First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q2 2018 Earnings Presentation
22 slides from First Bancorp. New's earnings presentation, Jul 25, 2018
Slide 1: Financial Results 2Q 2018
Financial Results2Q 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 Second Quarter 2018 Highlights Aurelio Alemán, President & Chief Executive OfficerSecond Quarter 2018 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights
Key Highlights 4 Second Quarter 2018 Highlights
Slide 5: Key Highlights: Profitability, Loans, Asset Quality, Deposits
Profitability 2Q 2018 net income of $31.0 million, or $0.14 per diluted share, compared to $33.1 million in 1Q 2018.Adjusted pre-tax, pre-provision income of $61.4 million, compared to $60.7 million for 1Q 2018. Net interest income increased $5.8 million compared to 1Q 2018. Loan Portfolio Loan orig
Slide 6: Loan Originations and Loan Portfolio
6 Loan Originations* ($ 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 revo
Slide 7: Total Deposit Composition and Core Deposits
7 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Core deposits experienced strong growth; noninterest bearing increased 15%, or $297 million. Second Quarter 2018 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $7
Slide 8: Highlights: Capital Position
8 Second Quarter 2018 Highlights: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.9 billion as of June 30, 2018, an increase of $24.6 million from March 31, 2018, mainly driven by the earnings generated in the first quarter, partially offset by a decrease in the fair va
Slide 9: Results of Operations
9 Results of Operations Second Quarter 2018 Results
Slide 10: Second Quarter Financial Highlights
10 Results of Operations: Second Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Key Highlights: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income increased $5.8 million in 2Q 2018. This increase was mainly due to:A $3.3 million increase in interest income on commercial and construction loans primarily due to the upward repricing of variable rate loans and interest collecte
Slide 12: Key Highlights: Adjusted Non-Interest Income
12 Key Highlights Adj. Non-Interest Income* ($ millions) * Non-GAAP adjusted non interest income – See Appendix page 22 for reconciliation. Non-interest income for 2Q 2018 amounted to $20.5 million, compared to $22.8 million for 1Q 2018. Non-interest income for 1Q 2018 included the $2.3 million gain
Slide 13: Results of Operations: Operating Expenses
13 Results of Operations: Operating Expenses Non-interest expenses increased by $4.2 million in 2Q 2018 to $90.2 million. Non-interest expenses for 2Q 2018 included $0.7 million ($1.6 million in 1Q 2018) in storm-related costs substantially all included in occupancy and equipment. Excluding theses i
Slide 14: Results of Operations: Asset Quality, Non-Performing Assets
14 Non-Performing Assets ($ millions) Inflows to non-performing loans were $105.2 million, an increase of $55.4 million, compared to inflows of $49.8 million in 1Q 2018. The increase was driven by the inflow of two large legacy commercial mortgage loans totaling $69.8 million tied to a commercial lo
Slide 15: Key Highlights: Net Charge-Offs
15 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 2Q 2018 were $23.4 million, or an annualized 1.07% of average loans, compared to $26.5 million, or an annualized 1.21% of average loans, in 1Q 2018.Allowance coverage ratio of 2.57% compared to 2.60% in 1Q 2018. The ratio of the allo
Slide 16: Q & A
16 Second Quarter 2018 Results Q & A
Slide 17: Exhibits
17 Second Quarter 2018 Results Exhibits
Slide 18: NPL Migration
NPL MIGRATION (Sin 000) Beginning balance $ 171,380 $ 142,392 $ 85,325 $ 53,968 $ 23,857 $ 476,922 “soon onnerie are nor tsa wi a a ee pa Sorte er rr re a nn ee nn ee aes aoc ede) : Beginning balance S$ 178,291 $ 156,493 $ 85,839 $ 60,403 $ 16,818 $ 497,844 — ee ee z Sees em ye ee Ea So my (ene) mam
Slide 19: Highlights: PR Government Exposure
19 Second Quarter 2018 Highlights: PR Government Exposure ($ in millions) As of June 30, 2018, the Corporation had $213.2 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $213.4 million as of March 31, 2018. 86% of direct government ex
Slide 20: Use of Non-GAAP Financial Measures
20 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 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