First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (February 2009)
36 slides from First Bancorp. New's investor presentation, Feb 18, 2009
Slide 1: Investor Presentation February 18th, 2009
1 Investor Presentation February 18th, 2009 [NYSE: FBP]
Slide 2: Agenda
2 Business Overview & Highlights Asset Quality Financial Performance & Capital Treasury & Liquidity Stock Performance Future Focus Disclaimer Agenda
Slide 3: Business Overview & Highlights
3 Business Overview & Highlights
Slide 4: Founded in 1948, headquartered in San Juan, PR
4 Founded in 1948 Headquartered in San Juan, PR A unique, well diversified operation with over 560,000 retail and commercial customers 2nd largest financial holding company in Puerto Rico with total assets of $19.5 billion as of December 31st, 2008 Leading Bank in the Eastern Caribbean Region* Limit
Slide 5: Celebrating years of growth and accomplishments
5 Celebrating 60 years of growth and accomplishments It is with great pride that First BanCorp celebrates its 60th Anniversary. The Corporation is most grateful and thankful for the dedication of its employees and the loyalty of its customers over these past years. First Bancorp now has assets surpa
Slide 6: A well diversified operation with multiple businesses across several markets
6 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 7: Outperformed the industry and increased or sustained share in our primary market
7 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 a
Slide 8: A well diversified operation: assets by line of business and geography
8 A well diversified operation with multiple businesses across several markets Assets by Line of Business As of December 31st, 2008 Limited exposure to US residential mortgage market with only 3.3% of total loan portfolio Assets by Geography Consumer & Residential 28%, $451 Construction & Land 20%,
Slide 9: Successfully deploying our One Stop Shop strategy
9 Successfully deploying our One Stop Shop strategy Leveraging the reduced competitive environment Growing core deposits in all segments 2008 vs. 2007 Total Deposits (net of brokered CDs) - $4,628 million +13% +62% +14% ($ in millions) +28% Successful core deposit growth
Slide 10: Corporation is actively managing loan production opportunities
10 Corporation is actively managing loan production opportunities * Includes the purchase of $218 million auto loan portfolio from Chrysler Financial Services Caribbean Total Loan Production - $4,240 million Targeted loan production ($ in millions) *
Slide 11: Franchise consistently demonstrates ability to grow in selected segments
11 Franchise consistently demonstrates ability to grow in selected segments *Loans to local Financial Institutions; **Includes Finance Leases Total Loan Portfolio - $13,088 million Consistent loan growth in selected segments 2008 vs. 2007 - -9% +10% +16% +3% ($ in millions)
Slide 12: Florida construction portfolio continues to reduce
12 (1) United States loan portfolio includes approximately $197.4 million of condo-conversion loans. Florida construction portfolio continues to reduce Loan portfolio by geography and category ($000)
Slide 13: Management focus and strategy by business line
13 Wholesale Banking Retail Banking Consumer Lending Mortgage Lending Insurance Solidify leadership while capitalizing on market opportunities with strong emphasis on asset quality Grow core deposits Offer additional fee based services Increase penetration in middle market Improve loan pricing Manag
Slide 14: Asset Quality
14 Asset Quality
Slide 15: Proactively managing asset quality during a deteriorating economic cycle
15 Proactively managing asset quality during a deteriorating economic cycle Non-Performing Assets ($ in millions) Continue to reinforce workout & loss mitigation programs to manage increases in construction, commercial and residential loans Historically, the Corporation has experienced a low rate of
Slide 16: Allowance to Loan & Lease Losses Ratios
16 Allowance to Loan & Lease Losses Ratios The allowance to total loans showing an increasing trend as the Corporation reviews reserve policies and as economic environmental factors change Proactively managing asset quality
Slide 17: Net charge-offs have remained relatively stable
17 Net charge-offs have remained relatively stable, since early 2007, within these recessionary conditions Net charge-offs annualized to average loans outstanding (during the period)
Slide 18: Non-performing assets by geography
18 Non-performing assets by geography (in thousands) Puerto Rico Virgin Islands United States
Slide 19: Financial Performance & Capital
19 Financial Performance & Capital
Slide 20: Improved profitability while strengthening provision
20 Improved profitability while strengthening provision *Private placement to BNS % Change (in thousands)
Slide 21: Improving key financial metrics
21 Improving 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
Slide 22: Managing a strong capital position
22 Managing a strong capital position * Not applicable to First Bancorp Approximately $385 million in excess of regulatory total capital well capitalized requirement.
Slide 23: Managing a strong capital position (pro-forma)
23 Managing a strong capital position On an estimated pro-forma basis, approximately $775 million and $1.1 billion of total capital and Tier I capital, respectively, in excess of the total capital and Tier I capital well capitalized requirements. * Not applicable to First Bancorp
Slide 24: Treasury & Liquidity
24 Treasury & Liquidity
Slide 25: High grade investment portfolio
25 High grade investment portfolio Highly liquid securities portfolio 95% of portfolio AAA-rated No exposure to sub-prime mortgage and CDOs Proactively managing portfolio prepayment risk Easily pledgeable for financing Total Investment Portfolio - $5,709 million As of December 31, 2008 By Rating Dis
Slide 26: Strong sources of borrowings
26 Strong sources of borrowings * For the year 2008 Average Cost of Funds on Interest-bearing Liabilities: 3.76%*
Slide 27: Liquidity
27 Liquidity * Information for FirstBank Puerto Rico including FirstBank Overseas Corp as of December 31,2008 (excludes liquidity of FirstBank Florida) 1. Surplus: (liquid assets - short-term liabilities) + secured line of credit; 2. Subject to 6% haircut; 3. Subject to 25% haircut; 4. Subject to 50
Slide 28: Stock Performance
28 Stock Performance
Slide 29: Stock performance: 1YR % change for 2008
29 Stock performance 1YR % Change for 2008 * Full service commercial banks in PR Source: Bloomberg
Slide 30: Stock performance: YTD % change as of 2/17/2009
30 Stock performance YTD % Change as of 2/17/2009 * Full service commercial banks in PR Source: Bloomberg
Slide 31: Stock performance: market price to book value ratio
31 Stock performance Source: Bloomberg, Quarterly information provided by FBP Market Price to Book Value Ratio
Slide 32: Future Focus
32 Future Focus
Slide 33: Enhancing shareholder value through strategic growth
33 Enhancing shareholder value through strategic growth Asset quality improvement Managing revenue and expenses through formal business performance improvement project Internal target of $35 MM in additional benefits for 2009-2010 Capital optimization including proactive evaluation of acquisition op
Slide 34: Disclaimer
34 Disclaimer
Slide 35: Forward-looking statements disclaimer
35 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 meaning of S
Slide 36: Contact Information
36 Contact Information First BanCorp [NYSE: FBP] Alan Cohen Senior Vice President, Marketing and Public Relations Office (787) 729-8256 alan.cohen@firstbankpr.com
First Bancorp — Investor Presentation (February 2009) on 6ix