Slide 1: F.N.B. Corporation Investor Presentation
Exhibit 99.1 F.N.B. Corporation Investor Presentation Second Quarter 2012 Dated: September 13, 2012 Vincent J. Delie, Jr. President and Chief Executive Officer Vincent J. Calabrese, Jr. Chief Financial Officer
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 presentation and the reports F.N.B. Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting th
Slide 3: F.N.B. Corporation
F.N.B. Corporation 3
Slide 4: Key Facts
Key Facts Fourth Largest Pennsylvania-Based Bank –Assets $11.8 Billion Pennsylvania –Loans $7.9 Billion –Deposits $9.8 Billion –Banking Locations 266 Ohio –Consumer Finance Locations 69 –Headquarters Hermitage, PA Diverse Fee Income Sources with Attractive Footprint • First National Bank Location Co
Slide 5: Key Investment Considerations
Key Investment Considerations Strong Performance Positioning for Sustained Growth 1. Experienced leadership, compelling core competencies and a sustainable business model 2. Clear market position strategy 3. Strong operating results 4. Ongoing reposition and reinvest focus 5. Proven and disciplined
Slide 6: Leadership
Leadership Experienced and respected executive management team Years of Banking Experience Joined FNB Prior Experience President and CEO Vincent J. Delie, Jr. 25 2005 National City President, First National Bank John C. Williams, Jr. 41 2008 National City, Mellon Bank Chief Financial Officer Vincent
Slide 7: Core Competencies
Core Competencies Proven success and solid foundation for sustainable growth opportunities Core Competency Proven Sustainable Commercial 2Q12 marks thirteen consecutive quarters of organic commercial People: Experienced team Bank -Strong loan growth(1) of bankers built over the C&I Focus C&Iloanport
Slide 8: Sustainable Business Model
Sustainable Business Model Sustainable Business Model Disciplined Risk Growth FNB Shareholder Management Oriented Culture Value Maintain low risk Organic growth driven Attract, retain and Disciplined, growth profile by: develop top talent oriented focus guided Target neutral interest Best-in-class,
Slide 9: Industry Leading Loan Growth
Industry Leading Loan Growth Three years of consecutive quarterly organic loan growth accomplished (1) Total Loans (1) PA Commercial Loans 9.00% 14.00% 8.00% 11.60% 12.00% 7.00% 10.00% 10.00% 9.20% 6.00% 8.70% 5.00% 8.00% 6.80% 7.21% 6.70% 5.93% 4.00% 6.00% 5.20% 3.00% 4.30% 4.00% 3.20% 3.40% 2.00%
Slide 10: Market Position and Opportunity
Market Position and Opportunity 10
Slide 11: Market Position and Opportunity
Market Position and Opportunity Attractive overall market position FNB’s banking network spans 45 counties across Pennsylvania, Ohio and West Virginia. FNB holds a strong #3 market share for all counties operation. FNB benefits from a stable Pennsylvania economy that has outperformed much of the nat
Slide 12: Attractive Overall Market Position
Attractive Overall Market Position FNBholdsthe #3 overallretailmarketpositionfor all countiesof operation– withsignificant opportunities present for continued market share gains FNB Counties of Operation Branch Total Market DepositsTotal Market Share Rank Institution Count ($ 000) (%) 1 PNC Financia
Slide 13: Strong Pittsburgh Market Position
Strong Pittsburgh Market Position Successful execution of an organic and acquisition growth strategy in the Pittsburgh market Promistar Slippery NSD Iron & Parkvale Financial Rock Bancorp Glass Financial (Market Deposits: Deposits: Bancorp Deposits: Bank Entry) $0.2 bn $0.4 bn Deposits: $1.5 bn Acqu
Slide 14: #3 Deposit Market Share in a Top 25 U.S. MSA = Opportunity
# 3 Deposit Market Share in a Top 25 U.S. MSA = Opportunity Population Top 3 Banks in MSA by Deposit Market Share Rank MSA (000's) #1 #2 #3 1 New York(1) 18,897 JPM BofA Citi FNB is uniquely 2 Los Angeles 12,829 BofA Wells Fargo Mitsubishi UFJ 3 Chicago 9,461 JPM BMO BofA positioned as 4 Dallas 6,37
Slide 15: Pittsburgh Market Opportunity
Pittsburgh Market Opportunity Pittsburgh, PA FNB Presence FNB Presence Deposits(1) $3.4 billion – Significantly increased FNB presence – #3 market rank following the Parkvale % ofFNBTotalDeposits(1) 38% acquisition DepositMarket Share(1) (2) 4.2% – Regional headquarters accommodating Deposit Market
Slide 16: Pittsburgh Market Opportunity
Pittsburgh Market Opportunity Pittsburgh MSACommercial MarketOpportunity(1) andEconomic Indicators(2) 2,000 Pittsburgh MSA 1,500 1,000 Pennsylvania MSA Average 500 National MSA Average 0 500+ Employees Middle Market and Corporate 4-Year % Change in Jobs July 2012 Unemployment 5-Year Housing Apprecia
Slide 17: Marcellus and Utica Shale
Marcellus and Utica Shale FNB is well-positioned in the Marcellus Shale and Utica Shale regions with a Pennsylvania footprint that closely aligns with the Marcellus Shale concentration and exposure to the Utica Shale region in Ohio. FNB has been noted by analysts as being one of the best geographica
Slide 18: Marcellus and Utica Shale Economic Effect
Marcellus and Utica Shale Economic Effect Opportunity for FNB relates to potential indirect and induced economic benefits across footprint Directly associated with the extraction, processing and Direct Effect: delivery of the gas Oil and Gas Drilling, extraction and support activities Provides goods
Slide 19: Strong Operating Results
Strong Operating Results 19
Slide 20: 2Q12 Highlights
2Q12 Highlights 2Q12operatingresults– Positivetrendsin profitabilitymetrics Financial results driven by continued positive trends in key drivers Net income of $29.1 million and diluted earnings per share of $0.21 Net interest margin of 3.80% th Strongtotal loangrowth - 12 consecutivequarterof organi
Slide 21: 2Q12 Operating Highlights
2Q12 Operating Highlights 2Q12 1Q12 2Q11 Consistent Operating net income $29,336 $26,524 $22,467 Earnings Growth Operating earnings per diluted share $0.21 $0.19 $0.18 Operating ROTE 19.14% 17.78% 16.85% Solid Operating ROTA 1.13% 1.04% 1.02% Performance Net interest margin 3.80% 3.74% 3.78% Efficie
Slide 22: Net Interest Margin
Net Interest Margin Stablenet interestmarginreflectseffectiveinterestrate riskmanagement Net Interest Margin Trend Parkvale 4.00% Acquisition 1/1/2012 3.81% 3.78% 3.81% 3.78% 3.79% 3.79% 3.80% 3.77% 3.74% 3.80% 3.60% 3.40% 3.20% 3.00% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Managing to a neutra
Slide 23: Asset Quality Results
Asset Quality Results(1) $ in thousands 2Q12 1Q12 2Q11 2Q12 Highlights Overall asset quality results reflect the NPL’s+OREO/Total loans+OREO 1.93% 2.22% 2.57% continued solid performance of the Pennsylvania and Regency portfolios and significant reductions in the Florida Total delinquency 1.78% 2.03
Slide 24: Positive Asset Quality Trends
Positive Asset Quality Trends NCO’s to Average Originated Loans (1) NPL’s+OREO to Originated Loans+OREO (1) 4.00% 1.20% 3.50% 1.00% 3.00% 2.74% 0.80% 0.77% 2.50% 2.15% 1.93% 0.62% 2.00% 0.60% 0.33% 1.50% 1.56% 0.23% 0.38% 1.32% (2) 1.29% 0.40% 1.00% 0.20% 0.44% 0.39% 0.36% 0.50% 0.00% 0.00% 2010 201
Slide 25: Diversified Loan Portfolio
Diversified Loan Portfolio 6/30/12 CAGR % of Portfolio ($ in millions) 12/08- $7.9 Billion Loan Portfolio Balance 12/31/08 6/30/12 6/12 June 30, 2012 C&I $1,493 13.9% 16% 19% CRE: Non-Owner Occupied 1,319 10.4% 16% 17% Commercial & CRE: Owner Occupied 1,214 5.7% 17% 15% Industrial 19% Commercial Lea
Slide 26: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 6/30/12 CAGR Mix % $9.8 Billion Deposits and ($ in millions) 12/08- Customer Repo Agreements Balance 6/12 12/31/08 6/30/12 June 30, 2012 Savings, NOW, MMDA $4,485 14.2% 44% 46% Time Deposits 2,685 4.3% 36% 28% Non-Interest Bearing 17% Non-Interest Bearing
Slide 27: Investment Portfolio
Investment Portfolio % Ratings ($ in millions(1)) Portfolio Investment % Agency MBS $1,245 54% AAA 100% Highly Rated $2.3 Billion Investment Portfolio CMO Agency 420 18% AAA 100% June 30, 2012 Agency Senior Notes 359 16% AAA 100% AAA 2% Municipals 183 8% AA 90% A 8% Short-Term 25 1% AAA 100% BBB 8%
Slide 28: Well Capitalized
Well Capitalized Consistent capital management strategy focused on the efficient use of capital March 31, 2012 June 30, 2012 14.0% 12.0% 12.0% 12.0% 10.5% 10.5% 10.0% 8.1% 8.1% 8.0% 5.8% 6.0% 6.0% 4.0% 2.0% 0.0% Total Risk-Based Tier One Leverage Tangible Common Equity Dividend Payout Ratio 2Q12 YTD
Slide 29: Reposition and Reinvest
Reposition and Reinvest 29
Slide 30: E-Delivery Strategy Update
E-Delivery Strategy Update Using leading edge technology to enhance client value, leading to further client acquisition, supporting client retention and generating related revenue opportunities Delivery Method Status Description Online Completed : Online bill pay, person-to-person payments, eBills,
Slide 31: Optimizing Delivery Channel
Optimizing Delivery Channel As part of ongoing delivery channel optimization, FNB announces plans to consolidate 20 locations and reduce services at 3 locations Consolidation expected to take place mid-4Q12 This action provides the opportunity to: Enhance operating efficiency and profitability Focus
Slide 32: Acquisition Strategy
Acquisition Strategy 32
Slide 33: Acquisition Strategy
Acquisition Strategy Strategy Focus on strategically important markets with growth potential. Acquisition-related expansion has historically been focused on enhancing presence in the Pittsburgh market and eastern and central Pennsylvania. Consideration given to additional attractive markets contiguo
Slide 34: Acquisition-Related Expansion
Acquisition-Related Expansion FNB is a proven merger integrator with nine bank acquisitions, totaling $7.9 billion in assets, completed since 2002 Pre-2002 Presence Pittsburgh MSA Acquisition Expansion Additional Acquisition-Related Expansion Current FNB Banking Location 34
Slide 35: Investment Thesis
Investment Thesis 35
Slide 36: Long-Term Investment Thesis
Long-Term Investment Thesis FNB’s long-term investment thesis reflects a commitment to efficient capital management and creating value for our shareholders Long-Term Investment Thesis: Targeted EPS Growth 5- 6% Expected Dividend Yield 4- 6% (Targeted Payout Ratio 60-70%) Total Shareholder Return 9-1
Slide 37: Relative Valuation Multiples
Relative Valuation Multiples FNB has a modest P/E valuation relative to peers given its higher-quality earnings stream, stronger dividend yield and future growth potential Regional Peer National Peer FNB Group Median Group Median(1) Price/Earnings Ratio (2) FY13 Consensus EPS (FNB=$0.88) 12.8x 13.3x
Slide 38: Quality Earnings Stream
Quality Earnings Stream Quality earnings stream demonstrated by positively trending pre-tax, pre-provision earnings Pretax, Preprovision EPS (1) 5.2% $1.50 CAGR $1.45 $1.40 $1.35 $1.30 $1.25 $1.20 $1.15 $1.10 $1.05 $1.00 2011 2012 2013 (1) 2011 per actual results adjusted for merger costs; 2012 and
Slide 39: Total Shareholder Return and Dividend Yield
Total Shareholder Return and Dividend Yield 3-YearTotalShareholder Return(1) 1-YearTotalShareholder Return(1) 45.0% 42.3% 40.0% 38.0% 35.0% 33.9% 30.0% 26.6% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% FNB Regional Peers National Peers S&P 500 CurrentDividendYield(1) Last Twelve Months Dividend Payout Ratio 4
Slide 40: FNB Among Top Performing Banks
FNB Among Top Performing Banks Year-to-Date Performance Relative Valuation/Total Return Net Assets ($ EfficiencyNet Charge Interest Price/ 2013EDividend Total ReturnTotal Return billions) ROTCE (%)Ratio (%) Offs (%) Margin Price/TBV (x) EPS (x) Yield (%) 3 Yr (%) 1 Yr (%) Peer Median Results Regiona
Slide 41: Relative Valuation Analysis
Relative Valuation Analysis Where a bank trades relative to tangible book value is highly correlated with its projected return on tangible capital 20% R-squared = 83% (1) FNB Currently trades at a discount to its 18% peers based on its projected ROATE of 18.2%(2) 16% 14% 12% 10% 8% 6% 0.50x 0.75x 1.
Slide 42: Supplemental Information
Supplemental Information 42
Slide 43: Supplemental Information Index
Supplemental Information Index Regency Finance Company Profile Regional Peer Group Listing Board of Directors GAAP to Non-GAAP Reconciliation 43
Slide 44: Regency Finance Company Profile
Regency Finance Company Profile Conservatively run consumer finance business with over 80 years of consumer lending experience Good credit quality: Year-to-date net charge-offs to average loans of 3.57% Strong returns: First six months of 2012: ROA 3.11%, ROE 32.82%, ROTE 36.99% Regency Finance Comp
Slide 45: Regional Peer Group Listing
Regional Peer Group Listing ASBC Associated Bancorp NPBC National Penn Bancshares, Inc. CBSH Commerce Bancshares, Inc. ONB Old National Bancorp CBU Community Bank Systems, Inc. PRK Park National Corp CHFC Chemical Financial Corp. PVTB Private Bancorp, Inc. CRBC Citizens Republic Bancorp, Inc. SBNY S
Slide 46: Board of Directors
Board of Directors Director Name Age Since Biography Stephen J. Gurgovits 69 1981 Chairman of the Board effective January 2012; former Chief Executive Officer of F.N.B. Corporation Vincent J. Delie, Jr. 47 2012 President and Chief Executive Officer effective January 2012 William B. Campbell 74 1975
Slide 47: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the Quarter Ended June 30 Year-to-Date June 30, 2012 March 31, 2012 June 30, 2011 2012 2011 Operating net income Net income $29,130 $21,582 $22,362 $50,712 $39,537 Merger and severance costs, net of tax 206 4,943 105 5,149 2,800 Operating net income $29,336 $26,52
Slide 48: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2011 2010 Operating net income Net income $87,047 $74,652 Merger and severance costs, net of tax 3,238 402 One-time pension credit (6,853) Operating net income $90,285 $68,201 Operating return on average tangible equity Operating net income $90,285 $68,201 Amortizatio