23 slides from First Bancorp. New's earnings presentation, Apr 26, 2016
Slide 1: Financial Results 1Q 2016
Financial Results1Q 2016
Slide 2: Forward-looking statements
2 This presentation contains “forward-looking statements” concerning First BanCorp’s (the “Corporation”) future economic performance. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “expect,” “anticipate,” “look forward,” “should,” “believes” and
Slide 3: Agenda
Agenda First Quarter 2016 Highlights Aurelio Alemán, President & Chief Executive OfficerFirst Quarter 2016 Results of Operations Orlando Berges, Executive Vice President & Chief Financial OfficerQuestions & Answers 3
Slide 4: Key Highlights First Quarter 2016 Results
4 Key Highlights 4 First Quarter 2016 Results
Slide 5: Profitability and Asset Quality highlights
5 Profitability Net income of $23.3 million, or $0.11 per diluted share, compared to $15.0 million in 4Q 2015.Adjusted net income, excluding items that affect comparability, was $25.8 million, compared to $15.1 million in 4Q 2015.Net interest income declined $0.6 million mainly driven by a decline i
Slide 6: Loan Originations and Loan Portfolio
6 Loan Originations* ($ millions) Loan Portfolio ($ millions) $9,567 $880 $781 Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Loan Portfolio:Commercial and construction portfolio declined by $88 million as two large commercial loans totaling $99 million paid-off dur
Slide 7: First Quarter 2016 Highlights: Deposit Mix
7 Total Deposit Composition (%) Core Deposits* ($ millions) * Core deposits are total deposits excluding brokered CDs. $7,269 Non-brokered deposits, excluding government deposits, increased $137 million in 1Q 2016, primarily demand and savings accounts in Puerto Rico and the Virgin Islands.Reduced r
Slide 8: First Quarter 2016 Highlights: PR Government Exposure
8 First Quarter 2016 Highlights: PR Government Exposure Total outstanding exposure to the Puerto Rico Government was $359 million with a book value of $341 million as of 1Q 2016, down from $361 million as of 4Q 2015.Investment portfolio outstanding principal of $65.6 million with a book value of $43
Slide 9: Results of Operations First Quarter 2016 Results
9 Results of Operations First Quarter 2016 Results
Slide 10: First Quarter Financial Highlights
10 Results of Operations: First Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 11: Key Highlights: Net Interest Income
11 Key Highlights Net Interest Income ($ millions) Net interest income decreased $0.6 million in 1Q 2016. This decrease was mainly due to:A $1.0 million decrease in interest income on consumer loans directly attributed to the $35 million reduction in average balance (primarily auto); andA $0.3 milli
Slide 12: Key Highlights: Cost of Deposits
12 Key Highlights Cost of Deposits (%) Cost of total deposits, excluding brokered CDs, remained flat at 0.62%.The average rate paid on non-brokered interest-bearing deposits increased by 1 basis point to 0.76% during the 1Q 2016.Brokered CDs declined by $91.2 million during 1Q 2016. Results of Opera
Slide 13: Key Highlights: Non-Interest Income
13 Key Highlights Non-Interest Income* ($ millions) * Non interest income excludes equity losses of unconsolidated entities, OTTI, HFS bulk sale impact and bargain purchase gain. Excluding the $6.7 million OTTI charge on Puerto Rico Government debt securities and the $4.2 million pre-tax gain on the
Slide 14: Operating Expenses
14 Results of Operations: Operating Expenses Non-interest expenses decreased by $3.0 million in 1Q 2016 to $93.0 million. Excluding non-recurring expense of $2.2 million related to the voluntary early retirement program reflected in 4Q 2015 employees’ compensation and benefits, non-interest expenses
Slide 15: Non-Performing Assets
15 Non-Performing Assets ($ millions) Total non-performing loans, including non-performing loans held for sale, increased by $132 million, or 21%, driven by commercial loans guaranteed by the TDF.Excluding TDF guaranteed exposures, NPAs declined $1.2 million compared to 4Q 2015.New non-performing lo
Slide 16: Key Highlights: Net Charge-Offs
16 Key Highlights Net Charge-Offs ($ millions) Total net charge-offs for 1Q 2016 were $24 million, or 1.03% of average loans, compared to $22 million in 4Q 2015. Allowance coverage ratio of 2.61% remained flat compared to 4Q 2015. The ratio of the allowance to NPLs held for investment was 41.4% as o
Slide 17: Capital Position
17 Results of Operations: Capital Position Capital Ratios (%) Total stockholders’ equity amounted to $1.7 billion as of March 31, 2016, an increase of $55.0 million from December 31, 2015, mainly driven by $23.3 million of net income and an increase of $24.6 million in other comprehensive income att
Slide 18: First Quarter Results Q&A
First Quarter Results Tan Bancorp | Q&A
Slide 19: First Quarter Results Exhibits
19 First Quarter Results Exhibits
Slide 20: Key Margin Drivers
20 Results of Operations: Key Margin Drivers Q1 vs. Q4 Change in Average Interest Earning Assets & Interest Bearing Liabilities * On a tax equivalent basis and excluding valuations ($ in 000)
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 may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operati
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 may contain non-GAAP financial measures. Non-GAAP financial measures are set forth when management believes they will be helpful to an understanding of the Corporation’s results of operati