61 slides from First Bancorp. New's investor presentation, Jun 12, 2008
Slide 1: First BanCorp Investor Presentation June 12, 2008
First BanCorp (NYSE: FBP) Investor Presentation June 12, 2008
Slide 2: 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 financial informa
Slide 3: Agenda
Agenda Management Team Recent Events Corporate Overview Geographic and Business Overviews Puerto Rico Florida Eastern Caribbean Treasury/Liquidity Asset Quality Capital Position Stock Performance 2008 and Beyond
Slide 4: Management Team: Chairman and CEO, COO
LUIS M. BEAUCHAMP - CHAIRMAN AND CHIEF EXECUTIVE OFFICER Joined First BanCorp in 1990, was named President, CEO and Board Member in September 2005 Prior to 2005, he was Chief Lending Officer & SEVP of the Wholesale Banking area including Commercial, Construction, and Real Estate businesses Prior to
Slide 5: Management Team: Risk, Wholesale Banking, Lending
NAYDA RIVERA - EVP AND CHIEF RISK OFFICER Joined First BanCorp in 2002 and was named SVP & Chief Risk Officer in April 2006 and EVP in January 2008 Has more than 12 years of combined work experience in public company, auditing, accounting, financial reporting, internal controls, corporate governance
Slide 6: Recent Events
BanCorp Recent Events
Slide 7: Recent Events
Recent Events February 2007: Unwinding of substantial portion of mortgage-related transactions with RG Financial August 2007: Completed capital infusion through private placement offering with Scotiabank for $94.8mm in common stock August 2007: Resolution of stockholder's class action lawsuit and SE
Slide 8: Accomplishments
Accomplishments Increased or sustained market share in all retail and commercial business segments Growth of $353 millions in core deposits since end of 2007 Expanded FIA credit card issuance alliance to Virgin Islands Acquired VICB community bank with $ 59 million in assets and $56 million in depos
Slide 9: Corporate Overview
Corporate Overview
Slide 10: Highlights
Highlights As of March 31, 2008: Total assets of $18.1billion Among the three largest financial holding companies headquartered in Puerto Rico and within the 50 largest bank holding companies in the US* Highly diversified financial services company operating with strong corporate, commercial, consum
Slide 11: Legal Organizational Chart
Legal Organizational Chart Notes: IBE: International Banking Entity Organizational chart shows the Corporation's main business entities First BanCorp FirstBank Puerto Rico First Express USVI FirstBank Insurance Agency First Insurance Agency USVI First Federal Finance (d/b/a Money Express) FirstMortg
Slide 12: Geographic Footprint
12 Geographic Footprint oa St. Croix -Other Vi Branches Virgin Gorda 4 St Johns 2 Tortola Total VI Branches
Slide 13: Selected Financial Data
* On a tax equivalent basis Selected Financial Data
Slide 14: Selected Financial Data: Net Interest Margin Detail
3 month LIBOR decreased by more than 200 basis points in the first quarter of 2008 Net interest margin improved 26 basis points during the same period Strong capital and liquidity positions support the operations through this period of weak economic conditions which are not expected to improve throu
Slide 15: Business Subsidiaries Overview
FirstBank Puerto Rico First Leasing and Rental-a vehicle leasing and daily rental company with 7 offices in Puerto Rico First Federal Finance (d/b/a Money Express)-a small-loan consumer finance company with 38 offices in Puerto Rico FirstMortgage-a residential mortgage loan origination company with
Slide 16: Total Assets
Total Assets 2006 2007 1Q08 ($ in millions) 17390 17186 18149 ($ in millions) * As of March 31, 2008
Slide 17: Loan Portfolio
Loan Portfolio * Includes Finance Leases ** Commercial loans to other financial institutions collateralized by mortgages *** As of March 31, 2008 Portfolio Composition*** Total $12,081 ($ in millions)
Slide 18: Total Deposits
Total Deposits 2006 2007 1Q08 Retail 11004 11034 11639 Commercial ($ in millions) Retail* Commercial CD's Brokered 0.16 0.06 0.14 0.64 Includes escrow accounts and uposted ** As of March 31, 2008
Slide 19: Total Deposits Detail
Total Deposits Detail ($ in millions)
Slide 20: Puerto Rico
BanCorp Puerto Rico
Slide 21: Puerto Rico Footprint
Puerto Rico Footprint Dark Green: Municipalities where FBP is present
Slide 22: Puerto Rico Market Share
Puerto Rico Market Share 4Q07 1Q08 Market Position Branches 8.44% 8.44% 4th Deposits Total Deposits 16.25% 17.11% 3rd Total Deposits (Net of Brokered) 7.70% 8.39% 4th Savings & CD's (w/o brokered, IRA & Keogh) 7.93% 8.01% 5th Brokered CD's 27.96% 30.45% 2nd Government Deposits 5.28% 5.85% 3rd Loans
Slide 23: Puerto Rico Customers
23 Puerto Rico Customers Movement vs. Clients 2006 2007 1Q 08 2006 Individuals 401,462 420,296 423,995 56% T Commercial 8,831 9,385 9,556 8.2% T Total 408,255 427,580 431,330 5.6% 1 Movement vs. Cross-Selling 2006 2007 1 08 2006 Relations (CSR) 1.495 1.533 1.538 tT Accounts (CSA) 1.671 1.738 1.746 T
Slide 24: Puerto Rico Wholesale Banking
Puerto Rico Wholesale Banking Diverse Wholesale Banking business with corporate, commercial banking, government & construction segments with strong pipeline and broad product offering for its larger corporate customer base Products include financing, capital markets, business management services and
Slide 25: Puerto Rico Corporate and Commercial Lending
Puerto Rico Corporate and Commercial Lending Commercial Banking for corporate and middle market customers is expected to continue as one of the growth drivers Puerto Rico market has been divided into five regions to better serve small and medium sized businesses: San Juan, Bayamon, Caguas and Ponce
Slide 26: Puerto Rico Construction Lending
Puerto Rico Construction Lending Specializes in the interim construction financing of residential, industrial and commercial projects Currently financing approximately 37 projects across the island Due to economic environment, have implemented strict underwriting policies and extremely proactive por
Slide 27: Puerto Rico Mortgage Lending (FirstMortgage)
Puerto Rico Mortgage Lending (FirstMortgage) Market historically dominated by Doral, and R&G, nevertheless recent developments experienced by these institutions have provided opportunities for market share growth as well as a more rational pricing environment Recent reduction in originations volume
Slide 28: Puerto Rico Auto Lending
Puerto Rico Auto Lending Highly competitive and specialized business Four major participants: BPPR, Reliable, FirstBank and BBVA Strong #2 position with 17% market share as of March 2008 Also offer leasing and rental services through First Leasing & Rental Business strategy integrates attractive com
Slide 29: Puerto Rico Consumer Lending
Puerto Rico Consumer Lending Offers unsecured loans, credit lines and marine financing Currently #3 in market share by successfully developing direct and indirect channels and focusing on 15 minute credit approval process Reductions in the portfolio are also due to adverse economic conditions and ti
Slide 30: Puerto Rico Money Express
Specializes in sub-prime unsecured personal lending Loans below $5,000, under Money Express Brand Loans over $5,000 under Prestamas Brand FirstBank currently has a 11% market share due to a limited market, focus is on capturing market share from competitors A total of 38 branches at end of March 31,
Slide 31: Puerto Rico Insurance Business
Puerto Rico Insurance Business FirstBank Insurance has experienced strong growth since inception Strategy is to leverage the insurance needs of customers across the Bank's business lines, including auto, mortgage, consumer and commercial Other key priorities are opening additional offices through Fi
Slide 32: Florida
BanCorp Florida
Slide 33: Florida Operations
Florida Operations First BanCorp initiated its expansion into the mainland market with a Commercial Loan Agency in Miami, Florida during 2004 With the acquisition of FirstBank Florida, First BanCorp entered into full banking services for consumers and small businesses As a result of the Florida Oper
Slide 34: FirstBank Florida
FirstBank Florida In March 2005, acquired Unibank, later renamed FirstBank Florida in an effort to expand Florida franchise beyond the Bank's Miami-based loan agency Total assets of $907 million in assets as and 11 locations in the Miami-Dade, Broward and Central Florida areas Strategy includes: Shi
Slide 35: FirstBank Miami Agency
FirstBank Miami Agency Offers construction and commercial loans Agency managed by experienced and well known lenders in the Florida banking community Total outstandings reached $693 million and $126 million in undisbursed commitments, distributed among condo conversion, construction, commercial mort
Slide 36: Eastern Caribbean
BanCorp Eastern Caribbean
Slide 37: FirstBank Eastern Caribbean Region
FirstBank Eastern Caribbean Region
Slide 38: Eastern Caribbean Loans
Eastern Caribbean Loans Operations include presence in St Thomas, St Croix, St John, Tortola and Virgin Gorda FirstBank acquired the USVI and BVI branches of Citibank (1999), JPMorgan Chase (2002), and Virgin Islands Community Bank in St. Croix (2008) FirstBank has become a market leader in these pa
Slide 39: Treasury/Liquidity
Treasury/Liquidity
Slide 40: Investment Portfolio
Investment Portfolio ($ in millions) Total Investment Portfolio $5,456 By Rating Distribution
Slide 41: U.S. Government & Agency Portfolio by Final Maturity
* Effective maturity may differ due to embedded call options U.S. Government & Agency Portfolio by Final Maturity*
Slide 42: Funding
Funding Cost of Funds YTD 4.11% As of March 31, 2008
Slide 43: Weighted Average Time Left to Final Maturity of Brokered CDs
Weighted Average Time Left to Final Maturity* 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 12/31/2007 0.52 4.92 9.24 3/31/
Slide 44: Liquidity
Liquidity Minimum internal requirement: 5% of Assets As of March 31, 2008 First Bank* ($000) % Basic Surplus** (w/out repo roll.) 1,324,414 7.71% Overall Surplus (with short repo roll.) 1,614,414 9.40% As of December 31, 2007 First Bank* ($000) % Basic Surplus** (w/out repo roll.) 895,841 5.10% Over
Slide 45: Investment Portfolio
Investment Portfolio As of March 31, 2008
Slide 46: Net Interest Income 1 Year Growth-Rates +200 Basis Points
| 46 12/31/1997 3/31/1998 6/30/1998 9/30/1998 12/31/1998 3/31/1999 6/30/1999 9/30/1999 12/31/1999 3/30/2000 6/30/2000 9/30/2000 12/31/2000 3/30/2001 6/30/2001 9/30/2001 12/31/2001 3/31/2002 6/30/2002 9/30/2002 12/31/2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004 12/31/20
Slide 47: Net Interest Income 1 Year Growth-Rates -200 Basis Points
| 47 12/31/1997 3/31/1998 6/30/1998 9/30/1998 12/31/1998 3/31/1999 6/30/1999 9/30/1999 12/31/1999 3/30/2000 6/30/2000 9/30/2000 12/31/2000 3/30/2001 6/30/2001 9/30/2001 12/31/2001 3/31/2002 6/30/2002 9/30/2002 12/31/2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004 12/31/20
Slide 48: Asset Quality
BanCorp Asset Quality
Slide 49: Total Loans
Total Loans Decrease in total loans in 2006 is mainly a result of repayments of approximately $2.7 billion in secured commercial loans from Doral and R&G of which $2.4 billion represented the non-recurrent payment received in May 2006
Slide 50: Asset Quality
Asset Quality Non performing residential mortgage loans have increased since 2006. Historically, the Corporation has experienced minimal losses in this portfolio. Current reserve levels for the mortgage portfolio are reviewed and validated by external consultants.
Slide 51: Lending & Credit Administration
Lending & Credit Administration ($000's) Description As of 12/31/06 % As of 12/31/07 % As of 03/31/08 % Increase / Decrease vs 12/31/07 Increase / Decrease vs 12/31/06 Residential Mortgages $ 114,828 43% $ 209,077 48% $ 229,643 49% $ 20,566 $ 114,815 Commercial and Construction 82,713 31% 148,939 34
Slide 52: Net Charge Off/Average Loans Ratio
Net Charge Off/Average Loans Ratio *Includes Finance Leases Loan Type 2002 2003 2004 2005 2006 2007 Q1 2008 Residential Real Estate Loans 0.09% 0.04% 0.02% 0.05% 0.04% 0.03% 0.16% Commercial & Construction loans 0.14% 0.17% 0.11% 0.10% 0.04% 0.23% 0.48% Consumer Loans * 3.15% 2.60% 2.25% 2.06% 2.90%
Slide 53: Capital Position
BanCorp Capital Position
Slide 54: Capital Position
Capital Position As of March 31st, 2008 First BanCorp FirstBank
Slide 55: Stock Performance
Stock Performance
Slide 56: FBP Stock Performance vs. Peers 1st Quarter
First BanCorp FBP Stock Performance vs. Peers 1st Quarter *Full service commercial bank peers in PR Source: Bloomberg *As of March 31, 2008
Slide 57: FBP Stock Performance vs. Peers 2008 YTD
First BanCorp FBP Stock Performance vs. Peers 2008 YTD *Full service commercial bank peers in PR Source: Bloomberg *As of June 11, 2008
Slide 58: First BanCorp Market Price to Book Value Ratio
First BanCorp Market Price to Book Value Ratio
Slide 59: 2008 and Beyond
2008 and Beyond
Slide 60: Enterprise Focus 2008 and Beyond
Enterprise Focus 2008 and Beyond Asset Quality Potential Acquisitions Business Growth Process Efficiencies and Cost Reduction Service Quality Leadership
Slide 61: First BanCorp
First BanCorp (NYSE: FBP) Investor Presentation June 12, 2008