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First Ban(FBP) - 2022 Q2 - Earnings Call Transcript
2022-07-22 16:25
First BanCorp. (NYSE:FBP) Q2 2022 Earnings Conference Call July 22, 2022 10:00 AM ET Company Participants Ramon Rodriguez - Corporate Strategy and Investor Relations Officer Aurelio Aleman - President and Chief Executive Officer Orlando Berges - Executive Vice President and Chief Financial Officer Conference Call Participants Brett Rabatin - Hovde Group Timur Braziler - Wells Fargo Alex Twerdahl - Piper Sandler Kelly Motta - KBW Operator Hello, and welcome to today's First BanCorp 2Q 2022 Financial Results. ...
First Ban(FBP) - 2022 Q1 - Quarterly Report
2022-05-08 16:00
[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents First Bancorp's unaudited consolidated financial statements for Q1 2022, including key financial statements and detailed notes, with comparative data [Consolidated Statements of Financial Condition](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets decreased to **$19.9 billion** from **$20.8 billion**, driven by lower cash and deposits, while stockholders' equity declined to **$1.8 billion** due to unrealized investment losses Consolidated Statements of Financial Condition (Unaudited) | (In thousands) | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total assets** | **$19,929,037** | **$20,785,275** | | Cash and due from banks | $1,694,066 | $2,540,376 | | Total loans, net | $10,880,163 | $10,826,783 | | Investment securities available for sale, at fair value | $6,424,660 | $6,453,761 | | **Total liabilities** | **$18,147,935** | **$18,683,508** | | Total deposits | $17,335,403 | $17,784,894 | | **Total stockholders' equity** | **$1,781,102** | **$2,101,767** | | Accumulated other comprehensive loss, net of tax | ($415,833) | ($83,999) | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased to **$82.6 million** from **$61.2 million** year-over-year, driven by higher net interest income, a credit loss benefit, and lower non-interest expenses, with diluted EPS rising to **$0.41** Consolidated Statements of Income (Unaudited) | (In thousands, except per share) | Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | | :--- | :--- | :--- | | Net interest income | $185,624 | $176,265 | | Provision for credit losses - (benefit) | ($13,802) | ($15,252) | | Net interest income after provision | $199,426 | $191,517 | | Total non-interest income | $32,858 | $30,956 | | Total non-interest expenses | $106,659 | $133,301 | | **Net income** | **$82,600** | **$61,150** | | **Diluted EPS** | **$0.41** | **$0.28** | [Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Total comprehensive loss significantly increased to **$249.2 million** in Q1 2022, primarily due to **$331.8 million** in net unrealized holding losses on debt securities available-for-sale Consolidated Statements of Comprehensive Loss (Unaudited) | (In thousands) | Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | | :--- | :--- | :--- | | Net income | $82,600 | $61,150 | | Net unrealized holding losses on debt securities | ($331,834) | ($98,929) | | **Total comprehensive loss** | **($249,234)** | **($37,779)** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$846.8 million** in Q1 2022, with **$114.8 million** from operations, **$333.0 million** used in investing, and **$628.7 million** used in financing activities Consolidated Statements of Cash Flows (Unaudited) | (In thousands) | Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $114,834 | $112,678 | | Net cash used in investing activities | ($332,992) | ($768,093) | | Net cash (used in) provided by financing activities | ($628,651) | $679,746 | | **Net (decrease) increase in cash and cash equivalents** | **($846,809)** | **$24,331** | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity decreased from **$2.1 billion** to **$1.8 billion** in Q1 2022, primarily due to **$331.8 million** in other comprehensive loss and **$52.4 million** in stock repurchases, partially offset by net income Key Changes in Stockholders' Equity (Q1 2022) | (In thousands) | Amount | | :--- | :--- | | Balance at beginning of period | $2,101,767 | | Net income | $82,600 | | Common stock repurchases | ($52,351) | | Dividends on common stock | ($19,900) | | Other comprehensive loss, net of tax | ($331,834) | | **Balance at end of period** | **$1,781,102** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures for the financial statements, covering accounting policies, breakdowns of key assets and liabilities, equity, fair value measurements, and regulatory matters [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=94&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2022 financial performance and condition, covering recent developments, net interest income, credit losses, non-interest items, portfolio analysis, and risk management practices - Net income for Q1 2022 was **$82.6 million** (**$0.41** per diluted share), up from **$61.2 million** (**$0.28** per diluted share) in Q1 2021[251](index=251&type=chunk) - On April 27, 2022, the Board approved a new stock repurchase program of up to **$350 million** and increased the quarterly common stock dividend by **20%** to **$0.12** per share[237](index=237&type=chunk)[238](index=238&type=chunk) - Total assets decreased by **$856.2 million** to **$19.9 billion** as of March 31, 2022, primarily due to a decrease in cash and cash equivalents[259](index=259&type=chunk) - Stockholders' equity decreased by **$320.7 million** to **$1.8 billion**, driven by a **$331.8 million** decrease in the fair value of available-for-sale securities and stock repurchases, partially offset by quarterly earnings[261](index=261&type=chunk) [Results of Operations](index=96&type=section&id=Results%20of%20Operations) Net income increased to **$82.6 million** in Q1 2022, driven by higher net interest income, a credit loss benefit, and lower non-interest expenses due to reduced merger costs Key Performance Indicators | (In percent) | March 31, 2022 | March 31, 2021 | | :--- | :--- | :--- | | Return on Average Assets | 1.65% | 1.30% | | Return on Average Total Equity | 16.64% | 10.82% | | Efficiency Ratio | 48.82% | 64.33% | [Financial Condition and Operating Data Analysis](index=108&type=section&id=Financial%20Condition%20and%20Operating%20Data%20Analysis) Total assets decreased to **$19.9 billion** due to lower cash, while the loan portfolio slightly grew to **$11.1 billion**, and the investment portfolio decreased to **$6.4 billion** due to unrealized losses Loan Portfolio Composition (In thousands) | Loan Type | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Residential mortgage loans | $2,891,699 | $2,978,895 | | Total commercial loans | $5,229,866 | $5,193,719 | | Consumer loans and finance leases | $2,976,140 | $2,888,044 | | **Total loans held for investment** | **$11,097,705** | **$11,060,658** | - Total loan production in Q1 2022 was **$1.2 billion**, compared to **$1.3 billion** in Q1 2021, with an increase of **$57.8 million** year-over-year excluding SBA PPP loans[321](index=321&type=chunk)[322](index=322&type=chunk) [Risk Management](index=117&type=section&id=Risk%20Management) The company manages liquidity, interest rate, credit, and concentration risks, maintaining strong liquidity, an asset-sensitive balance sheet, improved credit quality, and **$356.8 million** exposure to the Puerto Rico government - As of March 31, 2022, the estimated core liquidity reserve was **$5.3 billion**, or **26.5%** of total assets, with available borrowing capacity from the FHLB of **$1.2 billion**[347](index=347&type=chunk) Net Interest Income Sensitivity (Next 12 Months) | Scenario | Change (in millions) | % Change | | :--- | :--- | :--- | | +200 bps ramp | $27.8 | 3.56% | | -200 bps ramp | ($18.6) | (2.38)% | Non-Performing Assets (In thousands) | Category | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total nonaccrual loans | $107,030 | $110,717 | | OREO | $42,894 | $40,848 | | **Total non-performing assets** | **$156,474** | **$158,102** | - Direct exposure to the Puerto Rico government, its municipalities, and public corporations was **$356.8 million** as of March 31, 2022[478](index=478&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=151&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the market risk disclosures detailed within the 'Risk Management' heading of Item 2, Management's Discussion and Analysis - The report directs readers to the 'Risk Management' section within Item 2 (MD&A) for information regarding the Corporation's exposure to market risk[501](index=501&type=chunk) [Item 4. Controls and Procedures](index=151&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2022[501](index=501&type=chunk) - No changes were made to the internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[502](index=502&type=chunk) [PART II. OTHER INFORMATION](index=152&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=152&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 23 of the financial statements for details on legal proceedings, which management believes will not materially affect the company's financial position - For details on legal proceedings, the report refers to Note 23, 'Regulatory Matters and Contingencies,' in the financial statements[503](index=503&type=chunk) [Item 1A. Risk Factors](index=152&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to risk factors from its 2021 Annual Report on Form 10-K, directing readers to that report for detailed discussion of potential risks - There have been no material changes from the risk factors disclosed in the 2021 Annual Report on Form 10-K[505](index=505&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=153&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered equity sales and details common stock repurchases, having completed its **$300 million** program by purchasing **3,611,627** shares during the quarter Issuer Purchases of Equity Securities (Q1 2022) | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2022 | 2,712,584 | $14.60 | | Feb 2022 | 697,113 | $14.90 | | Mar 2022 | 201,930 | $13.44 | | **Total** | **3,611,627** | **N/A** | - During Q1 2022, the Corporation completed its **$300 million** stock repurchase program approved in April 2021[508](index=508&type=chunk) [Item 6. Exhibits](index=153&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley and XBRL data files - The exhibits include CEO/CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL instance and taxonomy documents[510](index=510&type=chunk)[511](index=511&type=chunk)[512](index=512&type=chunk)[513](index=513&type=chunk)[514](index=514&type=chunk)
First Ban(FBP) - 2022 Q1 - Earnings Call Transcript
2022-04-30 13:06
First BanCorp. (NYSE:FBP) Q1 2022 Earnings Conference Call April 28, 2022 10:00 AM ET Company Participants Ramon Rodriguez - Corporate Strategy and Investor Relations Officer Aurelio Aleman - President and Chief Executive Officer Orlando Berges - Executive Vice President and Chief Financial Officer Conference Call Participants Brett Rabatin - Hovde Group Ebrahim Poonawala - Bank of America Timur Braziler - Wells Fargo Alex Twerdahl - Piper Sandler Kelly Motta - KBW Operator Hello everybody, and welcome to t ...
First Ban(FBP) - 2021 Q4 - Annual Report
2022-02-28 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 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 NUMBER001-14793 FIRST BANCORP. (EXACT NAME OF REGISTRANT A ...
First Ban(FBP) - 2021 Q4 - Earnings Call Transcript
2022-01-26 19:15
First BanCorp. (NYSE:FBP) Q4 2021 Earnings Conference Call January 26, 2022 10:00 AM ET Company Participants Ramon Rodriguez - Investor Relations Aurelio Alemán - President & Chief Executive Officer Orlando Berges - Executive Vice President & Chief Financial Officer Conference Call Participants Ebrahim Poonawala - Bank of America Alex Twerdahl - Piper Sandler Timur Braziler - Wells Fargo Operator Hello. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome ev ...
First Ban(FBP) - 2021 Q3 - Quarterly Report
2021-11-08 16:00
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, 2021 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 ...
First Ban(FBP) - 2021 Q3 - Earnings Call Transcript
2021-10-25 16:36
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 ...
First Ban(FBP) - 2021 Q2 - Quarterly Report
2021-08-08 16:00
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, 2021 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 ...
First Ban(FBP) - 2021 Q2 - Earnings Call Transcript
2021-07-23 18:53
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]
First Ban(FBP) - 2021 Q1 - Quarterly Report
2021-05-09 16:00
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 March 31, 2021 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 CHAR ...