First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Q1 2020 Earnings Presentation
25 slides from First Bancorp. New's earnings presentation, Apr 30, 2020
Slide 1: Financial Results First Quarter 2020
Financial ResultsFirst Quarter 2020
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 First Quarter 2020 Highlights Aurelio Alemán, President & Chief Executive OfficerFirst Quarter 2020 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: First Quarter 2020 Highlights
First Quarter 2020 Highlights
Slide 5: Operational Strength & Readiness: COVID-19 Pandemic Response
Operational Strength & Readiness COVID-19 Pandemic Response 5 Swiftly implemented relief programs for commercial, consumer and residential mortgage customers in all regionsStrong performance in delivering Small Business Administration’s “Paycheck Protection Program” to clients and small business in
Slide 6: First Quarter 2020 Highlights
6 First Quarter 2020 Highlights Profitability Net income of $2.3 million, or $0.01 per diluted share compared to $36.4 million, or $0.16 per diluted share in 4Q 2019Financial results for 1Q 2020 included the effect of a reserve build for loans and debt securities of $59.8 million ($39.8 million afte
Slide 7: First Quarter 2020 Highlights: Loan Portfolio
7 Loan Originations* ($ millions) Loan Portfolio ($ millions) Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Loan origination activity disrupted by COVID-19 pandemic: * Including refinancing and draws from existing revolving and non-revolving commitments. First Quar
Slide 8: Strong Credit Quality Mitigants in Place
Strong Credit Quality Mitigants in PlaceUnprecedented Short-Term Mitigants to Support the Economy 8 Strong regulatory support under recently issued regulatory inter-agency guidance “encourages financial institutions to work constructively with borrowers affected by COVID 19, will not criticize insti
Slide 9: Results of Operations
Results of Operations
Slide 10: Results of Operations: First Quarter Highlights
10 Results of Operations: First Quarter Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: CECL Adoption
CECL AdoptionCECL Q1 2020 ACL to Total Loans Provides Ample Coverage 11 Evolution of ACL ($ in millions) & ACL on Loans to Total Loans (%) Key Highlights Effective January 1, 2020, the Corporation adopted CECL to estimate the allowance for credit losses (“ACL”).The allowance for credit losses on loa
Slide 12: Results of Operations: Net Interest Income
12 Key Highlights Net Interest Income ($ millions) Net interest income decreased $1.3 million in 1Q 2020, $0.9 million related to one less day in the quarter and the remaining mostly due to interest rate reductionsThe interest rate on approximately 64% of the commercial and construction loans is bas
Slide 13: Results of Operations: Non-Interest Income
13 Non-interest income for 1Q 2020 amounted to $30.2 million, compared to $24.4 million for 4Q 2019. The $5.8 million increase was primarily due to: An $8.2 million tax exempt gain on sales of approximately $275.6 million of available-for-sale U.S. agencies MBS. A $2.7 million increase in insurance
Slide 14: Results of Operations: Non-interest Expenses
14 Results of Operations: Non-interest Expenses Non-interest expenses decreased by $10.1 million in 1Q 2020 to $92.2 million due to: A $10.0 million decrease in merger and restructuring costs in connection with the pending acquisition, including a $3.4 million charge in 4Q 2019 related to the volunt
Slide 15: Results of Operations: Asset Quality - Non-Performing Assets
15 Non-Performing Assets ($ millions) A $3.4 million increase in nonaccrual consumer loans, primarily auto loans, driven by consumer loans that migrated to nonaccrual status prior to the deferral payment programs established by the Corporation to assist borrowers affected by the COVID-19 pandemic.A
Slide 16: Results of Operations: Net Charge-Offs
16 Key Highlights Net Charge-Offs ($ millions) Net charge-offs for 1Q 2020 were $17.6 million, or an annualized 0.78% of average loans, compared to $18.9 million, or an annualized 0.84% of average loans, in 4Q 2019. The decrease of $1.3 million in net charge-offs was mainly related to a $2.2 million
Slide 17: Exhibits
Exhibits
Slide 18: First Quarter 2020 Highlights: Deposit Mix
18 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered deposits. Continue improving deposit mix; core deposits increased over $91 million in 1Q 2020. First Quarter 2020 Highlights: Deposit Mix Retail Commercial CDs & IRAs Public Funds $8,88
Slide 19: First Quarter 2020 Highlights: Capital Position
19 First Quarter 2020 Highlights: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $2.2 billion as of March 31, 2020, a decrease of $28.3 million from December 31, 2019. The decrease was driven by the $62.3 million transition adjustment related to the adoption of CECL recor
Slide 20: First Quarter 2020 Highlights: PR Government Exposure
20 First Quarter 2020 Highlights: PR Government Exposure ($ in millions) As of March 31, 2020, the Corporation had $203.3 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $204.5 million as of December 31, 2019. 89% of direct government
Slide 21: NPL Migration
NPL Migration (Sin 000) Beginning balance $ 121,408 § 40,076 $ 18,773 $ 9,782 § 20,629 $ 210,668 Pls: Additions to non-performing 12,588 351 2,568 - 15,578 31,085 Less: Non-performing loans transferred to OREO (3,550) (126) (263) - (1,698) (5,637) Non-performing loans charged:-off (3,234) (125) (124
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