F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (November 2020)
58 slides from F.n.b's investor presentation, November 2020
Slide 1: Fourth Quarter 2020 Investor Presentation
Fourth Quarter 2020 Investor Presentation F.N.B. Corporation 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: Who is F.N.B. Corporation?
Who is F.N.B. Corporation? Top 50 U.S. Bank Holding Company 2nd largest bank headquartered in Pennsylvania Premier Mid-Atlantic Regional Bank operating in 7 states and Washington D.C. More than $37 billion in total assets at 9/30/2020 2.5 Million Customers ~350 branches and loan production offices t
Slide 5: Where does FNB stand today? Positioned for Diversification and Growth
Where does FNB stand today? Positioned for Diversification and Growth Erie State Scranton Cleveland Hermitage College o Significant presence in 7 major Pittsburgh Johnstown Harrisburg Reading metropolitan markets with population Columbus York Lancaster Philadelphia over 1 million and numerous second
Slide 6: Where FNB stands today: Major Metro Market
Where FNB stands today Deposit Share Position(2) Population (millions) Total Businesses(1) 2.3 115K Pittsburgh - 3 2.1 109K Cleveland - 12 Major Metro Market Baltimore - 7 2.8 139K 2.6 106K Charlotte - 8 Raleigh - 9 1.9 101K 1.4 72K Piedmont Triad – 6(3) 6.3 353K Washington, D.C. (1) Data per the NA
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 Drive Organic Optimize the Retail Build a Strong, Growth Bank Differentiated Brand Maintain Efficiency Build a Durable, Promotes Core and Expense Control Scalable Values includ
Slide 8: COVID-19 Response & Paycheck Protection Program
COVID-19 Response & Paycheck Protection Program 8
Slide 9: Timeline of COVID-19 and Management Actions
Timeline of COVID-19 and Management Actions FNB has taken proactive & aggressive action to stay ahead of the escalating COVID-19 pandemic 1/21 – First confirmed case of COVID-19 in US [1] 4/3 – SBA Announces PPP Loans [10] 7/4 – Extension of PPP Signed by Trump [23] 1/30 – WHO declares Global Health
Slide 10: FNB's Response to COVID-19
FNB’s Response to COVID-19 FNB was one of only 10 banks in the country to receive the Greenwich “COVID Standout” recognition which was based on customer responses. Employee Protection Operational Response Customer and Risk Management & Assistance & Preparedness Community Support ~2,000 employees w
Slide 11: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results 11
Slide 12: Key Highlights – Third Quarter 2020
Key Highlights – Third Quarter 2020 o Reported earnings per diluted common share of $0.25, operating earnings per share of $0.26 • Average loan growth of $0.5 billion, or 7% linked-quarter annualized, with commercial growth of 14% annualized • Average deposit growth of $1.1 billion, or 16% linked-qu
Slide 13: Financial Highlights – Third Quarter 2020
Financial Highlights – Third Quarter 2020 3Q20 2Q20 3Q19 Net income available to common stockholders $80.8 $81.6 $100.7 (millions) Reported Results Earnings per diluted common share $0.25 $0.25 $0.31 Book value per common share $14.99 $14.82 $14.51 Operating net income available to common $85.5 $83.
Slide 14: Asset Quality
Asset Quality EN.B. Corporation 14
Slide 15: Asset Quality
Asset Quality1 $ in millions 3Q20 3Q202 2Q20 2Q202 3Q19 3Q20 Highlights o ACL providing adequate Delinquency 1.07% 1.18% 0.92% 1.02% 0.91% coverage across portfolios with slightly increased NPLs+OREO/Total loans and coverage in response to 0.76% 0.85% 0.72% 0.80% 0.52% COVID-19 leases + OREO Provisi
Slide 16: Loan Risk Profile – Third Quarter 2020
Loan Risk Profile – Third Quarter 2020 Non- YTD Net Charge- Accruals Off's (annual Total Delinquency Total 9/30/2020 ($ in millions) % of Loans (% Loans) % Avg Loans) (% Loans) Deferrals* Commercial and Industrial 4,572 19.7% 1.04% 0.58% 1.16% 3.66% CRE: Non-Owner Occupied 6,826 29.5% 0.47% -0.04% 0
Slide 17: COVID-19 Sensitive Industries
COVID-19 Sensitive Industries 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 165,170 1.2% 0.7% 10,134 6.14% 10,593 6.41% 2.9% 3.7% Full Svc 143,091 1.0% 0.6% 6,395 4.47
Slide 18: COVID-19 Sensitive Industries: Retail Portfolio
COVID-19 Sensitive Industries: Retail Portfolio Retail: C&I-Related (incl. OO) $000's Balance % CML % Corp DQ $ % DQ ACL % ACL Retail - C&I Grocery 51,212 0.4% 0.2% 759 1.48% 1,440 2.81% Other Grocery Nonstore 5.9% 10.3% Gas Station 122,911 0.9% 0.5% 92 0.07% 1,599 1.30% 4.6% Automotive 143,069 1.0%
Slide 19: Supplemental Asset Quality – Consumer DTI and FICO
Supplemental Asset Quality – Consumer DTI and FICO DTI Ratio Averages by Portfolio (based on Fully Funded $) Current Month Prior Month Prior Year Rolling 13 Avg Mortgage 33.2% 33.2% 34.2% 33.7% Home Equity 30.7% 30.7% 30.6% 30.7% HELOC 31.6% 31.6% 31.6% 31.6% Direct Other 32.5% 32.5% 32.3% 32.3% Ind
Slide 20: FNB Performed Well During the Financial Crisis
FNB Performed Well During the Financial Crisis Peak Annual NCO over Average Loans(1) (%) 2008 - 2012 FNB continues to improve the 5.76 position of our balance sheet 5.16 exiting $700 million of loans since 1Q16 4.13 3.69 3.21 2.38 1.88 1.64 1.67 1.55 1.29 1.15 1.17 0.58 0.58 0.36 0.41 0.45 0.34 NYCB
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 3Q20 2Q20 3Q19 QoQ Δ3 YoY Δ 3Q20 Highlights Securities $5,992 $6,199 $6,271 (3.3%) (4.4%) o Lower securities balances reflect limited reinvestment activity Total Loans 26,063 25,602 22,727 1.8% 14.7% given available returns o Total loan growth reflects
Slide 22: Balance Sheet Actions Taken during Third Quarter 2020
Balance Sheet Actions Taken during Third Quarter 2020 o FNB took proactive measures to strengthen capital and reduce credit risk this quarter • Signed an agreement to sell $508 million of lower FICO indirect auto installment loans with an expected November close • Proceeds being used to pay down a s
Slide 23: Revenue Highlights
Revenue Highlights $ in thousands 3Q20 2Q20 3Q19 QoQ Δ YoY Δ 3Q20 Highlights Total interest income $272,431 $280,846 $314,411 (3.0%) (13.4%) o Net interest income reflects pressure on asset yields due to “lower for longer” interest rate Total interest expense 45,333 52,885 84,609 (14.3%) (46.4%) env
Slide 24: Non-Interest Income
Non-Interest Income $ in thousands 3Q20 2Q20 3Q19 QoQ Δ YoY Δ 3Q20 Highlights Service charges1 $28,076 $23,938 $33,158 17.3% (15.3%) o Service charges reflect partial recovery in customer Trust income 7,733 7,350 6,932 5.2% 11.6% transaction volume given COVID-19 operating Insurance commissions and
Slide 25: Non-Interest Expense
Non-Interest Expense $ in thousands 3Q20 2Q20 3Q19 QoQ Δ YoY Δ 3Q20 Highlights o Salaries and benefits reflect Salaries and employee benefits1 $100,265 $93,380 $93,598 7.4% 7.1% higher production-related commissions and lower loan Occupancy and equipment1 30,656 29,071 28,816 5.5% 6.4% origination s
Slide 26: Fourth Quarter 2020 Financial Objectives
Fourth Quarter 2020 Financial Objectives Category 4Q20 Target Comments Generally flat from 3Q levels o Impact from PPP activity is included Spot loans assuming no PPP forgiveness for all Q4 targets and no PPP forgiveness expected in 4Q20 due to Balance Sheet Decrease low-single-digits, due expected
Slide 27: Capital Management
Capital Management EN.B. Corporation 27
Slide 28: FNB Corporation Risk-Based Capital Position
FNB Corporation Risk-Based Capital Position • Year-to-date Pre-Provision Net Revenue (non-GAAP) of $363 million more than supports incremental credit reserve build • Ample internal capital generation for YTD common & preferred dividend payout of $124 million • Increased CET1 levels compared to 4Q19
Slide 29: Focus on Capital Optimization - FNB Corporation (through 3Q20)
Focus on Capital Optimization - FNB Corporation (through 3Q20) FNB has maintained consistent capital levels with a lower risk balance sheet over the last decade Leverage Ratio CET1 Ratio 9.4% 9.2% 9.2% 9.4% 9.6% 8.9% 8.1% 7.7% 7.9% 8.2% 7.8% 7.6% 6.5% 5.0% 2015Y 2016Y 2017Y 2018Y 2019Y 3Q20 2015Y 20
Slide 30: Focus on Capital Optimization – FNBPA (through 3Q20)
Focus on Capital Optimization – FNBPA (through 3Q20) FNBPA has maintained consistent capital levels with a lower risk balance sheet over the last decade Leverage Ratio CET1 Ratio 10.3% 10.6% 9.6% 9.7% 9.7% 9.9% 8.4% 8.9% 8.4% 8.0% 7.9% 8.1% 6.5% 5.0% 2015Y 2016Y 2017Y 2018Y 2019Y 3Q20 2015Y 2016Y 20
Slide 31: Additional Financial Data
Additional Financial Data 31
Slide 32: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements $28.4 Billion Deposits and 09/30/2020 Mix % Customer Repo Agreements ($ in millions) September 30, 2020 Balance 09/30/20 Time Deposits, Savings, NOW, MMDA $16,070 55% 19% Customer Non-Interest Non-Interest Bearing 8,741 30% Repos, 1% Bearing, 25% Transacti
Slide 33: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $6.1 Billion Investment Portfolio ($ in millions1) 09/30/20 Portfolio Investment % September 30, 2020 Agency MBS $1,907 31% AAA 100% BBB,BB,B Agency CMO 1,547 26% AAA 100% > 1% A Agency Debentures 458 8% AAA 100% 3% AA AAA 12% 14% AA 74% Municipals 1,158 1
Slide 34: 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 Time Deposits 35% 14% (21%) 31% 26% $20 26% 26% $15 26% 52% 55% 57% 24% 54% $10 22% 23% 19% 18% 58% 16% 16% 53% 54% 56% $5 52% 53% 50% 52% 21% 22%
Slide 35: Clicks-to-Bricks
Clicks-to-Bricks EN.B. Corporation 35
Slide 36: Optimizing Online and Physical Delivery Channels
Optimizing Online and Physical Delivery Channels A website that creates an interactive Leveraging data analytics to provide digital experience in sync with the insights branch State-of-the-art technology design, Industry-leading mobile capabilities creating a educational and including mobile payment
Slide 37: Website Deployment: Clicks-to-Bricks
Website Deployment: Clicks-to-Bricks • Filtering by product features to help • Shopping for products based on specific find the right solutions financial goals • Shopping and opening accounts online • Researching financial topics in the with a new check out process Knowledge Center • Browsing produc
Slide 38: Customer Support and Programs – Appointments in the Branch
Customer Support and Programs – Appointments in the Branch o FNB is well prepared to offer assistance to help meet the financial needs of those who may be impacted. Individuals and businesses in need of banking support can contact their local FNB office or our Customer Service Center at 1-800-555-54
Slide 39: Customer Support and Programs – Clicks-To-Bricks Investment
Customer Support and Programs – Clicks-To-Bricks Investment ATM/ITM and Digital Channels and Call Centers Debit Cards Payments Number of ATMs and ITMs Enrolled Mobile Banking Users Monthly Average Call Center 100,000 600 500,000 90,000 450,000 500 80,000 400,000 350,000 70,000 400 300,000 60,000 300
Slide 40: 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. PBCT People’s United Financial, Inc. CBSH Commerce Bancshares, Inc. PNFP Pinnacle Financial Partners CFR Cullen/Frost Bankers, Inc. SNV Synovus Financi
Slide 41: Non-GAAP to GAAP Reconciliation
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