First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (February 2017)
31 slides from First Bancorp. New's investor presentation, Feb 9, 2017
Slide 1: First BanCorp Investor Presentation February 2017
First BanCorp Investor Presentation February 2017 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” concerning the Corporation’s future economic, operating and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes,” “estimates” and similar expre
Slide 3: Compelling Value Proposition
Compelling Value Proposition Turnaround well underway highlighted by improving operating performance. Successfully navigating challenging operating environment; capturing market share and increasing profitability. Experienced, cohesive leadership team committed to enhancing shareholder value and mai
Slide 4: Franchise Overview
Franchise Overview Founded in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida. ~2,650 FTE employees(1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share. Florida presen
Slide 5: Timeline of key transactions 2010-2013
June 2010: Written Agreement with the FED and Consent Order with FDIC. July 2010: The U.S. Treasury exchanged TARP preferred for convertible preferred. August 2010: Exchange of 89% Perpetual Preferred Stock for Common. Feb 2011: Sale of non-performing loans with book value of $269 million. Feb-April
Slide 6: Franchise Positioning
Franchise Positioning Well-positioned Puerto Rico institution in a consolidating market Source: PR Market Share Report prepared with data provided by the Commissioner of Financial Institutions of Puerto Rico as of 9/30/16. 1) Puerto Rico only. 2) Calculated as institution bank branches within a mile
Slide 7: Diversified Business Model Across Regions
Diversified Business Model Across Regions Consumer Banking Mortgage Banking Commercial Lending Focus on small to middle market commercial and corporate borrowers across FBP’s footprint. Complimented by full suite of deposit and business products. Balanced risk/return profile to manage concentration
Slide 8: Diversity in Core Franchise
Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities. Line of business diversification: Commercial represents 44%, residential represents 37% and consumer represents 19% of the total
Slide 9: Favorable Funding Mix: Core Deposit Growth
Total Deposit Composition (%) Core Deposits(1) ($ millions) 1) Core deposits are total deposits excluding brokered CDs. Non-brokered deposits, excluding government deposits, increased $164 million in 2016. Reliance on brokered deposits declined $658 million in 2016. Puerto Rico non-brokered deposits
Slide 10: Geographic Diverse Business Model Sustains Portfolio
Geographic Diverse Business Model Sustains Portfolio 1) Including refinancing and draws from existing revolving and non-revolving commitments. Loan Originations1 ($ millions) Loan Portfolio ($ millions) $880 Residential Mortgage Consumer & Finance Leases Construction Commercial Loans HFS Despite a c
Slide 11: Proactively Managing Asset Quality: Non-Performing Assets
Non-Performing Assets ($ millions) Excluding Puerto Rico government exposure, inflows have remained stable and NPAs have declined $182 million since 2014. Organic resolution plan focused on government exposures and large REO, which is approximately 47% of non-performing assets. Significant cumulativ
Slide 12: Quarterly Non-Performing Loan Migration Trends
Proactively Managing Asset Quality Quarterly Non-Performing Loan Migration Trends ($ in millions)
Slide 13: Puerto Rico Government Exposure
Puerto Rico Government Exposure ($ in millions) As of December 31, 2016, the Corporation had $323.3 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $325.9 million as of September 30, 2016. Available-for-sale investment portfolio outst
Slide 14: Stable Core Performance in Challenging Environment
Stable Core Performance in Challenging Environment Pre-tax pre-provision income of $55.0 million(2) average 4 quarters of $52 million. Replacement of NPLs with performing loans should reduce provisioning needs. Future earnings potential with a reduction in costs associated with managing NPLs and ORE
Slide 15: Executing for Earnings Growth
Executing for Earnings Growth Puerto Rico Opportunities for ongoing market share gains Largest opportunity on deposit products, electronic banking & transaction services. Growth in selected loan products for balanced risk/return to manage risk concentration and diversify income sources. FirstBank-br
Slide 16: Earnings Continue to Drive Significant Capital Formation
Earnings Continue to Drive Significant Capital Formation Tangible Book Value per Share Capital Ratios (%) Published DFAST results in October; under the severely adverse scenario, stressed capital ratios are significantly above regulatory capital requirements DFAST Projected Stressed Capital Ratios (
Slide 17: Stronger Franchise: Proven Success Implementing Strategic Plan
Stronger Franchise: Proven Success Implementing Strategic Plan Turnaround well underway highlighted by improving operating performance. Successfully navigating challenging operating environment; capturing market share and increasing profitability. Experienced, cohesive leadership team committed to e
Slide 18: Exhibits
Exhibits
Slide 19: Stock Profile
Stock Profile Trading Symbol: FBP Exchange: NYSE Share Price (2/7/17): $6.64 Shares Outstanding (as of December 31, 2017): 217,469,601 Market Capitalization (2/7/17): $1.4 billion 1 Yr. Average Daily Volume: 966,680 Price (2/7/17) to Tangible Book (12/31/16): 0.85x Includes the U.S. Treasury warrant
Slide 20: Profitability and Asset Quality Highlights
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 $0.43 per diluted share, co
Slide 21: Results of Operations: Fourth Quarter Financial Highlights
Results of Operations: Fourth Quarter Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 22: Results of Operations: Net Interest Income
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; an
Slide 23: Results of Operations: Cost of Deposits
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 $167.9 million during 4Q 2016. Resul
Slide 24: Results of Operations: Non-Interest Income
Key Highlights Adj. Non-Interest Income* ($ millions) * Non-GAAP adjusted non interest income – See page 31 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 $1.7 million
Slide 25: Results of Operations: Operating Expenses
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 $1.4 million dec
Slide 26: Results of Operations: Net Charge-offs
Key Highlights Net Charge-Offs ($ 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 $4.6 million of the charge-offs recorded in 4Q 2016 are related to the sale of a small pool of commercial NPAs. Allo
Slide 27: Results of Operations: Year-Over-Year Financial Highlights
Results of Operations: Year-Over-Year Financial Highlights ($ in thousands, except per share data) Select Financial Information
Slide 28: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 29: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 30: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin
Slide 31: Use of Non-GAAP Financial Measures
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 they will be helpful to an understanding of the Corporation’s results of operations or fin
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