F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (2016)
44 slides from F.n.b's investor presentation, 2016
Slide 1: F.N.B. Corporation Investor Presentation First Quarter 2016
F.N.B. Corporation Investor Presentation First Quarter 2016
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: Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial Information This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act, relating to present or future trends or factors affecting the banking industry and
Slide 4: F.N.B. Corporation
F.N.B. Corporation About F.N.B. Corporation Experienced Leadership Team Favorably Positioned for Long-Term Success Strong Operating Trends 4
Slide 5: About F.N.B. Corporation
About F.N.B. Corporation • Headquarters: Pittsburgh, PA • Assets: $20.8 billion(1) High-Quality, • Loans: $14.3 billion(1) Growing Regional Financial Institution • Deposits: $15.7 billion(1) • Banking locations: 327(1) • Market Capitalization: $2.7 billion(2) • Attractive and expanding footprint: Ba
Slide 6: Experienced Leadership Team
Experienced Leadership Team Experienced and respected executive management team has guided FNB through the cycle, and positioned the Company for long-term, sustained growth Years of Banking Experience Joined FNB Prior Experience President and CEO Vincent J. Delie, Jr. 28 2005 National City Chief Fin
Slide 7: Proven sustainable business model that can be scaled as the franchise continues to grow
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 5 years in a row
Slide 8: Reposition and Reinvest – Actions
Reposition and Reinvest – Actions 2009-2011 2012 2013 2014 2015 2016 PEOPLE Talent Management Director of Data Chief Technology & Strengthened team Chief Wholesale Enterprise Management, Chief Marketing through key hires; Banking and Chief Director of Product & Attract, retain, develop best talent O
Slide 9: Comparative FY 2015 Trends – Positioned for Long-Term Growth
Comparative FY 2015 Trends – Positioned for Long-Term Growth YTD Operating Trends Operating Earnings Per Share(1) Total Operating Revenue(1)(2) 9% Year-Over-Year $0.87 $667.4 Operating EPS Growth $0.80 $617.0 Investments in fee-based businesses and continued organic loan growth support consistent
Slide 10: Total Operating Revenue Growth
Total Operating Revenue Growth Total Operating Revenue Trends(1) $161.8 $165.3 $168.2 $172.0 $161.9 $125.6 $127.2 $129.4 $125.4 $123.7 $36.4 $38.2 $39.7 $41.0 $42.6 4Q14 1Q15 2Q15 3Q15 4Q15 Operating Non-Interest Income Net Interest Income Total Operating Revenue 4Q15 record total revenue of $172.
Slide 11: Full Year Financial Highlights – Annual Trends
Full Year Financial Highlights – Annual Trends 2015 2014 2013 2012 2011 Net income available to common shareholders Quality ($ millions) $153.7 $135.6 $123.5 $117.8 $90.3 Operating Earnings(1) Earnings per diluted common share $0.87 $0.80 $0.84 $0.84 $0.72 ROTCE(1) 14.52% 14.72% 17.35% 18.75% 16.32%
Slide 12: Transaction Deposit Growth - Strengthened Funding Mix
Transaction Deposit Growth - Strengthened Funding Mix Consistent Transaction Deposit Growth Results in Strengthened Deposit Mix(1) Total Transaction Deposits and Customer Repos Mix 24% 21% 19% 29% 27% 26% 79% 81% 74% 76% 71% 73% 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Trans
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 Recoup diminution of capital in short t
Slide 15: FNB Acquisitions Position the Company for Long-term Sustainable Organic Growth
FNB Acquisitions Position the Company for Long-term Sustainable Organic Growth Acquisition History – Total Assets (in $ billions) 17 FITB Branches OBA METR Parkview Assets: Assets: Assets: $0.4 bn $2.9 bn $0.8 bn 5 BAC Omega BCSB Branches Assets: Annapolis Assets: $1.8 bn Bancorp $0.6 bn $20.8 Asset
Slide 16: FNB Banking Footprint
FNB Banking Footprint FNB Recent Acquisition Summary FNB Deposit Market Region MSA Share Population 2.4 Million Pittsburgh #3 (#22 MSA) PVSA - Closed 1Q12, FITB Branches Cleveland MSA expected 1H16 2.7 Million Baltimore #8 (#20 MSA) ANNB - Closed 2Q13, BCSB - Closed 1Q14, Pittsburgh MSA OBAF - C
Slide 17: Metro Transaction Rationale
Metro Transaction Rationale FNB has become the largest regional bank and second largest bank based in Pennsylvania, adding $2.9 billion in assets(1) FNB obtained immediate scale and #3 market share in the Harrisburg MSA with $1.5 billion in deposits(2) Strategically Attractive demographics wit
Slide 18: Metro Transaction Overview
Metro Transaction Overview $32.72 per Metro Bancorp, Inc. share(1) Consideration Fixed 2.373x exchange ratio 100% stock Approximately $474 million(1) Deal Value 1.72x Tangible Book Value Gross Credit Mark 4.9% (credit diligence covered over 80% of commercial portfolio) Cost savings est
Slide 19: 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 Harrisburg-Carlisle, PA MSA Total Deposits Market Total Deposits Market Rank Institution 2015 ($000) Share (%) Rank Institution 2015 ($000) Share (%)
Slide 20: Operating Results
Operating Results 4Q15 Highlights and Trends 20
Slide 21: 4Q15 Operating Highlights
4Q15 Operating Highlights Continued Momentum and Positive Trends (All comparisons refer to the third quarter of 2015, except as noted) Operating(1) net income available to common shareholders of $38.1 million; earnings per diluted common share of $0.22 5% year-over-year increase in operating ear
Slide 22: 4Q15 Operating Highlights (cont’d)
4Q15 Operating Highlights (cont’d) Continued Positive Trends (All comparisons refer to the third quarter of 2015, except as noted) Solid profitability performance Return on average tangible assets of 1.02%(1), Return on average tangible common equity of 13.97%(1) Core net interest margin(2) of
Slide 23: 4Q15 Financial Highlights – Quarterly Trends
4Q15 Financial Highlights – Quarterly Trends Current Prior Prior-Year Quarter Quarter Quarter 4Q15 3Q15 4Q14 Operating Net income available to common shareholders ($ millions) $38.1 $38.9 $36.4 Earnings(1) Earnings per diluted common share $0.22 $0.22 $0.21 ROTCE(1) 13.97% 14.43% 14.51% ROTA(1) 1.02
Slide 24: Asset Quality Results
Asset Quality Results(1) $ in Thousands 4Q15 3Q15 4Q14 4Q15 Highlights Continued stable credit quality results marked NPL’s+OREO/Total loans and 0.99% 0.99% 1.13% by favorable total delinquency and leases+OREO NPL’s+OREO levels compared to the third quarter of 2015 and the fourth quarter of 2014.
Slide 25: 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% 0.60% 2.00% 0.62% 2.15% 0.50% 1.50% 0.40% 1.60% 1.44% 0.41% 0.30% 1.00% 1.13% 0.99% 0.20% 0.28% 0.50% 0.10% 0
Slide 26: Balance Sheet Highlights – Quarterly Averages
Balance Sheet Highlights – Quarterly Averages Organic 4Q15 Growth(1) Average Balances, $ in Millions Balance $ % 4Q15 Highlights Continued high-quality balance sheet Securities $3,156 - - growth, including solid organic growth Strengthened funding mix Total loans $12,014 $250.0 8.4% Transactio
Slide 27: Net Interest Margin
Net Interest Margin Net Interest Margin Trends(1) 3.54% 3.48% 3.43% 3.39% 3.38% 0.05% 0.05% 0.04% 0.00% 0.01% 3.49% 3.43% 3.39% 3.38% 3.38%(2) 4Q14 1Q15 2Q15 3Q15 4Q15 Core Net Interest Margin Accretable Yield Benefit Net Interest Income / Net Interest Margin Fourth quarter 2015 net interest incom
Slide 28: 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 4Q15 marks 15th consecutive quarter with an efficiency ratio under 60% 65% 65% 64% 63% 61% 60% 59% 58% 57% 56% FNB
Slide 29: Investment Thesis
Investment Thesis Long-Term Investment Thesis 29
Slide 30: 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 Long-Term Investment Thesis: Targeted Annual Total Return for Shareholders of 9-12% Thesis Centered on a Balanced Combination of Capital Managem
Slide 31: 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% 14.72% 14.52% 11.03% 11.21% 10.75% 10.48% 6.98% FNB Peer Median 2011 2012 2013 2014 2015 FNB % 2011 2012 2013 20
Slide 32: 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 – 4Q15) ROAA Volatility Revenue/Avg Assets Volatility 0.25% 0.080% 0.070% 0.20% 0.060% 0.15% 0.050% 0.040% 0.10% 0.030% 0.020% 0.05%
Slide 33: Dividend Yield Trends Relative to Peers
Dividend Yield Trends Relative to Peers Dividend Yield as of Respective Period-End(1) 4.52% 4.24% 3.80% 3.60% 3.60% 2.47% 2.41% 2.24% 2.30% 2.00% FNB Peer Median 2011 2012 2013 2014 2015 FNB % 2011 2012 2013 2014 2015 Ranking(2) 92nd 92nd 92nd 83rd 79th (1) Represents annualized dividend yield based
Slide 34: Capital and Tangible Book Value
Capital and Tangible Book Value Tangible Common Equity Ratio Tangible Book Value Per Share $6.36 $6.38 6.98% 6.83% 6.71% $5.99 Tangible Common Equity Tangible Book Value December 31, 2014 September 30, 2015 December 31, 2015 FNB capital ratios continued to exceed federal bank regulatory agency “well
Slide 35: Supplemental Information
Supplemental Information 35
Slide 36: Supplemental Information Index
Supplemental Information Index Diversified Loan Portfolio Deposits and Customer Repurchase Agreements Investment Portfolio Loan Risk Profile Regency Finance Company Profile Regional Peer Group Listing GAAP to Non-GAAP Reconciliation 36
Slide 37: Diversified Loan Portfolio
Diversified Loan Portfolio 12/31/2015 CAGR % of Portfolio ($ in millions) 12/31/10- $12.2 Billion Loan Portfolio Balance 12/31/15 12/31/10 12/31/15 December 31, 2015 C&I $2,554 21.3% 16% 21% Other 2% Regency 1% CRE: Non-Owner Occupied 2,529 19.1% 18% 21% Indirect 8% Commercial Residential Leases 2%
Slide 38: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 12/31/2015 CAGR Mix % $12.9 Billion Deposits and ($ in millions) 12/31/10- Customer Repo Agreements Balance 12/31/15 12/31/10 12/31/15 December 31, 2015 Savings, NOW, MMDA $7,098 15.7% 47% 55% Non-Interest Bearing 3,059 22.9% 15% 24% Non-Interest Bearing 2
Slide 39: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $3.5 Billion Investment Portfolio ($ in millions(1)) Portfolio Investment % December 31, 2015 Agency MBS $1,415 40% AAA 100% Ratings Composition CMO Agency 996 28% AAA 100% Agency Senior Notes 505 14% AAA 100% Short Term 282 8% AAA 100% AAA, 92.7% AAA 3% A
Slide 40: Loan Risk Profile
Loan Risk Profile Balance YTD Net Charge- Total Past (1) $ in millions 12/31/2015 % of Loans NPL's/Loans Offs/Loans(1) Due/Loans(1) Commercial and Industrial $2,554 21.0% 0.60% 0.07% 0.77% CRE: Non-Owner Occupied 2,529 20.7% 0.42% 0.05% 0.57% CRE: Owner Occupied 1,580 13.0% 1.25% 0.17% 1.61% Home Eq
Slide 41: Regency Finance Company Profile
Regency Finance Company Profile Consumer finance business with over 80 years of consumer lending experience Credit quality: FY 2015 net charge-offs to average loans of 3.99% Returns: FY 2015: ROA 3.72%, ROE 40.16%, ROTE 44.82% Regency Finance Company $186 Million Loan Portfolio Pennsylvania 19
Slide 42: 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, Inc. CBSH Commerce Bancshares, Inc. SBNY Signature Bank FCF First Commonwealth SNV Synovus Financial Corp. FHN First Horizon National Corp. TCB TC
Slide 43: 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 For the Fiscal Year Ended December 31, December 31, 2015 September 30, 2015 December 31, 2014 2015 2014 2013 2012 2011 Operating net income Net income
Slide 44: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Total Operating Revenue For the Quarter Ended For the Fiscal Year Ended December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Total Revenue Net Interest Income (FTE) $ 129,430 $ 127,151 $ 125,572 $ 123,