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First BanCorp. .
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The Yagrumo leaffeaturedin the 2000 Annual Report,
symbolizesour beliefin conservationof naturalresourcesand our commitment
to customers’banking needs.We have made a commitment to promotethe environ-
mentalqualityof Puerto
Ricoby supportingthe PuertoRicoConservationTrust.
The Yagrumo treegrows
abundantly,as our commitment to servecustomers.
The flexibilityofitswood isa symbol ofour capabilityto adaptto changingneeds.
Itsumbrella-likeleavesrepresentourdiversificationofservices.Itscapacity
to bloom and givefruityearround,isa symbol ofinnovationand constant
evolution.The harmony ofitsleaves,shows our determinationto ofFer
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the bestquality,personalservice.
At FirstBan Corpwe believein Ikeepinga perfectbalancewith our mission
2
t . as a leadingfinancialinstitutionand the well-beingofthe community.
t
i “inthousands (except for per share results)
[-----... . _._--.=.-.=.....=.............................
OPERQTING
RESULTS:
net interest income
provision for loan losses
other income
other operating expenses
income tax prow”sion
net income
per common share:
net income - basic
net income - diluted
QUERfiGE
COMMON
SHQRES:
WEIGHTED
........... -e.
basic
diluted
1,49
.......=.
.
1,48
-..
+.
...
—.-=
-,.,...-
:~=:.: +.,..
.,..,,
,-.=..:.-
~.––..
.=
.=;.
----
.“..
.:..
—e;
__.:..,,
.:;
1998 1999
2000
returnon assets
[’ii’
[[
1998 1999
2000
per common
market price
share
$190,773
45,718
50,032
113,050
14,761
67,276
2.22
2.21
.
26,943
27,145
..,
-.
.—=-
;-.
..-
—.
<’
[
-..
.
-..
$185,733
~
47,960
32,862
101,272
\
(
;
;
7,288
.!
..
62,075
;’
2.00
~
1.98
28,941
29,199
$1.74 $109E
—:—
—.~... ----
&-
—=
....
—.
.....
—
-—..
.T:
[[
199;
-:
.-
_..-
-.,
_----
‘.
-----
1999
dilutedearnings:
per common
share
.
—
. . .__.
2000
.—
..
fiT VERH END:
.
assets
loans
allowanceforloanLosses
investments
deposi~
borrowings
capital
$5,919,657
3,498,198
76,919
2,233,216
3,345,984
2,069,484
434,461
$4,721,568
2,745,368
71,784
3,811,164
2,565,422
1,803,729
294,902
20,54
$185.7
$270,4
19.96
.
returnon corn[mon equity
1996
2000
net interestincome
—.
cornrnnn stockholders’
equity
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1. Aguada
2. Aguadilla
3. Isabela
16. Humacao
17. Caguas
18. AguasBuenas
4. San Sebastian
19. Cidra
5. Arecibo
6. Manati
20. Guaya,ma
21. Cayey
7. Vega Baja
22. Barranquitas
8. Dorado
9. Toa Baja
10. Bayam6n
11. Guaynabo
12. San Juan”
13. Caro[ina
23. Ponce
24. Utuado
25. Yauco
26. Cabo Rojo
27. Mayagtiez
28. SaintThomas
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BRANCH
MONEY EXPRESS
48
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FIRST LEASING &RENTAL CORP
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AUTO LOAN CENTER
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MORTGAGE LOAN CENTER
15. Fajardo
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FirstBanCorp(theCorporation),incorporatedinPuertoRico,istheholdingcompany forFirstBank
(theBank),thesecond largestlocal[yowned commercialbank in PuertoRico.FirstBanCorp,a
FinancialHoldingCompany which operatesprimarilyin the PuertoRicobankingmarket,had
totalassetsof $5.9 billionas of December 31,2000. The Corporationoffersa wide selection
offinancialservicesto a growingnumber ofconsumerand commercialcustomers.Commercial
loans,consumerloans,mortgageloansand investmentoperationsarethe most importantareas
ofitsbusiness.
The Corporationhas a $1.6 billionportfolioof commercialloans,commercial mortgages,
constructionloansand otherrelatedcommercialproducts.Itscommercialclientsincludebusi-
nessescoveringa wide rangeofeconomicactivities.FirstBanCorphas a $747 millionportfolio
ofresidentialmortgages.The institutionalsohas $1.2billionin consumerloans,concentrated
in auto loansand leases,personalloansand creditcards.Its$2.2billioninvestmentportfolio
consistsmostly of U.S.government securitiesand mortgage backed securities.Through a
strategicalliance”with PaineWebber, FirstBanCorp’offersbrokerageservicesin-itslargest
branches.Approximately1,650professionalsand a sophisticatedcomputerizedsystemsupport
the businessactivitiesofthe Corporation.
Firstcharteredin 1948, FirstBanCorp was the firstsavingsbank establishedin PuertoRico,
under the name of “FirstFederalSavingsand Loan Association”.It has been a stockholder
owned institutionsince1987.In October,1994,itbecame a PuertoRicocharteredcommercial
bank and assumed the name of “FirstBank”.EffectiveOctober1, 1998,theBank reorganized,
making FirstBanka subsidiayofthe holdingcompany FirstBanCorp.
FirstBanCorp,which isa well-capitalizedinstitutionunderfederalstandards,operates48 full
servicebranchesincludingfourofficesinthe U.S.VirginIslands.The Corporationalsohas an
auto loan center,a personalloan centerand fourmortgage loan centersin PuertoRico.A
secondtiersubsidiayof FirstBanCorp,Money Express,operates26 smallloanofficesthrough-
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out PuertoRico.FirstBanCorp alsohas a second tiersubsidiaryknown as FirstLeasingand
RentalCorp.which rentsand leasesmotor vehiclesfrom itssixofficesin PuertoRico.
FirstBanCorp has distinguisheditselfby providinginnovativemarketingstrategiesand novel
productsto attractclients.Besidesitsmain branchesand specializedlendingofFices,the Cor-
porationhas offereda telephoneinformationservicecal[ed“Telebanco”since1983.Thiswas
the firsttelebankingserviceofferedin PuertoRico.FirstBanCorp clientshave accessto an
extensiveATM networkcoveringthe U.S.VirginIslands,the U.S.mainlandand the restofthe
world.The Corporationwas alsothe firstin PuertoRicoto open on weekends and the firstto
offerin-storebranchesto itsctients.FirstBanCorp was alsothe firstbankinginstitutionin
PuertoRicowith a presenceon the internet.The Corporationoffersa wide menu of internet
bankingservicesto itsclients.
FirstBanCorpand itssubsidiariesaresubjectto supe~”sion,examinationand regulationby the
FederalReserveBoard,the FederalDepositInsuranceCorporationand the Commissionerof
FinancialInstitutionsof PuertoRico.
FirstBanCorpiscommittedto providingthe most efficientand costeffectivebankingse~”ces
possible.Management’sgoalisto be the premierfinancialinstitutionin PuertoRicoand a
leaderin financialproductsand services.FirstBanCorp’sManagement works constantlyto
exceedthe expectationsofitsstockholders,clientsand employees.
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TO OUR STOCI+HOI-OERS:
AngelAlvarez-P6rez,President
On behalfof the Board of Directorsand staffof First
BanCorpI am pleasedto submitourannualreportfor
2000, another record year.In 2000, FirstBanCorp
earned$67.3 million,representing$2.22 per common
share (basic)and $2.21 percommon share(diLuted).
These earningscompare favorablywith 1999, when
the Corporationearned $62.1 million,which came to
$2.00 per common share(basic)or $1.98 percommon
share(diluted).Netincome increased8.4°/0and diluted
.
earnings per share rose 11.6°/0 in 2000. These
achievements continued our record of consistent
.
earningsgrowth.
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GFICIUJTH9NCI DIUERSIFIC9T1CIN
Profitsgrew inspiteof highinterestratesduring2000.The growthofthe loanportfolio,strict
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controlsoveroperatingcosts,and increasesinotherincome allhelpedto make thisperformance
possible.
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Our businessgrew substantiallyin 2000.Totalassetsincreased250/. from $4.7 billionat the
end of 1999 to $5.9billionon December 31,2000. Loansgrew by $753 million.Much ofthis
growthtookplaceincommercial,constructionand commercialmortgagelending,whichexpanded
by $431 million.Residentialmortgage loansaLsogrew $27 million.Thispatternof growth
providesadditionaldiversificationin the loan portfolio,which used to be concentratedin
consumer lending.Consumer loansand leaseswere 570/.of the loan portfolioat the end of
1997,comparedwith33°/0atDecember31,2000.We aremaintaininghighunderwritingstandards
in alllendingareas.
To supportfuturegrowth,First’BanCorpissued$75 mitlionofadditiona[preferredstockduring
2000. Thisissuancebringstota[preferredstockto $165 mil,lion,a[[owingthe Corporationto
maintainstrongcapitalratiosas itcontinuesgrowing.
Duringthe pastyearourefficiencyratioaveraged46.950/.,almostthesame asthevey favorab[e
46.330/.of1999. Otherincome increasedby $17.2mi[[ion,ofwhich $6.5mi[lionwere gainson
the sa~eofinvestments.The remaining$10.7 mi[[ionrepresentedadditiona[servicesprovided
by the Corporationinc[udinginvestmentbanking,servicesto commercia[clients,and others.
We expectfeeincome to grow as we increasethe sophisticationof the servicesofferedwhi[e
deliveringthem to a growingbase ofclients.
IMPROUING SERUICETIICORPCIR9TECLIENTS
During1999,we took severa[stepsto expand commerciallending,inc[udingthe recruitmentof
seniorexecutivesfrom major money centerbanks with [oca[experienceand established
relationships.In mid-1999 the Corporationacquiredthe PuertoRicooperationsof the Roya[
Bank of Canada.Thistransactiongave us a seasoned portfo[ioof comrnercia[loansand an
establishedbranchin Hato Rey,the commercialand financia[centerofthe Island.
‘ In 2000 we bui[ton”theseachievements,expandingthe commercia[portfolioand improving
corporateservices.The Corporationoffersan extensivemenu of servicesto corporatec[ients.
We provideinternationallettersofcredit,a VISAcorporate.creditcard,directdepositofpayro[[,
servicepointofsa[etransactions,and a se[ectionofcashmanagement accounts.Achievingthis
levelofse~”ce has requiredcontinua[investment in new and more sophisticatedtechnology.
We arecommitted to providingstateofthe’artse~icesto a[[of our corporatecustomers.
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