First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (September 2007)
55 slides from First Bancorp. New's investor presentation, Sep 19, 2007
Slide 1: First Bancorp Overview September 2007
First Bancorp (NYSE: FBP) Overview September 2007
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by First BanCorp to provide current information, including preliminary financial information, about its operations and includes information that has not been included in any report previously filed with the Securities and Exchange Commission. The financ
Slide 3: Management Presenters
13 Management Presenters vis Beauchamp Officer Femando Scherrer Me, Beauchamp joined Fest BanCorp in 1990 and was named President and CEO and Board Memberin September 2005 Prior to this posiion, Mr. Beauchamp served as Chief Lending Officer ‘and SEVP of the Wholesale Banking division Inthisrole, he
Slide 4: Management Presenters
Management Presenters ‘As Executive Vice President, Mr. Rivera is in charge of corporate banking, commercial, international, government and institutional banking, skuctured finance and cash management for Firs!Bank Puerto Rico Prior to joining FistBank Puerto Rico in 1998, Mr. Rivera worked for 24 y
Slide 5: Management Presenters
Management Presenters Nayda Rivera ‘+ Joined FirstBank in 2002 SVP, Chief Risk Ofc ‘+ Appointed Chiet Rsk Officer in April 2006. Prior to appointment wos General Auditor from July 2002 to Api 2008, ++ Prior to joining FistBonk was Audit Manager ot PricewaterhouseCoopers LLP from September 1996 to Ju
Slide 6: Agenda
Agenda Company Overview Recent Developments Business Overview & Highlights Selected Financial Data 2nd QTR 2007
Slide 7: Company Overview
Cimeancor Company Overview
Slide 8: Corporate Highlights
Corporate Highlights Headquartered in San Juan, Puerto Rico Approximately 3,000 full time employees 153 branches, stand-alone offices and in-branch service centers Total assets of $17.6 billion as of June 30, 2007 Among the three largest financial holding companies headquartered in Puerto Rico and w
Slide 9: Corporate Organizational Chart
Corporate Organizational Chart Notes: IBE: International Banking Entity Organizational chart shows the Corporation's main business entities First BanCorp FirstBank Puerto Rico First Express USVI FirstBank Insurance Agency First Insurance Agency USVI First Federal Finance (d/b/a Money Express) First
Slide 10: Recent Developments Since September 2005
Recent Developments Since September 2005
Slide 11: First BanCorp Recent Developments
First BanCorp Recent Developments September 2005: Senior Management changes November 2005: Board of Directors elected Fernando Rodriguez Amaro as a new independent director to serve as an additional financial expert on the Audit Committee December 2005: First BanCorp announced that it would restate
Slide 12: First BanCorp Recent Developments
First BanCorp Recent Developments August 2006: FirstBank consented to a Cease-and-Desist order with the FDIC under which the Company agreed to take certain actions to strengthen the Bank's compliance with the Bank Secrecy Act ("BSA") August 2006: FirstBank acquired an office building and land for a
Slide 13: First BanCorp Recent Developments
First BanCorp Recent Developments January 2007: The Corporation implemented SFAS 157 and SFAS 159 for certain callable brokered CD's and medium term notes. Adoption of SFAS 159 increased capital by0approximately $92.2 million February 2007: The Corporation filed with the SEC 2005 financial statement
Slide 14: First BanCorp Recent Developments
First BanCorp Recent Developments July 2007: The Corporation filed with the SEC 2006 financial statements on Form 10-K July 2007: First BanCorp announced that the Corporation's annual meeting of stockholders' will be held on October 31, 2007. The record date for the determination of stockholders ent
Slide 15: Business Overview & Highlights
Business Overview & Highlights
Slide 16: Business Overview
Business Overview First BanCorp is the parent company of FirstBank Puerto Rico, a state chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida; FirstBank Insurance Agency; and Ponce General, the holding company of FirstBank Florida FirstBank Puerto Rico has 4 subsid
Slide 17: Geographic Footprint
(48) 2 15 Geographic Footprint (4) (Florida includes 1 Headquarters office and 1 Operations center.)
Slide 18: Puerto Rico Footprint
Puerto Rico Footprint Opportunities Within the Local Market Opportunities Within the Local Market Opportunities Within the Local Market Dark Green: Municipalities where FBP is present
Slide 19: Second largest financial holding company headquartered in Puerto Rico
FBP: Second largest financial holding company headquartered in Puerto Rico Share (Mar 07) Market Position Branches* 8.36% 4th Deposits Savings & CD's (w/o brokered, foreign, IRA & keogh) 8.26% 4th Consumer DDA's 6.85% 6th Commercial & Corporate DDA's 5.74% 4th Brokered CD's 32.41% 1st Government Dep
Slide 20: Florida Deposit Market
Total Deposits Commercial & Savings Institutions 2002 2003 2004 2005 2006 Total of Deposits 242820634 268173834 300961284 342820553 363415173 2002 2003 2004 2005 2006 Number of Institutions in the Market 349 352 353 349 365 Total Financial Institutions Operating in Florida Total deposit market excee
Slide 21: Business Highlights
Business Highlights Diverse Business Mix Core lending franchise is comprised of corporate, commercial and consumer lending Full service and scale corporate and commercial and construction banking operations differentiate First BanCorp from most Island peers Additional scale businesses, including mor
Slide 22: Enterprise Wide Strategic Initiatives
Enterprise Wide Strategic Initiatives Strategic Planning: Enhancement of the strategic planning function. Financial Management: Become a financial management center of excellence. Corporate Governance and ERM: Continue evolving Enterprise Risk Management infrastructure & achieve advanced level. Bran
Slide 23: Branding Strategy: The Tagline and Signature
Branding Strategy: The Tagline and Signature
Slide 24: First BanCorp Total Assets
First BanCorp Total Assets First BanCorp Total Assets of $17.6 Billion as of June 30, 2007 Cash & Money Otherassets ‘Market Instruments 3% 5% Investments 29% Loans receivables Net of ALL of $165, million 63%
Slide 25: Diversified Loan Portfolio: By Loan Type
First BanCorp's Transformation to a Diversified Loan Portfolio: By Loan Type
Slide 26: Diversified Loan Portfolio: By Geography
First BanCorp's Transformation to a Diversified Loan Portfolio: By Geography
Slide 27: Wholesale Banking
Wholesale Banking First BanCorp has developed a broad product offering for its larger corporate customer base Institutions, government agencies and corporations Cash management product launched in 1998 Automated web-based system #3 share of government deposit segment Products include financing, capi
Slide 28: Corporate and Commercial Lending
Corporate and Commercial Lending Commercial Banking at both the Corporate and Middle Market levels is expected to continue as one of the Corporation's growth drivers in the near term In 2005, the Corporation initiated a strategy to cater customer needs in the middle market segment Significant opport
Slide 29: Corporate and Commercial Lending
First BanCorp Corporate and Commercial Lending Corporate and Commercial Lending has shown a CAGR of 16.99% since 2003
Slide 30: Commercial Mortgage
First BanCorp Commercial Mortgage Commercial Real Estate Lending has shown a CAGR of 19.59% since 2003 Note: The increase includes the loans acquired as part of FB Florida acquisition in March 2005, FB Florida commercial mortgage loans at 12/31/2006 and 6/30/07 approximated $275 million and $306 mil
Slide 31: Construction Lending
First BanCorp Construction Lending Specializes in the interim construction financing of residential, industrial and commercial projects in Puerto Rico, USVI, BVI and Florida Currently providing financing to more than 40 projects ranging from approximately $2 million to up to $150 million Constructio
Slide 32: FirstBank Miami Agency
FirstBank Miami Agency FirstBank enters the US mainland market with focus on the Florida market by establishing a Loan Agency Office in November 2004 Miami loan production office offering construction and commercial loans throughout Florida Agency managed by experienced, seasoned construction lender
Slide 33: Residential Real Estate Loans
First BanCorp Residential Real Estate Loans Residential Real Estate Lending has shown a CAGR of 35.45% since 2003 Note: The increase includes the loans acquired as part of FB Florida acquisition in March 2005, FB Florida residential mortgages at 12/31/2006 and 6/30/07 approximated $329 million and $
Slide 34: Mortgage Lending (FirstMortgage)
Mortgage Lending (FirstMortgage - PR Production) Mortgage closings have shown a CAGR of 16.15% since 2001, strengthened by the launch of First Mortgage in 2003. Reduced growth over last year is a reflection of the contraction of the local housing market combined with tightened credit policies of FBP
Slide 35: Consumer Lending
First BanCorp Consumer Lending Consumer Lending has shown a CAGR of 14.29% since 2003. The Consumer Portfolio as of June 2007 remained flat with 2006 reflecting the tightened credit policies implemented by FBP.
Slide 36: Auto Lending
Auto Lending Puerto Rico Operations A highly competitive and specialized business on the Island Four major participants: Banco Popular, Reliable, FirstBank and BBVA Strong #2 position with 17.95% market share (Puerto Rico) as of March 2007 Also offers leasing and rental services through First Truck
Slide 37: Consumer Lending Puerto Rico Operations
Consumer Lending Puerto Rico Operations Offers unsecured lending, credit lines and marine financing Currently #3 in market share Puerto Rico (personal loan segment) with a $370 million portfolio, personal and small loans Successful in developing direct and indirect channels Focus on service - 15 min
Slide 38: Money Express
Money Express Specializes in sub-prime unsecured personal lending Loans below $5,000, under Money Express Brand Loans over $5,000 under Prestamas Brand Puerto Rico market size is largely fixed (approximately $1.2 billion), so focus is on capturing market share from competitors FirstBank currently ha
Slide 39: Insurance Business
Insurance Business FirstBank Insurance and First Insurance VI have experienced growth since their inception We currently operate insurance agency offices in Puerto Rico and the Virgin Islands Leverage the insurance needs of customers across the Bank's business lines, including auto, mortgage, consum
Slide 40: Eastern Caribbean Franchise
Eastern Caribbean Franchise In 1999 and 2002, FirstBank acquired the USVI and BVI branches of Citibank and JPMorgan Chase, respectively FirstBank has become a market leader in these particularly affluent markets In the USVI, estimates reflect, #1 share by assets (37%), #1 share by originations (71%)
Slide 41: FirstBank Florida
FirstBank Florida In March 2005, First BanCorp acquired Ponce General (parent of Unibank, later renamed FirstBank Florida) Continued effort to expand Florida franchise beyond the Bank's Miami-based loan agency Branch network integration through FirstBank Florida branding Anticipated de novo branchin
Slide 42: Selected Financial Data 2nd QTR 2007
Selected Financial Data 2nd QTR 2007
Slide 43: First BanCorp Total Assets
First BanCorp Total Assets First BanCorp Total Assets of $17.6 Billion as of June 30, 2007 Cash & Money Market Instruments Other assets 5% 3% Investments 29% Loans Receivable * net of ALL of $165 milion 63%
Slide 44: First BanCorp Total Loans
First BanCorp Total Loans Decrease in total loans in 2006 is mainly a result of repayments of approximately $2.7 billion in secured commercial loans to Doral and R&G of which $2.4 billion represented the non-recurrent payment received in May 2006
Slide 45: Asset Quality
Asset Quality Non performing residential mortgage loans have increased during 2006 and first half of 2007. Historically, the Corporation has experienced minimal losses in this portfolio. Current reserve levels for the mortgage portfolio were reviewed and validated by an external consultant
Slide 46: Asset Quality
146 Asset Quality Allowance to Total Loans Excluding Residential Loans ‘Allowance to Total Loans Cia) 198% 199% 1am tare ess a a a er As of Period nd ‘As of Period End
Slide 47: Distribution of Non Performing Loans
Distribution of Non Performing Loans (First BanCorp) Lending & Credit Administration AS OF 06/30/07 % AS OF 12/31/06 % CHANGE FROM FY06 % AS OF 12/31/05 % CHANGE FROM FY05 % RESIDENTIAL MORTGAGE LOANS $ 147,954 47% $ 114,828 46% $ 33,126 52% $ 54,777 41% $ 93,177 51% COMMERCIAL LOANS 28,442 9% 24,90
Slide 48: Net Charge-Off Ratios to Average Loans
Annualized 2002 2003 2004 2005 2006 Jun-07 Residential real estate loans 0.09% 0.04% 0.02% 0.05% 0.04% 0.09% Commercial and construction loans 0.14% 0.17% 0.11% 0.10% 0.05% 0.23% Consumer loans (including finance leases) 3.15% 2.60% 2.25% 2.06% 2.90% 3.39% Total loans 0.87% 0.66% 0.48% 0.39% 0.55% 0
Slide 49: First BanCorp Capital Position
First BanCorp Capital Position Note: As filed with the Board of Governors of the Federal Reserve System Proforma leverage, Tier 1 and Total Capital ratios after Scotiabank's 10% investment in First BanCorp would be 8.93, 13.29 and 14.48, respectively.
Slide 50: FirstBank Capital Position
FirstBank Capital Position Note: Historically, holding company capital ratios are slightly higher.
Slide 51: Investment Security Portfolio
| 101 Investment Security Portfolio (as of June 30, 2007) Total = $5,786,770,330
Slide 52: Funding
| 103 Funding (as of June 30, 2007) Cost of Funds YTD 4.74%
Slide 53: U.S. Government & Agency Portfolio by Final Maturity
| 105 U.S. Government & Agency Portfolio by Final Maturity1 Date 4/9/2007 5/17/2007 6/28/2007 2/15/2015 5/15/2015 4/8/2019 6/30/2020 10/6/2020 2/17/2022 3/7/2022 7/30/2023 4/26/2024 2/14/2025 6/5/2028 9/8/2028 6/23/2033 Amount 150578479 206589191 98806626 293603389 100144296 506555996 199892365 4500
Slide 54: Weighted Average Time Left to Final Maturity of Brokered CD Portfolio
| 107 Weighted Average Time Left to Final Maturity2 of the Callable & Fixed Brokered CD Portfolio Bullets Portfolio WAVG Life Left Callables 12/31/2002 2.54 9.2 12.06 12/31/2003 1.54 10.62 14.21 12/31/2004 1.38 11.91 13.5 12/31/2005 0.3 6.19 11.01 12/31/2006 0.37 6.82 10.32 3/31/2007 0.4 5.96 9.72 6
Slide 55: First Bancorp Overview September 2007
First Bancorp (NYSE: FBP) Overview September 2007
First Bancorp — Investor Presentation (September 2007) on 6ix