- Significantly Strengthened Capital Position after Completion of Capital Raise and Conversion of TARP Preferred Stock:
- Completion on October 7, 2011, of a $525 million capital raise and the conversion of 424,174 shares of the Series G Preferred Stock, held by the U.S. Treasury, into 32.9 million shares of common stock.
- Issuance of an additional $3.3 million of capital in a rights offering completed on December 8, 2011.
- Increase in total common equity of $819.5 million, to $1.4 billion as of December 31, 2011.
- Total capital, Tier 1 capital and Leverage ratios of the Corporation of 17.12%, 15.79% and 11.91%, respectively, up from 12.39%, 11.07% and 8.41%, respectively, for the previous quarter.
- Total capital, Tier 1 capital and Leverage ratios of the Corporation’s wholly owned banking subsidiary, FirstBank of 16.58%, 15.25% and 11.52%, respectively, up from 12.15%, 10.84%, and 8.24%, respectively, for the previous quarter. All of the capital ratios are above the minimum required under the Consent Order with the FDIC.
- 12.96% Tier 1 common risk-based capital ratio, up from 4.79%.
- 10.25% tangible common equity ratio, up from 3.84%.
- Growth in Net Interest Income and Margin:
- Net interest income, excluding fair value adjustments, increased $3.5 million.
- Net interest margin, excluding fair value adjustments, up 17 basis points to 2.99%. The increase in net interest income and margin primarily reflects the reduction of excess liquidity to pay down borrowings (brokered CDs and FHLB advances), the restructuring of certain repurchase agreements and the reduction in the average cost of core deposits.
- Continued Improvement in Credit Quality:
- Provision for loan and lease losses decreased for the fourth consecutive quarter, a decrease of $4.5 million to $42.0 million.
- The level of non-performing loans decreased for the seventh consecutive quarter, the decline from the third quarter of 2011 was $45.7 million to $1.14 billion.
- Inflows of non-performing loans for almost all major loan categories declined from the third quarter.
- Net charge-offs remained relatively flat at $67.8 million. Net charge-offs for commercial and construction loans were primarily related to reserves established in prior periods.
- Increase of $2.9 million in Non-Interest Expenses:
- A $1.8 million non-recurring write-down to the value of REO properties optioned during the fourth quarter as part of a special auction sponsored by the Bank intended to achieve reductions in REO operational costs in the immediate future.
- A $1.7 million increase in directors’ fees associated with the election of new directors to the Corporation’s Board of Directors in the fourth quarter.
- A $1.2 million decrease in the deposit insurance premium resulting from the Bank’s improved capital position.
- Decrease of $2.6 million in the Income Tax Expense:
- Previous quarter included a $3.2 million charge related to Uncertain Tax Positions and related accrued interest.
- Growth of $51.2 million, or 1%, in core deposits, reflecting increases in retail and commercial demand deposits, as well as in money market accounts.
- Consumer and Residential mortgage loan originations for the fourth quarter amounted to $163.0 million and $160.1 million, respectively, an increase of 10% and 8%, respectively, compared to the third quarter.
- Total assets of $13.1 billion, a decrease of $348.3 million since the end of the third quarter and a $2.5 billion decrease for full year 2011, consistent with the continuing process of optimizing the balance sheet.
First BanCorp Reports Financial Results For The Quarter And Year Ended December 31, 2011
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