First Bank · NASDAQ:FRBA
First Bank — Q3 2023 Earnings Presentation
19 slides from First Bank's earnings presentation, Oct 26, 2023
Slide 1: Financial Results 3Q 2023
FINANCIAL RESULTS 3Q 2023 |1
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 3Q 2023 Quarter Highlights Aurelio Alemán, President and Chief Executive Officer 3Q 2023 Results of Operations Orlando Berges, Executive Vice President and Chief Financial Officer Questions and Answers |3
Slide 4: Third Quarter 2023 Performance Highlights
THIRD QUARTER 2023 PERFORMANCE HIGHLIGHTS ▪ Net income of $82.0 million ($0.46 per diluted share), compared to $70.7 million ($0.39 per diluted share) in 2Q 2023 ▪ Return on average assets (“ROAA”) remains strong at 1.72%, compared to 1.51% in 2Q 2023 ▪ On a non-GAAP basis, adjusted pre-tax, pre-pro
Slide 5: Balance Sheet Metrics - Loan Portfolio
THIRD QUARTER 2023 BALANCE SHEET METRICS – LOAN PORTFOLIO Loan Portfolio - $MM Commercial Loan Portfolio Distribution - $MM Exposure at Repricing $11,566 $11,593 $11,734 $11,960 / Maturity Date $11,311 $9 $5,347 Loans HFS $12 $12 $15 $14 C&I 2023-2024 $66 $2,316 $3,031 $5,246 $5,216 $5,267 $5,347 CR
Slide 6: Balance Sheet Metrics - Deposits and Liquidity
THIRD QUARTER 2023 BALANCE SHEET METRICS – DEPOSITS AND LIQUIDITY Total Deposits (excluding Brokered CDs) - $MM Composition of Deposit Portfolio vs. Available Liquidity - $MM(2) Cash & Equivalents Free Liquid Securities $16,524 $16,038 $16,456 $16,125 FHLB Availability $15,799 $16,125 Public Funds $
Slide 7: Operating Environment and Franchise Highlights
OPERATING ENVIRONMENT AND FRANCHISE HIGHLIGHTS Stable operating environment in our main market Franchise Highlights PR Economic Activity Index (EAI)(1) ▪ Economic Activity Index continues to show a ▪ Well-diversified and granular deposit franchise recovery trend; August 2023 registered a year- over-
Slide 8: Results of Operations
RESULTS OF OPERATIONS EE! sancorp
Slide 9: Discussion of Results
THIRD QUARTER 2023 DISCUSSION OF RESULTS Income Statement Selected Financial Data 3Q 2023 2Q 2023 Variance 3Q 2022 3Q 2023 2Q 2023 Variance 3Q 2022 ($ in thousands, except per share data and financial ($ in thousands) ratios) Interest income $ 263,405 $ 252,204 $ 11,201 $ 222,683 Adjusted pre-tax, p
Slide 10: Profitability Dynamics - Net Interest Income
THIRD QUARTER 2023 PROFITABILITY DYNAMICS Net Interest Income ($MM) Cumulative Deposit Betas by Deposit Type(1) 75% 78% 250 10 $207.9 $205.6 $200.9 $199.8 $199.7 62% 61% 200 8 57% 52% 150 6 43% 4.31% 4.37% 4.34% 4.23% 4.15% 38% 100 4 22% 50 2 11% 12% 14% 14% 6% 9% 0 0 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4
Slide 11: Profitability Dynamics - Non-Interest Income and Expenses
THIRD QUARTER 2023 PROFITABILITY DYNAMICS Non-Interest Income ($MM) Non-Interest Expenses ($MM) 40 10 $115.2 $112.9 $115.3 $116.6 $36.3 120 $112.9 9.5 $32.5 115 $0.2 9.0 8.5 $30.3 110 $29.7 $29.6 8 105 8.0 30 7.5 100 7.0 95 $56.5 6.5 $24.1 6 90 $52.9 $52.2 $56.4 $54.3 6.0 $16.5 $17.9 $20.2 $17.9 85
Slide 12: Asset Quality
THIRD QUARTER 2023 ASSET QUALITY Non-Performing Assets ($MM) Repossessed Assets and Other Loans HFI NPAs/Assets Repossessed Assets and Other Residential Commercial Consumer Construction 14 5 $143 1.0 5 14 5 $143 10 14 0 $129 $129 $130 14 0 $129 $129 $130 $121 $121 13 5 13 5 1.0 0 13 0 13 0 $46 $46 1
Slide 13: ACL Levels and Capital Position
THIRD QUARTER 2023 ACL LEVELS AND CAPITAL POSITION Evolution of ACL ($MM) and Capital Ratios (%) ACL on Loans to Total Loans (%) 19.4 19.2 19.0 19.2 18.8 300 $271.0 $280.8 $271.1 16.7 16.7 16.5 16.5 16.3 16.3 16.6 16.6 16.4 16.4 $248.0 $8.9 $4.2 $8.8 $4.9 $2.7 $4.8 250 $4.0 $8.0 7.5 200 10.7 10.6 10
Slide 14: Exhibits
EE! sancorp EXHIBITS 114
Slide 15: Puerto Rico Government Exposure
THIRD QUARTER 2023 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 $ 564.9 $ 606.9 PR Securities $ 3.2 Municipal Agency - - - Municipalities: $ 24
Slide 16: NPL Migration
THIRD QUARTER 2023 NPL MIGRATION September 30, 2023 Residential Commercial Commercial & Construction Consumer Total Mortgage Mortgage Industrial Beginning balance $ 33,252 $ 21,536 $ 9,194 $ 1,677 $ 16,362 $ 82,021 Plus: Additions to non-performing 4,510 522 10,569 - 24,886 40,487 Less: Non-performi
Slide 17: Use of Non-GAAP Financial Measures
THIRD 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 the
Slide 18: Use of Non-GAAP Financial Measures
THIRD QUARTER 2023 USE OF NON-GAAP FINANCIAL MEASURES Non-GAAP Disclosures 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 the
Slide 19: Financial Results 3Q 2023
FINANCIAL RESULTS 3Q 2023 | 19