First BanCorp sets aside $66.5 million for Irma, Maria losses

Provision for loan and lease losses resulting from the impact of hurricanes Irma and Maria have resulted in a $66.5 million charge on the latest financial results from First BanCorp

First BanCorp sets aside $66.5 million for Irma, Maria losses
Provision for loan and lease losses resulting from the impact of hurricanes Irma and Maria have resulted in a $66.5 million charge on the latest financial results from First BanCorp.

The lender’s results for the third quarter of 2017 show a loss of $10.8 million compared to a net income of $28 million in the second quarter including the charge for the hurricanes’ impact and provision for other losses, totaling $75 million, up from $18.1 million in the previous quarter.

Net interest income decreased by $1.1 million to $122.8 million, compared to $123.9 million for the second quarter of 2017, primarily due to an increase in the premium amortization expense on U.S. agency mortgage-backed securities which was associated with higher prepayment rates, and an increase in non-performing residential mortgage loans.

Total loan originations, including refinancings, renewals and draws from existing commitments (excluding credit card utilization activity), of $589.7 million for the third quarter of 2017, compared to $906.2 million for the second quarter of 2017.

This lower figure was at least partly due to business disruption caused by the two hurricanes.