First Bancorp. New · NYSE:FBP

First Bancorp. New — First Bancorp — Merger or Acquisition (October 2019)

13 slides from First Bancorp. New's merger presentation, Oct 22, 2019

  1. Slide 1: First BanCorp. Acquisition of Banco Santander Puerto Rico

    First BanCorp. Acquisition of Banco Santander Puerto Rico October 21, 2019 Exhibit 99.2

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation may contain “forward-looking statements” concerning First BanCorp.’s (the “Corporation”) future economic, operational and financial performance. “Forward-looking statements” include, without limitation, statements relating to the impact the Corporation ex

  3. Slide 3: Transaction Highlights

    Transaction Highlights Creates a stronger competitor in Puerto Rico with the scale and breadth to better serve retail and commercial customers Enhances funding profile through the addition of a low-cost core deposit funding base and reduction of wholesale funding Deploys capital efficiently, acquiri

  4. Slide 4: Overview of Banco Santander Puerto Rico (BSPR)

    Overview of Banco Santander Puerto Rico (“BSPR”) BSPR Overview Financial Highlights ($ millions) Source: S&P Global Market Intelligence, Company Filings, Commissioner of Financial Institutions of Puerto Rico. 1 Balances as of June 30, 2019. 2 Net of brokered deposits. Leading full-service franchise

  5. Slide 5: Stronger Combined Franchise

    Stronger Combined Franchise Increased Scale Enhanced Funding Profile Improved Asset Quality Attractive Capital Deployment / Pro Forma Capital Ratios at Close (mid 2020) $17.6bn Total Assets1 $12.0bn Loans2 #2 Rank in Puerto Rico $14.2bn Deposits 84% Loans / Deposits2 $13.6bn Deposits Excluding Broke

  6. Slide 6: Pro Forma Highlights

    Pro Forma Highlights

  7. Slide 7: Pro Forma Loan and Deposit Composition

    Pro Forma Loan and Deposit Composition FBP Loan Portfolio BSPR Loan Portfolio Pro Forma FBP Loan Portfolio1 Commentary FBP Deposit Mix BSPR Deposit Mix Pro Forma FBP Deposit Mix Pro forma loan portfolio will exclude nonperforming BSPR loans (and assets) as well as the JetBlue credit card portfolio P

  8. Slide 8: Select Financial Information

    Select Financial Information Creates a stronger competitor in Puerto Rico with over $11bn in deposits in Puerto Rico and the scale and breadth to better serve retail and commercial customers Source: S&P Global Market Intelligence, Commissioner of Financial Institutions of Puerto Rico. 1 Balances as

  9. Slide 9: Transaction Structure

    Transaction Structure if

  10. Slide 10: Transaction Summary

    Transaction Summary Consideration 100% cash consideration Transaction Value $425 million base purchase price, comprised of $63 million premium on $362 million of BSPR’s core tangible common equity1 $638 million excess capital1 paid to Santander at par Purchase price subject to adjustment based on BS

  11. Slide 11: Transaction Assumptions

    Transaction Assumptions Cost Saves ~$48 million (pre-tax) or ~35% of BSPR’s LTM 6/30/19 non-interest expense, excluding OREO expense 25% realized in 2020, 100% thereafter Durbin Amendment ~$(4) million (pre-tax) Loan Mark Gross loan mark of 5.9% Goodwill and Intangibles Core Deposit Intangible: 1.5%

  12. Slide 12: Potential Financial Impact of CECL

    Potential Financial Impact of CECL Overview Estimated Impact of CECL on Transaction General purchase accounting rules for business combinations require that all loans be marked at fair value Under CECL, the loan portfolio will be separated into Purchase Credit Deteriorated (“PCD”) loans and Non-Purc

  13. Slide 13: Q & A

    Q & A

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