 First BanCorp Investor Presentation November 2014 Exhibit 99.1 |
 Disclaimer 1 This presentation may contain “forward-looking statements” concerning the Corporation’s future economic performance. The words or phrases “expect,” “anticipate,” “look forward,” “should,” “believes” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. 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, the following could cause actual results to differ materially from those expressed in, or implied by such forward-looking statements: uncertainty about whether the Corporation and FirstBank 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 “New York Fed”) and the consent order dated June 2, 2010 that FirstBank entered into with the FDIC and the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (the “FDIC Order”) 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 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 FDIC 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 New York Fed or the Board of Governors of the Federal Reserve System (“Federal Reserve Board”) 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, which has contributed and may continue to contribute to, among other things, the high levels of non-performing assets, charge-offs, and provisions and may subject the Corporation to further risk from loan defaults and foreclosures; the ability of FirstBank to realize the benefit of the deferred tax asset; adverse changes in general economic conditions in Puerto Rico, the U.S., and the U.S. Virgin Islands and British Virgin Islands, including the interest rate environment, 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 reduce the Corporation’s revenues, earnings, 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, the current fiscal problems and budget deficit of the Puerto Rico government and recent credit downgrades of the Puerto Rico government; a credit default by the Puerto Rico government or any of its public corporations or other instrumentalities, and recent and/or future downgrades of the long-term debt ratings of the Puerto Rico government, which could adversely affect economic conditions in Puerto Rico; the risk that any portion of the unrealized losses in the Corporation’s investment portfolio is determined to be other-than-temporary, including unrealized losses on Puerto Rico government obligations; uncertainty about regulatory and legislative changes for financial services companies in Puerto Rico, the U.S., and the U.S. Virgin Islands and British Virgin Islands, which could affect the Corporation’s financial condition or performance and could cause the Corporation’s actual results for future periods to differ materially from prior results and anticipated or projected results; changes in the fiscal and monetary policies and regulations of the federal government, including those determined by the Federal Reserve Board, the New York Fed, 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 expenses; the impact on the Corporation’s results of operations and financial condition of acquisitions and dispositions; a need to recognize additional impairments on financial instruments, goodwill, or other intangible assets relating to acquisitions; the 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; the risk of losses in the value of investments in unconsolidated entities that the Corporation does not control; 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. |
 A turn-around story underscored by steady improvement and organic market share gains in the core franchise operating within a challenging macro environment. Strong, tenured leadership team with a commitment to increasing shareholder value, while fulfilling our vision to be the most highly regarded financial institution in the markets we serve. Improving operating results, together with ongoing efforts to improve efficiencies and further build-out our core franchise, are our priorities. Improving our risk profile and maintaining a strong capital position remain central to our operating philosophy. Opportunities for additional branch consolidation and market share expansion. Outlook enhanced by the increasing interest of foreign investment in Puerto Rico and potential benefits for the underlying economy. Share price continues to trail capital formation and profitability as TBV ended 3Q14 at $5.81/share. Our DTA valuation allowance is $505 million, or $2.37/share assuming 100% recapture. 2 The Value of First BanCorp |
 Eastern Caribbean: 7% of Assets 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 US Virgin Islands with approximately 40% market share 164 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 As of September 30, 2014. 1) FTE = Full Time Equivalent. 2) Eastern Caribbean Region or ECR includes United States and British Virgin Islands. 3) Data as of September 30, 2014. Core deposits excludes brokered CDs. 3 Total Assets - $12.6B Total Loans - $9.4B Total Deposits - $9.7B 12 bank branches 1 Loan Production Office SE Florida: 10% of Assets 30% of core deposits (3) 15% of core deposits (3) 12 bank branches 2 First Express branches |
 Franchise Overview ($ 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 6/30/14. 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. 4 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) Portfolio Balance Market Share Portfolio Balance Market Share Portfolio Balance Market Share 1 Banco Popular $25,967 41.1% 1 Banco Popular $18,869 40.1% 1 Banco Popular $18,177 45.5% 2 FirstBank 9,600 15.2% 2 FirstBank 7,869 16.7% 2 Banco Santander 4,954 12.4% 3 Oriental Bank 7,225 11.4% 3 Oriental Bank 5,033 10.7% 3 Oriental Bank 4,430 11.1% 4 Scotiabank 6,126 9.7% 4 Banco Santander 4,735 10.1% 4 FirstBank 3,986 10.0% 5 Banco Santander 6,029 9.5% 5 Scotiabank 4,414 9.4% 5 Scotiabank 3,630 9.1% 6 Doral Bank 4,870 7.7% 6 Other 2,781 5.9% 6 Citibank 2,883 7.2% 7 Citibank 2,825 4.5% 7 Doral Bank 2,588 5.5% 7 Doral Bank 1,430 3.6% 8 Banco Cooperativo 558 0.9% 8 Citibank 591 1.3% 8 Banco Cooperativo 470 1.2% 9 BBU 56 0.1% 9 Banco Cooperativo 175 0.4% 9 BBU 33 0.1% Total $63,255 100% Total $47,054 100% Total $39,991 100% Institutions Institutions Institutions 58 44 100% 40 49 43 1-mile branch overlap (3) |
 5 Diversified business model across all regions Franchise Overview 1) Originations include purchases, refinancings, and draws from existing revolving and non-revolving commitments. • Attractive branch network across densely populated regions in Puerto Rico, south Florida and the V.I. Consumer Banking Mortgage Banking • Average origination (1) volume over past 4 quarters of $269 million. • Earnings growth focused on ongoing market share gains and product penetration via cross- selling activities —notably tied to mortgage, credit cards, personal loans and auto finance. • Well-diversified, high-yielding consumer portfolio: auto finance - #1 market share among banks; personal loans; and credit card portfolio. • Originate, sale & servicing model. • Production channels centered on expanding branch network vs. correspondents/brokers. • Target majority conforming originations . • Fannie, Freddie and FHA Servicer. • Recently purchased prime residential mortgage portfolio of $192 million from in-market competitor. • Average origination (1) volume over the past 4 quarters of $161 million. • Focus on small to middle market commercial and corporate borrowers across FBP’s footprint. Complimented by full suite of deposit and business products. • Balanced risk/return profile to manage concentration risk/earnings. • Growth opportunities centered in south Florida region and expanding lending teams. • Building stronger transaction banking services to target market share opportunities. • Emphasis on cross-sell and core deposit gathering with recent launch of new products and services. • Average origination (1) volume over past 4 quarters of $469 million. Commercial Lending Strong Governance, Risk Management and Compliance Culture • Full suite of leading edge deposit products. Increased emphasis on transaction processing. |
 Executing for Earnings Growth Targeted strategies for growth 6 (1) Solidify leadership position by further increasing customer share of wallet Lending teams generating growth in loan portfolio Continue focus in core deposit growth, commercial and transaction banking and conforming residential mortgages Expansion prospects in Florida given long-term demographic trends FirstBank-branded credit card portfolio continues to broaden and deepen relationships, while diversifying revenue stream Growth in selected loan products for balanced risk/return to manage risk concentration and diversify income sources Largest opportunity on deposit products, electronic banking & transaction services Opportunities for ongoing market share gains Total Loans Total Assets Branches Deposits, net of brokered Small Loans Commercial Loans Auto Loans & Leasing Credit Cards Personal Loans POS Terminals ATM Terminals Debit Cards ACH Transactions 16.7% 15.2% 12.0% 10.0% 21.7% 20.1% 19.2% 17.1% 16.3% 7.6% 18.1% 11.2% 7.0% 3.9% 2Q 2014 2 4 2 2 2 2 4 2 2 4 2 3 3 6 Puerto Rico SE Florida Virgin Islands Puerto Rico Market Share Residential Mortgage 1) Residential Mortgage – based on net volume origination as of 9/30/2014. |
 Improved Profitability; Focus Remains on Credit Third Quarter 2014 Profitability • Net income of $23.2 million, or $0.11 per diluted share, up 9% compared to $21.2 million in 2Q 2014. • Year-over-year 3Q net income increased $7.2 million compared to 3Q 2013 net income of $15.9 million. • Net interest margin decreased by 7 basis points to 4.14%. • Pre-tax, pre-provision income of $50.8 million up from $48.6 million in 2Q 2014. Asset Quality • Total NPAs decreased by $12.9 million compared to 2Q 2014. No large nonperforming loan sales were completed during the quarter. • OREO inventory balance declined $9.0 million due to sales of $12.2 million completed in 3Q 2014. • Inflows to nonperforming loans decreased by $59.1 million or 42% compared to 2Q 2014. • Provision for loan and lease losses of $27.0 million compared to $26.7 million in 2Q 2014 a $0.3 million increase. • Net charge-offs of $42.7 million, including $16.0 million charge-off related to two collateral dependent commercial and industrial relationships in Puerto Rico. Core Deposits • Deposits, net of government and brokered, increased by $76.6 million in 3Q 2014. • Government deposits increased $28.9 million in 3Q 2014. • Brokered certificates of deposit (CDs) decreased by $33.1 million in 3Q 2014. Capital • 3Q 2014 Capital position was further strengthened: • Book value per common share of $6.05 compared to $5.97 in 2Q 2014 and $5.59 in 3Q 2013. • Tangible book value per common share of $5.81 compared to $5.72 in 2Q 2014 and $5.32 in 3Q 2013. • Deferred Tax Asset valuation allowance of $505 million. 7 Risk Based Capital Ratio 18.6% compared to 18.1% in 2Q 2014; Tier 1 Ratio 17.3% compared to 16.8% in 2Q 2014; and Leverage Ratio 12.3% compared to 12.0% in 2Q 2014. |
 Ongoing Improvement in Risk Profile 8 Net Charge-offs (NCO) Non-performing Assets (NPA) NPAs are down over $1 billion, or 56%, since the peak in 1Q 2010. Commercial NPLs are being carried at 57.9% of unpaid principal balance, net of specific reserves. Commercial REOs are carried at approximately 42% of UPB. Focus remains on organic reductions of nonperforming assets including the disposition of $185 million of HFS and OREO. We continue to move many complex credit cases to a position in which the asset can be marketed and sold. (1) ($ in millions) (2) Commercial NPLs (Includes HFS) (3) 2010 2011 2012 2013 2014 1,639 1,551 1,506 1,239 1,233 1,208 1,184 1,138 1,119 1,066 1,008 976 683 506 498 496 522 565 560 150 150 163 163 172 176 188 194 213 242 251 260 256 151 147 175 154 138 130 159 148 95 80 55 55 55 55 1,790 1,701 1,669 1,562 1,410 1,390 1,377 1,337 1,332 1,308 1,259 1,238 1,087 752 726 725 731 757 744 9.5% 10.0% 9.3% 10.2% 10.2% 9.6% 8.4% 5.7% 5.7% 5.7% 6.1% 5.9% $0 $400 $800 $1,200 $1,600 $2,000 1Q 2Q 3Q 4Q 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 63 39 37 29 17 54 38 35 56 52 142 118 67 68 71 186 101 41 7 6 $445 $295 $180 $161 $146 $0 $100 $200 $300 $400 $500 2010 2011 2012 2013 2014 YTD Construction Commercial Consumer Residential Product Book Value Accum. Charge-offs Reserves Net Carrying Amount (4) C&I $130.9 $64.3 $17.7 58.0% CRE 77.9 99.5 3.2 42.1% Const. 176.8 62.7 10.3 69.5% Total $385.6 $226.5 $31.2 57.9% Proactively managing asset quality Excludes $165 million of net charge-offs associated with the bulk sale to CPG in 2010. Excludes $232 million of net-charge offs associated with the bulk asset sales and transfer of loans in 2013. 1) 2) 3) 4) September 30, 2014. Net Carrying Amount = % of carrying value net of reserves and accumulated charge-offs. |
 Despite softening in our market, we continue selectively pursuing high quality loans: Slight increase in residential mortgages. Reduction in the commercial book includes a reduction in outstanding loans to government entities and a C&I loan paid in full in Puerto Rico. Reduction in consumer portfolio reflects a softening of demand in 2014. YTD Origination and renewal activity at healthy levels $2.65 billion compared to the same period 2013 of $2.74 billion: Softening in consumer demand reflected in origination volumes. Consumer originations of $792 million YTD 2014 compared to $877 million same period 2013. Reduction in auto sales is reflected in loan originations. The FL market continues to produce good levels of commercial originations. The FL market increased from 10% to 13% of total commercial loans from 3Q 13 to 3Q 14. Executing within a more challenging market environment in Puerto Rico during 2014 and continue building on Florida growth opportunities. 9 Loan Portfolio 1) Originations include purchases, refinancings, and draws from existing revolving and non-revolving commitments. Business Model Driven by Strong Origination Capabilities Loan Originations (1) ($ in millions) Rebuilding and replacing to achieve higher quality portfolio Loans Held for Sale Commercial Construction Consumer & Finance Leases Residential Mortgage |
 Well Balanced Loan Portfolio Mix 10 Diversified sources of revenue Our well-diversified business model within commercial, consumer and residential across three unique regions allows us to be agile when responding to growth opportunities. Commercial represents 48%, residential represents 30% and consumer represents 22% of the total loan portfolio. 24% of Residential portfolio is located outside of Puerto Rico 40% 3% 54% 3% Commercial Mortgage Construction Commercial & Industrial Floor Plans 76% 12% 12% Puerto Rico South Florida Virgin Islands 54% 12% 15% 10% 5% 2% 2% Auto Lease Finance Credit Card Personal Loans Small Loans Boat Other 3Q 14 Residential Loan by Geography 3Q 14 Commercial Loan Composition 3Q 14 Consumer Loan Composition 1) Loan portfolio mix percentages exclude $80 million loans held for sale. |
 Core deposit growth strategy continues producing positive results; $1.5 billion since 2009. Florida continues to be a strong funding source. Focus remains on cross-selling opportunities. 2014 core deposits declined due to an anticipated reduction in government deposits. Cost of deposits, net of brokered CDs, decreased to 0.72%. Continue to improve by reducing reliance on brokered CDs: $3.1 billion (31% of deposits) today vs. $7.6 billion (60%) in 2009. 11 Core Deposits (1) Total Deposit Composition Cost of Deposits (1) Brokered CDs 32% Non-interest bearing 9% Interest bearing 59% 3Q 2014 1) Total Deposits excluding Brokered CDs. Favorable Funding Mix Shift Successful deposit growth over recent years Brokered CDs 60% Non-interest bearing 6% Interest bearing 34% 4Q 2009 ($ in millions) $- $1,500 $3,000 $4,500 $6,000 $7,500 2009 2010 2011 2012 2013 3Q 2014 2,381 2,477 2,654 2,776 2,842 2,814 774 763 915 1,108 1,136 1,246 1,505 2,090 2,126 2,077 2,054 2,111 448 470 481 529 706 469 $5,108 $5,800 $6,176 $6,490 $6,738 $6,640 Retail Commercial CDs & IRAs Public Funds 1.88% 1.56% 1.34% 0.97% 0.81% 0.72% 0.50% 1.00% 1.50% 2.00% 2009 2010 2011 2012 2013 3Q 2014 Total Deposits, Net of Brokered |
 Income Statement 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 GAAP Net Interest Income 130.9 $ 132.7 $ 131.3 $ 129.9 $ 127.7 $ Provision for loan and lease losses 22.2 23.0 31.9 26.7 27.0 Non-interest income 16.0 18.4 18.0 16.6 16.2 Equity in (losses) gains of unconsolidated entities (5.9) (5.9) (6.6) (0.7) - Non-interest expense 99.2 106.5 92.8 98.1 93.6 Pre-tax net income 19.6 15.6 18.0 21.0 23.3 Income tax (expense) benefit (3.7) (0.8) (0.9) 0.3 0.1 Net income 15.9 $ 14.8 $ 17.1 $ 21.2 $ 23.2 $ Adjusted Pre-tax pre-provision earnings 50.9 $ 47.6 $ 56.9 $ 48.6 $ 50.8 $ Net Interest Margin, (GAAP) (%) 4.20% 4.25% 4.27% 4.21% 4.14% Net income per common share-basic 0.08 $ 0.07 $ 0.08 $ 0.11 $ 0.11 $ Tangible book value per common share 5.32 $ 5.30 $ 5.48 $ 5.72 $ 5.81 $ Improving Core Performance Opportunities for earnings growth ($ in millions, except per share results) 1) See reconciliation on page 20. (1) 12 Opportunity for revenue expansion and earnings growth Potential for NIM expansion as low interest rate environment effects both liquidity reinvestment and floating rate loan yields. Additional income opportunities through replacement of NPLs with performing loans and reduced provisioning needs. Future earnings potential with a reduction in high costs associated with managing NPLs and OREO. Potential for additional loan growth opportunities as macro environment in Puerto Rico improves. Long-term potential for value creation from consolidation in Puerto Rico. Net income of $23.2 million in 3Q 2014; highest net income since return to profitability. Pre-tax pre-provision income of $50.8 million (1) average 5 quarters of $51 million. |
 Earnings Continue to Drive Capital Growth 13 Healthy capital levels 1) See reconciliation to total equity on page 21. 2) Tier 1 Common of $1.3 billion or 14.4% and Tier 1 capital of 17.3%. Book value per common share of $6.05 compared to $5.59 in 3Q 2013. Tangible book value per common share of $5.81 (1) compared to $5.32 in 3Q 2013. Deferred Tax Asset Valuation Allowance of $505m; Adjusted Tangible Book Value (2) of $8.18 / share. Assuming 100% reversal of Deferred Tax Asset Valuation Allowance of $505m; shares outstanding of 213m. See reconciliation to adjusted tangible book value on page 21. 16.9% Total Risk Based Capital 18.1% 18.6% 12.6% Tier 1 Common 13.9% 14.4% 8.7% Tangible Common 9.8% 9.8% 6.5% 9.0% 11.5% 14.0% 16.5% 19.0% 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 |
 A turn-around story underscored by steady improvement and organic market share gains in the core franchise operating within a challenging macro environment. Strong, tenured leadership team with a commitment to increasing shareholder value, while fulfilling our vision to be the most highly regarded financial institution in the markets we serve. Improving operating results, together with ongoing efforts to improve efficiencies and further build-out our core franchise, are our priorities. Improving our risk profile and maintaining a strong capital position remain central to our operating philosophy. Opportunities for additional branch consolidation and market share expansion. Outlook enhanced by the increasing interest of foreign investment in Puerto Rico and potential benefits for the underlying economy. Share price continues to trail capital formation and profitability as TBV ended 3Q14 at $5.81/share. Our DTA valuation allowance is $505 million, or $2.37/share assuming 100% recapture (1) . 14 The Value of First BanCorp 1) See reconciliation on page 21 |
 Appendix |
 2009 3Q 2014 Change ('09-'14) % improvement NPAs $1,711 $744 $966 56% NPAs/assets 8.7% 5.9% 282 bps Tier 1 Common 4.1% 14.4% 1029 bps 120% TCE / TA 3.2% 9.8% 662 bps 98% Core deposits $5,108 $6,640 $1,532 30% NIM 2.69% 4.14% 145 bps Our Turnaround Story ($ in millions) De-Risking of Balance Sheet Capital Enhanced Franchise Value 16 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 2014 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. (1) (1) (1) (1) August 2013: Completed secondary offering reducing ownership interest of U S Treasury and PE Investors 2013 September 2014: Achieved five consecutive quarters of profitability. Average PPPT income over five quarters $51 million September 2014: UST announced on September 9 its first predefined written trading plan, in which it will be selling it’s position in FBP. th |
 Non-performing Assets 1) Collateral pledged with Lehman Brothers Special Financing, Inc. 17 ($ in thousands) 2009 2010 2011 2012 2013 1Q 2014 2Q 2014 3Q 2014 Non-performing loans held for investment: Residential mortgage 441,642 $ 392,134 $ 338,208 $ 313,626 $ 161,441 $ 172,796 $ 175,404 $ 185,025 $ Commercial mortgage 196,535 217,165 240,414 214,780 120,107 145,535 166,218 169,967 Commercial & industrial 241,316 317,243 270,171 230,090 114,833 113,996 143,669 130,917 Construction 634,329 263,056 250,022 178,190 58,866 50,387 38,830 30,111 Consumer & finance leases 50,041 49,391 39,547 38,875 40,302 39,061 40,510 43,496 Total non-performing loans held for investment 1,563,863 1,238,989 1,138,362 975,561 495,549 521,775 564,631 559,516 OREO 69,304 84,897 114,292 185,764 160,193 138,622 121,842 112,803 Other repossessed property 12,898 14,023 15,392 10,107 14,865 15,587 16,114 17,467 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 1,235,975 670,607 675,984 702,587 689,786 Non-performing loans held for sale - 159,321 4,764 2,243 54,801 54,755 54,755 54,641 Total non-performing assets 1,710,608 $ 1,561,773 $ 1,337,353 $ 1,238,218 $ 725,408 $ 730,739 $ 757,342 $ 744,427 $ |
  Quarterly Migration Trends ($ in thousands) 18 Residential Mortgage Commercial Mortgage Commercial & Industrial Construction Consumer Total Beginning balance 175,404 $ 166,218 $ 143,669 $ 38,830 $ 40,510 $ 564,631 $ Plus: Additions to non-performing 35,645 11,985 13,967 122 19,392 81,111 Less: Non-performing loans transferred to OREO (2,216) (1,058) (2,124) (749) (103) (6,250) Non-performing loans charged-off (4,445) (2,292) (17,570) (7,689) (13,773) (45,769) Loans returned to accrual status / collections (19,363) (4,886) (7,025) (403) (2,530) (34,207) Ending balance 185,025 $ 169,967 $ 130,917 $ 30,111 $ 43,496 $ 559,516 $ Residential Mortgage Commercial Mortgage Commercial & Industrial Construction Consumer Total Beginning balance 172,796 $ 145,535 $ 113,996 $ 50,387 $ 39,061 $ 521,775 $ Plus: Additions to non-performing 29,981 36,039 54,557 1,791 17,891 140,259 Less: Non-performing loans transferred to OREO (1,083) (575) (2,041) (45) - (3,744) Non-performing loans charged-off (3,965) (13,422) (12,449) (2,509) (11,231) (43,576) Loans returned to accrual status / collections (22,325) (1,359) (10,394) (10,794) (5,211) (50,083) Ending balance 175,404 $ 166,218 $ 143,669 $ 38,830 $ 40,510 $ 564,631 $ September 30, 2014 June 30, 2014 |
  Puerto Rico Government Exposure 19 As of September 30, 2014 ($ in millions) Total asset exposure to the Puerto Rico Government as of September 30, 2014 was $377 million a $91.4 million decrease from 4Q 2013. In addition, there is $200 million of indirect exposure to the Tourism Development Fund supporting hotel projects. Total Government Deposits as of September 30, 2014 were $251 million. Time deposits declined $238 million compared to 4Q 2013. Transaction accounts decreased $57.4 million compared to 4Q 2013. Government Unit Time Deposits Transaction Accounts Total Federal Funds - $ 8.9 $ 8.9 $ Municipalities 20.6 117.2 137.7 Public Agencies 2.2 100.6 102.8 Public Corporations - 1.3 1.3 Total Deposits 22.7 $ 228.1 $ 250.8 $ Total Government Unit Outstanding Investment Portfolio 61.1 $ Central Government: Commonwealth Appropriations 17.0 Federal Funds 7.7 Total Central Government (3 Loans) 24.8 Public Corporations: Operating Revenues 86.1 Rental Income 4.0 Total Public Corporations (3 Loans) 90.1 Municipalities (9 Loans) Property Tax Revenues 201.4 Total Direct Government Exposure 377.4 $ Source of Repayment |
  (1) Offering of common stock by certain of the Corporation's existing stockholders. (2) Represents the impact of the national gross receipts tax corresponding to the first quarter of 2013, recorded during the second quarter after enactment of Act No. 40. (3) Represents the impact of the national gross receipt tax related to the trade or business outside of Puerto Rico that was reversed in the fourth quarter after enactment of Act No. 117. Adjusted Pre-tax, Pre-provision Income Reconciliation 20 ($ in thousands) 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Income (loss) before income taxes 19,616 $ 15,634 $ 17,970 $ 20,949 $ 23,264 $ Add: Provision for loan and lease losses 22,195 22,969 31,915 26,744 26,999 Add: Net loss on investments and impairments - - - (291) 245 Less: Unrealized gain (loss) on derivatives instruments and liabilities measured at fair value (232) (355) (313) (262) (418) Add: Acquisition of mortgage loans from Doral related expenses - - - 576 659 Add: Secondary offering costs (1) 1,669 - - - - Add: Credit card processing platform conversion costs 1,715 - - - - Add: National gross receipt tax (2) - - - - - Less: National gross receipt tax - outside Puerto Rico (3) - (473) - - - Add: Branch consolidations and other restructuring expenses/valuation adjustments - 1,421 718 236 - Add: Write-off collateral pledged to Lehman and related expenses - 2,500 - - - Add: Equity in losses (earnings) of unconsolidated entities 5,908 5,893 6,610 670 - Adjusted pre-tax, pre-provision income 50,871 $ 47,589 $ 56,900 $ 48,622 $ 50,750 $ Quarter Ended |
 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Tangible equity: Total equity - GAAP 1,221 $ 1,216 $ 1,256 $ 1,306 $ 1,324 $ Preferred equity (63) (63) (57) (36) (36) Goodwill (28) (28) (28) (28) (28) Purchased credit card relationship (21) (20) (19) (18) (17) Core deposit intangible (8) (7) (7) (6) (6) Tangible common equity 1,101 $ 1,098 $ 1,145 $ 1,218 $ 1,237 $ Common shares outstanding 207 207 209 213 213 Tangible book value per common share 5.32 $ 5.30 $ 5.48 $ 5.72 $ 5.81 $ Deferred tax valuation allowance 520 $ 523 $ 519 $ 511 $ 505 $ Deferred tax valuation allowance per share 2.51 2.53 2.48 2.40 2.37 Adjusted tangible book value per share 7.83 $ 7.83 $ 7.97 $ 8.12 $ 8.18 $ Tangible Book Value Per Share Reconciliation 21 ($ in millions, except for per share data) 1) Assuming 100% recapture of valuation allowance. (1) |
 Stock Profile 22 Trading Symbol: • FBP Exchange: • NYSE Share Price (10/31/14): • $5.21 Shares Outstanding (as of September 30, 2014): • 212,977,588 Market Capitalization (10/31/14): • $1.1 billion 1 Yr. Average Daily Volume: • 807,290 Price (10/31/14) to Tangible Book (9/30/14): • 0.90x Price (10/31/14) to Adjusted Tangible Book (1) (9/30/14): • 0.64x 5% of more Beneficial Ownership Beneficial Owner Amount Percent of Class Entities affiliated with Thomas H. Lee Partners, L.P. 41,851,067 19.7% Entities managed by Oaktree Capital Management, L.P. 41,851,066 19.7 United States Department of the Treasury (2) 20,966,340 9.8 1) Assuming 100% reversal of Deferred Tax Valuation Allowance of $505m; shares outstanding of 213m. 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. |