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First BanCorp. (FBP) filed Quarterly Report for the period ended 2011-09-30.
First Bancorp has a market cap of $75.63 million; its shares were traded at around $3.55 with and P/S ratio of 0.08.
This is the annual revenues and earnings per share of FBP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FBP.
Highlight of Business Operations:
Net loss for the quarter ended September 30, 2011 amounted to $24.0 million, compared to a net loss of $75.2 million for the quarter ended September 30, 2010. The Corporation’s financial results for the third quarter of 2011, as compared to the third quarter of 2010, were principally impacted by (i) a decrease of $74.0 million in the provision for loan and lease losses primarily related to lower charges to specific reserves on a reduced level of adversely classified and non-performing loans as well as lower historical loss rates and the overall reduction of the loan portfolio, and (ii) a decrease of $5.8 million in non-interest expenses mainly due also to credit-related expenses such as a $3.2 million decrease in the net loss on real estate owned (“REO”) operations due to lower write-downs to the value of repossessed properties coupled with a $1.6 million decrease in the provision for unfunded loan commitments and letters of credit. These factors were partially offset by a $19.4 million decrease in net interest income driven by the decline in average earning assets consistent with the Corporation’s deleveraging strategies included in the capital plan submitted to regulators and an improved deposit mix; and a $5.3 million decrease in non-interest income primarily driven by non-cash charges of $4.4 million related to the Bank’s investment in the unconsolidated entity to which FirstBank sold loans in February 2011.The average volume of interest-earning assets for the third quarter and first nine-months of 2011 decreased by $3.5 billion and $3.8 billion, respectively, as compared to same periods in 2010. Average total loans and leases decreased 13%, or $1.6 billion, for the third quarter of 2011 and 14%, or $1.8 billion, for the first nine months of 2011 compared to the corresponding periods in 2010. The decrease was primarily driven by sales, including $518 million of performing residential mortgage loans sold during the first half of 2011, and the aforementioned $269 million sale of loans (mainly adversely classified construction and commercial loans) to CPG/GS. Additional sales of non-performing loans during the latter part of 2010, charge-offs, repayments of commercial facilities and foreclosures also contributed to the decrease in the average loan portfolio. Average investment securities and other short-term investments decreased $1.4 billion for each of the quarter and nine month periods ended September 30, 2011 compared to the same periods in 2010. The Corporation has sold approximately $1.4 billion of investment securities over the last 12 months including sales of approximately $740 million of U.S. Agency MBS and $500 million of U.S. Treasury Notes during 2011. During the third quarter of 2011, the Corporation sold an aggregate $500 million of 2, 3 and 5-Years U.S. Treasury Notes with an average yield of 1.40%. Proceeds from sales of loans and securities as well as excess liquidity have been used in part to reduce brokered CDs and other sources of funding and for the early cancellation of repurchase agreements.
average yield of 1.03%. Proceeds from sales, calls and maturities of investment securities were used, in part, to paydown approximately $814 million of brokered CDs with an average cost of 2.18% and for the early cancellation of $200 million of repurchase agreements with an average rate of 4.43%. In addition, during the third quarter of 2011, the Corporation restructured $600 million of repurchase agreements through amendments, $200 million of such agreements were effective in July 2011 and resulted in a $0.7 million decrease in interest expense during the third quarter. The amendments for the remaining $400 million restructured repurchase agreements will become effective in the fourth quarter of 2011 and are expected to result in additional reductions in the average cost of funding. Higher net interest margins also reflected the improvement in the mix of funding sources with the planned reduction in brokered CDs and increased balances in core deposits. The average rate paid on interest-bearing core deposit accounts was lower than the average rate on matured brokered CDs, thus, contributing to a decrease in the overall cost of funding. The overall average cost of funding decreased by 29 and 27 basis point for the quarter and nine month period ended September 30, 2011, respectively, compared to the same periods in 2010. The average balance of brokered CDs decreased $2.0 billion and $1.7 billion, respectively, for the quarter and nine-month period ended September 30, 2011, when compared to the same periods in 2010, while the average balance of non-brokered deposits increased by $300.3 million and $386.0 million, respectively. The growth in non-brokered deposits was driven primarily by money market accounts and certificates of deposit.
In terms of geography and categories, in Puerto Rico, the Corporation recorded a provision of $32.1 million and $147.4 million in the third quarter and nine-month period ended September 30, 2011, respectively, compared to $112.6 million and $312.5 million, respectively, for the comparable periods in 2010. The provision for construction loans in Puerto Rico decreased $46.9 million during the third quarter of 2011, compared to the third quarter of 2010, driven by reductions in non-performing and adversely classified loans as a result of loan sales and problem credit resolutions. The volume of adversely classified construction loans continued to decrease and approximately 95% of the construction charge-offs in Puerto Rico recorded in the third quarter relates to loans with previously established adequate reserves. The provision for C&I loans in Puerto Rico decreased $20.8 million during the third quarter of 2011, compared to the third quarter of 2010, also related to lower charges to specific reserves; approximately 78% of the C&I charge-offs in Puerto Rico recorded in the third quarter relates to loans with previously established adequate reserves. Decreases in historical loss rates and lower charges to specific reserves also caused a reduction of $7.9 million in the provision for commercial mortgage loans in Puerto Rico for the third quarter of 2011 compared to the same period a year ago.
With respect to the loan portfolio in the United States, the Corporation recorded a provision of $5.4 million and $15.5 million in the third quarter and nine-month period ended September 30, 2011, respectively, compared to $4.1 million and $108.9 million, respectively, for the comparable periods in 2010. The increase for the quarter was mainly attributable to increases in the provision for certain collateral dependent C&I and commercial mortgage loans while the decrease for the nine-month period is primarily attributable to a decrease in the provision for construction, residential and commercial mortgage loans due to improvements in historical loss ratios and the overall decrease of this portfolio. The provision for C&I loans increased by $1.8 million and $3.1 million for the quarter and nine-month period ended September 30, 2011, compared to the same periods in 2010, respectively. The provision for construction loans in the United States decreased by $2.3 million and $56.2 million for the quarter and nine-month period ended September 30, 2011 compared to the same periods in 2010, respectively, driven by lower charges to specific reserves on a reduced level of loans driven by sales of non-performing loans. The provision for residential mortgage loans decreased by $3.9 million and $13.5 million for the quarter and nine-month period ended September 30, 2011 when compared to the same periods in 2010, driven by lower charge-offs and non-performing levels.
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