F.n.b. Corporation · NYSE:FNB
F.n.b — Q1 2025 Earnings Presentation
52 slides from F.n.b's earnings presentation, February 2025
Slide 1: F.N.B. Corporation Investor Presentation First Quarter 2025
F.N.B. Corporation Investor Presentation First Quarter 2025 February 2025 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking 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 other matters regarding or affecti
Slide 3: Use of Non-GAAP Financial Measures and Key Performance Indicators
Use of Non-GAAP Financial Measures and Key Performance Indicators To supplement our Consolidated Financial Statements presented in accordance with GAAP, we use certain non-GAAP financial measures, such as operating net income available to common stockholders, operating earnings per diluted common sh
Slide 4: Overview of FNB
Overview of FNB Company Snapshot Financial Highlights as of 12/31/24 ❖ Ticker: FNB (NYSE) Assets: 12.1% CAGR since 2009 $48.6 billion ❖ Founded in 1864 Loans: 12.4% CAGR since 2009 $33.9 billion ❖ Headquartered in Pittsburgh, PA ❖ Diverse market presence across 7 states Deposits: 12.5% CAGR since 20
Slide 5: Investor Highlights
Investor Highlights ✓ Diversified revenue streams through retail and commercial banking, capital markets, wealth management and insurance. Strong core ✓ Proven, sustainable business model driving long-term growth and performance. franchise in o Disciplined sales culture focused on relationship-based
Slide 6: Why FNB?
Why FNB? A Strong Franchise Proven Performance Sustainable Growth Nationally recognized as a Top Consistent credit underwriting Investments in digital Workplace USA and national and thoughtful capital and technology and data Culture Excellence Award liquidity management. infrastructure to better ser
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 with an underlying focus on a consistent credit culture. Drive Organic Optimize the Build a Strong, Growth Retail Bank Differentiated Brand Maintain Build a Durable, Promote Co
Slide 8: FNB Continues to Serve All its Stakeholders
FNB Continues to Serve All its Stakeholders ❖ Introduced Community Uplift, an internally funded Down ❖ Winner of more than 100 prestigious Greenwich Excellence Payment Assistance (DPA) program, in key markets. and Best Brand Awards since 2011 and named one of TIME’s World’s Best Companies. ❖ Investe
Slide 9: Strong Financial Performance
Strong Financial Performance Solid Profitability Metrics 14.9% 1.23% 56.9% 3.04% Quarter Ended December 31, 2024 Operating Operating Efficiency Ratio(1)(2) Net Interest ROATCE(1) ROATA(1) Margin(1)(2) Significant Capital, 8.2% 10.6% 1.25% 91.5% Reserves & Liquidity Loan-to-Deposit as of December 31,
Slide 10: Strong Capital Position
Strong Capital Position FNB’s capital levels reached all-time highs, providing ample flexibility to grow the balance sheet and optimize shareholder returns while appropriately managing risk. TCE Ratio(1) CET1 Ratio 8.2% 10.6% 7.8% 7.6% 10.0% 7.4% 9.8% 9.9% 9.8% 7.2% 7.2% 9.4% 2019 2020 2021 2022 202
Slide 11: Strategic Objective to Drive Diversified Fee Income Growth
Strategic Objective to Drive Diversified Fee Income Growth ❖ Our diversified business model continues to produce strong non-interest income performance. ❖ Priority to develop and expand new high value business units that complement our existing products and services, leading to solid organic growth.
Slide 12: Expansion of Geographic Footprint
Expansion of Geographic Footprint(1) Since the financial crisis, FNB has focused on growing its footprint across the Mid-Atlantic and Carolinas to high-growth MSAs such as Charlotte, DC, Baltimore, and Charleston. 2024 FNB Geographic Footprint FNB Growth Highlights 2009 2024 Δ Total Assets ($B): $8.
Slide 13: Diverse Footprint with Strong Market Share
Diverse Footprint with Strong Market Share(1)(2) FNB’s market deposit CAGR is 14% over the last 6 years buoyed by our new markets. 1 6 Cleveland Winston-Salem 1 Population: 2.2 million Population: 735k # of 100k Bus: 157k # of 100k Bus: 42k Deposit Market Share Rank: 12 Deposit Market Share Rank: 3
Slide 14: FNB Wholesale Bank
FNB Wholesale Bank FNB Wholesale Banking Products and Services FNB offers a comprehensive suite of products and services to create value for our clients and grow a diversified stream of revenues. Corporate and Business Banking Investment Real Estate Builder Financing Asset-Based Lending Treasury Man
Slide 15: Evolution of FNB's Digital Bank
Evolution of FNB’s Digital Bank FNB’s digital and data strategies improve customer experience and drive revenue growth. Key milestones of FNB’s digital and data strategies 2015-2016 2017-2019 2020 2021-2022 2023 2024 Future Outlook • Click-to-Bricks strategy • Data Science Team • Redesigned website
Slide 16: Technology Evolution & Digital Trends
Technology Evolution & Digital Trends Significant opportunity to drive increased digital product adoption across our expanding client base. Omnichannel strategy Digital has been on the rise Expanding our online involves a robust ATM and growing rapidly capabilities network Increased digital presence
Slide 17: Online and Mobile Channels Continue to See Strong Adoption
Online and Mobile Channels Continue to See Strong Adoption Strong momentum in usage of digital tools and other non-branch delivery channels, along with tools to equip our teams to outperform. Online Banking eStore® Visits(2) Active user base had continued Total eStore Interactions have 3% growth inc
Slide 18: FNB's Holistic Data Strategy
FNB’s Holistic Data Strategy Investments in data architecture lead to organic customer growth Acquire Consolidate Evaluate Deliver Delivery focuses on data science, visualization, and advanced analytics Data Enterprise Data Self-Service Data Warehouse Preparation Sources Casual User Internal Dynamic
Slide 19: Financial Highlights
Financial Highlights EN.B. Corporation 19
Slide 20: Fourth Quarter 2024 Highlights
Financial Highlights Fourth Quarter 2024 Highlights ❖ Earnings per diluted common share of $0.30 and operating earnings per diluted common share(1) (non-GAAP) of $0.38. o Full year 2024 earnings per diluted common share of $1.27 and operating earnings per diluted common share(1) (non- GAAP) of $1.39
Slide 21: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights 4Q24 3Q24 4Q23 2024 2023 Net income available to common stockholders (millions) $109.9 $110.1 $48.7 $459.3 $476.8 Reported Earnings per diluted common share $0.30 $0.30 $0.13 $1.27 $1.31 Results Book value per common share $17.52 $17.38 $16.56 Operating net income
Slide 22: Asset Quality
Asset Quality $ in millions, unless otherwise stated 4Q24 3Q24 4Q23 4Q24 Highlights Delinquency 0.83% 0.79% 0.70% o Credit quality remains at solid levels across all portfolios. NPLs+OREO/Total loans and leases + OREO 0.48% 0.39% 0.34% o Provision for credit losses decreased $1.2 million from the pr
Slide 23: Asset Quality Ratios
Asset Quality Ratios Asset quality metrics remain at solid levels and FNB will continue to manage risk proactively as part of our core credit philosophy. NCO’s (Annualized) to Average Loans NPL’s and OREO to Loans and OREO 0.25% 0.24% 0.48% 0.34% 0.33% 0.33% 0.39% 0.16% 0.10% 0.09% 4Q23 1Q24 2Q24 3Q
Slide 24: F.N.B. Corporation Historical Asset Quality
F.N.B. Corporation Historical Asset Quality Full-year NCOs/ Loans Full-year NPL + OREO / Loans + OREO Florida Exit 1.15% 2.84% Florida Exit 2.74% 2.62% 2.05% 0.77% 0.60% 0.58% 1.42% 1.24% Regency Sale Regency Sale 0.93% 0.97% 0.91% 0.35% 0.29% 0.79% 0.28% 0.28% 0.26% 0.66% 0.61% 0.70% 0.23% 0.21% 0.
Slide 25: Loan Portfolio Mix
Loan Portfolio Mix Highly diversified, commercial-focused loan portfolio. Loan Portfolio (as of December 31, 2024) Owner-Occupied C&I 11% 20% Other 2% Equip Finance/Commercial Leasing Group 4% Non-Owner CRE Indirect 27% 2% HELOC 4% Home Equity 7% Residential Mortgage 23% Total Loan Portfolio: $33.9
Slide 26: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE Portfolio(1) CRE - Office Loan Statistics Retail as of December 31, 2024 20.5% ❖ Long history of working with well-established sponsors with a focus on strong global cash flows. Office Other 18.7% ❖ The top 25 loans average $22 million in expos
Slide 27: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio(1) NOO-CRE Loans1 to Capital NOO-CRE Loan Statistics 275% as of December 31, 2024 ❖ Strong diversification across property types and geographies. 250% ❖ No outsized risk to any one property. 225% o Average loan size is $1 million. 200% o No single funded loan over $5
Slide 28: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 4Q24 3Q24 4Q23 QoQ ∆ (1) YoY ∆ 4Q24 Highlights Securities $7,315 $7,201 $7,096 1.6% 3.1% o Total securities duration decreased to 3.9 years with AFS comprising ~47% of the portfolio. Total Loans 33,830 33,803 32,268 0.1% 4.8% o Total average loan growt
Slide 29: Deposit Composition
Deposit Composition FNB Maintains a Favorable Deposit Mix. Total Period-End Deposits(1) (2009 – 2024) $37.1 ($ amount in billions) 2009 2024 Δ $34.8 $34.7 NIB Deposits 16% 26% +10% $31.7 26% $29.1 Time Deposits 35% 20% -15% 29% 34% $24.8 34% $23.5 $22.4 31% 26% 26% 26% $16.1 54% 53% $12.6 26% $11.4
Slide 30: Stable and Granular Deposit Base
Stable and Granular Deposit Base Diversified funding channels provide levers for growth and reflect long-term relationships. Deposit Composition Key Statistics Strategy as of December 31, 2024 ❖ Total insured/collateralized deposits comprise approximately 77% of Consumer total deposits. Private Bank
Slide 31: Delivering Peer Leading Organic Growth
Delivering Peer Leading Organic Growth(1) FNB leveraged our diverse footprint to outpace the industry in loan and deposit growth while managing the overall cost of deposits. Loan and Deposit Growth Cumulative Loan Growth 25.0% 4Q23 – 4Q24 5.0% Peer 17 4Q24 YoY Deposit Growth 20.0% 1.9% FNB achieved
Slide 32: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements(1)(2) FNB’s total depositAsCAGR of Juneis30, 9%2022 over the last 5 years. Savings, NOW, Non-Interest Balance Portfolio MMDA Bearing (in millions) (%) 53% 26% Savings, NOW, MMDA $19,846 53% Non-Interest Bearing 9,761 26% Transaction Deposits $29,607 79% $3
Slide 33: Investment Portfolio
Investment Portfolio Highly Rated Investment Portfolio As of December 31, 2024 % Ratings as of December 31, 2024 ($ in millions) Balance Portfolio Investment % Agency MBS $1,595 21% AAA 100% Agency CMBS 36% Agency Agency CMO 1,412 19% AAA 100% Debentures 5% Agency CMBS 2,714 36% AAA 100% Agency Debe
Slide 34: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 4Q24 3Q24 4Q23 QoQ Δ(2) YoY Δ 4Q24 Highlights Total interest income $568,693 $582,772 $531,587 (2.4%) 7.0% o Net interest income declined slightly from the prior quarter Total interest expense 246,477 259,443 207,562 (5.0%) 18.7% primarily d
Slide 35: Balance Sheet Repricing
Balance Sheet Repricing Cumulative Total Betas(1) Commentary 8/31/24 12/31/24 ❖ ~47% of loans reprice within 3 months. Fed Funds Rate 5.50% 4.50% ❖ ~$1.1 billion annual cash flow from the investment Other Total Interest-Bearing Deposit Beta 23% portfolio with a roll-off rate of ~3.04%. o Duration of
Slide 36: Non-Interest Income
Non-Interest Income $ in thousands, unless otherwise stated 4Q24 3Q24 4Q23 QoQ Δ(2) YoY Δ 4Q24 Highlights Service charges $23,071 $24,024 $19,849 (4.0%) 16.2% o Reported non-interest income reflected the $34.0 million Interchange and card transaction fees 12,912 12,922 13,333 (0.1%) (3.2%) realized
Slide 37: Non-Interest Expense
Non-Interest Expense $ in thousands, unless otherwise stated 4Q24 3Q24 4Q23 QoQ Δ(2) YoY Δ 4Q24 Highlights o Salaries and employee benefits Salaries and employee benefits $127,992 $126,066 $114,133 1.5% 12.1% increased linked-quarter primarily due to elevated employer-paid Occupancy and equipment(1)
Slide 38: 2025 Financial Objectives
2025 Financial Objectives 1Q25 Guidance FY 2025 Guidance Commentary Loan growth driven by increasing market share and our diverse Spot Loans Mid-single digit growth geographic footprint. Balance Sheet(1) Deposit growth driven by deepening customer relationships and Spot Deposits Mid-single digit gro
Slide 39: 2025 Peer Group Listing
2025 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp. RF Regions Financial Corp. BKU BankUnited, Inc. SFNC Simmons First National Corp. BOKF BOK Financial Corp. SNV Synovus Financial Corp. CBSH Commerce Bancshares, Inc. SSB SouthState Corp. CFR Cullen/Frost Bankers,
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