 First BanCorp Investor Presentation November 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 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 146 ATM machines and largest ATM network in the Eastern Caribbean Region (2) A well diversified operation with over 650,000 retail & commercial customers Well diversified with significant competitive strengths 2 Total Assets - $12.8B Total Loans - $9.6B Total Deposits - $10.0B Naguabo Fajardo Ceiba Luquillo Juncos Río Grande Loíza Trujillo Alto Carolina Gurabo Toa Baja Cataño San Juan Aguas Buenas Caguas Comerío Naranjito Corozal Toa Alta San Germán Mayagüez Barranquitas San Lorenzo Cayey Patillas Humacao Hatillo Cabo Rojo Maunabo Guayama Vega Baja Isabela San Sebastián Aguadilla Sabana Grande Yauco Ciales Jayuya Juana Díaz Santa Isabel Adjuntas Aguada Aibonito Añasco Arecibo Camuy Cidra Coamo Florida Guánica Lajas Lares Las Marías Manatí Maricao Moca Morovis Orocovis Ponce Salinas Utuado Villalba Yabucoa 47 Branches 35 Branches 5 Branches 2 Branches 26 Branches 12 bank branches 1 Loan Production Office SE Florida: 7% of Assets 30% of core deposits (3) 15% of core deposits (3) As of September 30, 2013. 1) FTE = Full Time Equivalent. 2) Eastern Caribbean Region or ECR includes United States and British Virgin Islands. 3) Data as of December 31, 2012. Core deposits excludes brokered deposits allocated to Puerto Rico. |
 Franchise Overview ($ in millions) Well positioned Puerto Rico institution in a consolidating market 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. 3 Puerto Rico Total Assets (1) Puerto Rico Total Loans (1) Puerto Rico Deposits, Net of Brokered (1) 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 – |
 2009 Today (3Q 2013) Change ('09-3Q'13) % improvement NPAs $1,711 $726 $985 58% NPAs/assets 8.7% 5.7% 303 bps Tier 1 Common 4.1% 12.6% 845 bps 101% TCE / TA 3.2 8.7 545 bps 76% Core deposits $5,108 $6,773 $1,665 33% NIM 2.69% 4.20% 151 bps Our turnaround story Franchise Overview ($ in millions) De-Risking of Balance Sheet Capital Enhanced Franchise Value 4 1) Represents change in dollar amount. (1) (1) (1) (1) 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 August 2013: Completed secondary offering reducing ownership interest of U S Treasury and PE Investors |
 Core Franchise is Strong Effectively executing Strategic Plan towards Profitability 5 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 $797 million brokered CDs maturing over the next six months at an average rate of 0.94% 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 14 th consecutive quarter NPAs down 41% or $512 million YTD 2013 |
 Core deposit growth strategy continues producing positive results; $1.7 billion 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 0.79% Reduced reliance on brokered CDs $3.2 billion (32% of deposits) today vs. $7.4 billion (60%) in 2009 6 Core Deposits (1) Total Deposit Composition Cost of Deposits (1) Brokered CDs 32% Non-interest bearing 9% Interest bearing 59% 3Q 2013 1) Total Deposits excluding Brokered CDs. Opportunity for Earnings Growth Successful deposit growth over recent years Brokered CDs 60% Non-interest bearing 6% Interest bearing 34% 4Q 2009 2,381 2,477 2,654 2,776 2,828 774 763 915 1,108 1,106 1,505 2,090 2,126 2,077 2,080 448 470 481 529 759 $5,108 $5,800 $6,176 $6,490 $6,773 $0 $1,500 $3,000 $4,500 $6,000 2009 2010 2011 2012 3Q 2013 Retail Commercial CDs & IRA Public Funds ($ in millions) 1.87% 1.56% 1.34% 0.88% 0.79% 0.00% 1.00% 2.00% 3.00% 2009 2010 2011 2012 3Q 2013 Total Deposits, Net of Brokered CDs |
 3,417 2,874 2,747 2,714 2,511 2,519 1,716 1,562 2,013 2,020 2,047 2,059 701 428 362 223 195 164 5,822 5,695 4,932 4,604 4,692 4,766 301 16 85 276 238 115 $11,957 $10,575 $10,140 $9,836 $9,683 $9,623 $0 $5,000 $10,000 $15,000 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 Residential Consumer & Finance Leases Construction Commercial Loans Held for Sale 187 214 229 262 177 304 305 279 308 290 12 39 28 15 5 252 357 265 431 448 $755 $914 $802 $1,016 $920 $0 $220 $440 $660 $880 $1,100 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 Continued focus on revenue generation through growth in commercial and consumer book following recent bulk sale transactions. Focus on increasing Consumer and Residential Mortgage market share & rebuilding our Commercial portfolio. – 3Q 2013 Consumer originations were strong at $290 million; and – Residential mortgage originations declined in 3Q 2013 primarily driven by an increase in market interest rates and new housing demand. Consumer book should benefit from marketing efforts on credit card portfolio with systems conversion complete in 3Q 2013. Increased focus on rebuilding commercial book in PR and FL representing a $74 million increase for the 3Q 2013. Continue executing on Florida growth opportunities 7 Loan Portfolio 1) Originations include purchases, refinancings, and draws from existing revolving and non-revolving commitments. Strong Origination Capabilities Loan Originations (1) ($ in millions) Rebuilding & replacing to achieve higher yielding portfolio |
 Product Book Value Accumulated Charge-offs Reserves Net Carrying Amount C&I $127.6 $46.0 $28.3 57.2% CRE 114.1 94.8 15.4 47.2% Construction 157.8 47.7 23.5 65.4% Total $399.4 $188.5 $67.2 56.5% Commercial Non-performing Loans (includes HFS) Continuing De-risking of the Balance Sheet 8 Net Charge-offs (NCO) (1) Non-performing Assets (NPA) 2010 2011 2012 2013 (2) ($ in millions) (4) (3) (5) 63 39 37 25 54 38 35 41 142 118 67 62 186 101 41 7 $445 $295 $180 $134 $0 $200 $400 $600 2010 2011 2012 2013 YTD Construction Commercial Consumer Residential 1,639 1,551 1,506 1,239 1,233 1,208 1,184 1,138 1,119 1,066 1,008 976 683 506 498 150 150 163 163 172 176 188 194 213 242 251 260 256 151 147 159 148 95 80 $1,790 $1,701 $1,669 $1,562 $1,410 $1,390 $1,377 $1,337 $1,332 $1,308 $1,259 $1,238 $1,087 $752 $726 9.5% 10.0% 9.3% 10.2% 10.2% 9.6% 8.4% 5.7% $0 $400 $800 $1,200 $1,600 $2,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q NPLs Held for Sale Repossessed Assets & Other Loans Held for Investment NPAs / Assets Proactively managing asset quality Transferred $182m of loans to held for sale resulting in NCOs of $36m Focus remains on organic reductions of nonperforming assets including the disposition of $227million of HFS and OREO 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) September 30, 2013. 5) Net Carrying Amount = % of carrying value net of reserves and accumulated charge-offs. NPAs are down over $1 billion, or 59%, since the peak in 1Q 2010 Recent actions (2013): Bulk sale of NPAs ($441m book value), resulting in NCOs of $197m Non-cash charge of $67m due to write-off of securities pledged to Lehman |
 Focus on Strategic Plan 3Q 2013 Highlights Net income of $15.9 million, or $0.08 per diluted share, including $3.4 million in non-recurring expenses related to the secondary stock offering and the conversion of credit cards. Adjusted net income of $19.3 million, excluding the aforementioned items. These results were also impacted by a $5.9 million loss in the equity of the unconsolidated entity and a $3 million increase in the tax reserve for uncertain tax positions. Net interest margin increased by 16 basis points to 4.20% driven by reductions in funding costs. Pre-tax, pre-provision income of $50.9 million up $15.0 million from 2Q 2013. Strong capital position with total capital ratio, tier 1 and leverage of 16.9%, 15.6% and 11.7%, respectively (2) Rebuild earnings and de-risk balance sheet ($ in millions, except per share results) 9 1) See reconciliation on page 20. 2) First Bancorp cannot be considered well-capitalized because of the regulatory agreements. Income Statement 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 GAAP Net Interest Income 125.5 $ 125.6 $ 124.5 $ 126.9 $ 130.9 $ Provision for loan and lease losses 29.0 30.5 111.1 87.5 22.2 Non-interest income 17.3 20.1 19.1 14.3 16.0 Impairment of collateral pledged to Lehman (66.6) - Equity in (losses) gains of unconsolidated entities (2.2) (8.3) (5.5) 0.6 (5.9) Non-interest expense 91.8 90.9 98.0 111.3 99.2 Pre-tax net income (loss) 19.8 16.0 (71.0) (123.6) 19.6 Income tax (expense) benefit (0.8) (1.5) (1.6) 1.0 (3.7) Net income (loss) 19.1 $ 14.5 $ (72.6) $ (122.6) $ 15.9 $ Adjusted Pre-tax pre-provision earnings (1) 51.4 $ 54.5 $ 50.5 $ 35.9 $ 50.9 $ Net Interest Margin, (GAAP) (%) 3.98% 3.91% 3.96% 4.04% 4.20% Net income (loss) per common share-basic 0.09 $ 0.07 $ (0.35) $ (0.60) $ 0.08 $ |
 Opportunity for Earnings Growth Targeted strategies for growth 1) Source: Office of the Commissioner of Financial Institutions of Puerto Rico as of 6/30/13 and internal reports. 10 Puerto Rico Market Share (1) Puerto Rico 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 Continue focus in core deposit growth, commercial and transaction banking and conforming residential mortgages Virgin Islands 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 Expansion prospects in Florida given long-term demographic trends Solidify leadership position by further increasing customer share of wallet |
 Opportunity for Earnings Growth 11 Path to improved profitability Net Interest Income Improvement Cost of funds reduction $797 million brokered CDs maturing over the next six months at an average rate of 0.94% Cash liquidity re- investment $700MM currently yielding 28 bps Replacement of NPLs for performing loans Additional loan growth as economy recovers across our geographies Provision Reduction Currently 120bps 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 POS Terminals, Debit cards, ACH transactions, ATM Terminals Credit costs of $37MM (1) for the first 9 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. Market share expansion of transaction processing FDIC Cost reduction with credit profile improvement ($15 – 20 million annually) |
 Tier 1 Common of $1.2bn or 12.6% and Tier 1 capital of 15.6% Tangible Book Value of $1.1bn or $5.32 / share Deferred Tax Asset Valuation Allowance of $520m; Adjusted Tangible Book Value (3) of $7.83 / share Key Investment Highlights 12 As of September 30, 2013. 1) See reconciliation to net income on page 20. 2) See reconciliation to total equity on page 21. 3) Assuming 100% reversal of Deferred Tax Asset Valuation Allowance of $520m; shares outstanding of 207m. See reconciliation to adjusted tangible book value on page 21. Improving core operating performance Healthy capital levels Continuing de-risking of the balance sheet Opportunity for revenue expansion and earnings growth Total NPAs declined for the 14 consecutive quarter, down over $1bn or 59% since peak in 1Q 2010 Focus remains on organic reductions of non-performing assets th Average pre-tax pre-provision income for the last five quarters of approximately $49m NIM expanded 151 bps since 2009 to 4.20% in 3Q 2013 Stabilization of non-interest expenses; expected reduction in credit-related expense (1) (2) Strong loan origination capabilities ($2.7bn YTD 2013) Potential for NIM expansion through reduction in cost of deposits and replacement of performing for NPLs 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 Long-term potential for value creation from consolidation in Puerto Rico |
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 Outlook on economic growth projections in PR – GNP: -0.03% for FY 2013 and -0.76% for FY 2014 (PR Planning Board) – Real GDP: 1.0% for 2013 and 1.9% for 2014 (Global Insight) August 2013 unemployment rate of 13.9% compared to August 2012 of 14.0% (United States Department of Labor. Bureau of Labor Statistics, Household Survey. Seasonally Adjusted.) Increased tourist activity in first eleven months of fiscal 2013 – Hotel occupancy rate of 72.1% for 2013 YTD compared to average occupancy rate of 69.6% during the same period 2012 (P.R. Tourism Company). 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 Corporate income tax rate increased from 30% to 39% 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 15 Real GDP (1) 1) Source: Global Insight’s Comparative World Overview, Quarterly data. 10.0% 10.5% 5.3% 6.1% 2.4% 3.0% 1.2% 1.6% (2.1%) (3.7%) PR has lagged the US recovery coming out of the credit crisis – 5.0% 10.0% 15.0% 20.0% 2005 2007 2009 2011 2013 2015 U.S. P.R. U.S. projected P.R. projected (10.0%) (5.0%) – 5.0% 2008 2010 2012 2014 2016 U.S. P.R. U.S. projected P.R. projected |
 Puerto Rico Government Exposure 16 As of September 30, 2013 Total asset exposure to the Puerto Rico Government as of September 30, 2013 was just over $395 million In addition, there is $199 million of indirect exposure to the Tourism Development Fund supporting hotel projects. Investment Portfolio 71.0 $ Central Government 48.1 Public Corporations 79.6 Municipalities 199.0 Time Deposits Transaction Accounts Total Federal Funds - $ 12.9 $ 12.9 $ Municipalities 35.4 104.6 140.0 Public Agencies 5.0 184.5 189.4 Public Corporations 240.1 1.5 241.6 Total 280.4 $ 303.5 $ 584.0 $ Total Government Deposits as of September 30, 2013 were $584 million. ($ in millions) |
 Stock Profile 17 Trading Symbol: • FBP Exchange: • NYSE Share Price (11/8/13): • $6.28 Shares Outstanding (as of September 30, 2013): • 207,042,785 Market Capitalization (11/8/13): • $1.30bn 1 Yr. Average Daily Volume: • 654,555 Price (11/8/13) to Tangible Book (9/30/13): • 1.18x Price (11/8/13) to Adjusted Tangible Book (1) (9/30/13): • 0.80x 5% or more Beneficial Ownership Beneficial Owner Amount Percent of Class Entities affiliated with Thomas H. Lee Partners, L.P. 41,854,770 20.2% Entities managed by Oaktree Capital Management, L.P. 41,854,769 20.2 United States Department of the Treasury (2) 20,996,340 10.1 Wellington Management Company, LLP 19,887,328 9.6 1) Assuming 100% reversal of Deferred Tax Valuation Allowance of $520m; shares outstanding of 207m. 2) 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. |
 Capital Position and Asset Quality 18 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 16.9%, 15.6% and 11.7%, respectively. $520 million Deferred Tax Asset Valuation Allowance. 9.5% 9.4% 10.0% 10.0% 9.3% 9.8% 10.2% 10.2% 10.2% 10.1% 9.6% 9.5% 8.4% 5.9% 5.7% 13.3% 13.4% 13.3% 12.0% 12.0% 12.4% 12.4% 17.1% 17.4% 17.3% 17.5% 17.8% 17.4% 16.6% 16.9% 12.0% 12.1% 12.0% 10.7% 10.7% 11.1% 11.1% 15.8% 16.0% 16.0% 16.2% 16.5% 16.2% 15.3% 15.6% 8.4% 8.1% 8.3% 7.6% 7.8% 8.0% 8.4% 11.9% 12.3% 12.5% 12.7% 12.6% 12.1% 11.3% 11.7% 0.0% 6.0% 12.0% 18.0% Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 NPAs / Assets Total Capital Tier 1 Leverage Core franchise is strong |
 Non-performing Assets ($ in millions) 1) Collateral pledged with Lehman Brothers Special Financing, Inc. 19 2009 2010 2011 2012 9/30/2013 Non-performing loans held for investment: Residential mortgage 441,642 $ 392,134 $ 338,208 $ 313,626 $ 142,002 $ Commercial mortgage 196,535 217,165 240,414 214,780 127,374 Commercial & industrial 241,316 317,243 270,171 230,090 127,584 Construction 634,329 263,056 250,022 178,190 64,241 Consumer & finance leases 50,041 49,391 39,547 38,875 37,184 Total non-performing loans held for investment 1,563,863 1,238,989 1,138,362 975,561 498,385 OREO 69,304 84,897 114,292 185,764 133,284 Other repossessed property 12,898 14,023 15,392 10,107 14,125 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 1,235,975 645,794 Non-performing loans held for sale - 159,321 4,764 2,243 80,234 Total non-performing assets 1,710,608 $ 1,561,773 $ 1,337,353 $ 1,238,218 $ 726,028 $ |
  Adjusted Pre-tax, Pre-provision Income Reconciliation 20 ($ in thousands) 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 Income (loss) before income taxes 19,834 $ 16,028 $ (71,011) $ (123,562) $ 19,616 $ Add: Provision for loan and lease losses 28,952 30,466 111,123 87,464 22,195 Add: Net loss on investments and impairments 547 69 117 42 - Less: Unrealized gain (loss) on derivatives instruments and liabilities measured at fair value (170) (432) (400) (708) (232) 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: Secondary offering costs - - - - 1,669 Add: Credit card processing platform conversion costs - - - - 1,715 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 2,199 8,330 5,538 (648) 5,908 Adjusted Pre-tax, pre-provision income 51,362 $ 54,461 $ 50,463 $ 35,895 $ 50,871 $ Quarter Ended |
  Tangible Book Value Per Share Reconciliation 21 ($ in millions, except for per share data) 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 Tangible equity: Total equity - GAAP 1,484 $ 1,485 $ 1,404 $ 1,222 $ 1,221 $ Preferred equity (63) (63) (63) (63) (63) Goodwill (28) (28) (28) (28) (28) Purchased credit card relationship (24) (24) (23) (22) (21) Core deposit intangible (10) (9) (9) (8) (8) Tangible common equity 1,359 $ 1,361 $ 1,282 $ 1,101 $ 1,101 $ Common shares outstanding 206 206 206 207 207 Tangible book value per common share 6.59 $ 6.60 $ 6.21 $ 5.32 $ 5.32 $ Deferred tax valuation allowance 360 $ 360 $ 384 $ 523 $ 520 $ Deferred tax valuation allowance per share 1.75 1.75 1.86 2.53 2.51 Adjusted tangible book value per share 8.34 $ 8.34 $ 8.08 $ 7.85 $ 7.83 $ |
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