Popular, Inc. · NASDAQ:BPOP
Popular — Merger or Acquisition (March 2015)
10 slides from Popular's merger presentation, Mar 2, 2015
Slide 1: Investor Presentation: Acquisition of Certain Assets and Assumption of Deposits of Doral Bank
Exhibit 99.1 Investor Presentation Acquisition of Certain Assets and Assumption of Deposits of Doral Bank March 2, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information contained in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our estimate of the accretive nature of the transaction, the additional fee income from the transaction,
Slide 3: Transaction Overview
Transaction Overview • Popularacquired,in alliancewith other bidders,certain assetsand depositsfrom the FDIC, as receiver for Doral Bank • Popular’s bid was chosen to purchase approximately $5 billion of GSE mortgage servicing rights Overview (“MSRs”) subject to a servicing transfer agreement accept
Slide 4: Transaction Rationale
Transaction Rationale Enhances Popular’s Franchise • Strengthens existing Puerto Rico franchise • Continues expansion in New York and adds attractive commercial platform Financially Attractive • Effective deployment of capital • Significant cost saving opportunities • Accretive to earnings Strategic
Slide 5: Transaction Structure
Transaction Structure • BPPR served as the lead bidder in alliance with its affiliate PCB, FirstBank Puerto Rico, an affiliate of J.C. Flowers III, L.P., and Centennial Bank • Transactions with Popular’s alliance partners closed concurrently with the primary transaction; no seller financing offered
Slide 6: Acquired Assets and Deposits
Acquired Assets and Deposits Loans Deposits (1) Branches Other C&I & CRE 3% Demand 11% 16% San Juan Aguadilla Savings, Time Carolina NOW and 57% Mayaguez Humacao Mortgage MMDA Ponce Guayama 85% 27% Total:$848 million Total:$1,043million Mortgage Savings, NOW Demand 2% and MMDA 10% C&I 16% 27% Constr
Slide 7: Key Financial Metrics
Key Financial Metrics Loan & Deposit Detail Transaction Pricing - ($ in millions) Balance W.A. Coupon / Rate Premium / (Discount)%- U.S. Mainland Loans $ 931 5.6 % 0.6)% Puerto Rico Loans 848 6.0 % (4.7)% Total Loans $ 1,779 5.7 % (1.9)% 1.1 U.S. Mainland Branch Deposits $ 1,277 1.15 % 2.0 % Puerto
Slide 8: Capital Impact
Capital Impact • Capital impact subject to purchase accounting and finalization of fair market value analysis • Will record an estimate of fair value in Q1 2015 with final valuations expected later in 2015 • Currently anticipate creation of $50-100 million of goodwill upon completion of fair market
Slide 9: Popular Franchise Strengthened
Popular Franchise Strengthened • Efficient deployment of capital which is accretive to earnings • Acquisition grows strategically important New York business through the addition of an attractive commercial franchise • In-market expansion provides significant cost savings opportunities • No non-perf
Slide 10: Investor Presentation: Acquisition of Certain Assets and Assumption of Deposits of Doral Bank
Investor Presentation Acquisition of Certain Assets and Assumption of Deposits of Doral Bank