Slide 1: FDIC Assisted Acquisition of Westernbank
Investor Presentation FDIC Assisted Acquisition of Westernbank May 3, 2010 Strictly Private and Confidential
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this Presentation that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations and are made pursuant to the Private Securities Litigation Refor
Slide 3: Transaction Overview
Transaction Overview FDIC assisted acquisition of Westernbank Puerto Rico ("W") with loss sharing Purchase of $9.2 billion of total assets $8.5 billion loan portfolio, prior to purchase accounting mark $0.5 billion of cash and securities, all transferred at fair market values Incurrence of $8.3 bill
Slide 4: Strategic Rationale
Strategic Rationale Solidifies Popular's position as the premier bank in Puerto Rico Positions Popular to strengthen its franchise Provides Popular with incremental, reduced-risk earning assets Enhances future earnings power of Popular Opportunity for significant cost savings given franchise overlap
Slide 5: Solidifies Position As Leading Banking Franchise in Puerto Rico
Solidifies Position As Leading Banking Franchise in Puerto Rico Leading financial institution in Puerto Rico with 173 branches as well as 8 branches in the Virgin Islands $32 billion in pro forma total assets(1) in Puerto Rico $24 billion in pro forma total loans(1) and $20 billion in pro forma tota
Slide 6: Summary Loan Portfolio
Commercial & Multifamily Real Estate 38.12 1-4 Family 18.85 Commercial Loans 16.08 Consumer Loans 10.01 Construction & Development 9.18 Other 7.78 Commercial & Multifamily Real Estate 31 1-4 Family 19.3 Commercial Loans 19.3 Consumer Loans 12.7 Other 10.5 Construction & Development 7.3 Summary Loan
Slide 7: Pro Forma Capital Ratios
Pro Forma Capital Ratios As of March 31, 2010 (%) Total Capital BPOP Pro Forma for W Total Capital 15.3 13.8 (1) Tier 1 Capital (%) BPOP Pro Forma for W Tier 1 13.8 12.5 (1) Tier 1 Common (%) BPOP Pro Forma for W Tier 1 10.4 9.3 (1) Tier 1 Leverage (%) BPOP Pro Forma for W Tier 1 10.3 8.4 (1) Strong
Slide 8: Integration Plan Already Underway
Integration Plan Already Underway Popular has formed a dedicated team to oversee the integration of W The team has already begun to oversee all W operations Popular is already familiar with the bulk of W's customers and operations, allowing for a seamless transition W's branch network will be integr
Slide 9: Conclusion
Conclusion Limited-risk, in-market acquisition Mitigated credit risk through FDIC loss share Solidifies Popular's leading market position Provides Popular with incremental earning assets Significant cost saving opportunities Enhanced future earnings potential Financially attractive for Popular share