22 slides from First Bancorp. New's earnings presentation, Oct 26, 2015
Slide 1: Financial Results 3Q 2015
Financial Results 3Q 2015 Exhibit 99.2
Slide 2: Agenda
Agenda Third Quarter 2015 Highlights Aurelio Alemán, President & Chief Executive Officer Third Quarter 2015 Results of Operations Orlando Berges, Executive Vice President & Chief Financial Officer Questions & Answers
Slide 3: Key Highlights: Third Quarter Results
Key Highlights Third Quarter Results
Slide 4: Profitability, Asset Quality, Core Deposits
Profitability Asset Quality Core Deposits Net income of $14.8 million, or $0.07 per diluted share. Pre-tax income for 3Q 2015 was $19.2 million compared to adjusted pre-tax income of $20.2 million for 2Q 2015, excluding the bulk sale, OTTI adjustments and some interim servicing costs from the Doral
Slide 5: Loan Originations and Loan Portfolio
Loan Originations* ($ millions) Loan Portfolio ($ millions) 2,820 3,011 3,332 3,328 3,330 169 154 153 197 179 2,027 1,983 1,937 1,899 1,862 4,327 4,145 4,092 3,870 3,946 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 $9,396 $9,339 $9,567 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 $917 $891 $777 Residential Mo
Slide 6: Total Deposit Composition and Core Deposits
Total Deposit Composition (%) Core Deposits* ($ millions) 2,814 2,841 3,203 3,139 3,079 2,111 2,092 2,225 2,194 2,189 1,246 1,263 1,390 1,346 1,438 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 * Core deposits are total deposits excluding brokered CDs. $6,640 $6,597 $7,269 Interest Bearing 63% Non- Intere
Slide 7: PR Government Exposure
Government Unit Time Deposits Transaction Accounts Total Government Unit Source of Repayment Total Outstanding Third Quarter Highlights: PR G OVERNMENT E XPOSURE Total outstanding exposure to the Puerto Rico Government was $402 million with a book value of $371 million as of September 30, 2015, down
Slide 8: Results of Operations
Results of Operations Third Quarter Results
Slide 9: Third Quarter Financial Highlights: Select Financial Information
Select Financial Information 3Q 2015 2Q 2015 Variance 3Q 2014 Select Financial Information Results of Operations: T HIRD Q UARTER F INANCIAL H IGHLIGHTS ($ in thousands, except per share data) Interest income 149,812 $ 151,632 $ (1,820) $ 156,662 $ Interest expense 24,883 25,155 (272) 28,968 Net int
Slide 10: Net Interest Income and Net Interest Margin
Key Highlights Net Interest Income ($ millions) 4.14% 4.18% 4.18% 4.18% 4.19% $127.7 $129.2 $125.6 $126.5 $124.9 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Net Interest Income ($) Net Interest Margin (GAAP %) Net interest income decreased $1.6 million in 3Q 2015. This decrease was mainly due to: o A $0
Slide 11: Cost of Funds: Cost of Deposits
Key Highlights Cost of Deposits (%) 0.83% 0.81% 0.77% 0.73% 0.74% 0.72% 0.70% 0.66% 0.61% 0.61% 0.50% 0.60% 0.70% 0.80% 0.90% 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Interest Bearing Deposits (%) Total Deposits (%) Cost of total deposits, excluding brokered CDs, remained flat at 0.61%. The average r
Slide 12: Non-Interest Income
Key Highlights Non-Interest Income* ($ millions) * Non interest income excludes equity losses of unconsolidated entities, OTTI, HFS bulk sale impact and bargain purchase gain. Excluding the $12.9 million OTTI charge on Puerto Rico Government debt securities and the $0.6 million pre-tax loss on a com
Slide 13: Operating Expenses
($ in millions) 3Q 2015 2Q 2015 % Change Results of Operations: O PERATING E XPENSES Non-interest expenses decreased by $9.5 million in 3Q 2015 to $93.3 million. 2Q 2015 expenses included: - $2.6 million acquisition and conversion costs related to the Doral transaction; and - $1.2 million of expense
Slide 14: FES SESS SSSI SSS SSS SSSSSS eee
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Slide 15: Slide 15
Slide 16: Capital Position: Capital Ratios
Capital Ratios (%) Results of Operations: C APITAL P OSITION Total stockholders’ equity amounted to $1.7 billion as of September 30, 2015, an increase of $32.7 million from June 30, 2015, mainly driven by net income of $14.8 million and an increase of $16.7 million in other comprehensive income due
Slide 17: Q & A
Q & A Third Quarter Results
Slide 18: Exhibits
Exhibits Third Quarter Results
Slide 19: Key Margin Drivers: Q3 vs. Q2 Change in Average Balances
Q3 vs. Q2 Change in Average Interest Earning Assets & Interest Bearing Liabilities Results of Operations: K EY M ARGIN D RIVERS * On a tax equivalent basis and excluding valuations $ in % in Average Average Volume Rate Average total investments (174,829) $ 0.06% (315) $ Average loans & leases: Resid
Slide 20: Slide 20
Slide 21: 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 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