First Bancorp. New · NYSE:FBP
First Bancorp. New — First Bancorp — Investor Presentation (February 2007)
49 slides from First Bancorp. New's investor presentation, Feb 20, 2007
Slide 1: First Bancorp (NYSE: FBP) Overview February 2007
First Bancorp (NYSE: FBP) Overview February 2007
Slide 2: Disclaimer
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 financ
Slide 3: Management Presenters
Management Presenters Randotfo Rivera Lawrence Odell Emilio Martino Valdes [As Bxeoutive Vice President, Iv. Rveraisin cherge of corporate bbarking, commercial, infemational, goverment and institutional barking, structured nonce and cosh menagement for Frstberk Puerto Rico Prior fo joining FistBonk
Slide 4: Agenda
Agenda Company Overview Recent Developments Business Overview & Highlights Selected Financial Data 2006
Slide 5: Company Overview
Tiileancor Company Overview
Slide 6: Company Overview
Company Overview Headquartered in San Juan, Puerto Rico Approximately 2,800 full time employees 138 branches, stand-alone offices and in-branch service centers Total assets of $17.4 billion as of December 31, 2006 2nd largest financial holding company headquartered in Puerto Rico and within the 50th
Slide 7: Corporate Organizational Chart
Corporate Organizational Chart Notes: IBE: International Banking Entity Organizational chart shows the Corporation's main business entities Grupo Empresas de Servicios Financieros (d/b/a Puerto Rico Finance) First BanCorp FirstBank Puerto Rico First Express USVI FirstBank Insurance Agency First Insu
Slide 8: Recent Developments
Tiileancor Recent Developments
Slide 9: First BanCorp Recent Developments
First BanCorp Recent Developments March 2006: The Federal Reserve and the FDIC issued Cease-and-Desist orders to First BanCorp, Doral and R&G relating to the FAS 140 treatment of certain past mortgage transactions and accounting for derivative instruments March 2006: First BanCorp publicly announced
Slide 10: First BanCorp Recent Developments (cont.)
First BanCorp Recent Developments (cont.) September 2006: First BanCorp provided its restated financials for the years 2000 to 2004, with a cumulative net decrease in retained earnings and legal surplus of $17.1 million December 2006: The Corporation was engaged in conversations with the SEC for the
Slide 11: Business Overview & Highlights
Business Overview & Highlights
Slide 12: Business Overview
Business Overview First BanCorp is the parent company of FirstBank Puerto Rico, a state chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida; FirstBank Insurance Agency; and Ponce General, the holding company of FirstBank Florida FirstBank Puerto Rico has 4 subsid
Slide 13: Geographic Footprint
Geographic Footprint (48) 1 13
Slide 14: 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 15: FBP: Second largest financial holding company headquartered in Puerto Rico
FBP: Second largest financial holding company headquartered in Puerto Rico Share (Sept 06) Market Position Branches 8.36% 4th Deposits Savings & CD's (w/o brokered, foreign, keogh) 8.61% 4th Consumer DDA's 5.84% 7th Commercial & Corporate DDA's 5.52% 5th Brokered CD's 35.68% 1st Government Deposits
Slide 16: Business Highlights: Diverse Business Mix
Business Highlights Diverse Business Mix Core lending franchise is comprised of corporate, commercial and consumer lending Full service and scale corporate and commercial and construction banking operations differentiate First BanCorp from most Island peers Additional scale businesses, including mor
Slide 17: Business Highlights: Strengthened Risk Management Culture
Business Highlights Strengthened Risk Management Culture First BanCorp developed and invested in a state-of-the-art risk management system that allows the Bank to maintain a competitive advantage in the marketplace Vigorous interest rate risk management with ALCO Committee Enhanced credit quality ov
Slide 18: New branding initiative and One-Stop Shop
New branding initiative launched in 4th QTR 2005, where the Bank ties in all its product offerings and branch network through its One-Stop Shop initiative The Bank continues to grow organically by developing cross-selling strategies with its existing client base, with an objective of reaching 5 prod
Slide 19: Branding Strategy: The Tagline and Signature
Branding Strategy: The Tagline and Signature
Slide 20: First BanCorp Total Assets of $17.4 Billion
laa First BanCorp Total Assets First BanCorp Total Assets of $17.4 Billion asof December 31, 2006 Cash & Maney Market Instruments Other assets, 3% 4% Investments 20% Loans Receivable - net of ALL of $158 rmillion 64%
Slide 21: First BanCorp Diversified Loan Portfolio
First BanCorp Diversified Loan Portfolio Note: 1 Approximately $933 million in commercial loans secured by mortgages and pass through trust certificates to Doral and R&G outstanding at 12/31/2006
Slide 22: Wholesale Banking
Wholesale Banking First BanCorp has developed a broad product offering for its larger corporate customer base Institutions, government agencies and corporations Cash management product launched in 1998 Automated web-based system #3 share of government deposit segment Products include financing, capi
Slide 23: Corporate and Commercial Lending
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 Significant opport
Slide 24: First BanCorp Corporate and Commercial Lending
First BanCorp Corporate and Commercial Lending Corporate and Commercial Lending has shown a CAGR of 18.48% since 2003
Slide 25: First BanCorp Commercial Mortgage
First BanCorp Commercial Mortgage Commercial Real Estate Lending has shown a CAGR of 21.12% since 2003 Note: The increase includes the loans acquired as part of FB Florida acquisition in March 2005, FB Florida commercial mortgage loans at 12/31/2006 approximated $275 million.
Slide 26: First BanCorp Construction Lending
First BanCorp Construction Lending Specializes in the interim construction financing of residential, industrial and commercial projects in Puerto Rico, USVI, BVI and Florida Currently providing financing to more than 40 projects ranging from approximately $2 million to up to $150 million Constructio
Slide 27: FirstBank Miami Agency
FirstBank Miami Agency FirstBank enters the US mainland market with focus on the Florida market by establishing a Loan Agency Office in November 2004 Coral Gables loan production office offering construction and commercial loans throughout Florida Agency managed by experienced, seasoned construction
Slide 28: First BanCorp Residential Real Estate Loans
First BanCorp Residential Real Estate Loans Residential Real Estate Lending has shown a CAGR of 39.94% since 2003 Note: The increase includes the loans acquired as part of FB Florida acquisition in March 2005, FB Florida residential mortgages at 12/31/2006 approximated $329 million.
Slide 29: Mortgage Lending (FirstMortgage - PR Production)
Mortgage Lending (FirstMortgage - PR Production) Mortgage closings have shown a CAGR of 32.73% since 2001, strengthened by the launch of First Mortgage in 2003 Puerto Rico's mortgage market has historically been dominated by Doral, R&G and Popular Mortgage, however, recent developments in the mortga
Slide 30: First BanCorp Consumer Lending
First BanCorp Consumer Lending Consumer Lending has shown a CAGR of 17.35% since 2003
Slide 31: Auto Lending Puerto Rico Operations
Auto Lending Puerto Rico Operations A highly competitive and specialized business on the Island Four major participants: Banco Popular, Reliable, FirstBank and BBVA Strong #2 position with 17.3% market share (Puerto Rico) as of Sept 2006 Also offers leasing and rental services through First Truck &
Slide 32: Consumer Lending Puerto Rico Operations
Consumer Lending Puerto Rico Operations Offers unsecured lending, credit lines and marine financing Currently #3 in market share Puerto Rico (personal loan segment) with a $370 million portfolio, personal and small loans Successful in developing direct and indirect channels Focus on service - 15 min
Slide 33: Money Express
Money Express Specializes in sub-prime unsecured personal lending Loans below $5,000, under Money Express Brand Loans over $5,000 under Prestamas Brand Puerto Rico market size is largely fixed (approximately $1.2 billion), so focus on capturing market share from competitors FirstBank currently has a
Slide 34: Insurance Business
Insurance Business FirstBank Insurance and First Insurance VI have experienced tremendous growth since their inception We currently operate insurance agency offices in Puerto Rico and the Virgin Islands Leverage the insurance needs of customers across the Bank's business lines, including auto, mortg
Slide 35: Eastern Caribbean Franchise
Eastern Caribbean Franchise In 1999 and 2002, FirstBank acquired the USVI and BVI branches of Citibank and JPMorgan Chase, respectively FirstBank has become a market leader in these particularly affluent markets In the USVI, #1 share by assets (37%), #1 share by originations (71%) and #2 share by de
Slide 36: FirstBank 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 Coral Gables-based loan agency Branch network integration through FirstBank Florida branding Anticipated de novo b
Slide 37: Selected Financial Data 2006
Selected Financial Data 2006
Slide 38: First BanCorp Total Assets
First BanCorp Total Assets Decrease in total assets is a result of the deleveraging plan after payment of $2.4 billion from Doral
Slide 39: First BanCorp Total Loans
First BanCorp Total Loans Decrease in total loans 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 40: Asset Quality
Asset Quality Non performing residential mortgage loans have increased during 2006. Historically, the Corporation has experienced minimal losses in this portfolio. Current reserve levels for the mortgage portfolio were reviewed and validated by an external consultant
Slide 41: Asset Quality
Asset Quality Current reserve levels for the mortgage portfolio were reviewed and validated by an external consultant
Slide 42: Asset Quality
Asset Quality Adding back the non-recurrent payment of $2.4 billion from Doral in May 2006 to the denominator of the formula, for comparability purposes, the ratios would have been 1.38%, 1.74% and 1.84% for June, September and December 2006, respectively. The increase for the second, third and four
Slide 43: Asset Quality
Asset Quality ‘oan to Toa Leama 144 Allowance to Total wane etcluaing Rouidentiat Loan
Slide 44: FirstBanCorp Capital Position (estimated)
FirstBanCorp Capital Position (estimated) Note: As filed with the Board of Governors of the Federal Reserve System
Slide 45: FirstBank Capital Position (estimated)
FirstBank Capital Position (estimated) Note: Historically, holding company capital ratios are slightly higher.
Slide 46: Investment Security Portfolio
Investment Security Portfolio As of December 31, 2006 (In millions) U.S. Gov. & Agncy P.R. Gov. & Agncy MBS Money Markets FHLB Stock Overnight Deposits Corp. Bonds OTHER 2661 57 2309 231.5 38.4 225 6.9 14.5 Total = $5.5 billion
Slide 47: Funding
Funding As of December 31, 2006
Slide 48: U.S. Gov't & Agency Portfolio by Final Maturity
U.S. Gov't & Agency Portfolio by Final Maturity1 Date 1/11/2007 3/29/2007 5/17/2007 2/15/2015 5/15/2015 4/8/2019 6/30/2020 10/6/2020 2/17/2022 3/7/2022 7/30/2023 4/26/2024 2/14/2025 6/5/2028 9/8/2028 6/9/2033 Amount 39946652 123521205 19628920 293436299 100147946 499427078 199892365 450000000 300000
Slide 49: Weighted Average Time Left to Final Maturity of Brokered CD Portfolio
Weighted Average Time Left to Final Maturity2 of the Callable & Fixed Brokered CD Portfolio Bullets Portfolio WAVG Life Left Callables 12/1/2002 2.54 9.2 12.06 12/1/2003 1.54 10.62 14.21 12/1/2004 1.38 11.91 13.5 12/1/2005 0.3 6.19 11.01 12/31/2006 0.37 6.82 10.32 2: effective maturity may differ du
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