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Contact: Annie Astor-Carbonell
Senior Executive Vice President
And Chief Financial Officer
(787)724-1715
[email protected]
FIRST BANCORP REPORTS RECORD EARNINGS
IN THIRD QUARTER
San Juan, Puerto Rico, October 11, 2000--First BanCorp (NYSE:FBP)
reported today earnings of $16,699,212 or $0.56 per share (basic and diluted),
for the third quarter of 2000, as compared to earnings of $16,208,146 or $0.50
per share (basic and diluted) for the third quarter of 1999; an increase of 12%
in earnings per share. Return on Assets (ROA) and Return on Equity (ROE) were
1.23% and 21.26%, respectively, for the quarter, as compared to 1.51% and 21.02%
respectively, for the same quarter of last year. Return on common equity was
26.94% for the quarter as compared to 26.74% for the same quarter of 1999.
Average common shares used to calculate earnings per share were 26,724,904
(basic) and 26,926,717 (diluted).
First BanCorp Reports Record Earnings in Third quarter Page 2
For the nine months period ended September 30, 2000, earnings were
$49,527,651 or $1.65 per share (basic) and $1.64 per share (diluted), as
compared to $45,742,875 or $1.48 per share (basic) and $1.47 per share
(diluted), for the first nine months of 1999, an increase of 11.6% in diluted
earnings per share.
The earnings increase is mainly the result of a rise in net interest
income and other income. Commenting on third quarter results, Mr. Angel Alvarez,
CEO of First BanCorp said, "we have experienced substantial loan growth and
notable results of our efforts to diversify our sources of revenues; we are very
pleased with the results we have achieved so far during 2000." Net interest
income, the Corporation's main source of income, was $47.0 million during the
third quarter of 2000, as compared to $46.8 million for the third quarter of
1999. New loan volumes in the corporate sector provided a notable increase in
the Corporation's revenues, which helped offset higher funding costs. Other
income was $13.3 million for the quarter, as compared to First BanCorp Reports
Record Earnings in Third Quarter Page 3
$8.5 million for the same quarter last year, a 56% increase. This increase of
$4.8 million in other income is mainly due to new recurring fees and charges and
also includes a gain of $2 million from the active management of the
Corporation's investment portfolio, which has represented a continued source of
income during the past years. Total assets amounted to $5,649 million as of
September 2000 as compared to $4,374 million as of September 30, 1999, and
$4,722 million as of December 31, 1999. Total deposits increased by $892
million, when compared to September 30, 1999 and by $657 million, when compared
to December 31, 1999. Total loans reached $3.3 billion, a 31% increase when
compared to September 1999.
During 2000, the Corporation has made additional efforts to maintain
its above average efficiency ratio; this resulted in a ratio of 47.21% for this
quarter, as compared to 46.83% for the same quarter of last year. This ratio has
remained below 50% regardless of the fact that the Corporation has significantly
invested in infrastructure to support new technologically First BanCorp Reports
Record Earnings in Third Quarter Page 4
advanced products and in new production areas like corporate services and middle
market lending. Operating expenses increased to $28.5 million for the quarter,
as compared to $25.9 million for the same quarter last year. The $2.6 million
increase is the result of new human and technology resources to support the
Bank's growth. The expense base for this third quarter of 2000 also includes
four branches acquired in December 1999.
The Corporation's provision for loan losses was $11.6 million, in line
with the comparable third quarter 1999 provision of $11.0 million. Net charge
offs during this quarter amounted to $10.7 million or 1.34% of average loans
annualized, as compared to $10.4 million or 1.69% of average loans annualized,
during the third quarter of 1999. Non-performing loans were $67.2 million or
2.03% of total loans as of September 30, 2000, as compared to $54.1 million or
2.14% of total loans as of September 30, 1999. The increase in the absolute
amount is due to a large commercial loan, to the addition of non-performing
loans of the First Virgin Islands newly acquired operations, and to the general
growth in First BanCorp
Reports Record Earnings in Third Quarter Page 5
the loan portfolio. The reserve coverage ratio (allowance to non-performing
loans) was 113.7% as of September 30, 2000, as compared to 133.4% as of
September 30, 1999.
First BanCorp is a $5.6 billion Financial Holding Company. It is the
parent company of FirstBank Puerto Rico, which is the second largest
independently owned commercial bank in Puerto Rico. The Bank, which is a
well-capitalized institution, operates 53 financial service facilities
throughout Puerto Rico and the US Virgin Islands. On September 25, 2000,
FirstBank closed the acquisition of a small financial institution in the US
Virgin Islands, which was immediately merged into the Bank. FirstBank also
operates Money Express, a finance company, with 26 offices throughout the
Island, and First Leasing and Car Rental, a car and truck rental leasing
company, with offices in Bayamon, Rio Piedras, Guaynabo, Isabela, and Caguas.
First BanCorp Reports Record Earnings in Third Quarter Page 6
FIRST BANCORP
(NYSE: FBP)
CONDENSED FINANCIAL HIGHLIGHTS
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At September 30, At September 30,
2000 1999
Total assets $5,648,674 $4,373,783
Total investments 2,147,767 1,718,355
Total loans 3,318,008 2,525,377
Allowance for loan losses 76,445 72,136
Total deposits 3,222,448 2,330,314
Stockholders' equity 320,674 308,013
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First BanCorp Reports Record Earnings in Third Quarter Page 7
FIRST BANCORP
(NYSE: FBP)
CONDENSED FINANCIAL HIGHLIGHTS
(000's OMITTED)
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Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- -----------------
2000 1999 2000 1999
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Results of operations:
Net interest income $47,038 $46,789 $143,695 $137,727
Provision for possible loan losses 11,566 11,016 34,744 37,766
Other income 13,297 8,521 36,529 24,215
Operating expenses 28,487 25,884 84,755 73,781
Income before income tax provision 20,282 18,410 60,725 50,395
Income tax provision 3,583 2,202 11,198 4,652
Net Income $16,699 $16,208 $49,527 $45,743
Net income applicable to common stock $15,096 $14,605 $44,718 $43,071
Net income per common share - basic $0.56 $0.50 $1.65 $1.48
Net income per common share - diluted $0.56 $0.50 $1.64 $1.47
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