Slide 1: Financial Results 2Q 2024
Financial Results 2Q 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe” and similar express
Slide 3: Agenda
AGENDA 2Q 2024 Quarter Highlights Aurelio Alemán, President and Chief Executive Officer 2Q 2024 Results of Operations Orlando Berges, Executive Vice President and Chief Financial Officer Questions and Answers 3
Slide 4: Second Quarter 2024 Financial Performance Highlights
SECOND QUARTER 2024 Financial Performance Highlights ▪ Net income of $75.8 million ($0.46 per diluted share), compared to $73.5 million ($0.44 per diluted share) in 1Q 2024 ▪ Solid return on average assets (“ROAA”) of 1.61%, compared to 1.56% in 1Q 2024 Profitability ▪ On a non-GAAP basis, adjusted
Slide 5: Franchise Highlights and Operating Environment
FRANCHISE HIGHLIGHTS AND OPERATING ENVIRONMENT KEY HIGHLIGHTS POSITIVE ECONOMIC BACKDROP PR Economic Activity Index (EAI)(2) 100% dividend and ROAA: 1.61% CET1 Ratio: 15.8% YoY Change 1 2 3 buyback payout ratio Adj. ROACE(1): 14.2% ACL Coverage: 2.06% 128.9 125.1 (2Q 2024) 119.8 121.5 122.6 117.0 11
Slide 6: Results of Operations
Cred Bancorn | Results of Operations
Slide 7: Discussion of Results
SECOND QUARTER 2024 Discussion of Results Income Statement and Selected Financial Data Non-GAAP Reconciliation – Selected Data(1) 2Q 2024 1Q 2024 Variance 2Q 2023 2Q24 Adjusted Tangible Common Equity Ratio ($ in thousands, except per share data and financial ratios) Interest income $ 272,245 $ 268,5
Slide 8: Profitability Dynamics: Net Interest Income
SECOND QUARTER 2024 Profitability Dynamics Net Interest Income ($MM) Cumulative Deposit Betas by Deposit Type(1) $199.8 $199.7 $196.7 $196.5 $199.6 78% 81% 78% 78% 200 10 75% 68% 71% 63% 8 57% 150 52% 6 100 4.23% 4.15% 4.14% 4.16% 4.22% 4 50 14% 14% 14% 13% 14% 2 0 0 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q
Slide 9: Profitability Dynamics: Non-Interest Income and Expenses
SECOND QUARTER 2024 Profitability Dynamics Non-Interest Income ($MM) Non-Interest Expenses ($MM) 40 $36.3 10 140 $126.6 10 $33.6 $34.0 $32.0 $116.6 $120.9 $118.7 $30.3 120 $112.9 8 8 30 100 $55.6 $24.1 $21.4 6 $54.3 $56.5 $59.5 $57.5 6 $17.9 $21.8 $18.9 80 20 4 60 $71.1 4 10 $2.9 $2.8 $2.1 $2.9 $3.4
Slide 10: Asset Quality
SECOND QUARTER 2024 Asset Quality Non-Performing Assets ($MM) Repossessed Assets and Other Residential Commercial Repossessed Assets and Other Loans HFI NPAs/Assets Consumer Construction 140 $130 $130 $127 140 $130 $130 $127 10 $121 $126 1.0 $121 $126 120 120 $37 $37 $31 0.9 $37 $37 $31 100 $39 $42
Slide 11: ACL and Capital
SECOND QUARTER 2024 ACL and Capital Evolution of ACL ($MM) and Capital Ratios (%) ACL on Loans to Total Loans (%) $280.8 $271.1 $270.2 $269.2 $260.9 19.2 18.8 $4.9 $4.8 18.6 18.4 18.2 $4.6 $4.9 $4.5 300 $8.8 16.6 16.6 $2.7 $2.7 $1.7 $1.8 16.4 16.4 16.1 16.1 15.9 15.9 15.8 15.8 $248.0 250 $4.0 $8.0 7
Slide 12: Appendix and Non-GAAP Financial Measures
2Q 2024 Financial Results Appendix and Non-GAAP Financial Measures
Slide 13: Appendix – Balance Sheet Highlights
SECOND QUARTER 2024 Appendix – Balance Sheet Highlights Loan Portfolio - $MM Commercial Loan Portfolio Distribution - $MM Total Deposits (excluding Brokered CDs) - $MM C&I $11,960 $12,193 $12,324 $12,396 $5,678 Office CRE (PR) $16,456 $11,734 $16,125 $15,773 $15,820 $15,904 $9 $7 $12 $10 Loans HFS $
Slide 14: Appendix - Puerto Rico Government Exposure
SECOND QUARTER 2024 Appendix - Puerto Rico Government Exposure Government Loans Government Deposits Government Unit Source of Repayment Total Government Unit Time Deposits Transaction Accounts Total Puerto Rico Securities $ 3.1 Municipalities $ 61.2 $ 561.0 $ 622.2 Municipal Agency - - - Municipalit
Slide 15: Appendix - NPL Migration
SECOND QUARTER 2024 Appendix - NPL Migration 2Q 2024 Residential Commercial Commercial & Construction Consumer Total Mortgage Mortgage Industrial Beginning balance $ 32,685 $ 11,976 $ 25,067 $ 1,498 $ 21,739 $ 92,965 Plus: Additions to non-performing 3,397 7 14,800 3,300 22,449 43,953 Less: Non-perf
Slide 16: Appendix - Use of Non-GAAP Financial Measures
SECOND QUARTER 2024 Appendix - 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 that the presentation of these non-GAAP financial measures
Slide 17: Appendix - Use of Non-GAAP Financial Measures
SECOND QUARTER 2024 Appendix - 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 that the presentation of these non-GAAP financial measures
Slide 18: Appendix - Use of Non-GAAP Financial Measures
SECOND QUARTER 2024 Appendix - 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 that the presentation of these non-GAAP financial measures
Slide 19: BLD LLLESSeee eer
BLD LLLESSeee eer RED LEE LEUE LELE RED LLEE LEUE LEE