First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (November 2017)
34 slides from First Bancorp. New's investor presentation, Nov 14, 2017
Slide 1: First BanCorp Investor Presentation November 2017
First BanCorp Investor Presentation November 2017 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 60% of TBV (11/10/17) and at one-third the group median (188% of TBV). Our cap
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. ~2,650 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 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 6: 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 6/30/17. 1) Puerto Rico only. 2) Calculated as institution bank branches within a mile
Slide 7: 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 8: 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 44%, residential represents 37% and consumer represents 19% of the total
Slide 9: Total Deposit Composition and Core Deposits
Total Deposit Composition (%) Core Deposits(1) ($ millions) 1) Core deposits are total deposits excluding brokered CDs. Non-brokered deposits, excluding government deposits, increased $15 million thru 3Q 2017. Reliance on brokered deposits declined $185 million YTD 3Q 2017. Non-interest bearing depo
Slide 10: Geographic Diverse Business Model Sustains Portfolio
Geographic Diverse Business Model Sustains Portfolio 1) Including refinancing and draws from existing revolving and non-revolving commitments. Loan Originations(1) ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Despite a chal
Slide 11: Profitability and Asset Quality
Profitability Net loss of $10.8 million, or $0.05 per diluted share, compared to income $28.0 million in 2Q 2017. Adjusted non-GAAP net income of $27.4 million, excluding nonrecurring items, compared to $27.7 million in 2Q 2017. Adjusted pre-tax, pre-provision income of $53.5 million, compared to $5
Slide 12: Third Quarter 2017 Highlights
Third Quarter 2017 Highlights Impacts of Hurricanes Irma & Maria Net Interest Income Reduction of $0.5 million on mortgage interest for migration to NPA Reduction of 5 basis points on net interest margin for additional liquidity. Provision for Loan and Lease Losses A $66.5 million additional qualita
Slide 13: Stable Core Performance in Challenging Environment
Stable Core Performance in Challenging Environment Pre-tax pre-provision income of $53.5 million(1) average 4 quarters of $55 million. Replacement of NPLs with performing loans should reduce provisioning needs. Future earnings potential with a reduction in costs associated with managing NPLs and ORE
Slide 14: Non-Performing Assets
Non-Performing Assets ($ millions) Impact of Hurricanes Irma and Maria in September interrupted collections & loss mitigation efforts and played a role in the increase in 3Q 17 NPAs. Disaster relief programs implemented to provide three month payment extensions to customers impacted by the storms. C
Slide 15: 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 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: 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 60% of TBV (11/10/17) and at one-third the g
Slide 18: Exhibits
Exhibits
Slide 19: Hurricanes Irma & Maria
Hurricanes Irma & Maria We were prepared for Hurricanes Irma and Maria; execution of contingency plans validated our operational strength and agility of our Institution. Our online technology service platforms remained operational for consumers and commercial clients during and after the storms. Man
Slide 20: Puerto Rico Update – Impact of Hurricanes Irma & Maria
Puerto Rico Update – Impact of Hurricanes Irma & Maria Source: www.status.pr Recovery of Critical Services
Slide 21: Impact of Hurricanes Irma & Maria
Impact of Hurricanes Irma & Maria Challenges Delay in electric power grid restoration will affect multiple industries and unemployment. Potential demographic risks. Industries that will suffer / prosper. How long for tourism industry to uptick and recover. Impact of property & business interruption
Slide 22: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (11/10/17): $4.77 Shares Outstanding (in 000’s as of 9/30/17): 216,175 Market Capitalization (11/10/17): $1.0 billion 1 Yr. Average Daily Volume: 1,607,3525 Tangible Book Value per Share (9/30/17) $8.21 Price to Tangible Book Value 058x On
Slide 23: FBP Stock Price Performance
FBP Stock Price Performance 8/3/17 PEs complete 20mm share secondary 11/30/16 PEs complete 21mm share secondary 2/2/17 PEs complete 23mm share secondary 5/10/17 US Treasury sells remaining 10mm share TARP Investment 11/8/16 Presidential election FBP showed strong institutional demand for shares duri
Slide 24: Puerto Rico Bank Sector Price / TBV Performance
Puerto Rico Bank Sector Price / TBV Performance Puerto Rico bank valuations continue to trail the broader market. 1) Source: SNL Financial. Information November 8, 2016 to Present.
Slide 25: Third Quarter 2017 Results
Third Quarter 2017 Results
Slide 26: Results of Operations: Third Quarter Financial Highlights
Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 27: Results of Operations: Non-GAAP, Adjusted Net Income
Results of Operations: Non-GAAP, Adjusted Net Income Select Financial Information
Slide 28: Key Highlights: Net Interest Income
Key Highlights Net Interest Income ($ millions) Net interest income decreased $1.1 million in 3Q 2017. This decrease was mainly due to: A $1.9 million decrease in interest income associated with a lower U.S. agency MBS premium amortization expense and lower average balances. A $1.4 million increase
Slide 29: Results of Operations: Operating Expenses
Results of Operations: Operating Expenses Non-interest expenses decreased by $3.5 million in 3Q 2017 to $85.6 million. Approximately $1.7 million of this reduction was due to idle time payroll and expected rental cost insurance recoveries, offset by $0.6 million of “Business Promotion tied to relief
Slide 30: Key Highlights: Net Charge-Offs
Key Highlights Net Charge-Offs ($ millions) Net charge-offs for the third quarter of 2017 were $17.6 million, or an annualized 0.80% of average loans, compared to $47.8 million, or an annualized 2.16% of average loans, in the second quarter of 2017. Allowance coverage ratio of 2.60% compared to 1.96
Slide 31: Proactively Managing Asset Quality
Proactively Managing Asset Quality Quarterly Non-Performing Loan Migration Trends ($ in millions)
Slide 32: Puerto Rico Government Exposure
Puerto Rico Government Exposure ($ in millions) As of September 30, 2017, the Corporation had $215 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $222 million as of June 30, 2017. 86% of direct government exposure is to municipalitie
Slide 33: 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 34: 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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