20 slides from First Bancorp. New's investor presentation, May 21, 2012
Slide 1: Investor Presentation May 2012
Exhibit 99.1 Investor Presentation May 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 (63 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: Unique challenger to Puerto Rico's largest player
Franchise Overview Unique challenger to Puerto Rico’s largest player ($ in millions) 1 PuertoRicoTotalAssets PuertoRicoTotalLoans1 PuertoRicoDeposits,Netof Brokered1 Portfolio Market Portfolio Market Portfolio Institutions Institutions Institutions Market Share Balance Share Balance Share Balance 1
Slide 5: Building Franchise Value
Building Franchise Value Executing Strategic Plan Toward Goal to Return to 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 Franchis
Slide 6: Building Franchise Value: Targeted strategies for growth
Building Franchise Value Targeted strategies for growth Puerto Rico Market Share in Main Market 1 Opportunities for ongoing market share gains on selected Rank products based on fair share of market Assets 15% 85% 2 Largest opportunity on deposit products, electronic Personal Loans 8% 92% 4 banking
Slide 7: Successful core deposits growth over recent years
Building Franchise Value Successful core deposits growth over recent years ($ in millions) Deposits, Net of Brokered CDs Total Deposit Composition $6,176 $6,286 $6,500 $5,800 $5,108 $2,654 $2,781 $2,477 $2,381 $763 $915 $963 $774 $470 $481 $487 $448 $2,090 $2,126 $2,055 $1,505 $- 2009 2010 2011 Mar
Slide 8: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Strong Origination Capabilities ($ in millions) Asset Composition Loan Portfolio Repositioned the balance sheet during 2009-2011 as a capital preservation strategy Loan Originations Strong loan originations in core businesses, $569 MM during 1Q 2012 Implementing strat
Slide 9: Improved Risk Profile
Improved Risk Profile ($ in millions) Non-performing Assets Net Charge-offs 1 ReducedNPLsby 32%sincepeakin 1Q2010 Commercial Non-performing Loans 1 Reduced exposure to construction loans by 74% since peak, a Accumulated Net Carrying major driver of losses Book Value Reserves 2 Charge-offs Amount Sta
Slide 10: Focus on Rebuilding Earnings
Focus on Rebuilding Earnings Stable PTPP earnings with realizable opportunities for improvement ($ in millions, except per share results) Income Statement 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Net interest income, excluding valuations $ 101.6 $ 100.3 $ 96.8 $ 95.6 $ 106.5 Valuations 0.3 (1.7) (2.5
Slide 11: Focus on Rebuilding Earnings: Path to Profitability
Focus on Rebuilding Earnings Path to Profitability Executing on Key Profitability Improvement Opportunities Achieve additional reduction of NPAs and classified assets Continue to execute core deposit strategic plan Rebuild pre-tax pre-provision income Re-energizing loan production in key focus areas
Slide 12: Summary of Investment Opportunity
Summary of Investment Opportunity Strong and uniquely positioned franchise with strengthened capital base Stable pre-tax, pre-provision earnings with realizable opportunities for improvement Executing on our strategic plan – Continued improvements in asset quality – Core-deposit plan – Disciplined o
Slide 13: Exhibits
Exhibits Investor Presentation May 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(5/15/12): • $3.99 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 Despite the recent Moody’s downgrade of PR’s General Obligation Economic Activity Index continues to reflect stabilization with certain Bond and other associated credits, investors continued to show their improving trends confidence by purchasi
Slide 16: Economic Environment Continues to Stabilize
Economic Environment Continues to Stabilize 1 Floridasinglefamilymedianhomeprice Florida $400,000 Number of homes sold increased 8% in 2011 compared to $350,000 last year but average sales price dropped 3% to $131,700 $300,000 Decemberunemploymentrate2 was9.9%. It reflectsa $250,000 0.1 point decrea
Slide 17: Non-performing Assets
Non-performing Assets ($ in millions) Mar 2012 Dec 2011 % change Non-performing loans Residential mortgage $ 341.2 $ 338.2 0.9% Commercial mortgage 244.4 240.4 1.7% Commercial & Industrial 263.6 270.2 -2.4% Construction 231.1 254.8 -9.3% Consumer Loans & Finance Leases 39.1 39.6 -1.3% Total non-perf
Slide 18: Venture Accounting
Venture Accounting Loans purchased by the Venture are stated in the financial statements under the fair value option, where fair valueis determinedby discountingthe projectedcashflowsat a discountrate that reflectsthe expected timing of collection of such cash flows FirstBank accounts for the Ventur
Slide 19: Adjusted Pre-tax, Pre-provision Income Reconciliation
Adjusted Pre-tax, Pre-provision Income Reconciliation ($ in thousands) Quarter Ended 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Loss before income taxes $ (11,049) $ (14,600) $ (21,158) $ (12,318) $ (24,834) Add: Provision for loan and lease losses 36,197 41,987 46,446 59,184 88,732 Less: Net (gain) lo
Slide 20: Reconciliation of the (Loss) Earnings per Common Share
Reconciliation of the (Loss) Earnings per Common Share ($ in thousands, except per share information) 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Net loss $ (13,182) $ (14,842) $ (24,046) $ (14,924) $ (28,420) Cumulative convertible preferred stock dividend (Series G) - (997) (5,302) (5,302) (5,302) Pre