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Chairman’s Message Annual Stockholders Meeting April 19, 2014

FCB continued to perform well in 2013 and is cautiously optimistic for 2014. FCB shareholders also continue to receive an above market return on their investments. Our solvency and liquidity continue to be significantly better than our competitors and this is for the protection of our depositors. FCB will always manage for optimum performance rather than reckless growth.

There were two major calamities in 2013: a 7.2 magnitude earthquake and super typhoon Yolanda. A calamity brings the best and the worst out of people. I believe that as an organization, FCB was able to stand the test of character. FCB provided assistance to the calamity victims but did not publicize its role.

FCB was able to resume operations immediately after the earthquake and typhoon such that our customers got access to financial services, despite a very challenging environment. Even in Tacloban, FCB was one of the few banks that was able to resume operations far ahead of the others. The capability of the bank to respond well to adversity is not by chance. Our Disaster Recovery Plan enabled the bank to prepare for contingencies, and the dedication of our staff enabled us to implement such a program.

The world economy is expected to grow at 3% for 2014, anchored by the recovery of developed countries such as the US, Europe, and Japan. China and India will also continue to grow. Countries in East Asia continue to have good economic growth. However, there are global risks and certain countries will have adverse conditions.

The year 2014 will be challenging but the Philippine economy is still expected to grow at 6%. Some institutions have forecasted even higher growth rates. The US has started to taper off its stimulus program which will result in a reduction of the funds available for an emerging economy like the Philippines. The tapering off, expected slight increase in interest rates, and inflation will have a slight impact on growth. An increase in interest rates is expected. OFW, BPO, and consumer consumption will continue to be the major economic contributors for 2014. The real estate and construction industry will continue its frenzied activities but demand is expected to slow down.

FCB should now get ready for the impact of ASEAN on the Philippine economy. We believe that our strategies, infrastructure, and personnel will enable us to compete even in a more competitive market. As financial transactions become more global, the Philippine banks become dwarves against international banks if based on size. Size, too big to manage, and too much leverage are a dangerous combination. Productivity and the quality of service have always been the most important factors in ensuring sustainability.

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I am very appreciative to the customers, shareholders and employees who have made FCB what it is today. We are cautiously optimistic for 2014 and expect continued growth of the business.

We thank the Lord for all the blessings and support.

Respectfully yours,

Richard Uy Chairman

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President’s Report

2013: Another Year of Sustained Growth

The year 2013 yielded another year of sustained growth of the bank, amid intense competition in the banking industry and the slow global recovery. It was another year of achievement based on our defined strategy of growth.

Despite the series of calamities in 2013, I am indeed happy to report to you that the First Consolidated Bank continues to post sustained growth in all financial indicators and the opportunities for sustained growth in the years ahead are already in place.

The 7.2 magnitude earthquake and Super typhoon Yolanda brings out the best in FCB’s people and resources and put to test our Disaster Recovery and Preparedness Program with flying colors. We were among the first to resume operation both in Bohol and Tacloban, the epicenters of these twin calamities.

FCB’s management focused on its continuing core mandate of efficiently serving and managing the trilateral relationship between the various needs of our human resources, clients and the stockholders to better serve the community and the environment we operate. We take to heart our triple bottom line approach of sustained revenue growth, environmental concerns and social equity and development.

Our continuing investment in human resource development, information and communication technology modernization and upgrading of products and services to meet the needs of the community enabled the bank to maximize market share in our areas of operation.

The bank continued to open new branches and marketing centers in growth centers and the countryside where we can address the financial needs of a wider clientele. The bank strengthened its financial services and opened new products that are needed in the service areas. It has invested in more automated teller machines (ATMs) and electronic fund transfer/point of sale (EFT/POS) terminals.

The bank focused on its core businesses, doing business in the countryside and growth centers and catering to the retail markets, consumer market, agriculture sector, and micro, small and medium enterprises. In line with its commitment, the bank has continued to serve as a catalyst for development in the countryside and growth centers.

FCB made a strong financial performance and also increased its investments on people and community, particularly in the field of health, education, and livelihood. Its investments in people and the communities have created areas of opportunity in bringing together the interest of the bank and the communities.

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FINANCIAL HIGHLIGHTS

Despite the continuing global economic uncertainties, peace and order problems, and natural disasters, the Philippine economy made a lot of economic progress. With these backdrops, FCB has continued to perform far better than the industry and has attained increases in revenues, net income, and growth in assets and loans.

The bank’s financial results continue to be better than industry averages in the Philippine banking system, as shown in the financial highlights below:

For the year 2013 2012

Revenues P1,256,306,583 P1,208,581,291 Net Income P353,914,406 P288,596,439 Earnings per Common Share P229 P187 Return on Average Assets 3.60% 3.39% Return on Average Equity 17.48% 16.89% Net Interest Margin 9.93% 10.19% Risk-based Capital Adequacy Ratio 24.20% 27.36%

At the end 2013 2012

Total Assets P10,548,688,049 P10,343,447,582 Total Loans (net) P6,336,145,165 P6,136,788,658 Total Deposits P6,510,870,331 P5,537,561,420 Total Shareholders’ Equity P2,237,836,700 P1,880,948,702 Book Value per Common Share P1,444.80 P1,214.32 Common Shares Issued and Outstanding 1,544,752 1,543,312

ASSETS

As of end of December 2013, the bank’s total Assets reached P 10.548 billion, registering an increase of P205 million, or 1.98 percent.

Loans and Discounts, Held to Maturity Investments and Due from Bangko Sentral ng Pilipinas accounted for 78.65% of total assets. The rest came from increases in Cash and Other Cash Items; Due from Other Banks; Sales Contract Receivable; Bank Premises; Computer Software; Deferred Tax Assets and Other Assets.

Table 1. Comparative Assets of the Bank, 2013 and 2012. December 31 Increase/Decrease ASSETS 2013 2012 Amount % Cash and Other Cash Items P480,358,004 P410,572,496 P69,785,508 17.00% Due from BSP 1,953,563,397 2,420,910,701 -467,347,304 -19.30% Due from Other Banks 638,482,188 285,006,780 353,475,408 124.02%

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Loans & Disc (net) 6,336,145,165 6,136,788,658 199,356,507 3.25% Held to Maturity Investments 7,076,736 7,915,440 -838,704 -10.60% Bank Premises, Furniture 512,963,110 503,622,828 9,340,282 1.85% and Fixtures and Equipment Investment Properties (net) 230,640,609 317,645,881 -87,005,272 -27.39% Sales Contracts Receivable (net) 54,241,720 42,721,172 11,520,548 26.97% Computer Software - net 12,399,050 11,724,609 674,441 5.75% Deferred Tax Assets 137,175,349 127,943,537 9,231,812 7.22% Other Assets -net 185,642,721 78,595,480 107,047,241 136.20% Total Assets P10,548,688,049 P10,343,447,582 205,240,467 1.98%

CASH AND OTHER CASH ITEMS DUE FROM BSP AND OTHER BANKS

Cash and other Cash Items increased by P70 million, or 17 percent, over the balance in 2012 due to higher level of cash requirement at year-end. Due from BSP went down to P1.9 billion or a decrease of P467 million or -19.30% over the balance of the same period in the previous year as part of efficiently managing the liquid funds mix to best serve the need of the bank. Due from other banks went up by 124.02% or P353 million over its balance in the previous year as part of maximizing revenues while maintaining the liquidity equilibrium for the bank.

HELD TO MATURITY INVESTMENTS

Held to Maturity Investments decreased by P838 thousand or -10.60% as part of the bank’s overall liquidity management strategy.

OTHER ASSETS

Other Assets (net) of the bank increased by 136.2% as the outstanding balance of the account in the previous year with only P78.59 million.

LOANS

The bank posted an increase in its Loan Investments. The growth in loan investments was 199.36 million compared to the previous year. Total loan investments reached P6.336 billion, from P6.136 billion in the previous year. Customer acceptability of FCB credit products continues to be sustained.

Loan investments were evenly distributed to agriculture, wholesale and retail trade, manufacturing, consumer and real estate. The rest of the loan investments were in education, services and utilities.

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The loan investments were spread widely to 101,129 loan borrowers and were distributed to the agriculture sector, the consumer markets and small and medium enterprises in the countryside.

The bank continues to support the growth of small and medium enterprises (SMEs) through salary loans, motor vehicle loans, housing loans, and loans for other purposes. It remains committed to the financial needs of the retail market, which supports livelihood projects and consumption in the countryside.

The bank’s loans to small and medium enterprises exceeded the prescribed ratio of compliance under the Magna Carta Law for Enterprises of eight percent for small enterprises and two percent for medium enterprises of total loans. Loan investments to micro/small and medium enterprises were 18.60% percent and 3.40% percent respectively, of total outstanding loans.

BANK PREMISES, FURNITURE, FIXTURES AND EQUIPMENT

The Bank Premises, Furniture, Fixtures and Equipment increased by P9.340 million in 2013. The bank constructed three additional branch offices in Roxas City, Capiz; Lambunao, Iloilo and in Masbate City. The bank has installed more Automated Teller Machines (ATMs) and Electronic Fund Transfer/Point of Sale terminals.

INVESTMENT PROPERTIES

The Investment Properties consist of land and buildings acquired by the Bank in settlement of loans through foreclosures and rescinded sales contracts receivables. These reduced by 27.39 percent, from P318 million in 2012 to P231 million in 2013. The goal of the bank is to continuously trim down its Investment Properties to below industry levels.

ASSET QUALITY

The bank has continued to improve the quality of its assets. Most of its liquid funds are in cash and high-grade investments at BSP.

LIABILITIES AND CAPITAL ACCOUNTS

LIABILITIES

The bank’s total liabilities and capital funds increased by P205 million, or 1.98 percent in 2013, over its outstanding liabilities and capital funds as of end of December 2012. The increase was largely due to growth in Deposits; Income Tax Payable; and Other Liabilities and Capital Funds.

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Table 2. Liabilities and Capital Funds, 2013 and 2012. December 31 Increase/Decrease LIABILITIES AND CAPITAL FUNDS 2013 2012 Amount % Deposit liabilities P6,510,870,331 P5,537,561,420 973,308,911 17.58% Bills and loans payable 1,076,131,720 2,278,703,204 1,202,571,484 -52.77% Accrued taxes, interest & other 211,921,006 222,195,048 -10,274,042 -4.62% expenses Income tax payable 40,974,592 26,168,953 14,805,639 56.58% Deferred tax Liabilities 1,998,598 1,525,461 473,137 31.02% Other liabilities 468,955,102 396,344,794 72,610,308 18.32% TOTAL LIABILITIES 8,310,851,349 8,462,498,880 -151,647,531 -1.79% Capital funds 2,237,836,700 1,880,948,702 356,887,998 18.97% TOTAL LIABILITIES AND P10,548,688,049 P10,343,447,582 205,240,467 1.98% CAPITAL FUNDS

DEPOSITS

Overall, the bank’s Deposits grew by P973 million, or 17.58 percent, from P5.537 billion in the previous year to P6.511 billion this year. All of the bank’s deposit products during the year increased above budget. Seventy seven percent of the total deposits were in savings deposit, and the rest in time certificate of deposit, and demand deposit.

The bank’s total number of deposit accounts has reached 312,458 in 2013, an increase of 34,389 or 12 percent, from 278,069 in the previous year.

BILLS AND LOANS PAYABLE

The bank’s Bills Payable decreased by 52.77 percent, from P2.278 billion in 2012 to P1.076 billion in 2013. The reduction is due to bank’s conscious decision to shift funding source from rediscounting to deposits which continued to grow at double digits.

ACCRUED TAXES, INTEREST AND OTHER EXPENSES

Accrued taxes, Interest and Other Expenses decreased by P10 million, or -4.62 percent, compared to that of the previous year.

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CAPITAL

The Capital of the bank grew by P357 million, or 18.97 percent, as a result of bigger Net Income After Tax (NIAT) generated for the period. The bank’s capital increased from P1.881 billion in 2012 to P2.238 billion in 2013.

Table 3. Comparative Capital Accounts, 2013 and 2012. December 31 Increase/Decrease CAPITAL 2013 2012 Amount % Capital Stock P163,432,315 P163,291,608 P140,707 .09% Paid-in Surplus and 382,885,350 228,281,150 154,604,200 67.73% Reserves Surplus (free) 1,691,519,035 1,489,375,944 202,143,091 13.57% TOTAL P2,237,836,700 P1,880,948,702 356,887,998 18.97%

CAPITAL ADEQUACY

The bank’s capital adequacy “risk-weighted” ratio continues to be strong at 24.20% in year 2013. It is significantly higher than the top Philippine banks for the year, and well above the minimum requirement of 10 percent set by Bangko Sentral ng Pilipinas.

This means that FCB has a strong solvency ratio, which is very important for depositors as a gauge of which bank to place their deposits. FCB has sufficient reserves for its deposits in its book, on top of sizable committed lines of credit and has more than enough capital to fund new loan requirements and other asset growth.

INCOME/EXPENSES

INCOME

Income of the bank reached P1.256 billion, from P1.208 billion in 2012, registering an increase of 3.95 percent. Income was derived mainly from interest income on loans and investments.

INTEREST INCOME

A great percentage of its total revenue, or 90 percent, still came from interest income on loans and discounts, investments with Bangko Sentral, deposits from banks, micro-finance loans, and other loans, among others.

NON-INTEREST INCOME

The rest of total revenue came from non-interest income such as, gains on sale of acquired assets, rental of bank properties, service charges, fees and commissions, and miscellaneous.

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EXPENSES

Expenses of the bank decreased by 6.08 percent, from P810 million in the previous year to P761 million this year.

Thirty-four percent of its expenses came from interest on deposits and interest on borrowed funds. The rest went to compensation/fringe benefits, occupancy and equipment- related expenses, provisions, taxes and licenses, advertising expenses and other operating expenses.

INTEREST EXPENSE

Interests on deposits and borrowed funds have decreased by P14.26 million or 5.29 percent. This comprised 34 percent of total expenses.

NON INTEREST EXPENSE

Non-Interest Expenses have increased by P20.09 million, or 4.39 percent. Compensation/Fringe benefits have also increased by P16.9 million or 11 percent of total non- interest expenses, as a result of increases in compensation and fringe benefits of employees.

Non-interest expenses, namely compensation/fringe benefits, occupancy and equipment- related expenses, taxes and licenses, entertainment, amusement and recreational expenses, and other operating expenses took up about 66 percent of total expenses.

Table 4. Income and Expenses, 2013 and 2012. Revenues/Expenses December 31 Increase/Decrease 2013 2012 Amount % Total Revenues P1,256,306,583 P1,208,581,291 47,725,292 3.95% Total Expenses 760,916,135 810,133,877 -49,217,742 -6.08% Net Income Before Tax 495,390,448 398,447,414 96,943,034 24.33% Net Income After Tax P353,914,406 P 288,596,439 65,317,967 22.63%

NET INCOME / PROFITABILITY

The bank’s Net Income After Tax (NIAT) rose to P354 million or an increase of 22.63 percent over that of the previous year. Through the years, its NIAT has been increasing. Earnings per share amounted to P229 and P187 in 2013 and 2012, respectively. The ROE of 17.48 % is higher than the industry averages on a consistent basis.

DIVIDEND

On February 14, 2014, the Bank’s Board of Directors approved the Board Resolution No. 62-2014 declaring 15% Cash Dividend to holders of Common Shares and 2% to holders of

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Preferred Shares, to all FCB Stockholders on record as of January 31, 2014. The above dividend declaration was approved by the Bangko Sentral ng Pilipinas on March 21, 2014.

PRODUCTS AND SERVICES

The bank continued with its core products and services. However, with improvement in its information and communication facilities, the bank has added more products and services during the year. In fact, the bank is now capable of introducing more products and services as needed by its service areas.

The new products and services of the bank include several enhancement of the savings account, special checking account, automated teller machines (ATMs), electronic fund transfer/point of sale (EFTPOS), PITAKArd, payroll account and bills payment, among others.

BRANCHES, MARKETING CENTERS, FACILITIES, OTHERS

The bank continued with its efforts to provide quality services to its customers. Its capital expenditures this year were focused on acquisition of land for new branch sites; improvement in the Head Office and branches; and upgrading of computers and peripherals, furniture and fixtures.

BRANCHES

As of December 31, 2013, FCB has 63 branches. Recently, *3 branches were opened in the first quarter of the year. By the end of 2014, another 7 additional branches are scheduled to be opened in the different growth centers in the country as approved by the BSP. FCB has now 66 branches nationwide, as follows:

Branches Locations

1. FCB Abuyog Brgy. Loyongsawang, Abuyog, Leyte 2. FCB Aborlan Nat’l. Highway, Brgy. Gogognan, Aborlan, Palawan 3. FCB Antequera Poblacion, Antequera, Bohol 4. FCB Baclayon Poblacion, Baclayon, Bohol 5. FCB Bataraza Poblacion, Bataraza, Palawan 6. FCB Bato Jose Rizal St., Poblacion, Bato, Leyte 7. FCB Bayugan Rotunda, Bayugan, Agusan del Sur 8. FCB Butuan City Rosales Ave., Butuan City 9. FCB Brooke’s Point National Highway, Brooke’s Point, Palawan 10. FCB Cabadbaran Highway, Cabadbaran, Agusan del Norte 11. FCB Cagayan de Oro City CM Recto, Cagayan de Oro City, Misamis Oriental 12. FCB Calapan 144 A. Bonifacio St., Brgy. Ilaya, Calapan City 13. FCB Carmen Poblacion, Carmen, Bohol 14. FCB Catarman JP Rizal St., Brgy. Sampaguita, Catarman, Northern Samar 15. FCB Catigbian Poblacion, Catigbian, Bohol 16. FCB Cortes Poblacion, Cortes, Bohol 17. FCB Dapitan City Hiway, Brgy. Dawo, Dapitan City, Zamboanga del Norte 18. FCB Davao City Km 9, Sasa, Davao City 19. FCB Dipolog City Magsaysay Ave., Dipolog City, Zamboanga del Norte

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20. FCB Dumaguete City Barangay Junob, Dumaguete City, Negros Oriental 21. FCB El Nido Zone1 Amboy St., El Nido, Palawan 22. FCB Estancia E. Reyes Ave., Estancia, Iloilo 23. FCB General Santos City Pendatun Ave., General Santos City, South Cotabato 24. FCB Getafe Poblacion, Getafe, Bohol 25. FCB Guindulman Poblacion, Guindulman, Bohol 26. FCB Guinobatan Del Pilar St., Guinobatan, Albay 27. FCB Iloilo City West Diversion Rd, Jaro, Iloilo City 28. FCB Inabanga Poblacion, Inabanga, Bohol 29. FCB Jagna Poblacion, Jagna, Bohol 30. FCB Kalibo ACP Zaraspe Bldg. Roxas Ave., Ext., Kalibo, Aklan 31. FCB Lambunao* Lambunao Public Market, Ladrido St., Pob. Ilaya, Lambunao, Iloilo 32. FCB Lazi Tigbawan, Lazi, Siquijor 33. FCB Legaspi City National Highway, Binanoan, Legaspi City, Albay 34. FCB Loay Poblacion, Loay, Bohol 35. FCB Loon Poblacion, Loon, Bohol 36. FCB Mandaue City A.C. Cortes cor Burgos St., Mandaue City 37. FCB Maramag Poblacion, Maramag, Bukidnon 38. FCB Masbate City* Crossing St., Brgy. F. Magallanes, Masbate City 39. FCB Molave Rizal St., Molave, Zamboanga del Sur 40. FCB Narra National Highway. Narra, Palawan 41. FCB Ozamis City Anselmo Bernad Ave., Ozamis City, Misamis Occidental 42. FCB Pilar Poblacion, Pilar, Bohol 43. FCB Prosperidad Marketside, Prosperidad, Agusan del Sur 44. FCB Puerto Princesa City Km 2 Highway, Puerto Princesa City 45. FCB Quezon National Highway, Quezon, Palawan 46. FCB Roxas City, Capiz* Lawaan, Roxas City, Capiz 47. FCB Roxas Sandoval St., Roxas, Palawan 48. FCB Sagbayan Poblacion, Sagbayan, Bohol 49. FCB San Jose Bantayan St., Barangay 2, San Jose, Antique 50. FCB Sierra Bullones Poblacion, Sierra Bullones 51. FCB Siquijor Poblacion, Siquijor, Siquijor 52. FCB Sofronio Española Pulot Center, Sofronio Española, Palawan 53. FCB Surigao Vasquez/Rizal St., Surigao City, Surigao del Norte 54. FCB Tacloban City Maharlika Highway, Tacloban City, Leyte 55. FCB Tagbilaran City Square H. Grupo St., Tagbilaran City 56. FCB Tagbilaran Cogon CPG Ave., Cogon District, Tagbilaran City 57. FCB Tagbilaran Downtown MH Del Pilar St., Tagbilaran City 58. FCB Tagum City Pagsubangan cor Sta Cruz Sts., Tagum City, Davao del Norte 59. FCB Talibon Poblacion, Talibon, Bohol 60. FCB Tandag Napo, National Highway, Bagong Lungsod, Tandag City 61. FCB Taytay Rizal St., Poblacion, Taytay, Palawan 62. FCB Trento Poblacion, Trento, Agusan del Sur 63. FCB Trinidad Poblacion, Trinidad, Bohol 65. FCB Ubay Poblacion, Ubay, Bohol 66. FCB Valencia Poblacion, Valencia, Bohol

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Just recently, new branches in Lambunao, Iloilo & in Roxas City, Capiz were simultaneously inaugurated last January 14, 2014. The ribbon – cutting ceremonies were attended by FCB Directors, Branch Managers, FCB Staff, Businessmen and Professionals in the city.

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MARKETING CENTERS

The bank has maintained its 30 Marketing Centers: 1. Bacolod City, Negros Occidental 16. Masbate City, Masbate 2. Baybay, Liloy, Zamboanga del Norte 17. Mati, Davao Oriental 3. Boac, Marinduque 18. Naga City, Camarines Sur 4. Borongan, Eastern Samar 19. Odiongan, Romblon 5. Calapan, Oriental Mindoro 20. Ormoc City, Leyte 6. Calbayog, Western Samar 21. Pagadian City, Zamboanga del Sur 7. Catbalogan, Samar 22. Roxas City, Capiz 8. Culasi, Antique 23. San Carlos City, Negros Occidental 9. Digos City, Davao del Sur 24. San Jose, Occidental Mindoro 10. Gingoog City, Misamis Oriental 25. Siargao (Dapa), Surigao del Norte 11. Ipil, Zamboanga Sibugay 26. Sogod, Southern Leyte 12. Irosin, Sorsogon 27. Sorsogon City, Sorsogon Province 13. Lipa City, Batangas 28. Tandag, Surigao del Sur 14. Maasin City, Southern Leyte 29. Valencia City, Bukidnon 15. Malate, Manila (Liaison Office) 30. Virac, Catanduanes

These marketing centers add businesses to their mother branches.

FACILITIES

FCB acquired additional 22 automated teller machines (ATMs) from the United States. It also acquired additional dial up electronic fund transfer/point of sale terminals from the United States and 27 GPRS EFTPOS units from local telcos bringing the total number of ATMs to 140 and EFT/POS accredited merchants to 128.

PITAKArd

The debit card of the bank, PITAKArd, which was launched in the later part of 2009, is a very successful product. There are now a significant number of PITAKArd holders and growing very fast. Through the PITAKArd, an FCB depositor can access funds in any FCB ATMs or purchase goods and services in any electronic fund transfer/point of sale terminals in all FCB accredited merchants.

GEOGRAPHIC EXPANSION

As of today, the bank’s branches and marketing offices are in 40 provinces in Luzon, Visayas, and Mindanao. Because of its marketing centers, its financial services cover wider service areas, virtually more provinces in the Visayas, Mindanao, and Luzon that are not reached by its branches.

PERSONNEL

As of end of December 2013, the total personnel of the bank is 503. Of this total number, 12 are Executive Officers and 93 are Managers, while 398 are Rank-and-File employees. It anticipates to have an additional 58 employees for the next twelve months.

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As a regular part of its training for the year, the bank provides its employees a number of training programs to improve their capabilities, and attract and retain honest, devoted and competent personnel. The bank also provides its employees benefits, incentives and a retirement plan that are more than what are mandated by law. The employees also have a bonus program and a provident fund, which are fully funded by the bank and above the requirements of the law.

BENEFITS

The bank is providing regular employee fringe benefits, which include health care and hospitalization, group life insurance, rice subsidy, cash conversion of accrued vacation and sick leave credits, maternity and paternity leaves, fringe benefit loans, motor vehicle repairs for fieldmen, uniforms, and at the discretion of the management, year-end bonus, in addition to the government-mandated benefits.

Health Care and Hospitalization

The bank’s health care program continues to assist our employees and their dependents in case of hospitalization.

Retirement Plan

As usual, the bank’s retirement plan provides qualified employees cash benefits upon reaching the age of retirement. Upon attaining the normal retirement age of 60 years, an employee receives an amount as separation/retirement benefits the sum equivalent to 100 percent of his/her basic salary for every year of credited service.

Provident Fund

In addition to the retirement cash benefit, eligible employees upon retirement receive cash benefits from the bank’s provident fund. The FCB Provident Fund is unique in the sense that the fund is non-contributory. The bank does not assess contributions from employees but sets aside an amount from its income to build up the fund. FCB’s retirement and provident programs are far above what is required by law.

Employees Stock Option Plan

Unique to the bank is the giving to its employees the Employees Stock Option Plan (ESOP). When an employee acquires regular status, he can exercise his option to acquire a limited number of common stocks of the bank at par value. Because of this, most employees are shareholders of the bank.

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The bank also supports annual activities for the employees such as the Motivational Seminars with well-known motivational speakers to enhance their personal well being and Sports fest which they can enjoy, relax and strengthen their bonding.

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INVESTMENTS IN PEOPLE AND THE COMMUNITIES

Since the start, the First Consolidated Bank has been investing on people and communities to help create economic growth and prosperity in the bank service areas. From environment to education, health and livelihood, the bank’s community projects not only support its corporate goals but also encourage and collaborate with local government units and non-profit organizations to implement social change in a positive and sustainable way.

FCB supports a wide range of community development projects, in partnership with local government units, civic and religious organizations, and non-profit organizations. In the exercise of its corporate social responsibilities, the bank either sets aside substantial funds for projects or accesses grants from funding agencies.

FCB’s areas of concern in the community are health, education, livelihood, Eco-cultural, culture and arts, awards and recognition such as The Outstanding Boholano Around the World awards (TOBAW) as well as on emergency and relief operations.

FCB supports the Loboc Youth Ambassador Band, a poverty alleviation project that trains children 9-15 years old in notes reading and instrumentation. With their musical talents, these kids become scholars in the colleges and universities as members of the school bands. To date, the project has 150 full time scholars in BIT-International College, Bohol Island State University, Cristal-E College, University of Bohol and Holy Name University.

The bank believes that education is the greatest equalizer in life. In support to education, it grants college scholarship and recently offered slots for Law scholarship. It also provides funds for construction of school buildings, reference materials and computers to public elementary and high schools.

On health, the bank sponsors medical/surgical missions in partnership with Home Reach Foundation, LGUs and non-profit organization. FCB annually sets aside a considerable amount to Inyong Alagad in DYRD and Tabang Katilingban in DYTR for donation to indigents who seek immediate financial assistance through these radio programs.

FCB, in cooperation with the Province of Bohol, Home Reach Foundation and the DYRD Inyong Alagad Foundation has established the Bohol Medical Care Institute whose mandate is to provide affordable and quality diagnostic and other health services to the Boholano Community.

Through the FCB Foundation and the Philippine Business for Social Progress (PBSP) of which FCB and many top corporations in the country are members, many community projects have been implemented in the Banks service areas to promote livelihood and increase productivity of upland rice farmers, including constructions of small water impounding, multi- purpose centers, and common service facilities.

This is another good year for the bank with remarkable growth in profits and certainly another big opportunity for FCB to allocate more funds for investment to people and communities.

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PROSPECTS FOR 2014 AND BEYOND

The economic prospect for the year 2014 and beyond is very challenging amid the forthcoming ASEAN integration. FCB has already set-up the core structure which can support its growth in the long term. However, we are cautiously optimistic and can’t be complacent considering the further intensification of competition. FCB will continue to invest on human resources, ICT, premises, and in community related projects. FCB is a work-in-progress and practices a process of continuous positive evolution.

FCB has a specific marketing approach and niche. FCB and its customers have a mutually beneficial relationship which supports a mutually long term engagement. The sustained performance of the bank is proof of such a relationship.

APPRECIATION

I would like to thank our customers for their loyal and continuing patronage with the bank, the shareholders for their trust and support and to all the directors, officers and staff of the bank. Their continuing dedication, teamwork, performance and integrity in the workplace, which is one of the best in the industry, have moved this bank forward. We also thank the Almighty God for His continued guidance and blessings.

Thank you very much.

ARGEO J. MELISIMO President

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DIRECTORS, EXECUTIVE OFFICERS, OFFICERS AND BRANCH MANAGERS

BOARD OF DIRECTORS

Richard T. Uy Chairman Panfilo M. Asares Vice Chairman Argeo J. Melisimo President/Director Jose Mari M. Borres Independent Director Joselito P. Gutierrez Independent Director Mark T. Muneses Independent Director Lourdes N. Lao Director Albert C. Santillan Director Marlito C. Uy Director Artemio C. Villas Corporate Secretary

EXECUTIVE OFFICERS

Argeo J. Melisimo President Joseph M. Lacea Senior V-President - Banking Genara T. Bernaldez Senior V-President - Financial Services Nazario G. Arce, Jr. Vice President - Support Services Clarita B. Cruz Vice President – Internal Audit Dionisio N. Cabrera Vice President - Personnel Cesar N. Lao Vice President – I C T Priscilla T. Enriquez Vice President – Chief Compliance Norma C. Manigque Vice President - Operations Lourdes Bernardita F. Veloso Vice President –Treasury Ken Mark C. Onario Vice President – Credit Johnness P. Batoy Vice President – Legal

HEAD OFFICE MANAGERS

BANKING SECTOR Corazon C. Cabrera AVP (At-Large) Maribel O. Arocha Sr. Manager (Budget) Maria Caroline D. Ceriño Manager I (Product Management) Amedil L. Lisondra Manager I (At-Large) Irwin P. Nangit Manager I (Marketing Officer) Mary Jane L. Suazo Manager I (Marketing-Caraga Reg.)

OPERATIONS DEPARTMENT Gemma L. Ogates AVP (General Operations) Cleomelia S. Engcoy Manager I (Settlement Management) Adoracion C. Vedra Manager I (Clearing Operations) Rhea T. Pateño Manager I (Procedures) Ma. Hellen Grace E. Raguindin Manager I (ATM Center) Januarlan B. Paña Manager I (Manila Liaison Office)

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SUPPORT – PREMISES & RE Paul Balbino P. Laguitao Manager I (General Services)

LEGAL DEPARTMENT Atty. Vanessa H. Quijano Asst. Legal Counsel

PERSONNEL DEPARTMENT Sharon Claire I. Karaan AVP (Personnel) Ma. Lili Clotilde O. Sarigumba Sr. Manager (Training & Development)

TREASURY Visitacion U. Paredes Manager I (Internal Funds Management) Pablo G. Pana, Jr. Manager I (Property / Procurement) Quennie D. Olavides Manager I (Asset/Liabilities)

CREDIT DEPARTMENT Vivien V. Lim Manager I (Acct. Officer, Special Programs) Gina Perigrina B. Tagaan Manager II (Remedial Management) Percy M. Amizola Manager I (Asset Management) Angelica A. Taghoy Manager I (Retail Management) Eugene Y. Flores Manager I (Credit Review)

INFORMATION AND COMMUNICATIONS TECHNOLOGY DEPARTMENT Ziphora P. Fucanan AVP (ICT/ Database Administration) Bernard Anthony C. Arcaya Sr. Manager (Senior Programmer) Adrion C. Pergamino Sr. Manager (Network Administration) Jesse G. Sarte Sr. Manager (Systems Administration)

AUDIT DEPARTMENT Ritchie B. Raguindin Sr. Manager (ICT Audit) Niceforo D. del Pilar Manager I (Audit) Joven C. Romitares Manager I (Audit)

BANK SECURITY Maj. Sostenes I. Corre Chief, Security Officer

BRANCH MANAGERS

ABORLAN BRANCH BATARAZA BRANCH Mary Jane P. Trinidad Windelle L. Arado

ABUYOG BRANCH BATO BRANCH Airo Mel A. Manalo Vicente A. Po, Jr.

ANTEQUERA BRANCH BAYUGAN BRANCH Cynthia A. Dalagan Alma S. Urbiztondo

BACLAYON BRANCH BROOKE’S POINT BRANCH Hilda B. Lim Geselle B. Medalla

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BUTUAN CITY BRANCH ILOILO CITY BRANCH Apolinario A. Cayomo, Jr. Doressa B. Fudolin

CABADBARAN CITY BRANCH INABANGA BRANCH Nichard B. Cayacap Virginia M. de la Cuesta

CAGAYAN DE ORO CITY BRANCH JAGNA BRANCH Julio P. Halasan, Jr. Gerardo I. Peguit

CALAPAN BRANCH KALIBO BRANCH Lorenzo P. Ballentos, III Sweet Sharon A. Bibit

CARMEN BRANCH LAMBUNAO BRANCH Carmencita A. Lastimada Liza E. Serban

CATARMAN BRANCH LAZI BRANCH Jose Noriel D. Hugo Leah May O. Beira

CATIGBIAN BRANCH LEGASPI CITY Reinaldo A. Maglajos Hermes E. Castro

CORTES BRANCH LOAY BRANCH Cynthia A. Dalagan Susana Q. Lim

DAPITAN BRANCH LOON BRANCH Joanna Petite A. Mercado Rex Lemuel M. Fabiosa

DAVAO CITY BRANCH MANDAUE CITY BRANCH Marlyn P. Saquian Gladys G. Ciros

DIPOLOG BRANCH MARAMAG BRANCH Dovee Marie B. Gamorot Pedro R. Belano, Jr.

DUMAGUETE BRANCH MASBATE BRANCH John Lussil B. Murcia Romer A. Corporal

EL NIDO BRANCH MOLAVE BRANCH Zeny G. Ganancial Nooh F. Tabares

ESTANCIA BRANCH NARRA BRANCH Ma. Prea G. Santillan Grace R. Sotabinto

GENERAL SANTOS CITY BRANCH Erasto S. Yap OZAMIZ CITY BRANCH Mario D. Bilbao GETAFE BRANCH Virginia M. de la Cuesta PILAR BRANCH Lydia O. Buyo GUINDULMAN BRANCH Roberto O. Curato PROSPERIDAD BRANCH Marvin Jay A. Martin GUINOBATAN BRANCH PUERTO PRINCESA CITY BRANCH Carlo Cesar R. Sodsod Fortunato A. Estoperez, Jr.

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QUEZON BRANCH TAGBILARAN COGON BRANCH Flora S. Malnegro Ma. Fejilea I. Añora

ROXAS BRANCH TAGBILARAN DOWNTOWN BRANCH Merlinda C. Asares Jorelyn D. Laureño Evangeline M. Olavides

ROXAS, CAPIZ BRANCH TAGUM CITY BRANCH Robert Louie C. Dela Paz Fe L. Flores

SAGBAYAN BRANCH TALIBON BRANCH Reinaldo A. Maglajos Rogelio T. Balundo

SAN JOSE BRANCH TANDAG BRANCH Wilmer Marie M. Melo Melvin M. Torrefranca

SIERRA BULLONES BRANCH Lydia O. Buyo TAYTAY BRANCH Rosalyn A. Paez SIQUIJOR BRANCH Doroteo P. Lagang, Jr. TRENTO BRANCH Ronel S. Libor SOFRONIO ESPAÑOLA BRANCH Rodolfo C. Sayon TRINIDAD BRANCH Rodulfo D. Sandulan SURIGAO CITY BRANCH Pedro P. Sevilla TUBIGON BRANCH Mario D. Dumale TACLOBAN CITY BRANCH Lycel G. Gamba UBAY BRANCH Alvaro D. Ordidor TAGBILARAN CITY SQUARE Julieta H. Saloma VALENCIA BRANCH Susana Q. Lim

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