First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q4 2019 Earnings Presentation
28 slides from First Bancorp. New's earnings presentation, Jan 28, 2020
Slide 1: Financial Results Fourth Quarter & Fiscal Year 2019
Financial ResultsFourth Quarter & Fiscal Year 2019
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation may contain “forward-looking statements” concerning First BanCorp.’s (the “Corporation”) future economic, operational and financial performance. “Forward-looking statements” include, without limitation, statements relating to the impact the Corporation
Slide 3: Agenda
Agenda Fourth Quarter & FY 2019 Highlights Aurelio Alemán, President & Chief Executive OfficerFourth Quarter & FY 2019 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Fourth Quarter & FY 2019 Highlights
Fourth Quarter & FY 2019 Highlights
Slide 5: Fourth Quarter 2019 Highlights
5 Fourth Quarter 2019 Highlights Profitability Net income of $36.4 million, or $0.16 per diluted share. Adjusted 4Q 2019 non-GAAP net income of $42.8 million, or $0.19 per diluted share, compared to adjusted $45.1 million in 3Q 2019.Adjusted pre-tax, pre-provision (“PTPP”) income of $72.1 million, c
Slide 6: Year-over-Year Improvement in All Key Franchise Metrics
Year-over-Year Improvement in All Key Franchise Metrics 6 Adjusted Net Income1($ in mm) Net Interest Income($ in mm) Adjusted PTPP Income1($ in mm) +21% +14% Loan Originations2($ in billions) +24% Core Deposits3($ in billions) +8% NPAs($ in mm) -32% TBV/Share1 +9% Brokered CDs($ in mm) -22% 1 See Ex
Slide 7: Results of Operations
Results of Operations
Slide 8: Results of Operations: Fourth Quarter Highlights
8 Results of Operations: Fourth Quarter Highlights ($ in thousands, except per share data) Select Financial Information
Slide 9: Net Interest Income Key Highlights
9 Key Highlights Net Interest Income ($ millions) Net interest income decreased $4.5 million in 4Q 2019. This decrease was mainly due to:A $5.4 million decrease in interest income on commercial and construction loans, primarily due to the effect in 3Q 2019 of the $3.0 million accelerated discount ac
Slide 10: Results of Operations: Non-Interest Income
10 Non-interest income for 4Q 2019 amounted to $24.4 million, compared to $21.4 million for 3Q 2019. The $3.0 million increase was primarily due to: A $2.1 million gain from the sale of a nonaccrual commercial mortgage loan held for sale.The 3Q 2019 effect of a $0.5 million OTTI charge on private la
Slide 11: Results of Operations: Non-interest Expenses
11 Results of Operations: Non-interest Expenses Non-interest expenses increased by $9.5 million in 4Q 2019 to $102.3 million due to a $10.3 million increase in merger and restructuring costs in connection with the pending acquisition including a $3.4 million charge related to the voluntary separatio
Slide 12: Results of Operations: Asset Quality, Non-Performing Assets
12 Non-Performing Assets ($ millions) A $7.9 million decrease in nonaccrual commercial and construction loans, including the sale of a $6.7 million nonaccrual commercial mortgage and $6.2 million in collection efforts and loans brought current. These were offset by the inflow of a $6.0 million const
Slide 13: Results of Operations: Net Charge-offs
13 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 4Q 2019 were $18.9 million, or an annualized 0.84% of average loans, compared to $13.8 million, or an annualized 0.61% of average loans, in 3Q 2019. The increase of $5.1 million in net charge-offs was mainly related to a $2.7 million
Slide 14: Results of Operations: FY 2019 Financial Highlights
14 Results of Operations: FY 2019 Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 15: Exhibits
Exhibits
Slide 16: Fourth Quarter 2019 Highlights: Loan Portfolio
16 Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Healthy origination activity continues to support loan portfolio: * Including refinancing and draws from existing revolving and non-revolving commitments. F
Slide 17: Fourth Quarter 2019 Highlights: Deposit Mix
17 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Continue improving deposit mix; core deposits increased over $260 million in 4Q 2019. Fourth Quarter 2019 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $8,439 $
Slide 18: Fourth Quarter 2019 Highlights: Capital Position
18 Fourth Quarter 2019 Highlights: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $2.2 billion as of December 31, 2019, an increase of $27.5 million from September 30, 2019. The increase was mainly driven by the earnings generated in the fourth quarter and a $1.6 million
Slide 19: Fourth Quarter 2019 Highlights: PR Government Exposure
19 Fourth Quarter 2019 Highlights: PR Government Exposure ($ in millions) As of December 31, 2019, the Corporation had $204.6 million of direct exposure to the Puerto Rico Government, compared to $204.8 million as of September 30, 2019. 89% of direct government exposure is to municipalities, which a
Slide 20: NPL Migration
NPL Migration A First (Sin 000) = SS Beginning balance $ 127,040 $ 49,431 $ 20,725 $ 6,358 § 19,579 $ 223,133 tt ii eae ‘as ES aan an ize a wun 6x) aj eee pei cece om) te Oe) Lows retumed to acrnalsiatus/clectons/ sigs (6745) st)—«4905)—«(B).«= 4). 726) Tessie ostaeananarae Sanaa 7 a Tati tara lacs
Slide 21: Use of Non-GAAP Financial Measures
21 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f
Slide 22: Use of Non-GAAP Financial Measures
22 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f
Slide 23: Use of Non-GAAP Financial Measures
23 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f
Slide 24: Use of Non-GAAP Financial Measures
24 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f
Slide 25: Use of Non-GAAP Financial Measures
25 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f
Slide 26: Use of Non-GAAP Financial Measures
26 Use of Non-GAAP Financial Measures Basis of PresentationUse of Non-GAAP Financial Measures To supplement the Corporation’s financial statements presented in accordance with GAAP, the Corporation uses, and believes that investors would benefit from disclosure of, non-GAAP financial measures that r
Slide 27: Use of Non-GAAP Financial Measures
27 Use of Non-GAAP Financial Measures Basis of PresentationUse of Non-GAAP Financial Measures To supplement the Corporation’s financial statements presented in accordance with GAAP, the Corporation uses, and believes that investors would benefit from disclosure of, non-GAAP financial measures that r
Slide 28: Use of Non-GAAP Financial Measures
28 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f