Slide 1: F.N.B. Corporation Earnings Presentation Fourth Quarter 2022
F.N.B. Corporation Earnings Presentation Fourth Quarter 2022 January 24, 2023
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 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 availabl
Slide 4: Financial Highlights
Financial Highlights Fourth Quarter 2022 Highlights ❖ Earnings per diluted common share of $0.38 and operating (non-GAAP) earnings per diluted share of $0.44. ❖ UB Bancorp (Union) acquisition was successfully completed on December 9, 2022. o Added loans and deposits with estimated fair values of $65
Slide 5: Strong Financial Performance
Strong Financial Performance Strong Profitability Metrics 4Q22 YoY Spot Loan Growth(5) Quarter Ended 12/31/2022 19.2% 21.9% 45.8% 21% 29% Reported Operating Efficiency ROATCE(1) ROATCE(1) Ratio(1)(4) Total Loans Consumer Loans 1.4% 1.6% 3.53% 4Q22 YoY Spot Deposit Growth(5) Reported Operating Net In
Slide 6: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights 4Q22 3Q22 4Q21 2022 2021 Net income available to common stockholders $137.5 $135.5 $96.5 $431.1 $396.6 (millions) Reported Earnings per diluted common share $0.38 $0.38 $0.30 $1.22 $1.23 Results Book value per common share $15.39 $15.11 $15.81 Operating net income
Slide 7: Asset Quality
Asset Quality $ in millions, unless otherwise stated 4Q22 3Q22 4Q21 4Q22 Highlights o Asset quality remained at favorable levels with Delinquency 0.71% 0.59% 0.61% the portfolio well positioned entering 2023. NPLs+OREO/Total loans and leases + o The increase in provision for credit losses was 0.39%
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 4Q22 (1) 3Q22 4Q21 QoQ ∆ (3) YoY ∆ 4Q22 Highlights o Spot commercial loans Securities 7,273 7,246 6,487 0.4% 12.1% increased 6.1% linked quarter with quarterly production of $1.3 billion. Total Loans(4) 29,361 28,431 24,734 3.3% 18.7% o Consumer loans
Slide 9: Deposits Composition
Deposits Composition Total Deposits (2009 – 2022) 2009 2022 Δ 34% NIB Deposits 16% 34% 18% 34% Time Deposits 35% 10% (25%) 31% 26% 26% 26% 26% 56% 52% 55% 56% 57% 24% 54% 23% 22% 19% 18% 58% 16% 16% 54% 56% 53% 53% 50% 52% 52% 21% 22% 19% 28% 26% 23% 20% 16% 13% 9% 10% 35% 32% 30% 2009 2010 2011 201
Slide 10: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 4Q22 3Q22 4Q21 QoQ Δ(2) YoY Δ 4Q22 Highlights Total interest income $407,882 $342,714 $244,752 19.0% 66.7% o Net interest income increased $38 million from the prior quarter Total interest expense 72,993 45,589 21,476 60.1% 239.9% reflecting
Slide 11: Interest Rate Risk Profile
Interest Rate Risk Profile Cumulative Total Deposit Betas Loan Repricing Frequency 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 16,000,000 as of December 31, 2022 Fed Funds Rate 0.25% 0.50% 1.75% 3.25% 4.50% 48.2% Other Cumulative Deposit Beta 0.2% 9.7% 12.5% 16.3% 14,000,000 40.6% 12,000,000 1M SOFR T
Slide 12: Non-Interest Income
Non-Interest Income $ in thousands 4Q22 3Q22 4Q21 QoQ Δ(1) YoY Δ 4Q22 Highlights o Service charges year-over- Service charges $35,536 $35,954 $32,462 (1.2%) 9.5% year growth was driven by interchange fees, treasury Trust income 9,371 9,600 9,534 (2.4%) (1.7%) management, and increased customer activ
Slide 13: Non-Interest Expense
Non-Interest Expense $ in thousands 4Q22 3Q22 4Q21 QoQ Δ (2) YoY Δ 4Q22 Highlights Salaries and employee benefits $103,558 $106,620 $104,053 (2.9%) (0.5%) o Operating (non-GAAP) occupancy and equipment increased $5.7 million from Occupancy and equipment(1) 36,794 34,839 31,115 5.6% 18.3% the year-ag
Slide 14: 2023 Financial Objectives
2023 Financial Objectives(2) 1Q23 Guidance FY 2023 Guidance Commentary Spot Loans Mid single digit growth Balance Sheet(1) Continued customer growth and active Spot Deposits Flattish management of deposit rates offsetting impacts from a higher rate environment. Net Interest Income Assumes additional
Slide 15: Non-GAAP to GAAP Reconciliation
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Slide 16: Non-GAAP to GAAP Reconciliation
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Slide 17: Non-GAAP to GAAP Reconciliation
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Slide 18: Non-GAAP to GAAP Reconciliation
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Slide 19: Non-GAAP to GAAP Reconciliation
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Slide 20: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 20