First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (May 2018)
32 slides from First Bancorp. New's investor presentation, May 15, 2018
Slide 1: First BanCorp Investor Presentation May 2018
First BanCorp Investor Presentation May 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
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 are
Slide 3: Compelling Value Proposition
Compelling Value Proposition Our business model is diverse and scalable by segment (commercial, residential and consumer) and by unique markets (Puerto Rico, Southeast Florida & Eastern Caribbean). Our equity is valued at 90% of TBV (5/11/18) and at below 50% of the SNL bank index (208% of TBV). Our
Slide 4: Franchise Overview
Franchise Overview Founded in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida. ~2,555 FTE employees(1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share. Florida presen
Slide 5: Franchise Positioning
Franchise Positioning Well-positioned Puerto Rico institution in a consolidating market Well-positioned Puerto Rico institution in a consolidating market Source: PR Market Share Report prepared with data provided by the Commissioner of Financial Institutions of Puerto Rico as of 12/31/17. 1) Puerto
Slide 6: Diversified Business Model Across Regions
Diversified Business Model Across Regions Consumer Banking Mortgage Banking Commercial Lending Focus on small to middle market commercial and corporate borrowers across FBP’s footprint. Complimented by full suite of deposit and business products. Balanced risk/return profile to manage concentration
Slide 7: Diversity in Core Franchise
Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities. Line of business diversification: Commercial represents 42%, residential represents 38% and consumer represents 20% of the total
Slide 8: Favorable Funding Mix
1) Core deposits are total deposits excluding brokered CDs. Favorable Funding Mix Total Deposit Composition (%) Core Deposits(1) ($ millions) Non-brokered deposits, excluding government deposits, increased $195 million during 1Q 2018. Reliance on brokered deposits declined $194 million during 1Q 201
Slide 9: Geographic Diverse Business Model Sustains Portfolio
Geographic Diverse Business Model Sustains Portfolio 1) Including refinancing and draws from existing revolving and non-revolving commitments. Loan Originations(1) ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Despite a chal
Slide 10: First Quarter 2018 Highlights
First Quarter 2018 Highlights Profitability 1Q 2018 net income of $33.1 million, or $0.15 per diluted share, compared to $24.2 million in 4Q 2017. Adjusted pre-tax, pre-provision income of $60.7 million, compared to $53.9 million for 4Q 2017. Net interest income increased $2.4 million compared to 4Q
Slide 11: Stable Core Performance in Challenging Environment
Stable Core Performance in Challenging Environment Pre-tax pre-provision income of $60.7 million(1) average 4 quarters of $55.8 million. Replacement of NPLs with performing loans should reduce provisioning needs. Future earnings potential with a reduction in costs associated with managing NPLs and O
Slide 12: Proactively Managing Asset Quality
Proactively Managing Asset Quality Commercial NPLs (Includes HFS) NPA Composition Residential Consumer Construction Commercial Loans HFS REO & Repo $647 $641 $575 $651 Net Carrying Amount = % of unpaid principal balance net of reserves and accumulated charge-offs. $637 Non-Performing Assets ($ milli
Slide 13: Earnings Continue to Drive Significant Capital Formation
Earnings Continue to Drive Significant Capital Formation Tangible Book Value per Share Capital Ratios (%) Published DFAST results in October; under the severely adverse scenario, stressed capital ratios are significantly above regulatory capital requirements DFAST Projected Stressed Capital Ratios (
Slide 14: Executing for Earnings Growth
Executing for Earnings Growth Puerto Rico Opportunities for ongoing market share gains Largest opportunity on deposit products, electronic banking & transaction services. Growth in selected loan products for balanced risk/return to manage risk concentration and diversify income sources. FirstBank-br
Slide 15: Stronger Franchise: Proven Success Implementing Strategic Plan
Stronger Franchise: Proven Success Implementing Strategic Plan Our business model is diverse and scalable by segment (commercial, residential and consumer) and by unique markets (Puerto Rico, Southeast Florida & Eastern Caribbean). Our equity is valued at 90% of TBV (5/11/18) and at below 50% of the
Slide 16: Exhibits
Exhibits
Slide 17: Franchise History
Franchise History Our turnaround story De-Risking of Balance Sheet Building Capital Enhanced Franchise Value June 2010: Written Agreement with the FED and Consent Order with FDIC. July 2010: The U.S. Treasury exchanged TARP preferred for convertible preferred. August 2010: Exchange of 89% Perpetual
Slide 18: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (5/11/18): $7.45 Shares Outstanding (in 000’s as of 3/31/18): 216,390 Market Capitalization (5/11/18): $1.6 billion Average 3M Daily Volume: 1,660,812 Tangible Book Value per Share (3/31/18) $8.32 Price (5/11/18) to Tangible Book Value (3/
Slide 19: FBP Stock Price Performance
FBP Stock Price Performance 8/3/17 PEs complete 20mm share secondary 11/30/16 PEs complete 21mm share secondary 2/2/17 PEs complete 23mm share secondary 5/10/17 US Treasury sells remaining 10mm share TARP Investment 11/8/16 Presidential election FBP showed strong institutional demand for shares duri
Slide 20: Puerto Rico Bank Sector Price / TBV Performance
Puerto Rico Bank Sector Price / TBV Performance Puerto Rico bank valuations continue to trail the broader market. 1) Source: SNL Financial. Information November 1, 2016 to Present.
Slide 21: First Quarter 2018 Results
First Quarter 2018 Results
Slide 22: Results of Operations: First Quarter Financial Highlights
Results of Operations: First Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 23: Key Highlights: Net Interest Income
Key Highlights Net Interest Income ($ millions) Net interest income increased $2.4 million in 1Q 2018. This increase was mainly due to: A $2.2 million increase in interest income on investments securities tied to the full quarter effect of securities purchased toward the end of 4Q 2017 and a decreas
Slide 24: Key Highlights: Adjusted Non-Interest Income
Key Highlights Adj. Non-Interest Income** ($ millions) * Other for 1Q 2017 of -$1.2 million due to a $12.2 million OTTI charge on Puerto Rico Government securities. ** Non-GAAP adjusted non interest income – See Appendix page 32 for reconciliation. Non-interest income for 1Q 2018 amounted to $22.8 m
Slide 25: Results of Operations: Operating Expenses
Results of Operations: Operating Expenses Non-interest expenses increased by $0.9 million in 1Q 2018 to $86.0 million. Non-interest expenses for 1Q 2018 included $1.6 million in storm-related costs substantially all included in occupancy and equipment. For 4Q 2017 insurance deductibles related to da
Slide 26: Results of Operations: Net Charge-offs
Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 1Q 2018 were $26.5 million, or an annualized 1.21% of average loans, compared to $24.7 million, or an annualized 1.12% of average loans, in 4Q 2017. $9.7 million of the $26.5 million of net charge-offs were tied to loans transferred to
Slide 27: Results of Operations: Capital Position
Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.9 billion as of March 31, 2018, an increase of $8.0 million from December 31, 2017, mainly driven by the earnings generated in the first quarter, partially offset by a decrease in the fair value of a
Slide 28: NPLs Held for Investment - Migration
NPLs Held for Investment - Migration ($ in 000) Residential Mortgage Commercial Mortgage Commercial & Industrial Construction Consumer Total Beginning balance 178,291 $ 156,493 $ 85,839 $ 52,113 $ 16,818 $ 489,554 $ Plus: Additions to non-performing 26,962 3,568 2,773 196 16,345 49,844 Less: Non-per
Slide 29: First Quarter 2018 Highlights: PR Government Exposure
First Quarter 2018 Highlights: PR Government Exposure ($ in millions) As of March 31, 2018, the Corporation had $213.4 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $214.5 million as of December 31, 2017. 86% of direct government ex
Slide 30: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Basis of Presentation Use 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 fin
Slide 31: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Basis of Presentation Use 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 fin
Slide 32: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Basis of Presentation Use 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 fin