NYSE$FBP

First BanCorp/Puerto Rico · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported net income for the second quarter of 2020 with earnings of $0.09 per diluted share.

First BanCorp reported a net income of $21.3 million, or $0.09 per diluted share, for Q2 2020. The results were impacted by deteriorating economic forecasts requiring a reserve build of $29.1 million. However, pre-tax, pre-provision income remained strong at $67 million. The company remains well-capitalized with a total risk-based capital ratio of 25.1%.

  • Generated net income of $21.3 million, or $0.09 per share, despite deteriorating trends in economic forecasts requiring an additional reserve build of $29.1 million.
  • Pre-tax, pre-provision income was $67 million in the second quarter.
  • Total risk-based capital ratio of 25.1%, among the best capitalized banks in the U.S.
  • Grew an astounding $1.2 billion in core deposits, a 13.5% increase on a linked quarter.

Headline financials

Total Revenue

$156M

Previous: $165M-5.3%
EPS (adj)

$0.10

Previous: $0.18-44.4%
Net Interest Margin

0.0%

Previous: 0.0%-13.9%
Total Capital Ratio

0.3%

No prior period
Tangible Equity Ratio

0.2%

No prior period
Capital Expenditures

-$7.01M

Previous: -$10.3M+32.0%
Free Cash Flow

$14.2M

Previous: $31M-54.0%
Net Income

$21.3M

Previous: $41.3M-48.5%
Operating Income

$57.6M

Previous: $69.6M-17.2%
Gross Profit

$116M

Previous: $164M-29.1%
Cash & Equivalents

$1.3B

Previous: $740M+75.8%
Total Assets

$14.1B

Previous: $12.5B+12.4%
Stock-Based Comp

$1.3M

Previous: $991K+31.2%

Revenue & EPS history

First BanCorp · Revenue · Quarterly

$156M

Q2 2020-5.3%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

First BanCorp · $30.4M total across 3 segments · Q4 2020

  • Other Income
    $14.5M
  • Deposit Charges
    $8.33M
  • Mortgage Banking
    $7.55M

Forward guidance

While the gradual reopening efforts continue and loan origination activity picked up in June, the Corporation remains committed to the safety of its employees and customers. The company sees resilience in its customer base, and the increased activity in the latter half of the quarter is a good indicator of its strength. The management team is optimistic for overcoming the pandemic challenges.

Tailwinds

  • Resilience in customer base.
  • Loan origination activity picked up in June.
  • Maximizing assistance to borrowers through the CARES Act.
  • Supported more than 6,000 commercial clients with $390 million in approved and funded SBA PPP loans.
  • Grew an astounding $1.2 billion in core deposits, a 13.5% increase on a linked quarter.

Headwinds

  • The pandemic continues to present operational and service challenges for the industry.
  • Deteriorating trends in economic forecasts required an additional reserve build of $29.1 million.
  • Business volumes were hampered by the lockdown.
  • Uncertainty around the pandemic and the path of the economy.
  • The company still faces much uncertainty around the pandemic and the path of the economy.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+15.0%

Q4 2015

Best reaction

-13.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%+0.8%+0.3%
Q4 2025+5.2%+5.9%+6.2%
Q3 2025-2.4%-3.9%-1.8%
Q2 2025+0.2%-0.7%+1.3%
Q1 2025+0.1%+1.5%+3.4%
Q3 2024-5.3%-4.0%+4.4%
Q2 2024+1.4%+3.6%-2.2%
Q1 2024+2.7%+0.1%+2.6%
Q4 2023+6.0%+9.5%+4.3%
Q3 2023-3.8%-5.3%+11.3%
Q2 2023+2.0%+4.6%-5.3%
Q1 2023+2.2%+3.6%+1.5%
Q4 2022-3.9%+3.0%+6.4%
Q3 2022-5.6%-1.9%-4.6%
Q2 2022+2.3%+3.9%+7.4%
Q1 2022+3.5%+5.6%+15.4%
Q4 2021-6.3%-4.2%-6.9%
Q3 2021+4.0%-3.0%+4.2%
Q2 2021+2.0%+3.1%+7.4%
Q1 2021+2.3%+4.0%+4.2%
Q4 2020-2.6%-1.6%+9.0%
Q3 2020+4.8%+5.1%+27.6%
Q2 2020+2.5%-3.7%+2.3%
Q1 2020-13.6%-15.7%-11.5%
Q4 2019-5.9%-5.9%-35.3%
Q3 2019+2.5%+5.2%+1.5%
Q2 2019-0.9%+1.7%-10.1%
Q1 2019-3.8%-0.9%-12.5%
Q4 2018+7.0%+1.6%+5.1%
Q3 2018+2.8%+2.5%-1.0%
Q2 2018+0.2%-1.2%+9.0%
Q1 2018+3.4%+4.9%+12.8%
Q4 2017+5.5%+6.8%+7.3%
Q3 2017-3.1%-7.4%-2.5%
Q2 2017+0.0%+1.4%-2.4%
Q1 2017+10.0%+6.7%-2.0%
Q4 2016-2.2%-1.1%-10.4%
Q3 2016+1.5%-2.6%+25.7%
Q2 2016-0.2%-1.5%+3.9%
Q1 2016+8.1%
Q4 2015+15.0%
Q3 2015-5.6%
Q2 2015-2.7%
Q1 2015-4.2%
Q4 2014+8.2%
Q3 2014+9.1%
Q2 2014-0.2%
Q1 2014-2.9%
Q4 2013-7.2%
Q3 2013+3.0%
Q2 2013-5.5%
Q1 2013+0.8%
Q4 2012+1.5%
Q4 2011-4.3%
Q3 2012+3.9%
Q2 2012+0.0%
Q1 2011-0.3%
Q1 2012-3.0%
Q4 2010-0.2%
Q4 2009-0.2%
Q3 2010+4.8%
Q3 2011+4.8%
Q2 2010-1.6%
Q2 2011-1.6%
Q1 2010+4.9%

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