00 8 First BanCorp.> 2001 During 2001 First BanCorp created a new subsidiary, the FirstBank Insurance Agency.The Gramm Leach Bliley Act and related changes in local laws now permit Financial Holding Companies to enter the insurance business. The FirstBank Insurance Agency will not underwrite insurance or cover risks. It will sell third party insurance from FirstBank branches using its own licensed representatives.The new company will initiate operations in five branches during 2002 and we expect it to grow steadily in coming years. The FirstBank Insurance Agency moves us one step closer to “one stop shopping” for financial services. At the beginning of 2002 we announced plans to acquire the operations of JP Morgan Chase & Co. in the Virgin Islands.This transaction is subject to regulatory approval and to a formal agreement concerning its details. Chase’s Virgin Islands opera- tions include over $500 million of assets, including eight branches and 14 ATM locations on four islands. This acquisi- tion also includes an insurance agency, Chase Agency Services, Inc. and an export service company, Chase Trade, Inc. This acquisition shows our commitment to the Virgin Islands, where we currently have four offices. FirstBank has been serv- ing the U.S.Virgin Islands since 1962. FirstBank has an agreement with a major national brokerage house to provide financial and investment services in our branches.They have opened offices in twelve FirstBank facili- ties, while serving our remaining branches by telephone. On December 31 that firm had accounts totaling approximately $115 million in the Corporation’s offices. During 2001 FirstBank also provided consulting services to Goldman Sachs for seven Puerto Rico bond issues totaling $6.3 billion. During 2001 FirstBank also entered new relationships with other firms.The Bank began providing a credit card for clients of a local furniture chain, with approximately 35 outlets and 900 employees, which is currently expanding its operations on the Island.The Bank already offers credit cards for Texaco and Western Auto in Puerto Rico. Second, First BanCorp purchased an eight percent share of Southern Security Bank, a small Florida institution that is changing its name to Pan American Bank. First BanCorp also owns approximately two percent share in a new Florida bank- ing institution, American Premier Bank. Both institutions are small, community banks that emphasize service. Management remains interested in the Florida banking market. Expansion there remains a possibility, depending on business opportuni- ties and market conditions. In coming years we will continue working to develop strategic arrangements with established firms. Such alliances allow both Strategic Relationships with Other Firms >.