First BanCorp experienced a substantial net loss during the second quarter of 2013 due to two significant transactions.
The bank holding company for FirstBank Puerto Rico reported a net loss of $122.6 million for 2Q13, or $0.60 per diluted share, compared to a net loss of $72.6 million, or $0.35 per diluted share, for the first three months of the year.
The second-quarter results were negatively impacted by a
However, excluding the effects of the bulk sale of the nonperforming residential assets and the Lehman collateral write-off, net income for the financial institution in the second quarter was $16.8 million, compared to a net loss of $4.6 million during the previous quarter.
Additionally, the San Juan-based bank asset credit quality metrics continue to improve as nonperforming assets decreased for the 13th consecutive quarter, declining by $334.7 million or 31% from the first quarter. Also, nonperforming loans held for sale decreased quarter-over-quarter by $229.6 million, or 28%.
Furthermore, the bank reported net interest margin expanded to over 4%, there was growth on core deposits and strong loan origination activity at over $900 million during the second quarter.
“Our initiatives to accelerate improvement of asset quality led to several extraordinary expenses and charges in the second quarter and created significant variability in our financial results,” said Aurelio Aleman, president and CEO of First Bancorp.
“We are very pleased with the progress achieved in the derisking of our balance sheet, our nonperforming assets to total assets ratios is at the lowest level since the peak in 2010. While our market is still facing headwinds, with the Puerto Rico government’s approved budget and steps taken to address fiscal issues, the economic environment should continue to show signs of stabilization.”
