First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (November 2008)
42 slides from First Bancorp. New's investor presentation, Nov 18, 2008
Slide 1: Investors Presentation November 18, 2008
INVESTORS PRESENTATION November 18, 2008
Slide 2: Agenda
3 Business Overview & Highlights Asset Quality Financial Performance & Capital Trouble-Asset Relief Program Treasury & Liquidity Stock Performance Future Focus Disclaimer Agenda
Slide 3: Business Overview & Highlights
BUSINESS OVERVIEW & HIGHLIGHTS
Slide 4: Celebrating years of steady growth and accomplishments
7 Celebrating 60 years of steady growth and accomplishments Founded in 1948 Headquartered in San Juan A unique, well diversified operation with over 550,000 retail and commercial customers 2nd largest financial holding company in Puerto Rico with total assets of $19.3 billion as of September 30, 200
Slide 5: First BanCorp celebrates its 60th Anniversary
9 It is with great pride that First BanCorp celebrates its 60th Anniversary (October 29, 2008). The Corporation is most grateful and thankful for the dedication of its employees and the loyalty of its customers over these past years. First Bancorp is now one of the top 30 bank holding companies in t
Slide 6: Organized within a Bank Holding Company structure
11 Organized within a Bank Holding Company structure First BanCorp (FBP) FirstBank Puerto Rico First Express USVI FirstBank Insurance Agency First Insurance Agency USVI Money Express FirstMortgage First Leasing and Rental FirstBank Overseas (IBE) First BanCorp Overseas Branch (IBE) FirstBank Corpora
Slide 7: A well diversified operation with multiple businesses across several markets
13 A well diversified operation with multiple businesses across several markets *Provided through alliance with UBS, the largest player in the Puerto Rico market
Slide 8: Assets by line of business and geography
15 A well diversified operation with multiple businesses across several markets Assets by Line of Business Total Assets - $19,304 million As of September 30, 2008 Limited exposure to US residential mortgage market with only 3.3% of total loan portfolio Assets by Geography Consumer & Residential 28%,
Slide 9: Key market characteristics - Puerto Rico
17 Key market characteristics - Puerto Rico Economic conditions The Island has been in a recession for the last 31 months Unemployment has increased Consumers have been negatively impacted by increases in prices The new CPI Index shows a constant increase since its introduction in Dec. '06. There is
Slide 10: Key market characteristics - Eastern Caribbean
19 Key market characteristics - Eastern Caribbean Economic conditions Tourism continues to be a main economic driver for the Virgin Islands. Experienced growth during first half of fiscal 2008 Potential for continued growth in St Croix driven by cruise ship visits Several capital projects for touris
Slide 11: Key market characteristics - Florida
21 Key market characteristics - Florida Economic conditions Very challenging real estate market conditions Increased foreclosures Deteriorated absorption rates Decreasing property values In Florida, actions were taken early in 2006 in our loan production office to reduce exposure to construction and
Slide 12: Outperformed the industry and increased or sustained share
23 Outperformed the industry and increased or sustained share in our primary market With additional opportunities to grow share and scale in selected businesses Source: FDIC; FirstBank has 48 full-service bank branches; 2. Net of Brokered Certificates of deposit; 3. Includes Commercial, Agricultural
Slide 13: Successful core deposit growth
25 Successful core deposit growth Successfully deploying our One Stop Shop strategy Leveraging the reduced competitive environment 2008 v. 2007 Total Deposits (net of brokered CDs) - $4,452 million 15% 20% 8% ($ in millions) 32%
Slide 14: Targeted loan production
27 Targeted loan production ($ in millions) Corporation is actively managing loan production opportunities Total Loan Production - $3,241 million * * * Includes the purchase of $218 million auto loan portfolio from Chrysler Financial Services Caribbean
Slide 15: Consistent loan growth in selected segments
29 Consistent loan growth in selected segments Total Loan Portfolio - $12,713 million Franchise consistently demonstrates ability to grow in selected segments * Includes Finance Leases ** Loans to local Financial Institutions ($ in millions) 2008 v. 2007 - - 8% 6% 10% 9%
Slide 16: Loan portfolio by geography and category
31 Loan portfolio by geography and category (in thousands) Puerto Rico Virgin Islands United States * * United States loan portfolio includes approximately $251.2 million of loans originally disbursed as condo-conversion loans.
Slide 17: Enhancing shareholder value through strategic opportunities
33 Enhancing shareholder value through strategic opportunities Wholesale Banking Retail Banking Consumer Lending Mortgage Lending Insurance Solidify leadership while capitalizing on market opportunities with strong emphasis on asset quality Grow deposits Offer additional fee based services Increase
Slide 18: Asset Quality
ASSET QUALITY
Slide 19: Proactively managing asset quality during a deteriorating economic cycle
37 Proactively managing asset quality during a deteriorating economic cycle Non Performing Assets ($ in millions) Stricter credit policies since 2006 showing improving trends in 2008 in the consumer portfolios Reinforced workout & loss mitigation programs to manage increases in construction, commerc
Slide 20: Proactively managing asset quality
39 Proactively managing asset quality Increase in NPAs has been experiencing a decelerating trend during 2008 The Corporation will continue to increase reserves for loan losses as market conditions demand Non Performing Assets (NPA) Allowance for Loan & Lease Losses (ALLL) ($ in millions)
Slide 21: Allowance to loan and lease losses ratios
41 Proactively managing asset quality Allowance to Loan & Lease Losses Ratios Allowance to non performing loans showing an increase as weakening economic conditions in the United States and Puerto Rico have increased the volume of impaired loans and specific reserves The allowance to total loans sho
Slide 22: Net charge offs annualized to average loans
43 Net charge offs annualized to average loans outstanding (during the period) Net charge offs have remained relatively stable, since early 2007, within these recessionary conditions
Slide 23: Non-performing assets by geography
45 Non-performing assets by geography (in thousands) Puerto Rico Virgin Islands United States September 30, 2008 December 31, 2007 Residential Mortgage 223,457 $ 195,278 $ Commercial 108,078 68,007 Construction 49,278 25,506 Consumer loans 38,028 42,779 Finance leases 5,736 6,250 Total Non Performin
Slide 24: Financial Performance and Capital
FINANCIAL PERFORMANCE AND CAPITAL
Slide 25: Improved profitability while strengthening provision
49 Improved profitability while strengthening provision *Private placement to BNS % Change (in thousands)
Slide 26: Improving key financial metrics
51 Improving key financial metrics Net Interest Margin* Return on Average Assets Return on Average Total Common Equity Dividend Payout Ratio Efficiency Ratio *On a Tax Equivalent Basis
Slide 27: Conservative growth in light of market conditions
53 Conservative growth in light of market conditions (1) FED Discount Window outstanding borrowing (in thousands) Consolidated Statement of Financial Condition
Slide 28: Managing a strong capital position
55 Managing a strong capital position * Not applicable to First Bancorp Approximately $413 million in excess of regulatory total capital well capitalized requirement
Slide 29: Trouble-Asset Relief Program Capital Purchase Program
TROUBLE-ASSET RELIEF PROGRAM Capital Purchase Program
Slide 30: TARP - Capital Purchase Program
59 TARP - Capital Purchase Program On October 29, 2008, the Corporation filed its application with the FDIC and FED to request participation under the US Department of Treasury TARP-Capital Purchase Program (TARP - CPP) Capital requested: $400 million A capital raise of this nature would increase th
Slide 31: Treasury & Liquidity
TREASURY & LIQUIDITY
Slide 32: High grade investment portfolio
63 High grade investment portfolio Highly liquid securities portfolio Over 95% of portfolio AAA-rated No exposure to sub-prime mortgage and CDOs Easily pledgeable for financing Total Investment Portfolio - $6,106 billion By Rating Distribution As of September 30, 2008 ($ in millions)
Slide 33: Strong sources of borrowings
65 Strong sources of borrowings * YTD September 30, 2008 Average Cost of Funds Interest-bearing Liabilities 3.76%*
Slide 34: Liquidity
67 Liquidity * Information for FirstBank Puerto Rico including FirstBank Overseas Corp as of September 30,2008 1. Surplus: (liquid assets - short-term liabilities) + secured line of credit; 2. Subject to 6% haircut; 3. Subject to 25% haircut; 4. Subject to 50% haircut under FRB BIC Program Basic Liq
Slide 35: Stock Performance
STOCK PERFORMANCE
Slide 36: Stock performance vs. peers
71 Stock performance FBP Stock Performance vs. Peers* YTD September 30, 2008 * Full service commercial banks in PR Source: Bloomberg
Slide 37: Stock performance: market price to book value
73 Stock performance Source: Bloomberg, Quarterly information provided by FBP First BanCorp - Market Price to Book Value Ratio
Slide 38: Future Focus
FUTURE FOCUS
Slide 39: Enhancing shareholder value through strategic growth
77 Enhancing shareholder value through strategic growth Asset quality improvement Managing revenue and expenses through formal business performance improvement project Phase 1: $10 MM in identified benefits included in 2008 budget Phase 2: Internal target of $35 MM in additional benefits for 2009- 2
Slide 40: Disclaimer
DISCLAIMER
Slide 41: Disclaimer
81 Disclaimer This presentation may contain "forward-looking statements" concerning the Corporation's future economic performance. The words or phrases "expect," "anticipate," "look forward," "should," "believes" and similar expressions are meant to identify "forward-looking statements" within the m
Slide 42: Investors Presentation November 18, 2008
INVESTORS PRESENTATION November 18, 2008
First Bancorp — Investor Presentation (November 2008) on 6ix