On behalf of the Board of Directors and staff of First BanCorp I am pleased to submit our annual report for 2001, another record year. In 2001 First BanCorp earned $86.0 million, rep- resenting $2.61 per common share (basic) or $2.60 per com- mon share (diluted). These earnings compare favorably with 2000,when the Corporation earned $67.3 million,which came to $2.22 per common share (basic) or $2.21 per common share (diluted). Net income increased 27.8% and diluted earnings per share rose 17.6% in 2001. The Corporation achieved a 22.13% return on common equity in 2001, while the return on aver- age assets was 1.28%.The efficiency ratio improved to an out- standing 41.81%. Growth, diversification, cost control and service have laid the foundations for these achievements. I will emphasize those four themes in this letter. Our business grew substantially last year. Assets rose 38.5% from $5.9 billion at year-end 2000 to $8.2 billion at the end of 2001. Loans increased 23.2% to $4.3 billion, due mainly to an $822 million increase in residential mortgage and commercial lending. Deposits increased 22.5% to $4.1 billion. First BanCorp.> 2001 One Message 1 7 00 Angel Alvarez-Pérez, President New Initiatives and Growth  >. To our stockholders: >. Growth, diversification, cost control and service have laid the foundations for these achievements.