NYSE$FBP

First BanCorp/Puerto Rico · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net income of $28.6 million, or $0.13 per diluted share after completing the acquisition of Banco Santander Puerto Rico.

First BanCorp reported a net income of $28.6 million for Q3 2020, influenced by the acquisition of Banco Santander Puerto Rico and various special items. The acquisition contributed significantly to deposits and loans, while also impacting net interest margin and non-interest expenses. Overall, the bank's capital position remained strong.

  • Net income was $28.6 million, or $0.13 per diluted share.
  • Completed the acquisition of Banco Santander Puerto Rico effective September 1, 2020, adding $4.2 billion in deposits and $2.6 billion in loans.
  • Net interest income increased by $13.5 million to $148.7 million.
  • Non-performing assets decreased by $10.5 million to $293.3 million as of September 30, 2020.

Headline financials

Total Revenue

$179M

Previous: $166M+7.7%
EPS (adj)

$0.10

Previous: $0.20-50.0%
Net Interest Margin

3.9%

No prior period
CET1 Ratio

17.2%

No prior period
Tier 1 Capital Ratio

17.5%

No prior period
Leverage Ratio

13.0%

No prior period
Total Capital Ratio

20.3%

No prior period
Tangible Equity Ratio

11.4%

No prior period
Capital Expenditures

-$11.3M

Previous: -$17.1M+34.0%
Free Cash Flow

$17.3M

Previous: $29.2M-40.7%
Net Income

$28.6M

Previous: $46.3M-38.2%
Operating Income

$55.3M

Previous: $61.9M-10.7%
Gross Profit

$130M

Previous: $164M-21.0%
Cash & Equivalents

$2.47B

Previous: $976M+153.0%
Total Assets

$18.7B

Previous: $12.5B+48.9%
Stock-Based Comp

$1.41M

Previous: $988K+42.9%

Revenue & EPS history

First BanCorp · Revenue · Quarterly

$179M

Q3 2020+7.7%vs Q3 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

First BanCorp is optimistic about economic recovery in Puerto Rico, supported by hurricane and pandemic relief funding. They are prepared to support increased economic activity while remaining vigilant to potential economic hurdles related to future COVID-19 restrictions.

Tailwinds

  • Over $60 billion of remaining estimated hurricane and pandemic relief funding in Puerto Rico will contribute to the economic recovery.
  • Employment figures continue to trend positive, now at 92% of August 2019 levels.
  • Lending activity continues to improve in most products.
  • The enhanced funding profile of our combined institution and greater customer reach should help to drive additional loan growth and net interest income.
  • Capital deployment opportunities remain a priority as our economic environment stabilizes.

Headwinds

  • Potential economic hurdles related to future COVID-19 restrictions.
  • The effect of the low interest rate environment in the repricing of variable rate commercial loans and the acceleration of the U.S. agencies MBS premium amortization.
  • A higher proportion of low-yielding assets, such as U.S. agencies MBS, callable debentures and interest-bearing cash balances, to total interest-earning assets.
  • Uncertainties relating to the impact of the COVID-19 pandemic.
  • Cyber-security incidents.

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 Q3 2020

Historical avgQ3 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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