First BanCorp. (NYSE:FBP) Q3 2021 Earnings Conference Call October 25, 2021 10:00 AM ET Company Participants Ramon Rodriguez - Investor Relations Aurelio Alemán - President and Chief Executive Officer Orlando Berges - Executive Vice President and Chief Financial Officer Conference Call Participants Alex Twerdahl - Piper Sandler Operator Hello, everyone. Good morning, and welcome to the First BanCorp's 3Q 2021 Financial Results Call. My name is Emily, and I'll be coordinating the call today. All participants ...

Financial Performance - Total interest income for the quarter ended June 30, 2021, was $201,459 thousand, an increase of 27% from $158,616 thousand in the same quarter of 2020[320] - Net interest income for the quarter was $184,783 thousand, up 37% from $135,210 thousand year-over-year[320] - Net income attributable to common stockholders for the quarter was $69,889 thousand, significantly higher than $20,587 thousand in the same quarter of 2020, representing a 239% increase[320] - The diluted net earnings per share for the quarter was $0.33, compared to $0.09 in the same quarter of the previous year, reflecting a 267% increase[320] - Adjusted net income for Q2 2021 was $78.2 million, compared to $21.9 million in Q2 2020, reflecting significant improvements in core operating performance[365] - Net income for the quarter ended June 30, 2021, was $70.6 million, or $0.33 per diluted common share, compared to $21.3 million, or $0.09 per diluted common share, for the same period in 2020[343] Credit Quality - Provision for credit losses showed a benefit of $(26,155) thousand compared to an expense of $39,014 thousand in the prior year, indicating improved asset quality[320] - The provision for credit losses on loans decreased to a net benefit of $26.2 million for the second quarter of 2021, compared to an expense of $39.0 million for the same period in 2020[345] - The allowance for credit losses (ACL) decreased to $339.5 million as of June 30, 2021, from $401.1 million at the end of 2020, due to net charge-offs and improved macroeconomic outlook[376] - Non-performing assets decreased by $37.9 million to $255.6 million as of June 30, 2021, driven by reductions in OREO portfolio and nonaccrual loans[356] - The provision for credit losses for loans and finance leases decreased by $62.7 million to a net benefit of $26.3 million for Q2 2021, compared to an expense of $36.4 million for Q2 2020[412] Asset and Liability Management - As of June 30, 2021, total assets were $21.4 billion, an increase of $2.6 billion from December 31, 2020[351] - Total liabilities increased to $19.2 billion as of June 30, 2021, driven by a $1.8 billion growth in government deposits[352] - Stockholders' equity decreased to $2.2 billion as of June 30, 2021, primarily due to the repurchase of 7.96 million shares of common stock for approximately $100 million[353] - The total loan portfolio decreased by $407.3 million to $11.4 billion compared to December 31, 2020, with reductions of $408.6 million in Puerto Rico and $22.6 million in the Virgin Islands, partially offset by a $23.9 million increase in Florida[463] Loan Production and Originations - Total loan production for Q2 2021 was $1.2 billion, up from $902.9 million in Q2 2020, with a $575.9 million increase in total loan originations excluding SBA PPP loans[355] - Total loan originations for the six-month period ended June 30, 2021, amounted to approximately $2.6 billion, compared to $1.8 billion for the same period in 2020[485] - Residential mortgage loan originations for the six-month period ended June 30, 2021, were $321.1 million, up from $194.6 million in the comparable period in 2020[486] - Commercial and construction loan originations for the six-month period ended June 30, 2021, amounted to $1.6 billion, compared to $1.2 billion for the same period in 2020[487] Deposits and Funding - Total deposits, excluding brokered and government deposits, increased to $13.8 billion as of June 30, 2021, up $1.0 billion from December 31, 2020[331] - Demand deposits increased by $946.2 million, and savings deposits increased by $308.3 million, partially offset by a $224.5 million decrease in retail CDs[514] - The Corporation had $2.9 billion of Puerto Rico public sector deposits as of June 30, 2021, compared to $1.8 billion as of December 31, 2020[513] - Brokered CDs decreased by $78.5 million to $137.7 million as of June 30, 2021, from $216.2 million as of December 31, 2020[508] Non-Interest Income and Expenses - Non-interest income increased to $29.9 million for the second quarter of 2021, compared to $20.9 million for the same period in 2020, primarily due to increased transactional fee income[348] - Non-interest expenses for the second quarter of 2021 were $130.2 million, including $11.0 million of merger and restructuring costs related to the BSPR acquisition[349] - Adjusted non-interest expenses for Q2 2021 were $118.0 million, compared to $83.9 million in Q2 2020, reflecting a $34.1 million increase primarily due to operations and personnel from BSPR acquisition[437] Taxation - Income tax expense for Q2 2021 was $40.1 million, compared to $6.0 million in Q2 2020, driven by higher pre-tax income and an estimated effective tax rate of 33%[457][458] - The estimated annual effective tax rate for the first six months of 2021 was 33%, compared to 25% for the same period in 2020[458] Investment Securities - The total available-for-sale investment securities portfolio as of June 30, 2021, was $6.4 billion, an increase of $1.8 billion from December 31, 2020[490] - The Corporation's held-to-maturity investment securities portfolio amounted to $190.0 million as of June 30, 2021, slightly up from $189.5 million at the end of 2020[492] - Approximately 99% of the available-for-sale securities portfolio was invested in U.S. government and agency debentures and fixed-rate GSEs' MBS as of June 30, 2021[491] Stock Repurchase Program - The stock repurchase program approved by the Board allows for the repurchase of up to $300 million of outstanding stock, with $125 million already executed as of August 4, 2021[324] - The Corporation repurchased 7.96 million shares of its common stock for a total of $100 million under a $300 million stock repurchase program during Q2 2021[502]

Financial Data and Key Metrics Changes - The company reported a net income of $70.6 million or $0.33 per share for Q2 2021, an increase from $61 million or $0.28 per share in the previous quarter [15][23] - Pre-tax pre-provision income rose to $96.6 million, up from $86.4 million in the last quarter [15][23] - The efficiency ratio improved to 60.6%, and adjusted for merger and COVID-related expenses, it was at 55% [16][34] - The allowance for credit losses decreased to $339 million, down $34 million from the prior quarter [38][40] Business Line Data and Key Metrics Changes - The consumer portfolio grew, driven by auto loans which increased by $98 million [18] - Non-interest income was impacted by a lack of contingent insurance commission received in the previous quarter, but transaction volumes on debit and credit cards increased [30] - Interest income from commercial and construction loans grew by $2.5 million, while interest expense decreased by $1.7 million [27][28] Market Data and Key Metrics Changes - The economic activity in Puerto Rico and Florida is approaching pre-pandemic levels, with improved consumer confidence reflected in retail sales and credit card activity [8][9] - Digital adoption increased, with registered users up 4% quarter-over-quarter and 20% year-over-year [10] - Government collections are on the rise, indicating improved economic activity [9] Company Strategy and Development Direction - The company is on track to complete full integration of operations, with significant synergies expected to be reflected in Q4 numbers [12] - Focus on digital transformation and enhancing customer support through integrated platforms [21] - The company aims to capture additional market share through its expanded franchise [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic recovery and its positive impact on the loan portfolio [21] - The company is well-positioned for the second half of the year, anticipating continued improvements in credit quality and economic conditions [21] - Management noted the importance of ongoing government stimulus in supporting customer liquidity [8] Other Important Information - The company repurchased 7.96 million shares for approximately $100 million under a $300 million repurchase program [17][45] - The total non-performing assets decreased by $29.3 million to $256 million, with non-accrual loans down to $183 million [42][44] Q&A Session Summary Question: Regarding expenses and guidance for future levels - Management expects to reach normalized expense levels of $117 to $119 million by Q4 2021, with savings from branch consolidations and service eliminations [48][50] Question: Outstanding merger expenses - Remaining merger restructuring charges are estimated to be between $4 million and $5 million for the second half of the year [52][53] Question: Capital management and buyback plans - The capital plan will be revisited next quarter, with potential adjustments based on franchise performance [55][56] Question: Asset quality metrics and loan loss reserves - Management aims for normalized reserve levels around 2.6%, with a target to reduce non-performing loans further [59][60] Question: Construction loan pipeline and timing - The construction pipeline is improving, linked to housing demand and investor activity, with expectations for continued growth [63][64]

Financial Performance - Total interest income for Q1 2021 was $194,642,000, an increase of 17.7% from $165,264,000 in Q1 2020[298] - Net income attributable to common stockholders for Q1 2021 was $60,481,000, compared to $1,597,000 in Q1 2020, reflecting significant growth[298] - The Corporation reported net income of $61.2 million, or $0.28 per diluted common share, for Q1 2021, compared to $2.3 million, or $0.01 per diluted common share, for Q1 2020[313] - Reported net income for Q1 2021 was $61.15 million, a significant increase from $2.27 million in Q1 2020[329] - Adjusted net income for Q1 2021 was $68.95 million, compared to a loss of $5.95 million in Q1 2020[329] Credit Losses and Provisions - The provision for credit losses showed a benefit of $(15,252,000) in Q1 2021, a substantial improvement from an expense of $77,366,000 in Q1 2020[298] - The provision for credit losses decreased by $92.6 million to a net benefit of $15.2 million in Q1 2021, compared to an expense of $77.4 million in Q1 2020[315] - Provision for credit losses for loans and finance leases was a net benefit of $14.4 million in Q1 2021, compared to an expense of $74.0 million in Q1 2020[369] - The provision for credit losses for residential mortgage loans was a net benefit of $4.2 million in Q1 2021, compared to an expense of $16.2 million in Q1 2020[370] - The provision for credit losses for unfunded loan commitments was a net benefit of $0.7 million in Q1 2021, compared to an expense of $1.8 million in Q1 2020[373] Deposits and Loans - Total deposits reached $16,010,436,000 as of March 31, 2021, an increase of $693,053,000 from December 31, 2020[307] - Total loan production for Q1 2021 was $1.2 billion, up from $802.6 million in Q1 2020, with $209.3 million in SBA PPP loans originated[323] - The total loan portfolio decreased by $129.7 million to $11.7 billion as of March 31, 2021, with reductions in residential mortgage loans and commercial loans[403] - The Corporation originated $209.3 million in PPP loans in the first quarter of 2021, with forgiveness remittances of approximately $175.7 million[413] - As of March 31, 2021, the Corporation had $197.5 million in loans extended to the Puerto Rico government and its municipalities, a slight decrease from $201.3 million as of December 31, 2020[414] Assets and Liabilities - Total assets increased to $19.4 billion as of March 31, 2021, up $620.7 million from December 31, 2020, primarily due to a $763.9 million increase in investment securities[320] - Total liabilities rose to $17.2 billion, an increase of $675.4 million from December 31, 2020, driven by a $472.3 million increase in total deposits[321] - The Corporation's total loans held for investment, net of the allowance for credit losses, amounted to $11.3 billion as of March 31, 2021[402] - The Corporation's total capital ratio was 20.73% as of March 31, 2021, exceeding the well-capitalized threshold of 10%[486] - The Corporation's stockholders' equity was $2.2 billion as of March 31, 2021, a decrease of $54.8 million from December 31, 2020[484] Operational Efficiency - The efficiency ratio for Q1 2021 was 64.33%, compared to 54.60% in Q1 2020, indicating increased operational costs[298] - Non-interest expenses for Q1 2021 were $133.3 million, compared to $92.2 million in Q1 2020, including $11.3 million of merger and restructuring costs related to the BSPR acquisition[318] - Adjusted non-interest expenses for Q1 2021 were $120.8 million, up from $92.1 million in Q1 2020, reflecting a $28.7 million increase primarily due to operations and personnel from the BSPR acquisition[389] Investment and Securities - The total available-for-sale investment securities portfolio as of March 31, 2021, amounted to $5.4 billion, a $759.8 million increase from December 31, 2020[430] - The Corporation's held-to-maturity investment securities portfolio was $189.7 million as of March 31, 2021, relatively flat compared to $189.5 million as of December 31, 2020[432] - The total investment securities available for sale increased from $4.6 billion to $5.4 billion, primarily due to purchases of U.S. agencies MBS and callable debentures[435] Liquidity and Cash Flow - Cash and cash equivalents increased to $1.5 billion as of March 31, 2021, up by $24.3 million from December 31, 2020[477] - Net cash provided by operating activities for Q1 2021 was $112.7 million, compared to $91.5 million in Q1 2020, reflecting a significant increase[479] - Net cash used in investing activities was $768.1 million in Q1 2021, compared to $105.6 million in Q1 2020, primarily due to purchases of U.S. agencies investment securities[480] - Net cash provided by financing activities was $679.7 million in Q1 2021, an increase from $457.7 million in Q1 2020, mainly due to an increase in non-brokered deposits[481] Market and Economic Conditions - The Corporation's ACL model projected a year-over-year decrease in the Commercial Real Estate Price Index of approximately 8.6% in Q2 2021[335] - The Regional Home Price Index in Puerto Rico is expected to increase by approximately 10.6% in Q2 2021[336] - Unemployment rates in Puerto Rico are projected to improve from approximately 8.1% in Q2 2021 to about 7.7% by the end of 2021[338] - The estimated impact of COVID-19 on economic variables is incorporated into the ACL, but the ultimate impact remains uncertain[341] Stock and Equity - The stock repurchase program allows for the repurchase of up to $300 million of outstanding stock, commencing in Q2 2021[301] - The Corporation announced a stock repurchase program of up to $300 million, effective from Q2 2021 through June 30, 2022[485] - The Corporation's credit ratings as of the date were B+ by S&P and Fitch, and B2 by Moody's, indicating a non-investment grade status[476]

First Bancorp (NYSE:FBP) Q1 2021 Earnings Conference Call April 26, 2021 10:00 AM ET Company Participants John Pelling - IR Officer & Capital Planning Officer Aurelio Alemán - President, CEO & Director Orlando Berges - EVP, CFO & Interim CAO Conference Call Participants Alex Twerdahl - Piper Sandler & Co. Glen Manna - KBW Jonathan Krautmann - Rubric Capital Management Operator Good morning, and welcome to the First BanCorp. First Quarter 2021 Results Conference Call. [Operator Instructions]. Please note, th ...

Financial Results 4Q 2020 & FY 2020 Page 1 Forward-Looking Statement Page 2 This presentation may contain "forward-looking statements" concerning the Corporation's future economic, operational and financial performance. The words or phrases "expect," "anticipate," "intend," "should," "would," "believe" and similar expressions are meant to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, ...

Financial Data and Key Metrics Changes - The company generated net income of $102 million for the year, or $0.46 per share, down from $167 million in 2019, primarily impacted by the pandemic and increased provisions [8][46] - For Q4 2020, net income was $50 million, or $0.23 per share, compared to $28 million in the previous quarter [10][21] - Pre-tax, pre-provision income increased by 6% to $300 million for the year [47] Business Line Data and Key Metrics Changes - Loan origination activity for Q4 was robust at $1.4 billion, with significant growth in the commercial and auto portfolios [12] - The overall loan portfolio decreased slightly to $11.8 billion, primarily due to reductions in residential loans [13] - Core deposits increased by $257 million during the quarter, reflecting strong deposit growth [15] Market Data and Key Metrics Changes - The economic environment in Puerto Rico is showing signs of improvement, supported by stimulus measures and disaster relief funding [7] - The company reported a record organic core deposit growth of $2 billion for the year [9] Company Strategy and Development Direction - The company is focused on integrating the acquired operations and expects to complete this by summer 2021, aiming for a long-term efficiency ratio of 55% [17][18] - Continued investment in technology infrastructure is a priority to enhance digital channels and improve customer service [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2021 with a strong balance sheet and solid liquidity to support economic recovery [8] - There is an expectation of some noise in the first half of 2021 due to integration costs, but a recovery in revenue is anticipated as the market reopens [17][18] Other Important Information - The company announced an increase in the dividend to $0.07 per share, driven by current and predicted earnings [20] - The allowance for credit losses was $401 million, slightly down from the previous quarter, with a provision of $7.7 million for Q4 [35][36] Q&A Session Summary Question: Is there anything holding up a buyback announcement? - Management indicated that steps are being taken to finalize the capital plan and expects to provide updates by the next call [49] Question: Does the long-term efficiency guidance assume a higher rate outlook? - The guidance assumes economic reopening in the third quarter, with integration activities ongoing [50][51] Question: Will there be firm news on additional capital actions by the next earnings call? - Management confirmed that they are working on the capital plan and hope to provide more firm news by the next call [53] Question: What are the expectations for non-performing loans (NPLs)? - Management expects some increases in NPLs in the first half of 2021 due to the impacts of the pandemic, with a return to normal levels anticipated later in the year [44][69]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ COMMISSION FILE NUMBER 001-14793 FIRST BANCORP. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS ...

Financial Data and Key Metrics Changes - The company reported a net income of $28.6 million for Q3 2020, an increase from $21 million in the previous quarter [26] - The pre-tax pre-provision net revenue (PPNR) was $77 million, with only one month of earnings from the acquired operations [7] - The provision for credit losses decreased significantly to $8 million from $39 million in the previous quarter [26][39] Business Line Data and Key Metrics Changes - The acquired Santander operation contributed $3.5 million to after-tax net income, excluding Day 1 CECL adjustments [27] - Retail lending showed strong performance, with auto and mortgage lending returning to pre-pandemic levels [18] - Non-interest income improved to $29.9 million, driven by gains on sales of securities and increased mortgage banking activities [35] Market Data and Key Metrics Changes - The loan to deposit ratio stood at 78%, indicating a solid balance sheet post-acquisition [14] - Employment figures in Puerto Rico showed recovery, with 92% of jobs returning to pre-2019 levels [16] - Active moratoriums on loans reduced to only 0.8% of the portfolio as of October 21 [19] Company Strategy and Development Direction - The company completed a strategic acquisition of Santander, enhancing its competitiveness in commercial, retail, and residential banking [5] - Integration of the acquired operations is underway, with plans to complete the process by the end of Q2 2021 [11] - The company aims to balance cost savings with growth opportunities, targeting $48 million in estimated cost savings from the acquisition [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic recovery, supported by over $60 billion in pandemic and hurricane relief funds [16] - The company remains vigilant regarding potential economic hurdles due to COVID-19 and is closely monitoring sensitive sectors like hospitality [18] - Management emphasized the importance of executing integration plans and achieving synergies while navigating the current economic environment [52] Other Important Information - The allowance for credit losses increased to $385 million, reflecting the initial allowance required for the Santander operation [39] - The company incurred $10.4 million in merger and restructuring costs during the quarter, significantly higher than the previous quarter [31] - Capital ratios remain strong, with a Tier 1 ratio of 17% despite the acquisition [43] Q&A Session Summary Question: Discussion on capital return and urgency regarding stock performance - Management acknowledged a sense of urgency regarding capital return but emphasized the need to assess the economic environment and regulatory guidelines before making decisions [46][47] Question: Outlook on pre-provision earnings and revenue - Management indicated that loan growth and margin compression risks will influence future PPNR, with a focus on executing integration plans [50][51] Question: Process for capital actions and buybacks - All capital actions require a formal process, and management stressed the importance of timing and stabilization before executing buybacks [60][61] Question: Opportunities for de-leveraging and managing higher-cost deposits - Management confirmed that they are not renewing brokered deposits and are focusing on managing liquidity efficiently [62][63] Question: Cadence of cost savings and impact of voluntary retirement program - Cost savings will be realized over time, with immediate savings from the voluntary separation program starting in January [66][67]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ COMMISSION FILE NUMBER 001-14793 FIRST BANCORP. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHART ...