F.n.b. Corporation · NYSE:FNB
F.n.b — KBW U.S. Regional Bank Conference 2012
49 slides from F.n.b's conference presentation, Jun 11, 2012
Slide 1: F.N.B. Corporation Investor Presentation
Exhibit 99.1 F.N.B. Corporation Investor Presentation KBW U.S. Regional Bank Conference London, England June 11, 2012 Vincent J. Delie, Jr. President and Chief Executive Officer Gary L. Guerrieri Chief Credit Officer
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 F.N.B. Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting th
Slide 3: F.N.B. Corporation
F.N.B. Corporation 3
Slide 4: Key Facts
Key Facts Fourth Largest Pennsylvania-Based Bank –Assets $11.7 Billion Pennsylvania –Loans $7.8 Billion –Deposits $9.8 Billion Ohio –Banking Locations 266 –Consumer Finance Locations 65 –Headquarters Hermitage, PA • First National Bank Location Diverse Fee Income Sources with Attractive Footprint Co
Slide 5: Leadership
Leadership Experienced and respected executive management team Years of Banking Experience Joined FNB Prior Experience President and CEO Vincent J. Delie, Jr. 25 2005 National City President, First National Bank John C. Williams, Jr. 41 2008 National City, Mellon Bank Chief Financial Officer Vincent
Slide 6: Core Competencies
Core Competencies Proven success and solid foundation for sustainable growth opportunities Core Competency Proven Sustainable Commercial 1Q12 marks twelve consecutive quarters of organic People: Experienced team Bank -Strong commercial loan growth(1) of bankers built over the C&I Focus C&Iloan portf
Slide 7: Growth Results
Growth Results As a result of successful organic and acquisition-related growth, FNB’s growth since 2008 has far exceeded peer results Loans, Deposits and Total Assets Growth: EPS Growth: December 31, 2008 to March 31, 2012 (1) 2008 vs. 2013 Consensus (2) 60% 50% 50% 40% 40% 35% 34% 30% 23% FNB 20%
Slide 8: Industry Leading Loan Growth
Industry Leading Loan Growth Sustainable, Industry Leading Growth Annual Loan Growth (1) vs. Peers – Pipelines healthy, calling 6.73% efforts robust and new 5.84% 2011 1.70% relationships established 0.65% – Disciplined cross-functional 5.13% 4.08% 2010 sales management process -5.80% -0.53% and exp
Slide 9: Industry Leading Loan Growth
Industry Leading Loan Growth Loangrowthdrivenbyconsistentorganicgrowthresultsachievedin the commercialportfolio (1) Total Loans (1) PA Commercial Loans 9.00% 14.00% 8.00% 11.60% 12.00% 7.00% 10.00% 6.00% 10.00% 9.20% 8.70% 5.00% 8.00% 6.70% 6.80% 4.00% 5.33% 6.00% 5.20% 3.00% 4.00% 3.20% 3.40% 2.00%
Slide 10: Net Interest Margin Management
Net Interest Margin Management Stablenet interestmarginreflectseffectiveinterestrate riskmanagement Quarterly Net Interest Margin Trend Parkvale Acquisition 4.00% 3.81% 3.81% 1/1/2012 3.78% 3.77% 3.78% 3.79% 3.79% 3.74% 3.74% 3.80% 3.60% 3.40% 3.20% 3.00% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Slide 11: Well Capitalized
Well Capitalized Consistent capital management strategy focused on the efficient use of capital (1) (2) March 31, 2011 December 31, 2011 March 31, 2012 16.0% 13.4% 14.0% 12.5% Regulatory “Well-Capitalized” 12.0% 11.8% 12.0% 10.9% 10.5% 10.0% 9.2% 8.4% 8.1% 8.0% 6.7% 5.8% 5.8% 6.0% 4.0% 2.0% 0.0% Tot
Slide 12: Sustainable Business Model
Sustainable Business Model Sustainable Business Model Disciplined Risk Growth FNB Shareholder Management Orientated Culture Value Maintain low risk Organic growth driven Attract, retain and Disciplined, growth profile by: develop top talent oriented focus guided Target neutral interest • Best-in-cla
Slide 13: Market Position and Opportunity
Market Position and Opportunity 13
Slide 14: Market Position and Opportunity
Market Position and Opportunity Attractive overall market position FNB’s banking network spans 45 counties across Pennsylvania, Ohio and West Virginia. FNB holds a strong #3 market share for all counties operation. FNB benefits from a stable Pennsylvania economy that has outperformed much of the nat
Slide 15: Banking Footprint
Banking Footprint First National Bank locations span 45 counties across Pennsylvania, Ohio and West Virginia Pennsylvania Ohio West Virginia FNB Banking Location 15
Slide 16: Attractive Market Position
Attractive Market Position FNB holds the #3 overall market position for all counties of operation – with significant opportunities present for continued market share gains FNB Counties of Operation Branch Total Market DepositsTotal Market Share Rank Institution Count ($ 000) (%) 1 PNC Financial Serv
Slide 17: Pittsburgh Growth Strategy
Pittsburgh Growth Strategy Successful execution of an organic and acquisition growth strategy in the Pittsburgh market Promistar Slippery NSD Iron & Parkvale Financial Rock Bancorp Glass Financial (Market Deposits: Deposits: Bancorp Deposits: Bank $1.5 bn Entry) $0.2 bn $0.4 bn Deposits: Acquisition
Slide 18: Pittsburgh Market Disruption = Opportunity
Pittsburgh Market Disruption = Opportunity The Pittsburgh MSA competitive environment rapidly evolved, presenting significant opportunity for market share gains and talent additions for FNB 2008 Top 3 Market Share 2011 Top 3 Market Share 70.0% 60.0% #3 RBS, 8.2% #3 FNB, 4.2% #2 RBS, 7.9% 50.0% Natio
Slide 19: #3 Deposit Market Share in a Top 25 U.S. MSA Presents Opportunity
# 3 Deposit Market Share in a Top 25 U.S. MSA Presents Opportunity Population Top 3 Banks in MSA by Deposit Market Share Rank MSA (000's) #1 #2 #3 1 New York(1) 18,897 JPM BofA Citi FNB is uniquely 2 Los Angeles 12,829 BofA Wells Fargo Mitsubishi UFJ 3 Chicago 9,461 JPM BMO BofA positioned as 4 Dall
Slide 20: Pittsburgh Market Opportunity
Pittsburgh Market Opportunity Pittsburgh, PA FNB Presence FNB Presence Deposits(1) $3.4 billion – Significantly increased FNB presence – #3 market rank following the Parkvale % of FNB Total Deposits (1) 38% acquisition Deposit Market Share (1) (2) 4.2% – Regional headquarters accommodating Deposit M
Slide 21: Pittsburgh Market Opportunity
Pittsburgh Market Opportunity Pittsburgh MSACommercial MarketOpportunity (1) andEconomic Indicators (2) 50,000 2,000 Pittsburgh MSA 40,000 1,500 30,000 1,000 Pennsylvania MSA Average 20,000 500 National MSA Average 10,000 0 <20 Employees Small Businesses <500 Employees Businesses 500+ Employees Midd
Slide 22: Marcellus and Utica Shale
Marcellus and Utica Shale OhioUticaShaleWellLocations (2) FNB is well-positioned in the Marcellus Shale and FNB Banking Locations Utica Shale regions with a Pennsylvania footprint that closely aligns with the Marcellus Shale concentration and exposure to the Utica Shale region in Ohio. FNB has been
Slide 23: Marcellus and Utica Shale Economic Effect
Marcellus and Utica Shale Economic Effect Opportunity for FNB relates to potential indirect and induced economic benefits across footprint Directly associated with the extraction, processing and Direct Effect: delivery of the gas Oil and Gas Drilling, extraction and support activities Provides goods
Slide 24: E-Delivery Channel Initiative
E-Delivery Channel Initiative Using leading edge technology to enhance client value, leading to further client acquisition, supporting client retention and generating related revenue opportunities Best-in-Class Platforms Online Bill Pay • Status:Available1Q12 • ClientBenefits:FirstNationalBankoffers
Slide 25: Acquisition Strategy
Acquisition Strategy 25
Slide 26: Acquisition Strategy
Acquisition Strategy Strategy Focus on strategically important markets with growth potential. Acquisition-related expansion has historically been focused on enhancing presence in the Pittsburgh market and eastern and central Pennsylvania. Consideration given to additional attractive markets contiguo
Slide 27: Acquisition-Related Expansion
Acquisition-Related Expansion FNB is a proven merger integrator with nine bank acquisitions, totaling $7.9 billion in assets, completed since 2002 Pre-2002 Presence Pittsburgh MSA Acquisition Expansion Additional Acquisition-Related Expansion New York Erie Pennsylvania Cleveland Scranton Hermitage S
Slide 28: Investment Thesis
Investment Thesis PNB Comoration 28
Slide 29: Long-Term Investment Thesis
Long-Term Investment Thesis FNB’s long-term investment thesis reflects a commitment to efficient capital management and creating value for our shareholders Long-Term Investment Thesis: Targeted EPS Growth 5-6% Expected Dividend Yield 4-6% (Targeted Payout Ratio 60-70%) Total Shareholder Return 9-12%
Slide 30: Total Shareholder Return and Dividend Yield
Total Shareholder Return and Dividend Yield 3-YearTotalShareholder Return(1) 1-YearTotalShareholder Return(1) 90.0% 5.0% 80.0% 77.8% 4.1% 4.0% 3.9% 70.0% 60.0% 3.0% 50.0% 44.3% 40.0% 1.9% 2.0% 29.9% 29.9% 30.0% 20.0% 1.0% 10.0% 0.0% 0.0% FNB Regional Peers National Peers S&P 500 FNB Regional Peers N
Slide 31: Relative Valuation Multiples
Relative Valuation Multiples FNB has a modest P/E valuation relative to peers given its higher-quality earnings stream, stronger dividend yield and future growth potential Regional Peer National Peer FNB Group Median Group Median(1) (2) Price/Earnings Ratio FY13 Consensus EPS (FNB=$0.89) 11.5x 11.6x
Slide 32: Summary: Key Investment Considerations
Summary: Key Investment Considerations With compelling core competencies, strong performance proof points and a sustainable business model, FNB is well-positioned to benefit from: 1. People Significant investments made in personnel Continued ability to attract top talent 2. Markets Leading share in
Slide 33: First Quarter 2012 Operating Results
First Quarter 2012 Operating Results 33
Slide 34: First Quarter 2012
First Quarter 2012 Strong First Quarter 2012 Financial Results: Operating EPS of $0.19 represents a 19% year-over-year increase Industry-Leading Loan Growth: Eleventh consecutive quarter of organic growth for total loans StrongTransaction DepositGrowth:Organiclinked-quartergrowth in transactionaccou
Slide 35: Key Operating Highlights – First Quarter 2012
Key Operating Highlights – First Quarter 2012 1Q12 4Q11 1Q11 1Q12 Highlights Operating EPS (1) $0.19 $0.19 $0.16 Strong start to 2012 OperatingReturnon TangibleEquity(1) 17.79% 16.10% 15.97% Closed Parkvale acquisition OperatingReturnon TangibleAssets(1) 1.04% 1.07% 0.94% On track to achieve planned
Slide 36: Diversified Loan Portfolio
Diversified Loan Portfolio 3/31/12 CAGR % of Portfolio ($ in millions) 12/08- $7.8 Billion Loan Portfolio Balance 12/31/08 3/31/12 3/12 March 31, 2012 C&I $1,451 14.1% 16% 19% CRE: Non-Owner Occupied 1,304 10.9% 16% 16% CRE: Owner Occupied 1,218 6.2% 17% 16% Commercial & Industrial 19% Commercial Le
Slide 37: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 3/31/12 CAGR Mix % $9.8 Billion Deposits and ($ in millions) 12/08- Customer Repo Agreements Balance 3/12 12/31/08 12/31/12 March 31, 2012 Savings, NOW, MMDA $4,508 15.6% 44% 46% Time Deposits 2,769 5.6% 36% 28% Non-Interest Bearing 16% Non-Interest Bearin
Slide 38: Investment Portfolio
Investment Portfolio % Ratings ($ in millions(1)) Portfolio Investment % Agency MBS $1,231 52% AAA 100% Highly Rated $2.3 Billion Investment Portfolio CMO Agency 417 18% AAA 100% March 31, 2012 Agency Senior Notes 370 16% AAA 100% AAA 2% Municipals 183 8% AA 90% A 8% Short-Term 72 3% AAA 100% BBB 19
Slide 39: Positive Credit Trends
Positive Credit Trends OriginatedPortfolio:NCO’sto AverageLoans (2) OriginatedPortfolio:PastDue+Non-Accrual to Loans (1)(2) 1.40% 4.50% 4.00% 1.20% 3.50% 1.00% 2.76% 0.77% 3.00% 0.80% 2.50% 0.62% 2.08% 2.03% 0.60% 0.33% 2.00% 1.87% 0.23% 0.32% 1.50% 1.51% 1.47% 0.40% 1.00% 0.20% 0.44% 0.39% 0.32% 0.
Slide 40: Positive Credit Trends
Positive Credit Trends (1)(2) Reserves to Total Originated Loans (1) Reserves to NPL’s 100.00% 94.76% 92.95% 2.50% 90.00% 71.92% 78.44% 80.00% 2.00% 70.00% 60.00% 1.50% 1.79% 1.74% 50.00% 1.54% 1.55% 40.00% 30.00% 1.00% 20.00% 10.00% 0.50% 0.00% 2009 2010 2011 1Q12 2009 2010 2011 1Q12 FNB Regional P
Slide 41: Supplemental Information
Supplemental Information 41
Slide 42: Supplemental Information Index
Supplemental Information Index Loan Risk Profile Regency Finance Company Profile Regional Peer Group Listing Board of Directors GAAP to Non-GAAP Reconciliation 42
Slide 43: Loan Risk Profile
Loan Risk Profile LoanRiskProfile– March31,2012 Balance Net Charge- Total Past (1) (1) (1) $ in millions 3/31/2012 % of Loans NPL's/Loans Offs/Loans Due/Loans Commercial and Industrial $1,451,144 18.6% 0.55% 0.29% 0.71% CRE: Non-Owner Occupied 1,303,765 16.7% 1.32% 0.04% 1.61% CRE: Owner Occupied 1,
Slide 44: Regency Finance Company Profile
Regency Finance Company Profile Conservatively run consumer finance business with over 80 years of consumer lending experience Good credit quality: First quarter 2012 net charge-offs to average loans of 3.56% Strong returns: First Quarter 2012: ROA 3.18%, ROE 33.53%, ROTE 37.77% Regency Finance Comp
Slide 45: Regional Peer Group Listing
Regional Peer Group Listing Regional Peer Group ASBC Associated Bancorp NPBC National Penn Bancshares, Inc. CBSH Commerce Bancshares, Inc. ONB Old National Bancorp CBU Community Bank Systems, Inc. PRK Park National Corp CHFC Chemical Financial Corp. PVTB Private Bancorp, Inc. CRBC Citizens Republic
Slide 46: Board of Directors
Board of Directors Board of Directors Director Name Age Since Biography Stephen J. Gurgovits 68 1981 Chairman of the Board effective January 2012; former Chief Executive Officer of F.N.B. Corporation Vincent J. Delie, Jr. 47 2012 President and Chief Executive Officer effective January 2012 William B
Slide 47: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in thousands 2012 2011 First Fourth First Quarter Quarter Quarter Operating net income: Net income $21,582 $23,737 $17,175 Merger and severance costs, net of tax 4,943 255 2,695 Operating net income $26,525 $23,992 $19,870 Operating diluted earnings per share: Dilut
Slide 48: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in thousands 2012 2011 First Fourth First Quarter Quarter Quarter Operating return on average tangible assets: Operating net income (annualized) $106,683 $95,188 $80,584 Amortization of intangibles, net of tax (annualized) 5,964 4,692 4,734 112,647 99,881 85,318 Ave
Slide 49: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in thousands 2012 2011 First Fourth First Quarter Quarter Quarter Tangible book value per share: Total shareholders' equity $1,354,699 $1,210,199 $1,128,414 Less: intangibles (714,177) (599,414) (601,475) 640,522 610,785 526,939 Ending shares outstanding 139,501,039