25 slides from First Bancorp. New's earnings presentation, Dec 1, 2011
Slide 1: Third Quarter 2011 Investor Presentation
Exhibit 99.1 ExhibitQuarter Third Investor December99.1 Presentation 1st,2011 2011
Slide 2: Disclaimer
This Disclaimer expressions The limited and Corporation’s FirstBank credit things, conditions margins, retain deficit the of results agencies may non-interest acquisitions debt cost 2occurrences the risk Corporation’s the Corporation of not will presentation quality existing various of operations; t
Slide 3: Corporate Profile
Corporate Well As Founded Headquartered 2nd A Small 140 More Puerto Florida Total 3Eastern well leading ofATM largest Diversified Assets—$13.5 Deposits—$10.7 Loans—$10.6 than September presence Rico: diversified 9% Caribbean: Caribbean inmachines bank Profile 2,500 financial of 1948 84% Assets in in
Slide 4: Strong and Unique Franchise
Corporate Strong Unique Virgin Florida Consumer Mortgage Retail Insurance Wholesale (1) (2) (3) *FirstBank Puerto 98765321Institutions 10 11 4Total Scotiabank FirstBank Scoti Doral Banco BBVA Oriental Citibank Bank Other BBU Banco Credit Provided Established $72,883 $53,582 Banking Brokerage Islands
Slide 5: Delivered on Strategic Plan: Strengthening the Franchise
Delivered Strategic Strengthening Strengthened Reviewed Complied Executing Repositioned Preferred TARP Completed Stabilized Reduced Significantly Enhancing Increased efficiency 5Duringconversion the NPA Plan stock core on with improvements and migration Capital Franchise current $525 reduced Strateg
Slide 6: Stronger Capital Position
Stronger Strengthening October –Lead Appointed Actual Total 9/30/2011 Leverage Tier Book 621Tangible THL—Thomas first1investors Issued Simultaneous Oaktree—Michael Pro-forma Non-GAAP capital value BanCorp capital common Pro-forma1 7, 150 Capital common book (Tier 2011—Completed Roberto per impact to
Slide 7: Franchise Growth: Deposits
Franchise ($ Total $6,500 $4,628 $5,108 $5,800 $3,857 $1,716 Commercial $1,520 $723 $763 $565 $348 $2,090 $1,424 $- Cost 2.00% 2.20% 3.00% 2.92% 3.50% 4.00% 2007 0.00% 1.00% 1.56% Successful 7*CD’s, Net in of millions) $774 $564 $448 2008 Deposits* of decreased 1.79% $6,164 $2,584 $2,477 $2,381 $866
Slide 8: Franchise Growth: Loan Production and Portfolio
Franchise ($ 2010 All Selective Sustained *Gross ** $14,500 $13,088 $13,949 $322 $21 $625 $160 $1,455 $5,120 $474 $4,350 $2,046 $3,143 $1,577 Loan $5,000 $4,084 $678 $1,898 $3,008 $1,388 $1,004 $793 $595 $- 2007 Residential Construction 8Loans Government in $715 Loans loan $568 millions) –Production
Slide 9: De-risking the Balance Sheet: Credit Quality
De-risking Credit ($ $151 $1,701 $1,790 $1,900 $150 $159 $1,410 $5 $164 $1,639 $1,239 $1,506 $1,551 Mar $1,000 Non-performing Loans Net $650 $333 $165 $184 $228 $90 $25 $35 $- $61 2009 Residential Commercial Accumulated Book Charge-offs C Construction CRE Total Allowance Reduced Significantly Focuse
Slide 10: Strong Focus on Earnings: 3Q2011 Highlights
Strong Focus ($ Valuations2 GAAP Non-interest Pre-tax Provision Income Adjusted 3Q2011 Net –million 4321Increase 10Non-cash Non-GAAP Fair See ininterest loss Interest (loss) millions, reconciliation value on Underlying Net net to Statement tax Highlights $inPre-tax rebuilding for related income $14.
Slide 11: Executing Targeted Growth Strategies
Executing Targeted As Puerto Strong Unique Expansion –Florida Virgin Solidify PR 89% 95% 11% Branches Brokered FirstBank 85% 100% 93% 16% 0% Assets Loans Real Source: regulatory 11Deposits Electronic Selected Continue of Market 5% 7% 10% Estate 90% 95% 83% 93% 17% September and Islands Rico Personal
Slide 12: Executing Our Focus: Short, Mid and Longer Term
Executing Focus Short Mid Longer 1. 2. 3. Reinvest Execute 4Conversion Additional Non-recurring REO 5. Core Diversify Product 6. 7. DTA 12 Reduce Additional Reduce Improve Optimize Enhance Non-organic Term valuation deposits expenditures Term on Term enhancements on excess Path operating sources non
Slide 13: Investment Summary
In Attractive 1. 2. 3. 4. 5. 13 Strong Stable Potential Committed Summary… pre-tax, and opportunities valuation uniquely management pre-provision on positioned for a pro-forma team consolidation earnings with franchise proven tangible with and/or with execution realizable book strengthened ongoing v
Slide 14: Exhibits
Exhibits Bank
Slide 15: Economic Environment: Puerto Rico
Economic Government The –Public/private In Despite Century Housing Retail New Stabilization GDB Puerto 7,200.0 7,000.0 6,800.0 2% 1.5% 6,600.0 -1.2% 6,400.0 6,200.0 6,000.0 5,800.0 5,600.0 2000 21Real 15PPP Others GDB PR July deficit GNP car Planning 2001 Economic for Sales 0% Rico 2011, Puerto 3.0%
Slide 16: Economic Environment: Florida and Virgin Islands
Economic $400,000 Fort Orlando Statewide 2000 Miami Tampa US 4.0% 12.0% 9.6% 10.4% 10.6% 9.5% 9.0% 9.2% 8.7% 8.0% 7.5% 8.1% 8.3% 8.6% 7.9% Territory 7.1% 7.3% *21Jan-10 Florida September Virgin 437,254 During Total Number 16VI Florida Seasonally Virgin Lauderdale Bureau 2001 building number 9.7% 9.4
Slide 17: Strengthened Governance and Highly Experienced Management
Strengthened Highly Year Current Appointed Chairman Roberto Bank (Non-Executive) President Aurelio Chief Orlando Price Florida Calixto Special Eastern Cassan Mortgage Ginoris Carmen Citibank Carlos Lawrence Nayda Emilio Chase Dacio Arthur *= 17Appointed Years Waterhouse &Executive Pasarell Manhattan
Slide 18: Investment Portfolio Overview
Investment ($ Total FHLB Other Corporate Money US Mortgage By CMO Corp 23.42% AAA, PR Agency MBS As 18 inof Rating AAA, Government Not BBB, millions) Bond Investment Aaa September Investments, Not Stock, Market Rated, AAA, 5.90% 0.36% Backed ,Bonds, Rated, Distribution CCC-, 47.80% Portfolio $39 16.
Slide 19: Borrowings and Deposits Overview
Borrowings ($ DDA Brokered Repos; Others; Term Advances; Certificates Total As 19 inofthousands) brokered Notes and September $1,000,000; $171,952; CD’s—Callables; CD’s—Bullets; Savings; $409,440; of ;Overview $253,395; Deposit; CD’s 30, 1% $3,853,565; 8% decreased 2011 3%$2,310,464; 2%$4,466,917; –
Slide 20: Franchise Loan Portfolio by Geography and Category
Franchise Loan ($ Puerto $11,616 $12,000 $983 $5,079 $10,070 $2,775 $1,138 $3,937 $8,880 $2,651 $ $3,841 $1,488 Eastern $1,058 $948 $446 $923 Residential Commercial Consumer $1,276 $- $1,500 Florida $300 $534 $938 $79 $465 $844 $27 $445 3Q 2010 2009 Over 20 in 1,076 2011 $30 $31 millions) 80% $998
Slide 21: De-risking the Balance Sheet: Construction and Residential Loans
De-risking ($ Puerto Virgin Florida Loans Residential Total $Under –Construction In 2110 24% in $millions) Puerto for $300K — Islands Residential; Rico Rico, $Residential Balance construction —loan Portfolio—Down portfolio Loans $300K $down 10portfolio 33% Sheet 29 toto to housing individuals 5$600K
Slide 22: Liquidity
Liquidity $($ Basic (w/out During FHLB |1Loans 22 As %inLimit of millions) Liquidity Surplus continue NY ST 2011, September Risk repo Target secured the (1) Measures roll.) toCorporation $be 30, line 1,317 pledged 2011; of 9.78% credit Basic to continued the is 5.00% expected Liquidity: Federal 8-10
Slide 23: Capital Ratios Reconciliation
($Approximately 9/30/2011 Preferred Cummulative Total accounted Goodwill Core Common 1Tangible 2regulatory risk-based deferred to amount unrealized 23Tier First the in millions) deposit equity—GAAP assets—GAAP lesser 1BanCorp of capital tax Common equity: assets: assets common book equity shares (28
Slide 24: Pre-tax, Pre-provision Income Reconciliation
($24in thousands) Quarter 9/30/2011 Loss Less: liabilities Add: |Adjusted before Provision Unrealized Loss Equity Net Gain Ended Pre-tax, measured (gain) 6/30/2011 on on income inearly sale losses for loss loss Pre-provision pre-provision of loan extinguishment at taxes on 3/31/2011 FirstBank (gain)
Slide 25: 3Q Earnings per Share Reconciliation
Reconciliation ($ 3Q Cumulative Preferred Series Favorable preferred Convertible Net Average Basic 1Diluted 65432agreement 25All Assumes Includes Excess For in2011 loss (loss) thousands, share the (loss) A(loss) $through potential common 2Q of quarter stock income impact (24,046) awith conversion an