2015 Third Quarter Highlights and Comparison with Second Quarter
- Net income of $14.8 million, or $0.07 per diluted share, compared to a net loss of $34.1 million, or $0.16 per diluted share, for the second quarter of 2015. As previously reported, the financial results for the second quarter were adversely impacted by a $48.7 million pre-tax loss on a bulk sale of assets, a $12.9 million pre-tax other-than-temporary impairment on Puerto Rico Government securities, and pre-tax costs of $2.6 million related to the conversion of loan and deposit accounts acquired from Doral Bank (“Doral”) to the FirstBank systems completed in the second quarter.
- Pre-tax income of $19.2 million, compared to pre-tax income of $20.2 million excluding the aforementioned significant items for the second quarter of 2015.
- Adjusted pre-tax, pre-provision income of $50.5 million, compared to $47.7 million for the second quarter of 2015, an improvement largely driven by a reduction in non-interest expenses.
- Net interest income decreased by $1.6 million to $124.9 million. Adjusted net interest income, excluding fair value adjustments on derivative instruments of $0.1 million, decreased by $1.7 million to $124.8 million. The related net interest margin remained almost flat, an increase of 1 basis point to 4.19% in the third quarter of 2015.
- Provision for loan and lease losses of $31.2 million, compared to $74.3 million for the second quarter of 2015. Excluding the $46.9 million charge to the provision related to the bulk sale of assets recorded in the second quarter, the provision for loan and lease losses increased by $3.9 million.
- Non-interest income of $18.8 million, a decrease of $1.3 million compared to adjusted non-interest income of $20.1 million for the second quarter of 2015. The decrease was driven by lower earnings from mortgage banking activities and a decrease in insurance commissions income.