32 slides from First Bancorp. New's investor presentation, Jun 23, 2014
Slide 1: First BanCorp Investor Presentation, June 2014
Exhibit 99.1 Exhibit First June 2014 BanCorp 99.1 Investor Presentation
Slide 2: Disclaimer
Thissubject Disclaimer expressions are advise whether other uncertainty CDs stockholders FirstBank and provisions markets, because Puerto economic government monetary Rico FDIC Corporation’s acquisitions; Wall does 1occurrences the their presentation to not Street and things, may readers Rico, Rico
Slide 3: Franchise Overview
23) Franchise Well Founded Headquartered –~2,500 2nd Florida The 146 A Eastern 15% SEwell 9% 29% 12 Total As 1) 2) ATM largest FTEof diversified diversified presence core Caribbean: Eastern Data bank of First FTE in Florida: of machines Overview Assets Loans financial depository 1948 Deposits March
Slide 4: Franchise Well Positioned in Puerto Rico
165432 in millions) Franchise Well ($ Puerto Portfolio Institutions Balance positioned Rico Share Banco Market Overview Institutions Total Balance Popular FirstBank Oriental Puerto Scotiabank Banco Portfolio Assets 9,804 Bank Rico Share Institutions $(1) 26,075 Market Puerto institution 15.2% 7,391
Slide 5: Franchise Turnaround Story
(1) Franchise Our Written Agreement with and Order Lee FDIC of 2010 June October Feb-April July The Treasury exchanged TARP convertible preferred ($ $99 inConsent & U.S. turnaround 12010: the 2010: 2013: millions) 2011 De-Riskingwith for Oaktree NPAs/assets Tier Capital TCE Core Enhanced NIM 41) mil
Slide 6: First Quarter 2014 Highlights
First2014 Improved Asset Profitability Core Capital Year-over-year Strong NPAs/Assets Adversely OREO Inflows Provision Net Deposits, Government Brokered Deferred 1Q Risk Tier 5Leverage income interest charge-offs 1Quarter Based Deposits Quality Ratio pre-tax, inventory toCapital Tax Ratio certificat
Slide 7: Deposit Composition and Funding Opportunity
Opportunity Successful ($ $7,500 $5,800 $6,176 $6,000 448 470 $4,500 2,126 915 1,505 $3,000 $1,500 $- Non-interest bearing 6% Brokered 60% Interest 34% 4Q Retail Core Florida Focus We Reduced $3.1 Cost 0.50% 0.81% 0.97% 1.00% 1.34% 1.56% 1.50% 1.88% 2.00% 2009 Total 61) Total in2009 are 9% 2,077 1,1
Slide 8: Strong Loan Origination Rebuilding Franchise
Strong Rebuilding ($ $1,100 $1,016 $880 $802 $863 448 $660 $440 28 15 290 279 229 $220 1Q $- Continued Origination Decline Executing Continue Purchased outstanding Loan $15,000 $6,000 $9,000 6,942 $12,000 $11,957 20 301 3,596 $3,000 1,898 16 5,822 701 1,716 3,417 2010 Residential 2009 $0 Loans Const
Slide 9: Continuing Focus on Non-performing Assets
Continuing Proactively ($ Non-performing 1,790 $2,000 1,701 150 1,669 $1,600 1,639 1,551 1,506 163 176 $1,200 1,239 1,184 1,008 1,066 $800 95 10.0% 9.5% 5.7% 1Q Net $400 Construction $445 $500 186 $295 $200 101 $300 142 41 $100 118 54 38 63 39 $0 2010 NPAs 2013 Focus We Commercial Book Product Value
Slide 10: Income Statement Highlights
Focus Rebuild ($ GAAP Provision Impairment Equity Pre-tax Income Adjusted Net Non-interest branches 1Q in Pre-tax, 1) respectively. 92) the in2014 See FirstBanCorp Interest income millions, future. on reconciliation in Net net Statement tax pre-provision earnings Highlights results into Pre-tax Stra
Slide 11: Targeted Growth Opportunities
Opportunity Targeted Puerto Opportunities Market –Largest –banking risk/return income –FirstBank-branded Credit broaden revenue 16% SE originations Expansion demographic ACH –Continue and –Recently mortgages teams POS Virgin Solidify customer Deposits 1) 10Growth Source: Florida transaction Terminal
Slide 12: Path to Improved Profitability
Opportunity Path Net Provision Fee Operating Cash $600MM Replacement Additional Currently 1Q 2000-2008 Deposit Non-interest Market POS Annualized FDIC Long-term 1) 11 Represents 2014) Interest Income to Terminals, liquidity Cost improved share fee currently 133bps Reduction Expense Efficiency loan w
Slide 13: Key Investment Highlights
Key Continuing Total Improving Pre-tax Focus Healthy Tier Deferred Opportunity Strong Potential Increasing Long-term As 1) 2) 3) 12 Assuming See of1Investment NPAs March Common on reconciliation loan pre-provision capital Tax for stabilization market core potential de-risking down origination for NI
Slide 14: Appendix
Appendix i [i Jeancorp
Slide 15: Puerto Rico Government Exposure
Puerto As ($ –Exposure In We Investment Central Commonwealth Tax Operating Rental Time Government Federal Municipalities Public Total 14 inof addition, are &millions) asset Government Central Public Direct $ Transaction March Agencies Revenue Corporations: Corporations Income Rico prepared 257.6 Gov
Slide 16: Stock Trading Profile
Stock Trading Exchange: Share •Shares (as Market 1 208,967,883 of (6/13/14) TangibleMarch Price Profile (6/13/14): Book •Price Outstanding Capitalization Beneficial Entities United Wellington 1) 2) Common Symbol: $1.1 Yr. adjustments 15 Assuming Includes •Management 0.96x States(6/13/14): NYSE (3/31
Slide 17: Capital and Asset Quality Ratios
Capital Core Asset 17.4% 18.0% 16.2% 16.6% 16.0% 13.3% 12.4% 15.8% 10.7% 12.1% 12.0% 11.1% 10.0% 9.5% 5.9% 1Q 0.0% NPAs Strong 11.7%, 16 10franchise 9.8% 5.7% quality /2Q 11.3% 17.3% 17.1% 16.5% 16.0% 13.4% 12.4% 12.5% 10.7% 12.0% 10.0% capital Assets respectively. Position 10 9.6% 5.7% 3Q remains 1
Slide 18: Non-performing Assets
($ Collateral 2009 Residential Commercial Construction Consumer OREO Other Non-performing Total 1) 17 in millions) 2010 non-performing repossessed assets 69,304 & 2011 mortgage (1) mortgage & pledged finance 634,329 84,897 industrial 64,543 2012 Assets loans property leases with $assets loans assets
Slide 19: Quarterly Non-performing Loan Trends
Quarterly ($ 1Q Reclassification—1,175(1,175) 4Q Mortgage Beginning Additions Plus: Less: Non-performing Loans Ending 18 in2013 2014 millions) returned balance Residential Migration Mortgage to balance non-performing to $loans 172,796 161,441 accrual $ and Trends 161,441 142,002 Commercial charged-o
Slide 20: Quarterly Pre-tax, Pre-provision Income Reconciliation
(1) ($ Quarter 1Q Income liabilities (400)(708)(232)(355)(313) 5,096 related —1,879 of Less: expenses/valuation Add: Adjusted (2)non-performing (3) 19 inRepresents 2013 thousands) Write-off Provision Net Bulk Loss Secondary Credit National Branch Equity Unrealized National 3,198 to(loss) Ended Offer
Slide 21: Tangible Book Value Reconciliation
($ in2013 1Q Total Preferred Goodwill Purchased Core Common Tangible Deferred Adjusted 20 millions, deposit equity—GAAP 2Q Book equity: common book tax tangible equity shares (28) credit 2013 valuation intangible except (28) value Value (63) outstanding card book 3Q equity (28) per (63) Per $for rel
Slide 22: Puerto Rico Economic Overview
Puerto Rico Economic Overview
Slide 23: Economic Growth: Real GNP
Economic After 2014 Real (Revised 1.9% 0.5% 0.9% -3.8% -2.9% -1.7% -1.2% 0.1% 2005 Source: 22 GNP and 2006 Projection 0.3% a-3.6% prolonged Puerto as 2015. Growth 2007 0.2% of April Rico 2008 period 2014) Planning 2009 of economic 2010 Board, 2011Pcontraction, 2012 = Preliminary 2013pPuerto 2014 201
Slide 24: Economic Activity Index
Economic In GDB improvement. 4.0% 2.0% 3.0% 2.7% -1.0% 0.0% 1.2% 1.0% 1.4% -2.0% -4.0% -3.0% -5.0% -7.0% -6.0% -4.6% Jan 09— Source: 23 absence Apr 09— (as 1.5% –-6.2% -1.8% -2.8% -3.3% -4.3% Economic Government —Jul ofActivity of 09 April -2.3% -4.3% -5.8% official Oct2014) 09— Activity Jan Index -
Slide 25: Retail and Auto Sales
Increases Sales Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 February Apr-11 Retail Oct-10 (As 8.0% Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Source: 24 Apr-10 of6.0% 2014) and Sales of February Government Jul-10 Jan-11 inAuto 4.0% Jul-11 Auto consumer Sales 2014) 2.0% Sales Develo
Slide 26: Sales and Use Tax Collections
Sales (in CAGR: 2009 $993 $1,094 $1,107 $1,138 Source: 25 millions) 2010 andTreasury 3.4% Use 2011 $1,176 Tax 2012 Department. collections Revenues 2013 (2009-2013) have been consistently growing since 2009, showing a growth trend in retail sales in spite of the economic recession.
Slide 27: Personal Consumption Expenditures: US
Personal A US PCE 2002 -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Source: 26correlation – GDP 2003 Personal Bureau Consumption 2004 analysis Consumption of 2005 Economic of 2006 Expenditures personal 2007 Expenditure Analysis 2008 consumption - US 2009 vs. 2010 Gross expenditures 2011 Pro
Slide 28: Personal Consumption Expenditures: Puerto Rico
Personal In PR performance. PCE 2002 -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Source: 27 the – GDP Personal 2003 case Puerto Consumption 2004 of Puerto Consumption Rico 2005Planning Rico, 2006 Expenditures analysis 2007 Expenditure Board 2008 shows - PR 2009 vs. a marked 2010 Gros
Slide 29: Tourism and Hotel Occupancy
73.0% Tourism Hotel 71.5% 72.0% 72.2% 70.0% 70.2% 71.0% 68.5% 69.0% 68.0% 2005 65.0% 66.0% 67.0% Hotel 022,500 500 1,000 1,500 2,000 Occupancy Source: 28 005 200672.5% industry 71.4% 69.6% 68.3% 67.8% has Rates Registrations (inGovernment thousands) 2007 2008 shown a consistent Development 2009 2010
Slide 30: Labor Market Employment and Unemployment
12 Labor Employment Unemployment (4/30/2014 0% 0%Market Jan-10 Oct-09 Jul-09 Apr-09 Jan-09 .A Jan-11 Oct-10 Jul-10 Apr-11 Jan-12 Oct-11 Jul-11 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Jan-14 Oct-13 14pr-10 Apr-14 1% -0.5% -0.4% 0.0% 6% 5% 16 13 15 14 5%13 .9% 0% . –.14 .5% 3% seasonally indicators
Slide 31: Historical Puerto Rico Unemployment
Historical Puerto Unemployment 13.3%. 0(not 0% May-91 Sep-89 Jan-88 May-86 Sep-84 Jan-83 May-81 Sep-79 Jan-78 May-76 Sep-74 Jan-73 May-71 Sep-69 Jan-68 May-66 Sep-64 Jan-63 Sep-94 May-01 Sep-99 Jan-98 May-96 May-11 Sep-09 Jan-08 May-06 Sep-04 Jan-03 Jan-13 9% Source: 305 10 0% 3% seasonally 15 Rico’
Slide 32: Proposed Summary FY2015 Budget
Proposed Summary FY2015 $9,640 No financing Budgeted $- restructuring 2015 (in $9, Preliminary (In FY2014 Debt Increase Adopted *Source: 31Includes millions) built-in 525 service 2015 $9,640 $115 Office Proposed Budgeted in cost General or Expenses of expense unavoidable deficit Revenues Expenses de