F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (February 2021)
52 slides from F.n.b's investor presentation, February 2021
Slide 1: F.N.B. Corporation Investor Presentation
F.N.B. Corporation Investor Presentation February 2021 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial 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
Slide 3: Corporate Profile and Overview
Corporate Profile and Overview 3
Slide 4: Snapshot of F.N.B. Corporation
Snapshot of F.N.B. Corporation Summary1 2 3 Company Description F.N.B. Corporation (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in seven states and the District of Columbia. FNB's market coverage spans several major metropolitan areas
Slide 5: 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 Build a Strong, Growth Retail Bank Differentiated Brand Maintain Promote Core Build a Durable, Values including Efficiency and Scalable Diversity & E
Slide 6: Strategic Objectives-2021 and Beyond
Strategic Objectives-2021 and Beyond FNB is Well-Positioned to Deliver Greater Shareholder Value Consumer Wholesale Fee-Based o Enhance analytics capabilities to better o Continue expansion of equipment o Expand debt capital markets capabilities understand customers’ needs and finance for middle-mar
Slide 7: Market Strategy
Market Strategy EN.B. Corporation 7
Slide 8: FNB's Market Strategy
FNB’s Market Strategy Market Entry Customer Acquisition Customer Service Targeting large and growing markets Developing new opportunities Building lasting relationships o FNB’s Northeastern, Mid-Atlantic, o Digital infrastructure and virtual o Made significant investment in and Southeastern markets
Slide 9: FNB's Deposit Growth has Outpaced Competitors' in New Markets
FNB’s Deposit Growth has Outpaced Competitors’ in New Markets1 FNB’s new market deposit CAGR is 5% over the last 5 years, exceeding the market growth rate 1 Cleveland 5 Winston-Salem 1 Population: 2.1 million Population: 683k # of 100k Bus: 68k # of 100k Bus: 19k Deposit Market Share Rank: 12 Deposi
Slide 10: FNB's Growth from 2010 to 2020
FNB’s Growth from 2010 → 2020 Over the past 10 years, FNB has grown assets by 316% and deposits by 341% 2010 2020 Growth & Transformation 2010 2020 Total Assets $9.0 B $37.4 B FNB Branch Total Deposits $6.6 B $29.1 B FNB Planned Branch 10 Source: S&P Global. Branch view in 2010 and 2020, total asset
Slide 11: FNB is committed to serving small business customers
FNB is committed to serving small business customers Loan Balances, As a % of Total Commercial loans, Commercial Loans Sized $0k - $1 million1 Commercial Loans Sized $0k - $1 million1,2 ($Bn) 7.0 31% 6.8 29% 6.1 26% 25% 25% 5.3 5.1 5.1 22% 4.7 20% 19% 19% 18% 3.8 16% 3.6 3.5 15% 15% 14% 3.0 3.0 13%
Slide 12: FNB Funded $2.5 Billion of net PPP Loans
FNB Funded $2.5 Billion of net PPP Loans PPP Funded PPP as % of as of 9/30/20 ($B) Total Loans Peer 1 $3.2 18.0% Peer 2 $6.8 12.6% Peer 3 $2.3 10.6% Peer 4 $2.0 10.4% Peer 5 $3.4 10.3% Peer 6 $2.3 10.1% FNB $2.5 9.8% Peer 7 $1.5 9.3% Peer 8 $2.0 8.8% Peer 9 $6.3 7.9% Peer 10 $7.8 7.6% Peer 11 $2.3 7
Slide 13: Clicks-to-Bricks
Clicks-to-Bricks EN.B. Corporation 13
Slide 14: Clicks overview
Clicks overview Completed redesign; doubled customer Redesigned FNB website time on page to 3 minutes, new users up (navigation, branding) 16% vs. prior site New shopping Introduced over 200 product pages (400+ experience including in total) new product pages Shopping cart supporting Close to 10,000
Slide 15: FNB's Data Strategy
FNB’s Data Strategy FNB’s virtual ecosystem utilizes disciplined data management, leverages analytics, and adds value for customers Data Management Digital Banking Analytics 1:1 Marketing o 100 servers running o More than 700,000 o 60 proprietary o More than SQL managing 50 online banking users mode
Slide 16: Using data science and analytics to drive FNB's Growth
Using data science and analytics to drive FNB’s Growth Generating… $843mm in new deposits 1.36mm HH leads were pushed to the branches in 2020 $155mm in new loans 10 Machine Learning models 50 Proprietary Algorithms 100 servers running SQL managing 50 terabytes of data Machine learning allows for pre
Slide 17: Clicks-to-Bricks: Expediting multi-product account opening (2021)
Clicks-to-Bricks: Expediting multi-product account opening (2021) 2021 Timeline Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 Both mobile and desktop responsive, will allow users Credit to quickly and easily apply online for multiple products Card Mortgage Consumer Deposits Consumer Lending Small Business Deposits Sm
Slide 18: Clicks-to-Bricks: 360-Degree Customer Dashboard (~2022)
Clicks-to-Bricks: 360-Degree Customer Dashboard (~2022) Customer Benefits • Provides the customer a complete high-level view of their FNB relationship • Allows customers to easily access balances and recent transactions • Will facilitate single sign-on to individual sub-systems for speedy transactio
Slide 19: Fourth Quarter 2020 & Full Year 2020 Financial Results Recap
Fourth Quarter 2020 & Full Year 2020 Financial Results Recap 19
Slide 20: Key Highlights – Fourth Quarter 2020
Key Highlights – Fourth Quarter 2020 o Reported earnings per diluted common share of $0.22, operating earnings per share of $0.28 o Average loan balances decreased $0.4 billion, or 6% linked-quarter annualized, due to impact from the November indirect auto loan sale (totaled $0.4 billion in average
Slide 21: Financial Highlights
Financial Highlights 4Q20 3Q20 4Q19 FY2020 FY 2019 Net income available to common stockholders $70.2 $80.8 $93.2 $278.0 $379.2 (millions) Reported Results Earnings per diluted common share $0.22 $0.25 $0.29 $0.85 $1.16 Book value per common share $15.09 $14.99 $14.70 Operating net income available t
Slide 22: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 4Q20 3Q20 4Q19 QoQ Δ3 YoY Δ 4Q20 Highlights o Lower securities balances YoY Securities $6,072 $5,992 $6,431 1.3% (5.6%) reflect limited reinvestment Total Loans activity given available returns 25,656 26,063 23,231 (1.6%) 10.4% o Total YoY loan growth
Slide 23: Balance Sheet Actions Taken during 2H2020
Balance Sheet Actions Taken during 2H2020 o FNB took proactive measures to strengthen balance sheet and reduce credit risk in the second half of 2020 • In November, sold $0.5 billion of lower FICO indirect auto installment loans • Reduced COVID-19 sensitive industries exposure • Sold Visa B shares a
Slide 24: Revenue Highlights
Revenue Highlights $ in thousands 4Q20 3Q20 4Q19 QoQ Δ YoY Δ 4Q20 Highlights Total interest income $270,889 $272,431 $306,064 (0.6%) (11.5%) o Net interest income reflects growth in average earning assets, reductions in the Total interest expense 36,497 45,333 79,627 (19.5%) (54.2%) cost of interest
Slide 25: FNB Net Interest Income and Net Interest Margin (FTE)
FNB Net Interest Income and Net Interest Margin(FTE) o During 4Q20, reduced cost of deposits and borrowings helped support a higher net interest margin, as well as increased contributions from Payment Protection Program loans (PPP). o PPP benefitted FNB in 2H2020 with $32 million of unamortized fees
Slide 26: Line Utilization Trends
Line Utilization Trends If commercial utilization returned to December 2019 levels, it would translate into an additional $491mm of commercial loan growth Commercial LOC Utilization Trends 50.0% 45.0% 40.0% 35.0% 30.0% 12.19 1.20 2.20 3.20 4.20 5.20 6.20 7.20 8.20 9.20 10.20 11.20 12.20 Commercial R
Slide 27: Non-Interest Income
Non-Interest Income $ in thousands 4Q20 3Q20 4Q19 QoQ Δ YoY Δ 4Q20 Highlights Service charges1 $29,784 $28,076 $33,121 6.1% (10.1%) o Service charges increased as customer transaction Trust income 8,204 7,733 7,151 6.1% 14.7% volume increased linked- quarter and activity levels Insurance commissions
Slide 28: Non-Interest Expense
Non-Interest Expense $ in thousands 4Q20 3Q20 4Q19 QoQ Δ YoY Δ 4Q20 Highlights o On an operating basis, Salaries and employee benefits1 $104,663 $100,265 $95,913 4.4% 9.1% salaries and benefits increased $8.8 million, or Occupancy and equipment1 30,716 30,656 30,547 0.2% 0.6% 9.1%, due primarily to
Slide 29: Full Year 2021 Financial Objectives – Updated February 2021
Full Year 2021 Financial Objectives – Updated February 2021 Category FY 2021 Target 1Q21 & Commentary Mid-single digit growth from o Assumes at least $500 million of Spot loans 12/31/2020, excluding PPP additional PPP forgiveness in 1Q21 Balance Sheet Transaction deposits, excluding PPP & stimulus,
Slide 30: Asset Quality
Asset Quality EN.B. Corporation 30
Slide 31: Asset Quality
Asset Quality1 $ in millions 4Q20 4Q202 3Q20 3Q202 4Q19 4Q20 Highlights o Improved asset quality metrics Delinquency 1.02% 1.11% 1.07% 1.18% 0.94% with reduced levels of delinquency, NPLs, OREO and NPLs+OREO/Total loans and deferrals 0.70% 0.77% 0.76% 0.85% 0.55% leases + OREO o ACL providing adequa
Slide 32: COVID-19 Sensitive Industries – As of 12/31/2020
COVID-19 Sensitive Industries – As of 12/31/2020 Hotels, Lodging Restaurants Hotels, Lodging Restaurants $000's Balance % CML % Corp DQ $ % DQ ACL % ACL $000's Balance % CML % Corp DQ $ % DQ ACL % ACL VA, DC Other Other Food PA 152,074 1.1% 0.7% 6,386 4.20% 5,525 3.63% 3.5% 3.7% Full Svc 135,012 0.9
Slide 33: COVID-19 Sensitive Industries: Retail Portfolio – As of 12/31/2020
COVID-19 Sensitive Industries: Retail Portfolio – As of 12/31/2020 Retail: C&I-Related (incl. OO) $000's Balance % CML % Corp DQ $ % DQ ACL % ACL Retail - C&I Grocery 56,781 0.4% 0.2% 834 1.47% 1,172 2.06% Nonstore Other 5.1% 5.5% Gas Station 123,232 0.9% 0.5% 90 0.07% 1,495 1.21% Automotive 145,330
Slide 34: Loan Risk Profile – Fourth Quarter 2020
Loan Risk Profile – Fourth Quarter 2020 Non- YTD Net Charge- Accruals Off's (annual Total Delinquency Total 12/31/2020 ($ in millions) % of Loans (% Loans) % Avg Loans) (% Loans) Deferrals Commercial and Industrial 4,543 19.5% 0.85% 0.48% 0.99% 1.58% CRE: Non-Owner Occupied 6,981 30.0% 0.53% 0.23% 0
Slide 35: Additional Financial Data
Additional Financial Data 35
Slide 36: Annual Operating Trends
Annual Operating Trends 2020 2019 2018 2017 2016 Net income available to common Operating Earnings1 stockholders $314.0 $386.1 $366.7 $281.2 $187.7 (Non-GAAP) Net income per diluted common share $0.96 $1.18 $1.13 $0.93 $0.90 Return on average assets 0.88% 1.16% 1.17% 0.99% 0.95% Profitability Return
Slide 37: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements $29.6 Billion Deposits and 12/31/2020 Mix % Customer Repo Agreements ($ in millions) December 31, 2020 Balance 12/31/20 Time Deposits, Savings, NOW, MMDA $16,418 56% 12% Customer Non-Interest Bearing 9,042 31% Non-Interest Repos, 1% Transaction Deposits $2
Slide 38: Deposit Composition
Deposit Composition Strong deposit growth with improving NIB demand over time Total Deposits $35 2009 - 2020 $30 2009 2020 Δ NIB Deposits 16% 31% 15% $25 31% Time Deposits 35% 12% (23%) 26% $20 26% 26% $15 26% 24% 52% 55% 56% $10 23% 54% 22% 19% 18% 58% 16% 16% 53% 54% 56% $5 52% 53% 50% 52% 21% 22%
Slide 39: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $6.3 Billion Investment Portfolio ($ in millions1) 12/31/20 Portfolio Investment % December 31, 2020 Agency MBS $1,763 28% AAA 100% BBB,BB,B Agency CMO 1,686 27% AAA 100% > 1% A Agency Debentures 454 7% AAA 100% 3% AA AAA 12% 13% AA 74% Municipals 1,140 18
Slide 40: FNB's Value Proposition: Continuous Growth in Revenue and Net Income
FNB’s Value Proposition Continuous Growth in Revenue and Net Income Total Revenue & Operating Net Income Available to Common Shareholders (Millions) CAGR Since 2009 $1,208 $1,211 $1,217 $1,098 Revenue 11% Net Income 23% $813 $660 $624 $504 $532 $436 $372 $401 $386 $367 $314 $281 $188 $154 $115 $123
Slide 41: FNB's Value Proposition
FNB’s Value Proposition FNB seeks to deliver a balance of earnings growth, dividends, and tangible book value growth TBVPS CAGR Since 12/31/2009 $13.64 $12.61 FNB $11.48 TBVPS Growth 6% $10.37 $10.38 TBVPS & Cumulative 10% $9.74 $5.76 Dividends Growth $5.28 $8.87 $4.80 $9.00 $3.84 $3.36 $4.32 $6.85
Slide 42: FNB's Value Proposition: Grow and diversify non-interest income
FNB’s Value Proposition Grow and diversify non-interest income 161,076 o Over half of the growth in 130,349 non-interest income FY 2020 / FY 2015 is attributable to Capital Markets, Wealth, 104,981 Mortgage, and Insurance 94,050 which is primarily organic. o Mortgage banking income 80,546 had record
Slide 43: 2020 Peer Group Listing
2020 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp NYCB New York Community Bancorp CHFC Chemical Financial Corp.1 PBCT People’s United Financial, Inc. CBSH Commerce Bancshares, Inc. PNFP Pinnacle Financial Partners CFR Cullen/Frost Bankers, Inc. SNV Synovus Financ
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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Slide 49: Non-GAAP to GAAP Reconciliation
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Slide 50: Non-GAAP to GAAP Reconciliation
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Slide 51: Non-GAAP to GAAP Reconciliation
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Slide 52: Non-GAAP to GAAP Reconciliation
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