F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (August 2017)
38 slides from F.n.b's investor presentation, August 2017
Slide 1: FNB Corporation Investor Presentation Second Quarter 2017
FNB Corporation Investor Presentation Second Quarter 2017 August 2017
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 contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which contain F.N.B. Corporation’s (F.N.B.) expectations or predictions of futur
Slide 3: Key Investment Considerations
Key Investment Considerations • FNB’s unique business model is designed to deliver long-term shareholder value • Our infrastructure investments have positioned FNB well for long-term sustainable growth • Our proven strategy is to deliver consistent organic growth while maintaining a low risk profile
Slide 4: About FNB Corporation
About FNB Corporation High-Quality, • Headquarters: Pittsburgh, PA • Assets $30.8 billion1 Growing Regional Financial • Market Capitalization: $4.6 billion1 • Loans $20.5 billion1 Institution • Banking locations: Over 4001 • Deposits $21.1 billion1 • Regional bank focused on serving consumer and who
Slide 5: Reposition and Reinvest – Long-Term Plan to Build Infrastructure for a Larger Organization
Reposition and Reinvest – Long-Term Plan to Build Infrastructure for a Larger Organization 2012 2013 2014 2015 2016-2017 Talent Management Chief Technology & Chief Wholesale Strengthened team Chief Marketing Banking and Chief Chief Information Security Officer filled, retention of through key hires;
Slide 6: FNB's Market Expansion Model has Delivered Strong Organic Growth
FNB’s Market Expansion Model has Delivered Strong Organic Growth Total Assets ($ in billions) 12/31/2011-6/30/2017 Transaction Deposits Loans and Customer Repos Total Growth 22.1% 22.5% Organic Growth1 9.3% 8.9% 13 net YDKN FITB Assets: Branches $7.4 bn Parkview OBA Assets: Assets: METR $30.8 Omega
Slide 7: Expanded Footprint Provides Significant Opportunities
Expanded Footprint Provides Significant Opportunities Total Businesses (thousands); Footprint Total = 1,3383 Total C&I Businesses (thousands)1; Footprint Total = 2323 18.8 100.2 16.8 96.8 15.9 89.0 15.1 77.0 45.5 7.4 Baltimore MSA Charlotte MSA Cleveland MSA Pittsburgh MSA Raleigh MSA Baltimore MSA
Slide 8: Clicks-to-Bricks Strategy – Building a Digital Bank
Clicks-to-Bricks Strategy – Building a Digital Bank 8
Slide 9: A Consistent Experience across Channels
A Consistent Experience across Channels Clicks-to-Bricks is the seamless integration of traditional and digital channels to create a consistent, exceptional customer experience whether in the branch, online, or mobile Channel Branch Experience aligned with Digital Experience • Solution Center featur
Slide 10: Becoming a Data-Driven Bank
Becoming a Data-Driven Bank Evolving Our Marketing Data Capabilities Front-Line Impact • Internally generated leads incorporated into • Investments in proprietary data science targeted marketing campaigns and targeted marketing capabilities • Leads shared with front line to initiate • Development of
Slide 11: Execution of FNB's Long-Term Growth Strategy
Execution of FNB’s Long-Term Growth Strategy Key Performance Indicators 2Q17 FY 2016 Long-Term Target Strategy Maintain FNB Originated net charge-offs Remain disciplined 38 bps 34 bps 25-50 bps Risk Profile (annualized)/average loans through the cycle Drive Organic Average loans 6% 8% 7-9% Grow and
Slide 12: Operating Results
Operating Results 2Q17 Highlights and Relative Performance to Peers 12
Slide 13: Successful Integration of the Largest Acquisition in our History
Successful Integration of the Largest Acquisition in our History • FNB’s total assets now > $30 billion Greater scale to effectively compete • Extended our footprint into attractive high- growth metro markets • Transitioned nearly 150,000 households • Converted almost 100 branches and > 100 ATMs t
Slide 14: 2Q17 Financial Highlights
2Q17 Financial Highlights As of or for the period ending 2Q17 1Q17 2Q16 Net income available to common stockholders $72.4 $21.0 $39.3 (millions) Reported results Net income per diluted common share $0.22 $0.09 $0.19 Book value per common share $13.26 $13.16 $11.61 Operating net income available to c
Slide 15: Asset Quality Results
Asset Quality Results1 $ in thousands 2Q17 1Q17 2Q16 2Q17 Highlights NPLs+OREO/Total average 1.08% 1.12% 1.15% originated loans and leases + OREO Originated Delinquency 0.99% 0.94% 1.02% • Second quarter provision levels Provision for credit losses2 $16,756 $10,850 $16,640 continued to exceed net ch
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights QoQ YoY 2Q17 1Q17 2Q16 QoQ Δ YoY Δ Organic1 Organic1 2Q17 Highlights Average, $ in millions Δ Δ Securities $5,607 $4,980 $4,026 12.6% 39.3% • Commercial loan growth led by Cleveland and Total loans $20,361 $16,190 $14,345 25.8% 41.9% 6.1% 6.6% Baltimore markets • Consumer lo
Slide 17: Revenue Highlights
Revenue Highlights QoQ YoY 2Q17 1Q17 2Q16 2Q17 Highlights $ in thousands Δ Δ Total interest income $251,034 $194,693 $170,931 28.9% 46.9% Total interest expense 32,619 21,941 16,562 48.7% 96.9% • Net interest income growth driven by Net interest income $218,415 $172,752 $154,369 26.4% 41.5% organic
Slide 18: Non-Interest Income
Non-Interest Income QoQ YoY 2Q17 1Q17 2Q16 2Q17 Highlights $ in thousands Δ Δ Service charges $33,389 $24,807 $25,805 34.6% 29.4% • Higher service charges from Trust income 5,715 5,747 5,405 -0.6% 5.7% increased transaction volumes Insurance commissions and 4,347 5,141 4,105 -15.4% 5.9% fees • Posit
Slide 19: Non-Interest Expense
Non-Interest Expense QoQ YoY 2Q17 1Q17 2Q16 2Q17 Highlights $ in thousands Δ Δ Salaries and employee $84,899 $73,578 $61,329 15.4% 38.4% benefits Occupancy and equipment 26,480 20,979 20,207 26.2% 31.0% • The expense increases were primarily due to the FDIC insurance 9,376 5,387 5,103 74.0% 83.7% fu
Slide 20: Supplemental Information
Supplemental Information 20
Slide 21: Our Acquisition Strategy – Platform for Organic Growth
Our Acquisition Strategy – Platform for Organic Growth Demonstrated Acquisition Strategy • Strategy — Disciplined identification and focus on markets that offer attractive consumer demographics and commercial opportunities — Provides geographic & portfolio diversification through increased number of
Slide 22: Annual Operating Trends
Annual Operating Trends 2016 2015 2014 2013 2012 Operating Net income available to common stockholders Earnings1 (millions) $187.7 $153.7 $143.6 $123.1 $115.6 (Non-GAAP) Earnings per diluted common share $0.90 $0.87 $0.85 $0.84 $0.83 Return on average tangible common equity 14.75% 14.65% 15.56% 18.1
Slide 23: Performance Trends Relative to Peers
Performance Trends Relative to Peers Return on Average Assets1 Efficiency Ratio1 0.98% 1.02% 0.98% 0.97% 0.97% 0.95% 64% 63% 62% 62% 62% 0.96% 61% 0.89% 0.90% 0.87% 0.85% 59% 0.80% 58% 57% 56% 56% 55% 2012Y 2013Y 2014Y 2015Y 2016Y 2017YTD 2012Y 2013Y 2014Y 2015Y 2016Y 2017YTD FNB Peer Median FNB Pee
Slide 24: Diversified Loan Portfolio
Diversified Loan Portfolio 6/30/2017 % of Portfolio $20.5 Billion Loan Portfolio ($ in millions) June 30, 2017 Other 0% Balance 12/31/11 6/30/2017 Regency 1% Indirect 7% Commercial C&I $3,789 20% 18% Leases 2% CRE: Non-Owner Occupied 5,616 17% 27% CRE: Non- Owner CRE: Owner Occupied 3,207 17% 16% Re
Slide 25: Diversified Loan Portfolio
Diversified Loan Portfolio YTD Net Charge- Total Past 1 1 1 ($ in millions) 6/30/2017 % of Loans NPL's/Loans Offs/Loans Due/Loans Commercial and Industrial $3,789 18.5% 1.59% 0.66% 1.51% CRE: Non-Owner Occupied 5,616 27.3% 0.37% -0.01% 0.35% CRE: Owner Occupied 3,207 15.6% 1.11% 0.09% 1.21% Home Equ
Slide 26: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 6/30/2017 Mix % ($ in millions) $21.3 Billion Deposits and Balance 12/31/11 6/30/2017 Customer Repo Agreements Savings, NOW, MMDA $11,784 48% 55% June 30, 2017 Non-Interest Bearing 5,545 17% 26% Transaction Deposits $17,328 Non-Interest Time Deposits 3,723
Slide 27: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $5.7 Billion Investment Portfolio ($ in millions1) Portfolio Investment % June 30, 2017 Agency MBS $2,904 51% AAA 100% Ratings Agency CMO 1,232 22% AAA 100% Agency Debentures 628 11% AAA 100% AAA, 87.4% AAA 10% AA 75% Municipals 781 14% A 15% AA, 10.4% Com
Slide 28: 2017 Peer Group Listing
2017 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp PBCT People’s United Financial, Inc. CBSH Commerce Bancshares, Inc. PB Prosperity Bancshares, Inc. CMA Comerica, Inc. SNV Synovus Financial Corp. CFR Cullen/Frost Bankers, Inc. TCF TCF Financial Corp. EWBC East We
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 Operating net income available to common stockholders Net income available to common stockholders $ 72,396 $ 20,969 $ 49,280 $ 50,158 $ 39,290 Merger-relate
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 Return on average tangible common equity (ROATCE) Net income available to common stockholders (annualized) $ 290,381 $ 85,042 $ 196,049 $ 199,543 $ 158,025
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 Return on average tangible assets (ROATA) Net income (annualized) $ 298,443 $ 93,191 $ 204,050 $ 207,540 $ 166,106 Amortization of intangibles, net of tax (
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 Operating net income Net income $ 74,406 $ 22,979 $ 51,291 $ 52,168 $ 41,300 Merger-related expense 1,354 52,724 1,649 299 10,551 Tax benefit of merger-rela
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 Tangible book value per common share (at period-end) Total stockholders' equity $ 4,392,438 $ 4,355,795 $ 2,571,617 $ 2,570,580 $ 2,545,337 Less: preferred
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 Efficiency Ratio (FTE) Non-interest expense $ 163,714 $ 187,555 $ 123,806 $ 121,050 $ 129,629 Less: amortization of intangibles(1) 4,813 3,098 1,602 3,571 3
Slide 35: Net Interest Income and Net Interest Margin (FTE)
Net Interest Income and Net Interest Margin (FTE) For The Quarter Ended $ in thousands except per share amounts 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 Components of net interest income Net interest income $ 218,415 $ 172,752 $ 159,283 $ 157,506 $ 154,369 Net interest margin (FTE)(1) 3.42%
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts 2016 2015 2014 2013 2012 Return on average tangible common equity Net income available to common stockholders $ 162,850 $ 151,608 $ 135,698 $ 117,804 $ 110,410 Amortization of intangibles, net of tax 8,943 6,
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts 2016 2015 2014 2013 2012 Return on average assets Net income $ 170,891 $ 159,649 $ 144,050 $ 117,804 $ 110,410 Average total assets $ 20,677,717 $ 16,606,147 $ 14,962,140 $ 12,640,685 $ 11,782,821 Return on a
Slide 38: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts 2016 2015 2014 2013 2012 Efficiency Ratio Non-interest expense $ 511,133 $ 390,549 $ 379,253 $ 338,170 $ 318,829 Less: amortization of intangibles 11,210 8,305 9,717 8,407 9,135 Less: OREO expense 5,154 4,637