First Ban(US:FBP)2021-08-08 16:00Financial 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]