26 slides from First Bancorp. New's earnings presentation, Jul 30, 2015
Slide 1: Financial Results 2Q 2015
Financial Results 2Q 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” concerning First BanCorp’s (the “Corporation”) future economic performance. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “expect,” “anticipate,” “look forward,”
Slide 3: Agenda
Agenda Second Quarter 2015 Highlights Aurelio Alemán, President & Chief Executive Officer Second Quarter 2015 Results of Operations Orlando Berges, Executive Vice President & Chief Financial Officer Questions & Answers 3
Slide 4: Key Highlights
Second Quarter Results Tied Bancorp | Key Highlights
Slide 5: Important events that occurred in 2Q 2015
Several important events, which were previously reported to the market, occurred in 2Q 2015: On April 29, 2015, the FDIC notified FirstBank that the Consent Order, which had been in place since June 2010, was terminated. On May 26, 2015, First BanCorp announced progress on balance sheet de-risking w
Slide 6: Profitability and asset quality highlights
Profitability Net loss of $34.1 million, or $0.16 per diluted share, which included the $48.7 million pre-tax loss on the bulk sale transaction, as well as an $13 million OTTI on Puerto Rico Government securities and approximately $3 million in costs relating to conversion of loan and deposit accoun
Slide 7: Loan Portfolio ($ millions)
Loan Portfolio ($ millions) 2,795 2,820 3,011 3,332 3,328 2,062 2,027 1,983 1,937 1,899 148 142 123 124 121 4,461 4,327 4,145 4,092 3,870 72 80 77 82 80 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015$9,538 $9,396 $9,339 $9,567 161 169 154 153 197 272 245 235 221 235 7 7 12 9 14 442 496 490 398 394 2Q 2014
Slide 8: Core Deposits ($ millions)
Core Deposits* ($ millions) 2,812 2,814 2,841 3,203 3,139 1,174 1,246 1,263 1,390 1,346 2,108 2,111 2,092 2,225 2,195 440 469 401 451 494 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 * Core deposits are total deposits excluding brokered CDs. $6,534 $6,640 $6,597 $7,269 Total Deposit Composition(%) Intere
Slide 9: Puerto Rico Government Exposure
9 Second Quarter 2015 Highlights: PR GOVERNMENT EXPOSURE Total outstanding exposure to the Puerto Rico Government was $392 million with a book value of $378 million as of June 30, 2015. Investment portfolio outstanding principle of $65.5 million, being carried on books at $34.6 million. Loan exposur
Slide 10: Results of Operations
Second Quarter Results Tied Bancorp | Results of Operations
Slide 11: Second Quarter Financial Highlights
Results of Operations: SECOND QUARTER FINANCIAL HIGHLIGHTS ($ in thousands, except per share data) Select Financial Information 2Q 20151Q 2015Variance2Q 2014Interest income151,632$ 152,485$ (854)$ 158,423$ Interest expense25,155 26,838 (1,682) 28,516 Net interest income126,477 125,647 830 129,907 Pr
Slide 12: Second Quarter Financial Highlights: unusual items
12 Results of Operations: SECOND QUARTER FINANCIAL HIGHLIGHTS ($ in millions) $2.4 million of interim servicing costs were paid in 2Q 2015 through the conversion date. The estimated internal costs for the corresponding services are approximately $0.8 million, or approximately $0.4 million a month. D
Slide 13: Net Interest Income
13 Key Highlights Net Interest Income ($ millions) $129.9 $127.7 $129.2 $125.6 $126.5 4.21% 4.14% 4.18% 4.18% 4.18% 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Net Interest Income ($) Net Interest Margin (GAAP %) Net interest income increased $0.9 million in 2Q 2015. This increase was mainly due to: A $
Slide 14: Cost of Deposits
14 Key Highlights Cost of Deposits (%) 0.82% 0.83% 0.81% 0.77% 0.73% 0.72% 0.72% 0.70% 0.66% 0.61% 0.50% 0.60% 0.70% 0.80% 0.90% 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Interest Bearing Deposits (%) Total Deposits (%) Cost of total deposits, excluding brokered CDs, declined to 0.61%. The average rat
Slide 15: Non-Interest Income
Non-Interest Income* ($ millions) 4.2 4.2 4.2 4.6 5.2 3.0 3.8 4.5 3.6 4.8 9.3 8.2 9.3 11.1 10.1 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Other Mortgage Banking Service Charges on Deposits * Non interest income excludes equity losses of unconsolidated entities, OTTI, HFS bulk sale impact and bargain p
Slide 16: Operating Expenses
Results of Operations: OPERATING EXPENSES A $2.3 million increase in credit related expenses driven by higher write-downs to commercial OREO properties in Puerto Rico. A $2.2 million increase in compensation and benefit expenses mainly due to salary merit increases that became effective early in the
Slide 17: Non-Performing Assets / Asset Quality
17 Non-Performing Assets ($ millions) 1,639 1,551 1,506 1,239 1,233 1,208 1,184 1,138 1,119 1,066 1,008 976 683 506 498 496 522 565 560 524 564 464 150 150 163 163 172 176 188 194 213 242 251 260 256 151 147 175 154 138 130 138 136 133 159 148 95 80 55 55 55 55 55 55 48 9.5% 10.0% 9.3% 10.2% 10.2% 9
Slide 18: Net Charge-Offs
18 Key Highlights Net Charge-Offs ($ millions) 6 5 17 18 19 16 11 28 15 8 62 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Residential Consumer Commercial Construction Total net charge-offs for 2Q 2015 were $79 million, or 3.35% of average loans, compared to $29 million in 1Q 2015. Excluding the impact of
Slide 19: Capital Position
19 Results of Operations: CAPITAL POSITION Capital Ratios (%) Total stockholders’ equity amounted to $1.7 billion as of June 30, 2015, a decrease of $37.5 million from March 31, 2015, mainly driven by the net loss of $34.1 million and a decrease of $10.2 million in other comprehensive income due to
Slide 20: Proven Success Implementing Strategic Plan
20 Capital Ratios (%) Exceptional track record executing plan during challenging economic cycle: Raised capital, de-risked balance sheet and improved and expanded core deposit franchise. Enhanced diversification over three geographic markets. Improved competitive position to continue execution under
Slide 21: Q&A
Second Quarter Results Tied Bancorp | Q&A
Slide 22: Exhibits
Second Quarter Results Tied Bancorp | Exhibits
Slide 23: Key Margin Drivers Q2 vs. Q1
23 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 $ Δ in % Δ in AverageAverageVolumeRateAverage total investments(70,779)$ (0.25%)(1,948)$ Average loans & leases:Residen
Slide 24: Non-Performing Loan Migration
24 Results of Operations: MIGRATION Residential MortgageCommercial MortgageCommercial & IndustrialConstructionConsumerTotalBeginning balance172,583$ 142,385$ 186,500$ 27,163$ 34,914$ 563,545$ Plus: Additions to non-performing25,058 3,902 2,576 280 13,070 44,886 Less: Non-performing loans transferred
Slide 25: Use of Non-GAAP Financial Measures
25 Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operat
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 may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operati