F.n.b. Corporation · NYSE:FNB
F.n.b — Q1 2022 Earnings Presentation
42 slides from F.n.b's earnings presentation, May 2022
Slide 1: F.N.B. Corporation Investor Presentation First Quarter 2022
F.N.B. Corporation Investor Presentation First Quarter 2022 May 2022
Slide 2: Use of Cautionary Statement Regarding Forward-Looking Information
Use of Cautionary Statement Regarding Forward-Looking Information This document may contain statements regarding F.N.B. Corporation’s outlook for earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset quality levels, financial position and other matters regarding or
Slide 3: Use of Non-GAAP Financial Measures and Key Performance Indicators
Use of Non-GAAP Financial Measures and Key Performance Indicators To supplement our Consolidated Financial Statements presented in accordance with GAAP, we use certain non-GAAP financial measures, such as operating net income available to common stockholders, operating earnings per diluted common sh
Slide 4: Overview of FNB
Overview of FNB Company Overview Financial Highlights as of 3/31/22 Ticker: FNB (NYSE) $4.1 Billion(1) Dividend Yield(1): 4.15% Market Capitalization --------------------------------------------------- Net Interest Margin (FTE): 2.61% Founded: 1864 -----------------------------------------------
Slide 5: Why FNB
Why FNB A Strong Franchise Proven Performance Sustainable Growth Nationally recognized as Consistent credit Investments in digital a 2022 Top Workplace underwriting and technology and data USA and Financial thoughtful capital infrastructure to better Services Top Workplace and liquidity serve custom
Slide 6: The Six Pillars of Our Long-Term Strategy
The Six Pillars of Our Long-Term Strategy FNB drives performance to further improve on long-term strategic planning metrics Drive Organic Optimize the Retail Build a Strong, Growth Bank Differentiated Brand Maintain Build a Durable, Promote Core Values Efficiency and Scalable including Diversity & E
Slide 7: FNB Continues to Serve All its Stakeholders
FNB Continues to Serve All its Stakeholders • $250 million commitment to address economic and • Winner of more than 80 prestigious Greenwich Excellence social inequity in LMI communities and Best Brand Awards since 2011, including 17 this year, as well as named one of America’s Best Banks & World’s
Slide 8: Strong Financial Performance
Strong Financial Performance Internal Capital Generation1 YoY 2021 YoY Loan Growth (ex PPP) vs Peers 95 Percentile th 15.0% 6% 5% Total Loans Commercial Loans 2021 YoY Balance Sheet Growth Bottom Quartile Median Top Quartile FNB 9% 9% FY2021 Efficiency Ratio Tangible Book Value Total Deposits vs Pee
Slide 9: Strategic Objective to Drive Diversified Fee Income Growth
Strategic Objective to Drive Diversified Fee Income Growth o We have achieved double-digit growth in our fee-based businesses, including capital markets, mortgage banking, and wealth management, over the past 5 years. o This diversified business model led us to record levels of total non-interest in
Slide 10: Expansion of Geographic Footprint
Expansion of Geographic Footprint Since the financial crisis, FNB has focused on spreading its footprint across the Mid-Atlantic and Carolinas to high growth MSAs such as Charlotte, DC, Baltimore, and Charleston • Expansion has given FNB FNB Branch Network access to over 10M new 2009 – $9B Total Ass
Slide 11: FNB's Deposit Growth is Spread Across Entire Footprint
FNB’s Deposit Growth is Spread Across Entire Footprint1 FNB’s market deposit CAGR is 15% over the last 5 years buoyed by our new markets Cleveland Winston-Salem Population: 2.1 million 1 6 Population: 676k 1 # of 100k Bus: 73k # of 100k Bus: 20k Deposit Market Share Rank: 14 Deposit Market Share Ran
Slide 12: Technology Evolution & Digital Trends
Technology Evolution & Digital Trends Significant opportunity to drive increased digital product adoption across our expanding client base Omnichannel strategy Digital has been on the rise Expanding our online involves a robust ATM and growing rapidly capabilities network This is boosted by our 3rd
Slide 13: Online and Mobile Channels Continue to See Strong Adoption
Online and Mobile Channels Continue to See Strong Adoption Strong momentum in usage of digital tools and other non-branch delivery channels, along with tools to equip our teams to outperform Online Banking Mobile eStore Integration User base had continued 10% growth increase YoY with 900k+ 56% Incre
Slide 14: FNB Mobile Application Ratings Rival Large Money Centers
FNB Mobile Application Ratings Rival Large Money Centers Apple Google Number of Number of Number of Number of Weighted Bank Total Overall Reviews Stars Reviews Stars Reviews Average Hancock Whitney Corporation 4.8 49,987 4.7 8,471 58,458 4.79 Wells Fargo Corporation 4.8 6,919,255 4.6 1,560,846 8,480
Slide 15: FNB Leads Peers with the Most Mobile App Features
FNB Leads Peers with the Most Mobile App Features Mobile App FNB JPM BAC WFC KEY PNC ZION FULT CBSH FITB FCNCA ASB FHN HBAN PNFP MTB CFG UMPQ SNV VLY PBCT UBSI WTFC WBS NYCB HWC Features AddFNB’s Bill mobile banking ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Payees Apple Watch Application ● ●
Slide 16: FNB's Holistic Data Strategy
FNB’s Holistic Data Strategy Investments in data architecture lead to organic customer growth Acquire Consolidate Evaluate Deliver Delivery focuses on data science, visualization, and advanced analytics Data Enterprise Data Self-Service Data Warehouse Preparation Sources Casual User Internal Dynamic
Slide 17: Financial Highlights
Financial Highlights EN.B. Corporation 17
Slide 18: First Quarter 2022 Highlights
Financial Highlights First Quarter 2022 Highlights Earnings per diluted common share of $0.15 and operating (non-GAAP) earnings per share of $0.26. Howard Bancorp, Inc. (Howard) acquisition o Successfully completed acquisition on January 22, 2022. Howard Bank merged into First National Bank of
Slide 19: First Quarter Financial Highlights
First Quarter Financial Highlights 1Q22 4Q21 1Q21 Net income available to common stockholders $51.0 $96.5 $91.2 (millions) Reported Earnings per diluted common share $0.15 $0.30 $0.28 Results Book value per common share $15.19 $15.81 $15.27 Operating net income available to common (1) $92.0 $97.1 $9
Slide 20: Asset Quality
Asset Quality $ in millions, unless otherwise stated 1Q22 4Q21 1Q21 1Q22 Highlights o First quarter 2022 credit metrics include Howard Delinquency 0.66% 0.61% 0.80% Bank portfolio, which came in slightly better than expected. NPLs+OREO/Total loans and leases + OREO 0.40% 0.38% 0.65% o Continued stro
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 1Q22 4Q21 1Q21 QoQ ∆(3) YoY ∆ 1Q22 Highlights o Average securities reached Securities 6,956 6,487 6,044 7.2% 15.1% $7.0 billion as investments increased during the last two quarters to take advantage of Total Loans(4) 26,239 24,734 25,453 6.1% 3.1% the
Slide 22: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 1Q22 4Q21 1Q21 QoQ Δ(2) YoY Δ 1Q22 Highlights Total interest income $253,580 $244,752 $251,472 3.6% 0.8% o Net interest income increased from the prior quarter due to higher Total interest expense 19,504 21,476 28,549 (9.2%) (31.7%) average
Slide 23: Non-Interest Income
Non-Interest Income (1) $ in thousands 1Q22 4Q21 1Q21 QoQ Δ YoY Δ 1Q22 Highlights Service charges $31,515 $32,462 $27,831 (2.9%) 13.2% o Insurance commissions and fees and wealth Trust income 10,349 9,534 9,083 8.5% 13.9% management increased 42.6% and 7.6%, linked- quarter. Insurance commissions an
Slide 24: Non-Interest Expense
Non-Interest Expense (2) $ in thousands 1Q22 4Q21 1Q21 QoQ Δ YoY Δ 1Q22 Highlights (1) $112,130 $104,053 $107,303 7.8% 4.5% o Salaries and employee Salaries and employee benefits benefits increased linked-quarter related (1) Occupancy and equipment 34,257 31,115 33,193 10.1% 3.2% to normal seasonal
Slide 25: Net Interest Income and Net Interest Margin (FTE)
Net Interest Income and Net Interest Margin (FTE) o PPP contributed $7.4 million of net interest income in 1Q22, compared to $11.6 million in 4Q21 and $22.8 million in 1Q21. o Purchase accounting accretion (PAA) contributed $2.9 million in 1Q22, compared to $4.2 million in 4Q21 and $6.9 million in 1
Slide 26: Interest Rate Risk Profile
Interest Rate Risk Profile Effect on Net Interest Income (%) 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 Loan Repricing Frequency2 Shocks +200 b.p. 14.1 15.4 15.8 14.4 13.2 1 6 ,0 0 0 , 0 0 As of March 31, 2022 +100 b.p. 6.9 7.3 7.5 7.0 6.5 1 4 ,0 0 0 , 0 0 50.4% Other -100 b.p. -1.9 -2.3 -2.4 -2.4 -4.
Slide 27: Full Year 2022 Financial Objectives
Full Year 2022 Financial Objectives Q2 2022 Guidance FY 2022 Guidance Commentary Mid-to-high single digit organic growth, Spot Loans Low-double digit to low-teen growth excluding Howard Bank Balance Sheet(1) Includes deposit run-off from the PPP Spot Deposits High single digit growth program and gov
Slide 28: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements As of March 31, 2022 Balance Portfolio (in millions) (%) Savings, NOW, MMDA Savings, NOW, MMDA $19,226 56% 56% Non-Interest Non-Interest Bearing 11,729 34% Bearing 34% Transaction Deposits $30,955 90% Time Deposits 2,949 9% $34.3B Total Deposits $33,904 99
Slide 29: Deposits Composition
Deposits Composition Strong deposit growth with improving NIB demand over time Total Deposits 2009 – 2022 YTD 2009 2022 YTD Δ NIB Deposits 16% 35% 19% Time Deposits 35% 9% (26%) 35% 34% 31% 26% 26% 26% 26% 56% 57% 57% 24% 52% 55% 23% 54% 22% 19% 18% 58% 16% 16% 54% 56% 53% 53% 50% 52% 52% 21% 22% 19
Slide 30: Investment Portfolio
Investment Portfolio Highly Rated Investment Portfolio As of March 31, 2022 % Ratings as of March 31, 2022 1 ($ in millions ) Balance Portfolio Investment % Agency Debentures Agency MBS $2,648 38% AAA 100% 5% Agency CMO 2,112 30% AAA 100% Agency CMO Agency Debentures 346 5% AAA 100% 30% AAA 14% Muni
Slide 31: 2022 Peer Group Listing
2022 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp PNFP Pinnacle Financial Partners BKU BankUnited, Inc. RF Regions Financial Corp. BOKF BOK Financial Corp. SNV Synovus Financial Corp. CBSH Commerce Bancshares, Inc. SSB SouthState Corp. CFR Cullen/Frost Bankers, I
Slide 32: Additional Financial Data
Additional Financial Data 32
Slide 33: Non-GAAP to GAAP Reconciliation
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Slide 34: Non-GAAP to GAAP Reconciliation
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Slide 35: Non-GAAP to GAAP Reconciliation
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Slide 36: Non-GAAP to GAAP Reconciliation
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Slide 37: Non-GAAP to GAAP Reconciliation
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Slide 38: Non-GAAP to GAAP Reconciliation
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Slide 39: Non-GAAP to GAAP Reconciliation
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Slide 40: Non-GAAP to GAAP Reconciliation
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Slide 41: Non-GAAP to GAAP Reconciliation
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Slide 42: Non-GAAP to GAAP Reconciliation
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