First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (March 2019)
37 slides from First Bancorp. New's investor presentation, Mar 26, 2019
Slide 1: First BanCorp Investor Presentation March 2019
First BanCorp Investor Presentation March 2019 Exhibit 99.1
Slide 2: Forward-Looking Statements
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 are
Slide 3: Compelling Value Proposition
Compelling Value Proposition Our business model is diverse and scalable by segment (commercial, residential and consumer) and by unique markets (Puerto Rico, Southeast Florida & Eastern Caribbean). Our equity is valued at 119% of TBV (3/22/19) compared to the SNL bank index (167% of TBV). Our capita
Slide 4: Franchise Overview
Franchise Overview Founded in Puerto Rico in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida ~2,685 FTE employees(1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share F
Slide 5: Franchise Positioning
Franchise Positioning Well-positioned Puerto Rico institution in a consolidating market Well-positioned Puerto Rico institution in a consolidating market Source: PR Market Share Report prepared with data provided by the Commissioner of Financial Institutions of Puerto Rico as of 12/31/18. 1) Others
Slide 6: Diversified Business Model Across Regions
Diversified Business Model Across Regions Strong Capital and Operational Foundation to Support Growth 1) Originations include purchases, refinancings, and draws from existing revolving and non-revolving commitments. Consumer Banking Attractive branch network across densely populated regions in Puert
Slide 7: Main Market Continues to Show Signs of Economic Recovery
Main Market Continues to Show Signs of Economic Recovery Economic activity in the aftermath of both Hurricanes Irma and Maria has exceeded initial expectations and business opportunities have surfaced across most industries. Several drivers of economic activity in Puerto Rico continue to show signs
Slide 8: Significant Inflow of Disaster-related Funds
Significant Inflow of Disaster-related Funds As a result of the extraordinary influx of both public and private funds, the economic backdrop for Puerto Rico and USVI has improved considerably Recent government reports suggest that approximately $82 billion in federal aid and private insurance disbur
Slide 9: Favorable Funding Mix
1) Core deposits are total deposits excluding brokered CDs. Favorable Funding Mix Total Deposit Composition (%) Core Deposits(1) ($ millions) Core deposits increased $567 million during 2018 Reliance on brokered CDs declined $595 million in 2018 Non-interest bearing deposits continue to grow and now
Slide 10: Geographic Diverse Business Model Sustains Portfolio
Geographic Diverse Business Model Sustains Portfolio 1) Including refinancing and draws from existing revolving and non-revolving commitments. Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Puerto Rico is s
Slide 11: Improving Core Performance
Improving Core Performance 4Q 2018 net income includes a $53.3 million net tax benefit, ($63.2 million one-time benefit resulting from the partial reversal of the Corporation’s deferred tax asset valuation allowance, net of a one-time non-cash charge of $9.9 million related to the impact of the tax
Slide 12: Improving Core Performance
Improving Core Performance Pre-tax pre-provision income of $67.6 million; 2018 four quarter average of $62.5 million Replacement of NPLs with performing loans should further reduce provisioning needs Potential for additional loan growth opportunities; while changing the mix to higher yielding loans
Slide 13: Proactively Managing Asset Quality
Proactively Managing Asset Quality Commercial NPLs (Includes HFS) NPA Composition Residential Consumer Construction Commercial Loans HFS REO & Repo $621 $467 $523 $651 Net Carrying Amount = % of unpaid principal balance net of reserves and accumulated charge-offs. $637 Non-Performing Assets ($ milli
Slide 14: Earnings Continue to Drive Significant Capital Formation
Earnings Continue to Drive Significant Capital Formation Tangible Book Value per Share Capital Ratios (%) Equity is valued at 119% of TBV (3/22/19) compared to the SNL bank index (167% of TBV) Capital ratios are among top 4% of banks above $10 billion in assets Capital ratios are approximately 1,000
Slide 15: Executing for Earnings Growth
Executing for Earnings Growth Puerto Rico Opportunities for ongoing market share gains Largest opportunity on deposit products, electronic banking & transaction services Growth in selected loan products for balanced risk/return to manage risk concentration and diversify income sources Dislocation in
Slide 16: Stronger Franchise: Proven Success Implementing Strategic Plan
Stronger Franchise: Proven Success Implementing Strategic Plan Our business model is diverse and scalable by segment (commercial, residential and consumer) and by unique markets (Puerto Rico, Southeast Florida & Eastern Caribbean). Our equity is valued at 119% of TBV (3/22/19) compared to the SNL ba
Slide 17: Exhibits
Exhibits
Slide 18: Franchise History
Franchise History Our turnaround story De-Risking of Balance Sheet Building Capital Enhanced Franchise Value June 2010: Written Agreement with the FED and Consent Order with FDIC. July 2010: The U.S. Treasury exchanged TARP preferred for convertible preferred. August 2010: Exchange of 89% Perpetual
Slide 19: Diversity in Core Franchise
Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities Line of business diversification: Commercial represents 42%, residential represents 36% and consumer represents 22% of the total l
Slide 20: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (3/22/19): $10.76 Shares Outstanding (in 000’s as of 12/31/18): 217,235 Market Capitalization (3/22/19): $2.3 billion Average 3M Daily Volume: 1,483,715 Tangible Book Value per Share (12/31/18) $9.07 Price (3/22/19) to Tangible Book Value
Slide 21: FBP Stock Price Performance
FBP Stock Price Performance FBP showed strong institutional demand for shares following the aftermath of the hurricanes. 1) Source: SNL Financial. Information January 2, 2018 to March 22. 2019.
Slide 22: Puerto Rico Bank Sector Price / TBV Performance
Puerto Rico Bank Sector Price / TBV Performance Puerto Rico bank valuations continue to trail the broader market. 1) Source: SNL Financial. Information January 2, 2018 to March 22, 2019.
Slide 23: Fourth Quarter 2018 Results
Fourth Quarter 2018 Results
Slide 24: Fourth Quarter & FYE 2018 Highlights
Fourth Quarter & FYE 2018 Highlights 4Q 2018 FYE 2018 Profitability Net income of $101.1 million, or $0.46 per diluted share. Adjusted 4Q 2018 net income of $44.4 million, or $0.20 per diluted share, compared to adjusted $34.7 million in 3Q 2018. Adjusted pre-tax, pre-provision (“PTPP”) income of $6
Slide 25: Fourth Quarter & FYE 2018 Highlights
Fourth Quarter & FYE 2018 Highlights 4Q 2018 FYE 2018 Core Deposits 4Q 2018 deposits, net of government and brokered CDs, of $7.5 billion down $40.5 million compared to 3Q 2018. 4Q 2018 Puerto Rico deposits, net of government and brokered, increased $14.6 million, reflecting growth of $44.9 million
Slide 26: Results of Operations: Fourth Quarter Financial Highlights
Results of Operations: Fourth Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 27: Net Interest Income Key Highlights
Key Highlights Net Interest Income ($ millions) Net interest income increased $5.2 million in 4Q 2018. This increase was mainly due to: A $2.6 million increase in interest income on commercial and construction loans, due to higher balances and upward repricing of variable rate commercial loans. A $2
Slide 28: Results of Operations: Non-Interest Income
Non-interest income for 4Q 2018 amounted to $20.5 million, compared to $18.5 million for 3Q 2018. The $2.0 million increase was primarily due to: The 3Q 2018 effect of a $2.7 million net loss from sales of $24.5 million of non-performing commercial and construction loans held for sale. A $0.5 millio
Slide 29: Results of Operations: Non-interest Expenses
Results of Operations: Non-interest Expenses Non-interest expenses decreased by $0.2 million in 4Q 2018 to $90.7 million due to: A $1.0 million decrease in Other, mainly related to quarterly revisions to the reserve for operational losses A $0.2 million decrease in occupancy and equipment costs. The
Slide 30: Results of Operations: Net Charge-offs
Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 4Q 2018 were $11.9 million, or an annualized 0.54% of average loans, compared to $33.0 million, or an annualized 1.52% of average loans, in 3Q 2018. The $21.1 million reduction was primarily related to: $12.5 million in charge-offs take
Slide 31: Results of Operations: FYE 2018 Financial Highlights
Results of Operations: FYE 2018 Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 32: NPL Migration
NPL MIGRATION (Sin 00) Besinning balance $ 156,685 $ 129,769 $ 36,341 $ 39,086 $ 21,664 $ 383,545 Additions to non-performing. 15,959 573 199 : 11,691 28,422 von paomin bas transtered to OREO 9) a0) Non-performing loans charged-off (4,620) (3,261) (410) (108) (8,911) (17,310) Loans returned to accru
Slide 33: Fourth Quarter 2018 Highlights: PR Government Exposure
Fourth Quarter 2018 Highlights: PR Government Exposure ($ in millions) As of December 31, 2018, the Corporation had $214.7 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $221.4 million as of September 30, 2018. 89% of direct governme
Slide 34: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 35: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 36: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 37: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin