Financial Performance - Net income for Q3 2024 was $73.7 million, or $0.45 per diluted share, down from $75.8 million, or $0.46 per diluted share in Q2 2024[1][4] - Net income for the quarter ended September 30, 2024, was reported at $73,727 thousand, a decrease from $82,022 thousand in the same quarter of 2023, representing a decline of 10.2%[32] - Adjusted net income attributable to common stockholders for the same quarter was $73,727 thousand, compared to $82,022 thousand in Q3 2023, reflecting a decrease of 10.2%[32] - Earnings per share (diluted) for Q3 2024 was $0.45, unchanged from Q3 2023, while adjusted earnings per share (diluted) also remained at $0.45[32] - Income before income taxes for the quarter was $96,386 thousand, a decrease of 5.1% from $101,379 thousand in the previous quarter[34] - Net income for the quarter was $73,727 thousand, a decrease from $75,838 thousand in the previous quarter[38] - Basic earnings per share for the quarter was $0.45, consistent with the previous quarter's $0.46[38] Interest Income and Expenses - Net interest income increased to $202.1 million in Q3 2024, compared to $199.6 million in Q2 2024, with a net interest margin of 4.25%[3][4] - Net interest income for Q3 2024 was $202,064 thousand, a slight increase from $199,628 thousand in the previous quarter[38] - Interest income rose to $274,675 thousand, compared to $272,245 thousand in the previous quarter, showing growth in interest earnings[38] - Interest expense remained stable at $72,611 thousand, slightly down from $72,617 thousand in the previous quarter[38] - The average cost of non-brokered time deposits increased by 5 basis points to 3.60% in Q3 2024 compared to Q2 2024[6] - The average interest rate on time deposits increased to 3.52% from 2.45% year-over-year, showing a significant rise in funding costs[43] Loan and Credit Quality - Total loans grew by $62.8 million to $12.5 billion, with total loan originations of $1.2 billion, up $43.1 million from the previous quarter[4] - Provision for credit losses increased to $15.2 million in Q3 2024, reflecting higher charge-off levels in consumer loans[3][4] - The allowance for credit losses at the end of the period was $260.850 million, with a provision for credit losses of $15.245 million during the quarter[16] - Total non-performing assets decreased by $7.8 million to $119.1 million as of September 30, 2024, compared to $126.9 million as of June 30, 2024[13] - Total nonaccrual loans held for investment decreased by $6.9 million to $89.3 million as of September 30, 2024, compared to $96.2 million as of June 30, 2024[13] - Net charge-offs for Q3 2024 were $24.0 million, or an annualized 0.78% of average loans, up from $21.0 million, or 0.69%, in Q2 2024[19] Non-Interest Income and Expenses - Non-interest income rose to $32.5 million, driven by $0.8 million in insurance proceeds received in Q3 2024[3][4] - Non-interest income increased by $0.5 million to $32.5 million in Q3 2024, primarily due to a $0.3 million increase in other non-interest income and a $0.2 million increase in card and processing income[9] - Non-interest expenses increased to $122.9 million, primarily due to higher employee compensation and benefits expenses[3][4] - Non-interest expenses amounted to $122.9 million in Q3 2024, an increase of $4.2 million from Q2 2024, mainly due to a $1.6 million increase in employees' compensation and benefits expense[10] Capital and Liquidity - Cash and cash equivalents amounted to $685.4 million, with total available liquidity at 18.43% of total assets[5] - The Corporation repurchased $50 million of junior subordinated debentures and paid $26.1 million in common stock dividends[5] - The tangible common equity ratio increased to 8.79%, up from 7.66%, driven by a $160.1 million increase in the fair value of available-for-sale debt securities[5] - Total stockholders' equity increased by $209.4 million to $1.7 billion, driven by a $160.1 million increase in the fair value of available-for-sale debt securities[22] - CET1 capital ratio improved to 16.18% as of September 30, 2024, compared to 15.77% as of June 30, 2024[22] - The Corporation had $6.1 billion available to meet liquidity needs, equating to 131% of estimated uninsured deposits[22] Tax and Regulatory - The corporation recorded an income tax expense of $22.7 million in Q3 2024, down from $25.5 million in Q2 2024, reflecting lower pre-tax income[10] - The corporation's estimated annual effective tax rate was 23.7% for Q3 2024, down from 24.1% in Q2 2024[10] - The corporation incurred a FDIC special assessment expense of $152 thousand in Q2 2024, which was not present in Q3 2023[34] Market and Economic Conditions - The net interest margin and net interest income were impacted by the current global interest rate environment, with ongoing reductions in interest rates being a concern for future performance[36] - The corporation highlighted the importance of maintaining core deposits and generating sufficient cash flow through wholesale funding sources amid economic uncertainties[36]
First Ban(FBP) - 2024 Q3 - Quarterly Results