23 slides from First Bancorp. New's earnings presentation, Apr 25, 2017
Slide 1: Financial Results 1Q 2017
Financial Results1Q 2017
Slide 2: Forward-looking statements
2 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 meant to identify “forwar
Slide 3: Agenda
Agenda First Quarter 2017 Highlights Aurelio Alemán, President & Chief Executive OfficerFirst Quarter 2017 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights: First Quarter 2017 Highlights
Key Highlights 4 First Quarter 2017 Highlights
Slide 5: First Quarter 2017 Highlights: Profitability, Asset Quality, Core Deposits
Profitability Net income of $25.5 million, or $0.11 per diluted share, compared to $23.9 million in 4Q 2016. Adjusted pre-tax, pre-provision income of $55.4 million, compared to $55.0 million for 4Q 2016. Net interest margin increased 12 basis points to 4.42%. Asset Quality Total NPAs decreased by $
Slide 6: First Quarter 2017 Highlights: Loan Portfolio
6 Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Despite a challenging market environment, we continue to achieve results through our regional diversification: * Including refinancing and draws from existin
Slide 7: Core deposits stable; continue reducing reliance on brokered deposits
7 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Core deposits stable; continue reducing reliance on brokered deposits First Quarter 2017 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $7,429 $7,416 $7,422 $7,39
Slide 8: First Quarter 2017 Highlights: PR Government Exposure
8 First Quarter 2017 Highlights: PR Government Exposure ($ in millions) As of March 31, 2017, the Corporation had $245 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $323 million as of December 31, 2016. Available-for-sale investment
Slide 9: Results of Operations: First Quarter 2017 Results
9 Results of Operations First Quarter 2017 Results
Slide 10: First Quarter Financial Highlights
10 Results of Operations: First Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Key Highlights: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income increased $1.5 million in 1Q 2017. This increase was mainly due to:A $2.4 million increase in interest income on U.S. agency MBS, including a $1.9 million increase associated with a lower premium amortization expense and an incre
Slide 12: Results of Operations: Cost of Deposits
12 Key Highlights Cost of Deposits (%) Cost of total deposits, excluding brokered CDs, increased 1 basis point to 0.61%.The average rate paid on non-brokered interest-bearing deposits increased 2 basis point to 0.77% during 1Q 2017.The average balance of brokered CDs declined by $89 million during 1
Slide 13: Key Highlights: Adjusted Non-Interest Income
13 Key Highlights Adj. Non-Interest Income** ($ 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 23 for reconciliation. Non-interest income decreased $15.3 million in the
Slide 14: Results of Operations: Operating Expenses
14 Results of Operations: Operating Expenses Non-interest expenses increased by $3.6 million in 1Q 2017 to $87.9 million, due to:The effect of a $2.7 million adjustment recorded in the fourth quarter to reduce the credit card rewards liability due to the expiration of reward points.A $1.7 million in
Slide 15: Results of Operations: Asset Quality, Non-Performing Assets
15 Non-Performing Assets ($ millions) Total non-performing loans, including non-performing loans held for sale, decreased by $83 million, due to the sale of sale of the PREPA credit line with a book value of $64 million at the time of sale. New non-performing loan inflows were $33.4 million in 1Q 20
Slide 16: Results of Operations: Net Charge-offs
16 Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 1Q 2017 were $28 million, an annualized 1.26% of average loans, compared to $32 million in 4Q 2016. Approximately $10.7 million of the charge-offs recorded in 1Q 2017 are related to the sale of the PREPA credit line. Allowance
Slide 17: Results of Operations: Capital Position
17 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.8 billion as of March 31, 2017, an increase of $36.8 million from December 31, 2016, mainly driven by the earnings generated in the first quarter. Capital Ratios (%)
Slide 18: First Quarter Results Q&A
First Quarter Results Tan Bancorp | Q&A
Slide 19: First Quarter Results Exhibits
19 First Quarter Results Exhibits
Slide 20: NPLs Held for Investment - Migration
20 NPLs Held for Investment - Migration ($ in 000)
Slide 21: Use of Non-GAAP Financial Measures
21 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f
Slide 22: Use of Non-GAAP Financial Measures
22 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f
Slide 23: Use of Non-GAAP Financial Measures
23 Use of Non-GAAP Financial Measures Basis of PresentationUse 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 f