Pacific Islands Development Bank

APIL UpdateDecember 2, 2009Honolulu, Hawaii

Establishment

• July 5, 1989 by the Association of Pacific Island Legislatures (APIL)

• Corporate headquarters in Guam

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Mission & Purpose

To contribute to the acceleration of theprocess of economic and socialdevelopment of member countries andStates, individually and collectively, and topromote regional cooperation.

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Products & Services

• Direct commercial loans• Loan guarantee and participation• Residential home loans - 2009• Consumer loans = 2009• Annual scholarship program• Student internship and training

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Shareholders & CapitalAs of 11/30/09

CNMI 1,000,000 FSM State of Chuuk 251,783 FSM State of Kosrae 650,000 State of Pohnpei 1,000,000 FSM State of Yap 1,000,000 Island of Guam 1,000,000 Republic of Palau 1,000,000 Total 5,901,783

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Board of GovernorsAs of 11/30/09

Executive LegislativeChuuk Wesley Simina Singkoro HarperCNMI Benigno Fitial Diego BeneventeGuam Felix Camacho* Ben PangelinanKosrae Robert Weilbacher Ilai AbrahamPalau Kerai Mariur Secilil EldebechelPohnpei John Ehsa Thomas PabloYap Sebastian Anefal Charles Chieng

* Chairman of the Board

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Board of DirectorsAs of 11/30/09

CNMI Justo QuituguaKosrae Gibson SibaGuam Lourdes PerezPalau Secilil EldebechelPohnpei Thomas PabloYap Michael GaanChuuk VacantPresident/CEO Aren Palik*

* Chairman of the Board7

2009 Highlights• Kosrae injected $50k equity contribution• Board approved Strategic Plan (2009-2013)• Implemented Housing & Consumer Loans• Board of Governors Reorganized• Organized First Regional DFI Meeting (Dec. 9)• Achieved key financial goals• Total Assets increased by 7%, estimated• Total Loans increased by 10%, estimated• Net Profit increase by 28%, estimated• Delinquency less than 2%, estimated

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Total Assets

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Outstanding Loans

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Capital Stock

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Retained Earnings/Deficit

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Loan Delinquency

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Loan Delinquency

45.60%

30.70%

15.10%

6.20%1.50% 0.90% 2.62%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

2002 2003 2004 2005 2006 2007 2008

5-Year Strategic Outlook

Our 5-Year Strategic Goals (2009-2013):• Increase bank capitalization and funding• Manage credit risks and maintain loan quality• Prudently manage investment securities• Diversify and expand products and services

(with shift towards “regional” financing)

• Manage our margins (revenue and expenses)• Secure additional members

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We need HELP from APIL

• Bring Marshall Islands, American Samoa, Hawaii, and Kiribati to our PIDB family

• Secure member’s outstanding pledged equity

• Support PIDB’s efforts in securing external funding & capital

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Membership Benefits

• Protect and increase value of your investment• Contribute to economic and social dev.• Access external funding through PIDB (IRP)• Representation and participation on the board• Promote regional cooperation through trade• Contribute to APIL’s mission & objectives

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Thank you!

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