First Bank · NASDAQ:FRBA
First Bank — Q1 2023 Earnings Presentation
19 slides from First Bank's earnings presentation, Apr 27, 2023
Slide 1: Financial Results 1Q 2023
FINANCIAL RESULTS 1Q 2023 |1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe” and similar express
Slide 3: Agenda
AGENDA 1Q 2023 Quarter Highlights Aurelio Alemán, President and Chief Executive Officer 1Q 2023 Results of Operations Orlando Berges, Executive Vice President and Chief Financial Officer Questions and Answers |3
Slide 4: First Quarter 2023 Performance Highlights
FIRST QUARTER 2023 PERFORMANCE HIGHLIGHTS ▪ Net income of $70.7 million ($0.39 per diluted share), compared to $73.2 million ($0.40 per diluted share) in 4Q 2022 ▪ Return on average assets (“ROAA”) remains strong at 1.55% Profitability ▪ On a non-GAAP basis, pre-tax, pre-provision income of $118.1 m
Slide 5: Balance Sheet Metrics – Loan Portfolio
FIRST QUARTER 2023 BALANCE SHEET METRICS – LOAN PORTFOLIO Loan Portfolio - $MM Commercial Loan Portfolio Distribution - $MM Exposure at Repricing $11,565 $11,593 $5,211 / Maturity Date $11,126 $11,229 $11,311 $23 $12 $12 $15 Loans HFS $28 C&I 2023-2024 $90 $2,354 $2,857 Commercial $5,238 $5,211 CRE
Slide 6: Balance Sheet Metrics – Deposits and Liquidity
FIRST QUARTER 2023 BALANCE SHEET METRICS – DEPOSITS AND LIQUIDITY Total Deposits (excluding Brokered CDs) - $MM Composition of Deposit Portfolio vs. Unused Liquidity - $MM(2) Cash & Equivalents Free Liquid Securities $17,250 $17,066 FHLB Availability $16,524 $16,038 $15,799 $15,799 Public Funds $2,7
Slide 7: Investment Merits and Franchise Highlights
INVESTMENT MERITS AND FRANCHISE HIGHLIGHTS Uncertain global macro mitigated by strong tailwinds in Puerto Rico Franchise Highlights ▪ Steady improvement in labor market dynamics ▪ Over $600 million in disaster relief funds have been disbursed in 2023 (83% above the same period in 2022) ▪ Well-divers
Slide 8: Results of Operations
RESULTS OF OPERATIONS EE! sancorp
Slide 9: Discussion of Results
FIRST QUARTER 2023 HIGHLIGHTS DISCUSSION OF RESULTS Income Statement Selected Financial Data 1Q 2023 4Q 2022 Variance 1Q 2022 1Q 2023 4Q 2022 Variance 1Q 2022 ($ in thousands, except per share data and ($ in thousands) financial ratios) Interest income $ 242,396 $ 233,452 $ 8,944 $ 197,854 Adjusted
Slide 10: Profitability Dynamics: Net Interest Income and Non-Interest Income
FIRST QUARTER 2023 HIGHLIGHTS PROFITABILITY DYNAMICS Net Interest Income ($MM) Non-Interest Income ($MM) 250 10 35 $32.9 $32.5 10 $30.9 $29.7 $29.6 $196.2 $207.9 $205.6 $200.9 30 200 $185.6 8 8 25 $18.3 150 6 $17.4 $16.5 $17.9 $20.2 6 4.00% 4.31% 4.37% 4.34% 20 3.81% 100 4 15 4 $5.2 $4.1 $3.4 $2.6 $
Slide 11: Profitability Dynamics: Non-Interest Expenses and Efficiency Ratio
FIRST QUARTER 2023 HIGHLIGHTS PROFITABILITY DYNAMICS Non-Interest Expenses ($MM) Efficiency Ratio (%) Credit Related Payroll Related Other Operating Expenses $115.2 $115.3 48.8% 47.7% 48.5% 48.0% 49.4% $112.9 $106.7 $108.3 120 9.5 115 $0.2 9.0 $0.2 8.5 110 8.0 105 7.5 100 7.0 95 $52.9 6.5 90 $52.2 $
Slide 12: Asset Quality
FIRST QUARTER 2023 HIGHLIGHTS ASSET QUALITY Non-Performing Assets - $MM Repossessed Assets and Other Loans HFI NPAs/Assets Repossessed Assets and Other Residential Commercial Consumer Construction $156 $156 $147 $147 16 0 1.0 5 16 0 10 15 5 15 0 $143 1.0 0 15 5 15 0 $143 $129 $129 14 5 $129 14 5 14
Slide 13: ACL Levels and Capital Position
FIRST QUARTER 2023 HIGHLIGHTS ACL LEVELS AND CAPITAL POSITION Evolution of ACL ($ in Millions) and Capital Ratios (%) ACL on Loans to Total Loans (%) 20.2 19.7 19.4 19.2 19.0 300 $271 $273 $278 17.5 17.5 $260 $264 17.0 17.0 16.7 16.7 16.5 16.5 $248 $9 $4 $9 $4 $8 $4 16.3 16.3 250 $4 $13 $1 $10 $2 7.
Slide 14: Exhibits
EE! sancorp EXHIBITS 114
Slide 15: Puerto Rico Government Exposure
FIRST QUARTER 2023 HIGHLIGHTS PUERTO RICO GOVERNMENT EXPOSURE Government Loans Government Deposits Total Transaction Government Unit Source of Repayment Government Unit Time Deposits Total Outstanding Accounts Municipalities $ 64.2 $ 485.9 $ 550.1 PR Securities $ 3.3 Municipal Agency - - - Municipal
Slide 16: NPL Migration
FIRST QUARTER 2023 HIGHLIGHTS NPL MIGRATION March 31, 2023 Residential Commercial Commercial & Mortgage Mortgage Industrial Construction Consumer Total Beginning balance $ 42,772 $ 22,319 $ 7,830 $ 2,208 $ 14,806 $ 89,935 Plus: Additions to non-performing 2,081 544 7,470 127 19,524 29,746 Less: Non-
Slide 17: Use of Non-GAAP Financial Measures
FIRST QUARTER 2023 HIGHLIGHTS 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 that the presentation of these non-GAAP financial measures e
Slide 18: Use of Non-GAAP Financial Measures – Non-GAAP Disclosures
FIRST QUARTER 2023 HIGHLIGHTS USE OF NON-GAAP FINANCIAL MEASURES Non-GAAP Disclosures Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures en
Slide 19: Financial Results 1Q 2023
FINANCIAL RESULTS 1Q 2023 | 19