26 slides from First Bancorp. New's earnings presentation, Nov 17, 2009
Slide 1: Third Quarter 2009 Earnings Review
Third Quarter 2009 Earnings Review November 2009 [NYSE: FBP]
Slide 2: Puerto Rico Economy Should Turnaround in 2010
Puerto Rico GDP & Yearly % Growth 2000 - 2010 Puerto Rico Economy Should Turnaround in 2010 Sources: (1) GDB Puerto Rico - www.bgfpr.com *Index is subject to monthly revisions. (2) PR Planning Board - www.jp.gobierno.pr .. Real GDP GDP Growth 2 GDB Economic Activity Index (EAI) According to November
Slide 3: Challenging Employment Environment in Puerto Rico Persists
(CHART) Challenging Employment Environment in Puerto Rico Persists Unemployment Rate (CHART) Accumulated Bankruptcies (Jan-Sep) Unemployment rate may increase further in early 2010 due to planned government layoffs: Nov 2009: 2,046 Jan 2010: 12,321 Largest sectors of the economy have lost jobs - - m
Slide 4: Florida & Virgin Islands Economies
Florida Showing signs the recession is easing: The S&P/Case-Shiller home price index showed South Florida home prices posted a monthly gain of 1.3% in July 2009, as strong sales and shrinking inventory helped to firm up prices Consumer confidence rose 3 points in September 2009 to 74 Virgin Islands
Slide 5: Third Quarter 2009 Highlights
Second Quarter 2009 Highlights Net loss of $165.2 million, which includes a $152.2 million non-cash charge to increase the deferred tax asset valuation allowance, vs. net loss of $78.7 million in 2Q09 Increase in net interest income, excluding fair value adjustments, of $3.6 million compared to 2Q09
Slide 6: Financial Results
(in thousands, except for per share results) * In July 2009, the Corporation announced the suspension of dividends on common and preferred stock Financial Results 6
Slide 7: A Diversified Operation With Multiple Businesses Across Several Markets
A Diversified Operation With Multiple Businesses Across Several Markets As of September 30, 2009 Assets by Geography (CHART) Assets by Line of Business 3% 4% 7 6% ($ in millions) Total Assets - $20,081 million
Slide 8: Growing Core Deposits
(CHART) Growing Core Deposits (CHART) Continue our focus on core deposit growth and the successful deployment of our One Stop Shop strategy Increase of 2.28 points to 10.5%** in market share of total deposits, net of brokered, in the Puerto Rico market Total deposits, excluding brokered CDs, increas
Slide 9: Managing Loan Production
(CHART) 9 *3Q09 Includes the $500 million loan facility to the Puerto Rico Sales & Use Tax Financing Corp. and $189 million TRANS **3Q08 increase in consumer portfolio driven by purchase of $218 million Chrysler Financial portfolio Managing Loan Production Total Loan Production - $1,448 million ($ i
Slide 10: Managing Loan Portfolio
(CHART) Total Loan Portfolio - $13,756 million ($ in millions) * Loans to local Financial Institution **Includes Finance Leases Market Shares Source: Commissioner of Financial Institutions, June 30, 2009 Managing Loan Portfolio Reduction in Construction, Residential and Consumer loan portfolios from
Slide 11: Diversified Loan Portfolio by Geography and Category
Loan Portfolio by Geography and Category ($ in millions) Diversified Loan Portfolio As of September 30, 2009 Over 80% of total loans are in Puerto Rico, the Corporation's main market Construction portfolio in Florida now $406 million,. down from $533 million in 3Q08 Loans to local financial institut
Slide 12: Detailed Breakdown of Construction Portfolio
For purposes of the above table, high-rise portfolio is composed of buildings with more than 7 stories, mainly composed of two projects that account for approximately 72% of the Corporation's total outstanding high-rise residential construction loan portfolio in Puerto Rico. Mid-rise relates to buil
Slide 13: Management Towards Improvement of Asset Quality: Non-Performing Assets
Total Non-Performing Assets of $1.684 billion $665.6 million in NPL's for which interest income is recognized on a cost-recovery method (interest collections applied to principal) $873.2 million in NPL's for which interest income is recognized on a cash basis (interest through earnings when collecte
Slide 14: Non-Performing Assets by Geography
(1) Collateral pledge with Lehman Brothers Special Financing, Inc. Non-Performing Assets by Geography ($ in thousands) Reducing the high level of NPA is the #1 priority for the Corporation's Management team 14 Management Towards Improvement of Asset Quality
Slide 15: Non-performing Loans to Total Loans: Puerto Rico
15 Management Towards Improvement of Asset Quality (CHART) 13.15% 6.07% 25.96% 2.62% 8.96% % Non-performing/loan portfolio * As of September 30, 2009 *Includes finance leases Non-performing Loans to Total Loans Puerto Rico ($ in thousands)
Slide 16: Non-performing Loans to Total Loans: United States
16 Management Towards Improvement of Asset Quality (CHART) 17.22% 12.42% 87.52% 3.11% 35.70% % Non-performing/loan portfolio * Non-performing Loans to Total Loans United States ($ in thousands) As of September 30, 2009 *Includes finance leases
Slide 17: Non-performing Loans to Total Loans: Virgin Islands
17 Management Towards Improvement of Asset Quality (CHART) 1.58% 6.51% 1.41% 3.22% 3.13% % Non-performing/loan portfolio * Non-performing Loans to Total Loans Virgin Islands ($ in thousands) As of September 30, 2009 *Includes finance leases
Slide 18: Allowance to Loan & Lease Losses Ratios
(CHART) Allowance to Loan & Lease Losses Ratios As of 3Q09, total allowance for loan and lease losses of $471.5 million, an increase of $63.7 million from 2Q09 Excluding the $624 million in NPL charged-off to net realizable value, allowance to remaining non-performing loans in 3Q09 is 51.6% 18 Manag
Slide 19: Provisions to Net Charge-offs
(CHART) The Corporation will continue to take provisions as necessary in accordance with the performance of the loan portfolios and the economic environment Total net charge-offs were $252.7 million and $80.2 million for first nine months of 2009 and 2008, respectively First BanCorp took total provi
Slide 20: High Grade Investment Portfolio
(CHART) (CHART) Highly liquid securities portfolio 95% of portfolio AAA-rated No exposure to sub-prime mortgage and CDOs Proactively managing portfolio prepayment risk Easily pledgeable for financing By Rating Distribution: ($ in millions) As of September 30, 2009 Total Investment Portfolio - $5,571
Slide 21: Strong Sources of Borrowings
* During the quarter ended September 30, 2009. (CHART) Strong Sources of Borrowings Average Cost of Funds on Interest-bearing Liabilities: 2.55%* Total brokered CDs decreased from $8.4 billion at year-end 2008 to $7.5 billion as of September 30, 2009 The Corporation has been partly refinancing broke
Slide 22: Maintaining High Liquidity
* Information for FirstBank Puerto Rico including FirstBank Overseas Corp as of September 30, 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 25% haircut. Basic Liquidi
Slide 23: Capital Position
** Includes retained earnings Total regulatory capital composition: $832.2 million in net common equity**, $550.1 million in non-cumulative preferred stock, $225 million in Trust Preferred stock, $377.3 million cumulative preferred stock (TARP, net of discount of $22.7 million) Approximately $546 mi
Slide 24: Managing Towards Improvement of Asset Quality
Managing towards improvement of Asset Quality: Continue to reinforce loss mitigation program, collection and work-out teams Pursuing alternatives to restructure current loans Targeted disposition or sale of non-performing assets Optimization of interest margin: Maximize loan repricing opportunities
Slide 25: Contact Information
First BanCorp [NYSE: FBP] Alan Cohen Senior Vice President Marketing and Public Relations Office (787) 729-8256 alan.cohen@firstbankpr.com Contact Information 25
Slide 26: Disclaimer
Disclaimer 26 These forward-looking statements may relate to the Corporation's financial condition, results of operations, plans, objectives, future performance and business, including, but not limited to, statements with respect to the adequacy of the allowance for loan and lease losses, market ris