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FBP > SEC Filings for FBP > Form 8-K on 1-Nov-2012All Recent SEC Filings

Show all filings for FIRST BANCORP /PR/

Form 8-K for FIRST BANCORP /PR/


1-Nov-2012

Results of Operations and Financial Condition, Financial Statements and Exhibi


Item 2.02 Results of Operations and Financial Condition.

On October 31, 2012, First BanCorp. (the "Corporation"), the bank holding company for FirstBank Puerto Rico ("FirstBank" or "the Bank"), issued a press release announcing its unaudited results of operations for the third quarter ended September 30, 2012. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

A copy of the presentation that the Corporation will use at its conference call to discuss its financial results for the quarter ended September 30, 2012 is attached hereto as Exhibit 99.2 and is incorporated herein by reference. As announced in a press release dated October 23, 2012, the call may be accessed via a live Internet webcast at 10:00 a.m. Eastern time on Thursday, November 1, 2012 through the investor relations section of the Corporation's website:
www.firstbankpr.com or through the dial-in telephone number (877) 317-6789 or
(412) 317-6789. The conference number is 10018992.

The Corporation has included in this release the following financial measures that are not recognized under generally accepted accounting principles, which are referred to as non-GAAP financial measures: (i) the calculation of net interest income, interest rate spread and net interest margin rate on a tax-equivalent basis and excluding changes in the fair value of derivative instruments and certain financial liabilities; (ii) the calculation of the tangible common equity ratio and the tangible book value per common share; (iii) the Tier 1 common equity to risk-weighted assets ratio; and (iv) the adjusted pre-tax, pre-provision income. Investors should be aware that non-GAAP financial measures have inherent limitations and should be read only in conjunction with the Corporation's consolidated financial data prepared in accordance with GAAP. The release includes a reconciliation of these non-GAAP financial measures to the GAAP financial measures, except for the reconciliation with respect to the calculation of net interest income, interest rate spread and net interest margin rate on a tax-equivalent basis and excluding changes in the fair value of derivative instruments and certain financial liabilities which is included below.

Net interest income, interest rate spread and net interest margin are reported on a tax-equivalent basis and excluding changes in the fair value of derivative instruments and financial liabilities elected to be measured at fair value ("valuations"). The presentation of net interest income excluding valuations provides additional information about the Corporation's net interest income and facilitates comparability and analysis. The changes in the fair value of derivative instruments and unrealized gains and losses on liabilities measured at fair value have no effect on interest due or interest earned on interest-bearing liabilities or interest-earning assets, respectively. The tax-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate, as described in Exhibit A - Tables 2 and 3 of the press release attached hereto as Exhibit 99.1. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread and net interest margin on a fully tax-equivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and certain loans, on a common basis that facilitates comparison of the Corporation's results to results of its peers.


The following table reconciles the non-GAAP financial measure "net interest income on a tax-equivalent basis excluding valuations" with net interest income calculated and presented in accordance with GAAP. The table also reconciles the non-GAAP financial measures "net interest spread on a tax-equivalent basis and excluding valuations" and "net interest margin on a tax-equivalent basis and excluding valuations" with net interest spread and net interest margin calculated and presented in accordance with GAAP.

Reconciliation of GAAP Net Interest Margin and Spread to Non-GAAP Net Interest Margin and Spread on a Tax-Equivalent Basis and excluding
fair value changes on derivative instruments and liabilities measured at fair value
("valuations")
(Dollars in Thousands)

                                                                      Quarter Ended                                            Nine-Month Period Ended
                                   September 30,       June 30,        March 31,       December 31,      September 30,     September 30,     September 30,
                                       2012              2012             2012             2011              2011              2012              2011
Net Interest Income
Interest Income - GAAP             $     166,964     $    153,652     $    152,107     $     156,752     $     158,542     $     472,723     $     502,863
Unrealized loss (gain) on
derivative instruments                      (170 )             33             (332 )            (246 )             954              (469 )           1,794
Interest income excluding
valuations                               166,794          153,685          151,775           156,506           159,496           472,254           504,657
Tax-equivalent adjustment                  1,463            1,634            1,741             1,456             1,521             4,838             5,339
Interest income on a
tax-equivalent basis excluding
valuations                               168,257          155,319          153,516           157,962           161,017           477,092           509,996

Interest Expense - GAAP                   41,461           44,947           50,241            58,209            64,287           136,649           207,894
Unrealized gain (loss) on
derivative instruments and
liabilities measured at fair
value                                          -              539              (49 )          (1,992 )          (1,601 )             490            (2,176 )
Interest expense excluding
valuations                                41,461           45,486           50,192            56,217            62,686           137,139           205,718

Net interest income - GAAP         $     125,503     $    108,705     $    101,866     $      98,543     $      94,255     $     336,074     $     294,969

Net interest income excluding
valuations                         $     125,333     $    108,199     $    101,583     $     100,289     $      96,810     $     335,115     $     298,939

Net interest income on a
tax-equivalent basis excluding
valuations                         $     126,796     $    109,833     $    103,324     $     101,745     $      98,331     $     339,953     $     304,278

Average Balances
Loans and leases                   $  10,297,835     $ 10,183,229     $ 10,389,246     $  10,637,523     $  10,832,426     $  10,290,132     $  11,164,370
Total securities and other
short-term investments                 2,238,701        2,450,198        2,397,918         2,665,918         2,787,708         2,361,820         3,305,893
Average Interest-Earning Assets    $  12,536,536     $ 12,633,427     $ 12,787,164     $  13,303,441     $  13,620,134     $  12,651,952     $  14,470,263

Average Interest-Bearing
Liabilities                        $  10,518,169     $ 10,577,054     $ 10,725,162     $  11,255,725     $  11,944,454     $  10,606,471     $  12,743,832

Average Yield/Rate
Average yield on
interest-earning assets - GAAP              5.30 %           4.89 %           4.78 %            4.67 %            4.62 %            4.99 %            4.65 %
Average rate on interest-bearing
liabilities - GAAP                          1.57 %           1.71 %           1.88 %            2.05 %            2.14 %            1.72 %            2.18 %
Net interest spread - GAAP                  3.73 %           3.18 %           2.90 %            2.62 %            2.48 %            3.27 %            2.47 %
Net interest margin - GAAP                  3.98 %           3.46 %           3.20 %            2.94 %            2.75 %            3.55 %            2.73 %

Average yield on
interest-earning assets
excluding valuations                        5.29 %           4.89 %           4.77 %            4.67 %            4.65 %            4.99 %            4.66 %
Average rate on interest-bearing
liabilities excluding valuations            1.57 %           1.73 %           1.88 %            1.98 %            2.08 %            1.73 %            2.16 %
Net interest spread excluding
valuations                                  3.72 %           3.16 %           2.89 %            2.69 %            2.57 %            3.25 %            2.50 %
Net interest margin excluding
valuations                                  3.98 %           3.44 %           3.20 %            2.99 %            2.82 %            3.54 %            2.76 %

Average yield on
interest-earning assets on a
tax-equivalent basis and
excluding valuations                        5.34 %           4.94 %           4.83 %            4.71 %            4.69 %            5.04 %            4.71 %
Average rate on interest-bearing
liabilities excluding valuations            1.57 %           1.73 %           1.88 %            1.98 %            2.08 %            1.73 %            2.16 %
Net interest spread on a
tax-equivalent basis and
excluding valuations                        3.77 %           3.21 %           2.95 %            2.73 %            2.61 %            3.31 %            2.55 %
Net interest margin on a
tax-equivalent basis and
excluding valuations                        4.02 %           3.50 %           3.25 %            3.03 %            2.86 %            3.59 %            2.81 %




Item 9.01. Financial Statements and Exhibits.

(d)      Exhibits

Exhibit   Description of Exhibit

99.1      Press Release dated October 31, 2012 - First BanCorp
          Announces Earnings for the Quarter Ended September 30,
          2012

99.2      First BanCorp Conference Call Presentation - Financial
          Results Third Quarter 2012

Exhibits 99.1 and 99.2 referenced therein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall Exhibits 99.1 and 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.


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