Slide 1: F.N.B. Corporation Earnings Presentation Second Quarter 2024
F.N.B. Corporation Earnings Presentation Second Quarter 2024 July 18, 2024
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: Financial Highlights
Financial Highlights Second Quarter 2024 Highlights ❖ Earnings per diluted common share of $0.34. o Pre-provision net revenue(1) totaled $177.2 million, a 4.4% increase from the prior quarter. o Net income available to common stockholders totaled $123 million, an increase of 5.8% from the prior quar
Slide 5: Strong Financial Performance
Strong Financial Performance Solid Profitability Metrics 14.5% 1.16% 54.4% 3.09% Net Interest Quarter Ended June 30, 2024 ROATCE(1) ROATA(1) Efficiency Ratio(1)(2) Margin(1)(2) Significant Capital, Reserves & Liquidity 7.9% 10.2% 1.24% 153% as of June 30, 2024 TCE/TA(1) CET1(4) ACL Ratio Uninsured a
Slide 6: Second Quarter Financial Highlights
Second Quarter Financial Highlights 2Q24 1Q24 2Q23 Net income available to common stockholders (millions) $123.0 $116.3 $140.4 Reported Earnings per diluted common share $0.34 $0.32 $0.39 Results Book value per common share $16.94 $16.71 $15.92 Operating net income available to common stockholders (
Slide 7: Asset Quality
Asset Quality $ in millions, unless otherwise stated 2Q24 1Q24 2Q23 2Q24 Highlights Delinquency o Credit quality continues to trend 0.63% 0.64% 0.75% at solid levels across all portfolios. NPLs+OREO/Total loans and leases + OREO 0.33% 0.33% 0.47% o NPLs+OREO ended the quarter at a healthy level of 3
Slide 8: Asset Quality Ratios
Asset Quality Ratios Asset quality metrics remain at or near historical lows 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 0.47% 0.47% 0.36% 0.34% 0.33% 0.33% 0.16% 0.11% 0.10% 0.09% 0.07%
Slide 9: Loan Portfolio Mix
Loan Portfolio Mix Highly diversified, commercial-focused loan portfolio. Loan Portfolio (as of June 30, 2024) C&I Owner-Occupied 21% 11% Other 1% Equip Finance/Commercial Leasing Group 4% Non-Owner CRE Indirect 26% 3% HELOC 4% Home Equity 8% Residential Mortgage 22% Total Loan Portfolio: $33.8 bill
Slide 10: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE Portfolio(1) CRE - Office Loan Statistics Retail as of June 30, 2024 20.3% ❖ Long history of working with well-established sponsors with a Office focus on strong global cash flows. Other 19.6% ❖ The top 25 loans average $24 million in exposure.
Slide 11: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio(1) NOO-CRE Loans1 to Capital NOO-CRE Loan Statistics 275% as of June 30, 2024 ❖ Strong diversification across property types and geographies. 250% ❖ No outsized risk to any one property. o Average loan size is $1 million. 225% o No single funded loan over $50 million
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 2Q24 1Q24 2Q23 QoQ ∆(1) YoY ∆ 2Q24 Highlights Securities o Total securities duration remains $7,188 $7,163 $7,145 0.3% 0.6% stable at 4.2 years and AFS comprising ~46% of the portfolio. Total Loans 33,256 32,381 31,048 2.7% 7.1% o Total average loan gr
Slide 13: Deposit Composition
Deposit Composition FNB Maintains a Favorable Deposit Mix. Total Period-End Deposits(1) (2009 – 2Q24) ($ amount in billions) 2009 2Q24 Δ $34.8 $34.7 $34.7 $35.0 NIB Deposits 16% 29% +13% $31.7 $29.1 Time Deposits 35% 20% -15% 29% 29% 29% 34% $24.8 34% $23.5 $22.4 31% 26% 26% 26% $16.1 53% 52% 51% $1
Slide 14: 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 June 30, 2024 ❖ Total insured/collateralized deposits comprise approximately 78% of Private Banking Consumer total deposits.
Slide 15: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 2Q24 1Q24 2Q23 QoQ Δ(2) YoY Δ 2Q24 Highlights Total interest income $557,188 $543,497 $484,200 2.5% 15.1% o Net interest income declined slightly from the prior quarter, primarily due to higher cost of Total interest expense 241,298 224,489
Slide 16: Balance Sheet Repricing
Balance Sheet Repricing Cumulative Total Deposit Betas Loan Repricing Frequency as of June 30, 2024 18,000,000 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 47.5% Fed Funds Rate 5.25% 5.50% 5.50% 5.50% 5.50% 16,000,000 Other Cumulative Deposit Beta 26.6% 31.0% 34.3% 36.5% 38.1% 14,000,000 37.5% Commentar
Slide 17: Non-Interest Income
Non-Interest Income $ in thousands, unless otherwise stated 2Q24 1Q24 2Q23 QoQ Δ(1) YoY Δ 2Q24 Highlights Service charges $23,332 $20,569 $20,534 13.4% 13.6% o Non-interest income totaled $87.9 million, consistent with Interchange and card transaction fees 13,005 12,700 13,522 2.4% (3.8%) the prior
Slide 18: Non-Interest Expense
Non-Interest Expense $ in thousands, unless otherwise stated 2Q24 1Q24 2Q23 QoQ Δ(2) YoY Δ 2Q24 Highlights Salaries and employee benefits (1) $120,917 $129,120 $113,946 (6.4%) 6.1% o Salaries and employee benefits decreased linked-quarter, primarily from normal seasonal Occupancy and equipment(1) 42
Slide 19: Strong Capital Position
Strong Capital Position FNB’s capital levels provide ample flexibility to grow the balance sheet and optimize shareholder returns while appropriately managing risk. TCE Ratio(1) CET1 Ratio 8.0% 7.8% 7.9% (5) 7.6% 10.2% 10.2% 10.0% 7.4% 9.8% 9.9% 9.8% 7.2% 7.2% 9.4% 2019 2020 2021 2022 2023 1Q24 2Q24
Slide 20: 2024 Financial Objectives
2024 Financial Objectives 3Q24 Guidance FY 2024 Guidance Commentary Loan growth driven by increasing market share and our diverse Spot Loans Mid-single digit growth geographic footprint. Balance Sheet(1) Spot Deposits Low-single digit growth Net Interest Income $315-$325 million $1.27-$1.29 billion
Slide 21: 2024 Peer Group Listing
2024 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,
Slide 22: Non-GAAP to GAAP Reconciliation
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Slide 23: Non-GAAP to GAAP Reconciliation
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