22 slides from First Bancorp. New's earnings presentation, May 3, 2013
Slide 1: First Quarter 2013 Financial Results
Financial Results First Quarter 2013 Financial Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” concerning First BanCorp’s (the “Corporation”) future economic performance. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “expect,” “anticipate,” “look forward,”
Slide 3: Agenda
Agenda First Quarter 2013 Highlights: Aurelio Alemán, President & Chief Executive Officer First Quarter Results of Operations: Orlando Berges, Executive Vice President & Chief Financial Officer Summary Questions & Answers 3
Slide 4: First Quarter 2013 Highlights
FIRST QUARTER 2013 Highlights
Slide 5: Profitability and Asset Quality Highlights
Profitability• Net loss of $72.6 million, or $0.35 per diluted share, reflecting a $68.0 million loss related to the bulk sale of assets and adjustments to the value of loans transferred to held for sale. • Adjusted net loss of $4.6 million, or $0.02 per diluted share, excluding the effect of the bu
Slide 6: First Quarter 2013 Highlights: Loan Portfolio
6 First Quarter 2013 Highlights: LOAN PORTFOLIO Strong origination activity at $802 million for Q1 13: - Residential mortgages increased $16 million; - Consumer loans $279 million: • Auto loans $146 million • Personal loans $46 million • Credit card utilization activity of $87 million - Commercial v
Slide 7: First Quarter Highlights: Deposit Mix
Continued focus on deposit growth strategy; deposits net of brokered CDs and excluding public funds, grew $145.6 million. We achieved this while reducing the cost of deposits net of brokered from 0.88% to 0.84%. Continued focus on cross-selling opportunities. Reduced reliance on brokered deposits: -
Slide 8: First Quarter 2013 Results of Operations
FIRST QUARTER 2013 Results of Operations
Slide 9: Bulk Sale Transaction
9 Results of Operations: BULK SALE TRANSACTION On March 28, 2013, completed the sale of adversely classified and nonperforming commercial and construction loans & OREO. Portfolio Characteristics: Unpaid principal balance (UPB) of $377.6 million Over 64% of the 454 loans within the pool had a balance
Slide 10: Income Statement Summary
Interest income 160,225 $ 165,054 $ (4,829) $ 152,107 $ Interest expense 35,732 39,423 (3,691) 50,241 Net interest income 124,493 125,631 (1,138) 101,866 Provision for loan and lease losses 111,123 30,466 80,657 36,197 Non-interest income 19,167 20,098 (931) 14,711 Equity in losses of unconsolidated
Slide 11: Revenue & Margin Expansion
11 Results of Operations: REVENUE & MARGIN EXPANSION NIM expanded 5 basis points, while net interest income remained relatively flat compared to Q4 12. NIM increased 76 basis points yearover- year. Net interest income declined $1.1 million in the first quarter due to: - $1.6 million decrease in net
Slide 12: Cost of Funds
12 Results of Operations: COST OF FUNDS Cost of total deposits net of brokered decreased to 0.84% from 0.88% in Q4 2012. The average rate paid on non-brokered deposits, including interest-bearing checking accounts, savings and retail CDs, declined by 3 basis points to 0.98% during the first quarter.
Slide 13: Asset Quality
1,790 1,701 1,669 1,562 1,410 1,390 1,377 1,337 1,332 1,251 1,259 1,238 1,087 $- $1,800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Loans Held for Sale Repossessed Assets & Other NPLs Held for Investment 2010 2011 2012 2013 13Results of Operations: ASSET QUALITY NPAs are down $703 million, or 39%, since
Slide 14: Net Charge-Offs & Allowance Coverage
14 Results of Operations: NET CHARGE-OFFS & ALLOWANCE COVERAGE ($ in millions) Total net charge-offs for Q1 2013 were $204 million, or 8.10% of average loans, consisting of: Bulk sale charges $98MM Charges for loans moved to held for sale, including those with signed agreements 35MM Charge-off assoc
Slide 15: Capital Position
15 Results of Operations: CAPITAL POSITION The Corporation’s total stockholders’ equity amounted to $1.40 billion as of March 31, 2013, a decrease of $81.0 million from December 31, 2012, driven by the net loss of $72.6 million and a decrease of $8.6 million in other comprehensive income due to lowe
Slide 16: Summary: Core Franchise Is Strong
16 Summary: CORE FRANCHISE IS STRONG Executing Strategic Plan: • Asset Quality: 12th Consecutive Quarter of reductions in NPAs, down $152 million or 12% compared to prior quarter. • Core Deposits: Increased $146 million this quarter. • NIM Improvement: Our cost of funding was down which helped impro
Slide 17: Q&A
FIRST QUARTER 2013 Q&A Taco
Slide 18: Exhibits
EXHIBITS Taco
Slide 19: First Quarter Key Margin Drivers
19 Results of Operations: FIRST QUARTER KEY MARGIN DRIVERS Q1 vs. Q4 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations $ ∆in % ∆ in Average Average Volume Rate Average total investments 99,334 $ (0.16%) (808) $ Average loans
Slide 20: Use of Non-GAAP Financial Measures
20 Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operat
Slide 21: Use of Non-GAAP Financial Measures
21 Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operat
Slide 22: Use of Non-GAAP Financial Measures
22 Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operat