First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q2 2020 Earnings Presentation
26 slides from First Bancorp. New's earnings presentation, Jul 28, 2020
Slide 1: Financial Results Second Quarter 2020
Financial ResultsSecond Quarter 2020
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This press release 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,” “believe” and similar expressions ar
Slide 3: Agenda
Agenda Second Quarter 2020 Highlights Aurelio Alemán, President & Chief Executive OfficerSecond Quarter 2020 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights
Slide 5: Programs to Assist our Customers
Programs to Assist our Customers Implemented relief programs for commercial, consumer and residential mortgage customers in all regions. As of June 30, 2020 approximately 35.6% of our overall loan portfolio was granted relief, as of July 24th, approximately 17.5% of the portfolio continues in the de
Slide 6: Economic backdrop and loan originations, core deposits
6 Loan Originations3 ($ millions) 1 Source: Moody’s Analytics May 2020 2 United States Department of Labor. Bureau of Labor Statistics, Establishment Survey3 Including refinancing and draws from existing revolving and non-revolving commitments including credit card utilization.4 Core deposits are to
Slide 7: Second Quarter 2020 Highlights
7 Second Quarter 2020 Highlights Profitability Net income of $21.3 million, or $0.09 per diluted share compared to $2.3 million, or $0.01 per diluted share in 1Q 2020Financial results for 2Q 2020 include the effect of a reserve build for loans and debt securities of $29.1 million ($19.2 million afte
Slide 8: Results of Operations
Results of Operations
Slide 9: Results of Operations: Second Quarter Highlights
9 Results of Operations: Second Quarter Highlights ($ in thousands, except per share data) Select Financial Information
Slide 10: Results of Operations: Net Interest Income
10 Key Highlights Net Interest Income ($ millions) Net interest income decreased $3.4 million in 2Q 2020. This decrease was mainly due to a $2.0 million decrease in interest income from interest-bearing cash balances and a $1.6 million decrease in interest income on consumer loans, mostly in credit
Slide 11: Results of Operations: Non-Interest Income
11 Non-interest income for 2Q 2020 amounted to $20.9 million, compared to $30.2 million for 1Q 2020. The $9.3 million decrease was primarily due to: An $8.2 million gain on sales of approximately $275.6 million of available-for-sale U.S. agencies MBS in 1Q 2020.A $3.2 million decrease in insurance i
Slide 12: Results of Operations: Non-interest Expenses
12 Results of Operations: Non-interest Expenses Non-interest expenses decreased by $2.4 million in 2Q 2020 to $89.8 million reflecting volume related expense reductions and expense control measures that were implemented.On a non-GAAP basis, adjusted non-interest expenses, excluding the effect of $2.
Slide 13: Results of Operations: Significant ACL Levels
13 Evolution of ACL ($ in millions) & ACL on Loans to Total Loans (%) The allowance for credit losses (ACL) on loans increased by $26.5 million during 2Q 2020 to $319 million primarily in connection with the effect of the COVID-19 pandemic on forecasted economic and market conditions.The ratio of th
Slide 14: Net Charge-Offs and Payment Deferral Programs
14 Net Charge-Offs ($ millions) Payment Deferral Programs Implemented moratorium programs for commercial, consumer and residential mortgage customers in all regions. As of June 30, 2020 approximately 36% of our overall loan portfolio was granted payment deferrals. As of July 24th, customers under de
Slide 15: Results of Operations: Asset Quality
15 Non-Performing Assets ($ millions) Total nonaccrual loans decreased by $8.3 million to $204.0 million as of 2Q 2020, compared to $212.3 million as of 1Q 2020. The decrease in NPAs was driven by:$6.0 million decrease in nonaccrual consumer loans, primarily auto loans and small personal loans, driv
Slide 16: Exhibits
Exhibits
Slide 17: Second Quarter 2020 Highlights: Loan Portfolio
17 Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Loan origination activity improving as economy begins reopening: * Including refinancing and draws from existing revolving and non-revolving commitments. Se
Slide 18: Second Quarter 2020 Highlights: Deposit Mix
18 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered deposits. Continue improving deposit mix; core deposits increased $1.2 billion in 2Q 2020. Second Quarter 2020 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $8,887 $
Slide 19: Second Quarter 2020 Highlights: Capital Position
19 Capital Ratios (%) Total stockholders’ equity amounted to $2.2 billion as of June 30, 2020, an increase of $15.1 million from March 31, 2020. The increase was driven by earnings generated in the second quarter, and a $4.2 million increase in the fair value of available-for-sale investment securit
Slide 20: Second Quarter 2020 Highlights: PR Government Exposure
20 Second Quarter 2020 Highlights: PR Government Exposure ($ in millions) As of June 30, 2020, the Corporation had $203.5 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $203.3 million as of March 31, 2020. 89% of direct government ex
Slide 21: Second Quarter 2020 Highlights: NPL Migration
21 ($ in 000) Second Quarter 2020 Highlights: NPL Migration
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
Slide 24: Use of Non-GAAP Financial Measures
24 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 25: Use of Non-GAAP Financial Measures
25 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 26: Use of Non-GAAP Financial Measures
26 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