Trending Stock: First Bancorp (NYSE: FBP)

On Monday, Shares of First Bancorp (NYSE: FBP) showed the bullish trend with a higher momentum of 1.14% and ended its trading session at $6.23. The company traded total volume of 1,121,831 shares as contrast to its average volume of 2.43M shares. The company has a market value of $1.32B and about 212.42M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $4.48 and reached the max level of $6.45.

First BanCorp. (FBP), the bank holding company for FirstBank Puerto Rico, recently stated net income of $24.20M for the fourth quarter of 2017, or $0.11 per diluted share, contrast to a net loss of $10.80M, or $0.05 per diluted share, for the third quarter of 2017 and net income of $23.90M, or $0.11 per diluted share, for the fourth quarter of 2016.

For the year ended December 31, 2017, the Corporation stated net income of $67.00M, or $0.30 per diluted share, contrast to $93.20M, or $0.43 per diluted share, for the year ended December 31, 2016.

EARNINGS HIGHLIGHTS:

Quarter ended December 31, 2017

  • A $6.80M ($4.10M after-tax) impact related to Hurricanes Irma and Maria, which includes the following items: a $4.80M charge to increase the storm-related allowance for loan losses and about $1.90M of non-interest expenses associated with insurance deductibles related to damages assessed on certain OREO properties and estimated storm-related costs not recoverable under insurance policies. The $6.80M impact was partially offset in the consolidated financial results by expected insurance recoveries of $0.20M for rental costs that the Corporation incurred when Hurricanes Irma and Maria precluded the utilization of certain facilities during the fourth quarter.

Quarter ended September 30, 2017

  • A $67.10M ($41.00M after-tax) impact related to Hurricanes Irma and Maria, which includes the following items: a $66.50M charge to establish a storm-related provision for loan losses and about $0.60M of non-interest expenses associated with storm relief efforts and assistance to employees. The $67.10M impact was partially offset in the consolidated financial results by expected insurance recoveries of $1.70M for compensation and rental costs that the Corporation incurred when Hurricanes Irma and Maria precluded employees from working during September.
  • A $1.40M gain on the repurchase and cancellation of $7.30M in trust preferred securities reflected in the statement of operations set forth below as “Gain on early extinguishment of debt.” The Corporation repurchased and cancelled the repurchased trust preferred securities, resulting in a commensurate reduction in the related Floating Rate Junior Subordinated Debenture. The Corporation’s purchase price equated to 81% of the $7.30M par value. The 19% discount, plus accrued interest, resulted in the gain of $1.40M. The gain, realized at the holding company level, has no effect on the income tax expense in 2017.
  • Costs of $0.10M associated with a secondary offering of the Corporation’s common stock by certain of our existing stockholders accomplished in the third quarter of 2017. The costs, incurred at the holding company level, had no effect on the income tax expense in 2017.

Quarter ended December 31, 2016

  • Charge to the provision for loan and lease losses of $1.80M ($1.10M after-tax) related to the sale of a $16.30M pool of non-performing assets, mostly comprised of non-performing commercial loans.
  • Gain of $1.50M ($1.20M after-tax) from recovery of a residual CMO formerly written off once the trust was liquidated in the fourth quarter of 2016.
  • Brokerage and insurance commissions of $1.70M ($1.00M after-tax) net of incentive costs, mainly from the sale of large fixed annuities contracts.
  • Adjustment of $2.70M ($1.70M after-tax) recorded to reduce the credit card rewards program liability because of the expiration of reward points earned by customers up to September 2013 (the conversion date of the credit card portfolio attained from FIA in May 2012).
  • Costs of $0.60M associated with a secondary offering of the Corporation’s common stock by certain of the existing stockholders. The costs, incurred at the holding company level, had no effect on the income tax expense in 2016.

The Company offered net profit margin of 17.00%. ROE was recorded as 5.60% while beta factor was 1.81. The stock, as of recent close, has shown the weekly upbeat performance of 0.48% which was maintained at 22.16% in this year.

Melinda Duque

Finance Reporter

I am Melinda Duque and I give “The Stock Gem” an insight into the most recent news hitting the “Financial” sector in Wall Street. I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.

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Phone: (+1) 210-203-1048

Email: melinda.duque@thestockgem.com

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