First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q4 2020 Earnings Presentation
28 slides from First Bancorp. New's earnings presentation, Jan 29, 2021
Slide 1: Financial Results 4Q 2020 & FY 2020
Financial Results 4Q 2020 & FY 2020
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation may contain “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “believe” and similar expressions are meant to identify
Slide 3: Agenda
Agenda FY & 4Q 2020 Quarter Highlights Aurelio Alemán, President & Chief Executive OfficerFY & 4Q 2020 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: FY & 4Q 2020 Highlights
FY & 4Q 2020 Highlights
Slide 5: FY2020 Highlights
FY2020 Highlights Improved Strategic Positioning Successful acquisition of Banco Santander Puerto Rico in 3Q 2020 has secured our market position in a consolidated market with opportunities for enhanced market penetration with over 30% growth in new customers to 675,000 customers Fortress Balance Sh
Slide 6: Fourth Quarter 2020 Highlights
Fourth Quarter 2020 Highlights 6 Profitability Net income of $50.1 million, or $0.23 per diluted share compared to $28.6 million, or $0.13 per diluted share in 3Q 2020. Financial results for the fourth quarter of 2020 reflected the full quarter’s effect of the acquired operations. Adjusted pre-tax,
Slide 7: Strong Operating Metrics During Pandemic: Loans, Originations, Deposits
Strong Operating Metrics During Pandemic Loan Portfolio ($ in millions) Loan Originations (1)($ in millions) Core Deposits (2)($ in millions) $8,887 $10,086 $14,876 $14,648 $887 $962 $4,424 7 $1,053 $4,346 $1,521 $8,791 Commercial activity is showing signs of strength (8 large originations in excess
Slide 8: Strong Operating Metrics During Pandemic: Income
Strong Operating Metrics During Pandemic Net Interest Income($ in millions) Pre-tax Pre-provision Income($ in millions) Net Income($ in millions) 8 We generated $102 million of net income, or $0.46 per share, compared to $167 million, or $0.76 per share, despite the impact of the pandemic on the eco
Slide 9: Fortress Balance Sheet
Fortress Balance Sheet Ample liquidity to drive loan demand as economy continues reopening effortsStrong reserve coverage on a well-diversified loan portfolioCapital ratios remain among the highest in the banking sector; capital ratios remain well above regulatory “Well-Capitalized” guidelinesCapita
Slide 10: Results of Operations
Results of Operations
Slide 11: Fourth Quarter Highlights
Fourth Quarter Highlights ($ in thousands, except per share data) 11
Slide 12: Net Interest Income
Net Interest Income Key Highlights Net Interest Income ($ millions) A $27.8 million increase in interest income on loans reflecting:A $1.7 billion increase in average balances primarily related to the full quarter effect of the Santander acquisitionRecognition of $1.1 million in interest collected o
Slide 13: Non-Interest Income
Non-Interest Income Non-interest income for 4Q 2020 amounted to $30.2 million, compared to $29.9 million for 3Q 2020 ($24.6 million excluding the 3Q 2020 gain on sale of securities). The $5.7 million increase, excluding the 3Q 2020 securities gain, was primarily due to: A $2.5 million increase in se
Slide 14: Non-Interest Expense
Non-Interest Expense Non-interest expenses amounted to $134.8 million in 4Q 2020, an increase of $27.3 million from $107.5 million in 3Q 2020, including the following special items:Merger and restructuring costs associated with the acquisition of $12.3 million for 4Q 2020, compared to $10.4 million
Slide 15: Significant ACL Levels
Significant ACL Levels Evolution of ACL ($ in millions) & ACL on Loans to Total Loans (%) The allowance for credit losses (ACL) on loans increased by $1.2 million during 4Q 2020 to $386 millionACL for Commercial loans increased by $23.9 million as the CRE price index is projected to deteriorate due
Slide 16: Asset Quality
Asset Quality Non-Performing Assets ($ millions) The increase in NPAs was driven by:A $2.6 million increase in nonaccrual residential mortgage loans, primarily resulting from the migration of loans previously subject to the COVID-19 payment moratorium reliefA $2.4 million increase in non-real estate
Slide 17: Capital Ratios
Capital Ratios Total stockholders’ equity amounted to $2.3 billion as of December 31, 2020, an increase of $49.9 million from September 30, 2020. The increase was driven by earnings generated in the fourth quarter, and a $10.4 million increase in the fair value of available-for-sale investment secur
Slide 18: FY 2020 Highlights
FY 2020 Highlights ($ in thousands, except per share data) 18
Slide 19: Exhibits
Exhibits
Slide 20: Fourth Quarter 2020 Highlights: PR Government Exposure
Fourth Quarter 2020 Highlights: PR Government Exposure ($ in millions) As of December 31, 2020, the Corporation had $394.8 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $400.3 million as of September 30, 202085% of direct government
Slide 21: Fourth Quarter 2020 Highlights: NPL Migration
($ in 000) Fourth Quarter 2020 Highlights: NPL Migration 21
Slide 22: Use of Non-GAAP Financial Measures
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 fina
Slide 23: Use of Non-GAAP Financial Measures
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 fina
Slide 24: Use of Non-GAAP Financial Measures
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 fina
Slide 25: Use of Non-GAAP Financial Measures
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 fina
Slide 26: Use of Non-GAAP Financial Measures
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 fina
Slide 27: Use of Non-GAAP Financial Measures
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 fina
Slide 28: Use of Non-GAAP Financial Measures
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 fina