First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q4 2017 Earnings Presentation
24 slides from First Bancorp. New's earnings presentation, Jan 29, 2018
Slide 1: Financial Results 4Q & FYE 2017
Financial Results4Q & FYE 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 Fourth Quarter & FYE 2017 Highlights Aurelio Alemán, President & Chief Executive OfficerFourth Quarter & FYE 2017 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights: Fourth Quarter & FYE 2017 Highlights
Key Highlights 4 Fourth Quarter & FYE 2017 Highlights
Slide 5: Puerto Rico Update – Impact of Hurricanes Irma & Maria
Puerto Rico Update – Impact of Hurricanes Irma & Maria Recovery of Critical Services 5 Source: www.status.pr Hurricane Irma% of ECR Branches1 Week After Impact / Today Hurricane Maria% of PR Branches1 Week After Impact / Today 1 Week After Hurricane María Jan 26, 2018 Hurricane María Total Branches
Slide 6: Profitability and Asset Quality Highlights
Profitability 4Q 20117 net income of $24.2 million, or $0.11 per diluted share, compared to net loss of $10.8 million in 3Q 2017.FY2017 net income of $67.0 million (which included $71.3 pre-tax hurricane-related provision in addition to storm-related increased expenses / reduced revenue) or $0.30 pe
Slide 7: Loan Originations and Loan Portfolio
7 Loan Originations* ($ 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 8: Total Deposit Composition and Core Deposits
8 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Core deposits experienced strong growth; noninterest bearing increased 16%, or $247.5 million. Fourth Quarter 2017 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds
Slide 9: Results of Operations: Fourth Quarter & FYE 2017 Results
9 Results of Operations Fourth Quarter & FYE 2017 Results
Slide 10: Fourth Quarter Financial Highlights
10 Results of Operations: Fourth Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income decreased $0.6 million in 4Q 2017. This decrease was mainly due to:A $0.8 million decrease in interest income on commercial loans primarily related to a $37.9 million decrease in the average balance of these portfolios and the in
Slide 12: Non-Interest Income
12 Key Highlights Adj. Non-Interest Income** ($ 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 24 for reconciliation. Non-interest income for 4Q 2017 amounted to $15.0
Slide 13: Operating Expenses
13 Results of Operations: Operating Expenses Non-interest expenses decreased by $0.5 million in 4Q 2017 to $85.1 million. Non-interest expenses for 4Q 2017 included insurance deductibles related to damages assessed on certain OREO properties damaged by Hurricane Maria and estimated storm-related cos
Slide 14: Non-Performing Assets
14 Non-Performing Assets ($ millions) The increase in NPAs was primarily attributable to the inflow of storm-impacted commercial and construction credits in Puerto Rico and the Virgin Islands. Inflows to non-performing loans were $58.3 million, a decrease of $45.5 million, compared to inflows of $10
Slide 15: Net Charge-Offs
15 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for the fourth quarter of 2017 were $24.7 million, or an annualized 1.12% of average loans, compared to $17.6 million, or an annualized 0.80% of average loans, in the third quarter of 2017. Allowance coverage ratio of 2.62% compared to 2
Slide 16: FYE 2017 Financial Highlights
16 Select Financial Information Results of Operations: FYE 2017 Financial Highlights
Slide 17: Capital Position
17 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.9 billion as of December 31, 2017, an increase of $15.3 million from September 30, 2017, mainly driven by the earnings generated in the fourth quarter, partially offset by a decrease in the fair v
Slide 18: Fourth Quarter Results Q & A
18 Fourth Quarter Results Q & A
Slide 19: Fourth Quarter Results Exhibits
19 Fourth Quarter Results Exhibits
Slide 20: NPLs Held for Investment - Migration
20 NPLs Held for Investment - Migration ($ in 000)
Slide 21: PR Government Exposure
21 Fourth Quarter 2017 Highlights: PR Government Exposure ($ in millions) As of December 31, 2017, the Corporation had $214.5 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $214.8 million as of September 30, 2017. 86% of direct gover
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
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