19 slides from First Bancorp. New's investor presentation, Nov 15, 2012
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation November 2012
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” concerning First BanCorp’s (the “Corporation”) future economic performance. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “expect,” “anticipate,” “look forward,” “should,” “beli
Slide 3: Franchise Overview
Franchise Overview Well diversified with significant competitive strengths Founded in 1948 (64 years) Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida A well diversified operation with over 650,000 retail & commercial customers 2nd largest
Slide 4: Franchise Overview
Franchise Overview Unique challenger to Puerto Rico’s largest player ($ in millions) PuertoRicoTotalAssets1 PuertoRicoTotalLoans1 PuertoRicoDeposits,Netof Brokered1 Portfolio Market Portfolio Market Portfolio Institutions Institutions Institutions Market Share Balance Share Balance Share Balance 1 B
Slide 5: Building Franchise Value
Building Franchise Value Executing strategic plan toward sustained profitability Improving risk profile; focusing on reducing NPAs Balance Sheet Executing on opportunities to reduce cost of funds Expanding products mix and maximizing cross selling opportunities Growing core deposits Franchise Value
Slide 6: Core Franchise is Strong
Core Franchise is Strong Focus on core operating metrics and continued improvement in PTPP earnings ($ in millions, except per share results) Income Statement 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 Net interest income, excluding valuations $ 95.6 $ 96.8 $ 100.3 $ 101.6 $ 108.2 $ 125.3 Valua
Slide 7: Building Franchise Value
Building Franchise Value Targeted strategies for growth 1 Market Share in Main Market Puerto Rico Rank Opportunities for ongoing market share gains on selected Assets 15% 85% 2 products based on fair share of market Personal Loans 7% 93% 4 Largest opportunity on deposit products, electronic banking
Slide 8: Building Franchise Value
Building Franchise Value Successful deposits growth over recent years ($ in millions) Deposits, Net of Brokered CDs Total Deposit Composition $6,488 $6,500 $6,176 $5,800 $5,108 $2,748 $2,654 $2,477 $2,381 $915 $1,005 $763 $774 $470 $481 $679 $448 $2,090 $2,126 $2,056 $1,505 Non-interest $- Bearing 2
Slide 9: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Strong Origination Capabilities ($ in millions) Asset Composition Loan Portfolio $19,628 $20,000 $13,949 $1,340 $15,000 $20 $11,957 $15,593 $10,575 $1,493 $10,257 $4,867 $821 $301 $13,127 $13,140 $701 $16 $3,369 $428 $68 $802 $1,442 $353 $2,244 $6,942 $1,887 $5,822 $5
Slide 10: Improved Risk Profile
Improved Risk Profile Proactively Managing Asset Quality ($ in millions) Non-performing Assets Net Charge-offs $1,800 $1,701 $1,669 $650 $610 $1,562 $1,410 $1,390 $1,377 $1,337 $1,332 $1,308 $1,259 $313 $333 $295 $183 $101 $180 $138 $118 $39 $60 $54 $48 $61 $37 $24 $- $29 $63 $39 $- $27 Jun 10 Sep 1
Slide 11: Core Franchise is Strong
Core Franchise is Strong Continued focus on execution of Strategic Plan Executing on Strategic Plan to further Strengthen Core Franchise Achieve additional reduction of NPAs and classified assets Continue to execute core deposit strategic plan Rebuild and grow pre-tax pre-provision income Q3 2012 PT
Slide 12: Summary of Investment Opportunity
Summary of Investment Opportunity Strong and uniquely positioned franchise with strengthened capital base Growing pre-tax, pre-provision earnings with opportunities for improvement Executing on our strategic plan Continued improvements in asset quality Core-deposit plan Disciplined ongoing expense m
Slide 13: Exhibits
Exhibits Investor Presentation November 2012
Slide 14: Stock Profile
Stock Profile 5% or more Beneficial Ownership Trading Symbol: • FBP Percent of Beneficial Owner Amount Exchange: • NYSE Class Entities affiliated with Thomas H. Lee 50,684,485 24.59% Partners, L.P. SharePrice(11/12/12): • $4.01 Entities affiliated with Oaktree Capital 50,684,485 24.59% Management, L
Slide 15: Economic Environment Continues to Stabilize
Economic Environment Continues to Stabilize Puerto Rico Retail Sales show a stable trend over the last two years Economic Activity Index continues to reflect stabilization with certain New car sales have shown a positive year over year trend since December 2009 improving trends Stabilization of the
Slide 16: Economic Environment Continues to Stabilize
Economic Environment Continues to Stabilize 1 Florida Unemployment Rate Florida Numberof homessold increased(2) 2%in September 2012 compared to the same month last year. Median sales price increased 7.4% to $145,000 Unemployment rate* for September 2012 was 8.7%. It reflects a 1.7% point decrease co
Slide 17: Non-performing Assets
Non-performing Assets ($ in millions) Sep 2012 Jun 2012 Mar 2012 % change Non-performing loans Residential mortgage $ 320.9 $ 333.0 $ 341.2 0.9% Commercial mortgage 231.2 239.9 244.4 1.7% Commercial & Industrial 230.5 255.3 263.6 -2.4% Construction 189.5 202.1 231.1 -9.3% Consumer Loans & Finance Le
Slide 18: Adjusted Pre-tax, Pre-provision Income Reconciliation
Adjusted Pre-tax, Pre-provision Income Reconciliation ($ in thousands) Quarter Ended 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 2Q 2011 Loss before income taxes $ 19,834 $ 10,901 $ (11,049) $ (14,600) $ (21,158) $ (12,318) Add: Provision for loan and lease losses 28,952 24,884 36,197 41,987 46,446 59,1
Slide 19: Reconciliation of the Earnings (Loss) per Common Share
Reconciliation of the Earnings (Loss) per Common Share ($ in thousands, except per share information) 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 2Q 2011 Net income (loss) $ 19,073 $ 9,356 $ (13,182) $ (14,842) $ (24,046) $ (14,924) Cumulative convertible preferred stock dividend (Series G) - - - (997)