23 slides from First Bancorp. New's earnings presentation, Nov 1, 2012
Slide 1: Financial Results Third Quarter 2012
Financial Results | Third Quarter 2012 _
Slide 2: Forward-Looking Statements
Eijoncon| Forward-Looking Statements This presentation contains “forward-looking statements" conceming First BanCorp's (the “Corporation”) future econamicperfomnance. The words or phrases “would be,” “vill allow,” “intends to," “will likely result,” “are expected to,” “expect,” “antidpate,” “look fo
Slide 3: Agenda
Agenda Third Quarter 2012 Highlights: Aurelio Aleman, President & Chief Executive Officer = Third Quarter Results of Operations: Orlando Berges, Executive Vice President & Chief Financial Officer = Summary = Questions & Answers
Slide 4: Third Quarter 2012 Highlights
THIRD QUARTER 2012 Highlights Taco
Slide 5: Third Quarter 2012 Highlights: Core Franchise Strong
Third Quarter 2012 Highlights: CoRE FRANCHISE STRONG Effectively executing strategic plan: Asset Quality Net income $19.1 million; diluted EPS $0.09 Pre-tax pre-provision income $51.4 million up $13.5 million or 35% from Q2.2012; a 77% increase from same quarter last year Net interest margin expansi
Slide 6: Third Quarter 2012 Highlights: Loan Portfolio
Third Quarter 2012 Highlights: LOAN PORTFOLIO Gin mitions) Loan Portfolio Loan Originations* $12,000 $10,697 $10,575 $19,330 $10,357 $40,257 $10,000 $3,000 $6,000 $4,000. 302011 402011 102012 202012 392012 $2,000 wm Residential Mortgage 1 ConsumerandFinance Leases © Construction = Commercial and Ind
Slide 7: Third Quarter Highlights: Deposit Mix
Third Quarter Highlights: Deposit Mix Fly cencor (Sin millions) Deposits, Net of Brokered CDs $6,934 $6,488 $7,000 / |$6164 $6,176 _—_— $6,286 sso00 $4000 $3000 $2,000 $1,000 & os2011 = ga2011-ga.2012, 22012, aa 2012 mRetail m@ Commercial SPublicFunds CDs& IRAs Total Deposit Composition Non-intere:
Slide 8: Third Quarter 2012 Results of Operations
THIRD QUARTER 2012 Results of Operations Taco
Slide 9: Third Quarter 2012 Financial Highlights
| tFrst Soro Results of Operations: THIRD QUARTER 2012 FINANCIAL HIGHLIGHTS (in thousands, except per share data) Interestincome $ 166,964 $ 153,652 $ 13,312 Interest expense 41,461 44,947 (3,486) Net inter est income 125,508 108,705 16,798 Provision for loan andlease losses 28,952 24,884 4,068 Non-
Slide 10: Revenue Growth & Margin Expansion
Results of Operations: REVENUE GROWTH & MARGIN EXPANSION | tFrst Coro = Net interest income growth of 15% and 33% when compared to Q2 2012 and Q3 2011, respectively. — Loan yields grew by 37 basis points during 03. - The credit card portfolio increased interest income by $12.6 million from the prior
Slide 11: Cost of Funds
Results of Operations: Cost oF FUNDS = Cost of total deposits net of brokered decreased to 0.91% from 0.99% ina2 2012. | 7 = The average rate paid on non-brokered 150% pe Lee — deposits, including interest-bearing Sse checking accounts, savings and retail CDs, 1.00% 225% fist declined by 10 basis po
Slide 12: Third Quarter 2012 Financial Highlights
ss ES Results of Operations: THIRD QUARTER 2012 FINANCIAL HIGHLIGHTS Gin thousands) Interestincome $ 166,964 $ 158,542 $8,422 Interest expense 41,461 64,287 (22,826) Net inter est income 125,508 94,255 31,248 Provision for loan and lease losses 28,952 46,446 (27,494) Non-interest incorne 17,326 18,3
Slide 13: Asset Quality
Results of Operations: ASSET QUALITY lp meas) Non-performing Assets Loans Heldfor Sale 4558 sm RepossessedAssets& Other s1800 5 1,701 a 669 1m Nor- performing Loans Bai arson: ez [o2i2 | as12 [$0 [964 | z 5 : 1,337 1,392 1308 4 569 Residential $ 339 $ 321 $(12) (4%) _ Consumer 35 36 1 2% ‘C&l and CR
Slide 14: Net Charge-offs & Allowance Coverage
es Results of Operations: NET CHARGE-OFFS & ALLOWANCE COVERAGE {Sin millions) Net Charge-offs ALLL & Coverage Ratios $88 © Construction S00 ‘= CommerdalReal Estate oe $62 Commerdaland industrial = Consumer m@ Residential $52 $400 + sa 23 $200 i @ 13 s 3.2011 40.2011 10.2012 202012 30.2012 . | cl ase
Slide 15: Capital Position
| tFrst Coro Results of Operations: CAPITAL POSITION = The Corporation’s total stockholders’ equity amounted to $1.48 billion as of September 30, 2012, an increase of $35.2 million from June 30, 2012, driven by internal capital generation including net income of $19.1 million and an increase of $15.
Slide 16: Third Quarter 2012 Summary
THIRD QUARTER 2012 Summary. Taco
Slide 17: Summary: Core Franchise is Strong
Eijoncon| Summary CoRE FRANCHISE IS STRONG . Strong capital position: — Total capital, Tier 1 capital and Leverage ratios of the Corporation of 17.5%, 16.2% and 13.3%, respectively. . Focus on execution of our Strategic Plan: — Asset Quality remains our number one focus and our Special Assets team i
Slide 18: Third Quarter 2012 Q&A
THIRD QUARTER 2012 Q&A Taco
Slide 19: Exhibits
EXHIBITS Taco
Slide 20: Third Quarter Key Margin Drivers
res Results of Operations: THIRD QUARTER KEY MARGIN DRIVERS Q3 vs. Q2 Change in Average Interest Earning Assets & Interest Beai sAin % Ain Net Interest Average Average Income Volume Rate Changes Average loans & leases: Residential mortgage loans 30,897 0.04% & 1,075 Construction loans (33,738) 0.12%
Slide 21: Use of Non-GAAP Financial Measures
Eiiencon| Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are setforth when management believes they will be helpful to an understanding of the Corporation’s results of
Slide 22: Use of Non-GAAP Financial Measures
Eiiencon| Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are setforth when management believes they will be helpful to an understanding of the Corporation’s results of
Slide 23: Use of Non-GAAP Financial Measures
Eiiencon| Use of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation may contain non-GAAP financial measures. Non-GAAP financial measures are setforth when management believes they will be helpful to an understanding of the Corporation’s results of