First Bank · NASDAQ:FRBA
First Bank — Q4 2023 Earnings Presentation
20 slides from First Bank's earnings presentation, Jan 25, 2024
Slide 1: 4Q 2023 and Full Year 2023 Results
i BanCor 4Q 2023 and Full Year 2023 1First
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe” and similar express
Slide 3: Agenda
AGENDA 4Q 2023 Quarter Highlights Aurelio Alemán, President and Chief Executive Officer 4Q 2023 Results of Operations Orlando Berges, Executive Vice President and Chief Financial Officer Questions and Answers -3-
Slide 4: Fourth Quarter 2023 Performance Highlights
FOURTH QUARTER 2023 Performance Highlights ▪ Net income of $79.5 million ($0.46 per diluted share), compared to $82.0 million ($0.46 per diluted share) in 3Q 2023 ▪ Solid return on average assets (“ROAA”) of 1.70%, compared to 1.72% in 3Q 2023 Profitability ▪ On a non-GAAP basis, adjusted pre-tax, p
Slide 5: Full Year 2023 - Successfully Adapting to Market Cycles while Achieving Profitable Growth
FULL YEAR 2023 - Successfully Adapting to Market Cycles while Achieving Profitable Growth 2023 KEY HIGHLIGHTS ROAA: 1.62% CET1 Ratio: 16.1% ~100% dividend and 2023 top performing 1 2 3 4 Adj. ROACE(1): 14.1% ACL Coverage: 2.15% buyback payout ratio bank stock in KRX(2) ◼ Earned $302.9 million in net
Slide 6: Results of Operations
RESULTS OF OPERATIONS
Slide 7: Fourth Quarter 2023 Discussion of Results
FOURTH QUARTER 2023 Discussion of Results Income Statement and Selected Financial Data Non-GAAP Reconciliation – Selected Data(1) 4Q 2023 3Q 2023 Variance 4Q 2022 FY 2023 FY 2022 4Q23 Adjusted Tangible Common Equity Ratio ($ in thousands, except per share data and financial ratios) Interest income $
Slide 8: Profitability Dynamics: Net Interest Income
FOURTH QUARTER 2023 Profitability Dynamics Net Interest Income ($MM) Cumulative Deposit Betas by Deposit Type(1) 78% 81% 250 10 75% $205.6 $200.9 $199.8 $199.7 $196.7 63% 200 8 62% 61% 57% 52% 150 4.37% 4.34% 6 43% 4.23% 4.15% 4.14% 100 4 22% 50 2 11% 12% 14% 14% 14% 0 0 4Q22 1Q23 2Q23 3Q23 4Q23 4Q2
Slide 9: Profitability Dynamics: Non-Interest Income and Expenses
FOURTH QUARTER 2023 Profitability Dynamics Non-Interest Income ($MM) Non-Interest Expenses ($MM) 40 $36.3 10 $126.6 $120.3 130 9.5 $32.5 $33.6 125 $112.9 $115.3 $112.9 $116.6 9.0 8.5 $30.3 120 $29.6 8 115 8.0 30 110 7.5 105 7.0 100 $55.6 6.5 $20.2 $24.1 $21.8 6 95 $56.5 $55.6 6.0 20 $17.9 $17.9 90 8
Slide 10: Profitability Dynamics: Non-Performing Assets
FOURTH QUARTER 2023 Profitability Dynamics Non-Performing Assets ($MM) Repossessed Assets and Other Loans HFI NPAs/Assets Repossessed Assets and Other Residential Commercial Consumer Construction 13 5 $129 $129 $130 $126 1.0 5 13 5 $129 $129 $130 $126 10 13 0 12 5 $121 1.0 0 13 0 12 5 $121 12 0 12 0
Slide 11: Evolution of ACL and Capital Ratios
FOURTH QUARTER 2023 Profitability Dynamics Evolution of ACL ($MM) and Capital Ratios (%) ACL on Loans to Total Loans (%) $273.5 $277.8 $280.8 $271.1 $269.2 $4.9 19.2 19.0 19.2 18.8 18.6 $4.3 $4.2 $4.8 $4.6 300 $8.7 $8.1 $8.8 16.5 16.5 16.6 16.6 $2.7 $2.7 16.3 16.3 16.4 16.4 16.1 16.1 $248.0 250 $4.0
Slide 12: 4Q23 Financial Results - Appendix
4Q23 Financial Results - Appendix
Slide 13: Balance Sheet Metrics
FOURTH QUARTER 2023 Balance Sheet Metrics Loan Portfolio - $MM Loan Originations - $MM(1) $627.7 (+5.4%) $1,441 $1,416 $1,298 $11,734 $11,960 $12,193 Consumer $328 $1,193 $1,209 $320 $11,565 $11,593 $7 Loans HFS $12 $15 $14 $9 $339 Credit Cards $129 $317 $328 $125 $5,491 Residential $116 $102 Commer
Slide 14: Operating Environment and Franchise Highlights
Operating Environment and Franchise Highlights Stable operating environment in our primary market Franchise Highlights PR Economic Activity Index (EAI)(1) ▪ Well-diversified and granular deposit franchise ▪ Economic Activity Index continues to show a recovery trend; November 2023 registered a YoY Ch
Slide 15: Puerto Rico Government Exposure
Fourth Quarter Puerto Rico Government Exposure Government Loans Government Deposits Total Transaction Government Unit Source of Repayment Government Unit Time Deposits Total Outstanding Accounts Municipalities $ 42.1 $ 508.8 $ 550.9 PR Securities $ 3.2 Municipal Agency - - - Municipalities: $ 248.4
Slide 16: NPL Migration
Fourth Quarter NPL Migration December 31, 2023 Residential Commercial Commercial & Construction Consumer Total Mortgage Mortgage Industrial Beginning balance $ 31,946 $ 21,632 $ 18,809 $ 1,640 $ 19,137 $ 93,164 Plus: Additions to non-performing 5,346 1,128 358 6 28,055 34,893 Less: Non-performing lo
Slide 17: Use of Non-GAAP Financial Measures
Fourth Quarter 2023 Use of Non-GAAP Financial Measures Basis of Presentation: Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances t
Slide 18: Use of Non-GAAP Financial Measures: Adjusted Pre-Tax, Pre-Provision Income
Fourth Quarter 2023 Use of Non-GAAP Financial Measures Basis of Presentation: Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances t
Slide 19: Use of Non-GAAP Financial Measures: Adjusted Tangible Common Equity Ratio
Fourth Quarter 2023 Use of Non-GAAP Financial Measures Basis of Presentation: Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances t
Slide 20: First BanCorp. 4Q 2023 and Full Year 2023
i BanCor 4Q 2023 and Full Year 2023 1First