First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q4 2018 Earnings Presentation
28 slides from First Bancorp. New's earnings presentation, Jan 29, 2019
Slide 1: Financial Results 4Q & FYE 2018
Financial Results4Q & FYE 2018
Slide 2: Forward-Looking Statements
2 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 ar
Slide 3: Agenda
Agenda Fourth Quarter & FYE 2018 Highlights Aurelio Alemán, President & Chief Executive OfficerFourth Quarter & FYE 2018 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights: Fourth Quarter & FYE 2018 Highlights
Key Highlights 4 Fourth Quarter & FYE 2018 Highlights
Slide 5: 4Q 2018 and FYE 2018 Profitability and Loan Portfolio
4Q 2018 FYE 2018 Profitability Net income of $101.1 million, or $0.46 per diluted share. Adjusted 4Q 2018 net income of $44.4 million, or $0.20 per diluted share, compared to adjusted $34.7 million in 3Q 2018.Adjusted pre-tax, pre-provision (“PTPP”) income of $67.6 million, compared to $60.2 million
Slide 6: 4Q 2018 and FYE 2018 Core Deposits and Capital
4Q 2018 FYE 2018 Core Deposits 4Q 2018 deposits, net of government and brokered CDs, of $7.5 billion down $40.5 million compared to 3Q 2018. 4Q 2018 Puerto Rico deposits, net of government and brokered, increased $14.6 million, reflecting growth of $44.9 million in non-interest bearing deposits, off
Slide 7: Fourth Quarter 2018 Highlights: Capital Position
7 Fourth Quarter 2018 Highlights: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $2.0 billion as of December 31, 2018, an increase of $117.8 million from September 30, 2018, mainly driven by the earnings generated in the fourth quarter and the $22.5 million increase in th
Slide 8: Results of Operations: Fourth Quarter & FYE 2018 Results
8 Results of Operations Fourth Quarter & FYE 2018 Results
Slide 9: Results of Operations: Fourth Quarter Financial Highlights
9 Results of Operations: Fourth Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 10: Key Highlights: Net Interest Income
10 Key Highlights Net Interest Income ($ millions) Net interest income increased $5.2 million in 4Q 2018. This increase was mainly due to:A $2.6 million increase in interest income on commercial and construction loans, due to higher balances and upward repricing of variable rate commercial loans.A $
Slide 11: Results of Operations: Non-Interest Income
11 Non-interest income for 4Q 2018 amounted to $20.5 million, compared to $18.5 million for 3Q 2018. The $2.0 million increase was primarily due to: The 3Q 2018 effect of a $2.7 million net loss from sales of $24.5 million of non-performing commercial and construction loans held for sale. A $0.5 mil
Slide 12: Results of Operations: Non-interest Expenses
12 Results of Operations: Non-interest Expenses Non-interest expenses decreased by $0.2 million in 4Q 2018 to $90.7 million due to:A $1.0 million decrease in Other, mainly related to quarterly revisions to the reserve for operational lossesA $0.2 million decrease in occupancy and equipment costs. Th
Slide 13: Results of Operations: Asset Quality, Non-Performing Assets
13 Non-Performing Assets ($ millions) Sale of a $27.0 million construction NPL held for sale in the Virgin Islands. A $9.4 million decrease in non-performing residential mortgage loans driven by loans brought current, charge-offs, collections, and foreclosures.Commercial and construction loans colle
Slide 14: Results of Operations: Net Charge-Offs
14 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 4Q 2018 were $11.9 million, or an annualized 0.54% of average loans, compared to $33.0 million, or an annualized 1.52% of average loans, in 3Q 2018. The $21.1 million reduction was primarily related to: $12.5 million in charge-offs t
Slide 15: Results of Operations: FYE 2018 Financial Highlights
15 Results of Operations: FYE 2018 Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 16: Fourth Quarter & FYE 2018 Results Q & A
16 Fourth Quarter & FYE 2018 Results Q & A
Slide 17: Fourth Quarter & FYE 2018 Results Exhibits
17 Fourth Quarter & FYE 2018 Results Exhibits
Slide 18: Puerto Rico Continues to Show Signs of Economic Recovery
Puerto Rico Continues to Show Signs of Economic Recovery Economic activity in the aftermath of both Hurricanes Irma and Maria has exceeded initial expectations and business opportunities have surfaced across most industries. Several drivers of economic activity in Puerto Rico continue to show signs
Slide 19: Fourth Quarter 2018 Highlights: Deposit Mix
19 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Continue improving deposit mix; noninterest bearing increased to 27% of total deposits. Fourth Quarter 2018 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $8,439
Slide 20: Fourth Quarter 2018 Highlights: Loan Portfolio
20 Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Our island is beginning to show signs of growth and we continue relying on our regional diversification: * Including refinancing and draws from existing rev
Slide 21: Fourth Quarter 2018 Highlights: PR Government Exposure
21 Fourth Quarter 2018 Highlights: PR Government Exposure ($ in millions) As of December 31, 2018, the Corporation had $214.7 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $221.4 million as of September 30, 2018. 89% of direct gover
Slide 22: NPL Migration
NPL MIGRATION (Sin 000) Beginning balance S$ 156,685 $ 129,769 S$ 36,341 $ 39,086 $ 21,664 $ 383,545 Plus: Additions to non-performing 15,959 573 19 : 11,601 28,422 Less: Non-performing loans transferred to OREO (6,939) (1,149) (1,301) (323) (228) (9,940) Non-performing loans charged-off (4,620) (3,
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 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 27: Use of Non-GAAP Financial Measures
27 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 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