F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (November 2017)
35 slides from F.n.b's investor presentation, November 2017
Slide 1: FNB Corporation Investor Presentation Third Quarter 2017
FNB Corporation Investor Presentation Third Quarter 2017 November 2017
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: Key Investment Considerations
Key Investment Considerations • FNB’s unique business model is designed to deliver long-term shareholder value • Our infrastructure investments have positioned FNB well for long-term sustainable growth • Our proven strategy is to deliver consistent organic growth while adhering to our risk profile •
Slide 4: About FNB Corporation
About FNB Corporation High-Quality, • Headquarters: Pittsburgh, PA • Assets $31.1 billion1 Growing Regional Financial • Market Capitalization: $4.5 billion1 • Loans $20.8 billion1 Institution • Banking locations: Over 4001 • Deposits $21.9 billion1 • Regional bank focused on serving consumer and who
Slide 5: An Infrastructure Built for Long-Term Sustainable Growth
An Infrastructure Built for Long-Term Sustainable Growth 2012 2013 2014 2015 2016-2017 Talent Management Chief Technology & Chief Wholesale Strengthened team Chief Marketing Banking and Chief Chief Information Security Officer filled, retention of through key hires; Attract, retain, develop best tal
Slide 6: FNB's Market Expansion Model has Delivered Strong Organic Growth
FNB’s Market Expansion Model has Delivered Strong Organic Growth 12/31/2011-9/30/20171 Transaction Deposits Loans and Customer Repos Total Growth 21.3% 21.8% Organic Growth2 9.4% 9.3% Average Organic Total Loan Growth2 Average Organic Transaction Deposits and Customer Repo Growth2 9.7% 9.6% 9.0% 8.0
Slide 7: Expanded Footprint Provides Significant Opportunities
Expanded Footprint Provides Significant Opportunities Total C&I Businesses (thousands)1; Footprint Total = 2322 Total Population (millions)3; Footprint Total = 36.12,3 18.8 2.8 16.8 2.5 15.9 2.3 15.1 2.1 1.3 7.4 Baltimore MSA Charlotte MSA Cleveland MSA Pittsburgh Raleigh MSA Baltimore MSA Charlotte
Slide 8: Becoming a Data-Driven Bank
Becoming a Data-Driven Bank Evolving Our Marketing Data Capabilities Front-Line Impact • Internally generated leads incorporated into • Investments in proprietary data science targeted marketing campaigns and targeted marketing capabilities • Leads shared with front line to initiate • Development of
Slide 9: Execution of FNB's Long-Term Growth Strategy
Execution of FNB’s Long-Term Growth Strategy Key Performance YTD 2017 FY 2016 Long-Term Target Strategy Indicators Maintain Low- Originated net charge-offs Remain disciplined 33 bps 34 bps 25-50 bps Risk Profile (annualized)/average loans through the cycle Drive Organic Average loans 6% 8% 7-9% Grow
Slide 10: Operating Results
Operating Results 3Q17 Highlights and Relative Performance to Peers 10
Slide 11: 3Q17 Financial Highlights
3Q17 Financial Highlights As of or for the period ending 3Q17 2Q17 3Q16 Net income available to common stockholders (millions) $75.7 $72.4 $50.2 Reported Net income per diluted common share $0.23 $0.22 $0.24 results Book value per common share $13.39 $13.26 $11.72 Operating net income available to c
Slide 12: Asset Quality Results
1 Asset Quality Results $ in thousands 3Q17 2Q17 3Q16 3Q17 Highlights NPLs+OREO/Total average originated loans and leases + 0.91% 1.08% 1.08% • Consistent and stable credit OREO quality results across the portfolio Originated Delinquency 0.91% 0.99% 1.00% Provision for credit losses2 $16,768 $16,756
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights QoQ YoY 3Q17 2Q17 3Q16 QoQ Δ YoY Δ Organic1 Organic1 3Q17 Highlights Average, $ in millions Δ Δ • Continued growth in Securities $5,725 $5,607 $4,241 2.1% 35.0% commercial loans concentrated in Pittsburgh, Cleveland Total loans $20,654 $20,361 $14,642 1.4% 41.1% 5.7% 6.6% an
Slide 14: Revenue Highlights
Revenue Highlights QoQ YoY 3Q17 2Q17 3Q16 3Q17 Highlights $ in thousands Δ Δ Total interest income $263,514 $251,034 $175,110 5.0% 50.5% Total interest expense 38,283 32,619 17,604 17.4% 117.5% • Total revenue growth driven by higher net Net interest income $225,231 $218,415 $157,506 3.1% 43.0% inte
Slide 15: Non-Interest Income
Non-Interest Income QoQ YoY 3Q17 2Q17 3Q16 3Q17 Highlights $ in thousands Δ Δ Service charges $33,610 $33,389 $25,411 0.7% 32.3% • Growth in insurance, wealth management and Trust services 5,748 5,715 5,268 0.6% 9.1% mortgage banking offset by lower capital markets Insurance commissions activity 5,0
Slide 16: Non-Interest Expense
Non-Interest Expense QoQ YoY 3Q17 2Q17 3Q16 3Q17 Highlights $ in thousands Δ Δ Salaries and employee • Stable expenses reflect $82,383 $84,899 $60,927 -3.0% 35.2% benefits lower salaries and benefits expense offset Occupancy and equipment 27,434 26,480 20,367 3.6% 34.7% by higher occupancy and equip
Slide 17: Supplemental Information
Supplemental Information 17
Slide 18: Annual Operating Trends
Annual Operating Trends 2016 2015 2014 2013 2012 Operating Net income available to common stockholders Earnings1 (millions) $187.7 $153.7 $143.6 $123.1 $115.6 (Non-GAAP) Earnings per diluted common share $0.90 $0.87 $0.85 $0.84 $0.83 Return on average tangible common equity 14.75% 14.65% 15.56% 18.1
Slide 19: Performance Trends Relative to Peers
Performance Trends Relative to Peers Return on Average Assets1,2 Efficiency Ratio1,2 0.98% 1.02% 0.99% 0.97% 0.97% 0.95% 64% 63% 62% 62% 62% 0.97% 0.89% 0.90% 60% 0.85% 0.87% 59% 0.80% 58% 57% 56% 55% 55% 2012Y 2013Y 2014Y 2015Y 2016Y 2017YTD 2012Y 2013Y 2014Y 2015Y 2016Y 2017YTD FNB Peer Median FNB
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio 9/30/2017 % of Portfolio $20.5 Billion Loan Portfolio ($ in millions) September 30, 2017 Balance 12/31/11 9/30/2017 Other 0% Regency 1% Indirect 7% Commercial Leases 2% C&I $3,839 20% 18% CRE: Non-Owner Occupied 5,727 17% 28% CRE: Non- Residential Owner CRE: Owner Occupied
Slide 21: Diversified Loan Portfolio
Diversified Loan Portfolio YTD Net Charge- Total Past 1 ($ in millions) 9/30/2017 % of Loans NPL's/Loans Offs/Loans1 Due/Loans1 Commercial and Industrial $3,839 18.4% 1.25% 0.70% 1.24% CRE: Non-Owner Occupied 3,095 14.9% 0.36% -0.01% 0.33% CRE: Owner Occupied 5,727 27.5% 1.18% 0.10% 1.19% Home Equit
Slide 22: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 9/30/2017 Mix % ($ in millions) $22.2 Billion Deposits and Balance 12/31/11 9/30/2017 Customer Repo Agreements Savings, NOW, MMDA $12,096 48% 54% September 30, 2017 Non-Interest Bearing 5,569 17% 25% Transaction Deposits $17,665 Non-Interest Bearing 25% Ti
Slide 23: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $5.8 Billion Investment Portfolio ($ in millions1) Portfolio Investment % September 30, 2017 Agency MBS $2,776 48% AAA 100% Ratings Agency CMO 1,511 26% AAA 100% Agency Debentures 603 10% AAA 100% AAA, 86.7% AAA 9% AA 75% Municipals 839 14% A 16% AA, 10.8%
Slide 24: 2017 Peer Group Listing
2017 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp PBCT People’s United Financial, Inc. CBSH Commerce Bancshares, Inc. PB Prosperity Bancshares, Inc. CMA Comerica, Inc. SNV Synovus Financial Corp. CFR Cullen/Frost Bankers, Inc. TCF TCF Financial Corp. EWBC East We
Slide 25: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Operating net income available to common stockholders Net income available to common stockholders $ 75,683 $ 72,396 $ 20,969 $ 49,280 $ 50,158 Merger-relate
Slide 26: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Return on average tangible common equity (ROATCE) Net income available to common stockholders (annualized) $ 300,266 $ 290,381 $ 85,042 $ 196,049 $ 199,543 Amortization of intangibl
Slide 27: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Return on average tangible assets (ROATA) Net income (annualized) $ 308,237 $ 298,443 $ 93,191 $ 204,050 $ 207,540 Amortization of intangibles, net of tax (annualized) 12,392 12,547
Slide 28: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Operating net income Net income $ 77,693 $ 74,406 $ 22,979 $ 51,291 $ 52,168 Merger-related expense 1,381 1,354 52,724 1,649 299 Tax benefit of merger-related expense (483) (419) (1
Slide 29: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Tangible book value per common share (at period-end) Total stockholders' equity $ 4,435,921 $ 4,392,438 $ 4,355,795 $ 2,571,617 $ 2,570,580 Less: preferred
Slide 30: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Efficiency Ratio (FTE) Non-interest expense $ 163,743 $ 163,714 $ 187,555 $ 123,806 $ 121,050 Less: amortization of intangibles 4,805 4,813 3,098 1,602 3,571 Less: OREO expense 1,42
Slide 31: Net Interest Income and Net Interest Margin (FTE)
Net Interest Income and Net Interest Margin (FTE) For The Quarter Ended $ in thousands 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Components of net interest income Net interest income $ 225,231 $ 218,415 $ 172,752 $ 159,283 $ 157,506 Net interest margin (FTE)(1) 3.44% 3.42% 3.35% 3.35% 3.36%
Slide 32: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts 2016 2015 2014 2013 2012 Operating net income available to common stockholders Net Income available to common stockholders $ 162,850 $ 151,608 $ 135,698 $ 117,804 $ 110,410 Merger-related expenses, net of tax
Slide 33: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts 2016 2015 2014 2013 2012 Return on average tangible common equity Net income available to common stockholders $ 162,850 $ 151,608 $ 135,698 $ 117,804 $ 110,410 Amortization of intangibles, net of tax 8,943 6,
Slide 34: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts 2016 2015 2014 2013 2012 Return on average assets Net income $ 170,891 $ 159,649 $ 144,050 $ 117,804 $ 110,410 Average total assets $ 20,677,717 $ 16,606,147 $ 14,962,140 $ 12,640,685 $ 11,782,821 Return on a
Slide 35: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts 2016 2015 2014 2013 2012 Efficiency Ratio Non-interest expense $ 511,133 $ 390,549 $ 379,253 $ 338,170 $ 318,829 Less: amortization of intangibles 11,210 8,305 9,717 8,407 9,135 Less: OREO expense 5,154 4,637