First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q2 2017 Earnings Presentation
23 slides from First Bancorp. New's earnings presentation, Jul 28, 2017
Slide 1: Financial Results 2Q 2017
Financial Results2Q 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 Second Quarter 2017 Highlights Aurelio Alemán, President & Chief Executive OfficerSecond Quarter 2017 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights: Second Quarter 2017 Highlights
Key Highlights 4 Second Quarter 2017 Highlights
Slide 5: Profitability, Asset Quality and Core Deposits
Profitability Net income of $28.0 million, or $0.13 per diluted share, compared to $25.5 million in 1Q 2017. Adjusted pre-tax, pre-provision income of $55.0 million, compared to $55.4 million for 1Q 2017. Net interest margin increased 2 basis points to 4.44%. Non-interest expense increased by $1.2 m
Slide 6: Loan Originations and Loan Portfolio
6 Loan Originations* ($ 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: Total Deposit Composition and Core 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 Second Quarter 2017 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $7,489 $7,416 $7,422 $7,3
Slide 8: PR Government Exposure
8 Second Quarter 2017 Highlights: PR Government Exposure ($ in millions) As of June 30, 2017, the Corporation had $222 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $245 million as of March 31, 2017. During the quarter FBP sold nonp
Slide 9: Results of Operations: Second Quarter 2017 Results
9 Results of Operations Second Quarter 2017 Results
Slide 10: Second Quarter Financial Highlights
10 Results of Operations: Second Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income increased $1.4 million in 2Q 2017. This increase was mainly due to:A $0.9 million increase in interest income associated with both the growth of the performing commercial and construction loan portfolios, primarily in the Florida
Slide 12: Cost of Deposits
12 Key Highlights Cost of Deposits (%) Cost of total deposits, excluding brokered CDs, increased 2 basis points to 0.63%.The average rate paid on non-brokered interest-bearing deposits increased 2 basis point to 0.79% during 2Q 2017.The average balance of brokered CDs declined by $104 million during
Slide 13: Non-Interest Income
13 Key Highlights Adj. Non-Interest Income** ($ 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 increased $12.3 million in th
Slide 14: Operating Expenses
14 Results of Operations: Operating Expenses Non-interest expenses increased by $1.2 million in 2Q 2017 to $89.1 million, due to:A $0.7 million increase in credit and debit card processing expenses mainly reflecting the effect in the previous quarter of a seasonal credit cards incentive received by
Slide 15: Non-Performing Assets
15 Non-Performing Assets ($ millions) Total non-performing assets decreased by $72.1 million, due to $29.7 million of charge-offs associated with the TDF guaranteed loans, the sale of $23.0 million of nonperforming GDB securities, and collections and charge-offs of $16.6 million associated with the
Slide 16: Net Charge-Offs
16 Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 2Q 2017 were $48 million, an annualized 2.16% of average loans, compared to $28 million in 1Q 2017. $29.7 million of the charge-offs recorded in 2Q 2017 are related to commercial mortgage loans guaranteed by the TDF, reserved i
Slide 17: Capital Position
17 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.9 billion as of June 30, 2017, an increase of $36.9 million from March 31, 2017, mainly driven by the earnings generated in the second quarter and an increase in the fair value of available-for-sa
Slide 18: Second Quarter Results Q & A
18 Second Quarter Results Q & A
Slide 19: Second Quarter Results Exhibits
19 Second Quarter Results Exhibits
Slide 20: NPLs Held for Investment - Migration
20 NPLs Held for Investment - Migration ($ 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