First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q4 2013 Earnings Presentation
26 slides from First Bancorp. New's earnings presentation, Feb 4, 2014
Slide 1: Financial Results Fourth Quarter & Year End 2013
Financial Results Financial Results Fourth Quarter & Year End 2013 Fourth Quarter & Year End 2013
Slide 2: Forward-Looking Statements
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 expressions are meant to identify “forward-looking statements”
Slide 3: Agenda
Agenda Fourth Quarter & Year End 2013 Highlights: Aurelio Alemán, President & Chief Executive Officer Fourth Quarter Results of Operations: Orlando Berges, Executive Vice President & Chief Financial Officer Summary Questions & Answers
Slide 4: Fourth Quarter & Fiscal Year 2013 Highlights
FOURTH QUARTER & FISCAL YEAR 2013 Highlights
Slide 5: Fourth Quarter & Fiscal Year 2013 Highlights
FOURTH QUARTER & FISCAL YEAR 2013 Highlights Effectively executing strategic plan as we continue to de-risk the balance sheet and focus efforts on strengthening our core franchise across our three geographies Asset Quality: Remains our top priority… NPAs, down $513 million, or 41%, compared to FYE 2
Slide 6: Profitability and Asset Quality
Profitability Net income of $14.8 million, or $0.07 per diluted share, including $2.5 million for attorneys’ fees awarded to the counterparty on the Lehman Brothers litigation and $1.4 million in branch consolidation and restructuring expenses. Adjusted net income of $18.5 million, excluding the afo
Slide 7: Fourth Quarter 2013 Highlights: Loan Portfolio
Fourth Quarter 2013 Highlights: LOAN PORTFOLIO Strong origination activity at $972 million for 4Q 13: -Residential mortgages originations declined due to a decrease in consumer demand in our main market. -Anticipating a more challenging market environment in Puerto Rico and have planned accordingly
Slide 8: Fourth Quarter Highlights: Deposit Mix
Continued focus on deposit growth strategy; brokered CDs were reduced $38.5 million during 4Q 2013. Excluding government deposits which declined $53 million, core were up $17.4 million. We achieved this while reducing the cost of deposits net of brokered from 0.79% to 0.77%. We are prepared for add
Slide 9: Fourth Quarter & Fiscal Year 2013 Results of Operations
FOURTH QUARTER & FISCAL YEAR 2013 Results of Operations
Slide 10: Results of Operations
FOURTH QUARTER & FISCAL YEAR 2013 Results of Operations Interest income162,690$ 162,203$ 487 $165,054 $ Interest expense30,031 31,298 (1,267) 39,423 Net interest income132,659 130,905 1,754 125,631 Provision for loan and lease losses22,969 22,195 774 30,466 Non-interest income18,378 15,968 2,410 20,
Slide 11: Revenue & Margin Expansion
Net Interest Income NIM (GAAP)3.913.964.044.204.25 Results of Operations: REVENUE & MARGIN EXPANSION NIM expanded 5 basis points, while net interest income increased $1.8 million compared to Q3 13. NIM increased 34 basis points compared to Q4 12. Net interest income increased $1.8 million in the fou
Slide 12: Cost of Funds
Results of Operations: COST OF FUNDS Cost of total deposits, excluding brokered CDs, decreased to 0.77% from 0.79%. The average rate paid on non-brokered deposits, including interest-bearing checking accounts, savings and retail CDs, remained relatively flat, declining by 1 basis point to 0.89% duri
Slide 13: Non-Interest Income
Results of Operations: NON-INTEREST INCOME* Excluding the equity in earnings / (losses) of unconsolidated entities (related to investment in CPG/GS) non-interest income increased $2.4 million compared to 3Q 2013, due to: -$2.1 million recovery in fair value adjustments on commercial loans held for s
Slide 14: Operating Expenses
Results of Operations: OPERATING EXPENSES Increase of $5.7 million in credit related expenses, mostly valuation adjustments in OREO properties. $2.5 million loss contingency related to attorneys’ fees granted by the court to Barclays Capital in connection with the denial of the Summary Judgment . $0
Slide 15: Asset Quality
2010 2011 2012 2013 15 Results of Operations: ASSET QUALITY NPAs are down over $513 million, or 41%, compared to Q4 12. Total NPLs are also down $427 million, or 44%, since Q4 12. Commercial NPLs are being carried at 53.9% of unpaid principal balance, net of specific reserves. NPA’s for the quarter
Slide 16: Net Charge-Offs & Allowance Coverage
Results of Operations: NET CHARGE-OFFS & ALLOWANCE COVERAGE ($ in millions) Total net charge-offs for 4Q 2013 were $26.5 million, or 1.10% of average loans. The bulk loan sales completed in the first two quarters and the transfer of loans to held for sale in the first quarter added $98.0 million and
Slide 17: Capital Position
Results of Operations: CAPITAL POSITION Total stockholders’ equity amounted to $1.2 billion as of December 31, 2013, a decrease of $4.7 million from September 30, 2013, driven by a decrease of $20.3 million in other comprehensive income mainly attributable to declines in the value of U.S. agency MBS
Slide 18: Fourth Quarter Highlights: PR Government Exposure
Fourth Quarter Highlights: PR GOVERNMENT EXPOSURE ($ in millions) Total asset exposure to the Puerto Rico Government as of December 31, 2013 was approximately $470 million. In addition, there is $205 million of indirect exposure to the Tourism Development Fund supporting hotel projects. Total Govern
Slide 19: Fourth Quarter & Fiscal Year 2013 Q&A
FOURTH QUARTER & FISCAL YEAR 2013 Q&A
Slide 20: Exhibits
EXHIBITS
Slide 21: Select Financial Data: 2013 vs. 2012
($ in millions; except per share data) Select Financial Data: 2013 VS. 2012 FINANCIAL HIGHLIGHTS FY 2013 FY 2012 Variance Net income (loss) (164.5) $ 29.8$ (652%) Adjusted Net income 45.4 $ 29.8 $ 52%Adjusted Pre-tax, pre-provision income183.6$ 178.5$ 3% Net Interest Margin (GAAP) 4.11% 3.64% 13% No
Slide 22: Fourth Quarter Key Margin Drivers
Results of Operations: FOURTH QUARTER KEY MARGIN DRIVERS Q4 vs. Q3 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(732)$ 0.30%2,075$ Average loans & lease
Slide 23: Select Financial Information
Select Financial Information (In thousands, except per share information)Year Ended December 31, 2013 As Reported (GAAP)Bulk Sales Transaction Impact Write-off collateral pledged to Lehman and related contingency for attorneys' fees Year Ended December 31, 2013 Adjusted (Non-GAAP)Year Ended December
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 contains 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 operations
Slide 25: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Basis of Presentation - Use of Non-GAAP Financial Measures This presentation contains 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 operations
Slide 26: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Basis of Presentation - Use of Non-GAAP Financial Measures This presentation contains 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 operations