24 slides from First Bancorp. New's earnings presentation, Oct 28, 2014
Slide 1: Financial Results Third Quarter 2014
Financial Results Financial Results Third Quarter 2014 Third Quarter 2014
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 Third Quarter 2014 Highlights: Aurelio Alemán, President & Chief Executive Officer Third Quarter Results of Operations: Orlando Berges, Executive Vice President & Chief Financial Officer Questions & Answers
Slide 4: Third Quarter 2014 Highlights
THIRD QUARTER 2014 THIRD QUARTER 2014 Highlights
Slide 5: Profitability and Asset Quality
Profitability Net income of $23.2 million, or $0.11 per diluted share, up 9% compared to $21.2 million in 2Q 2014. Year-over-year 3Q net income increased $7.2 million compared to 3Q 2013 net income of $15.9 million. Net interest margin decreased by 7 basis points to 4.14%. Pre-tax, pre-provision inc
Slide 6: Third Quarter 2014 Highlights: Loan Portfolio
Third Quarter 2014 Highlights: LOAN PORTFOLIO Origination and renewal activity at $917 million for 3Q 2014 at healthy levels compared to 2Q 2014: Increase compared to 2Q was mainly related to seasonal renewals on commercial facilities. Slight improvement in residential mortgages originations. Reduct
Slide 7: Third Quarter 2014 Highlights: Deposit Mix
Core deposits increased $105.5 million during 3Q 2014. Non-brokered deposits, excluding government deposits, increased $76.6 million. Brokered CDs were reduced $33.1 million during 3Q 2014. The cost of deposits net of brokered remained unchanged at 0.72%. Focus on cross-selling opportunities. Contin
Slide 8: Third Quarter Highlights: PR Government Exposure
Third Quarter Highlights: PR GOVERNMENT EXPOSURE ($ in millions) Total asset exposure to the Puerto Rico Government as of September 30, 2014 was $377 million a $24.4 million decrease from 2Q 2014. In addition, there is $200 million of indirect exposure to the Tourism Development Fund supporting hote
Slide 9: Third Quarter 2014 Results of Operations
THIRD QUARTER 2014 THIRD QUARTER 2014 Results of Operations Results of Operations
Slide 10: Statement of Income Summary
Interest income156,662$ 158,423$ (1,761)$ 162,203$ Interest expense28,968 28,516 452 31,298 Net interest income127,694 129,907 (2,213) 130,905 Provision for loan and lease losses26,999 26,744 255 22,195 Non-interest income16,174 16,601 (427) 15,968 Equity in losses of unconsolidated entities0 (670)
Slide 11: Net Interest Income
$-$30.0 $60.0 $90.0 $120.0 $150.0 3Q 20134Q 20131Q 20142Q 20143Q 2014130.9132.7131.3129.9127.7NIM (GAAP) Net Interest Income4.204.254.274.214.14 11 Results of Operations: NET INTEREST INCOME NIM declined 7 basis points, compared to 2Q 14. Net interest income declined $2.2 million in the third quarte
Slide 12: Cost of Funds
Results of Operations: COST OF FUNDS Cost of total deposits, excluding brokered CDs, remained unchanged at 0.72%. The average rate paid on non-brokered deposits, including interest-bearing checking accounts, savings and retail CDs, increased by 1 basis points to 0.83% during the third quarter. The a
Slide 13: Non-Interest Income
Results of Operations: NON-INTEREST INCOME* Non-interest income excluding losses on the unconsolidated entity decreased $0.4 million compared to 2Q 2014, due to: -A $0.4 million decrease in other operating income that includes reductions in credit and debit card fees, merchant fees and losses on sal
Slide 14: Operating Expenses
Results of Operations: OPERATING EXPENSES A $2.5 million decrease in losses on OREO properties. Total write-downs on OREO properties in the third quarter of 2014 amounted to $2.8 million compared to $5.2 million for the second quarter of 2014, a decrease of $2.4 million. A $1.1 million decrease in e
Slide 15: Asset Quality
Results of Operations: ASSET QUALITY NPAs decreased $12.9 million to $744 million in 3Q 2014. Total NPLs decreased $5.2 million primarily driven by charge-offs of commercial and industrial and construction loans in both Puerto Rico and the Virgin Islands. The OREO balance decreased by $9.0 million,
Slide 16: Net Charge-Offs & Allowance Coverage
Results of Operations: NET CHARGE-OFFS & ALLOWANCE COVERAGE ($ in millions) Total net charge-offs for 3Q 2014 were $43 million, or 1.80% of average loans. Allowance coverage ratio of 2.42% as of September 30, 2014 compared to 2.55% as of June 30, 2014. The decrease in the ratio was primarily related
Slide 17: Capital Position
Results of Operations: CAPITAL POSITION Total stockholders’ equity amounted to $1.3 billion as of September 30, 2014, an increase of 18.2 million attributable to net income of $23.2 million and offset by a decrease in other comprehensive income due to the fair value of U.S. agency MBS. The capital l
Slide 18: Q&A
THIRD QUARTER 2014 THIRD QUARTER 2014 Q&A
Slide 19: Exhibits
EXHIBITS
Slide 20: Third Quarter Key Margin Drivers
Results of Operations: THIRD QUARTER KEY MARGIN DRIVERS Q3 vs. Q2 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations $ D in % D in Average Average Volume Rate Average total investments(42,255)$ (0.32%)(2,322)$ Average loans &
Slide 21: Migration
Results of Operations: MIGRATION Residential Mortgage Commercial Mortgage Commercial & Industrial Construction Consumer Total Beginning balance175,404$ 166,218$ 143,669$ 38,830$ 40,510$ 564,631$ Plus: Additions to non-performing35,645 11,985 13,967 122 19,392 81,111 Less: Non-performing loans transf
Slide 22: 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 23: 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 24: 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