First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q3 2017 Earnings Presentation
25 slides from First Bancorp. New's earnings presentation, Nov 7, 2017
Slide 1: Financial Results 3Q 2017
Financial Results3Q 2017
Slide 2: Forward-Looking Statements
2 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 ar
Slide 3: Agenda
Agenda Hurricanes Irma & Maria Impact and ResponseThird Quarter 2017 Highlights Aurelio Alemán, President & Chief Executive OfficerThird Quarter 2017 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Hurricanes Irma and Maria Hurricane Impact & Response
Hurricanes Irma and Maria 4 Hurricane Impact & Response
Slide 5: Hurricanes Irma & Maria: contingency and recovery plan execution
Execution of our contingency preparedness and recovery plans for Hurricanes Irma and Maria demonstrated the operational strength and agility of our Institution.Our online technology service platforms for consumers and commercial clients remained operational during and after the storms. Management wo
Slide 6: Puerto Rico Update – Impact of Hurricanes Irma & Maria
6 Puerto Rico Update – Impact of Hurricanes Irma & Maria Source: www.status.pr As of September 30, 2017 As of November 6, 2017 Recovery of Critical Services 42% 79% 83% 72% 84% 89% 82%
Slide 7: Key Highlights Third Quarter 2017 Highlights
Key Highlights 7 Third Quarter 2017 Highlights
Slide 8: Third Quarter 2017 Highlights: 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 $55
Slide 9: Loan Originations and Loan Portfolio
9 Loan Originations* ($ 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 10: Total Deposit Composition and Core Deposits
10 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Core deposits stable; continue reducing reliance on brokered deposits Third Quarter 2017 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $7,489 $7,511 $7,422 $7,3
Slide 11: Third Quarter 2017 Highlights: PR Government Exposure
11 Third Quarter 2017 Highlights: PR Government Exposure ($ 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 exp
Slide 12: Results of Operations Third Quarter 2017 Results
12 Results of Operations Third Quarter 2017 Results
Slide 13: Third quarter drivers: net interest income, provision, expenses
Net Interest Income Reduction of $0.5 million on mortgage interest for migration to NPAReduction of 5 basis points on net interest margin for additional liquidity. Provision for Loan and Lease Losses A $66.5 million additional qualitative reserve was established to cover possible estimated losses fr
Slide 14: Third Quarter Financial Highlights
14 Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 15: Non-GAAP, Adjusted Net Income
15 Results of Operations: Non-GAAP, Adjusted Net Income Select Financial Information
Slide 16: Net Interest Income
16 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 increas
Slide 17: Operating Expenses
17 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 $0.6 million of “Business Promotion tied to rel
Slide 18: Non-Performing Assets
18 Non-Performing Assets ($ millions) The increase in NPAs was primarily attributable to the inflow of two large commercial relationships in Puerto Rico totaling $34.2 million, and increases of $23.2 million and $5.4 million in non-performing residential mortgage and consumer loans, respectively, ad
Slide 19: Net Charge-Offs
19 Key Highlights Net Charge-Offs ($ 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
Slide 20: Capital Position
20 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.9 billion as of September 30, 2017, a decrease of $6.2 million from June 30, 2017, mainly driven by the net loss reported for the third quarter, partially offset by an increase in the fair value o
Slide 21: Third Quarter Results Q & A
21 Third Quarter Results Q & A
Slide 22: Third Quarter Results Exhibits
22 Third Quarter Results Exhibits
Slide 23: NPLs Held for Investment - Migration
23 NPLs Held for Investment - Migration ($ in 000)
Slide 24: Use of Non-GAAP Financial Measures
24 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 25: Use of Non-GAAP Financial Measures
25 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