F.n.b. Corporation · NYSE:FNB
F.n.b — Jefferies Road Show NYC (May 2015)
43 slides from F.n.b's conference presentation, May 28, 2015
Slide 1: F.N.B. Corporation Investor Presentation
F.N.B. F N B Corporation Investor Presentation Jefferies Road Show NYC May 28, 28 2015
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial Information The presentation includes “snapshot” information about F.N.B. Corporation used by and of illustration and is not intended as a full business or financial review and should be viewed in the context of all th
Slide 3: F.N.B. Corporation
F.N.B. Corporation About F.N.B. Corporation Experienced Leadership Team Favorably Positioned for Long-Term Success Strong g Operating p g Trends 3
Slide 4: About F.N.B. Corporation
About F.N.B. Corporation • Headquarters: Pittsburgh Pittsburgh, PA • Assets: $16.3 billion High‐Quality, • Loans: $11.4 billion Growing Regional Financial Institution • Deposits: $12.6 billion • Banking locations: 284 • Market Capitalization: $2.4 billion(2) • Attractive and expanding footprint: Ban
Slide 5: Experienced Leadership Team
Experienced Leadership Team Experienced and respected executive management team has guided FNB through the cycle, cycle and positioned the Company for long‐term, sustained growth Years of Banking Experience Joined d FNB Prior Experience President and CEO Vincent J. Delie, Jr. 28 2005 National City P
Slide 6: Proven sustainable business model that can be scaled
Proven sustainable business model that can be scaled as the franchise continues to grow Sustainable Business Model Risk Management Growth Culture Shareholder Value Maintain low risk Position for sustainable Named best place to Disciplined, growth profile organic growth work 4 years in a row
Slide 7: Reposition and Reinvest – Actions
Reposition and Reinvest – Actions 2009 2010 2011 2012 2013 2014-1Q15 PEOPLE Talent Management Chief Technology & Strengthened team through Chief Marketing key hires; Continuous team Attract, retain, develop best talent Officer Filled, development Launched Project Management Office Geographic Segment
Slide 8: Comparative EPS Trends – Positioned for Long-Term Growth
Comparative EPS Trends – Positioned for Long-Term Growth Quarterly Operating EPS Trends(1) $0.22 $0.21 $0.21 $0.20 $0.19 1Q14 2Q14 3Q14 4Q14 1Q15 1Q15 16% Year-Over-Year Operating EPS Growth Regulatory costs and earnings dilution from Basel III 2013 capital raise fully embedded in year-over-year r
Slide 9: Total Operating Revenue Growth
Total Operating Revenue Growth Total Operating Revenue Trends(1) $158.8 $161.8 $161.9(2) $154 3 $154.3 $142.2 $115.9 $122.4 $125.4 $123.7 $109.5 $32.6 $38.4 $36.4 $36.4 $38.2 1Q14 2Q14 3Q14 4Q14 1Q15 Operating Non-Interest Income Net Interest Income Total Operating Revenue 1Q15 record total operat
Slide 10: Full Year Financial Highlights – Annual Trends
Full Year Financial Highlights – Annual Trends 2014(5) 2013 2012 2011 2010 Net income available to common shareholders Quality ($ millions) $135.6 $123.5 $117.8 $90.3 $68.2 Operating E Earnings i (1) Earnings per diluted common share $0.80 $0.84 $0.84 $0.72 $0.60 ROTCE(1) 14.72% 17.35% 18.75% 16.32%
Slide 11: Consistent Loan and Transaction Deposit Growth
Consistent Loan and Transaction Deposit Growth Consistent Growth in Loans and Transaction Deposits Loan Growth Transaction Deposit and Customer Repo Growth (Spot Balances, In Billions) (Spot Balances, In Billions) CAGR 4Q09 – 1Q15 CAGR 4Q09 – 1Q15 Total 13.6% Total 15.4% Organic(1) 7.8% Organic(1) 9
Slide 12: Transaction Deposit Growth - Strengthened Funding Mix
Transaction Deposit Growth - Strengthened Funding Mix Consistent Transaction Deposit Growth Results in Strengthened Deposit Mix Total Transaction Deposits and Customer Repos Mix 24% 21% 21% 29% % 27% 26% 79% 79% 74% 76% 71% 73% 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 3/31/2015 Transac
Slide 13: Market Position
Market Position Strong Market Position Acquisition-Related Expansion Enhances Organic Growth Opportunities 13
Slide 14: Disciplined Acquisition Strategy – Platform for Organic Growth
Disciplined Acquisition Strategy – Platform for Organic Growth Disciplined and Consistent Acquisition Strategy Strategy Disciplined identification and focus on markets that offer potential to leverage core competencies and growth opportunities Criteria Create shareholder value Meet strateg
Slide 15: FNB Acquisitions Position the Company for Long-term Sustainable Organic Growth
FNB Acquisitions Position the Company for Long-term Sustainable Organic Growth Total Assets (in Billions) OBA Parkview Assets: Assets: $0.4 bn $0.8 bn North Omega East Assets: BCSB Assets: $1.8 bn Annapolis Assets: $0.1 bn Bancorp $0.6 bn Assets: Iron & Parkvale $0.4 bn $18.0 NSD Legacy Glass Assets
Slide 16: FNB Banking Footprint
FNB Banking Footprint FNB Recent Acquisition Summary FNB Deposit Market MSA MSA Share Population 2.4 Million Pittsburgh #3 (#22 MSA) Cleveland MSA PVSA - Closed 1Q12 2.7 Million Baltimore #8 (#20 MSA) ANNB - Closed 2Q13 Pittsburgh MSA BCSB - Closed 1Q14 OBAF – Closed 3Q14 FNB H Headquarters
Slide 17: MSA Market Share - Proven Success, Opportunity For Growth
MSA Market Share - Proven Success, Opportunity For Growth Established MSA Markets – Proven Success, Leading Share Position Achieved Pittsburgh, PA MSA All Other Established MSAs Total Deposits Market Total Deposits Market Rank Institution 2014 ($000) Share (%) Rank Institution 2014 ($000) Share 1 PN
Slide 18: FNB Maryland Acquisition Strategy
FNB Maryland Acquisition Strategy Strategy St t – Meaningful M i f l presence established: t bli h d #8 retail t il d deposit it market k t FNB Maryland Presence share with 31 branches, median household income of $77,000 Criteria - Cost effective, lower-risk acquisitions with $1.4 billion(1) in
Slide 19: Operating Results
Operating Results 1Q15 Highlights and Trends 19
Slide 20: 1Q15 Operating Highlights
1Q15 Operating Highlights Continued High-Quality High Quality Earnings and Positive Trends (All comparisons refer to the fourth quarter of 2014, 2014 except as noted) Operating(1) net income available to common shareholders of $38.3 million; earnings per diluted common share of $0.22 16% year-ov
Slide 21: 1Q15 Financial Highlights – Quarterly Trends
1Q15 Financial Highlights – Quarterly Trends Current Prior Prior Year Quarter Quarter Quarter 1Q15 4Q14 1Q14 Net income ($ millions) $40.3 $38.4 $33.1 Operating Earnings(1) Net income available to common shareholders ($ millions) $38.3 $36.4 $30.8 Earnings per diluted common share $0.22 $0.21 $0.19
Slide 22: Asset Quality Trends
Asset Quality Trends NPL’s+OREO/ NCO’s Originated Loans and Leases/ Total Originated Loans and Leases + OREO(1)(2) Total Originated Loans and Leases(1)(3) 3.50% 0.90% 3.00% 0.80% 0.70% 2.50% 2.15% 0.60% 0.62% 2.00% 0.50% 1.60% 1.44% 1 50% 1.50% 0 40% 0.40% 1.13% 0.41% 1.08% 0.30% 1.00% 0.28% 0.20% 0
Slide 23: Asset Quality Results
Asset Quality Results(1) $ in Thousands 1Q15 4Q14 1Q14 1Q15 Highlights Continued positive credit quality trends marked NPL’s+OREO/Total loans and 1.08% 1.13% 1.46% by reduced problem asset and delinquency leases+OREO e es levels Delinquency 0.86% 0.99% 1.17% NPL’s+OREO/Total loans and leases +OR
Slide 24: Balance Sheet Highlights – Quarterly Averages
Balance Sheet Highlights – Quarterly Averages Organic 1Q15 Growth(1) Average Balances, $ in Millions Balance $ % 1Q15 Highlights Continued high-quality balance sheet Securities $2 984 $2,984 - - growth,, including g g solid organic g g growth Average, organic growth results: Total loans $11,284
Slide 25: Net Interest Margin
Net Interest Margin Net Interest Margin Trends(1) 3.62% 3.60% 3.63% 3.54% 3.48% 0.02% 0.01% 0.11% 0 05% 0.05% 0.05% 3.60% 3.59% 3.52% 3.49% 3.43% 1Q14 2Q14 3Q14 4Q14 1Q15 Core Net Interest Margin Accretable Yield Benefit Net Interest Income / Net Interest Margin First quarter 2015 net interest inc
Slide 26: Efficiency Ratio Trends
Efficiency Ratio Trends Efficiency Ratio Trends FNB Efficiency Ratio Relative to Peers FNB’s efficiency ratio continues to trend favorably relative to peers Upper quartile results 1Q15 marks 12th consecutive quarter with an efficiency ratio under 60% 65% 64% 64% 63% 61% 60% 61% 60% 59% 58% 57%
Slide 27: Investment Thesis
Investment Thesis Long-Term Investment Thesis 27
Slide 28: Long-Term Investment Thesis
Long-Term Investment Thesis FNB’s long‐term investment thesis reflects a commitment to efficient capital management and creating value for our shareholders L Long‐Term T IInvestment t t Th Thesis: i TTargeted t dAAnnuall TTotal t lRReturn t ffor Sh Shareholders h ld off 9 9‐12% 12% Thesis Centered o
Slide 29: Return on Average Tangible Common Equity Trends (ROATCE)
Return on Average Tangible Common Equity Trends (ROATCE) ROATCE Trends(1) 1Q14 = First full quarter impact of 4Q13 capital actions taken to position FNB for Basel III 18.75% 17.35% 16.32% 14 71% 14.71% 14 72% 14.72% 15 13% 15.13% 11.03% 11.21% 10.92% 10.38% 6.98% FNB 5 23% 5.23% Peer Median 2010 201
Slide 30: High-Quality, Consistent Operating Results
High-Quality, Consistent Operating Results FNB’s ability to deliver consistent operating results exceeds peer results FNB and Peer Volatility (Standard Deviation 1Q10 – 1Q15) ROAA Volatility Revenue/Avg Assets Volatility 0.25% 0.080% 0.070% 0.20% 0 20% 0.060% 0.15% 0.050% 0.040% 0.10% 0.030% 0.020%
Slide 31: Dividend Yield Trends Relative to Peers
Dividend Yield Trends Relative to Peers Dividend Yield as of Respective Period-End(1) 4.89% 4.52% 4.24% 3.80% 3.65% 3.60% 2.47% 2.30% 2.24% 2.15% 2.00% 1.43% FNB Peer Median 2010 2011 2012 2013 2014 1Q15 FNB % 2010 2011 2012 2013 2014 1Q15 Ranking(2) 93rd 92nd 92nd 92nd 83rd 83rd (1) Represents annu
Slide 32: Capital and Tangible Book Value
Capital and Tangible Book Value Tangible Common Equity Ratio Tangible Book Value Per Share $6.18 7.01% 6.81% 6.83% $5.99 $5.58 Tangible Common Equity Tangible Book Value March 31, 2014 December 31, 2014 March 31, 2015 FNB capital ratios continued to exceed federal bank regulatory agency “well capi
Slide 33: Supplemental Information
Supplemental Information 33
Slide 34: Supplemental Information Index
Supplemental Information Index Diversified Loan Portfolio Deposits and Customer Repurchase Agreements Investment Portfolio Loan oan Risk Profile Regency Finance Company Profile Regional Peer Group Listing GAAP to Non‐GAAP Reconciliation 34
Slide 35: Diversified Loan Portfolio
Diversified Loan Portfolio 3/31/2015 CAGR % of Portfolio ($ in millions) 12/31/08‐ $11.4 Billion Loan Portfolio Balance 3/31/15 12/31/08 3/31/15 March 31, 2015 C&I $2,397 16.0% 16% 21% Other 2% Regency 1% Indirect 8% Florida 0% CRE: Non‐Owner Occupied 2,241 15.1% 16% 20% Residential Commercial Lease
Slide 36: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 3/31/2015 CAGR Mix % $12.6 Billion Deposits and ($ in millions) 12/31/08‐ Customer Repo Agreements Balance 3/31/15 12/31/08 3/31/15 March 31, 2015 Savings, NOW, MMDA $6,180 13.4% 44% 49% Non‐Interest Time Deposits 2,589 1.8% 36% 21% Bearing 22% Non‐Interes
Slide 37: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $3.1 Billion Investment Portfolio ($ in millions(1)) Portfolio Investment % March 31, 2015 Agency MBS $1,180 38% AAA 100% Ratings Composition CMO Agency 1,078 35% AAA 100% Agency Senior Notes 537 17% AAA 100% AAA 2% AAA, 93.7% AA 74% Municipals 178 6% A 23
Slide 38: Loan Risk Profile
Loan Risk Profile Balance YTD Net Charge‐ Total Past (1) $ in millions 3/31/2015 % of Loans NPL's/Loans Offs/Loans(1) Due/Loans(1) Commercial and Industrial $2,397 21.0% 0.41% 0.10% 0.52% CRE: Non‐Owner Occupied 2,241 19.7% 0.31% ‐0.02% 0.40% CRE: Owner Occupied 1,555 13.6% 1.41% 0.28% 1.64% Home Eq
Slide 39: Regency Finance Company Profile
Regency Finance Company Profile Consumer finance business with over 80 years of consumer lending experience Credit quality: 1Q15 net charge‐offs to average loans of 4.17% Returns: 1Q15: ROA 4.11%, ROE 44.21%, ROTE 49.40% Regency Finance Company $174 Million Loan Portfolio Pennsylvania 22% Ohio
Slide 40: Regional Peer Group Listing
Regional Peer Group Listing Ticker Institution Ticker Institution ASB Associated Bancorp ONB Old National Bancorp BXS Bancorp South PVTB Private Bancorp, Bancorp Inc Inc. CBSH Commerce Bancshares, Inc. SBNY Signature Bank FCF First Commonwealth SNV Synovus Financial Corp. FHN Fi t H First Horizon i
Slide 41: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating Return on Average Tangible Common Equity Operating Return on Average Tangible Assets For the Quarter Ended March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 Operating net income Net income available to common shareholders $ 38,
Slide 42: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Total Operating Revenue For the Quarter Ended March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 Total Revenue Net Interest Income (FTE) $ 123,704 $ 125,357 $ 122,409 $ 115,884 $ 109,547 Non-Interest Income 38,182 39,462 37,552 39,189 42,
Slide 43: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating p g Return on Average g Tangible g Common Equity q y Operating Return on Average Tangible Assets Year Ended December 31, 2014 2013 2012 2011 2010 Operating net income Net income available to common shareholders $135,698 $117,804 $110,410 $87,047 $74,652 Add: