32 slides from First Bancorp. New's investor presentation, May 6, 2014
Slide 1: First BanCorp Investor Presentation May 2014
Exhibit 99.1 First 2014 May BanCorp 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
Franchise Well Founded –Headquartered 2nd Florida The 146 A Eastern 15% 29% 12 Total As 1) 2) 3)~2,500 well FTE Eastern Data bank ofATM largest of diversified Assets—$12.8B Deposits—$10.0B March diversified = presence core as SE branches in FTE Full machines Overview of Caribbean financial Florida:
Slide 4: Franchise Overview: Well Positioned in Puerto Rico
Franchise Well ($ Puerto Portfolio Institutions 98765421Balance Total Strong Long-term Branch 1-mile (5) prepared 64 47 44 42 380% FirstBank Oriental Scotiabank Doral Citibank Banco BBU anches in millions) positioned $ branch Rico and market 63,335 40 overlap Bank Share Popular Santander Cooperativo
Slide 5: Franchise Overview: Turnaround Story
Franchise Our Written Agreement with and Order Lee FDIC of 2010 June October Feb-April July The Treasury exchanged TARP convertible preferred ($ NPAs De-Risking NPAs/assets Capital TCE Enhanced 41(1) ) Represents $99 inConsent & U.S. turnaround 2010: the 2010: 2013: millions) /2011 $1,711 with TA fo
Slide 6: Improved Profitability and Asset Quality
First Improved Profitability million. million No Asset Quality charge-offs 2013. Core •Deposits Capital Tier Leverage Adversely Year-over-year Strong NPAs/Assets OREO Provision Net Deposits, Deferred 1Q large 12014 Quarter •charge-offs income •Ratio Government Inflows Risk in relationship. pre-tax,
Slide 7: Successful Core Deposit Growth
Opportunity Successful Core ($ Brokered 2,077 448 2,126 1,108 1,505 915 $1,500 4Q 2009 $- Retail Cost 1Cor We 1.56% Cos 1.00% 0.81% Red -0.50% (60%) 1) .88% Total 1.50% Total in2009 its 60% Interest itive 76% 2009 of millions) Deposits(1) 2010 2,054 $4,500 1,136 Commercial in 1.34% 0.76% Deposits, 2
Slide 8: Rebuilding Loan Origination Capabilities
Strong Rebuilding ($ growth $1,100 $1,016 $880 $802 $863 448 265 $660 $440 28 290 279 229 $220 $- 1Q facilities; Loan Residential $15,000 $11,957 20 6,94 $12,000 ment $9,000 e$6,000 711,89 2009 $0 3,59 $3,000 )building in2013 lower Originations 517 421 284 262 ng millions) in 431 15 308 Originations
Slide 9: Proactively De-risking: Non-performing Assets
84) Continuing Proactively ($ Non-performing $2,000 NPLs 1,701 1,790 1,669 150 159 1,551 1,506 163 172 194 1,239 1,138 1,066 976 752 41 95 683 151 506 38 63 29 5.7% 1Q 2010 NPAs 2013 Product Commercial 54.3% Total We 1) 2) 3) Excludes in 72Q 80 35 39 17 continue Loans 1,562 1,410 1,308 176 213 $200
Slide 10: Focus on Rebuilding Earnings: 1Q 2014 Results
Focus Rebuild ($ GAAP Provision Impairment Equity Pre-tax Income Adjusted Non-interest branches 1Q in Net Pre-tax, Strong See 9FirstBanCorp the in2014 Interest income interest reconciliation millions, future. on in capital Net net Statement tax pre-provision earnings Highlights results into Pre-tax
Slide 11: Growth Opportunity: Targeted Market Share
Opportunity Targeted Puerto Opportunities Market banking —Growth risk/return income broaden revenue 15% SE originations Expansion -demographic and —Recently mortgages teams POS Virgin Solidify customer Deposits 1) 10Largest FirstBank-branded Continue Source: Florida transaction Terminals 3generating
Slide 12: Path to Net Income Improvement
Opportunity Path Net Cash Improvement Income $600MM Replacement Additional Provision Currently 2000-2008 Fee Deposit Non-interest Market POS Operating Annualized FDIC Long-term 1) 11 Represents Interest Income to Terminals, liquidity Cost improved share fee currently 133bps Reduction Expense Efficie
Slide 13: Key Investment Highlights
Key Total Pre-tax NIM Focus Tier Tangible Deferred Strong Potential Expected Increasing Opportunity As 1) 2) 3) 12 Assuming See of1Investment expanded NPAs March Common remains on reconciliation loan pre-provision Book Tax for stabilization reduction benefits market down origination for NIM 31, 100%
Slide 14: Appendix
Appendix f ie eancorp
Slide 15: Puerto Rico Government Exposure
Puerto As ($ 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 Gove
Slide 16: Stock Profile and Trading
Stock Trading Exchange: Share Shares (as 1Market (5/5/14): Book •Price Tangible Beneficial Entities United Wellington Treasury (2) Percent 41,851,067 Class Amount 41,851,066 20,966,340 13,210,659 1) 2) Common subject 208,967,883 $1.1 0.98x 0.68x Yr. Assuming Includes ofAverage (5/5/14) (3/31/14): Ma
Slide 17: Capital Position and Asset Quality
Capital Core Asset 17.4% 16.2% 10.7% 12.0% 1Q 0.0% NPAs Strong 16 10franchise quality /2Q 17.3% 16.5% 12.5% 12.0% capital Assets Position 10 3Q remains 17.5% 16.2% 12.7% 11.1% position: Total isand 10 strong Capital 4Q Asset 11.9% 17.8% 16.2% 12.6% our Total 10number Quality 1Q 11.7% Tier 17.4% 16.0
Slide 18: Non-performing Assets by Category
($ 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 $assets loans assets
Slide 19: Quarterly Non-performing Loan Migration Trends
Quarterly ($ 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: Adjusted Pre-tax, Pre-provision Income Reconciliation
($ non-performing Quarter 1Q Income liabilities (400)(708)(232)(355)(313) 5,096 related —1,879 of Less: expenses/valuation Add: Adjusted (1) (2) (3) 19 inRepresents Offering 2013 thousands) Write-off Provision Net Bulk Loss Secondary Credit National Branch Equity Unrealized National 3,198 to(loss) E
Slide 21: Tangible Book Value Reconciliation
($ Assuming 1Q Total Preferred Purchased Goodwill(28)(28)(28)(28)(28) Core Common Tangible Deferred Adjusted 1) 20 in2013 millions, deposit equity—GAAP 2Q Book equity: common book tax tangible equity(63)(63)(63)(63)(57) shares credit 2013 valuation intangible(9)(8)(8)(7)(7) 100% except value Value o
Slide 22: Puerto Rico Economic Overview
Puerto Rico Economic Overview
Slide 23: Economic Growth Projections
Economic After 2014 Real (Revised 1.9% -3.6% -2.9% -1.7% -1.2% 2005 Source: 22 GNP and 2006 Projection a-3.8% prolonged Puerto as 2015. Growth 2007 of April Rico 0.9% 2008 period 2014) Planning 2009 0.5% of economic 2010 0.3% Board, 2011 0.2%Pcontraction, 2012 =0.1% Preliminary 2013pPuerto 2014 2015
Slide 24: Economic Activity Index
Economic In GDB improvement. 2.0% 3.0% 2.7% 4.0% -1.0% -0.8% 0.0% 1.2% 1.0% -2.0% -4.0% -3.4% -3.0% -5.0% -5.8% -6.0% Jan-09 -7.0% Sep-13 Source: 23 absence 1.5% –-6.2% -1.8% -2.8% -3.3% -4.3% Mar-09 Nov-13 Economic Government Activity of 1.4% -2.3% -4.3% official May-09 Jan-14 Activity Index -2.5%
Slide 25: Retail Auto Sales Increases
Increases Retail (As 8.0% 6.0% 89,745 4.0% 0.0% 2.0% Jan-09 -6.0% -4.0% -2.0% Source: 24 ofAnnual 100,790 76,477 and Sales January2014) May-09 91,042 Government inAuto Auto consumer growth 100,559 Sep-09 Sales Sales Development rate: behavior Jan-10 +6%May-10 indicators BankSep-10 for show Puerto Ja
Slide 26: Retail Sales and Use Tax Collections
Sales (in CAGR: 2009 $993 Source: 25 millions) 2010 andTreasury 3.4% Use 2011 $1,176 Tax 2012 Department. collections Revenues $1,138 2013 $1,107 (2009-2013) have been $1,094 consistently growing since 2009, showing a growth trend in retail sales in spite of the economic recession.
Slide 27: Personal Consumption Expenditures in the US
Personal A US PCE 5.0% 2002 Source: 26correlation – GDP 2003 Personal 4.0% Bureau Consumption 2004 3.0% analysis Consumption of 2005 2.0% Economic of 2006 1.0% Expenditures—US personal 2007 Expenditure 0.0% Analysis 2008 consumption -1.0% 2009 -2.0% vs. 2010 Gross expenditures -3.0% 2011 Product -4.
Slide 28: Personal Consumption Expenditures in Puerto Rico
Personal In PR performance. PCE 5.0% 2002 Source: 27 the – GDP Personal 2003 4.0% case Puerto Consumption 2004 of 3.0% Puerto Consumption Rico 2005 2.0%Planning Rico, 2006 1.0% Expenditures—PR analysis 2007 Expenditure 0.0% Board 2008 -1.0% shows 2009 -2.0% vs. a marked 2010 Gross -3.0% 2011 Product
Slide 29: Tourism: Hotel Occupancy and Registrations
Tourism Hotel 73.0% 72.5% 2,000 71.5%71.4% 72.0% 70.0% 70.2% 67.8% 68.3% 68.5% 69.0% 1,500 500 67.0% 65.0% 2005 Source: 28 66.0% 2006 Occupancy 71.0% 2,500 72.2% 69.6% 1,000 0Government industry 2007 (in thousands) 68.0% 2008 has Rates Development shown 2009 Hotel 2010 a Registrations consistent 201
Slide 30: Labor Market Employment and Unemployment
Labor Market Employment Unemployment (3/31/2014 18.0% -0.4% 16.5% 17.0% 16.0% -1.0% 15.6% 15.0% -1.7% 14.3% -2.5% -3.0% 12.0% -3.6% Jan-09 Sep-11 Source: 29 16.9% 14.0% -2.9% 0.0% -1.0% -1.1% 15.5% -2.0% 14.7% -3.7% Apr-09 Jan-12 Bureau – 13.0% seasonally indicators -0.5% -2.2% -4.0% -1.5% May-12 Ju
Slide 31: Historical Puerto Rico Unemployment Rate
Historical Puerto Unemployment 13.1%. (not 30.0% Average 10 20 Jan-63 0.0% 5.0% 10.0% 15.0% 20.0% 08 Source: 30 year Sep-09 seasonally Actual Rico’s Sep-64 average: Government since1963: Unemployment May-11 unemployment 14.1% May-66 adjusted) Rate 13.1% Jan-13 14.6% Development since Jan-68 Rate 196
Slide 32: Proposed Summary Budget FY2015
Proposed Summary FY2015 (in $9,640 No Budgeted $- $652 imated 31 millions) built-in $115 nses $9,640 Proposed General Expenses of$575 deficit FY proposed 2015 $1,357 Fund financing Budget FY-budget Budget ,640 Gapor Budgeted pending debt for FY restructuring legislative 2015 Revenues approval FY-201