23 slides from First Bancorp. New's earnings presentation, Oct 25, 2016
Slide 1: Financial Results 3Q 2016
Financial Results 3Q 2016 1First [221
Slide 2: Forward-Looking Statements
2 This presentation may contain “forward-looking statements” concerning the Corporation’s future economic and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes” and similar expressions are meant to identify “forward-looking sta
Slide 3: Agenda
Agenda Third Quarter 2016 Highlights Aurelio Alemán, President & Chief Executive OfficerThird Quarter 2016 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights Third Quarter 2016 Results
Key Highlights 4 Third Quarter 2016 Results
Slide 5: Key Highlights: Profitability, Asset Quality, Core Deposits
5 Profitability Net income of $24.1 million, or $0.11 per diluted share, compared to $22.0 million in 2Q 2016.Net interest income declined $2.0 million, due to lower loan volumes and prepayments on securities.Non-interest income increased $6.4 million, due largely to a $6.1 million gain on sale of s
Slide 6: Loan Originations and Loan Portfolio
6 Loan Originations* ($ millions) Loan Portfolio ($ millions) $880 Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Loan Portfolio:The loan portfolio increased $12 million net of charge-offs. The performing portfolio increased $32 million.Commercial portfolio increase
Slide 7: Deposit Composition and Core Deposits
7 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Non-brokered deposits, excluding government deposits, increased $35 million in 3Q 2016, reflecting an increase of $45 million in the Puerto Rico region partially offset by reduction
Slide 8: Third Quarter 2016 Highlights: PR Government Exposure
8 Third Quarter 2016 Highlights: PR Government Exposure As of September 30, 2016, the Corporation had $325.9 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $336.5 million as of June 30, 2016. Available-for-sale investment portfolio o
Slide 9: Results of Operations Third Quarter 2016 Results
9 Results of Operations Third Quarter 2016 Results
Slide 10: Third Quarter Financial Highlights
10 Results of Operations: Third Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) GAAP NIM increased 5 basis points to 4.06%, due to the use of cash balances to repay maturing brokered CDs and repurchase agreements. Net interest income decreased $2.0 million in 3Q 2016. This decrease was mainly due to:A $1.7 million decrease in i
Slide 12: Cost of Deposits
12 Key Highlights Cost of Deposits (%) Cost of total deposits, excluding brokered CDs, remained flat at 0.62%.The average rate paid on non-brokered interest-bearing deposits increased 1 basis point to 0.77% during the 3Q 2016.The average balance of brokered CDs declined by $306.7 million during 3Q 2
Slide 13: Non-Interest Income
13 Key Highlights Non-Interest Income* ($ millions) * Non interest income excludes equity losses of unconsolidated entities, OTTI and gain on investments, HFS bulk sale impact and bargain purchase gain. Non-interest income increased $6.4 million in the quarter, mostly related to a $6.1 million gain
Slide 14: Operating Expenses
14 Results of Operations: Operating Expenses Non-interest expenses decreased by $1.2 million in 3Q 2016 to $88.3 million, due to:A $1.3 million decrease in credit related expenses. $0.7 related to lower write-downs in OREO and $0.6 million decrease in expenses related to troubled loan resolution and
Slide 15: Non-Performing Assets
15 Non-Performing Assets ($ millions) Total non-performing loans, including non-performing loans held for sale, decreased by $31 million, or 5%, driven largely by charge-offs activity.New non-performing loan inflows were $50 million in 3Q 2016, down $28 million from last quarter. Included in the “Di
Slide 16: Net Charge-Offs
16 Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 3Q 2016 were $42 million, an annualized 1.90% of average loans, compared to $25 million in 2Q 2016. Approximately $13.7 million of the charge-offs recorded in the third quarter is related to loans guaranteed by the Puerto Rico
Slide 17: Capital Position
17 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.8 billion as of September 30, 2016, an increase of $13.4 million from June 30, 2016, mainly driven by $24.1 million of net income offset by a decrease of $12.2 million in other comprehensive incom
Slide 18: Third Quarter Results Q&A
Third Quarter Results First Ear Q&A
Slide 19: Third Quarter Results Exhibits
19 Third Quarter Results Exhibits
Slide 20: Key Margin Drivers Q3 vs. Q2
20 Results of Operations: Key Margin Drivers Q3 vs. Q2 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations ($ in 000)
Slide 21: NPLs Held for Investment - Migration
21 NPLs Held for Investment - Migration ($ in 000)
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