F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (November 2019)
35 slides from F.n.b's investor presentation, November 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019 F.N.B. Corporation
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: Who is F.N.B. Corporation?
Who is F.N.B. Corporation? Top 50 U.S. Bank Holding Company o 2nd largest bank headquartered in Pennsylvania Premier Mid-Atlantic Regional Bank operating in 7 states and Washington D.C. o $34 billion in total assets at 9/30/2019 2.5 million customers o ~380 branches and loan production offices in 7
Slide 4: Where does FNB stand today?
Where does FNB stand today? Positioned for Diversification and Growth o Significant presence in 7 major metropolitan Erie markets with population over 1 million and Cleveland Hermitage State Scranton numerous secondary markets College o FNB grew deposits in every major metropolitan Columbus Harrisbu
Slide 5: Our History
Our History Growth Strategy Achieved Key Objectives of Gaining Scale to Absorb Regulatory Costs and Entering Faster-Growing Markets 13 net FITB branches Average Annualized Organic Growth 2014-3Q19(1) YDKN METR $7.4B Commercial Loans 7% $2.9B $34.3 $33.1 Consumer Loans 10% $31.4 Transaction Deposits
Slide 6: Capital Actions and Tangible Book Value Growth
Capital Actions and Tangible Book Value Growth FNB TBVPS + Cumulative Dividends, $ YDKN BCSB $7.4B METR 11.83 $0.6B OBAF 11.48 $2.9B 11.12 $0.4B 10.82 PVFC 10.58 $0.8B 10.38 10.32 PVSA 9.84 10.00 9.82 10.08 9.74 10.37 $1.8B ANNB 9.34 9.60 10.25 4.92 9.18 $0.4B 8.87 4.80 8.67 4.68 8.37 4.56 CB&T 8.10
Slide 7: The Five Pillars of our Long-Term Strategy
The Five Pillars of our Long-Term Strategy FNB drives performance to further improve on long-term strategic planning metrics YoY EPS Growth Efficiency of 22% Ratio ROATCE 54.8% 18.5% Build a Strong, Build a Differentiated Durable, Brand Optimize the Scalable Retail Bank Infrastructure Maintain Effic
Slide 8: Proof Points – Total Revenue and Net Income Growth
Proof Points – Total Revenue and Net Income Growth Total Revenue and Operating Net Income Available to Common Shareholders (millions) $1,208 $1,098 $813 $624 $660 $504 $532 $433 30.7% CAGR $372 $400 $367 $281 $310 $154 $188 $115 $123 $144 $101 $68 $87 $33 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 9: Proof Points – Fee Income Growth
Proof Points – Fee Income Growth Core Fee-Based Businesses ($ in thousands) o 42% of total growth in Non- 104,981 interest income FY 2018 / FY 2014 is a result of growth in 94,050 core businesses of Capital Markets, Wealth, Mortgage, 80,546 and Insurance which is primarily organic 69,711 o Capital M
Slide 10: Proof Points – Accelerating Capital Generation Supports Organic Growth
Proof Points – Accelerating Capital Generation Supports Organic Growth Tangible Common Equity/Tangible Assets (%) Tangible Book Value per Share 7.44 $7.33 $6.68 7.05 $6.44 6.89 $6.26 6.78 6.79 $6.14 3/31/2018 6/30/2018 9/30/2018 12/31/2018 9/30/2019 3/31/2018 6/30/2018 9/30/2018 12/31/2018 9/30/2019
Slide 11: FNB’s Value Proposition
FNB’s Value Proposition FNB seeks to deliver a balance of earnings growth, dividends, and tangible book value growth Tangible Book Value per Share + Cumulative Dividends $12.49 $11.48 $10.37 $10.38 TBVPS CAGR Since 12/31/20081 $9.74 $5.16 $8.87 $4.80 FNB Peer $9.00 $3.84 $4.32 Median $3.36 $6.85 $2.
Slide 12: Five Key Opportunities for 2019
Five Key Opportunities for 2019 •Positioned for solid performance in multiple markets Disciplined loan growth •Continued focus on underwriting •Portfolio diversification •Continue to gain traction in fee-based businesses in newer markets Diverse revenue growth •Significant opportunity in low relativ
Slide 13: 3Q19 Earnings Call Recap
3Q19 Earnings Call Recap 13
Slide 14: 3Q19 Financial Highlights
3Q19 Financial Highlights 3Q19 2Q19 3Q18 Net income available to common stockholders $100.7 $93.2 $98.8 (millions) Reported Results Earnings per diluted common share $0.31 $0.29 $0.30 Book value per common share $14.51 $14.30 $13.62 Operating net income available to common $100.7 $95.4 $94.7 stockho
Slide 15: Asset Quality
Asset Quality1 $ in thousands 3Q19 2Q19 3Q18 3Q19 Highlights NPLs+OREO/Total average originated o Favorable overall credit quality, with 0.56% 0.61% 0.73% consistent and steady performance loans and leases + OREO across all portfolios Delinquency 0.66% 0.66% 0.79% o Provision for loan losses support
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 3Q19 2Q19 3Q18 QoQ Δ3 YoY Δ 3Q19 Highlights Securities $6,271 $6,418 $6,341 (2.3%) (1.1%) o Spot loan growth of 9% Total Loans 22,727 22,760 21,775 (0.1%) 4.4% annualized, driven by annualized commercial growth of 8% and annualized Commercial Loans 14,
Slide 17: Revenue Highlights
Revenue Highlights $ in thousands 3Q19 2Q19 3Q18 QoQ Δ YoY Δ 3Q19 Highlights o Record non-interest income Total interest income $314,411 $316,234 $297,815 (0.6%) 5.6% was driven by strong capital markets activity, robust Total interest expense 84,609 85,827 63,028 (1.4%) 34.2% trust income, and soli
Slide 18: Non-Interest Income
Non-Interest Income $ in thousands 3Q19 2Q19 3Q18 QoQ Δ YoY Δ 3Q19 Highlights Service charges $33,158 $32,068 $31,922 3.4% 3.9% Trust income 6,932 7,018 6,395 (1.2%) 8.4% o Year-over-year growth of 71% in capital markets Insurance commissions and fees 6,141 4,411 5,001 39.2% 22.8% income due to stro
Slide 19: Non-Interest Expense
Non-Interest Expense $ in thousands 3Q19 2Q19 3Q18 QoQ Δ YoY Δ 3Q19 Highlights o Salaries and employee Salaries and employee benefits1 $93,598 $94,188 $89,535 (0.7%) 4.5% benefits reflect normal merit increases and impact Occupancy and equipment1 28,816 28,875 27,812 (0.2%) 3.6% of $15 per hour mini
Slide 20: Supplemental Information
Supplemental Information 20
Slide 21: Annual and YTD 2019 Operating Trends
Annual and YTD 2019 Operating Trends YTD2019 2018 2017 2016 2015 Net income available to common Operating Earnings1 stockholders $289.6 $366.7 $281.2 $187.7 $153.7 (Non-GAAP) Net income per diluted common share $0.89 $1.13 $0.93 $0.90 $0.87 Return on average assets 1.20% 1.17% 0.99% 0.95% 0.97% Prof
Slide 22: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $6.4 Billion Investment Portfolio ($ in millions1) 9/30/19 Portfolio Investment % September 30, 2019 Agency MBS $2,339 36% AAA 100% Agency CMO 1,874 29% AAA 100% Agency Debentures 596 9% AAA 100% AAA, 84.6% AAA 12% AA 75% Municipals 1,124 17% A 13% AA, 13.
Slide 23: Loan Risk Profile
Loan Risk Profile $23.1 Billion Loan Portfolio September 30, 2019 YTD Net Charge- Total Past 11 1 Direct ($ in millions) 9/30/2019 % of Loans NPL's/Loans Offs/Loans Due/Loans Installment 8% Commercial & Commercial and Industrial 4,862 21.1% 0.43% 0.11% 0.64% Industrial 22% CRE: Non-Owner Occupied 6,
Slide 24: Select Loan Portfolios
Select Loan Portfolios 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Residential Mortgage Indirect Installment 4.15% 3.64% 3.68% 4.19% 4.16% 4.10% 3.57% 4.15% 3.56% 3.47% -2.6%1 $1,964 $1,957 -0.3%1 $3,270 $3,184 $1,942 $3,169 $3,046 $1,908 $2,914 $1,830 Average Balance Yield Average Balance Yie
Slide 25: Key Fee-Based Businesses
Key Fee-Based Businesses $ in millions 3Q18 4Q18 1Q19 2Q19 3Q19 o Provides full range of consumer and $6.1 commercial insurances Insurance $5.0 $4.9 $4.4 $3.6 o Focus on cross-sell, further development of personal lines Insurance Commissions and Fees o Provides solutions to businesses, $4.3 $4.7 ind
Slide 26: Capital Markets and Specialty Finance
Capital Markets and Specialty Finance $ in millions 3Q18 4Q18 1Q19 2Q19 3Q19 o Realigned strategy supports FNB LOBs in our core footprint and nearby states Small Business $1.0 $1.0 $0.8 $0.8 Administration $0.6 o Focus on credit quality, documentation process, and mitigating “put-back” risk SBA Oper
Slide 27: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements $24.6 Billion Deposits and 09/30/2019 Mix % Customer Repo Agreements ($ in millions) September 30, 2019 Balance 09/30/19 Savings, NOW, MMDA $13,180 53% Non-Interest Non-Interest Bearing 6,292 25% Bearing 25% Transaction Deposits $19,472 Time Deposits 5,122
Slide 28: 2019 Peer Group Listing
2019 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 29: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in millions except per share amounts 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Operating net income available to common stockholders Net income available to common stockholders $ 100.7 $ 93.2 $ 92.1 $ 98.1 $ 98.8 Gain on sale of subsidi
Slide 30: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in millions 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Return on average tangible common equity (ROATCE) Net income available to common stockholders (annualized) $ 399.6 $ 373.7 $ 373.6 $ 389.3 $ 391.8 Amortization of intangibles, net of
Slide 31: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in millions 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Return on average tangible assets (ROATA) Net income (annualized) $ 407.6 $ 381.9 $ 381.8 $ 397.2 $ 399.8 Amortization of intangibles, net of tax (annualized) 11.3 11.0 11.1 12.0 11.
Slide 32: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in millions 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Operating net income Net income $ 102.7 $ 95.2 $ 94.1 $ 100.1 $ 100.8 Gain on sale of subsidiary - - - - (5.1) Tax expense of gain on sale of subsidiary - - - - 1.1 Branch consolidat
Slide 33: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in millions except per share amounts 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Tangible book value per common share (at period-end) Total stockholders' equity $ 4,820 $ 4,753 $ 4,680 $ 4,608 $ 4,525 Less: preferred stockholders' equity
Slide 34: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in millions 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Efficiency Ratio (FTE) Non-interest expense $ 177.8 $ 175.2 $ 165.7 $ 169.7 $ 170.7 Less: amortization of intangibles 3.6 3.5 3.5 3.8 3.8 Less: OREO expense 1.4 1.0 1.1 1.3 1.5 Less:
Slide 35: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Components of net interest income Net interest income $ 229,802 $ 230,407 $ 230,593 $ 232,242 $ 234,787 Net interest margin (FTE)(1) 3.17% 3.20% 3.26% 3.29% 3.36% Incremental purcha