-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OjFq4doHuQwtijAiRUkjalcQHgVv/7sPY9zks5eQ9FqHWzVRZ7P9ze7yHE5Uht9W YfZ0q7UY2EJkVIFRlm+LHg== 0000950144-04-007241.txt : 20040727 0000950144-04-007241.hdr.sgml : 20040727 20040723142910 ACCESSION NUMBER: 0000950144-04-007241 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040722 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST BANCORP /PR/ CENTRAL INDEX KEY: 0001057706 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 660561882 STATE OF INCORPORATION: PR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14793 FILM NUMBER: 04928711 BUSINESS ADDRESS: STREET 1: 1519 PONCE DE LEON AVE STREET 2: SANTUREE CITY: SAN JUAN STATE: PR ZIP: 00908 BUSINESS PHONE: 7877298200 MAIL ADDRESS: STREET 1: 1519 PONCE DE LEON AVE CITY: SAN JUAN STATE: PR ZIP: 00908 8-K 1 g90066e8vk.htm FIRST BANCORP. FIRST BANCORP.
 

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13
or 15(d) of the Securities
Exchange Act of 1934

Date of Report (Date of earliest event reported): July 22, 2004

First BanCorp.

(Exact name of registrant as specified in this charter)
         
Puerto Rico   001-14793   66-0561882
  		 
  		 
 
(State or other jurisdiction of
incorporation) 		  (Commission File No.)   (IRS Employer
Identification No.)
     
1519 Ponce De León Avenue, San Juan, Puerto Rico   00908-0146
  		 
 
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (787) 729-8200

 

 

ITEM 7. Financial Statements, Proforma Financial Information and Exhibits

     (c)Exhibit

  99.1   Press Release dated July 22, 2004.

ITEM 12. Results of Operations and Financial Condition

     On July 22, 2004, First BanCorp. (the “Corporation”) announced its unaudited results of operations for the second quarter and six months ended June 30, 2004. A copy of the Corporation’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

     The information included in this section and Exhibit 99.1 attached hereto is intended to be furnished for purposes of the Securities Exchange Act of 1934, as amended.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  FIRST BANCORP.
 		  
  By:   /s/ Annie Astor-Carbonell    
    Annie Astor-Carbonell   
    Senior Executive Vice President and Chief Financial Officer   
 

Date: July 23, 2004

 

EX-99.1 2 g90066exv99w1.txt EX-99.1 PRESS RELEASE DATED JULY 22, 2004 [1FIRST BANCORP LOGO] Annie Astor-Carbonell Senior Executive Vice President and Chief Financial Officer (787) 729-8088 annie.astor@firstbankpr.com FIRST BANCORP REPORTS EARNINGS PER SHARE INCREASE OF 30.9% San Juan, Puerto Rico, July 22, 2004 -- First BanCorp (NYSE:FBP), the second largest Puerto Rico Financial Holding Company with diversified banking operations in Puerto Rico and the US and British Virgin Islands, reported today earnings for the quarter ended June 30, 2004. Net income was $39,934,596 or $0.74 per share basic and $0.72 per share diluted, for the second quarter of 2004, as compared to earnings of $29,270,698 or $0.56 per share basic and $0.55 per share diluted for the second quarter of 2003. These results represent an increase in diluted earnings per share of 30.91% for this quarter. Return on Assets (ROA), and Return on Common Equity (ROCE) were 1.19% and 20.98% respectively, First BanCorp reports earnings per share increase of 30.9% -2- for the quarter as compared to 1.26% and 18.47% respectively, for the same quarter of 2003. Basic and diluted weighted average common shares for the 2004 second quarter were 40,215,478 and 41,371,752, respectively. For the six month period ended June 30, 2004, earnings were $80,139,629 or $1.49 per share (basic) and $1.45 per share (diluted), as compared to $65,698,994, or $1.30 per share (basic) and $1.28 per share (diluted). Basic and diluted weighted average shares for the 2004 year-to-date period were 40,139,875 and 41,375,673, respectively. Commenting on this quarter results, Mr. Angel Alvarez-Perez, Chairman, President, and CEO of First BanCorp said, "this has been an excellent quarter. Our core lending operations have continued to grow, especially commercial, auto, and residential mortgages. With the increase in long term rates, we have been able to replenish a portion of our investment portfolio at higher yields, and the prepayments on the existing mortgage backed First BanCorp reports earnings per share increase of 30.9% -3- securities portfolio have slowed. As a result of the positive outcome in both, lending and investment operations net interest income has rebounded significantly." Net interest income, the Corporation's main source of income increased by $30.4 million from $63.9 million during the second quarter of 2003 to $94.3 million during the second quarter of 2004, due to an increase in average earning assets of $4,093 million, and an increase in the yield of the investment portfolio. During the previous quarters, the Corporation's subsidiary bank's strategy had been to decrease the level of medium to longer term investments until the market provided a better opportunity to invest. Net interest margin on a tax equivalent basis was 3.45% for the quarter ended June 2004, as compared to 3.07% for the quarter ended June 2003 and 3.33% for the previous quarter ended March 2004. Fluctuations are the result of the investment strategy explained above. First BanCorp reports earnings per share increase of 30.9% -4- Other income, which is mostly operational, amounted to $13.7 million for the second quarter of 2004, as compared to $23.0 million for the second quarter of 2003. Other income for the previous year's comparative second quarter included a gain on sale of investments of $10.1 million, and a derivative loss of $678,000. Other income, excluding the net gains on sales of investments and derivative losses for both periods, was $14.1 million for the June 2004 quarter, $520,000 over the $13.5 million for the June 2003 quarter, due mainly to commercial loan fees. Net charge offs were $9.9 million (.52% of average loans) for the second quarter of 2004, as compared to $9.9 million (.65% of average loans) during the second quarter of 2003, and $9.2 million (.51% of average loans), during the first quarter of 2004. The year-to-date charge off ratio for 2004 is ..52%, as compared to .70% for the year-to-date period of 2003. The charge offs ratio is at the lowest level of the last 10 years, due to the Corporation's effective risk management infrastructure. First BanCorp reports earnings per share increase of 30.9% -5- The efficiency ratio was 42.17% and 45.20% for the three months ended June 30, 2004 and 2003 respectively, one of the best in the industry. An increase in expenses of $6.2 million is in part attributable to increases in personnel and occupancy costs, to support the growth of the Corporation, to merit salary increases and to strong advertising and business promotion costs to support new products and services, especially First Mortgage and the "Perfect Account" a new DDA product. When compared to the immediately preceding quarter of March 2004, operating expenses increased by $2.4 million, mostly as a result of the increases in promotion expenses, as explained above. Total assets were $14,465 million as of June 30, 2004, as compared to $9,934 million as of June 30, 2003 and $12,668 million as of December 31, 2003. Loans receivable increased by 25.3% to $7,892 million, as compared to $6,299 million as of June 30, 2003. The largest loan volume increases were achieved in the commercial and residential real estate portfolios. First BanCorp reports earnings per share increase of 30.9% -6- Non-performing loans as of June 30, 2004 were $91.0 million (1.15% of total loans), as compared to $89.0 million (1.41% of total loans) and $85.7 million (1.15% of total loans), as of June 30, 2003 and March 31, 2004, respectively. Non-performing loans remained in line, when compared to the previous year, as a result of controlled delinquencies, especially in the Bank's consumer portfolios. The increase in dollar amount, when compared to the March 2004 figure, is composed entirely of secured real estate loans, and is mainly due to the general growth of the portfolios. The allowance for loan losses to non-performing loans (reserve coverage), was 146.9% as of June 30, 2004, compared to 135.5% as of June 30, 2003 and 152.2%, as of March 31, 2004. The slight decrease in the reserve coverage, when compared to the March 2004 quarter, is directly related to the increase in secured non-performing loans. The improvement since the prior First BanCorp reports earnings per share increase of 30.9% -7- year's comparable quarter is related to the stability in the delinquencies and non-performing loans. First BanCorp is a $14.5 billion well-capitalized Financial Holding Company. It is the parent company of FirstBank Puerto Rico, which is the second largest commercial bank in Puerto Rico and Virgin Islands and of FirstBank Insurance Agency. Both First BanCorp and FirstBank Puerto Rico, operate within US banking laws and regulations. The Bank operates a total of 111 financial service facilities throughout Puerto Rico and the US and British Virgin Islands, including the operations of its subsidiaries. Among the subsidiaries are Money Express, a finance company, First Leasing and Car Rental, a car and truck rental leasing company, and First Mortgage, a mortgage banking company. In the US and British Virgin Islands the Bank operates FirstBank Insurance VI, an insurance agency, First Trade, Inc., a foreign corporation management company, and First Express, a small loan company. First BanCorp reports earnings per share increase of 30.9% -8- The Corporation's common and preferred shares trade on the New York Stock Exchange, under the symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE. This press release contains certain "forward-looking statements" concerning the Corporation's economic future performance. The words or phrases "expect", "anticipate", "look forward", "should", and similar expressions are meant to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Corporation wishes to caution readers not to place undue reliance on any such "forward-looking statements", which speak only as of the date made and to advise readers that various factors, including regional and national economic conditions, changes in interest rates, competitive and regulatory factors and legislative changes, could affect the Corporation's financial performance and could cause the Corporation's actual First BanCorp reports earnings per share increase of 30.9% -9- results for future period to differ materially from those anticipated or projected. The Corporation does not undertake, and specifically disclaims any obligation, to update any "forward-looking statements" to reflect occurrences or unanticipated events or circumstances after the date of such statements. FIRST BANCORP CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA
THREE MONTHS ENDED SIX MONTHS ENDED ----------------------------------------------------------------------------------- JUNE 30, JUNE 30, MARCH 30, JUNE 30, JUNE 30, 2004 2003 2004 2004 2003 --------- --------- --------- --------- --------- INTEREST INCOME: Loans $ 103,074 $ 97,285 $ 100,048 $ 203,123 $ 191,241 Investments 58,134 25,540 46,499 104,633 64,503 --------- --------- --------- --------- --------- Total interest income 161,208 122,825 146,547 307,756 255,744 --------- --------- --------- --------- --------- INTEREST EXPENSE: Deposits 26,610 27,278 27,047 53,657 56,217 Borrowings 40,320 31,644 35,297 75,617 63,187 --------- --------- --------- --------- --------- Total interest expense 66,930 58,922 62,344 129,274 119,404 --------- --------- --------- --------- --------- Net interest income 94,278 63,903 84,203 178,482 136,340 --------- --------- --------- --------- --------- PROVISION FOR LOAN LOSSES 13,200 12,600 13,200 26,400 29,164 --------- --------- --------- --------- --------- Net interest income after provision for loan losses 81,078 51,303 71,003 152,082 107,176 --------- --------- --------- --------- --------- OTHER INCOME: Service charges on deposit accounts 2,742 2,370 2,783 5,526 4,945 Other fees on loans 4,218 4,995 5,946 10,163 10,001 Mortgage banking activities 217 1,584 1,545 1,762 1,942 Net gain on sale of investments 551 10,135 3,965 4,516 23,822 Derivatives loss (961) (678) (424) (1,386) (115) Rental Income 702 545 618 1,319 1,030 Gain on sale of credit cards portfolio 297 5,236 5,533 Other operating income 5,884 4,046 4,330 10,216 7,543 --------- --------- --------- --------- --------- Total other income 13,650 22,997 23,999 37,649 49,168 --------- --------- --------- --------- --------- OTHER OPERATING EXPENSES: Employees' compensation and benefits 21,513 18,314 19,986 41,499 36,524 Occupancy and equipment 9,447 8,831 9,383 18,831 17,715 Business promotion 4,588 2,706 3,469 8,057 5,423 Taxes, other than income taxes 1,951 1,760 1,948 3,899 3,507 Insurance and supervisory fees 1,010 813 1,076 2,086 1,751 Other 7,001 6,851 7,296 14,297 13,825 --------- --------- --------- --------- --------- Total other operating expenses 45,510 39,275 43,158 88,669 78,745 --------- --------- --------- --------- --------- INCOME BEFORE INCOME TAX 49,218 35,025 51,844 101,062 77,599 INCOME TAX PROVISION 9,283 5,754 11,639 20,922 11,900 --------- --------- --------- --------- --------- NET INCOME $ 39,935 $ 29,271 $ 40,205 $ 80,140 $ 65,699 ========= ========= ========= ========= ========= NET INCOME APPLICABLE TO COMMON STOCK $ 29,866 $ 22,520 $ 30,136 $ 60,002 $ 52,197 ========= ========= ========= ========= ========= NET INCOME PER COMMON SHARE - BASIC $ 0.74 $ 0.56 $ 0.75 $ 1.49 $ 1.30 ========= ========= ========= ========= ========= NET INCOME PER COMMON SHARE - DILUTED $ 0.72 $ 0.55 $ 0.73 $ 1.45 $ 1.28 ========= ========= ========= ========= ========= DIVIDENDS DECLARED PER COMMON SHARE $ 0.12 $ 0.11 $ 0.12 $ 0.24 $ 0.22 ========= ========= ========= ========= =========
FIRST BANCORP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA
JUNE 30, 2004 JUNE 30, 2003 DECEMBER 31, 2003 ------------- ------------- ----------------- ASSETS Cash and due from banks $ 83,322 $ 81,421 $ 89,305 ------------ ------------ ------------ Money market instruments 371,929 535,357 705,940 ------------ ------------ ------------ Federal funds sold and securities purchased under agreements to resell 71,000 282,000 265,000 ------------ ------------ ------------ Investment securities available for sale, at market: United States and Puerto Rico Government obligations 302,038 23,080 16,157 Mortgage backed securities 1,216,429 1,290,465 1,086,891 Corporate bonds 44,290 152,783 53,770 Equity investment 53,078 36,774 62,320 ------------ ------------ ------------ Total investment securities available for sale 1,615,835 1,503,102 1,219,138 ------------ ------------ ------------ Investment securities held to maturity, at cost: United States and Puerto Rico Government obligations 2,445,267 888,969 1,119,775 Mortgage backed securities 1,712,718 76,013 1,970,855 Corporate bonds 19,983 64,638 39,847 ------------ ------------ ------------ Total investment securities held to maturity 4,177,968 1,029,620 3,130,477 ------------ ------------ ------------ Federal Home Loan Bank (FHLB) stock 61,150 42,595 45,650 ------------ ------------ ------------ Loans receivable: Commercial Loans 2,971,815 2,642,112 2,832,635 Finance Leases 186,933 152,235 161,283 Consumer Loans 1,244,398 1,199,316 1,171,590 Residential Loans 3,489,118 2,305,354 2,879,010 ------------ ------------ ------------ Total loans receivable 7,892,264 6,299,017 7,044,518 Allowance for loan losses (133,678) (120,563) (126,378) ------------ ------------ ------------ Total loans, net 7,758,586 6,178,454 6,918,140 Other real estate owned 5,599 2,752 4,617 Premises and equipment, net 85,905 83,215 85,269 Accrued interest receivable 52,149 33,204 41,508 Other assets 181,377 162,594 162,866 ------------ ------------ ------------ Total assets $ 14,464,820 $ 9,934,314 $ 12,667,910 ============ ============ ============ LIABILITIES & STOCKHOLDERS' EQUITY Liabilities: Deposits $ 6,952,337 $ 5,433,642 $ 6,765,107 Federal funds purchased and securities sold under agreements to repurchase 4,413,070 2,363,557 3,650,297 Advances from FHLB 1,223,000 713,000 913,000 Notes Payable & Subordinated Notes 236,521 82,817 82,818 Other Borrowings 102,610 Payable for unsettled investment trade 198,575 375,000 Accounts payable and other liabilities 209,856 111,102 167,119 ------------ ------------ ------------ 13,335,969 9,079,118 11,578,341 ------------ ------------ ------------ Stockholders' equity: Preferred Stock 550,100 360,500 550,100 ------------ ------------ ------------ Common stock outstanding 40,216 40,006 40,027 Additional paid - in capital 2,323 676 269 Capital Reserve and Legal Surplus 243,106 219,345 243,107 Retained earnings 270,397 188,644 220,038 Accumulated other comprehensive income, net of tax 22,709 46,025 36,028 ------------ ------------ ------------ 1,128,851 855,196 1,089,569 ------------ ------------ ------------ Total liabilities and stockholders' equity $ 14,464,820 $ 9,934,314 $ 12,667,910 ============ ============ ============ BOOK VALUE PER COMMON SHARE $ 14.39 $ 12.37 $ 13.48 ============ ============ ============
FIRST BANCORP SELECTED FINANCIAL DATA (UNAUDITED) DOLLARS IN THOUSANDS
CREDIT QUALITY DATA AT: June 30, 2004 June 30, 2003 December 31, 2003 - ----------------------- ------------- ------------- ----------------- Non-performing Assets $102,344 $100,878 $100,771 -------- -------- -------- Non-performing Loans 90,987 88,998 85,525 -------- -------- -------- Past Due Loans 16,519 28,787 23,493 -------- -------- -------- Allowance for Loan Losses 133,678 120,563 126,378 -------- -------- -------- Non-performing Assets to Total Assets 0.71% 1.02% 0.80% -------- -------- -------- Non-performing Loans to Total Loans 1.15% 1.41% 1.21% -------- -------- -------- Allowance to Non-Performing Loans 146.92% 135.47% 147.77% -------- -------- --------
SELECTED PERFORMANCE RATIOS: Three Months Ended Three Months Ended Six Months Ended - ---------------------------- June 30, March 31, June 30, 2004 2003 2004 2004 2003 ----------- ----------- ----------- ----------- ----------- Net Interest Yield (1) 3.45% 3.07% 3.33% 3.39% 3.38% ----------- ----------- ----------- ----------- ----------- Return on Assets 1.19% 1.26% 1.32% 1.25% 1.41% ----------- ----------- ----------- ----------- ----------- Return on Equity 14.27% 13.80% 14.56% 14.41% 15.82% ----------- ----------- ----------- ----------- ----------- Return on Common Equity 20.98% 18.47% 21.74% 21.35% 22.20% ----------- ----------- ----------- ----------- ----------- Net Write offs to Average Loans 0.52% 0.65% 0.51% 0.52% 0.70% ----------- ----------- ----------- ----------- ----------- Efficiency Ratio 42.17% 45.20% 39.89% 41.03% 42.45% ----------- ----------- ----------- ----------- ----------- AVERAGE BALANCES: Assets $13,437,398 $ 9,306,733 $12,161,894 $12,799,646 $ 9,334,255 ----------- ----------- ----------- ----------- ----------- Earnings Assets 13,065,221 8,972,529 11,764,838 12,415,096 8,992,382 ----------- ----------- ----------- ----------- ----------- Loans 7,582,815 6,067,527 7,188,149 7,385,273 5,900,148 ----------- ----------- ----------- ----------- ----------- Deposits 6,924,520 5,373,362 6,705,126 6,814,823 5,364,859 ----------- ----------- ----------- ----------- ----------- Interest-bearing liabilities 11,607,155 7,891,580 10,315,508 10,964,365 7,935,467 ----------- ----------- ----------- ----------- ----------- Stockholders Equity 1,119,628 848,233 1,104,490 1,112,059 830,672 ----------- ----------- ----------- ----------- ----------- Common Stockholders Equity 569,528 487,733 554,390 561,959 470,172 ----------- ----------- ----------- ----------- -----------
(1) On a taxable equivalent basis. -----END PRIVACY-ENHANCED MESSAGE-----