; noninterest bearing increased to over 25% of total deposits. Third Quarter 2018 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $7,
Slide 8: Highlights: Capital Position
8 Third Quarter 2018 Highlights: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.9 billion as of September 30, 2018, an increase of $25.7 million from June 30, 2018, mainly driven by the earnings generated in the second quarter, partially offset by the decrease in the f
Slide 9: Results of Operations
9 Results of Operations Third Quarter 2018 Results
Slide 10: Third Quarter Financial Highlights
10 Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Results of Operations: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income increased $2.0 million in 3Q 2018. This increase was mainly due to:A $2.0 million increase in interest income on consumer loans primarily due to an increase of $63.5 million in average balances.Interest expense decreased due to a
Slide 12: Adjusted Non-Interest Income
12 Key Highlights Adj. Non-Interest Income* ($ millions) * Non-GAAP adjusted non interest income – See Appendix page 23 for reconciliation. Non-interest income for 3Q 2018 amounted to $18.5 million, compared to $20.5 million for 2Q 2018. Non-interest income for 3Q 2018 included $0.5 million gain fro
Slide 13: Results of Operations: Operating Expenses
13 Results of Operations: Operating Expenses Non-interest expenses increased by $0.7 million in 3Q 2018 to $90.9 million. Non-interest expenses for 3Q 2018 included $0.5 million ($0.7 million in 2Q 2018) in storm-related costs substantially all included in occupancy and equipment. Excluding theses i
Slide 14: Results of Operations: Asset Quality, Non-Performing Assets
14 Non-Performing Assets ($ millions) The restoration to accrual status of a $35.7 million commercial and industrial restructured loan; Sales of $24.5 million of non-performing commercial and construction loans held for sale; Charge-offs totaling $12.5 million taken on non-performing commercial and
Slide 15: Results of Operations: Net Charge-offs
15 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 3Q 2018 were $33.0 million, or an annualized 1.52% of average loans, compared to $23.4 million, or an annualized 1.07% of average loans, in 2Q 2018.Included in the net charge-offs this quarter is a $12.5 million charge-off, or 0.57%
Slide 16: Questions & Answers
16 Third Quarter 2018 Results Q & A
Slide 17: Exhibits
17 Third Quarter 2018 Results Exhibits
Slide 18: Main market continues to show signs of economic recovery
Main market continues to show signs of economic recovery Financial industry performance in the aftermath of both Hurricanes Irma and Maria has exceeded original expectations and has triggered a re-assessment of our progress and corporate goals for 2018 to maximize our opportunitiesSeveral drivers of
Slide 19: NPL Migration
NPL MIGRATION (Sin 000) Beginning balance $162,539 $ 159,428 § 76,887 $ 51,880 $ 22,953 $473,687 Pls: Additions to non-performing 16,480 2,326 850 1,388 10,940 31,984 Less: Non- performing loans transferred to OREO (6,302) (886) (1,192) (54) (8,434) Non- performing loans charged-off (6,027) (12,664)
Slide 20: Highlights: PR Government Exposure
20 Third Quarter 2018 Highlights: PR Government Exposure ($ in millions) As of September 30, 2018, the Corporation had $221.4 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $213.2 million as of June 30, 2018. 87% of direct government
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
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 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