59 slides from First Bancorp. New's earnings presentation, Feb 19, 2008
Slide 1: First BanCorp Overview February 19, 2008
First BanCorp (NYSE: FBP) Overview February 19, 2008
Slide 2: Forward-looking statements disclaimer
This presentation has been prepared by First BanCorp to provide current information, including preliminary financial information, about its operations and includes information that has not been included in any report previously filed with the Securities and Exchange Commission. The financial informa
Slide 3: Management Presenters
Management Presenters Luis Beauchamp Chairman & Chief Executive Officer Mr. Beauchamp joined First BanCorp in 1990 and was named President and CEO and Board Member in September 2005 Prior to this position, Mr. Beauchamp served as Chief Lending Officer and SEVP of the Wholesale Banking division In th
Slide 4: Management Presenters (continued)
Lawrence Odell EVP, General Counsel & Secretary of the Board of Directors Mr. Odell joined First BanCorp in February 2006 Mr. Odell has over 25 years of experience in specialized legal issues related to banking, corporate finance and international corporate transactions Mr. Odell has been a Senior P
Slide 5: Management Presenters (continued)
Emilio Martino EVP & Chief Lending Officer Mr. Martino has been the Chief Lending Officer and Executive Vice President of FirstBank since October 2005 Prior to that Mr. Martino was the Chief Credit Officer of the bank Mr. Martino joined First BanCorp in May 2002 Victor Barreras SVP, Treasurer Mr. Ba
Slide 6: Agenda
Agenda 2007 Accomplishments Selected Financial Data Corporate Overview PR Overview Florida Overview Eastern Caribbean Overview Investment Portfolio and Funding Asset Quality 2008 and Beyond Stock Performance
Slide 7: 2007 Accomplishments
2007 Accomplishments Unwinding of substantial portion of mortgage-related transactions Completion of capital raise with ScotiaBank Resolution of class action lawsuit and settlement with the SEC 2007 Annual Meeting of Stockholders Lifting of Cease and Desist Orders with the FDIC and the Office of the
Slide 8: Selected Financial Data
Selected Financial Data Year ended Year ended 12/31/2007 12/31/2006 Net interest income Net interest income $ 451,016 $ 443,694 Provision for loan and lease losses Provision for loan and lease losses 120,610 74,991 Non-interest income Non-interest income 67,156 31,336 Non-interest expenses Non-inter
Slide 9: Selected Financial Data: Balance Sheet Data
Selected Financial Data Balance Sheet Data 12/31/2007 12/31/2006 % change Loans and loans held for sale Loans and loans held for sale $ 11,799,746 $ 11,263,980 4.7 % Allowance for loan & lease losses Allowance for loan & lease losses 190,168 158,296 20 % Money market & investment securities Money ma
Slide 10: Corporate Overview
BanCorp Corporate Overview
Slide 11: Corporate Highlights
Corporate Highlights Market Presence Approximately 3,000 full time employees 185 branches, stand-alone offices and in-branch service centers Total assets of $17.2 billion as of December 31, 2007 Among the three largest financial holding companies headquartered in Puerto Rico and within the 50 larges
Slide 12: Corporate Organizational Chart
Corporate Organizational Chart Notes: IBE: International Banking Entity Organizational chart shows the Corporation's main business entities First BanCorp FirstBank Puerto Rico First Express USVI FirstBank Insurance Agency First Insurance Agency USVI First Federal Finance (d/b/a Money Express) FirstM
Slide 13: Geographic Footprint
Geographic Footprint Geographic Footprint * * Does not include 3 VICB branches
Slide 14: Total Assets
14 Total Assets $17.2 Billion as of December 31, 2007 Cash & Money Market Instruments Other assets 2% 3% Investments 2% Loans Receivable - net of ALL $190 milion 68%
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio By Loan Type By Geography
Slide 16: Loans Receivable Composition
Loans Receivable Composition *1998 - 1999 not restated ** Commercial loans to other financial institutions collateralized by mortgages Consistent Loan Growth in Key Business Segments CAGR 12% 36% 24%
Slide 17: Residential Mortgage Composition
Residential Mortgage Composition $3.2 billion as of 12/31/07 * Fixed Rates - Mainly 30yr fully amortizing ** Adjustables - No teaser rates By Geography By Loan Type
Slide 18: Puerto Rico Business Overview
Puerto Rico Business Overview
Slide 19: FirstBank Puerto Rico subsidiaries and operations
FirstBank Puerto Rico has 4 subsidiaries with operations in Puerto Rico: FirstMortgage-a residential mortgage loan origination company with 26 offices within FirstBank branches and at stand alone sites First Federal Finance (d/b/a Money Express)-a small-loan consumer finance company with 39 offices
Slide 20: Puerto Rico Footprint
Puerto Rico Footprint Opportunities Within the Local Market Opportunities Within the Local Market Opportunities Within the Local Market Dark Green: Municipalities where FBP is present
Slide 21: Puerto Rico Market Share
Puerto Rico Market Share Opportunities Within the Local Market Share (Sept. 07) Market Position Branches Deposits Total Deposits 16.26% 3rd Total Deposits (Net of Brokered) 6.34% 6th Savings & CD's (w/o brokered, IRA & Keogh) 6.93% 5th Brokered CD's 31.10% 1st Government Deposits 6.42% 3rd Loans Cor
Slide 22: Puerto Rico Wholesale Banking
Puerto Rico Wholesale Banking Diverse Wholesale Banking business with corporate, commercial banking, government & construction segments with strong pipeline First BanCorp has developed a broad product offering for its larger corporate customer base Institutions, government agencies and corporations
Slide 23: Puerto Rico Corporate and Commercial Lending
Puerto Rico Corporate and Commercial Lending Commercial Banking at both the Corporate and Middle Market levels is expected to continue as one of the Corporation's growth drivers in the near term In 2005, the Corporation initiated a strategy to cater customer needs in the middle market segment Signif
Slide 24: Puerto Rico Construction Lending
Puerto Rico Construction Lending Specializes in the interim Construction financing of residential, industrial and Commercial projects. Currently providing financing to approximately to 37 projects Construction Lending has shown a CAGR of 22.85% since 2003
Slide 25: Puerto Rico Mortgage Lending (FirstMortgage)
Puerto Rico Mortgage Lending (FirstMortgage) Residential Real Estate Lending has shown a CAGR of 39.84% since 2003 Puerto Rico's mortgage market has historically been dominated by Doral, R&G and Popular Mortgage, however, recent developments in the mortgage market are resulting in market share chang
Slide 26: Puerto Rico Auto Lending
Puerto Rico Auto Lending Auto Loans - CAGR of 16.13% A highly competitive and specialized business on the Island Four major participants: Banco Popular, Reliable, FirstBank and BBVA Strong #2 position with 18.35% market share (Puerto Rico) as of Sept. 2007* Also offers leasing and rental services th
Slide 27: Puerto Rico Consumer Lending Products
Puerto Rico Consumer Lending Products Consumer Lending has shown a CAGR of 4.31% from 2003 to 2007. The Consumer Portfolio as of December 2007 remained flat with 2006 reflecting market conditions and tightened credit policies implemented by FBP Offers unsecured lending, credit lines and marine finan
Slide 28: Puerto Rico Money Express
Puerto Rico Money Express Money Express has shown a CAGR of 10.04% since 2003. The portfolio has remained flat in line with stricter credit policies implemented during 2006. stricter credit policies implemented during 2006. stricter credit policies implemented during 2006. stricter credit policies i
Slide 29: Puerto Rico Insurance Business
Puerto Rico Insurance Business Insurance Commissions have shown a CAGR of 25.23% since 2003 FirstBank Insurance has experienced strong growth since inception Leverage the insurance needs of customers across the Bank's business lines, including auto, mortgage, consumer and commercial Other key priori
Slide 30: Florida Overview
BanCorp Florida Overview
Slide 31: Florida Total Operations
Florida Total Operations First BanCorp initiated its expansion into the mainland market with a Loan Agency in Miami, Florida in the 4th quarter of 2004 The Miami Agency is part of FirstBank Puerto Rico With the acquisition of FirstBank Florida, First BanCorp entered into full banking services for co
Slide 32: Florida: FirstBank Florida
Florida FirstBank Florida In March 2005, First BanCorp acquired Ponce General (parent of Unibank, later renamed FirstBank Florida) Continued effort to expand Florida franchise beyond the Bank's Miami-based loan agency Branch network integration through FirstBank Florida branding Anticipated de novo
Slide 33: Florida: FirstBank Miami Agency
Florida FirstBank Miami Agency FirstBank enters the US mainland market with focus on the Florida market by establishing a Loan Agency Office in November 2004 Miami loan production office offering construction and commercial loans throughout Florida Agency managed by experienced, seasoned constructio
Slide 34: Eastern Caribbean Overview
Eastern Caribbean Overview
Slide 35: Eastern Caribbean Loan Overview
Eastern Caribbean Loan Overview FirstBank's Eastern Caribbean operations include presence in St Thomas, St Croix, St John, Tortola and Virgin Gorda In 1999 and 2002, FirstBank acquired the USVI and BVI branches of Citibank and JPMorgan Chase, respectively. The acquisition of the Virgin Islands Commu
Slide 36: Eastern Caribbean Insurance
Eastern Caribbean Insurance Insurance Commissions have shown a CAGR of 70.84% since 2003 First Insurance VI has experienced growth since inception, currently operating insurance agency offices in the Virgin Islands Leverage the insurance needs of customers across the Bank's business lines, including
Slide 37: FirstBank Eastern Caribbean Region
FirstBank Eastern Caribbean Region
Slide 38: Investments and Funding
Investments and Funding
Slide 39: Investment Portfolio (as of December 31, 2007)
Investment Portfolio (as of December 31, 2007) Total Investment Portfolio $4,819,656,869 Investment Portfolio by Rating Distribution (000,000's)
Slide 40: U.S. Government & Agency Portfolio by Final Maturity
* Effective maturity may differ due to embedded call options U.S. Government & Agency Portfolio by Final Maturity*
Slide 41: Funding (as of December 31, 2007)
Funding (as of December 31, 2007) Cost of Funds YTD 4.74%
Slide 42: Weighted Average Time Left to Final Maturity of Brokered CD Portfolio
Weighted Average Time Left to Final Maturity* of the Callable & Fixed Brokered CD Portfolio Bullets Portfolio WAVG Life Left Callables 12/31/2002 2.54 9.2 12.06 12/31/2003 1.54 10.62 14.21 12/31/2004 1.38 11.91 13.5 12/31/2005 0.3 6.19 11.01 12/31/2006 0.37 6.82 10.32 12/31/2007 0.52 4.92 9.24 * Eff
Slide 43: Asset Quality
BanCorp Asset Quality
Slide 44: Total Loans
Total Loans Decrease in total loans in 2006 is mainly a result of repayments of approximately $2.7 billion in secured commercial loans to Doral and R&G of which $2.4 billion represented the non-recurrent payment received in May 2006
Slide 45: Asset Quality
Asset Quality Non performing residential mortgage loans have increased during 2006 and first half of 2007. Historically, the Corporation has experienced minimal losses in this portfolio Current reserve levels for the mortgage portfolio are reviewed and validated by an external consultants
Slide 46: Lending & Credit Administration
Lending & Credit Administration Lending & Credit Administration (000's)
Slide 47: Net Charge-Off Ratios to Average Loans
Net Charge-Off Ratios to Average Loans 2002 2003 2004 2005 2006 2007 Residential Real Estate Loans 0.09% 0.04% 0.02% 0.05% 0.04% 0.03% Commercial & Construction loans 0.14% 0.17% 0.11% 0.10% 0.04% 0.23% Consumer Loans 3.15% 2.60% 2.25% 2.06% 2.90% 3.48% Total loans 0.87% 0.66% 0.48% 0.39% 0.55% 0.79
Slide 48: Capital Position
Capital Position
Slide 49: Capital Position: First BanCorp and FirstBank
Capital Position First BanCorp FirstBank
Slide 50: 2008 and Beyond
2008 and Beyond
Slide 51: One Stop Shop referrals
'06 '07 '08P 14768 56361 80000 Strategic Initiatives "One Stop Shop" (OSS) Referrals 42% 282%* 80,000 *As of September 30, 2007
Slide 52: Strategic Initiatives 2007: One Stop Shop
Strategic Initiatives 2007 "One Stop Shop" (OSS)
Slide 53: Total Capital Ratio
Total Capital Ratio * FDIC Well Capitalized Level 10.00% * Strong Capital Position to support execution of Strategic Initiatives
Slide 54: FBP Enterprise Wide Focus: 2008 and Beyond
FBP Enterprise Wide Focus: 2008 and Beyond Execute on alternatives to optimize available Capital: In excess of $300 million above minimum regulatory capital as of December 31, 2007 Continue leveraging on a more favorable interest rate scenario: $12.5MM Net Interest Income Improvement for each 25bps
Slide 55: Stock Performance
Stock Performance
Slide 56: FBP Stock Performance vs. Peers 2007 YTD
First BanCorp FBP Stock Performance vs. Peers 2007 YTD *Full service commercial bank peers in PR Source: Bloomberg Performance in line with U.S. indices and outperforming local peers *
Slide 57: Total Return Comparison vs. Bank Indexes
First BanCorp Total Return Comparison vs. Bank Indexes *10 years ended 12/31/07 Source: Bloomberg
Slide 58: Market Price to Book Value Ratio
First BanCorp - Market Price to Book Value Ratio P/B multiple at lowest level in last 10 yrs. Source: Bloomberg
Slide 59: First BanCorp Overview February 19, 2008
First BanCorp (NYSE: FBP) Overview February 19, 2008