Annual Stockholders’ Meeting Chairman’s Message April 18, 2015

The world economy continues to grow at 3 % for 2015 but remains fragile with Europe, China, Japan and South America needing government stimulus programs to boost their economies. The US is having a strong growth, after years of heavy government support, and is expected to increase interest rates by the 2nd half of 2015. Russia is being isolated due to the Ukraine conflict and the weakening of commodity prices is making the situation even worse. The good news is that Asia continues to perform well.

The Philippines remains one of the best performing economies in the world. Economic growth for 2015 is expected at 6%. The reduction of fuel costs further improves the Philippine economy, minimizes the impact of inflation, and provides flexibility for the BSP on monetary policies. The Philippines does have problems which are well known and will take years, if not a decade, to solve. The most important issue is poverty and implementing “inclusive” growth. Another major challenge is the impact of natural disasters, such as typhoons, floods, and earthquakes, and the mitigating measures. The Philippines has the opportunity to be a developed country in 20 years if the proper infrastructure and legislation are implemented thereby resulting in a sustainable and inclusive growth.

ASEAN economic integration will have a positive impact on the overall economy of the Philippines. However, there are sectors which will be adversely affected, such as manufacturing and agriculture, and we hope the Philippine government will provide assistance to these sectors.

Philippine banking is expected to continue to perform well but needs to face the challenges of competing with international banks and local competitors, both formal and informal. Fortunately, BSP is aware of the risks with large leveraged banks and is now implementing capitalization requirements and leveraged ratios to avoid any systemic risks. The BSP is consistent with the overall risk management policies of the US Federal Reserve and the Bank of England. Philippine banking customers are also becoming analytical on which banks are actually stronger and not basing their banking decision on size.

FCB had a very good year and has become stronger with better capitalization and profitability ratios in comparison to the top Philippine and international banks. FCB continues to maintain its unique trilateral relationship between its customers, employees, and shareholders. FCB is expected to continue to

1 perform better than the industry, even when the ASEAN banks start to enter the Philippine market.

Success is a non-stop process with a need for continuous improvement and hard work. FCB has been very successful due to the team effort and of each member performing his/her role. We expect a seamless transition and an even better performance for FCB with the new management team taking the realm. Each executive has excellent credentials and a proven track record of performance.

We express our appreciation to the Lord for all the blessings and for giving us an opportunity to be a blessing to others.

Respectfully yours,

Richard Uy Chairman

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President’s Report 2014: 32 years of Solid and Sustained Growth

The year 2014 marks another year of continuous and sustained growth of the bank despite the reduction of profitability of the entire banking system. FCB posted an increase of NPAIT of 21.83% while the whole banking system posted a negative NPAIT growth of 8.17%. Even with the intense competition for both deposit and loans posed by both banks and non-banks, FCB continues to outperform the banking system in such major financial indicators as Capital Adequacy Ratio, Return on Equity and Return on Assets.

The achievements we report for 2014 are the result of long term decisions, chosen deliberately and carried out judiciously. Our branching strategy, our product development, our recruitment and continuous training anchored on meritocracy, continue to give FCB the sustained productivity, wide area reach, organizational capacity and financial strength.

The bank is a process of continuous improvement and the FCB of tomorrow is taking shape before your eyes today, but it has its beginnings in yesterday’s dreams and aspirations and will continue to evolve and improve for the better specially with the deliberate and methodical transition process being implemented. As in a championship marathon relay, the transition is very smooth and seamless and is guaranteed to gather further strength, momentum and velocity with the young average age of our executive and management team who have already proven individually and collectively their track record of achievement.

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 make it our goal to introduce interventions that creates purchasing power of the people in the community and support the need of the micro, small and medium enterprises in the areas where we operate.

FCB continues to invest in human resource development, information and communication technology modernization and upgrading of products and services to meet the needs of the community. These have enabled the bank to maximize market share in our areas of operation.

We continue to live by our commitment as a responsible corporate citizen conscious of our social responsibility to the community by increasing its

3 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.

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 2014 2013

Revenues P1,436,839,470 P1,224,024,624 Net Income P391,838,284 P321,632,447 Earnings per Common Share P132 P208 Return on Average Assets 3.53% 3.27% Return on Average Equity 14.76% 16.01% Net Interest Margin 10.73% 9.57% Risk-based Capital Adequacy Ratio 25.59% 24.20%

At the end 2014 2013

Total Assets P13,116,102,109 P10,581,851,609 Total Loans (net) P8,185,559,680 P6,336,145,165 Total Deposits P7,929,963,480 P6,510,870,331 Total Shareholders’ Equity P2,892,817,248 P2,271,000,260 Book Value per Common Share P849.53 P1,466.30 Common Shares Issued and Outstanding 3,396,192 1,544,752

ASSETS

As of end of December 2014, the bank’s total Assets reached P 13.116 billion, registering an increase of P2.534 billion, or 23.95 percent.

Loans and Discounts, Held to Maturity Investments and Due from Bangko Sentral ng Pilipinas accounted for 83.45% 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.

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Table 1. Comparative Assets of the Bank, 2014 and 2013. December 31 Increase/Decrease ASSETS 2014 2013 Amount % Cash and Other Cash Items P581,322,504 P480,358,004 P100,964,500 21.02% Due from BSP 2,754,116,039 1,953,563,397 800,552,642 40.98% Due from Other Banks 451,263,868 638,482,188 -187,218,320 -29.32% Loans & Disc (net) 8,185,559,680 6,336,145,165 1,849,414,515 29.19% Held to Maturity Investments 6,017,121 7,076,736 -1,059,615 -14.97% Bank Premises, Furniture & Fixtures 528,525,068 512,963,110 15,561,958 3.03% and Equipment Investment Properties (net) 224,981,252 230,640,609 -5,659,357 -2.45% Sales Contracts Receivable (net) 36,942,687 55,435,737 -18,493,050 -33.36% Computer Software -net 10,058,177 12,399,050 -2,340,873 -18.88% Deferred Tax 151,132,568 137,175,349 13,957,219 10.17% Assets Other Assets -net 186,183,145 217,612,264 -31,429,119 -14.44% Total Assets P13,116,102,109 P10,581,851,609 2,534,250,500 23.95%

CASH AND OTHER CASH ITEMS DUE FROM BSP AND OTHER BANKS

Cash and other Cash Items increased by P101 million, or 21 percent, over the balance in 2013 due to higher level of cash requirement at year-end. Due from BSP went up to P2.7 billion or an increase of P800 million or 40.98% 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 down by 29.32% or P187 million over its balance in the previous year as part of efficient cash management system.

LOANS

The bank posted a significant increase in its Loan Investments. The growth in loan investments was P1.849 billion compared to the previous year. Total loan investments reached P8.185 billion, from P6.336 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 129,537 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), as well as consumer loans. 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 18.76% percent and 3.06% percent respectively, of total outstanding loans.

HELD TO MATURITY INVESTMENTS

Held to Maturity Investments decreased by P1 million or 14.97% as part of the bank’s overall liquidity management strategy.

BANK PREMISES, FURNITURE, FIXTURES AND EQUIPMENT

The Bank Premises, Furniture, Fixtures and Equipment increased by P15.562 million in 2014. The bank constructed three additional branch offices in Gubat, Sorsogon and in Sagbayan and Inabanga, Bohol. 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 2.45 percent, from P230 million in 2013 to P225 million in 2014. The goal of the bank is to continuously trim down its Investment Properties.

SALES CONTRACTS RECEIVABLES

The Sales Contracts Receivables consist of accounts arising from the sale of foreclosed properties on installment to various clients. These reduced by 33.36 percent, from P55.44 million in 2013 to P37 million in 2014 due to efficient management of these accounts.

OTHER ASSETS

Other Assets (net) of the bank decreased by 14.44% as the outstanding balance of the account in the previous year amounting to P217.61 million.

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ASSET QUALITY

The bank has continued to maintain the high 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 P2.534 billion, or 23.95 percent in 2014, over its outstanding liabilities and capital funds as of end of December 2013. The increase was largely due to growth in Deposits; Bills Payable; Income Tax Payable; and Capital Funds.

Table 2. Liabilities and Capital Funds, 2014 and 2013. December 31 Increase/Decrease LIABILITIES AND CAPITAL FUNDS 2014 2013 Amount % Deposit P7,929,963,480 P6,510,870,331 1,419,093,149 21.80% liabilities Bills and loans payable 1,883,667,602 1,076,131,720 807,535,882 75.04% Accrued taxes, interest & other 173,706,986 211,921,006 -38,214,020 -18.03% expenses Income tax payable 67,290,966 40,974,592 26,316,374 64.23% Deferred tax Liabilities 2,102,003 1,998,598 103,405 5.17% Other liabilities 166,553,824 468,955,102 -302,401,278 -64.48% TOTAL LIABILITIES 10,223,284,861 8,310,851,349 1,912,433,512 23.01% Capital funds 2,892,817,248 2,271,000,260 621,816,988 27.38% TOTAL LIABILITIES & P13,116,102,109 P10,581,851,609 2,534,250,500 23.95% CAPITAL FUNDS

DEPOSITS

Overall, the bank’s Deposits grew by P1.419 billion, or 21.80 percent, from P6.511 billion in the previous year to P7.930 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 deposit, and demand deposit.

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The bank’s total number of deposit accounts has reached 356,124 in 2014, an increase of 43,706 or 14 percent, from 312,418 in the previous year.

BILLS AND LOANS PAYABLE

The bank’s Bills Payable increased by 75.04 percent, from P1.076 billion in 2013 to P1.884 billion in 2014. The increase is due to bank’s conscious decision to balance its funding mix to meet the growing number of borrowers.

ACCRUED TAXES, INTEREST AND OTHER EXPENSES

Accrued taxes, Interest and Other Expenses decreased by P38 million, or 18.03 percent, compared to that of the previous year.

CAPITAL

The Capital of the bank grew by P622 million, or 27.38 percent, as a result of bigger Net Income After Tax (NIAT) generated for the period and additional equity infusion. The bank’s capital increased from P2.271 billion in 2013 to P2.893 billion in 2014.

Table 3. Comparative Capital Accounts, 2014 and 2013. December 31 Increase/Decrease CAPITAL 2014 2013 Amount % Capital Stock P348,605,898 P163,432,315 P185,173,583 113.30% Paid-in Surplus 518,615,803 382,885,350 135,730,453 35.45% and Reserves Surplus (free) 2,025,595,547 1,724,682,595 300,912,952 17.45% TOTAL P2,892,817,248 P2,271,000,260 621,816,988 27.38%

CAPITAL ADEQUACY

The bank’s capital adequacy “risk-weighted” ratio continues to be strong at 25.59% in year 2014. It is significantly higher than the top Philippine and international 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.

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INCOME/EXPENSES

INCOME

Income of the bank reached P1.436 billion, from P1.224 billion in 2013, registering an increase of 17.39 percent. Income was derived mainly from interest income on loans and investments. Fees for bank services also provided supplemental income.

INTEREST INCOME

A great percentage of its total revenue, or 96 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.

EXPENSES

Expenses of the bank increased by 14.08 percent, from P761 million in the previous year to P868 million this year.

Thirty-two 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

Interest on deposits and borrowed funds has increased by P20.04 million or 7.85 percent. This comprised 32 percent of total expenses.

NON-INTEREST EXPENSE

Non-Interest Expenses have increased by P87.12 million, or 17.23 percent. Compensation/Fringe benefits have also increased by P22.52 million or 13 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 68 percent of total expenses.

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Table 4. Income and Expenses, 2014 and 2013. Revenues/Expenses December 31 Increase/Decrease 2014 2013 Amount % Total Revenues P1,436,839,470 P1,224,024,624 212,814,846 17.39% Total Expenses 868,077,495 760,916,135 107,161,360 14.08% Net Income Before Tax 568,761,974 463,108,488 105,653,486 22.81% Net Income After Tax P391,838,284 P 321,632,447 70,205,837 21.83%

NET INCOME / PROFITABILITY

The bank’s Net Income After Tax (NIAT) rose to P391 million or an increase of 21.83 percent over that of the previous year. Through the years, its NIAT has been increasing. Earnings per share amounted to P132 and P208 in 2014 and 2013, respectively. The ROE of 14.76% is higher than the industry average.

DIVIDEND

On August 8, 2014, the Bank’s Board of Directors approved the Board Resolution No. 277-2014 declaring 15% Cash Dividend to holders of Common Shares and 2% to holders of Preferred Shares, to all FCB Stockholders on record as of July 31, 2014. The above dividend declaration was approved by the Bangko Sentral ng Pilipinas on October 2, 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.

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BRANCHES

As of December 31, 2014, FCB has 67 branches. Recently, *3 branches were opened in the first quarter of the year. By the end of 2015, four (4) additional branches are scheduled to be opened in the different growth centers in the country as approved by the BSP. FCB has 70 branches nationwide as of the first quarter of 2015, as follows:

Branches Locations

1. Abuyog Brgy. Loyongsawang, Abuyog, Leyte 2. Aborlan Nat’l. Highway, Brgy. Gogognan, Aborlan, Palawan 3. Antequera Poblacion, Antequera, Bohol 4. Baclayon Poblacion, Baclayon, Bohol 5. Bataraza Poblacion, Bataraza, Palawan 6. Bato Jose Rizal St., Poblacion, Bato, Leyte 7. Bayugan Rotunda, Bayugan, Agusan del Sur 8. Butuan City Rosales Ave., Butuan City 9. Brooke’s Point National Highway, Brooke’s Point, Palawan 10. Cabadbaran Highway, Cabadbaran, Agusan del Norte 11. Cagayan de Oro City CM Recto, Cagayan de Oro City, Misamis Oriental 12. Calapan 144 A. Bonifacio St., Brgy. Ilaya, Calapan City 13. Carmen Poblacion, Carmen, Bohol 14. Catarman JP Rizal St., Brgy. Sampaguita, Catarman, Northern Samar 15. Catigbian Poblacion, Catigbian, Bohol 16. Cortes Poblacion, Cortes, Bohol 17. Dapitan City Hiway, Brgy. Dawo, Dapitan City, Zamboanga del Norte 18. Davao City Km 9, Sasa, Davao City 19. Dipolog City Magsaysay Ave., Dipolog City, Zamboanga del Norte 20. Dumaguete City Barangay Junob, Dumaguete City, Negros Oriental 21. El Nido Zone1 Amboy St., El Nido, Palawan 22. Estancia E. Reyes Ave., Estancia, Iloilo 23. General Santos City Pendatun Ave., General Santos City, South Cotabato 24. Getafe Poblacion, Getafe, Bohol 25. Gubat * Cor. Mabini & Zulueta Sts., Gubat, Sorsogon 26. Guindulman Poblacion, Guindulman, Bohol 27. Guinobatan Del Pilar St., Guinobatan, Albay 28. Iloilo City West Diversion Rd, Jaro, Iloilo City 29. Inabanga Poblacion, Inabanga, Bohol 30. Jagna Poblacion, Jagna, Bohol 31. Kalibo ACP Zaraspe Bldg. Roxas Ave., Ext., Kalibo, Aklan 32. Lambunao Lambunao Public Market, Ladrido St., Pob. Ilaya, Lambunao, Iloilo 33. Lazi Tigbawan, Lazi, Siquijor 34. Legaspi City National Highway, Binanoan, Legaspi City, Albay 35. Loay Poblacion, Loay, Bohol 36. Loon Poblacion, Loon, Bohol

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37. Mambusao Poblacion Tabuc, Mambusao, Capiz 38. Mandaue City A.C. Cortes cor Burgos St., Mandaue City 39. Maramag Poblacion, Maramag, Bukidnon 40. Masbate City Crossing St., Brgy. F. Magallanes, Masbate City 41. Molave Rizal St., Molave, Zamboanga del Sur 42. Narra National Highway. Narra, Palawan 43. Ozamis City Anselmo Bernad Ave., Ozamis City, Misamis Occidental 44. Pilar Poblacion, Pilar, Bohol 45. Prosperidad Marketside, Prosperidad, Agusan del Sur 46. Puerto Princesa City Km 2 Highway, Puerto Princesa City 47. Quezon National Highway, Quezon, Palawan 48. Roxas City, Capiz Lawaan, Roxas City, Capiz 49. Roxas Sandoval St., Roxas, Palawan 50. Sagbayan Poblacion, Sagbayan, Bohol 51. San Jose Bantayan St., Barangay 2, San Jose, Antique 52. San Joaquin* Cor. Arroyo St., National Highway, Purok III, Pob. San Joaquin, Iloilo 53. Sierra Bullones Poblacion, Sierra Bullones 54. Siquijor Poblacion, Siquijor, Siquijor 55. Sofronio Española Pulot Center, Sofronio Española, Palawan 56. Surigao City Vasquez/Rizal St., Surigao City, Surigao del Norte 57. Tacloban City Maharlika Highway, Tacloban City, Leyte 58. Tagbilaran City Square H. Grupo St., Tagbilaran City 59. Tagbilaran Cogon CPG Ave., Cogon District, Tagbilaran City 60. Tagbilaran Downtown MH Del Pilar St., Tagbilaran City 61. Tagum City Pagsubangan cor Sta Cruz Sts., Tagum City, Davao del Norte 62. Talibon Poblacion, Talibon, Bohol 63. Tandag Napo, National Highway, Bagong Lungsod, Tandag City 64. Taytay Rizal St., Poblacion, Taytay, Palawan 65. Tigbauan * Delmar9 Bldg., Taldelore St., Poblacion I, Tigbauan, Iloilo 66. Trento Poblacion, Trento, Agusan del Sur 67. Trinidad Poblacion, Trinidad, Bohol 68. Tubigon Poblacion, Tubigon, Bohol 69. Ubay Poblacion, Ubay, Bohol 70. Valencia Poblacion, Valencia, Bohol

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Last March 23, 2015, FCB simultaneously opened and inaugurated the San Joaquin and Tigbauan branches in Iloilo. The ribbon – cutting ceremonies were attended by FCB Directors, Branch Managers, FCB Staff, Businessmen and Professionals in the city.

MARKETING CENTERS

The bank has maintained its 40 Marketing Centers:

1. Bayawan City, Negros Oriental 11. Daet, Camarines Norte 2. Boac, Marinduque 12. Digos City, Davao del Sur 3. Borongan City, Eastern Samar 13. Gingoog City, Misamis Oriental 4. Calamba, Misamis Occidental 14. Iloilo City, Panay Island 5. Calbayog City, Western Samar 15. Ipil, Zamboanga Sibugay 6. Camiguin, Mambajao 16. Irosin, Sorsogon 7. Carigara, Leyte 17. Kidapawan City, North Cotabato 8. Carrascal, Surigao del Sur 18. Laoang, Northern Samar 9. Catbalogan, Samar 19. Liloy, Zamboanga del Norte 10. Culasi, Antique 20. Lipa City, Batangas

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21. Maasin City, Southern Leyte 31. Pagadian City, Zamboanga del Sur 22. Malate, Manila (Liaison Office) 32. San Carlos City, Negros Occidental 23. Malaybalay City, Bukidnon 33. San Jose, Occidental Mindoro 24. Mamburao, Occidental Mindoro 34. Siargao (Dapa), Surigao del Norte 25. Mangagoy, Bislig, Surigao del Sur 35. Sogod, Southern Leyte 26. Mati City, Davao Oriental 36. Sorsogon City, Sorsogon Province 27. Naga City, Camarines Sur 37. Tacurong City, South Cotabato 28. Naval, Biliran 38. Valencia City, Bukidnon 29. Odiongan, Romblon 39. Virac, Catanduanes 30. Ormoc City, Leyte 40. Zarraga, Iloilo

These marketing centers add businesses to their mother branches.

FACILITIES

FCB has a total of 120 installed ATMs acquired from the United States. FCB has a total number of 217 EFT/POS terminals at accredited merchants as of the 1st quarter of 2015.

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 2014, the total personnel of the bank is 588. Of this total number, 12 are Executive Officers and 101 are Managers, while 475 are Rank-and-File employees.

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.

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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 field men, 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 seminars with well-known motivational speakers and Sportsfest. The Motivational Seminars serve to enhance employees’ personal well being, and Sportsfest provides employees with an opportunity to enjoy, relax and strengthen their bonding.

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INVESTMENTS IN PEOPLE AND THE COMMUNITIES

Since its start, the First Consolidated Bank has been investing in 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 changes in positive and sustainable ways.

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 Boholanos Around the World (TOBAW) Awards as well as on emergency and relief operations.

FCB supports the Loboc Youth Ambassadors 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. The project has more than a hundred full time scholars in BIT- International College, Bohol Island State University, Cristal-E College, and Holy Name University. To further support the needs of the scholars, FCB provided the LYAB scholars with a new two-storey dormitory building in the city and an ATM.

The bank believes that education is the greatest equalizer in life. In support of education, it grants college scholarships and provides funds for the construction of school buildings, reference materials and computers to public elementary and high schools. FCB donated a property containing an area of 2,200 sq.m. located in Catagbacan Norte, Loon, Bohol for a new school building of Lawis Elementary School in Loon. The existing Lawis Elementary School building was totally damaged by the earthquake and the site is already declared as unsafe for a new school building.

Alfonso L. Uy College Scholarship Program continues to extend scholarships for the year 2015-2019 to students who are financially-hard up but academically deserving, to pursue college education at the Bohol Island State University (BISU).

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. First Consolidated Bank also supported several international and local medical and surgical missions.

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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.

FCB also granted a high specification standard computer with accessories to Bohol Police Provincial Office in connection with the BPPO’s launching and putting into practice of e-Projects and Geographical Information System-Based Crime Analysis (GIS- BCA) in all Municipal Police Stations (MPS) and Bohol Tourist Police Unit (BTPU) throughout the Province of Bohol. FCB is supportive of the BPPO’s anti-criminality programs designed to enhance the responses and planned operations of their police units as well as the prevention and/or early solution of crimes in the province.

During the 24th PNP Foundation Day celebration in Cebu, FCB was awarded for the support to PNP in its peace and order campaign and contributions to the success of every PNP’s projects and programs.

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.

PROSPECTS FOR 2015 AND BEYOND

The economic prospect for the year 2015 and beyond is very challenging amid the forthcoming ASEAN integration. FCB has already set-up the core infrastructure and has implemented the seamless transition to a more dynamic team with proven track record that 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 process of continuous positive evolution.

FCB has a specific niche and pride itself with a customer based marketing approach that sustains mutually beneficial relationship which supports a mutually long term engagement. The sustained performance of the bank is proof of such a relationship.

FCB’s best days lie ahead. Sustained growth does not come easy, but with the superior quality of our workforce driven by meritocracy and teamwork, FCB as always will continue to outperform the banking industry as it has outperformed the industry over the past successive years.

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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 Ermelando P. Torregosa Vice Chairman Argeo J. Melisimo President/Director Jose Mari M. Borres Independent Director Joselito P. Gutierrez Independent Director Mark T. Muneses Independent Director Panfilo M. Asares Director Lourdes N. Lao Director Marlito C. Uy Director

EXECUTIVE OFFICERS

Argeo J. Melisimo President Joseph M. Lacea Senior V-President - Banking Genara T. Bernaldez Senior V-President - Financial Services Lourdes Bernardita F. Veloso Vice President – Treasury Nazario G. Arce, Jr. Vice President - Support Services 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 Clarita B. Cruz Vice President – Internal Audit Ken Mark C. Onario Vice President – Credit Johnness P. Batoy Vice President – Legal Artemio C. Villas Corporate Secretary

HEAD OFFICE MANAGERS

EXECUTIVE DEPARTMENT Sostenes Corre Chief Security Officer Marilyn Dango Actg. AVP (Asst. Corporate Secretary) Joelle De Los Reyes Actg. Manager I

BANKING SECTOR Corazon C. Cabrera AVP (At-Large) Maribel O. Arocha Actg. AVP Ivy Desamparado Manager I (Budget) Maria Caroline C. Antipas Manager I (Product Manager) Arturo Abellana, Jr. Manager I (Marketing) Irwin P. Nangit Manager I (Marketing) Rodulfo Sandulan Manager I (Marketing – Calapan)

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Mary Jane L. Suazo Manager I (Marketing-Caraga Reg.) Ryan Peñaflorida Manager I (Marketing – Iloilo) Belinda R. Ilandag Manager I (At-Large) Gennevieve J. Sulit Manager I (At-Large) Nichard Cayacap Manager I (At-Large)

OPERATIONS DEPARTMENT Gemma L. Ogates AVP (General Operations) Cleomelia S. Engcoy Manager I (Settlement Manager) 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 Officer)

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

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 Pablo G. Pana, Jr. Actg. AVP Visitacion U. Paredes Manager I (Internal Funds Management) Quennie D. Olavides Manager I (Asset/Liabilities) Maresil O. Murcia Actg. Manager (Property & Procurement)

CREDIT DEPARTMENT Vivien V. Lim Manager I (Account Officer, Special Programs) Gina Perigrina B. Tagaan Manager II (Remedial Management) Angelica A. Taghoy Manager I (Retail Management)

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

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

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BRANCH MANAGERS

ABORLAN BRANCH DAPITAN BRANCH Mary Jane P. Trinidad Joanna Petite A. Mercado

ABUYOG BRANCH DAVAO CITY BRANCH Airo Mel A. Manalo Marlyn P. Saquian

ANTEQUERA BRANCH DIPOLOG BRANCH Cynthia A. Dalagan Dovee Marie B. Gamorot

BACLAYON BRANCH DUMAGUETE BRANCH Hilda B. Lim John Lussil B. Murcia

BATARAZA BRANCH EL NIDO BRANCH Windelle L. Arado Zeny G. Ganancial

BATO BRANCH ESTANCIA BRANCH Vicente A. Po, Jr. James Bryan M. Maglinte

BAYUGAN BRANCH GENERAL SANTOS CITY BRANCH Alma S. Urbiztondo Erasto S. Yap

BROOKE’S POINT BRANCH GETAFE BRANCH Geselle B. Medalla Virginia M. de la Cuesta

BUTUAN CITY BRANCH GUBAT BRANCH Apolinario A. Cayomo, Jr. Liza E. Serban

CABADBARAN CITY BRANCH GUINDULMAN BRANCH Cherry B. Zarsuelo Roberto O. Curato

CAGAYAN DE ORO CITY BRANCH GUINOBATAN BRANCH Julio P. Halasan, Jr. Amedil L. Lisondra

CALAPAN BRANCH ILOILO CITY BRANCH Lorenzo P. Ballentos, III Doressa B. Fudolin

CARMEN BRANCH INABANGA BRANCH Carmencita A. Lastimada Virginia M. de la Cuesta

CATARMAN BRANCH JAGNA BRANCH Jose Noriel D. Hugo Gerardo I. Peguit

CATIGBIAN BRANCH KALIBO BRANCH Reinaldo A. Maglajos Sweet Sharon A. Bibit

CORTES BRANCH LAMBUNAO BRANCH Cynthia A. Dalagan Jhon Noli C. Ibaoc

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LAZI BRANCH SAN JOSE BRANCH Leah May O. Beira Wilmer Marie M. Melo

LEGASPI CITY SIERRA BULLONES BRANCH Hermes E. Castro Lydia O. Buyo

LOAY BRANCH SIQUIJOR BRANCH Susana Q. Lim Doroteo P. Lagang, Jr.

LOON BRANCH SOFRONIO ESPAÑOLA BRANCH Rex Lemuel M. Fabiosa Rodolfo C. Sayon

MAMBUSAO BRANCH SURIGAO CITY BRANCH Eden May S. Tesorio Pedro P. Sevilla

MANDAUE CITY BRANCH TACLOBAN CITY BRANCH Gladys G. Ciros Lycel G. Gamba

MARAMAG BRANCH TAGBILARAN CITY SQUARE Pedro R. Belano, Jr. Julieta H. Saloma

MASBATE BRANCH TAGBILARAN COGON BRANCH Romer A. Corporal Ma. Fejilea I. Añora

MOLAVE BRANCH TAGBILARAN DOWNTOWN BRANCH Nooh F. Tabares Evangeline M. Olavides

NARRA BRANCH TAGUM CITY BRANCH Grace R. Sotabinto Fe L. Flores

OZAMIZ CITY BRANCH TALIBON BRANCH Mario D. Bilbao Rogelio T. Balundo

PILAR BRANCH TANDAG BRANCH Lydia O. Buyo Aileen Jane C. Duran

PROSPERIDAD BRANCH TAYTAY BRANCH Marvin Jay A. Martin Rosalyn A. Paez

PUERTO PRINCESA CITY BRANCH TRENTO BRANCH Fortunato A. Estoperez, Jr. Ronel S. Libor

QUEZON BRANCH TRINIDAD BRANCH Flora S. Malnegro Rogelio T. Balundo

ROXAS BRANCH TUBIGON BRANCH Jorelyn D. Laureño Mario D. Dumale

ROXAS, CAPIZ BRANCH UBAY BRANCH Robert Louie C. Dela Paz Alvaro D. Ordidor

SAGBAYAN BRANCH VALENCIA BRANCH Reinaldo A. Maglajos Susana Q. Lim

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