Slide 1: Financial Results 2Q 2023
FINANCIAL RESULTS 2Q 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 2Q 2023 Quarter Highlights Aurelio Alemán, President and Chief Executive Officer 2Q 2023 Results of Operations Orlando Berges, Executive Vice President and Chief Financial Officer Questions and Answers |3
Slide 4: Second Quarter 2023 Performance Highlights
SECOND QUARTER 2023 PERFORMANCE HIGHLIGHTS ▪ Net income of $70.7 million ($0.39 per diluted share), compared to $70.7 million ($0.39 per diluted share) in 1Q 2023 o Adjusted net income of $66.8 million ($0.37 per share) after excluding non-recurring items ▪ Return on average assets (“ROAA”) remains
Slide 5: Balance Sheet Metrics – Loan Portfolio
SECOND QUARTER 2023 BALANCE SHEET METRICS – LOAN PORTFOLIO Loan Portfolio - $MM Commercial Loan Portfolio Distribution - $MM Exposure at Repricing $11,565 $11,593 $11,734 $5,263 / Maturity Date $11,229 $11,311 $12 $12 $15 $14 Loans HFS $23 C&I 2023-2024 $65 $2,320 $2,942 Commercial $5,238 $5,211 $5,
Slide 6: Balance Sheet Metrics – Deposits and Liquidity
SECOND QUARTER 2023 BALANCE SHEET METRICS – DEPOSITS AND LIQUIDITY Total Deposits (excluding Brokered CDs) - $MM Composition of Deposit Portfolio vs. Unused Liquidity - $MM(2) Cash & Equivalents Free Liquid Securities $17,066 $16,524 $16,456 FHLB Availability $16,038 $15,799 $16,456 Public Funds $2,
Slide 7: Operating Environment and Franchise Highlights
OPERATING ENVIRONMENT AND FRANCHISE HIGHLIGHTS Stable operating environment in our main market Franchise Highlights PR Economic Activity Index (EAI)(1) ▪ Economic Activity Index continues to show a ▪ Well-diversified and granular deposit franchise recovery trend; May 2023 registered highest YoY Chan
Slide 8: Results of Operations
RESULTS OF OPERATIONS EE! sancorp
Slide 9: Discussion of Results
SECOND QUARTER 2023 HIGHLIGHTS DISCUSSION OF RESULTS Income Statement Selected Financial Data 2Q 2023 1Q 2023 Variance 2Q 2022 2Q 2023 1Q 2023 Variance 2Q 2022 ($ in thousands, except per share data and ($ in thousands) financial ratios) Interest income $ 252,204 $ 242,396 $ 9,808 $ 208,625 Adjusted
Slide 10: Profitability Dynamics: Net Interest Income
SECOND QUARTER 2023 HIGHLIGHTS PROFITABILITY DYNAMICS Net Interest Income ($MM) Cumulative Deposit Betas by Deposit Type(1) 75% 250 10 $196.2 $207.9 $205.6 $200.9 $199.8 200 8 52% 150 4.31% 4.37% 4.34% 6 4.00% 4.23% 100 4 14% 50 2 0 0 2Q22 3Q22 4Q22 1Q23 2Q23 3Q22 4Q22 1Q23 2Q23 Net Interest Income
Slide 11: Profitability Dynamics: Non-Interest Income and Expenses
SECOND QUARTER 2023 HIGHLIGHTS PROFITABILITY DYNAMICS Non-Interest Income ($MM) Non-Interest Expenses ($MM) Credit Related Payroll Related Other Operating Expenses 40 $36.3 10 $30.9 $32.5 $29.7 $29.6 8 $115.2 $115.3 30 120 $112.9 $112.9 9.5 115 $108.3 $0.2 9.0 $24.1 8.5 6 110 $17.4 $20.2 8.0 $16.5 1
Slide 12: Asset Quality
SECOND QUARTER 2023 HIGHLIGHTS ASSET QUALITY Non-Performing Assets - $MM Repossessed Assets and Other Loans HFI NPAs/Assets Repossessed Assets and Other Residential Commercial Consumer Construction 15 0 $147 $143 1.0 5 15 0 $147 $143 10 14 5 14 5 14 0 $129 $129 1.0 0 14 0 $129 $129 $121 $121 13 5 13
Slide 13: ACL Levels and Capital Position
SECOND QUARTER 2023 HIGHLIGHTS ACL LEVELS AND CAPITAL POSITION Evolution of ACL ($ in Millions) and Capital Ratios (%) ACL on Loans to Total Loans (%) 19.7 19.4 19.2 19.0 19.2 300 $278 $281 $264 $4 $5 17.0 17.0 16.7 16.7 16.5 16.5 16.3 16.3 16.6 16.6 $248 $2 $8 $9 250 $4 $10 7.5 $8 200 10.7 10.7 $15
Slide 14: Exhibits
EE! sancorp EXHIBITS 114
Slide 15: Puerto Rico Government Exposure
SECOND QUARTER 2023 HIGHLIGHTS PUERTO RICO GOVERNMENT EXPOSURE Government Loans Government Deposits Total Transaction Government Unit Source of Repayment Government Unit Time Deposits Total Outstanding Accounts Municipalities $ 42.2 $ 562.2 $ 604.4 PR Securities $ 3.3 Municipal Agency - - - Municipa
Slide 16: NPL Migration
SECOND QUARTER 2023 HIGHLIGHTS NPL MIGRATION June 30, 2023 Residential Commercial Commercial & Construction Consumer Total Mortgage Mortgage Industrial Beginning balance $ 36,410 $ 21,598 $ 13,404 $ 1,794 $ 15,936 $ 89,142 Plus: Additions to non-performing 3,009 439 2,691 - 18,790 24,929 Less: Non-p
Slide 17: Use of Non-GAAP Financial Measures
SECOND QUARTER 2023 HIGHLIGHTS 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
Slide 18: Use of Non-GAAP Financial Measures
SECOND QUARTER 2023 HIGHLIGHTS 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 e
Slide 19: Financial Results 2Q 2023
FINANCIAL RESULTS 2Q 2023 | 19