25 slides from First Bancorp. New's earnings presentation, Jul 23, 2021
Slide 1: Financial Results 2Q 2021
Financial Results 2Q 2021
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation may contain “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “believe” and similar expressions are meant to identify
Slide 3: Agenda
Agenda 2Q 2021 Quarter Highlights Aurelio Alemán, President & Chief Executive Officer2Q 2021 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: 2Q 2021 Highlights
2Q 2021 Highlights
Slide 5: Operational Strength & Readiness
Operational Strength & Readiness 5 SBP PPP ended in June. Through the life of the program, we originated $745 million, or over 14 thousand loans, supporting businesses across our three regionsThrough our fully integrated digital platform we have processed forgiveness to 81% of our clients, equivalen
Slide 6: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights 6 Profitability Net income of $70.6 million, or $0.33 per diluted share compared to $61.2 million, or $0.28 per diluted share in 1Q 2021. Financial results for 2Q 2021 reflect a $26.2 million reserve release related to improving macroeconomic forecasts compared to $15.
Slide 7: Strong Operating Metrics Through Pandemic
Strong Operating Metrics Through Pandemic Loan Portfolio ($ in millions) Loan Originations (1)($ in millions) Core Deposits (2)($ in millions) 7 Originations, including credit card utilization activity, declined $62 million compared to 1Q 2021 driven by a $135.2 million reduction in PPP loan origina
Slide 8: Results of Operations
Results of Operations
Slide 9: Second Quarter Highlights
Second Quarter Highlights ($ in thousands, except per share data) 9
Slide 10: Net Interest Income
Net Interest Income Key Highlights Net Interest Income ($ millions) Net interest income increased $8.5 million, reflecting:A $3.9 million increase in interest income on investment securities due to an increase in the average balance driven by strong deposit growthA $2.5 million increase in interest
Slide 11: Non-Interest Income
Non-Interest Income Non-interest income for 2Q 2021 of $29.9 million, compared to $31.0 million for 1Q 2021. The decrease was related to: The $3.3 million in seasonal insurance contingent commissions recognized in 1Q 2021A $0.9 million reduction in revenues from mortgage banking activityOffset by an
Slide 12: Non-Interest Expense
Non-Interest Expense Non-interest expenses of $130.2 million in 2Q 2021, a decrease of $3.1 million from $133.3 million in 1Q 2021, which included the following special items:Merger and restructuring costs associated with the acquisition of $11.0 million in 2Q 2021, compared to $11.3 million in 1Q 2
Slide 13: Significant ACL Levels
Significant ACL Levels Evolution of ACL ($ in millions) & ACL on Loans to Total Loans (%) The allowance for credit losses (ACL) on loans decreased by $34 million during 2Q 2021 to $325 millionProvision for credit losses for the commercial and construction loan portfolio was a net benefit of $27.9 mi
Slide 14: Asset Quality
Asset Quality Non-Performing Assets ($ millions) The decrease in NPAs was driven by:A $12.6 million decrease in OREO driven by sales of $14.3 million, including the sale of a $10.0 million commercial property in the Puerto Rico region, and approximately $2.4 million of fair value and other adjustmen
Slide 15: Capital Ratios
Capital Ratios Total stockholders’ equity amounted to $2.2 billion as of June 30, 2021, a decrease of $15.5 million from March 31, 2021. The decrease was driven by the repurchase of 7.96 million of shares of common stock for a total purchase price of approximately $100 million, as well as common and
Slide 16: Exhibits
Exhibits
Slide 17: Second Quarter 2021 Highlights: PR Government Exposure
Second Quarter 2021 Highlights: PR Government Exposure ($ in millions) As of June 30, 2021, the Corporation had $388.8 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $391.1 million as of March 30, 202186% of direct government exposur
Slide 18: Second Quarter 2021 Highlights: NPL Migration
($ in 000) Second Quarter 2021 Highlights: NPL Migration 18
Slide 19: Use of Non-GAAP Financial Measures
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 fina
Slide 20: Use of Non-GAAP Financial Measures
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 fina
Slide 21: Use of Non-GAAP Financial Measures
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 fina
Slide 22: Use of Non-GAAP Financial Measures
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 fina
Slide 23: Use of Non-GAAP Financial Measures
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 fina
Slide 24: Use of Non-GAAP Financial Measures
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 fina
Slide 25: Use of Non-GAAP Financial Measures
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 fina