First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (November 2015)
28 slides from First Bancorp. New's investor presentation, Nov 12, 2015
Slide 1: First BanCorp Investor Presentation November 2015
First BanCorp Investor Presentation November 2015 Exhibit 99.1
Slide 2: Forward-Looking Statements
This presentation may contain “forward-looking statements” concerning the Corporation’s future economic performance. The words or phrases “expect,” “anticipate,” “look forward,” “should,” “believes” and similar statements of a future or forward-looking nature that reflect our current views with resp
Slide 3: Investment Thesis
Investment Thesis A turn-around story underscored by steady improvement and organic market share gains in the core franchise, operating within a challenging macro environment. Strong, tenured leadership team with a commitment to increasing shareholder value, while fulfilling our vision to be the mos
Slide 4: Franchise Overview
Franchise Overview Founded in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida ~2,700 FTE employees(1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share Florida presence
Slide 5: Key Events Timeline 2010-2015
June 2010: Written Agreement with the FED and Consent Order with FDIC July 2010: The U.S. Treasury exchanged TARP for convertible preferred August 2010: Exchange of 89% Perpetual Preferred Stock for Common Feb 2011: Sale of non-performing loans with book value of $269 million Feb-April 2011: Sale of
Slide 6: Well positioned Puerto Rico institution in a consolidating market
Franchise Overview Well positioned Puerto Rico institution in a consolidating market Source: PR Market Share Report prepared with data provided by the Commissioner of Financial Institutions of Puerto Rico as of 6/30/15. 1) Puerto Rico only. 2) Calculated as institution bank branches within a mile of
Slide 7: Diversified business model across all regions
Diversified business model across all regions Franchise Overview Consumer Banking Mortgage Banking Commercial Lending Focus on small to middle market commercial and corporate borrowers across FBP’s footprint. Complimented by full suite of deposit and business products. Balanced risk/return profile t
Slide 8: Executing for Earnings Growth
Executing for Earnings Growth Puerto Rico Market Share Puerto Rico Opportunities for ongoing market share gains Largest opportunity on deposit products, electronic banking & transaction services Growth in selected loan products for balanced risk/return to manage risk concentration and diversify inco
Slide 9: Proactively Managing Asset Quality
Non-Performing Assets ($ millions) Commercial NPLs are being carried at 60% of unpaid principal balance, net of specific reserves. New non-performing loan inflows amounted to $50.8 million in 3Q 2015 compared to inflows of $44.9 million in 2Q 2015. Total NPAs declined by $27 million compared to 2Q 2
Slide 10: Puerto Rico Government Exposure
($ in millions) Puerto Rico Government Exposure Total outstanding exposure to the Puerto Rico Government was $402 million with a book value of $371 million as of September 30, 2015, down from $378 million as of June 30, 2015. Investment portfolio outstanding principal of $65.6 million, being carried
Slide 11: Business Model Driven by Strong Origination Capabilities
Loan Originations(1) ($ millions) Loan Portfolio ($ millions) 1) Including refinancing and total draws from existing revolving and non-revolving commitments. Business Model Driven by Strong Origination Capabilities $9,396 $9,339 $9,567 $891 $777 Residential Mortgage Consumer & Finance Leases Constru
Slide 12: Well Balanced Loan Portfolio Mix
3Q 2015 Consumer Loan Composition 3Q 2015 Commercial Loan Composition Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities. Commercial represents 44%, residential represents 36% and c
Slide 13: Successful core deposit growth
Total Deposit Composition (%) Core Deposits(1) ($ millions) 1) Core deposits are total deposits excluding brokered CDs. $5,108 $6,176 $6,490 $6,738 YTD 2015 core deposits, net of government, increased $509 million. Focus on deposit pricing has improved cost of deposits, net of brokered, which declin
Slide 14: Stable Core Performance in Challenging Environment
Stable Core Performance in Challenging Environment Pre-tax pre-provision income of $50.5 million1 average 4 quarters of $51 million. Replacement of NPLs with performing loans should reduce provisioning needs. Future earnings potential with a reduction in costs associated with managing NPLs and OREO.
Slide 15: Earnings Continue to Drive Capital Formation
Earnings Continue to Drive Capital Formation Capital Ratios (%) Total stockholders’ equity amounted to $1.7 billion as of September 30, 2015, an increase of $32.7 million from June 30, 2015, mainly driven by net income of $14.8 million and an increase of $16.7 million in other comprehensive income d
Slide 16: Stronger Franchise: Proven Success Implementing Strategic Plan
Stronger Franchise: Proven Success Implementing Strategic Plan Our franchise has never been stronger and is poised to increase shareholder value navigating through fiscal and economic challenges. Strong, tenured leadership team with exceptional track record of executing strategic plan during challen
Slide 17: Exhibits
Exhibits
Slide 18: Exhibits
Exhibits Page Stock Profile…………………………………………………………………………………………………………….19 3Q Earnings Presentation…………………………………………………………………………………………20 Quarterly NPL Migration Trends………….........................................……………………………………..26 Non-GAAP Reconciliations……………………………………………………………………………………….27
Slide 19: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (11/9/15): $4.48 Shares Outstanding (as of October 31, 2015): 215,011,486 Market Capitalization (11/9/15): $963 million 1 Yr. Average Daily Volume: 926,235 Price (11/9/15) to Tangible Book (9/30/15): 0.60x Includes the U.S. Treasury warran
Slide 20: Third Quarter Financial Highlights
Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 21: Results of Operations: Net Interest Income
Key Highlights Net Interest Income ($ millions) Net interest income decreased $1.6 million in 3Q 2015. This decrease was mainly due to: A $0.8 million decrease in interest income on commercial and construction loans; A $0.5 million decline in interest income on consumer loans (primarily auto) driven
Slide 22: Results of Operations: Non-Interest Income
Key Highlights Non-Interest Income* ($ millions) * Non interest income excludes equity losses of unconsolidated entities, OTTI, HFS bulk sale impact and bargain purchase gain. Excluding the $12.9 million OTTI charge on Puerto Rico Government debt securities and the $0.6 million pre-tax loss on a com
Slide 23: Results of Operations: Operating Expenses
Results of Operations: Operating Expenses Non-interest expenses decreased by $9.5 million in 3Q 2015 to $93.3 million. 2Q 2015 expenses included: $2.6 million acquisition and conversion costs related to the Doral transaction; and $1.2 million of expenses and losses directly associated with the bulk
Slide 24: Results of Operations: Net Charge-offs
Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 3Q 2015 were $24 million, or 1.02% of average loans, compared to $79 million in 2Q 2015. Excluding the impact of charge-offs related to the bulk sale ($61.4 million), total net charge-offs were $6.4 million higher in 3Q 2015. Allo
Slide 25: Results of Operations: Key Margin Drivers
Results of Operations: Key Margin Drivers Q3 vs. Q2 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations
Slide 26: NPLs Held for Investment - Migration
NPLs Held for Investment - Migration
Slide 27: Use of Non-GAAP Financial Measures
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 operation
Slide 28: Use of Non-GAAP Financial Measures
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 operation
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