First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q2 2019 Earnings Presentation
23 slides from First Bancorp. New's earnings presentation, Jul 23, 2019
Slide 1: Financial Results 2Q 2019
Financial Results2Q 2019
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 Second Quarter 2019 Highlights Aurelio Alemán, President & Chief Executive OfficerSecond Quarter 2019 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights
Key Highlights 4 Second Quarter 2019 Highlights
Slide 5: Key Highlights: Profitability, Loan Portfolio, Asset Quality
Profitability 2Q 2019 net income of $41.3 million, or $0.19 per diluted share. Adjusted 2Q 2019 net income of $40.8 million, or $0.18 per diluted share, compared to 1Q 2019 adjusted net income of $37.0 million, or $0.17 per diluted share.Adjusted pre-tax, pre-provision income of $71.0 million, compa
Slide 6: Results of Operations
6 Results of Operations Second Quarter 2019 Results
Slide 7: Second Quarter Financial Highlights
7 Results of Operations: Second Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 8: Net Interest Income
8 Key Highlights Net Interest Income ($ millions) Net interest income increased $2.3 million in 2Q 2019. This increase was mainly due to:A $2.7 million increase in interest income on consumer loans primarily due to an increase on average balance of $78.6 million. A $1.5 million increase commercial a
Slide 9: Results of Operations: Non-Interest Income
9 Non-interest income for 2Q 2019 amounted to $22.2 million, compared to $22.5 million for 1Q 2019. The $0.3 million decrease was primarily due to: A $2.2 million decrease in insurance income, included as part of Other, reflecting the effect of seasonal contingent commissions of $2.7 million recorde
Slide 10: Results of Operations: Non-interest Expenses
10 Results of Operations: Non-interest Expenses Non-interest expenses increased by $2.9 million in 2Q 2019 to $92.9 million due to:A $1.5 million increase in compensation and benefits expenses due to a $2.3 million expense recovery in the first quarter of 2019 in connection with an employee retentio
Slide 11: Results of Operations: Asset Quality, Non-Performing Assets
11 Non-Performing Assets ($ millions) Charge-offs and collections on commercial loans of $15.7 million.An $2.5 million decrease in nonaccrual residential mortgage loans by loans brought current, charge-offs, collections and foreclosures.An $11.6 million decrease in the OREO portfolio balance. Inflow
Slide 12: Net Charge-Offs
12 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 2Q 2019 were $24.3 million, or an annualized 1.07% of average loans, compared to $24.5 million, or an annualized 1.10% of average loans, in 1Q 2019. While consumer and residential experienced lower charge-offs in 2Q 2019, there was a
Slide 13: Q & A
13 Second Quarter 2019 Results Q & A
Slide 14: Exhibits
14 Second Quarter 2019 Results Exhibits
Slide 15: Loan Originations and Loan Portfolio
15 Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Our island is beginning to show signs of growth and we continue relying on our regional diversification: * Including refinancing and draws from existing rev
Slide 16: Deposit Composition and Core Deposits
16 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Continue improving deposit mix; noninterest bearing increased $99.3 million. Second Quarter 2019 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $8,439 $8,666 Ove
Slide 17: Highlights: Capital Position
17 Second Quarter 2019 Highlights: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $2.2 billion as of June 30, 2019, an increase of $52.5 million from March 31, 2019. The increase was mainly driven by the earnings generated in the second quarter and the $17.5 million incre
Slide 18: Highlights: PR Government Exposure
18 Second Quarter 2019 Highlights: PR Government Exposure ($ in millions) As of June 30, 2019, the Corporation had $213.5 million of direct exposure to the Puerto Rico Government, unchanged since March 31, 2019. 89% of direct government exposure is to municipalities, which are supported by assigned
Slide 19: NPL Migration
NPL MIGRATION (Sin 000) ne 30, 2019 idential mercial | Commercial Beginning balance $ 132,049 § 100,573 $ 22,507 $ 7,700 $17,330 $280,159 Plus: ‘Additions to nom performing 11,709 21 598 1 10,607 23,221 Less: Non-performing loans transferred to OREO (4,445) (180) (13) (151) (30) (4,819) Non-performi
Slide 20: Use of Non-GAAP Financial Measures
20 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 21: Use of Non-GAAP Financial Measures
21 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 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