Slide 1: F.N.B. Corporation Earnings Presentation Second Quarter 2023
F.N.B. Corporation Earnings Presentation Second Quarter 2023 July 20, 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 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 2023 Highlights (compared to the year-ago quarter, unless stated otherwise) ❖ Earnings per diluted common share of $0.39, an increase of 30.0%. o Revenue totaled $410 million, an increase of 22.0%. o Net income available to common shareholders totaled $140 million
Slide 5: Strong Financial Performance
Strong Financial Performance Strong Profitability Metrics Quarter Ended 6/30/2023 2Q23 YoY Spot Balances Growth 18.3% 50.0% ROATCE(1) Efficiency Ratio(1)(3) 12% 1% Total Loans Total Deposits 1.4% 3.37% ROATA(1) Net Interest Margin(1)(3) 2Q23 YoY Quarterly Revenue Growth Significant Capital, Reserves
Slide 6: Second Quarter Financial Highlights
Second Quarter Financial Highlights 2Q23 1Q23 2Q22 YTD 2023 YTD 2022 Net income available to common stockholders $140.4 $144.5 $107.1 $284.9 $158.1 (millions) Reported Earnings per diluted common share $0.39 $0.40 $0.30 $0.78 $0.45 Results Book value per common share $15.92 $15.76 $15.19 Operating n
Slide 7: Strong Capital Position
Strong Capital Position FNB maintains capital ratios that are stronger than peer banks while demonstrating a more conservative credit culture. TCE Ratio CET1 Ratio 7.5% 7.5% (1) (1) 6.8% 6.9% 6.9% 10.0% 10.0% 10.1% 6.3% 9.3% 9.3% 8.9% 8.4% 8.6% 8.3% (2) (2) FNB FNB Peer Median FNB FNB Peer Median As
Slide 8: Asset Quality
Asset Quality $ in millions, unless otherwise stated 2Q23 1Q23 2Q22 2Q23 Highlights o The provision for credit losses Delinquency 0.75% 0.60% 0.58% supported loan growth and a specific reserve for a single C&I loan downgraded to nonperforming status during the quarter. NPLs+OREO/Total loans and leas
Slide 9: Loan Portfolio Mix
Loan Portfolio Mix Highly diversified, commercial-focused loan portfolio Loan Portfolio (As of June 30, 2023) C&I Owner CRE 22% 11% Equip Finance Loans and Leases 3% Other 1% Non-Owner CRE Indirect 26% 5% HELOC 4% Home Equity 8% Residential Mortgage 20% Total Loan Portfolio: $31.4 billion Total Comm
Slide 10: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE Portfolio(1) CRE - Office Loan Statistics Retail Office as of June 30, 2023 20.0% 22.3% ❖ Long history of working with well-established sponsors with a focus on strong global cash flows. ❖ Average LTV is in the low 60’s. $8.2 Billion of ❖ Delin
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 2Q23 1Q23 2Q22 QoQ ∆ (1) YoY ∆ 2Q23 Highlights o Total securities slightly Securities 7,145 7,270 7,070 (1.7%) 1.1% decreased quarter-over- quarter with AFS comprising 47% of the portfolio and Total Loans 31,048 30,410 27,245 2.1% 14.0% average duratio
Slide 12: Deposit Composition
Deposit Composition FNB Maintains a Favorable Deposit Mix Total Deposits(1) (2009 – 2Q23) $34.8 $34.2 $33.8 2009 2Q23 Δ $31.7 NIB Deposits 16% 32% 16% $29.1 Time Deposits 35% 16% (19%) 34% 33% 32% $24.8 34% $23.5 31% $22.4 26% 26% 26% $16.1 $12.6 26% 53% 52% $11.4 56% $10.2 52% 55% 56% 57% $9.1 24%
Slide 13: 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 Private as of June 30, 2023 as of June 30, 2023 Banking ❖ $33.8 billion in total deposits with a continued strategic focus 3% Consumer 41% on
Slide 14: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 2Q23 1Q23 2Q22 QoQ Δ(2) YoY Δ 2Q23 Highlights Total interest income $484,200 $443,503 $280,778 9.2% 72.4% o Net interest income decreased linked- quarter from Total interest expense 154,956 106,849 27,088 45.0% 472.0% accelerating deposit co
Slide 15: Interest Rate Risk Profile
Interest Rate Risk Profile Cumulative Total Deposit Betas Loan Repricing Frequency as of June 30, 2023 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Fed Funds Rate 1.75% 3.25% 4.50% 5.00% 5.25% 16,000,000 Cumulative Deposit Beta 9.7% 12.5% 16.6% 21.8% 27.0% 47.7% Other 14,000,000 39.7% Total Loans: 12,00
Slide 16: Non-Interest Income
Non-Interest Income $ in thousands 2Q23 1Q23 2Q22 QoQ Δ(1) YoY Δ 2Q23 Highlights o Service charges increased Service charges $34,056 $32,640 $34,693 4.3% (1.8%) linked-quarter due to strong treasury Trust income 10,630 10,611 9,713 0.2% 9.4% management services and interchange fees offsetting the ov
Slide 17: Non-Interest Expense
Non-Interest Expense $ in thousands 2Q23 1Q23 2Q22 QoQ Δ (2) YoY Δ 2Q23 Highlights Salaries and employee benefits $113,946 $120,247 $103,870 (5.2%) 9.7% o Salaries and employee benefits decreased $6.3 Occupancy and equipment 38,034 39,442 34,455 (3.6%) 10.4% million linked-quarter, primarily from se
Slide 18: 2023 Financial Objectives
2023 Financial Objectives 3Q23 Guidance FY 2023 Guidance Commentary Spot Loans Mid-single digit growth Balance Sheet(1) Expecting year-end balances to be flattish to Spot Deposits Down low-single digits 6/30/23 levels as seasonality becomes a tailwind in the second half of 2023. Net Interest Income
Slide 19: 2023 Peer Group Listing
2023 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp. PNFP Pinnacle Financial Partners. BKU BankUnited, Inc. RF Regions Financial Corp. BOKF BOK Financial Corp. SNV Synovus Financial Corp. CBSH Commerce Bancshares, Inc. SSB SouthState Corp. CFR Cullen/Frost Bankers,
Slide 20: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 20
Slide 21: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 21
Slide 22: Non-GAAP to GAAP Reconciliation
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Slide 23: Non-GAAP to GAAP Reconciliation
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Slide 24: Non-GAAP to GAAP Reconciliation
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Slide 25: Non-GAAP to GAAP Reconciliation
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