First Bancorp. (NYSE: FBP) reported Q1 EPS of $0.11, $0.01 better than the analyst estimate of $0.10.

• Net income of $25.5 million, or $0.11 per diluted share, compared to $23.9 million, or $0.11 per diluted share, for the fourth quarter of 2016. The financial results for the first quarter of 2017 include a $12.2 million other-than-temporary impairment (“OTTI”) charge on Puerto Rico government debt securities and a $13.2 million tax benefit related to the change in tax status of certain subsidiaries from taxable corporations to limited liability companies that make an election to be treated as partnerships for income tax purposes in Puerto Rico.
• Net interest income increased by $1.5 million to $122.5 million, compared to $121.1 million for the fourth quarter of 2016, primarily due to a decrease in the premium amortization expense on U.S. agency mortgage-backed securities (“MBS”) due to slowing prepayment speeds and the full quarter benefit of the maturity of $300 million in high-cost repurchase agreements in the fourth quarter of 2016.
• Net interest margin increased 12 basis points to 4.42%.
• Provision for loan and lease losses increased by $2.3 million to $25.4 million, compared to $23.2 million for the fourth quarter of 2016, primarily due to an increase of $10.8 million in the specific reserve for commercial mortgage loans guaranteed by the Puerto Rico Tourism Development Fund (“TDF”) and an increase in the residential mortgage loans loss provision, partially offset by lower provision for commercial and industrial and consumer loans.
• Non-interest income decreased by $15.3 million to $8.2 million compared to $23.6 million for the fourth quarter of 2016, a decrease driven by the $12.2 million OTTI charge on Puerto Rico government debt securities, and the effect in the previous quarter of a $1.5 million gain from recovery of a residual private label collateralized mortgage obligation (“CMO”) previously written off.
• Non-interest expenses increased by $3.6 million to $87.9 million, compared to $84.2 million for the fourth quarter of 2016, primarily due to the effect in the previous quarter of a $2.7 million adjustment recorded to reduce the credit card rewards liability.
• Income tax benefit of $8.1 million compared to income tax expense of $13.3 million for the fourth quarter of 2016, significantly impacted by the aforementioned $13.2 million benefit related to the change in tax status of certain subsidiaries.
• Credit quality variances:
  • Non-performing assets decreased in the quarter by $87.3 million, to $647.2 million as of March 31, 2017. The change from the 2016 fourth quarter reflects decreases in all major loan categories including, among other things, the effect of the sale of the Corporation’s participation in the Puerto Rico Electric Power Authority (“PREPA”) line of credit with a book value of $64 million at the time of sale as well as collections and charge-offs.
  • Non-performing loan inflows amounted to $33.4 million, a decrease of $34.5 million, compared to inflows of $67.9 million in the fourth quarter of 2016.
  • A net charge-off rate of 1.26% (0.78% excluding the charge-off of $10.7 million recorded in connection with the sale of the PREPA credit line) compared to 1.43% for the fourth quarter of 2016 (1.22% excluding net charge-offs of $4.6 million associated with the sale of a $16.3 million pool of non-performing assets).
• Total deposits, excluding brokered certificates of deposit (“CDs”) and government deposits, increased in the quarter by $86.3 million to $6.9 billion as of March 31, 2017, reflecting increases of $67.4 million and $38.3 million in the Puerto Rico and the Virgin Islands regions, respectively, partially offset by a $19.4 million reduction in the Florida region.
• Brokered CDs decreased in the quarter by $81.2 million to $1.4 billion as of March 31, 2017.
• Government deposits increased in the quarter by $21.7 million to $585.4 million as of March 31, 2017, an increase primarily reflected in the Puerto Rico region.
• Total loans decreased in the quarter by $68.6 million to $8.9 billion as of March 31, 2017, primarily reflecting a $114.3 million reduction in the Puerto Rico region, including the effect of the aforementioned sale of the PREPA credit line with a book value of $64 million at the time of sale, and lower loan balances in residential mortgage and consumer loans, partially offset by a $50.1 million growth in the Florida region reflected in all major loan categories.
• Total loan originations, including refinancings, renewals and draws from existing commitments (excluding credit card utilization activity), of $867.6 million for the first quarter of 2017, compared to $757.1 million for the fourth quarter of 2016, an increase driven by large commercial refinancing and renewals during the first quarter.
• As of March 31, 2017, the Corporation had $245.0 million of direct exposure to loans and obligations of the Commonwealth of Puerto Rico government and instrumentalities, of which $190.9 million, or 78%, represented exposure to municipalities, which is supported by assigned property tax revenues, compared to total exposure of $323.3 million as of December 31, 2016, of which $191.9 million, or 59%, represented exposure to municipalities.
• Total capital, common equity Tier 1 capital, Tier 1 capital, and leverage ratios calculated under the transition provisions of the Basel III rules of 21.85%, 18.22%, 18.22%, and 13.83%, respectively, as of March 31, 2017. Tangible common equity ratio of 14.70% as of March 31, 2017

For earnings history and earnings-related data on First Bancorp. (FBP) click here.