23 slides from First Bancorp. New's earnings presentation, Apr 25, 2014
Slide 1: Financial Results First Quarter 2014 First BanCorp
Financial Results First Quarter 2014 First BanCorp
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 �� First Quarter 2014 Highlights: Aurelio Alemán, President & Chief Executive Officer �� First Quarter Results of Operations: Orlando Berges, Executive Vice President & Chief Financial Officer �� Summary �� Questions & Answers 3
Slide 4: First Quarter 2014 Highlights
FIRST QUARTER 2014 Highlights
Slide 5: Profitability and Asset Quality Highlights
Profitability • Net income of $17.1 million, or $0.08 per diluted share, up 15.5% compared to $14.8 million in 4Q 2013. • Year‐over‐year 1Q net income increased $12.5 million compared to adjusted 1Q 2013 net income of $4.6 million. • Net interest margin increased by 2 basis points to 4.27% driven by
Slide 6: First Quarter 2014 Highlights: Loan Portfolio
6 First Quarter 2014 Highlights: LOAN PORTFOLIO Origination activity at $863 million for 1Q 14 at healthy levels compared to 1Q 2013, but declined compared to 4Q 2013: - Decline compared to 4Q was mainly related to lower seasonal disbursements on commercial facilities; and - Residential mortgages or
Slide 7: First Quarter 2014 Highlights: Deposit Mix
�� Continued focus on deposit growth strategy; brokered CDs were reduced $15.6 million during 1Q 2014. Core deposits were up $138 million. We achieved this while reducing the cost of deposits net of brokered from 0.77% to 0.76%. �� We are prepared for a reduction in government deposits. �� Continued
Slide 8: First Quarter 2014 Results of Operations
FIRST QUARTER 2014 Results of Operations
Slide 9: Income Statement Summary
Interest income 160,571 $ 162,690 $ (2,119) $ 160,225 $ Interest expense 29,251 30,031 (780) 35,732 Net interest income 131,320 132,659 (1,339) 124,493 Provision for loan and lease losses 31,915 22,969 8,946 111,123 Non‐interest income 17,960 18,378 (418) 19,167 Equity in losses of unconsolidated en
Slide 10: Revenue & Margin Expansion
10 Results of Operations: REVENUE & MARGIN EXPANSION �� NIM expanded 2 basis points, while net interest income declined $1.3 million compared to Q4 13. �� NIM increased 31 basis points year-over‐year. �� Net interest income declined $1.3 million in the first quarter due to: - A decrease of approxima
Slide 11: Cost of Funds
11 Results of Operations: COST OF FUNDS �� Cost of total deposits, excluding brokered CDs, decreased to 0.76% from 0.77%. �� The average rate paid on non‐brokered deposits, including interest‐bearing checking accounts, savings and retail CDs, declined by 2 basis points to 0.87% during the first quar
Slide 12: Non-Interest Income
12 Results of Operations: NON‐INTEREST INCOME* �� Excluding the equity in earnings (losses) of unconsolidated entities (related to investment in CPG/GS) non‐interest income declined $0.4 million compared to 4Q 2013, due to: - A net positive 4Q impact of $1.3MM related to a $1.8MM recovery on a lower
Slide 13: Operating Expenses
13 Results of Operations: OPERATING EXPENSES �� A $7.5 million decrease in write‐downs and losses on OREO properties. Total write‐downs in the first quarter of 2014 amounted to $5.2 million compared to $11.9 million for the fourth quarter of 2013. �� 4Q impact of $2.5 million loss contingency relate
Slide 14: Asset Quality
2010 2011 2012 2013 14 Results of Operations: ASSET QUALITY �� NPAs increased $5.3 million to $731 million in 1Q 2014. �� Total NPLs increased $26.2 million impacted by one large commercial mortgage relationship of $23.3 million. �� The OREO and repossessed property inventory balance decreased by $2
Slide 15: Net Charge-Offs & Allowance Coverage
15 Results of Operations: NET CHARGE‐OFFS & ALLOWANCE COVERAGE ($ in millions) �� Total net charge‐offs for 1Q 2014 were $51 million, or 2.11% of average loans. – Individual charge‐offs in excess of $2 million associated with four collateral dependent commercial loans in Puerto Rico totaling $15.8 m
Slide 16: Capital Position
16 Results of Operations: CAPITAL POSITION �� Total stockholders’ equity amounted to $1.3 billion as of March 31, 2014, an increase of $40.0 million from December 31, 2013, driven by an increase of $22.5 million in other comprehensive income mainly attributable to an increase in the value of U.S. ag
Slide 17: PR Government Exposure
17 First Quarter Highlights: PR GOVERNMENT EXPOSURE ($ in millions) �� Total asset exposure to the Puerto Rico Government as of March 31, 2014 was $476 million. - Exposure supported by first lien on tax and property revenues. �� In addition, there is $197 million of indirect exposure to the Tourism
Slide 18: First Quarter 2014 Q&A
FIRST QUARTER 2014 Q&A
Slide 19: Exhibits
EXHIBITS
Slide 20: Key Margin Drivers
20 Results of Operations: THIRD QUARTER KEY MARGIN DRIVERS Q1 vs. Q4 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations $ ∆ in % ∆ in Average Average Volume Rate Average total investments 97,012 $ (0.14%) (706) $ Average loan
Slide 21: Use of Non-GAAP Financial Measures
21 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 22: Use of Non-GAAP Financial Measures
22 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 23: Use of Non-GAAP Financial Measures
23 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