First BanCorp Announces 1Q Earnings
SAN JUAN – First BanCorp, the bank holding company for FirstBank Puerto Rico (FirstBank), reported net income of $23.3 million for the first quarter of 2016, or $0.11 per diluted share, compared to $15 million, or $0.07 per diluted share, for the fourth quarter of 2015 and $25.6 million, or $0.12 per diluted share, for the first quarter of 2015.
On a non-GAAP basis, adjusted net income (which excludes the unusual and/or non-recurring items that are mentioned below) for the first quarter of 2016 was $25.8 million compared to $15.1 million for the fourth quarter of 2015 and $18.9 million for the first quarter of 2015.
In a statement, Aurelio Alemán, president and CEO of First BanCorp., said: “We achieved improvement in most of our core metrics this quarter. Our core deposits, net of government and brokered, grew nicely this quarter to $6.8 billion, an increase of $137 million. Most of this growth occurred in demand and savings account in Puerto Rico and the Virgin Islands. We further reduced our reliance on brokered CDs [certificate of deposits] by $91 million.
“Loan originations and renewals including credit card activity reached $731 million, we experienced a decline in our loan book in Puerto Rico, with lower origination volumes in certain categories, a portion of this decline is seasonal in nature. On the other hand, we continue to increase our Florida loan book, which grew $54 million, or 5% compared to the fourth quarter. We are very pleased with the opening of a new branch on Brickell Avenue in Miami that will provide access to a new and vibrant market for the Florida franchise. We also continue making progress in our initiatives to lower our operating expenses.
“Despite these accomplishments, given the uncertainty around the economic situation in Puerto Rico and the recently adopted moratorium law, we made the decision to place our hotel commercial loan relationships guaranteed by the Tourism Development Fund in nonaccrual status. Excluding this negative migration, our asset quality would have slightly improved, non-performing assets would have declined by $1.2 million. We remain cautiously optimistic that Puerto Rico and its creditors will continue to work toward a resolution. We care deeply about the outcome and will continue to be involved in the ongoing discussions. Our strong capital position and diverse business model will continue to drive results.”
First BanCorp’s senior management will host an earnings conference call and live webcast Tuesday, April 26, at 10 a.m. Eastern Time. The call may be accessed via a live Internet webcast through the investor relations section of the corporation’s website: www.1firstbank.com or through a dial-in telephone number at (877) 506-6537 or (412) 380–2001 for international callers. The corporation recommends listeners go to the website at least 15 minutes prior to the call to download and install any necessary software.
Following the webcast presentation, a question and answer session will be made available to research analysts and institutional investors. A replay of the webcast will be archived in the investor relations section of First BanCorp’s website until April 26, 2017. A telephone replay will be available one hour after the end of the conference call through May 26, 2016 at (877) 344-7529 or (412) 317-0088 for international callers. The replay access code is 10083978.