35 slides from First Bancorp. New's earnings presentation, Jun 4, 2009
Slide 1: Corporate Overview & Financial Highlights 1st Quarter 2009
1 Corporate Overview & Financial Highlights 1ST Quarter 2009 June 3, 2009
Slide 2: Agenda
2 Puerto Rico Economy Summary & Business Overview Asset Quality Financial Performance & Capital Treasury & Liquidity Future Focus Agenda
Slide 3: Puerto Rico Economy
Tite eoncor Puerto Rico Economy
Slide 4: 2009 Economic summary
4 2009 Economic summary The current recession, in its fourth year, is already the worst in the island's history. The unemployment rate has risen steadily in recent months, to 14.1% in February of 2009. - Approximately 8,000 government workers received notice of dismissal at the end of May 2009. Cont
Slide 5: 2009 Economic summary: Employment
5 2009 Economic summary Employment (000's)
Slide 6: Summary & Business Overview
6 Summary & Business Overview
Slide 7: Founded in 1948, headquartered in San Juan, PR
Founded in 1948 Headquartered in San Juan, PR A unique, well diversified operation with over 600,000 retail and commercial customers 2nd largest financial holding company in Puerto Rico with total assets of $19.7 billion as of March 31, 2009 Leading bank in the United States and British Virgin Islan
Slide 8: A well diversified operation with multiple businesses across several markets
8 A well diversified operation with multiple businesses across several markets *Provided through alliance with UBS Puerto Rico 194 branches, stand-alone offices and in-branch service centers
Slide 9: Assets by line of business and geography
9 A well diversified operation with multiple businesses across several markets Assets by Line of Business As of March 31, 2009 Limited exposure to US residential mortgage market with only 3.0% of total loan portfolio Assets by Geography Consumer & Residential 28%, $445 Construction & Land 19%, $308
Slide 10: Outperformed the industry and increased or sustained share in our primary market
10 Outperformed the industry and increased or sustained share in our primary market 1. Source: FDIC; FirstBank has 48 full-service bank branches; 2. Net of Brokered Certificates of deposit; 3. Includes Commercial, Agricultural and Industrial Loans; 4. Through alliance with Bank of America fee based
Slide 11: Successful core deposit growth
11 1Q2009 vs. 2008 Total Deposits (net of brokered CDs) - $4,737 million 13% - -18% - -6% ($ in millions) 10% Successful core deposit growth Continue our focus on core deposit growth and the successful deployment of our One Stop Shop strategy Total deposits (net of brokered CDs) grew 2.35% in first
Slide 12: Actively managing loan production opportunities
12 Corporation is actively managing loan production opportunities * Includes the $500 million loan facility to the Puerto Rico Sales & Use Tax Financing Corp. Total Loan Production - $1,267 million Targeted loan production ($ in millions) 27%
Slide 13: Total loan portfolio grew 3.4% in the first quarter 2009
13 Total loan portfolio grew 3.4% in the first quarter 2009 Franchise consistently demonstrates ability to grow in selected segments *Loans to local Financial Institutions; **Includes Finance Leases Total Loan Portfolio - $13,533 million Consistent loan growth in selected segments 1Q2009 vs. 2008 -
Slide 14: Diversified loan portfolio
14 (1) United States loan portfolio includes approximately $197.8 million of condo-conversion loans Diversified loan portfolio ($ in millions) Loan portfolio by geography and category
Slide 15: Management Focus Strategy
15 Management Focus Strategy 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 Improve loan pricing & fees Offer
Slide 16: Asset Quality
Tite oncor Asset Quality
Slide 17: Managing asset quality during a deteriorating economic cycle
17 Managing asset quality during a deteriorating economic cycle Non-Performing Assets ($ in millions) Net Charge-offs to Average Loans Continue to reinforce workout & loss mitigation programs to manage increases in construction, commercial and residential non-performing loans • The Corporation provi
Slide 18: Non-performing assets by geography
Non-performing assets by geography (in thousands) Managing asset quality
Slide 19: Allowance to loan & lease losses ratios
19 Allowance to Loan & Lease Losses Ratios The allowance to total loans showing an increasing trend as the Corporation reviews and adjust its reserve policies and as economic environmental factors change Managing asset quality
Slide 20: Provision to net charge-offs
20 Managing asset quality Provision to Net Charge-offs
Slide 21: Net charge-offs currently below industry peers
21 Though net charge-offs have increased, currently below industry peers Managing asset quality Net Charge-offs annualized to Average Loans Outstanding (during the period)
Slide 22: Financial Performance & Capital
22 Financial Performance & Capital
Slide 23: Continued profitability while strengthening provision
Continued profitability while strengthening provision *Private placement to BNS (in thousands)
Slide 24: Key financial metrics
24 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 *Common dividends
Slide 25: Managing a strong capital position
25 Managing a strong capital position * Not applicable to First BanCorp Approximately $748 million in excess of regulatory total capital well capitalized requirement Tangible common equity ratio of 5.11
Slide 26: Treasury & Liquidity
Tie once Treasury & Liquidity
Slide 27: High grade investment portfolio
27 High grade investment portfolio Highly liquid securities portfolio 94% of portfolio AAA-rated No exposure to sub-prime mortgage and CDOs Proactively managing portfolio prepayment risk Easily pledgeable for financing Total Investment Portfolio - $5,506million By Rating Distribution 27 ($ in millio
Slide 28: Strong sources of borrowings
28 Strong sources of borrowings * As of March 31, 2009 Average Cost of Funds on Interest-bearing Liabilities: 3.39%*
Slide 29: Maintaining high liquidity
29 Maintaining high liquidity * Information for FirstBank Puerto Rico including FirstBank Overseas Corp as of March 31, 2009 (excludes liquidity of FirstBank Florida) 1. Surplus: (liquid assets - short-term liabilities) + secured line of credit; 2. Market Value, Subject to 6% haircut; 3. Subject to
Slide 30: Future Focus
Tite ence Future Focus
Slide 31: Enhancing shareholder value through strategic growth
31 Enhancing shareholder value through strategic growth Asset quality improvement Managing revenue and expenses through formal business performance improvement project Internal target of $50 MM in additional benefits for 2009-2010 Capital optimization including proactive evaluation of acquisition op
Slide 32: Disclaimer
Tite eencor Disclaimer
Slide 33: Disclaimer
33 Disclaimer This press release 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
Slide 34: Contact Information
34 Contact Information First BanCorp [NYSE: FBP] Alan Cohen Senior Vice President Marketing and Public Relations Office (787) 729-8256 alan.cohen@firstbankpr.com
Slide 35: Corporate Overview & Financial Highlights 1st Quarter
35 Corporate Overview & Financial Highlights 1ST Quarter 2009 June 3, 2009