23 slides from First Bancorp. New's earnings presentation, Jul 26, 2016
Slide 1: Financial Results 2Q 2016
Financial Results2Q 2016
Slide 2: Forward-looking statements
2 This presentation may contain “forward-looking statements” concerning the Corporation’s future economic and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes” and similar expressions are meant to identify “forward-looking sta
Slide 3: Agenda
Agenda Second Quarter 2016 Highlights Aurelio Alemán, President & Chief Executive OfficerSecond Quarter 2016 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights Second Quarter 2016 Results
Key Highlights 4 Second Quarter 2016 Results
Slide 5: Profitability and Asset Quality highlights
5 Profitability Net income of $22.0 million, or $0.10 per diluted share, compared to $23.3 million in 1Q 2016; Adjusted 1Q 2016 net income, excluding items that affect comparability, was $25.8 million.Net interest income declined $4.4 million, due to lower loan volumes and prepayments on securities.
Slide 6: Loan Originations and Loan Portfolio
6 Loan Originations* ($ millions) Loan Portfolio ($ millions) $880 Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Loan Portfolio:Commercial and construction portfolio declined by $58 million primarily attributable to a $43 million reduction in Puerto Rico due to rep
Slide 7: Deposit Mix and Core Deposits
7 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Non-brokered deposits, excluding government deposits, decreased $37 million in 2Q 2016, primarily in Florida and the Virgin Islands. Puerto Rico core deposits increased $11 million
Slide 8: Second Quarter 2016 Highlights: PR Government Exposure
8 Second Quarter 2016 Highlights: PR Government Exposure As of June 30, 2016, the Corporation had $336.5 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $340.5 million as of March 31, 2016. Available-for-sale investment portfolio outs
Slide 9: Results of Operations Second Quarter 2016 Results
9 Results of Operations Second Quarter 2016 Results
Slide 10: Second Quarter Financial Highlights
10 Results of Operations: Second Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income decreased $4.4 million in 2Q 2016. This decrease was mainly due to:A $3.0 million decrease in interest income on loans driven by: lower loan volumes driven by repayments; the impact of loans moved to nonaccrual status over the fi
Slide 12: Cost of Deposits
12 Key Highlights Cost of Deposits (%) Cost of total deposits, excluding brokered CDs, remained flat at 0.62%.The average rate paid on non-brokered interest-bearing deposits remained flat at 0.76% during the 2Q 2016.Brokered CDs declined by $197.2 million during 2Q 2016. Results of Operations: Cost
Slide 13: Non-Interest Income
13 Key Highlights Non-Interest Income* ($ millions) * Non interest income excludes equity losses of unconsolidated entities, OTTI, HFS bulk sale impact and bargain purchase gain. Adjusted non-interest income, excluding the OTTI charge and gain on the repurchase and cancellation of TRUPs in 1Q 2016,
Slide 14: Operating Expenses
14 Results of Operations: Operating Expenses Non-interest expenses decreased by $3.5 million in 2Q 2016 to $89.5 million, due to:A $1.2 million decrease in occupancy and equipment costs, including reductions in repairs, electricity, rental and depreciation expenses.A $1.0 million decrease in employe
Slide 15: Non-Performing Assets
15 Non-Performing Assets ($ millions) Total non-performing loans, including non-performing loans held for sale, increased by $23 million, or 4%, driven by the inflow of a $35 million commercial relationship in the Puerto Rico region.New non-performing loan inflows, were $78 million in 2Q 2016, down
Slide 16: Net Charge-Offs
16 Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 2Q 2016 were $25 million, an annualized 1.11% of average loans, compared to $24 million in 1Q 2016. Allowance coverage ratio of 2.64% remained flat compared to 1Q 2016. The ratio of the allowance to NPLs held for investment was
Slide 17: Capital Position
17 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.8 billion as of June 30, 2016, an increase of $37.3 million from March 31, 2016, mainly driven by $22.0 million of net income and an increase of $13.9 million in other comprehensive income attribu
Slide 18: Second Quarter Results Q & A
18 Second Quarter Results Q & A
Slide 19: Second Quarter Results Exhibits
19 Second Quarter Results Exhibits
Slide 20: Key Margin Drivers Q2 vs. Q1
20 Results of Operations: Key Margin Drivers Q2 vs. Q1 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations ($ in 000)
Slide 21: NPLs Held for Investment - Migration
21 NPLs Held for Investment - Migration ($ in 000)
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