Slide 1: Financial Results First Quarter 2012
Exhibit 99.1 Financial Results First Quarter 2012
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and involve risks and uncertaintie
Slide 3: Q1 2012 Highlights
Q1 2012 Highlights • Net income for the quarter amounted to $48.4 million; our fifth consecutive profitable quarter • Continued improvement in credit quality trends in non-covered portfolio NPLs declined by $56 million NPL inflows (commercial and construction) declined by 21% Net charge-offs decreas
Slide 4: Financial Results
Financial Results $ in thousands (except per share data) Q1 20121 Q4 20111 Variance Net interest income $337,582 $344,780 ($7,198) Service fees & other oper. income 129,710 113,848 15,862 Gain on sale of investments, loans & trading profits 9,453 18,064 (8,611) Total revenues before FDIC (expense) i
Slide 5: Significant Quarterly Variances
(1) Significant Quarterly Variances $13.6 million from the covered portfolio related to certain pools of mortgage loans with lower interest accretion in Q1 (extended average Net interest income ($7,198) life estimates) offset by lower interest expense on deposits and repayment of FDIC note ($6.3 mil
Slide 6: Capital Ratios
Capital Ratios • Strong capital ratios above CCAR banks and peers (1) (4) Popular Q1 2012 Peers Average CCAR Average 17.79 16.51 16.24 15.70 13.76 12.53 12.98 3 10 11.18 10.65 8.83 9.15 7.01 6%3 3 5% 2 Tier 1 Common Tier 1 Capital Total Capital Tangible Common Equity 1 Peers include: CMA, HBAN, ZION
Slide 7: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) Q1 12 vs Q1 12 vs • TotalLoansremainedrelatively flat Q1 12 Q4 11 Q1 11 $ in millions Q4 11 Q1 11 Loans Held to Maturity (HTM) $20,479 $20,602 -0.60% $20,677 -0.96% Loans Held for Sale 362 363 -0.28% 570 -36.49% • NPLsdecreasedfor the secondconse
Slide 8: Credit Quality Overview - Selected Portfolios
Credit Quality OverviewSelected - Portfolios • Total commercial and construction NPL Commercial & Construction NPL Inflows inflows decreasedby $37 million or 21% drivenby decreasesin bothPRandthe US In PR, commercial and construction NPL inflows decreased by $8 million or 8% In the US, commercial an
Slide 9: Allowance for Loan and Lease Losses (ALLL)
Allowance for Loan and Lease Losses (ALLL) GeneralReserve-ASC450(FAS5) + SpecificReserve-ASC310(FAS114) = TotalALLL • General reserveBased - on historical losses adjusted for a recent trendfactor+ Methodology environmental factor • Specific reserveAttributed - to loans deemed impaired (mostly commer
Slide 10: Coverage Ratio
Coverage Ratio •The coverage ratio of 39.5% does not take into account the high percentage of individually analyzed loans and lifetime charge-offs Total NPLs $ in millions $1,682 Individually Analyzed Collectively Analyzed $849 $833 1 1 CoverageRatio(CR): 3% Coverage Ratio (CR) : 76% 2 2 AdjustedCov
Slide 11: Summary & Outlook
Summary & Outlook 2012 Strategy • Further improve credit risk profile • Add low-risk assets • Continue efficiency efforts • Continue improvement at BPNA Well positioned to deliver results in 2012 • Reaffirming 2012 target range net income of $185 million to $200 million • Improvement in credit trend
Slide 12: Appendix
Appendix
Slide 13: P.R. & US Business
P.R. & US Business PR US $ in millions (Unaudited) Q1 12 Q4 11 Variance Q1 12 Q4 11 Variance Net Interest Income $290 $299 ($9) $74 $73 $1 Non Interest Income 114 136 (22) 16 21 (5) Gross Revenues 404 435 (31) 90 94 (4) Provision (non-covered) 68 88 (20) 15 36 (21) Provision (covered WB) 18 56 (38)
Slide 14: Credit Ratings Update
Credit Ratings Update • Our senior unsecured ratings have been gradually improving since 2010: Moody’s: Ba1 Negative Outlook S&P: B+ Stable Outlook Fitch: B+ Positive Outlook • April 2012: Moody’s placing most of the PR banks under review with the possibility of downgrades, due to the state of the P
Slide 15: Financial Results First Quarter 2012
Financial Results First Quarter 2012