F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (September 2023)
48 slides from F.n.b's investor presentation, September 2023
Slide 1: F.N.B. Corporation Investor Presentation Third Quarter 2023
F.N.B. Corporation Investor Presentation Third Quarter 2023 September 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Information
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 affecti
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 Snapshot Financial Highlights as of 6/30/23 ❖ Ticker: FNB (NYSE) Assets: 12.4% CAGR since 2009 $44.8 billion ❖ Founded in 1864 ❖ Headquartered in Pittsburgh, PA Loans: 12.7% CAGR since 2009 $31.4 billion ❖ Diverse market presence across 7 states Deposits: 12.7% CAGR since 200
Slide 5: Investor Highlights
Investor Highlights ✓ Diversified revenue streams through retail and commercial banking, capital markets, wealth management and insurance. ✓ Proven, sustainable business model driving long-term growth and performance. Strong core franchise in o Disciplined sales culture focused on relationship-based
Slide 6: Why FNB?
Why FNB? A Strong Franchise Proven Performance Sustainable Growth Nationally recognized as a Consistent credit underwriting Investments in digital 2023 Top Workplace USA and thoughtful capital and technology and data and Financial Services Top liquidity management infrastructure to better serve Work
Slide 7: 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 with an underlying focus on a consistent credit culture Drive Organic Optimize the Retail Build a Strong, Growth Bank Differentiated Brand Maintain Build a Durable, Promote Cor
Slide 8: FNB Continues to Serve All its Stakeholders
FNB Continues to Serve All its Stakeholders ❖ $250 million commitment to address economic and social ❖ Winner of more than 90 prestigious Greenwich Excellence and inequity in LMI communities Best Brand Awards since 2011 and named one of America’s Best Banks & World’s Best Banks by Forbes ❖ Outstandi
Slide 9: Strong Financial Performance
Strong Financial Performance Strong Profitability Metrics Quarter Ended 6/30/2023 2Q23 YoY Spot Balances Growth 18.3% 50.0% ROATCE(1) Efficiency Ratio(1)(2) 12% 1% Total Loans Total Deposits 1.4% 3.37% ROATA(1) Net Interest Margin(1)(2) 2Q23 YoY Quarterly Revenue Growth Significant Capital, Reserves
Slide 10: Strong Capital Position
Strong Capital Position FNB maintains capital ratios that are stronger than peer banks while demonstrating a more conservative credit culture. TCE Ratio CET1 Ratio 6/30/23 6/30/23 (1) 7.5% 6.9% 10.1% 10.3% 6.8% 6.4% 9.3% 9.0% 8.4% 8.4% (2) FNB Peer Median FNB Peer Median Reported Includes AFS Report
Slide 11: Both Relative and Absolute Capital and Reserves Strengthened Materially
Both Relative and Absolute Capital and Reserves Strengthened Materially Last 5 Years FNB maintains capital ratios that align with peer banks while demonstrating a more conservative credit culture CET1 Ratio TCE Ratio(1) Reserve / Loan Ratio 12.0% 9.00 100% 8.78 100% 11.1% 1.50 100% 10.1% 10.3% 8.00
Slide 12: Stable and Granular Deposit Base
Stable and Granular Deposit Base Diversified funding channels provide levers for growth and reflect long-term relationships Deposit Composition Key Statistics Private as of June 30, 2023 as of June 30, 2023 Banking ❖ $33.8 billion in total deposits with a continued strategic focus 3% Consumer 41% on
Slide 13: Stable and Granular Non-Interest-Bearing Deposits
Stable and Granular Non-Interest-Bearing Deposits FNB maintains a more stable deposit mix relative to peers(1). Change in Non-Interest Bearing Deposit Change in Non-Interest Bearing Deposit Balance to Total Deposit Mix 4Q2022 – 2Q2023 4Q2022 – 2Q2023 FNB (8.4%) Peer 2 (0.8%) Peer 1 (8.4%) FNB (2.0%)
Slide 14: Strategic Objective to Drive Diversified Fee Income Growth
Strategic Objective to Drive Diversified Fee Income Growth ❖ We have achieved double-digit growth in our fee-based businesses, including capital markets, mortgage banking, and wealth management, over the past 5 years ❖ This diversified business model led us to continued strong performance through 20
Slide 15: 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 ~8M new households 2009 – $9B Tot
Slide 16: Diverse Footprint with Strong Market Share
Diverse Footprint with Strong Market Share(1) FNB’s market deposit CAGR is 14% over the last 6 years buoyed by our new markets 1 6 Cleveland Winston-Salem Population: 2.1 million 1 Population: 685k # of 100k Bus(2): 134k # of 100k Bus: 39k Deposit Market Share Rank: 13 Deposit Market Share Rank: 3 D
Slide 17: 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 18: 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 ITM Investment User base had continued Increase in total ITMs YoY with 9% growth increase YoY
Slide 19: FNB Mobile Application Ratings Rival Large Money Centers
FNB Mobile Application Ratings Rival Large Money Centers Weighted Average via Apple + Google Ratings and Reviews Frost Bank 4.90 Pinnacle Financial 4.89 Regions 4.80 Wells Fargo 4.80 Hancock Whitney Corporation 4.77 Bank of America 4.76 BOKF Financial 4.75 F.N.B. Corporation 4.74 Valley National Ban
Slide 20: 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 21: Financial Highlights
Financial Highlights EN.B. Corporation 21
Slide 22: Second Quarter 2023 Highlights
Financial Highlights Second Quarter 2023 Highlights (compared to the year-ago quarter, unless stated otherwise) ❖ Earnings per diluted common share of $0.39, an increase of 30.0%. o Revenue totaled $410 million, an increase of 22.0%. o Net income available to common shareholders totaled $140 million
Slide 23: Second Quarter Financial Highlights
Second Quarter Financial Highlights 2Q23 1Q23 2Q22 YTD 2023 YTD 2022 Net income available to common stockholders $140.4 $144.5 $107.1 $284.9 $158.1 (millions) Reported Earnings per diluted common share $0.39 $0.40 $0.30 $0.78 $0.45 Results Book value per common share $15.92 $15.76 $15.19 Operating n
Slide 24: Asset Quality
Asset Quality $ in millions, unless otherwise stated 2Q23 1Q23 2Q22 2Q23 Highlights o The provision for credit losses Delinquency 0.75% 0.60% 0.58% supported loan growth and a specific reserve for a single C&I loan downgraded to nonperforming status during the quarter. NPLs+OREO/Total loans and leas
Slide 25: Loan Portfolio Mix
Loan Portfolio Mix Highly diversified, commercial-focused loan portfolio Loan Portfolio (As of June 30, 2023) C&I Owner CRE 22% 11% Equip Finance Loans and Leases 3% Other 1% Non-Owner CRE Indirect 26% 5% HELOC 4% Home Equity 8% Residential Mortgage 20% Total Loan Portfolio: $31.4 billion Total Comm
Slide 26: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE Portfolio(1) CRE - Office Loan Statistics Retail Office as of June 30, 2023 20.0% 22.3% ❖ Long history of working with well-established sponsors with a focus on strong global cash flows. ❖ Average LTV is in the low 60’s. $8.2 Billion of ❖ Delin
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 2Q23 1Q23 2Q22 QoQ ∆ (1) YoY ∆ 2Q23 Highlights o Total securities slightly Securities 7,145 7,270 7,070 (1.7%) 1.1% decreased quarter-over- quarter with AFS comprising 47% of the portfolio and Total Loans 31,048 30,410 27,245 2.1% 14.0% average duratio
Slide 28: FNB Corporation Historical Asset Quality
FNB Corporation Historical Asset Quality F.N.B. Corporation Full-year NCOs (% Loans F.N.B. Corporation Full Year NPL + OREO / Loans + Annual) OREO Florida Exit 2.84% Florida Exit 2.74% 2.62% 1.15% 2.05% 0.77% Regency Sale Regency Sale 1.42% 0.60% 0.58% 1.24% 0.93% 0.97% 0.91% 0.35% 0.79% 0.66% 0.61%
Slide 29: Deposit Composition
Deposit Composition FNB Maintains a Favorable Deposit Mix Total Deposits(1) (2009 – 2Q23) $34.8 $34.2 $33.8 2009 2Q23 Δ $31.7 NIB Deposits 16% 32% 16% $29.1 Time Deposits 35% 16% (19%) 34% 33% 32% $24.8 34% $23.5 31% $22.4 26% 26% 26% $16.1 $12.6 26% 53% 52% $11.4 56% $10.2 52% 55% 56% 57% $9.1 24%
Slide 30: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements As of June 30, 2022 FNB’s total deposit CAGR is 10.5% over the last 5 years Balance Portfolio Savings, NOW, Non-Interest (in millions) (%) MMDA Bearing Savings, NOW, MMDA $17,576 52% 52% 32% Non-Interest Bearing 10,914 32% Transaction Deposits $28,490 84%
Slide 31: Investment Portfolio
Investment Portfolio Highly Rated Investment Portfolio As of June 30, 2023 % Ratings as of June 30, 2023 ($ in millions) Balance Portfolio Investment % US Treasury, 4% Other, 1% Agency MBS $2,208 31% AAA 100% Agency CMO 1,777 25% AAA 100% Agency MBS, Agency CMBS, 31% Agency CMBS 1,328 19% AAA 100% 1
Slide 32: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 2Q23 1Q23 2Q22 QoQ Δ(2) YoY Δ 2Q23 Highlights Total interest income $484,200 $443,503 $280,778 9.2% 72.4% o Net interest income decreased linked- quarter from Total interest expense 154,956 106,849 27,088 45.0% 472.0% accelerating deposit co
Slide 33: Interest Rate Risk Profile
Interest Rate Risk Profile Cumulative Total Deposit Betas Loan Repricing Frequency as of June 30, 2023 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Fed Funds Rate 1.75% 3.25% 4.50% 5.00% 5.25% 16,000,000 Cumulative Deposit Beta 9.7% 12.5% 16.6% 21.8% 27.0% 47.7% Other 14,000,000 39.7% Total Loans: 12,00
Slide 34: Superior Core Deposit Base
Superior Core Deposit Base Total Average Deposit Cost vs. Fed Funds Target Rate (%) 3Q15 – 2Q19 Tightening Fed Cycle 2Q19 – 4Q21 Easing Fed Cycle Current Cycle (+225) (-225) (+500) 6.50 5.25 5.50 5.00 4.50 4.50 3.25 3.50 2.50 2.50 2.50 2.25 2.50 2.00 2.00 1.75 1.75 1.75 1.72 1.50 1.25 1.25 1.11 1.50
Slide 35: Non-Interest Income
Non-Interest Income $ in thousands 2Q23 1Q23 2Q22 QoQ Δ(1) YoY Δ 2Q23 Highlights o Service charges increased Service charges $34,056 $32,640 $34,693 4.3% (1.8%) linked-quarter due to strong treasury Trust income 10,630 10,611 9,713 0.2% 9.4% management services and interchange fees offsetting the ov
Slide 36: Non-Interest Expense
Non-Interest Expense $ in thousands 2Q23 1Q23 2Q22 QoQ Δ (2) YoY Δ 2Q23 Highlights Salaries and employee benefits $113,946 $120,247 $103,870 (5.2%) 9.7% o Salaries and employee benefits decreased $6.3 Occupancy and equipment 38,034 39,442 34,455 (3.6%) 10.4% million linked-quarter, primarily from se
Slide 37: 2023 Financial Objectives
2023 Financial Objectives 3Q23 Guidance FY 2023 Guidance Commentary Spot Loans Mid-single digit growth Balance Sheet(1) Expecting year-end balances to be flattish to Spot Deposits Down low-single digits 6/30/23 levels as seasonality becomes a tailwind in the second half of 2023. Net Interest Income
Slide 38: 2023 Peer Group Listing
2023 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,
Slide 39: Additional Financial Data
Additional Financial Data 39
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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Slide 43: Non-GAAP to GAAP Reconciliation
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Slide 44: Non-GAAP to GAAP Reconciliation
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Slide 45: Non-GAAP to GAAP Reconciliation
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Slide 46: Non-GAAP to GAAP Reconciliation
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Slide 47: Non-GAAP to GAAP Reconciliation
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Slide 48: Non-GAAP to GAAP Reconciliation
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