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First BanCorp Posts Net Income of $15M in 4Q, $21.3M for 2015

By on January 29, 2016

SAN JUAN – First BanCorp, the bank holding company for FirstBank Puerto Rico, on Friday reported net income of $15 million for the fourth quarter (4Q) of 2015, or $0.07 per diluted share, compared with $14.8 million, or $0.07 per diluted share, for 3Q of 2015 and $330.8 million, or $1.56 per diluted share, for 4Q of 2014.

For the year ended Dec. 31, 2015, the corporation reported net income of $21.3 million, or $0.10 per diluted share, compared with $392.3 million, or $1.87 per diluted share, for the year ended Dec. 31, 2014.

The results for the previous year include a $302.9 million, or $1.44 per diluted share, income tax benefit associated with the partial reversal of the valuation allowance recorded against the deferred tax assets of the corporation’s banking subsidiary, FirstBank.

For 4Q 2015, the pre-tax income was $18.7 million compared with $19.2 million for 3Q of 2015 and $29.5 million for 4Q of 2014.

For the year ended Dec. 31, 2015, the pre-tax income was $27.7 million ($78.7 million adjusted to exclude the significant items mentioned below) compared with $91.6 million for the year ended Dec. 31, 2014.

Aurelio Alemán, president and CEO of First BanCorp., commented: “During 2015 we achieved several important milestones for our franchise, beginning the year with the recognition of a significant portion of our valuation allowance for deferred tax assets, which positively impacted 2014 results.”

Additional 2015 key milestones include: the acquisition of 10 Puerto Rico branches of Doral Bank, assuming over $500 million in deposits and a $325 million residential portfolio; the lifting of the Consent Order with the FDIC; and the de-risking bulk sale of a $147.5 million portfolio of mostly non-performing and adversely classified loans.”

FirstBank also originated and renew $3.4 billion in loans and grew its core deposit franchise by $471.3 million. Due to macro events that dominated the second half of 2015, the corporation’s financial results were impacted through other than temporary impairment (OTTI) adjustments and increased provisioning for government related exposure, he added.

“For 4Q we generated $15 million in net income and $50.6 million in pre-tax, pre-provision earnings. The quarter was impacted by a $19.2 million charge due to qualitative factors adjustments to the reserves for our government exposure. We are pleased with our operating results for the quarter and the consistent progress in our core franchise metrics,” Alemán said.

Despite the political and fiscal headwinds FirstBank continues to face in Puerto Rico, Alemán said asset quality continues to gradually improve and the bank’s loan originations and core deposit base remain stable.

FirstBank, Alemán added, grew non-interest income and continues to control its expense base.

“While there has been considerable noise in the capital markets and we are disappointed with our stock price performance, our management team continues to focus on market share gains and improving franchise metrics. With a strong capital base and a focused management team, we are prepared to continue weathering the Puerto Rico storm while growing our presence in our other markets,” Alemán said.

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