F.n.b. Corporation · NYSE:FNB
F.n.b — Debt Investor Presentation (February 2019)
32 slides from F.n.b's debt investor presentation, Feb 6, 2019
Slide 1: Fixed Income Investor Presentation
Fixed Income Investor Presentation February 6, 2019 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial Information
2 Cautionary Statement Regarding Forward‐Looking Information and Non‐GAAP Financial Information Forward-Looking Statements 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.) expecta
Slide 3: Investor Highlights
Diversified revenue streams through retail and commercial banking, wealth management and insurance Proven, sustainable business model driving long-term growth and performance Disciplined sales culture focused on relationship-based loan and deposit growth with an emphasis on credit quality Strong Pen
Slide 4: Overview of FNB Corporation
Source: SNL Financial, Company Fillings Notes: Per SNL Financial, as of February 1, 2019 Greensboro–High Point MSA and Winston–Salem MSA 4 Overview of FNB Corporation High‐Quality, Growing Regional Financial Institution Consistent Operating Results Business Model Well‐Positioned for Sustained Growth
Slide 5: Experienced FNB Leadership Team
5 Experienced FNB Leadership Team Name Background Vincent Calabrese CFO 12 Years at FNB, 30+ Years of industry experience Calabrese has over 31 years of financial services experience. He joined F.N.B. Corporation in March 2007 as Senior Vice President and Corporate Controller. He was Senior Vice Pre
Slide 6: History of Acquisitions
Source: Notes: 6 History of Acquisitions NSD Bancorp Assets: $0.5Bn North East Assets: $0.1Bn Legacy Bank Assets: $0.4Bn Iron & Glass Bancorp Assets: $0.3Bn Omega Assets: $1.8Bn CB &T Assets: $0.6Bn Parkvale Assets: $1.8Bn Annapolis Bancorp Assets: $0.4Bn Parkview Assets: $0.8Bn BCSB Assets: $0.6Bn
Slide 7: An Infrastructure Built for Long-Term Sustainable Growth
7 An Infrastructure Built for Long‐Term Sustainable Growth 2014 2015 2016 2017 2018 PEOPLE Talent Management Strengthened team through key hires; Continuous team development Chief Technology & Chief Marketing Officer filled, launched Project Management Office Chief Wholesale Banking and Chief Consum
Slide 8: History of Delivering Peer Leading Profitability
History of Delivering Peer Leading Profitability ROATCE (1) ROAA (1) Efficiency Ratio (1) 8 (%) (%) (%) Source: SNL Financial, Company Fillings; peers include ASB, CBSH, CMA, CFR, EWBC, FHN, FRC, HWC, ISBC, NYCB, PBCT, PB, SNV, TCF, UMPQ, VLY, WBS, WTFC and ZION. Q3’18 LTM metrics used where full-ye
Slide 9: 2018 Financial Summary
2018 Financial Summary 9 Key Highlights Record Earnings Balance Sheet Growth Credit & Capital 1.3% ROATA 18.5% ROATCE 55% efficiency ratio $6.68 tangible book value per common share; 10% growth from 2017 Consumer loan growth of 7.0% and commercial of 4.5% Transaction deposit represents 77.5% of depo
Slide 10: Significant Trajectory of Revenue and Earnings Growth
Total Revenue ($MM) Net Income Available to Common Shareholders (1) ($MM) 10 Significant Trajectory of Revenue and Earnings Growth Source: Company Fillings Note: 1. Excludes operating net income adjustments from 2008-2012 14% CAGR 25% CAGR
Slide 11: FNB Has Demonstrated a Consistent and Stable NIM Outperforming Peers
FNB Has Demonstrated a Consistent and Stable NIM Outperforming Peers 11 Net Interest Margin Over Time vs. Peers Net Interest Margin (1)(2)(3) (Quarterly Since 2008) (%) Source: SNL Financial, Company Fillings Notes: 1.Peers include, ASB, CBSH, CMA, CFR, EWBC, FHN, FRC, HWC, ISBC, NYCB, PBCT, PB, SNV
Slide 12: Strong Fee Income Growth
Non-Interest Income (excluding security related gains / losses) ($MM) Components of Fee Income 12 Strong Fee Income Growth Fee Income represents 23% of Revenue Source: SNL Financial, Company Fillings 11% CAGR
Slide 13: Diversified Loan Portfolio
12/31/2018 % of Portfolio $ in millions Balance 12/31/2018 CRE $8,786 40% Commercial & Industrial 4,556 21% Commercial Leases 373 2% Other 46 <1% Total Commercial $13,761 62% Direct Installment 1,764 8% Residential Mortgage 3,113 14% Indirect Installment 1,933 9% Consumer LOC 1,582 7% Total Consumer
Slide 14: Loan Composition Profile
Loan Composition Profile $ in millions 9/30/2018 % of Loans NPL’s/ Loans (1) YTD Net Charge Offs / Loans (1) Total Past Due / Loans (1) Commercial and Industrial 4,117 18.9% 0.84% 0.46% 0.86% CRE: Non‐Owner Occupied 5,775 26.4% 0.26% 0.03% 0.41% CRE: Owner Occupied 3,071 14.1% 0.73% 0.19% 0.77% Home
Slide 15: Credit Metrics Over Time
Credit Metrics Over Time NCO / Avg. Loans NPL / Total Loans 15 Source: SNL Financial 2018Y FNB Credit Quality Has Remained Consistently Stable Post Financial Crisis (%) (%) 2018Y
Slide 16: FNB Credit Performed Well During the Financial Crisis
Cumulative NCOs From 2008 to 2012 Over 2007 Gross Loans (1) (%) Source: SNL Financial Note: 1. Cumulative NCOs represent net charge-offs from 2008, 2009, 2010, 2011 and 2012 divide by gross loans at 12/31/2007 16 FNB Credit Performed Well During the Financial Crisis… Peer Median : 6.2%
Slide 17: 2018 Stress Test: Capital Ratio Results Summary
2018 Stress Test: Capital Ratio Results Summary Notes: Minimum ratio shows the lowest quarter-end ratio of the 9-quarter horizon through 3/31/2020 17 …And Performs Strongly Under Stress Testing All severely adverse stressed ratios remain above the regulatory well-capitalized levels Source: Company I
Slide 18: Tight Alignment Across the Organization to Identify and Manage Key Risks
Tight Alignment Across the Organization to Identify and Manage Key Risks 18 FNB’s Risk Management Framework Highlights Board of Directors Risk Committee Nominating & Corp. Governance Committee Executive Committee Compensation Committee Audit Committee Risk Management Council Chief Risk Officer Inter
Slide 19: Deposit Composition
Deposit Composition Total Deposit ($Bn) 19 6.1 6.4 6.6 7.3 9.1 10.2 11.4 12.6 16.1 22.4 23.5 Source: SNL Financial, Company Fillings 15% CAGR 2008 2018 % Change NIB 15% 26% +11% Time Deposits 38% 23% (15%) Strong Deposit Growth With Improving NIB Demand Over Time 201 73 47 30 27 26 27 35 66 137 99 C
Slide 20: FNB Historical Capital Ratios
Leverage Ratio CET 1 Ratio Tier 1 Ratio Total Risk Based Capital Ratio 20 FNB Historical Capital Ratios FNB Has Maintained Consistent Capital Levels with Lower Risk Balance Sheet Over the Last Decade Q3’18 Q3’18 Q3’18 Q3’18 Source: SNL Financial, Company Fillings
Slide 21: Strong Liquidity Profile
Loans / Total Deposits (%) Cash & Securities / Total Assets (%) 21 Strong Liquidity Profile Source: SNL Financial Notes: 3Q’18 metrics used for peers where full-year 2018 data unavailable Peers include ASB, CBSH, CMA, CFR, EWBC, FHN, FRC, HWC, ISBC, NYCB, PBCT, PB, SNV, TCF, UMPQ, VLY, WBS, WTFC, an
Slide 22: Highly Rated $6.5 Billion Investment Portfolio
22 Highly Rated $6.5 Billion Investment Portfolio September 30, 2018 98% of total portfolio rated AA or better Relatively low duration of 4.6 Municipal bond portfolio Highly rated with an average rating of AA and 100% of the portfolio rated A or better General obligation bonds = 100% of municipal po
Slide 23: Interest Rate Risk
FNB Immediate Interest Rate Effect on Net Interest Income (+200bps) (%) Interest Rate Risk on Net Interest Income vs. Peers (+200bps) (%) Source: SNL Financial, as of September 30, 2018 Notes: For NYCB, ISBC CBSH, CFR, SNV, WBS, CMA, WTFC, impact on NII represents gradual impact; for all others, imp
Slide 24: Credit Rating Summary
24 Credit Rating Summary Source: Company Information, SNL Financial
Slide 25: Conclusion
Strong core franchise in attractive markets well-positioned for growth Demonstrated peer-leading financial performance Experienced, well-regarded management team Robust risk management driven culture Credit discipline resulting in strong and stable asset quality Solid liquidity position with multipl
Slide 26: Appendix
Appendix 26
Slide 27: Appendix Non-GAAP to GAAP Reconciliation
Appendix 27 Non-GAAP to GAAP Reconciliation
Slide 28: Appendix Non-GAAP to GAAP Reconciliation
Appendix 28 Non-GAAP to GAAP Reconciliation
Slide 29: Appendix Non-GAAP to GAAP Reconciliation
Appendix 29 Non-GAAP to GAAP Reconciliation
Slide 30: Appendix Non-GAAP to GAAP Reconciliation
Appendix 30 Non-GAAP to GAAP Reconciliation
Slide 31: Appendix Non-GAAP to GAAP Reconciliation
Appendix 31 Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in millions except per share amounts 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 Tangible book value per common share (at period-end) Total stockholders' equity $ 4,608 $ 4,525 $ 4,473 $ 4,433 $ 4,409 Less: preferred stockhold
Slide 32: Appendix Non-GAAP to GAAP Reconciliation
Appendix 32 Non-GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 Components of net interest income Net interest income $ 232,242 $ 234,787 $ 239,355 $ 226,105 $ 230,036 Net interest margin (FTE)(1) 3.29% 3.36% 3.51% 3.39% 3.49% Increm