First BanCorp Investor Presentation September 2013 Exhibit 99.1 |
Disclaimer 1 This presentation contains “forward-looking statements” concerning First BanCorp’s (the “Corporation”) future economic performance. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “expect,” “anticipate,” “look forward,” “should,” “believes” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbor created by such section. The Corporation wishes to caution readers not to place undue reliance on any such “forward-looking statements,” which speak only as of the date made, and to advise readers that various factors, including, but not limited to, uncertainty about whether the Corporation and FirstBank Puerto Rico (“FirstBank” or “the Bank”) will be able to fully comply with the written agreement dated June 3, 2010 that the Corporation entered into with the Federal Reserve Bank of New York (the “FED”) and the order dated June 2, 2010 (the “Order”)that FirstBank entered into with the FDIC and the Office of the Commissioner of Financial Institutions of Puerto Rico that, among other things, require FirstBank to maintain certain capital levels and reduce its special mention, classified, delinquent and non-performing assets; the risk of being subject to possible additional regulatory actions; uncertainty as to the availability of certain funding sources, such as retail brokered CDs; the Corporation’s reliance on brokered CDs and its ability to obtain, on a periodic basis, approval from the FDIC to issue brokered CDs to fund operations and provide liquidity in accordance with the terms of the Order; the risk of not being able to fulfill the Corporation’s cash obligations or resume paying dividends to the Corporation’s stockholders in the future due to the Corporation’s inability to receive approval from the FED to receive dividends from FirstBank or FirstBank’s failure to generate sufficient cash flow to make a dividend payment to the Corporation; the strength or weakness of the real estate markets and of the consumer and commercial credit sectors and their impact on the credit quality of the Corporation’s loans and other assets, including the Corporation’s construction and commercial real estate loan portfolios, which have contributed and may continue to contribute to, among other things, the high levels of non-performing assets, charge-offs and the provision expense and may subject the Corporation to further risk from loan defaults and foreclosures; adverse changes in general economic conditions in the United States and in Puerto Rico, including the interest rate scenario, market liquidity, housing absorption rates, real estate prices and disruptions in the U.S. capital markets, which may reduce interest margins, impact funding sources and affect demand for all of the Corporation’s products and services and the value of the Corporation’s assets; an adverse change in the Corporation’s ability to attract new clients and retain existing ones; a decrease in demand for the Corporation’s products and services and lower revenues and earnings because of the continued recession in Puerto Rico and the current fiscal problems and budget deficit of the Puerto Rico government; uncertainty about regulatory and legislative changes for financial services companies in Puerto Rico, the United States and the U.S. and British Virgin Islands, which could affect the Corporation’s financial performance and could cause the Corporation’s actual results for future periods to differ materially from prior results and anticipated or projected results; uncertainty about the effectiveness of the various actions undertaken to stimulate the United States economy and stabilize the United States’ financial markets, and the impact such actions may have on the Corporation’s business, financial condition and results of operations; changes in the fiscal and monetary policies and regulations of the federal government, including those determined by the Federal Reserve System, the FDIC, government-sponsored housing agencies and regulators in Puerto Rico and the U.S. and British Virgin Islands; the risk of possible failure or circumvention of controls and procedures and the risk that the Corporation’s risk management policies may not be adequate; the risk that the FDIC may further increase the deposit insurance premium and/or require special assessments to replenish its insurance fund, causing an additional increase in the Corporation’s non-interest expense; risks of not being able to recover the assets pledged to Lehman Brothers Special Financing, Inc.; the impact on the Corporation’s results of operations and financial condition associated with acquisitions and dispositions; a need to recognize additional impairments on financial instruments or goodwill relating to acquisitions; risks that downgrades in the credit ratings of the Corporation’s long-term senior debt will adversely affect the Corporation’s ability to access necessary external funds; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the Corporation’s businesses, business practices and cost of operations; and general competitive factors and industry consolidation. The Corporation does not undertake, and specifically disclaims any obligation, to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by the federal securities laws. Investors should refer to the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2012 for a discussion of such factors and certain risks and uncertainties to which the Corporation is subject. |
Eastern Caribbean: 7% of Assets 14 bank branches 3 First Express branches Well diversified with significant competitive strengths Franchise Overview Founded in 1948 Headquartered in San Juan, Puerto Rico with operations in PR, Eastern Caribbean (Virgin Islands) and Florida – ~2,500 FTE employees (1) 2nd largest financial holding company in Puerto Rico with attractive business mix and substantial loan market share Florida presence with focus on serving south Florida region The largest depository institution in the Virgin Islands with approximately 40% market share 151 ATM machines and largest ATM network in the Eastern Caribbean Region (2) A well diversified operation with over 650,000 retail & commercial customers 2 Total Assets - $12.8B Total Loans - $9.7B Total Deposits - $10.0B 47 Branches 35 Branches 5 Branches 2 Branches 26 Branches 8 In-Branches 12 bank branches 1 Loan Production Office SE Florida: 7% of Assets 30% of core deposits (3) 15% of core deposits (3) As of June 30, 2013. 1) FTE = Full Time Equivalent. 2) Eastern Caribbean Region or ECR includes United States and British Virgin Islands. 3) Data as of December 31, 2012. Core deposits excludes brokered deposits allocated to Puerto Rico. |
– 5.0% 10.0% 15.0% 20.0% 2005 2007 2009 2011 2013 2015 U.S. P.R. U.S. projected P.R. projected Outlook on economic growth projections in PR GNP: -0.4% for FY 2013 and 0.2% for FY 2014 (PR Planning Board) Real GDP: 1.0% for 2013 and 1.9% for 2014 (Global Insight) July 2013 unemployment rate of 13.5% compared to July 2012 of 14.0% (PR Planning Board, seasonally adjusted) Increased tourist activity in first ten months of fiscal 2013 Hotel occupancy rate of 72.4% for 2013 YTD compared to average occupancy rate of 69.7% during the same period 2012 (PR Planning Board). Evaluation of priority infrastructure projects moving forward Government targeting 65% reduction in fiscal 2014 budget deficit Act 154 excise tax fixed to its original level of 4% for five years commencing on July 1, 2013 Tax of approximately 0.5% levied on gross income Pension plan reform Privatization of Luis Muñoz Marín International Airport Puerto Rico economic update Unemployment (1) Economic Activity Recent Changes 3 Real GDP (1) 1) Source: Global Insight’s Comparative World Overview, Quarterly data. 10.0% 10.5% 5.3% 6.1% (10.0%) (5.0%) – 5.0% 2008 2010 2012 2014 2016 U.S. P.R. U.S. projected P.R. projected 2.4% 3.0% 1.2% 1.6% (2.1%) (3.7%) PR has lagged the US recovery coming out of the credit crisis |
Our turnaround story Franchise Overview ($ in millions) De-Risking of Balance Sheet Capital Enhanced Franchise Value 4 June 2010: Written Agreement with the FED and Consent Order with FDIC July 2010: The U.S. Treasury exchanged TARP for convertible preferred August 2010: Exchange of 89% Perpetual Preferred Stock for Common February 2011: Sale of non- performing loans with a book value of $269 million Feb-April 2011: Sale of $330 million of MBS and $518 million of performing residential mortgages March 2013: Sale of non-performing loans with a book value of $217.7 million and entered two separate agreements for sale of NPLs with a book value of $99 million 2010 2011 2013 October 2011: Conversion of the shares held by the U.S. Treasury into 32.9 million shares of common stock May 2012: Acquisition of a $406 million portfolio of FirstBank-branded credit cards from FIA June 2013: Write-off of $66.6 million collateral pledged to Lehman, sale of NPLs with book value of $203.8 million and $19.2 million of OREO October 2011: Private placement of $525 million in common stock. Lead investors included Thomas H. Lee & Oaktree 2012 1) Represents change in dollar amount. August 2013: Completed secondary offering reducing ownership interest of U S Treasury and PE Investors |
Franchise Overview Source: PR Market Share Report prepared with data provided by the Commissioner of Financial Institutions of Puerto Rico as of 6/30/13. 1) Puerto Rico only. 2) Calculated as institution bank branches within a mile of an FBP branch as a percentage of total institution branches. 3) Alphabetical order. Well positioned Puerto Rico institution in a consolidating market 5 Puerto Rico Total Assets (1) Puerto Rico Total Loans (1) Puerto Rico Deposits, Net of Brokered (1) ($ in millions) Strong and uniquely positioned franchise in densely populated regions of core operating footprint Strong market share in loan portfolios facilitates customer relationship expansion and cross-sell to increase deposit share Long-term opportunity for additional consolidation Branch overlap of greater than 40% with six Puerto Rico institutions (2) 1-mile branch overlap (3) 64 42 80% 42 47 44 Portfolio Balance Market Share Portfolio Balance Market Share Portfolio Balance Market Share 1 Banco Popular $26,132 39.9% 1 Banco Popular $19,212 38.8% 1 Banco Popular $17,852 44.1% 2 FirstBank 9,662 14.8% 2 FirstBank 8,123 16.4% 2 Banco Santander 5,694 14.1% 3 Oriental Bank 7,405 11.3% 3 Banco Santander 5,413 10.9% 3 Oriental Bank 4,908 12.1% 4 Banco Santander 7,031 10.7% 4 Scotiabank 5,146 10.4% 4 FirstBank 3,858 9.5% 5 Scotiabank 7,002 10.7% 5 Oriental Bank 5,083 10.3% 5 Scotiabank 3,427 8.5% 6 Doral Bank 5,477 8.4% 6 Doral Bank 2,839 5.7% 6 Citibank 2,227 5.5% 7 Citibank 2,223 3.4% 7 Other 2,692 5.4% 7 Doral Bank 2,031 5.0% 8 Banco Cooperativo 518 0.8% 8 Citibank 755 1.5% 8 Banco Cooperativo 437 1.1% 9 BBU 20 0.0% 9 Banco Cooperativo 193 0.4% 9 BBU 25 0.1% Total $65,469 100% Total $49,456 100% Total $40,460 100% Institutions Institutions Institutions |
Core Franchise is Strong Effectively executing Strategic Plan towards Profitability Management focused on continued strengthening of the franchise and executing on profitability levers Balance Sheet Improving risk profile; current focus on organic reduction of NPAs Executing on opportunities to reduce cost of funds 6 Completed two bulk sales of adversely classified loans and OREO properties with total book value of $441 million in first half of 2013 NPAs decreased for the 13 th consecutive quarter NPAs down 39% or $486 million YTD 2013 $1.8 billion brokered CDs maturing in twelve months at average rate of 1.28% |
Core deposit growth strategy continues producing positive results; $1.5B since 2009 Florida continues to be a strong funding source Focus remains on cross-selling opportunities Cost of deposits, net of brokered CDs, decreased to 0.81% Reduced reliance on brokered CDs $3.3bn (33% of deposits) today vs. $7.4bn (60%) in 2009 $1.8 billion brokered CDs maturing over next twelve months at average rate of 1.28%; brokered CDs being renewed at average rate of 0.75% - 0.85% ($ in millions) Core Deposits (1) Total Deposit Composition Cost of Deposits (1) 1) Total Deposits excluding Brokered CDs. Opportunity for Earnings Growth Successful deposit growth over recent years 7 Brokered CDs 33% Non-interest bearing 9% Interest bearing 58% 2Q 2013 Brokered CDs 60% Non-interest bearing 6% Interest bearing 34% 4Q 2009 $5,108 $5,800 $6,176 $6,490 $6,695 Retail Commercial CDs & IRA Public Funds 2,381 2,477 2,654 2,776 2,835 774 763 915 1,108 1,144 1,505 2,090 2,126 2,077 2,111 448 470 481 529 605 $6,000 $4,500 $3,000 $1,500 $0 2009 2010 2011 2012 2Q 2013 |
Continued focus on revenue generation through growth in Consumer and Residential Mortgage market share & rebuilding Commercial portfolio Strong origination activity at $1 billion for 2Q ‘13: Residential mortgages originations increased $33 million Consumer loans originations increased $33 million • Auto loan originations increased $11 million • Personal loan originations increased $13 million • Credit card utilization activity of $96 million 2013 focus on rebuilding Commercial book • Achieved $90 million growth in 2Q 2013 • First quarter of growth since 2009 • Executing on Florida growth opportunities 8 Loan Portfolio 1) Originations include purchases, refinancings, and draws from existing revolving and non-revolving commitments. Strong Origination Capabilities Loan Originations (1) ($ in millions) Steady increase in residential and consumer originations 3,417 2,874 2,747 2,714 2,511 1,716 1,562 2,013 2,020 2,047 701 428 362 223 195 5,822 5,695 4,933 4,603 4,693 301 16 85 276 238 $11,957 $10,575 $10,140 $9,836 $9,684 $0 $5,000 $10,000 $15,000 2010 2011 2012 1Q 2013 2Q 2013 Residential Consumer & Finance Leases Construction Commercial Loans Held for Sale |
Continuing De-risking of the Balance Sheet 9 Net Charge-offs (NCO) (1) Non-performing Assets (NPA) NPAs are down over $1 billion, or 58%, since the peak in 1Q 2010 Total NPLs are also down over $1 billion, or 73%, since the peak in 1Q 2010 Recent actions (1H 2013) Bulk sale of NPAs ($441m book value), resulting in NCOs of $197m Transferred $182m of loans to held for sale resulting in NCOs of $36m Non-cash charge of $67m due to write-off of securities pledged to Lehman ($ in millions) (5) 1) Excludes bulk sales. 2) Excludes $165 million of net charge-offs associated with the bulk sale to CPG in 2010. 3) Excludes $232 million of net-charge offs associated with the bulk asset sales and transfer of loans in 2013. 4) June 30, 2013. 5) Net Carrying Amount = % of carrying value net of reserves and accumulated charge-offs. Focus remains on organic reductions of nonperforming assets including the disposition of $246 million of HFS and OREO Proactively managing asset quality Commercial Non-performing Loans (includes HFS) (4) Product Book Value Accumulated Charge-offs Reserves Net Carrying Amount C & I $129.1 $45.1 $28.2 57.9% CRE 177.6 42.9 29.7 67.1% Construction 125.1 104.5 15.6 47.7% Total $431.8 $192.5 $73.5 57.4% |
Focus on Strategic Plan Rebuild earnings and de-risk balance sheet 10 ($ in millions, except per share results) 2Q 2013 Highlights Net loss of $122.6 million, or $0.60 per diluted share, including a $72.9 million loss related to the bulk sale of assets and $66.6 million loss related to the write-off of assets pledged as collateral with Lehman Adjusted net income of $16.8 million, or $0.08 per diluted share, excluding the aforementioned items Net interest margin increased by 8 basis points to 4.04%; 58 basis point increase YoY driven by further reductions in funding costs Completed the bulk sale of a nonperforming pool of residential loans with book value of $203.8 million, as well as $19.2 million of OREO for $128.3 million in an all cash transaction Completed sale of $40.8 million non-performing commercial mortgage loan without incurring in additional losses Capital remains strong with total capital ratio, tier 1 and leverage of 16.6%, 15.3% and 11.3%, respectively (2) Expect credit related expenses for the second half of 2013 to be lower than the first half by approximately $10 million based on the bulk sale expenses included in credit cost in the first half of the year and the reduced level of non-performing loans Income Statement 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 GAAP Net Interest Income 108.7 $ 125.5 $ 125.6 $ 124.5 $ 126.9 $ Provision for loan and lease losses 24.9 29.0 30.5 111.1 87.5 Non-interest income 16.5 17.3 20.1 19.1 14.3 Impairment of collateral pledged to Lehman (66.6) Equity in (losses) gains of unconsolidated entities (2.5) (2.2) (8.3) (5.5) 0.6 Non-interest expense 86.9 91.8 90.9 98.0 111.3 Pre-tax net income (loss) 10.9 19.8 16.0 (71.0) (123.6) Income tax (expense) benefit (1.5) (0.8) (1.5) (1.6) 1.0 Net income (loss) 9.4 $ 19.1 $ 14.5 $ (72.6) $ (122.6) $ Adjusted Pre-tax pre-provision earnings 37.9 $ 51.4 $ 54.5 $ 50.5 $ 35.9 $ Net Interest Margin, (GAAP) (%) 3.46% 3.98% 3.91% 3.96% 4.04% Net income (loss) per common share-basic 0.05 $ 0.09 $ 0.07 $ (0.35) $ (0.60) $ (1) 1) See reconciliation on page 18. 2) First Bancorp cannot be considered well-capitalized because of the regulatory agreements. |
Opportunity for Earnings Growth Targeted strategies for growth Puerto Rico Market Share (1) 1) Source: Office of the Commissioner of Financial Institutions of Puerto Rico as of 6/30/13 and internal reports. 11 Current Market Share Jun-13 Rank Auto / leasing 19% 2 Commercial 20% 2 Credit cards 18% 2 Mortgage originations 15% 3 Personal 8% 4 ACH Transactions 11% 6 ATM Terminals 8% 3 Debit Cards 7% 4 POS Terminals 11% 2 Branches 12% 4 Deposits 10% 4 Opportunities for ongoing market share gains Largest opportunity on deposit products, electronic banking & transaction services Growth in selected loan products for balanced risk/return to manage risk concentration and diversify income sources Recently acquired FirstBank-branded credit card portfolio Diversifies revenue stream and loan portfolio composition Opportunity to broaden and deepen relationships SE Florida Expansion prospects in Florida given long-term demographic trends Continue focus in core deposit growth, commercial and transaction banking and conforming residential mortgages Virgin Islands Solidify leadership position by further increasing customer share of wallet Puerto Rico |
Opportunity for Earnings Growth 12 Path to improved profitability Net Interest Income Improvement Cost of funds reduction $1.8B of brokered CD’s maturing at 128 bps to be replaced at 75-85bps Excess liquidity re- investment $700MM currently yielding 25 bps Replacement of NPLs for performing loans Additional loan Provision Reduction Currently 134bps of loans (excluding bulk sales) 2000-2008 weighted average provision of 98bps on loans Deposit fee income from expansion of transaction deposit base Non-interest bearing represents only 9% of deposit base Market share expansion of transaction processing Credit costs of $27MM (1) for the first 6 months of 2013 compared to 2008 annual expense of $23MM Fee Income Opportunities Operating Expense Reduction Long-term Efficiency Ratio Target of 55% 1) Represents net loss on REO operations and professional fees from collections, appraisals and other credit related fees. FDIC Cost reduction POS Terminals, Debit cards, ACH transactions, ATM Terminals growth as economy recovers across our geographies with credit profile improvement ($15 – 20 million annually) |
Key Investment Highlights 13 As of June 30, 2013. 1) See reconciliation to net income on page 18. 2) See reconciliation to total equity on page 19. 3) Assuming 100% reversal of Deferred Tax Asset Valuation Allowance of $523m; shares outstanding of 207m. See reconciliation to adjusted tangible book value on page 19. Improving core operating performance Average pre-tax pre-provision income for the last four quarters of $48m (1) NIM expanded 135 bps since 2009 to 4.04% in 2Q 2013 Stabilization of non-interest expenses; expected reduction in credit-related expense Healthy capital levels Tier 1 Common of $1.2bn or 12.3% and Tier 1 capital of 15.3% Tangible Book Value of $1.1bn or $5.32 / share (2) Deferred Tax Asset Valuation Allowance of $523m; Adjusted Tangible Book Value (3) of $7.85 / share Continuing de-risking of the balance sheet Total NPAs declined for the 13 th consecutive quarter, down over $1bn or 58% since peak in 1Q 2010 Focus remains on organic reductions of non-performing assets Opportunity for revenue expansion and earnings growth Strong loan origination capabilities ($1.8bn YTD 2013) Potential for NIM expansion through reduction in cost of deposits Expected reduction in credit-related and other expenses (e.g., FDIC insurance) Increasing market share in fee generating products and services, consumer and mortgage loan originations Opportunity for commercial loan growth in SE Florida Stabilization in Puerto Rico’s economy provides opportunities for growth Long-term potential for value creation from consolidation in Puerto Rico |
Appendix |
Stock Profile 15 Trading Symbol: • FBP Exchange: • NYSE Share Price (9/13/13): • $6.39 Shares Outstanding (as of June 30, 2013): • 206,991,155 Market Capitalization (9/13/13): • $1.35bn 1 Yr. Average Daily Volume: • 553,028 Price (9/13/13) to Tangible Book (6/30/13): • 1.20x Price (9/13/13) to Adjusted Tangible Book (1) (6/30/13): • 0.81x 5% of more Beneficial Ownership Beneficial Owner Amount Percent of Class Entities affiliated with Thomas H. Lee Partners, L.P. 41,843,581 20.2% Entities managed by Oaktree Capital Management, L.P. 41,843,581 20.2 United States Department of the Treasury (2) 20,966,340 10.1 Wellington Management Company, LLP (3) 16,421,858 7.9 Assuming 100% reversal of Deferred Tax Valuation Allowance of $523m; shares outstanding of 207m. Includes the U.S. Treasury warrant that entitles it to purchase up to 1,285,899 shares of Common Stock at an exercise price of $3.29 per share, as adjusted as a result of the issuance of shares of Common Stock in the Corporation’s $525m private placement of Common Stock completed in October 2011. The exercise price and the number of shares issuable upon exercise of the warrant are subject to further adjustments under certain circumstances to prevent dilution. The warrant has a 10-year term from its issue date and is exercisable in whole or in part at any time. As of June 30, 2013. 1) 2) 3) |
Capital Position and Asset Quality Asset quality remains our number one focus, while preserving and growing capital Strong capital position: Total capital, Tier 1 capital and Leverage ratios of the Corporation of 16.6%, 15.3% and 11.3%, respectively. $523 million Deferred Tax Asset Valuation Allowance. NPAs/Assets Leverage ratio Tier 1 Capital Ratio Total Capital Ratio 16 9.5% 9.4% 10.0% 10.0% 9.3% 9.8% 10.2% 10.2% 10.2% 10.1% 9.6% 9.5% 8.4% 5.9% 8.4% 8.1% 8.3% 7.6% 7.8% 8.0% 8.4% 11.9% 12.3% 12.5% 12.7% 12.6% 12.1% 11.3% 12.0% 12.1% 12.0% 10.7% 10.7% 11.1% 11.1% 15.8% 16.0% 16.0% 16.2% 16.5% 16.2% 15.3% 13.3% 13.4% 13.3% 12.0% 12.0% 12.4% 12.4% 17.1% 17.4% 17.3% 17.5% 17.8% 17.4% 16.6% 6.0% 12.0% 18.0% 1Q '10 2Q '10 3Q '10 4Q '10 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 Core franchise is strong – |
Non-performing Assets 1) Collateral pledged with Lehman Brothers Special Financing, Inc. 17 2009 2010 2011 2012 6/30/2013 Non-performing loans held for investment: Residential mortgage 441,642 $ 392,134 $ 338,208 $ 313,626 $ 133,937 $ Commercial mortgage 196,535 217,165 240,414 214,780 136,737 Commercial & industrial 241,316 317,243 270,171 230,090 131,906 Construction 634,329 263,056 250,022 178,190 68,204 Consumer & finance leases 50,041 49,391 39,547 38,875 35,416 Total non-performing loans held for investment 1,563,863 1,238,989 1,138,362 975,561 506,200 OREO 69,304 84,897 114,292 185,764 139,257 Other repossessed property 12,898 14,023 15,392 10,107 11,503 Other assets (1) 64,543 64,543 64,543 64,543 - Total non-performing assets, excluding loans held for sale 1,710,608 1,402,452 1,332,589 1,235,975 656,960 Non-performing loans held for sale - 159,321 4,764 2,243 94,951 Total non-performing assets 1,710,608 $ 1,561,773 $ 1,337,353 $ 1,238,218 $ 751,911 $ ($ in millions) |
Adjusted Pre-tax, Pre-provision Income Reconciliation 18 ($ in thousands) 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Income (loss) before income taxes 10,901 $ 19,834 $ 16,028 $ (71,011) $ (123,562) $ Add: Provision for loan and lease losses 24,884 28,952 30,466 111,123 87,464 Add: Net loss on investments and impairments 143 547 69 117 42 Less: Unrealized gain (loss) on derivatives instruments and liabilities measured at fair value (506) (170) (432) (400) (708) Add: Bulk sales related expenses and other professional fees related to the terminated preferred stock exchange offer - - - 5,096 3,198 Add: Loss on certain OREO properties sold as part of the bulk sale of non-performing residential mortgage assets - - - - 1,879 Add: National gross tax receipts tax corresponding to Q1 2013 recorded during Q2 2013 after enactment - - - - 1,656 Add: write-off of collateral pledged to Lehman - - - - 66,574 Add: Equity in losses (earnings) of unconsolidated entities 2,491 2,199 8,330 5,538 (648) Adjusted Pre-tax, pre-provision income 37,913 $ 51,362 $ 54,461 $ 50,463 $ 35,895 $ Quarter Ended |
Tangible Book Value Per Share Reconciliation 19 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Tangible equity: Total equity - GAAP 1,449 $ 1,484 $ 1,485 $ 1,404 $ 1,222 $ Preferred equity (63) (63) (63) (63) (63) Goodwill (28) (28) (28) (28) (28) Purchased credit card relationship (24) (24) (24) (23) (22) Core deposit intangible (11) (10) (9) (9) (8) Tangible common equity 1,323 $ 1,359 $ 1,361 $ 1,282 $ 1,101 $ Common shares outstanding 206 206 206 206 207 Tangible book value per common share 6.42 $ 6.59 $ 6.60 $ 6.21 $ 5.32 $ Deferred tax valuation allowance 367 $ 360 $ 360 $ 384 $ 523 $ Deferred tax valuation allowance per share 1.78 1.75 1.75 1.86 2.53 Adjusted tangible book value per share 8.20 $ 8.34 $ 8.34 $ 8.08 $ 7.85 $ ($ in millions, except for per share data) |