- Improved Credit Quality metrics:
- Provision for loan and lease losses decreased $29.5 million to $59.2 million from $88.7 million.
- The level of non-performing loans decreased for the fifth consecutive quarter, the decline from the first quarter of 2011 was $25.0 million to $1.21 billion.
- The construction loans portfolio decreased $166.3 million, or 24%.
- Gain of $20.2 million realized on the sale of $303 million of U.S. agency mortgage-backed securities (“MBS”), compared to a gain of $18.7 million on the sale of $330 million of MBS in the first quarter.
- Gain of $6.8 million on the bulk sale of $282 million of performing residential mortgage loans, compared to a gain of $5.3 million on the sale of $236 million of performing residential mortgage loans in the first quarter.
- Non-cash charges of $1.5 million related to FirstBank’s investment in an unconsolidated joint venture.
- Fee income from broker-dealer activities rose $0.7 million.
- Net interest margin decreased 19 basis points to 2.64% and net interest income dec reased $11.8 million, mainly reflecting a decline in average earning assets and the continued maintenance of high levels of liquidity.
- Deposit mix improved with the planned reduction in brokered certificates of deposit (“CDs”) resulting in interest-bearing deposit funding costs of 1.85%, or 10 basis point lower than in the first quarter of 2011.
- Capital Plan execution:
- The Corporation entered into agreements to raise a total of $525 million in new capital from institutional investors and private equity firms, subject to stockholders’ and regulatory approvals. The transaction is expected to close during the third quarter of 2011.
- Balance sheet deleveraging strategies:
- Total assets decreased $990.1 million, or 6%, to $14.1 billion primarily related to the sale of investment securities and residential mortgage loans which proceeds were used in part to pay down brokered CDs and borrowings.
- Brokered CDs decreased by $514.2 million, or 8%.
- Total borrowings decreased $328.2 million, through, among other things, repayments of repurchase agreements and advances from FHLB prior to maturity.
- Total capital, Tier 1 capital and Leverage ratios were 12.40%, 11.08% and 8.04%, respectively, up from 11.97%, 10.65% and 7.78%, respectively.
- Regulatory Total capital, Tier 1 capital and Leverage ratios for FirstBank were 12.15%, 10.83% and 7.87%, respectively, up from 11.71%, 10.40%, and 7.60%, respectively.
- 4.93% Tier 1 common risk-based capital ratio, up from 4.82%.
- 3.84% tangible common equity ratio, up from 3.71%.
First BanCorp Reports Financial Results For The Quarter Ended June 30, 2011
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.