EXHIBIT 99
[1FIRST BANCORP LOGO]
ANNIE ASTOR-CARBONELL
SENIOR EXECUTIVE VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER
(787) 729-8088
FIRST BANCORP REPORTS EARNINGS
INCREASE OF 96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR
SAN JUAN, PUERTO RICO, JANUARY 21, 2004--FIRST BANCORP (NYSE:FBP), THE
SECOND LARGEST PUERTO RICO FINANCIAL HOLDING COMPANY WITH DIVERSIFIED BANKING
OPERATIONS IN PUERTO RICO AND THE US AND BRITISH VIRGIN ISLANDS, REPORTED TODAY
RECORD EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR 2003.
NET INCOME WAS $54,954,947 OR $1.12 PER SHARE BASIC AND $1.09 PER SHARE
DILUTED, FOR THE FOURTH QUARTER OF 2003, AS COMPARED TO EARNINGS OF $27,970,880
OR 53 CENTS PER SHARE BASIC AND 52 CENTS PER SHARE DILUTED, FOR THE FOURTH
QUARTER OF 2002. THESE RESULTS REPRESENT AN EARNINGS INCREASE OF 96.5% FOR THIS
QUARTER. RETURN ON ASSETS (ROA) AND RETURN ON COMMON EQUITY (ROCE) WERE 1.84%
AND 35.00% RESPECTIVELY, FOR THE QUARTER, AS COMPARED TO 1.16% AND 21.08%
RESPECTIVELY, FOR THE SAME QUARTER OF 2002. AVERAGE COMMON
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 2
SHARES USED TO CALCULATE EARNINGS PER SHARE FOR THE FOURTH QUARTER WERE
40,018,176 (BASIC) AND 41,212,785 (DILUTED).
THE YEAR ENDED DECEMBER 31, 2003 WAS ANOTHER RECORD YEAR FOR FIRST
BANCORP, WITH EARNINGS OF $152,338,342 OR $3.04 PER SHARE (BASIC) AND $2.98 PER
SHARE (DILUTED), AS COMPARED TO $107,956,351 OR $2.04 PER SHARE (BASIC) AND
$2.01 PER SHARE (DILUTED), AN EARNINGS INCREASE OF 41.1% FOR THE YEAR 2003. ROA
AND ROCE FOR THE FULL YEAR 2003 WERE 1.46% AND 25.20% RESPECTIVELY, AS COMPARED
TO 1.23% AND 21.90% RESPECTIVELY, FOR 2002. AVERAGE COMMON SHARES OUTSTANDING
FOR THE YEAR WERE 39,994,454 (BASIC) AND 40,983,175 (DILUTED). EARNINGS FOR THE
FOURTH QUARTER AND FULL YEAR 2003 INCLUDE A $18,840,065 OR 46 CENTS PER SHARE
DILUTED (NET OF TAX), GAIN ON THE SALE OF A LARGE PART OF THE SUBSIDIARY BANK'S
CREDIT CARD PORTFOLIO, AS PART OF A NEW MARKETING STRATEGIC ALLIANCE WITH MBNA
CORPORATION, WHICH IS FURTHER EXPLAINED IN A SEPARATE PRESS RELEASE ISSUED
TODAY. EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR 2003, EXCLUDING THE AFTER
TAX EFFECT OF SUCH GAIN, ARE AS FOLLOWS: NET EARNINGS FOR THE FOURTH QUARTER,
$36,114,882 OR 65 CENTS (BASIC) AND 63 CENTS (DILUTED), 29.1% INCREASE IN
EARNINGS FOR
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 3
THE 2003 FOURTH QUARTER; NET EARNINGS FOR THE FULL YEAR 2003, $133,498,277, OR
$2.57 PER SHARE (BASIC) AND $2.52 PER SHARE (DILUTED). MAIN PROFITABILITY RATIOS
FOR THE SAME PERIODS, EXCLUDING THE AFTER TAX EFFECT OF THE GAIN ON THE SALE OF
A LARGE PART OF THE CREDIT CARD PORTFOLIO, WERE: RETURN ON ASSETS, 1.21% FOR THE
FOURTH QUARTER OF 2003, AND 1.28% FOR THE FULL YEAR 2003; RETURN ON COMMON
EQUITY FOR THE FOURTH QUARTER OF 2003, 20.30% AND 21.31% FOR THE FULL YEAR 2003;
AND THE EFFICIENCY RATIO, 43.86% FOR THE QUARTER, AND 43.15% FOR THE FULL YEAR
2003.
THE EARNINGS INCREASE (EXCLUDING THE AFTER TAX EFFECT OF THE GAIN ON
THE SALE MENTIONED ABOVE) IS ATTRIBUTABLE MOSTLY TO INCREASES IN THE
CORPORATION'S NET INTEREST INCOME AND OTHER INCOME NET OF AN INCREASE IN
OPERATING EXPENSES. COMMENTING ON THE YEAR 2003 ACHIEVEMENTS, MR. ANGEL
ALVAREZ-PEREZ, CEO OF FIRST BANCORP SAID, "2003 WAS A CHALLENGING YEAR, AS
RELATED TO INTEREST RATES AND THE GENERAL ECONOMIC ENVIRONMENT. NOTWITHSTANDING
THIS, WE HAVE EARNED RECORD PROFITS, THROUGH THE CONTINUOUS GROWTH OF OUR LOAN
PORTFOLIOS, ESPECIALLY
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 4
COMMERCIAL AND RESIDENTIAL LOANS AND MAINTAINING LOW DELINQUENCIES IN A
DIFFICULT ECONOMIC ENVIRONMENT, ESPECIALLY IN THE CONSUMER PORTFOLIOS. IN
ADDITION DURING THIS YEAR, WE RESTRUCTURED OUR INVESTMENT PORTFOLIO WHICH
ENABLED US TO RECORD SUBSTANTIAL PROFITS ON THE SECURITIES SOLD, WHILE AT THE
SAME TIME GAVE US THE OPPORTUNITY TO REINVEST IN A MORTGAGE BACKED SECURITIES
PORTFOLIO WITH MORE ATTRACTIVE YIELDS AND SHORTER MATURITIES."
NET INTEREST INCOME INCREASED BY $25.4 MILLION FOR THE YEAR, TO END THE
YEAR AT $292.2 MILLION. THE INCREASE IN NET INTEREST INCOME FOR THE YEAR IS THE
RESULT OF VOLUME INCREASES OF $1,571 MILLION IN THE CORPORATION'S AVERAGE LOAN
AND INVESTMENT PORTFOLIOS. NET INTEREST INCOME WAS $84.0 MILLION FOR THIS
QUARTER, AS COMPARED TO $68.7 MILLION FOR THE FOURTH QUARTER OF 2002 AND $71.9
MILLION FOR THE THIRD QUARTER OF 2003. DURING THE FOURTH QUARTER THE NET
INTEREST INCOME ON INVESTMENTS, INCREASED AS A RESULT OF THE PORTFOLIO
RESTRUCTURING COMPLETED DURING THE THIRD QUARTER OF THE YEAR 2003.
NET INTEREST MARGIN (ON A TAX EQUIVALENT BASIS) WAS 3.32% AND 3.24% FOR
THE FOURTH QUARTER AND FULL YEAR 2003,
FIRST BANCORP REPORTS EARNINGS INCREASE
OF 96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 5
RESPECTIVELY, AS COMPARED TO 3.10% AND 3.56% FOR THE FOURTH QUARTER AND FULL
YEAR 2002, RESPECTIVELY. THE DECREASE FOR THE YEAR IS MAINLY DUE TO LOWER NET
YIELD ON THE CORPORATION'S MORTGAGE BACKED SECURITIES PORTFOLIOS EXPERIENCED
DURING THE PERIOD ENDED SEPTEMBER 30, 2003. THE INCREASE FOR THE FOURTH QUARTER
RESULTS FROM THE PORTFOLIO RESTRUCTURING AND INVESTMENTS IN MORTGAGE BACKED
SECURITIES MENTIONED ABOVE.
DURING 2003 THE CORPORATION EXPERIENCED SOLID ASSET GROWTH, ENDING THE
YEAR WITH ASSETS OF $12,668 MILLION, UP 31.4% FROM TOTAL ASSETS AS OF DECEMBER
31 2002 OF $9,644 MILLION. DEPOSITS WERE $6,765 MILLION AS OF DECEMBER 31, 2003,
AS COMPARED TO $5,483 MILLION AS OF DECEMBER 31, 2002. LOANS INCREASED TO $7,045
MILLION AS OF DECEMBER 31, 2003, AN INCREASE OF 25%, WHEN COMPARED TO $5,638
MILLION AS OF DECEMBER 31, 2002, MOSTLY AS A RESULT OF AN INCREASE OF $341
MILLION IN COMMERCIAL LOANS AND $1,025 MILLION IN RESIDENTIAL REAL ESTATE LOANS.
CONSUMER LOANS AND FINANCE LEASES INCREASED BY $40 MILLION.
ANOTHER FACTOR CONTRIBUTING TO THE RECORD FINANCIAL RESULTS WAS THE
STABLE WRITE-OFFS OF OUR LOAN PORTFOLIO DURING THE YEAR.
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 6
LOAN LOSSES (NET WRITE-OFFS) WERE $10.8 MILLION FOR THE FOURTH QUARTER, (0.63%
OF AVERAGE LOANS) SLIGHTLY OVER THE $10.1 MILLION (.74% OF AVERAGE LOANS) FOR
THE FOURTH QUARTER OF 2002 AND $10.1 MILLION (0.63% OF AVERAGE LOANS) FOR THE
IMMEDIATELY PRECEDING THIRD QUARTER OF 2003. FOR THE TOTAL YEAR NET WRITE-OFFS
WERE $41.4 MILLION (0.66% OF AVERAGE LOANS), AS COMPARED TO $41.5 MILLION DURING
2002, (.87% OF AVERAGE LOANS). NON-PERFORMING LOANS AT YEAR END WERE $85.5
MILLION OR 1.21% OF TOTAL LOANS, LOWER IN ABSOLUTE DOLLAR AMOUNT AND AS A
PERCENTAGE OF LOANS, WHEN COMPARED TO $91.8 MILLION OR 1.63% OF TOTAL LOANS, AS
OF DECEMBER 31, 2002, AND $85.7 MILLION OR 1.28% OF TOTAL LOANS AS OF SEPTEMBER
30, 2003, THE PREVIOUS QUARTER END. THE RESERVE COVERAGE RATIO (ALLOWANCE FOR
LOAN LOSSES TO NON-PERFORMING LOANS) WAS 147.8% AS OF DECEMBER 31, 2003, AS
COMPARED TO 121.9% FOR DECEMBER 31, 2002 AND 143.6% FOR SEPTEMBER 30, 2003. THE
ALLOWANCE FOR LOAN LOSSES INCREASED TO $126.4 MILLION AS OF DECEMBER 31, 2003,
FROM $123.0 MILLION AS OF SEPTEMBER 30, 2003 AND $111.9 MILLION AS OF DECEMBER
31, 2002. THE INCREASE
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 7
CORRESPONDS TO A HIGHER COMMERCIAL LOAN PORTFOLIO AND CURRENT ECONOMIC
CONDITIONS.
OTHER OPERATING INCOME WAS $50.4 MILLION FOR THE FOURTH QUARTER OF
2003. EXCLUDING THE GAIN ON THE SALE OF A LARGE PART OF THE CREDIT CARD
PORTFOLIO OF $30.9 MILLION (BEFORE TAX), OTHER OPERATING INCOME WAS $19.5
MILLION, AS COMPARED TO $16.0 MILLION FOR THE FOURTH QUARTER OF 2002 AND $19.1
MILLION FOR THE THIRD QUARTER OF 2003. THE INCREASE OF $3.5 MILLION, WHEN
COMPARED TO FOURTH QUARTER 2002 IS MOSTLY ATTRIBUTABLE TO $2.9 MILLION HIGHER
NET GAINS ON SALE OF INVESTMENTS AND DERIVATIVE INCOME (LOSS).
THE CORPORATION, MAINLY THROUGH ITS SUBSIDIARY BANK, HAS MAINTAINED A
BETTER THAN AVERAGE EFFICIENCY RATIO OF 33.78% AND 39.91% (43.86% AND 43.15%
EXCLUDING THE GAIN ON SALE OF A LARGE PART OF THE CREDIT CARD PORTFOLIO) FOR
FOURTH QUARTER AND THE YEAR 2003, RESPECTIVELY, WHILE IT HAS INVESTED
SIGNIFICANTLY IN STATE OF THE ART TECHNOLOGY AND INFRASTRUCTURE TO PROVIDE THE
LATEST IN DELIVERY CHANNELS FOR FINANCIAL PRODUCTS AND SERVICES. OPERATING
EXPENSES WERE $45.4 MILLION FOR THE FOURTH QUARTER 2003, AS COMPARED TO EXPENSES
OF $36.4 MILLION
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 8
DURING THE FOURTH QUARTER OF 2002, AND $39.9 MILLION OF EXPENSES DURING THE
PREVIOUS THIRD QUARTER OF 2003. THE HIGHER OPERATING EXPENSES DURING THE LAST
QUARTER, AS COMPARED TO THE THIRD QUARTER, ARE RELATED TO THE LAUNCHING OF A NEW
IMAGE CAMPAIGN, THE LAUNCHING OF FIRST MORTGAGE, THE NEW BANK SUBSIDIARY
DEDICATED TO MORTGAGE ORIGINATION, ADVERTISING RELATED TO A NEW DEPOSIT PRODUCT
"CUENTA PERFECTA", YEAR END INCENTIVE BONUSES, AND HIGHER SUPERVISORY
EXAMINATION FEES, SINCE THESE FEES ARE BASED ON ASSET SIZE. EXPENSE INCREASES
FOR THE WHOLE YEAR INCLUDE THE FOURTH QUARTER INCREASES, PLUS THE REGULAR
SALARY, OCCUPANCY AND TECHNOLOGY EXPENSE INCREASES NECESSARY TO MAINTAIN THE
INFRASTRUCTURE OF THE CORPORATION'S PRODUCTS AND SERVICES. EXPENSES ALSO INCLUDE
THE COST OF VIRGIN ISLANDS OPERATIONS, ACQUIRED ON OCTOBER 15, 2002.
FIRST BANCORP IS A $12.7 BILLION WELL-CAPITALIZED FINANCIAL
HOLDING COMPANY. IT IS THE PARENT COMPANY OF FIRSTBANK PUERTO RICO, WHICH IS THE
SECOND LARGEST COMMERCIAL BANK IN PUERTO RICO AND VIRGIN ISLANDS AND OF
FIRSTBANK INSURANCE AGENCY. BOTH, FIRST BANCORP AND FIRSTBANK PUERTO RICO,
OPERATE WITHIN US BANKING LAWS AND REGULATIONS. THE
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 9
BANK OPERATES A TOTAL OF 99 FINANCIAL SERVICE FACILITIES THROUGHOUT PUERTO RICO
AND THE US AND BRITISH VIRGIN ISLANDS, INCLUDING THE OPERATIONS OF ITS
SUBSIDIARIES. IN PUERTO RICO THE BANK OPERATES: MONEY EXPRESS, A FINANCE
COMPANY, FIRST LEASING AND CAR RENTAL, A CAR AND TRUCK RENTAL AND LEASING
COMPANY AND FIRSTMORTGAGE, A MORTGAGE BANKING COMPANY. IN THE US AND BRITISH
VIRGIN ISLANDS, THE BANK OPERATES AN INSURANCE AGENCY, FIRSTBANK INSURANCE
AGENCY VI, FIRST TRADE INC., A FOREIGN CORPORATION MANAGEMENT COMPANY, AND FIRST
EXPRESS, A FINANCE COMPANY.
THE CORPORATION'S COMMON AND PREFERRED SHARES TRADE ON THE NEW YORK
STOCK EXCHANGE, UNDER THE SYMBOLS FBP, FBPPRA, FBPPRB, FBPPRC, FBPPRD, AND
FBPRE.
THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD-LOOKING STATEMENTS"
CONCERNING THE CORPORATION'S ECONOMIC FUTURE PERFORMANCE. THE WORDS OR PHRASES
"EXPECT", "ANTICIPATE", "LIKELY", "LOOK FORWARD", "SHOULD", "PROBABLY", AND
SIMILAR EXPRESSIONS ARE MEANT TO IDENTIFY "FORWARD-LOOKING STATEMENTS" WITHIN
THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
FIRST BANCORP REPORTS EARNINGS INCREASE OF
96.5% FOR THE QUARTER AND 41.1% FOR THE YEAR PAGE 10
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 REGIONAL AND NATIONAL
ECONOMIC CONDITIONS, CHANGES IN INTEREST RATES, COMPETITIVE AND REGULATORY
FACTORS AND LEGISLATIVE CHANGES, COULD AFFECT THE CORPORATION'S FINANCIAL
PERFORMANCE AND COULD CAUSE THE CORPORATION'S ACTUAL RESULTS FOR FUTURE PERIODS
TO DIFFER MATERIALLY FROM THOSE ANTICIPATED OR PROJECTED.
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.
FIRST BANCORP
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA
THREE MONTHS ENDED TWELVE MONTHS ENDED
------------------------------------------------ -----------------------------
DECEMBER 31, DECEMBER 31, SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
2003 2002 2003 2003 2002
------------ ------------ ------------- ------------ ------------
INTEREST INCOME:
Loans $ 99,719 $ 96,115 $ 98,762 $ 389,722 $ 351,839
Investments 47,600 41,249 34,856 146,959 188,194
--------- --------- --------- --------- ---------
Total interest income 147,319 137,364 133,618 536,681 540,033
--------- --------- --------- --------- ---------
INTEREST EXPENSE:
Deposits 28,287 33,305 28,036 112,541 133,235
Borrowings 35,058 35,341 33,686 131,930 139,949
--------- --------- --------- --------- ---------
Total interest expense 63,345 68,646 61,722 244,471 273,184
--------- --------- --------- --------- ---------
Net interest income 83,974 68,718 71,896 292,210 266,849
--------- --------- --------- --------- ---------
PROVISION FOR LOAN LOSSES 14,152 14,001 12,600 55,916 62,302
--------- --------- --------- --------- ---------
Net interest income after provision
for loan losses 69,822 54,717 59,296 236,294 204,547
--------- --------- --------- --------- ---------
OTHER INCOME:
Service charges on deposit accounts 2,380 2,251 2,202 9,527 9,200
Other fees on loans 5,334 6,015 5,282 20,617 21,441
Mortgage banking activities 640 369 432 3,014 3,540
Net gain on sale of investments 6,651 3,899 4,384 34,856 12,000
Derivative (loss) gain (420) (600) 1,154 619 (4,062)
Rental Income 615 555 579 2,224 2,285
Gain on sale of credit cards portfolio 30,885 30,885
Other operating income 4,322 3,551 5,103 16,968 14,088
--------- --------- --------- --------- ---------
Total other income 50,407 16,040 19,136 118,710 58,492
--------- --------- --------- --------- ---------
OTHER OPERATING EXPENSES:
Employees' compensation and benefits 20,494 16,297 18,195 75,213 59,432
Occupancy and equipment 9,637 8,290 9,042 36,394 29,015
Business promotion 4,300 1,795 2,691 12,415 9,304
Taxes, other than income taxes 1,977 1,800 1,920 7,405 6,857
Insurance and supervisory fees 1,254 755 726 3,730 2,804
Other 7,729 7,455 7,285 28,837 25,344
--------- --------- --------- --------- ---------
Total other operating expenses 45,391 36,392 39,859 163,994 132,756
--------- --------- --------- --------- ---------
INCOME BEFORE INCOME TAX 74,838 34,365 38,573 191,010 130,283
INCOME TAX PROVISION 19,883 6,394 6,889 38,672 22,327
--------- --------- --------- --------- ---------
NET INCOME $ 54,955 $ 27,971 $ 31,684 $ 152,338 $ 107,956
========= ========= ========= ========= =========
NET INCOME APPLICABLE TO
COMMON STOCK $ 44,849 $ 21,220 $ 24,933 $ 121,979 $ 81,550
========= ========= ========= ========= =========
NET INCOME PER COMMON SHARE - BASIC $ 1.12 $ 0.53 $ 0.62 $ 3.04 $ 2.04
========= ========= ========= ========= =========
NET INCOME PER COMMON SHARE - DILUTED $ 1.09 $ 0.52 $ 0.61 $ 2.98 $ 2.01
========= ========= ========= ========= =========
DIVIDENDS DECLARED PER COMMON SHARE $ 0.11 $ 0.10 $ 0.11 $ 0.44 $ 0.40
========= ========= ========= ========= =========
FIRST BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------
ASSETS
Cash and due from banks $ 89,305 $ 108,306
------------ ------------
Money market instruments 705,940 251,660
------------ ------------
Federal funds sold and securities purchased
under agreements to resell 265,000 22,000
------------ ------------
Investment securities available for sale, at market:
United States and Puerto Rico Government obligations 16,157 28,772
Mortgage backed securities 1,086,891 2,512,606
Corporate bonds 53,770 133,742
Equity investment 62,320 41,654
------------ ------------
Total investment securities available for sale 1,219,138 2,716,774
------------ ------------
Investment securities held to maturity, at cost:
United States and Puerto Rico Government obligations 1,119,775 638,174
Mortgage backed securities 1,970,855
Corporate bonds 39,847 64,432
------------ ------------
Total investment securities held to maturity 3,130,477 702,606
------------ ------------
Federal Home Loan Bank (FHLB) stock 45,650 35,630
------------ ------------
Loans receivable :
Commercial Loans 2,832,635 2,491,358
Finance Leases 161,283 143,412
Consumer Loans 1,171,590 1,149,014
Residential Loans 2,879,010 1,854,068
------------ ------------
Total loans receivable 7,044,518 5,637,852
Allowance for loan losses (126,378) (111,911)
------------ ------------
Total loans, net 6,918,140 5,525,941
Other real estate owned 4,617 2,938
Premises and equipment, net 85,269 87,595
Accrued interest receivable 41,508 39,282
Other assets 162,866 151,120
------------ ------------
Total assets $ 12,667,910 $ 9,643,852
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 6,765,107 $ 5,482,918
Federal funds purchased and securities sold
under agreements to repurchase 3,650,297 2,793,540
Advances from FHLB & Subordinated Notes 995,818 455,815
Accounts payable and other liabilities 167,119 113,155
------------ ------------
11,578,341 8,845,428
------------ ------------
Stockholders' equity:
Preferred Stock 550,100 360,500
------------ ------------
Common stock outstanding 40,027 39,955
Additional paid - in capital 269 --
Capital Reserve and Legal Surplus 243,107 219,345
Retained earnings 220,038 145,243
Accumulated other comprehensive income 36,028 33,381
------------ ------------
1,089,569 798,424
------------ ------------
Total liabilities and stockholders' equity $ 12,667,910 $ 9,643,852
============ ============
BOOK VALUE PER COMMON SHARE $ 13.48 $ 10.96
============ ============
FIRST BANCORP
SELECTED FINANCIAL DATA
(UNAUDITED)
DOLLARS IN THOUSANDS
December 31, 2003 December 31, 2002
----------------- -----------------
CREDIT QUALITY DATA AT:
Non-performing Assets $100,771 $104,675
-------- --------
Non-performing Loans 85,525 91,765
-------- --------
Past Due Loans 23,493 24,435
-------- --------
Allowance for Loan Losses 126,378 111,911
-------- --------
Non-performing Assets to Total Assets 0.80% 1.09%
-------- --------
Non-performing Loans to Total Loans 1.21% 1.63%
-------- --------
Allowance to Non-Performing Loans 147.77% 121.95%
-------- --------
Three Months Ended Three Months Ended Year Ended
December 31, September 30, December 31,
2003 2002 2003 2003 2002
----------- ----------- ----------- ----------- -----------
SELECTED PERFORMANCE RATIOS:
Net Interest Yield (1) 3.32% 3.10% 2.93% 3.24% 3.56%
----------- ----------- ----------- ----------- -----------
Return on Assets 1.84% 1.16% 1.14% 1.46% 1.23%
----------- ----------- ----------- ----------- -----------
Return on Equity 20.69% 14.66% 15.00% 17.06% 14.90%
----------- ----------- ----------- ----------- -----------
Return on Common Equity 35.00% 21.08% 20.67% 25.20% 21.90%
----------- ----------- ----------- ----------- -----------
Net Write offs to Average Loans 0.63% 0.74% 0.63% 0.66% 0.87%
----------- ----------- ----------- ----------- -----------
Efficiency Ratio 33.78% 42.94% 43.79% 39.91% 40.81%
----------- ----------- ----------- ----------- -----------
AVERAGE BALANCES:
Assets $11,958,774 $ 9,681,233 $11,093,765 $10,430,262 $ 8,748,222
----------- ----------- ----------- ----------- -----------
Earnings Assets 11,627,166 9,391,837 10,679,453 10,077,446 8,506,828
----------- ----------- ----------- ----------- -----------
Loans 6,887,854 5,423,346 6,466,821 6,291,937 4,773,363
----------- ----------- ----------- ----------- -----------
Deposits 6,601,516 5,323,973 6,097,961 5,861,346 4,744,960
----------- ----------- ----------- ----------- -----------
Interest-bearing liabilities 10,258,656 8,375,600 9,597,063 8,939,851 7,655,393
----------- ----------- ----------- ----------- -----------
Stockholders Equity 1,062,619 763,219 845,051 892,760 724,514
----------- ----------- ----------- ----------- -----------
Common Stockholders Equity 512,519 402,719 482,490 483,951 372,343
----------- ----------- ----------- ----------- -----------
(1) On a taxable equivalent basis.
The following table provides a reconciliation of financial information, as
reported under generally accepted accounting principles (GAAP), to information
excluding the effect of the after tax gain on sale of a large part of the
Corporation's credit card loans. This information has also been given on this
Press Release narrative. Management believes this presentation is useful to
investors as it provides information excluding the effect of the gain on this
sale.
FIRST BANCORP
PRESS RELEASE
(UNAUDITED)
FISCAL YEAR ENDED DECEMBER 31, 2003
2003 4TH
2003 4TH 2003 4TH 2003 4TH 2003 4TH QUARTER
EARNINGS QUARTER QUARTER QUARTER QUARTER EFFICIENCY
FOR QUARTER BASIC EPS DILUTED EPS ROA ROCE RATIO
------------ --------- ----------- -------- -------- ----------
Under GAAP as reported $ 54,954,947 $1.12 $1.09 1.84% 35.00% 33.78%
Effect of the gain on the sale of a large
part of the subsidiary bank's credit card loans (18,840,065) (0.47) (0.46) -0.63% -14.70% 10.08%
------------ ----- ----- ---- ----- -----
Excluding effect stated above $ 36,114,882 $0.65 $0.63 1.21% 20.30% 43.86%
------------ ----- ----- ---- ----- -----
2003
2003 2003 2003 2003 ANNUAL
EARNINGS ANNUAL ANNUAL ANNUAL ANNUAL EFFICIENCY
FOR YEAR BASIC EPS DILUTED EPS ROA ROCE RATIO
------------- --------- ----------- ------ ------ ----------
Under GAAP as reported $ 152,338,342 $3.04 $2.98 1.46% 25.20% 39.91%
Effect of the gain on the sale of a large part
of the subsidiary bank's credit card loans (18,840,065) (0.47) (0.46) -0.18% -3.89% 3.24%
------------- ----- ----- ---- ----- -----
Excluding effect stated above $ 133,498,277 $2.57 $2.52 1.28% 21.31% 43.15%
------------- ----- ----- ---- ----- -----