First BanCorp. (FBP) filed Quarterly Report for the period ended 2009-09-30.
First Bancorp distinguished itself by providing innovative marketing strategies and novel products to attract clients. Besides the branches and lending offices, the Corporation has offered a telephone information service called `Telebanco` since 1983. This was the first telebanking service offered in Puerto Rico. The Corporation's clients have access to an extensive ATM network all over the world. The Corporation was the first in Puerto Rico to open on weekends and the first to offer in-store branches to its clients. First Bancorp. has a market cap of $177.7 million; its shares were traded at around $1.92 with and P/S ratio of 0.2. First Bancorp. had an annual average earning growth of 11.1% over the past 10 years.
Highlight of Business Operations:
Net loss for the quarter ended September 30, 2009 amounted to $165.2 million or $1.89 per diluted common share, compared to net income of $24.5 million or $0.16 per diluted common share for the quarter ended September 30, 2008. The Corporation’s financial performance for the third quarter of 2009, as compared to the third quarter of 2008, was principally impacted by (i) a non-cash charge of $152.2 million to increase the deferred tax asset valuation allowance due to the recent losses, (ii) an increase of $92.8 million in the provision for loan and lease losses attributable to the increased volume of criticized loans, including non-performing and impaired loans, that required higher reserves as well as increases in reserve factors to account for increases in charge-offs and delinquency levels affected by declining real estate values and deteriorated economic conditions in Puerto Rico and Florida, and the overall growth of the Corporation’s loan portfolio, and (iii) a decrease of $15.5 million in net interest income attributable to lower loan yields, resulting from a significant increase in non-accrual loans and the repricing of variable-rate construction and commercial loans tied to short-term indexes. These factors were partially offset by: (i) an increase of $36.1 million in non-interest income mainly related to a realized gain of $34.3 million on the sale of investment
Net interest income is the excess of interest earned by First BanCorp on its interest-earning assets over the interest incurred on its interest-bearing liabilities. First BanCorp’s net interest income is subject to interest rate risk due to the re-pricing and maturity mismatch of the Corporation’s assets and liabilities. Net interest income for the quarter and nine-month period ended September 30, 2009 was $129.1 million and $381.7 million, respectively, compared to $144.6 million and $403.7 million, respectively, for the comparable periods in 2008. On a tax equivalent basis and excluding the changes in the fair value of derivative instruments and unrealized gains and losses on liabilities measured at fair value, net interest income for the quarter and nine-month period ended September 30, 2009 was $145.1 million and $420.1 million, respectively, compared to $158.2 million and $433.9 million, respectively, for the comparable periods of 2008.
FBP is in the portfolios of Arnold Schneider of Schneider Capital Management.
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