F.N.B. Corporation · NYSE:FNB
F.N.B — Q2 2012 Earnings Presentation
20 slides from F.N.B's earnings presentation, Jul 24, 2012
Slide 1: F.N.B. Corporation Second Quarter 2012 Earnings Conference Call
F.N.B. Corporation Second Quarter 2012 Earnings Conference Call Julyy 24,, 2012
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 presentation and the reports FF.N.B.N B Corporation files with the Securities and Exchange Commission often contain “forward forward‐looking looking statements statements” relating to present or future
Slide 3: 2Q12 Highlights
2Q12 Highlights 2Q12 operating ti results lt – Positive P iti ttrends d iin profitability fit bilit metrics ti Financial results driven by continued positive trends in key drivers Net income of $29.1 million and diluted earnings per share of $0.21 Net interest margin of 3.80% Strong loan g
Slide 4: 2Q12 Operating Highlights
2Q12 Operating Highlights 2Q12 1Q12 2Q11 Consistent Operating net income $29,336 $26,524 $22,467 Earnings Growth Operating earnings per diluted share $0.21 $0.19 $0.18 Operating ROTE 19.14% 17.78% 16.85% Solid Operating ROTA 1.13% 1.04% 1.02% Performance Net interest margin 3.80% 3.74% 3.78% Efficie
Slide 5: Profitability Trends
Profitability Trends Return on Average Tangible Assets(1) Return on Average Tangible Equity(1) 1.20% 20.00% 1.08% 18.47% 1.02% 18.00% 16.32% 1.00% 14.71% 16.00% 0.87% 14.00% 0.80% 12.00% 0.60% 10.00% 8.00% 0 40% 0.40% 6.00% 4.00% 0.20% 2.00% 0.00% 0.00% 2010 2011 2Q12 YTD 2010 2011 2Q12 YTD FNB Peer
Slide 6: Optimizing Delivery Channel
Optimizing Delivery Channel As part of ongoing delivery channel optimization, FNB announces plans to consolidate 20 locations and reduce services at 3 locations Consolidation expected to take place mid-4Q12 This action provides the opportunity to: Enhance operating efficiency and profitabili
Slide 7: E-Delivery Strategy Update
E-Delivery Strategy Update Delivery Method Status Description Online Bill Completed : Online bill pay, pay person person-to-person to person payments payments, eBills eBills, and the ability to transfer funds Pay October between financial institutions. 2011 M Mobile bil bbanking ki services i vi
Slide 8: Asset Quality Results
Asset Quality Results(1) $ in thousands 2Q12 1Q12 2Q11 2Q12 Highlights Overall asset quality results reflect the NPL’s+OREO/Total loans+OREO 1.93% 2.22% 2.57% continued solid performance of the P Pennsylvania l i and dR Regency portfolios tf li and significant reductions in the Florida Total delin
Slide 9: Asset Quality Trends
Asset Quality Trends NCO’s to Average Originated Loans(1) NPL’s+OREO to Originated Loans+OREO(1) 4.00% 1.40% 3.50% 1.20% 3.00% 2.74% 1 00% 1.00% 2.50% 2.15% 0.80% 0.77% 1.93% 0.62% 2.00% 0.60% 0.33% 1.56% 0.23% 1.50% 0.38% 1.29% 1.32% (2) 0.40% 1.00% 0.20% 0.44% 0.39% 0.36% 0.50% 0.00% 0.00% 2010 20
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights 2Q12 2Q12-1Q12 Growth Average Balances, $ in millions 2Q12 Highlights Balance $ % Growth in average securities primarily Securities $2,255 $160.5 7.7% g of reinvestment activity reflects timing y in 1Q12 Total loans(1) $7,832 $54.1 2.8% 12th consecutive quarter of total
Slide 11: Net Interest Margin
Net Interest Margin Net Interest Margin Trend Parkvale 4.00% Acquisition 3.81% 3.81% 1/1/2012 3.78% 3.77% 3.78% 3.79% 3.79% 3.80% 3.74% 3.80% 3.60% 3.40% 3.20% 3.00% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 2Q12 margin includes $2.5 million in net accretable yield on acquired loans 11
Slide 12: Non-Interest Income
Non-Interest Income $ in thousands 2Q12 1Q12 2Q11 2Q12 Highlights Higher service charges on deposit Service charges $17,588 $17,165 $15,666 accounts reflects seasonally higher volume Insurance commissions and fees 3,882 4,172 3,664 Lower insurance commissions and fees Securities commissions 2,03
Slide 13: Non-Interest Expense
Non-Interest Expense $ in thousands 2Q12 1Q12 2Q11 2Q12 Highlights Efficiency ratio improved to 57.7% Salaries and employee benefits(1) $41,070 $43,996 $36,528 Lower salaries and benefits primarily Occupancy and equipment 11,862 11,792 9,985 due to benefit of Parkvale cost savings realization Am
Slide 14: Capital Position
Capital Position (1) March 31, 2012 June 30, 2012 14 0% 14.0% 12.0% 12.1% 12.0% 10.5% 10.5% 10.0% 8.1% 8.1% 8.0% 5.8% 6.0% 6.0% 4.0% 2.0% 0.0% Total Risk-Based Tier One Leverage Tangible Common Equity (1) June 30, 2012 Total Risk‐Based and Tier One represent estimated ratios 14
Slide 15: Outlook Summary
Outlook Summary Action Relative to Prior Item Guidance(1) Management Expectations Loans Re-affirm Mid-teens (full-year average balance growth) Deposits Re-affirm High-teens (full-year average balance growth) Net interest margin Re-affirm Mid 360’s for the second half of the year N i t Non-inte
Slide 16: Concluding Remarks
Concluding Remarks Solid performance 2Q12 and first six months of 2012 Positive expectations for remainder of 2012 Proactively reinvest and reposition Position for revenue growth Focused and disciplined expense control Maintain a low risk profile 16
Slide 17: Appendix
Appendix ENB, Corporation 17
Slide 18: Peer Group Listing
Peer Group Listing ASBC Associated Bancorp NPBC National Penn Bancshares, Inc. CBSH Commerce Bancshares, Inc. ONB Old National Bancorp CBU C U Community Co u ty Bank a Syste Systems, s, Inc. c PRK Park a National at o a Co Corp p CHFC Chemical Financial Corp. PVTB Private Bancorp, Inc. CRBC Citizens
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the Quarter Ended June 30 Year-to-Date June 30, 2012 March 31, 2012 June 30, 2011 2012 2011 Operating net income Net income $29,130 $21,582 $22,362 $50,712 $39,537 Merger and severance costs, net of tax 206 4,943 105 7,921 4,307 Operating net income $29,336 $26,52
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2011 2010 Operating net income Net income $87,047 $74,652 Merger and severance costs, net of tax 3,238 402 One-time pension credit (6,853) Operating net income $90 285 $90,285 $68 201 $68,201 Operating return on average tangible equity Operating net income $90,285 $68