25 slides from First Bancorp. New's earnings presentation, Jan 26, 2017
Slide 1: Financial Results 4Q & FYE 2016
Financial Results4Q & FYE 2016
Slide 2: Forward-looking statements
2 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 meant to identify “forwar
Slide 3: Agenda
Agenda Fourth Quarter & Fiscal Year End 2016 Highlights Aurelio Alemán, President & Chief Executive OfficerFourth Quarter & Fiscal Year End 2016 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights: Fourth Quarter & FYE 2016 Highlights
Key Highlights 4 Fourth Quarter & FYE 2016 Highlights
Slide 5: Profitability and Asset Quality
Profitability Net income of $23.9 million, or $0.11 per diluted share, compared to $24.1 million in 3Q 2016. Adjusted pre-tax, pre-provision income of $55.0 million, compared to $50.2 million for 3Q 2016. On a year-over-year basis, net income of $93.2 million for 2016, or $0.43 per diluted share, co
Slide 6: Loan Originations and Loan Portfolio
6 Loan Originations* ($ millions) Loan Portfolio ($ millions) $880 Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Despite a challenging market environment, we continue to achieve results through our regional diversification: * Including refinancing and draws from ex
Slide 7: Total Deposit Composition and Core Deposits
7 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. Core deposits stable; continue reducing reliance on brokered deposits Fourth Quarter 2016 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $7,241 $7,429 $7,416 $7,4
Slide 8: PR Government Exposure
8 Fourth Quarter 2016 Highlights: PR Government Exposure ($ in millions) *Net Carrying Amount = % of unpaid principal balance net of reserves and accumulated charge-offs. As of December 31, 2016, the Corporation had $323.3 million of direct exposure to the Puerto Rico Government, its municipalities
Slide 9: Results of Operations Fourth Quarter 2016 Results
9 Results of Operations Fourth Quarter 2016 Results
Slide 10: Fourth Quarter Financial Highlights
10 Results of Operations: Fourth Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income increased $2.9 million in 4Q 2016. This increase was mainly due to:A $1.7 million increase in interest income on loans mainly due to recovery of interest income on non-performing commercial loans which fully paid-off in 4Q 2016;
Slide 12: Cost of Deposits
12 Key Highlights Cost of Deposits (%) Cost of total deposits, excluding brokered CDs, declined to 0.60%.The average rate paid on non-brokered interest-bearing deposits decreased 2 basis point to 0.75% during 4Q 2016.The average balance of brokered CDs declined by $167.9 million during 4Q 2016. Resu
Slide 13: Adjusted Non-Interest Income
13 Key Highlights Adj. Non-Interest Income* ($ millions) * Non-GAAP adjusted non interest income – See Appendix page 25 for reconciliation. Non-interest income decreased $2.6 million in the quarter, mostly related to a $6.1 million gain in the sale of US Agency MBS in 3Q 2016, partially offset by a
Slide 14: Operating Expenses
14 Results of Operations: Operating Expenses Non-interest expenses decreased by $4.1 million in 4Q 2016 to $84.2 million, due to:The effect of a $2.7 million adjustment recorded in the fourth quarter to reduce the credit card rewards liability due to the expiration of reward points.A $1.4 million de
Slide 15: Non-Performing Assets
15 Non-Performing Assets ($ millions) Total non-performing loans, including non-performing loans held for sale, decreased by $6.6 million, due to the sale of a small pool of NPAs with a total carrying value of $16.3 million.New non-performing loan inflows were $67.9 million in 4Q 2016, an increase o
Slide 16: Net Charge-Offs
16 Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 4Q 2016 were $32 million, an annualized 1.43% of average loans, compared to $42 million in 2Q 2016. Approximately $4.6 million of the charge-offs recorded in 4Q 2016 are related to the sale of a small pool of commercial NPAs. A
Slide 17: Year-Over-Year Financial Highlights
17 Results of Operations: Year-Over-Year Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 18: Capital Position
18 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.8 billion as of December 31, 2016, a decrease of $13.6 million from September 30, 2016, mainly driven by a decrease of $38.8 million in other comprehensive income mainly related to the decrease in
Slide 19: Fourth Quarter Results Q & A
19 Fourth Quarter Results Q & A
Slide 20: Fourth Quarter Results Exhibits
20 Fourth Quarter Results Exhibits
Slide 21: NPLs Held for Investment - Migration
21 NPLs Held for Investment - Migration ($ 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
Slide 24: Use of Non-GAAP Financial Measures
24 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 25: Use of Non-GAAP Financial Measures
25 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