First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q1 2021 Earnings Presentation
25 slides from First Bancorp. New's earnings presentation, Apr 26, 2021
Slide 1: Financial Results 1Q 2021
Financial Results 1Q 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 1Q 2021 Quarter Highlights Aurelio Alemán, President & Chief Executive Officer1Q 2021 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: 1Q 2021 Highlights
1Q 2021 Highlights
Slide 5: Operational Strength & Readiness
Operational Strength & Readiness 5 SBA PPP loan portfolio increased by $25 million to $431 million as of 1Q 2021, from $406 million as of 4Q 2020During 1Q 2021, received over 6,600 applications and processed over $300 million. Continue processing PPP loans through the end of May (the expiration of t
Slide 6: First Quarter 2021 Highlights
First Quarter 2021 Highlights 6 Profitability Net income of $61.2 million, or $0.28 per diluted share compared to $50.1 million, or $0.23 per diluted share in 4Q 2020. Financial results for 1Q 2021 reflect a $15.3 million reserve release related to improving macroeconomic forecasts Adjusted pre-tax,
Slide 7: Strong Operating Metrics During Pandemic
Strong Operating Metrics During Pandemic Loan Portfolio ($ in millions) Loan Originations (1)($ in millions) Core Deposits (2)($ in millions) $8,887 $14,648 $15,600 $14,876 $887 $962 7 $1,053 $1,602 $8,791 During 1Q 2021, origination activity included $209 in new SBA PPP loans. Reduction in originat
Slide 8: Results of Operations
Results of Operations
Slide 9: First Quarter Highlights
First Quarter Highlights ($ in thousands, except per share data) 9
Slide 10: Net Interest Income
Net Interest Income Key Highlights Net Interest Income ($ millions) Net interest income decreased $1.5 million, reflecting:A $2.2 million decrease resulting from two less days in the quarterA $2.4 million decrease in interest income on residential mortgages mostly due to a $121.2 million decrease in
Slide 11: Non-Interest Income
Non-Interest Income Non-interest income for 1Q 2021 amounted to $31.0 million, compared to $30.2 million for 4Q 2020 The $0.8 million increase was primarily due to a $3.3 million in seasonal insurance contingent commissions Offset by $1.4 million of fee income related to Main Street Lending program
Slide 12: Non-Interest Expense
Non-Interest Expense Non-interest expenses of $133.3 million in 1Q 2021, a decrease of $1.5 million from $134.8 million in 4Q 2020, which included the following special items:Merger and restructuring costs associated with the acquisition of $11.3 million in 1Q 2021, compared to $12.3 million in 4Q 2
Slide 13: Significant ACL Levels
Significant ACL Levels Evolution of ACL ($ in millions) & ACL on Loans to Total Loans (%) The allowance for credit losses (ACL) on loans decreased by $27 million during 1Q 2021 to $359 millionProvision for credit losses for the commercial and construction loan portfolio was a net benefit of $14.6 mi
Slide 14: Asset Quality
Asset Quality Non-Performing Assets ($ millions) The decrease in NPAs was driven by:A $9.4 million decrease in nonaccrual commercial and construction loans, primarily due to loan repayments, including the payoff of a $6.0 million construction loan relationship in the Virgin Islands region and the pa
Slide 15: Capital Ratios
Capital Ratios Total stockholders’ equity amounted to $2.2 billion as of 1Q 2021, a decrease of $54.8 million from 4Q 2020. The decrease was driven by a $98.9 million decrease in the fair value of available-for-sale investment securities recorded as part of Other comprehensive (loss) income in the c
Slide 16: Exhibits
Exhibits
Slide 17: Fortress Balance Sheet
Fortress Balance Sheet Ample liquidity to drive loan demand as economy continues reopening effortsStrong reserve coverage on a well-diversified loan portfolioCapital ratios remain among the highest in the banking sector; capital ratios remain well above regulatory “Well-Capitalized” guidelinesCapita
Slide 18: PR Government Exposure
First Quarter 2021 Highlights: PR Government Exposure ($ in millions) As of March 31, 2021, the Corporation had $391.1 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $394.8 million as of December 31, 202085% of direct government expo
Slide 19: Fourth Quarter 2020 Highlights: NPL Migration
($ in 000) Fourth Quarter 2020 Highlights: NPL Migration 19
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