First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q3 2020 Earnings Presentation
27 slides from First Bancorp. New's earnings presentation, Oct 30, 2020
Slide 1: Financial Results 3Q 2020
Financial Results 3Q 2020
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation may contain “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “believe” and similar expressions are meant to identify
Slide 3: Agenda
Agenda Third Quarter 2020 Highlights Aurelio Alemán, President & Chief Executive OfficerThird Quarter 2020 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights
Slide 5: Third Quarter Highlights
Third Quarter Highlights Improved Strategic Positioning Successful acquisition of Banco Santander Puerto Rico on September 1, 2020, securing FBP’s position as the 2nd largest banking institution in a consolidated market Fortress Balance Sheet Liquidity, reserve coverage and capital levels remain amo
Slide 6: Improved Strategic Positioning
Improved Strategic Positioning Source: S&P Global Market Intelligence, Company Filings. Market share data as of or for the quarter ending June 30, 2020, Commissioner of Financial Institutions of Puerto Rico. Creates a stronger competitor with greater customer penetration in Puerto Rico with 73 branc
Slide 7: Loan & Deposit Composition
Loan & Deposit Composition FBP Standalone Loan Portfolio BSPR Loan Portfolio FBP Loan Portfolio Commentary FBP Standalone Deposit Mix BSPR Deposit Mix FBP Deposit Mix Geographic distribution: 79% PR; 17% FL; 4% ECRNPA/Assets ratio of 1.57%NPL/Loans 1.69% Loan to deposit ratio 78%Lower cost of intere
Slide 8: Economic Recovery Underway
Economic Recovery Underway 1 Source: Fiscal Plan for Commonwealth of Puerto Rico May 27, 20202 United States Department of Labor. Bureau of Labor Statistics, Establishment Survey Government stimulus continues to play and important role in mitigating impact to businessesUnprecedented local and federa
Slide 9: Payment Deferral Programs
Payment Deferral Programs Relief Program Monitoring 9 ($ in millions) Jul Oct Jun May Mar Aug Apr Sep $85.1 $470.5 $1,311.2 $1,574.9 $1,467.5 $818.0 $556.8 $48.0 Puerto Rico $1.2 $45.9 $30.4 $54.3 $43.9 $48.4 $53.9 $14.9 ECR $0.0 $26.3 $94.8 $178.0 $220.8 $92.7 $224.1 $0.0 Florida #: 11k | $: 3,982
Slide 10: Fortress Balance Sheet
Fortress Balance Sheet Ample liquidity to drive loan demand as economy continues reopening effortsStrong reserve coverage on a well-diversified loan portfolioCapital ratios remain among the highest in the banking sector; pro forma capital ratios remain 600-800 basis points, or $800-900 million, abov
Slide 11: Strong Operating Metrics During Pandemic
Strong Operating Metrics During Pandemic $9,052 $9,405 $9,345 $2,551 $11,896 Loan Portfolio ($ in millions) Loan Originations($ in millions) Core Deposits($ in millions) $8,887 $10,086 $10,531 $4,117 $14,648 $887 $962 $1,053 Net Interest Income($ in millions) Pre-tax Pre-provision Income($ in millio
Slide 12: Results of Operations
Results of Operations
Slide 13: Third Quarter Highlights
Third Quarter Highlights ($ in thousands, except per share data) 13 FBP Standalone Acquired Operation Other Transactions Consolidated Results Net Interest Income 134,659 $ 14,037 $ - $ 148,696 $ 135,210 $ 13,486 $ Provision for Credit Losses 8,032 - - 8,032 39,014 (30,982) Provision for Acquired Non
Slide 14: Net Interest Income
Net Interest Income Key Highlights Net Interest Income ($ millions) 3Q 2020 net interest income increased by $13.5 million to $148.7 millionApproximately $14.0 million of the increase was related to the acquisition of BSPR which added $2.6 billion of loans and $1.1 billion of investment securities,
Slide 15: Non-Interest Income
Non-Interest Income Non-interest income for 3Q 2020 amounted to $29.9 million, compared to $20.9 million for 2Q 2020. The $9.0 million increase was primarily due to: A $5.3 million gain on sales of approximately $116.6 million of available-for-sale U.S. agencies MBS and $803.3 million of available-f
Slide 16: Non-Interest Expense
Non-Interest Expense Non-interest expenses amounted to $107.5 million in 3Q 2020, an increase of $17.7 million from $89.8 million in 2Q 2020Merger and restructuring costs associated with the acquisition of BSPR of $10.4 million for 3Q 2020, compared to $2.9 million for 2Q 2020 COVID-19 pandemic-rela
Slide 17: Significant ACL Levels
Significant ACL Levels Evolution of ACL ($ in millions) & ACL on Loans to Total Loans (%) The allowance for credit losses (ACL) on loans increased by $65 million during 3Q 2020 to $385 million$66 million of this increase was related to the CECL impact of the BSPR acquisition. $29 million impact was
Slide 18: Asset Quality
Asset Quality Non-Performing Assets ($ millions) Total nonaccrual loans decreased by $2.7 million to $201.3 million as of 3Q 2020, compared to $204.0 million as of 2Q 2020The decrease in NPAs was driven by:$7.3 million decrease in the OREO portfolio balance. The decrease was driven by sales of $6.9
Slide 19: Capital Ratios
Capital Ratios Total stockholders’ equity amounted to $2.2 billion as of September 30, 2020, an increase of $10.4 million from June 30, 2020. The increase was driven by earnings generated in the third quarter, partially offset by common and preferred stock dividends declared in the second quarter to
Slide 20: Exhibits
Exhibits
Slide 21: Third Quarter 2020 Highlights: PR Government Exposure
Third Quarter 2020 Highlights: PR Government Exposure ($ in millions) As of September 30, 2020, the Corporation had $400.3 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $203.5 million as of June 30, 202084% of direct government expo
Slide 22: Third Quarter 2020 Highlights: NPL Migration
($ in 000) Third Quarter 2020 Highlights: NPL Migration 22
Slide 23: Use of Non-GAAP Financial Measures
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 fina
Slide 24: Use of Non-GAAP Financial Measures
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 fina
Slide 25: Use of Non-GAAP Financial Measures
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 fina
Slide 26: Use of Non-GAAP Financial Measures
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 fina
Slide 27: Use of Non-GAAP Financial Measures
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 fina