First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (December 2018)
34 slides from First Bancorp. New's investor presentation, Dec 17, 2018
Slide 1: First BanCorp Investor Presentation December 2018
First BanCorp Investor Presentation December 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes” and similar expressions are
Slide 3: Compelling Value Proposition
Compelling Value Proposition Our business model is diverse and scalable by segment (commercial, residential and consumer) and by unique markets (Puerto Rico, Southeast Florida & Eastern Caribbean). Our equity is valued at 101% of TBV (12/14/18) and below the SNL bank index (168% of TBV). Our capital
Slide 4: Franchise Overview
Franchise Overview Founded in Puerto Rico in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida ~2,625 FTE employees(1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share F
Slide 5: Franchise Positioning
Franchise Positioning Well-positioned Puerto Rico institution in a consolidating market 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 9/30/18. 1) Puerto R
Slide 6: Diversified Business Model Across Regions
Diversified Business Model Across Regions Strong Capital and Operational Foundation to Support Growth 1) Originations include purchases, refinancings, and draws from existing revolving and non-revolving commitments. Consumer Banking Attractive branch network across densely populated regions in Puert
Slide 7: Main Market Continues to Show Signs of Economic Recovery
Main Market Continues to Show Signs of Economic Recovery Financial industry performance in the aftermath of both Hurricanes Irma and Maria has exceeded original expectations and has triggered a re-assessment of our progress and corporate goals for 2018 to maximize our opportunities Several drivers o
Slide 8: Significant Inflow of Disaster-related Funds
Significant Inflow of Disaster-related Funds As a result of the extraordinary influx of both public and private funds, the economic backdrop for Puerto Rico and USVI has improved considerably Recent government reports suggest that approximately $82 billion in federal aid and private insurance disbur
Slide 9: Favorable Funding Mix
1) Core deposits are total deposits excluding brokered CDs. Favorable Funding Mix Total Deposit Composition (%) Core Deposits(1) ($ millions) Core deposits increased $603 million YTD 2018 Reliance on brokered deposits declined $477 million YTD 2018 Non-interest bearing deposits continue to grow and
Slide 10: Geographic Diverse Business Model Sustains Portfolio
Geographic Diverse Business Model Sustains Portfolio 1) Including refinancing and draws from existing revolving and non-revolving commitments. Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Our island is be
Slide 11: Improving Core Performance
Improving Core Performance Pre-tax pre-provision income of $60.2 million(1) average YTD 2018 of $60.8 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 Opportunities for income
Slide 12: Proactively Managing Asset Quality
Proactively Managing Asset Quality Commercial NPLs (Includes HFS) NPA Composition Residential Consumer Construction Commercial Loans HFS REO & Repo $621 $641 $523 $651 Net Carrying Amount = % of unpaid principal balance net of reserves and accumulated charge-offs. $637 Non-Performing Assets ($ milli
Slide 13: Earnings Continue to Drive Significant Capital Formation
Earnings Continue to Drive Significant Capital Formation Tangible Book Value per Share Capital Ratios (%) Equity is valued at 101% of TBV (12/14/18) and below the SNL bank index (168% of TBV) Capital ratios are among top 5% of banks above $10 billion in assets Capital ratios are approximately 1,000
Slide 14: Executing for Earnings Growth
Executing for Earnings Growth 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 income sources Dislocation in
Slide 15: Stronger Franchise: Proven Success Implementing Strategic Plan
Stronger Franchise: Proven Success Implementing Strategic Plan Our business model is diverse and scalable by segment (commercial, residential and consumer) and by unique markets (Puerto Rico, Southeast Florida & Eastern Caribbean). Our equity is valued at 101% of TBV (12/14/18) and below the SNL ban
Slide 16: Exhibits
Exhibits
Slide 17: Franchise History
Franchise History Our turnaround story De-Risking of Balance Sheet Building Capital Enhanced Franchise Value June 2010: Written Agreement with the FED and Consent Order with FDIC. July 2010: The U.S. Treasury exchanged TARP preferred for convertible preferred. August 2010: Exchange of 89% Perpetual
Slide 18: Well-diversified business model across three regions
Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities Line of business diversification: Commercial represents 42%, residential represents 37% and consumer represents 21% of the total l
Slide 19: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (12/14/18): $8.64 Shares Outstanding (in 000’s as of 9/30/18): 217,241 Market Capitalization (12/14/18): $1.9 billion Average 3M Daily Volume: 2,269,872 Tangible Book Value per Share (9/30/18) $8.52 Price (12/14/18) to Tangible Book Value
Slide 20: FBP 2-Year Stock Price Performance
FBP 2-Year Stock Price Performance 8/3/17 PEs complete 20mm share secondary 11/30/16 PEs complete 21mm share secondary 2/2/17 PEs complete 23mm share secondary 5/10/17 US Treasury sells remaining 10mm share TARP Investment 11/8/16 Presidential election FBP showed strong institutional demand for shar
Slide 21: Puerto Rico Bank Sector Price / TBV Performance
Puerto Rico Bank Sector Price / TBV Performance Puerto Rico bank valuations continue to trail the broader market. 1) Source: SNL Financial. Information November 1, 2016 to Present.
Slide 22: 2017 DFAST Results
2017 DFAST Results Under the 2017 Fed provided Severely Adverse Scenario, assuming a nine quarter average Real GDP Contraction of 6.35% and 17.0% Unemployment Rate in Puerto Rico, stressed capital ratios are 500 basis points above “Well Capitalized” regulatory capital requirements DFAST Projected St
Slide 23: Third Quarter 2018 Results
Third Quarter 2018 Results
Slide 24: Profitability and Third Quarter Highlights
Profitability 3Q 2018 net income of $36.3 million, or $0.16 per diluted share, compared to $31.0 million in 2Q 2018. Adjusted pre-tax, pre-provision income of $60.2 million, compared to $61.3 million for 2Q 2018. Net interest income increased $2.0 million compared to 2Q 2018. Loan Portfolio Loan ori
Slide 25: Third Quarter Financial Highlights
Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 26: Net Interest Income Key Highlights
Key Highlights Net Interest Income ($ millions) Net interest income increased $2.0 million in 3Q 2018. This increase was mainly due to: A $2.0 million increase in interest income on consumer loans primarily due to an increase of $63.5 million in average balances. Interest expense decreased due to a
Slide 27: Adjusted Non-Interest Income Key Highlights
Key Highlights Adj. Non-Interest Income* ($ millions) * Non-GAAP adjusted non interest income – See Appendix page 34 for reconciliation. Non-interest income for 3Q 2018 amounted to $18.5 million, compared to $20.5 million for 2Q 2018. Non-interest income for 3Q 2018 included $0.5 million gain from i
Slide 28: Results of Operations: Operating Expenses
Results of Operations: Operating Expenses Non-interest expenses increased by $0.7 million in 3Q 2018 to $90.9 million. Non-interest expenses for 3Q 2018 included $0.5 million ($0.7 million in 2Q 2018) in storm-related costs substantially all included in occupancy and equipment. Excluding theses item
Slide 29: Net Charge-Offs Key Highlights
Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 3Q 2018 were $33.0 million, or an annualized 1.52% of average loans, compared to $23.4 million, or an annualized 1.07% of average loans, in 2Q 2018. Included in the net charge-offs this quarter is a $12.5 million charge-off, or 0.57% of
Slide 30: NPL Migration
NPL MIGRATION (Sin 000) September 30, 2018 Beginning balance $162,539 $ 159,428 $ 76,887 $ 51,880 $ 22,953 $473,687 Pl ‘Additions to non-performing 16,480 2,326 850 1,388 10,940 31,984 Less: Non-performing loans transferred to OREO (6,302) (886) (4,192) (64) (8,434) Non-performing loans charged-off
Slide 31: PR Government Exposure
Third Quarter 2018 Highlights: PR Government Exposure ($ in millions) As of September 30, 2018, the Corporation had $221.4 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $213.2 million as of June 30, 2018. 87% of direct government ex
Slide 32: 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 used when management believes they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 33: 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 used when management believes they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 34: 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 used when management believes they will be helpful to an understanding of the Corporation’s results of operations or fin
First Bancorp — Investor Presentation (December 2018) on 6ix