First Bancorp posts second quarter profit
SAN JUAN – First BanCorp, the bank holding company of San Juan-based FirstBank Puerto Rico, reported Friday net income of $28 million for the second quarter of 2017, or earnings of 13 cents per share, compared with $25.5 million, or $0.11 per diluted share, for the first quarter and $22 million for the second quarter of 2016.
The holding company posted revenue of $167.9 million for the second quarter. Its adjusted revenue was $144.5 million.
“We are pleased with the positive results for the quarter, especially in light of the fact that our main market continues to face fiscal and political headwinds,” the financial institution’s president and CEO, Aurelio Alemán, said in a press release. “Pre-tax pre-provision income sustained at the $55 million level for the third consecutive quarter,” he added.
“Once again we achieved improvement in most of the franchise and operating metrics. Margin expanded, we continued to control our expense base, actually just over $85 million excluding OREO [other real estate owned] expenses. Nonperforming assets declined $72 million now 4.8% of total assets and early delinquencies reflected an improving trend,” he added.
The bank sold its nonperforming Puerto Rico government securities, $23 million, for a slight recovery. It also resolved a $28 million nonperforming commercial relationship in Puerto Rico.
Loan originations were solid and the bank grew its loan portfolio $30 million this quarter.
On the funding side, its core deposits were relatively flat. Excluding government deposits, its core deposits decreased $74 million and further reduced its reliance on brokered CDs by $105 million this quarter, according to the release.
First Bancorp shares reportedly decreased 11 percent since the beginning of the year. Its stock has risen 26 percent over the past 12 months.