First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (November 2016)
27 slides from First Bancorp. New's investor presentation, Nov 30, 2016
Slide 1: First BanCorp Investor Presentation
First BanCorp Investor Presentation November 28, 2016 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” concerning the Corporation’s future economic, operating and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes,” “estimates” and similar expre
Slide 3: Compelling Value Proposition
Compelling Value Proposition Turnaround well underway highlighted by improving operating performance. Successfully navigating challenging operating environment; capturing market share and increasing profitability. Experienced, cohesive leadership team committed to enhancing shareholder value and mai
Slide 4: Puerto Rico Background and Update
Puerto Rico Background and Update The Puerto Rico economy had historically trailed the US economy, however this was not the case during this past cycle. Nonetheless, the Puerto Rico economy continues to benefit from US economic activity trends Puerto Rico’s current recession has lasted longer than a
Slide 5: Franchise Overview
Franchise Overview Founded in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida. ~2,650 FTE employees(1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share. Florida presen
Slide 6: Timeline of key events since 2010
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 Preferred Stock for Common. Feb 2011: Sale of non-performing loans with book value of $269 million. Feb-April
Slide 7: Franchise Positioning
Franchise Positioning Well-positioned Puerto Rico institution in a consolidating market Source: PR Market Share Report prepared with data provided by the Commissioner of Financial Institutions of Puerto Rico as of 6/30/16. 1) Puerto Rico only. 2) Calculated as institution bank branches within a mile
Slide 8: Diversified Business Model Across Regions
Diversified Business Model Across Regions Consumer Banking Mortgage Banking Commercial Lending Focus on small to middle market commercial and corporate borrowers across FBP’s footprint. Complimented by full suite of deposit and business products. Balanced risk/return profile to manage concentration
Slide 9: Diversity in Core Franchise
Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities. Line of business diversification: Commercial represents 43%, residential represents 37% and consumer represents 20% of the total
Slide 10: Favorable Funding Mix
Total Deposit Composition (%) Core Deposits(1) ($ millions) 1) Core deposits are total deposits excluding brokered CDs. Non-brokered deposits, excluding government deposits, increased $134 million YTD 2016. Reliance on brokered deposits declined $539 million YTD 2016. Puerto Rico non-brokered deposi
Slide 11: Loan Originations and Loan Portfolio
Loan Originations(1) ($ millions) Loan Portfolio ($ millions) $880 Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Loan Portfolio (3Q 2016 vs. 2Q 2016): The loan portfolio increased $12 million net of charge-offs. The performing portfolio increased $32 million. Comme
Slide 12: Non-Performing Assets
Non-Performing Assets ($ millions) Excluding Puerto Rico government exposure, inflows have remained stable and non-performing assets have declined $173 million since 2014. Organic resolution plan focused on government exposures and large REO, which is approximately 48% of non-performing assets. Sign
Slide 13: Proactively Managing Asset Quality
Proactively Managing Asset Quality Quarterly Non-Performing Loan Migration Trends ($ in millions) Residential Commercial Commercial & Mortgage Mortgage Industrial Construction Consumer Total Beginning balance $ 164.4 $ 200.4 $ 154.4 $ 52.5 $ 26.5 $ 598.2 Plus: Additions to non-performing 26.1 9.0 3.
Slide 14: Puerto Rico Government Exposure
Puerto Rico Government Exposure As of September 30, 2016, we had $325.9 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $336.5 million as of June 30, 2016. Available-for-sale investment portfolio outstanding principal of $65.6 million
Slide 15: Stable Core Performance in Challenging Environment
Stable Core Performance in Challenging Environment Pre-tax pre-provision income of $50.2 million(2) average 4 quarters of $51 million. Replacement of NPLs with performing loans should reduce provisioning needs. Future earnings potential with a reduction in costs associated with managing NPLs and ORE
Slide 16: 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 17: 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 18: Stronger Franchise: Proven Success Implementing Strategic Plan
Stronger Franchise: Proven Success Implementing Strategic Plan Turnaround well underway highlighted by improving operating performance. Successfully navigating challenging operating environment; capturing market share and increasing profitability. Experienced, cohesive leadership team committed to e
Slide 19: Exhibits
Exhibits
Slide 20: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (11/25/16): $6.47 Shares Outstanding (as of October 31, 2016): 217,419,933 Market Capitalization (11/25/16): $1,407 million 1 Yr. Average Daily Volume: 870,636 Price (11/25/16) to Tangible Book (9/30/16): 0.81x Includes the U.S. Treasury w
Slide 21: Third Quarter 2016 Highlights
Third Quarter 2016 Highlights Franchise Overview: Profitability Net income of $24.1 million, or $0.11 per diluted share, compared to $22.0 million in 2Q 2016. Net interest income declined $2.0 million, due to lower loan volumes and prepayments on securities. Non-interest income increased $6.4 millio
Slide 22: Third Quarter Financial Highlights
Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information CET 1 Ratio Tier 1 Leverage 17.64% 13.04% 17.12% 12.34% 0.52% 0.70% 16.63% 12.41%
Slide 23: Key Highlights: Net Interest Income
Key Highlights Net Interest Income ($ millions) GAAP NIM increased 5 basis points to 4.06%, due to the use of cash balances to repay maturing brokered CDs and repurchase agreements. Net interest income decreased $2.0 million in 3Q 2016. This decrease was mainly due to: A $1.7 million decrease in int
Slide 24: Results of Operations: Operating Expenses
Results of Operations: Operating Expenses Non-interest expenses decreased by $1.2 million in 3Q 2016 to $88.3 million, due to: A $1.3 million decrease in credit related expenses. $0.7 related to lower write-downs in OREO and $0.6 million decrease in expenses related to troubled loan resolution and m
Slide 25: Key Highlights: Net Charge-Offs
Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 3Q 2016 were $42 million, an annualized 1.90% of average loans, compared to $25 million in 2Q 2016. Approximately $13.7 million of the charge-offs recorded in the third quarter is related to loans guaranteed by the Puerto Rico Tou
Slide 26: 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 27: 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
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