First BanCorp of San Juan, Puerto Rico, reported a $2.7 million loss for the fourth quarter, compared with a $12.2 million profit a year earlier.
Revenue fell 15% from a year earlier and 3.9% from the third quarter, to $91 million. The $17.2 billion-asset company cited the island's economic downturn and said higher loan-loss provisions hurt net interest income, while severance payments increased expenses.
The company's full-year profits fell 37.2%, to $27.9 million.
First BanCorp has been struggling for some time with accounting problems and deteriorating credit quality. However, on Wednesday it said nonperforming loans increased 2% from the third quarter — the smallest increase in four quarters. It also said credit quality improved in its commercial loan portfolio.
However, nonperformers rose 64.5% from a year earlier, to $439.3 million. The chargeoff ratio rose 18 basis points from a year earlier and 8 basis points from the third quarter, to 0.85%.
"Notwithstanding the adverse business conditions, we were able to maintain market share in all our key segments," Luis Beauchamp, First BanCorp's chief executive, said in a press release, The company has left its accounting issues behind and is "confident" that it "will improve financial performance."
