21 slides from First Bancorp. New's earnings presentation, May 5, 2010
Slide 1: First Quarter 2010 Earnings Review
First Quarter 2010 Earnings Review May 05, 2010 [NYSE: FBP]
Slide 2: Economic Environment Continues to Be Challenging
Economic Environment Continues to Be Challenging Puerto Rico GDB Economic Activity Index (GDB-EAI) reflected a month-over-month decline of 0.6% while experiencing a 6.8% year-over-year decline, mostly due to a marked decrease in cement sales and seasonal employment changes. Changes in the components
Slide 3: Economic Environment Continues to Be Challenging: Florida and Virgin Islands
Florida The real GDP growth estimate for the 2009 year was revised downward to -2.7% Existing home sales rose 24% in March 2010 with a total of 16,294 homes sold statewide vs. 13,090 homes sold in March 2009. The median sales price for existing homes was $137,000 vs. $141,300 in March 2009, for a 3%
Slide 4: Financial Performance 1Q 2010 vs. 4Q 2009
Financial Performance 1Q 2010 vs. 4Q 2009 | 4 Net loss totaled $107.0MM, or $(1.22) per diluted share, compared to a net loss of $53.2MM, or $(0.64) per diluted share for the 4Q09 Decrease of $20.4MM in net interest income mainly due to the decline in average-earning assets, resulting from the Corpo
Slide 5: Income Statement
Income Statement ($ in MM's except for per share results) | 5 * Level of pre-tax earnings adjusted to exclude the provision for loan & lease losses & certain other items
Slide 6: Capital Position
Capital Position The Corporation is well-capitalized, with approximately $437MM and $800MM of total capital and Tier 1 capital as of March 31, 2010, respectively | 6
Slide 7: Capital Raise Update
Capital Raise Update | 7 Retained Sandler O'Neill and UBS to lead capital raise initiatives already in process: Capital raise of $500MM through the issuance of common shares in a private placement process Rights offering to existing shareholders Exchange offer to holders of non-cumulative preferred
Slide 8: Diversified Operation with Multiple Businesses Across Several Markets
Diversified Operation with Multiple Businesses Across Several Markets ($ in MM's) | 8 Loans are net of reserves Assets by Line of Business Total assets decreased by $777MM to $18.9B as of March 31, 2010, from $19.6B as of December 31, 2009 Total gross loans decreased by $655MM during the first quart
Slide 9: Successful Core Deposits Growth Over Recent Years
Successful Core Deposits Growth Over Recent Years ($ in MM's) * Net of Brokered CD's | 9 Successful execution of our core deposit growth strategy resulted in an increase of $418MM, or 8%, in total deposits net of brokered CD's Cost of funds of interest bearing deposits, net of brokered CD's, decreas
Slide 10: Limited Growth in Loan Portfolio
| 10 Total Loan Portfolio * Loans to other Financial Institutions Limited Growth in Loan Portfolio ($ in MM's) Loan portfolio decreased by $655MM, mainly driven by repayment of a $500MM credit facility extended to the Puerto Rico Government When excluding government, total loan production totaled $5
Slide 11: Over 80% of Total Loans Are in Puerto Rico
Over 80% of total loans are in Puerto Rico, the Corporation's main market Construction portfolio in Florida down to $278MM from $981MM in 2Q06 when construction strategy was halted As of March 31, 2010 Loan Portfolio by Geography & Category ($ in MM's) | 11
Slide 12: Construction Loan Portfolio by Geography
For purposes of the above table, high-rise portfolio is composed of buildings with more than 7 stories, mainly composed of three projects that represent approximately 87% of the Corporation's total outstanding high-rise residential construction loan portfolio in Puerto Rico. Mid-rise relates to buil
Slide 13: Reducing Non-Performing Assets is Our #1 Priority
| 13 Level of non-performing loans increased at a much lower rate than the increases observed during most of 2009. In last two quarters NPA growth averaged 3% compared to an average of 49% in the previous two quarters 18% (46 units) of REO inventory in Puerto Rico and five units in Florida were sold
Slide 14: Management Towards Improvement of Asset Quality
| 14 Management Towards Improvement of Asset Quality ($ in MM's) As of March 31, 2010 approximately $497MM or 30% of total non-performing loans have been charged-off to their net realizable value Continue to provide restructuring alternatives to mitigate losses and revising terms to enable borrowers
Slide 15: Provision and Reserve for Loan Losses
| 15 Increase in provision is mainly related to the sustained deterioration of economic conditions that have caused increases in reserve factors Provision to Net Charge-offs Allowance for Loans & Leases Losses Provision and Reserve for Loan Losses ($ in MM's)
Slide 16: High Grade Investment Portfolio
| 16 By Rating Distribution: As of March 31, 2010 Highly liquid securities portfolio 94% of portfolio AAA-rated No liquidity issues due to sub-prime mortgage and CDOs High Grade Investment Portfolio ($ in 000's)
Slide 17: Sources of Borrowings
Sources of Borrowings | 17 Borrowings totaled $17.2B Total brokered CDs decreased from $7.6B at year-end 2009 to $7.4B as of March 31, 2010 Overall average cost of funds remained stable during the 1Q10 to 2.47% from 2.46% in 4Q09 Higher costs on other borrowings, including repos and advances, was po
Slide 18: Maintaining High Liquidity
Maintaining High Liquidity ($ in 000's) | 18 The Corporation further increased its liquidity levels due to potential disruptions from the consolidation of the Puerto Rico banking industry FHLB NY line is expected to grow in line with increases in mortgage originations Advances from the Federal Reser
Slide 19: 2010 Corporate Focus
| 19 2010 Corporate Focus Capital Capital improvement through restructuring initiatives, selected deleverage and capital raise efforts Risk Management Continued efforts focused on improving asset quality Targeted deleverage to reduce risk exposure Risk based pricing models for wholesale products Bus
Slide 20: Disclaimer
| 20 Disclaimer This presentation 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 21: First BanCorp
First BanCorp [NYSE: FBP] Alan Cohen Senior Vice President Marketing and Public Relations Office (787) 729-8256 alan.cohen@firstbankpr.com