24 slides from First Bancorp. New's earnings presentation, Aug 2, 2012
Slide 1: Financial Results Second Quarter 2012
Exhibit 99.1 Financial Results Second Quarter 2012
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 Second Quarter 2012 Highlights: Aurelio Alemán, President & Chief Executive Officer Second Quarter Results of Operations: Orlando Berges, Executive Vice President & Chief Financial Officer Summary Questions & Answers 3
Slide 4: Second Quarter 2012 Highlights
SECOND QUARTER 2012 Highlights
Slide 5: $9.4 million of net income; Diluted EPS $0.05
Second Quarter 2012 Highlights: ACHIEVED PROFITABILITY $9.4 million of net income; Diluted EPS $0.05 st 1 quarter of profitability achieved since March 2009, through the implementation and execution of strategic plan. Focused on the following levers to return to profitability: Reduction of non-perfo
Slide 6: Taking advantage of opportunities within market
Second Quarter 2012 Highlights: MARKET OPPORTUNITIES Taking advantage of opportunities within market Puerto Rico showing signs of improvement; projected positive GNP growth of 0.9% for 2012 Growing core deposits through focus on enhancing relationships with responsive team and product offerings Tran
Slide 7: Second Quarter 2012 Highlights: Loan Portfolio Diversification
SecondQuarter2012Highlights: LOANPORTFOLIODIVERSIFICATION ($ in millions) Loan Portfolio $12,000 Implementing strategies to increase Consumer and 10,786 10,647 10,575 21 10,340 10,357 Residential Mortgage loan originations 14 16 44 60 $10,000 1,591 1,585 1,565 Strong origination activity in Q2 vs. Q
Slide 8: Acquisition of $406 million credit card portfolio
Second Quarter 2012 Highlights: CC ARDPORTFOLIO REDIT Acquisition of $406 million credit card portfolio On May 31, 2012, completed purchase of a $406 million FirstBank-branded consumer credit card portfolio from FIA Card Services, N.A. The portfolio consists of approximately 140,000 active credit ca
Slide 9: Second Quarter Highlights: Deposit Mix
Second Quarter Highlights: DEPOSIT MIX ($ in millions) Deposits, Net of Brokered CDs Total Deposit Composition $6,164 $6,176 $6,286 $6,434 $5,866 $6,500 487 584 520 481 Brokered CDs 481 35% 2,126 2,055 2,066 Interest 2,137 2,195 Bearing 915 963 959 57% 772 866 2,476 2,584 2,654 2,782 2,826 Non-inter
Slide 10: Second Quarter 2012 Results of Operations
SECOND QUARTER 2012 Results of Operations
Slide 11: Second Quarter 2012 Financial Highlights
Results of Operations: SECOND QUARTER 2012 FINANCIAL HIGHLIGHTS ($ in thousands, except per share data) Q2 2012 Q1 2012 Variance Interest income $ 153,652 $ 152,107 $ 1,545 Interest expense 44,947 50,241 (5,294) Net interest income 108,705 101,866 6,839 Provision for loan and lease losses 24,884 36,
Slide 12: Results of Operations: Revenue Growth and Margin Expansion
Results of Operations: REVENUE GROWTHM&ARGINEXPANSION Net interest income growth of 7% and 15% when compared to Q1 2012 and Q2 2011, respectively. Revenue growth due to: Growth in higher yield consumer loan segment including $406 million credit card portfolio acquisition in May 2012; Growth in core
Slide 13: Results of Operations: Cost of Funds
Results of Operations: COST OF FUNDS Cost of Deposits 2.00% The average rate paid on non-brokered 1.54% deposits, including interest-bearing 1.48% 1.39% checking accounts, savings and retail 1.25% 1.13% CDs, declined by 12 basis points to 1.35% 1.32% 1.23% 1.13% during the second quarter while 1.11%
Slide 14: Results of Operations: Asset Quality
Results of Operations: ASSET QUALITY ($ in millions) Non-performing Assets Loans Held for Sale Repossessed Assets & Other $1,790 $1,800 $1,701 $1,669 Non-performing Loans $1,562 $1,410 $1,390 $1,377 $1,337 $1,332 $1,308 Residential $ 341 $ 333 $ (8) (2%) Consumer 39 35 (4) (10%) C&I and CRE 508 495
Slide 15: Allowance coverage ratio of 4.4%
($ in millions) Net Charge-offs Total net charge-offs for 2Q 2012 were $51.7 million Construction or 2.03% of average loans on an annualized basis, a $90 $80 Commercial Real Estate $5.5 million increase compared to 1Q 2012: Commercial and Industrial $68 $68 Consumer – CRE loans net charge-offs were
Slide 16: Results of Operations: Capital Position
Resultsof Operations:CAPITALPOSITION TheCorporation’stotal stockholders’equity amountedto $1.45billion asof June30, 2012,an increaseof $15.9 million from March 31, 2012, driven by internal capital generation including the net income of $9.4 million The capital levels continue to be strong as First B
Slide 17: Second Quarter 2012 Summary
SECOND QUARTER 2012 Summary
Slide 18: Summary
Summary Strong capital position: – Total capital, Tier 1 capital and Leverage ratios of the Corporation of 17.3%, 16.0% and 12.5%, respectively. Provision for loan and lease losses of $25 million, down $11 million. Stable asset quality: – Non-performingassets- decreasedby $24 million. – Non-performi
Slide 19: Q&A
SECOND QUARTER 2012 Q&A
Slide 20: Exhibits
EXHIBITS
Slide 21: Results of Operations: Second Quarter Key Margin Drivers
Resultsof Operations:SECONDQUARTERKEYMARGINDRIVERS Q1 vs. Q2 Change in Average Interest Earning Assets & Interest Bearing Liabilities $ in % in Net Interest Average Average Income Volume Rate Changes Average loans & leases: Residential mortgage loans (6,359) (0.26%) (1,918) Construction loans (33,15
Slide 22: Use of Non-GAAP Financial Measures
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 operation
Slide 23: Use of Non-GAAP Financial Measures
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 operation
Slide 24: Use of Non-GAAP Financial Measures
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 operation