F.n.b. Corporation · NYSE:FNB
F.n.b — 2007 FBR Capital Markets Investor Conference
41 slides from F.n.b's conference presentation, Nov 28, 2007
Slide 1: F.N.B. Corporation 2007 FBR Capital Markets Investor Conference
F.N.B. CORPORATION 2007 FBR CAPITAL MARKETS INVESTOR CONFERENCE NEW YORK CITY NOVEMBER 27-28, 2007 WELCOME
Slide 2: Disclosures: Forward-Looking Statements
DISCLOSURES FORWARD-LOOKING STATEMENTS Certain statements in this presentation, including, without limitation, statements as to the impact of the merger, statements as to F.N.B.'s, Omega's, or their respective management's beliefs, expectations or opinions, and all other statements in this press rel
Slide 3: Agenda
AGENDA COMPANY PROFILE BUSINESS STRATEGY FINANCIALS INVESTMENT THESIS
Slide 4: Company Profile
COMPANY PROFILE
Slide 5: Background
HEADQUARTERS: HERMITAGE, PA. CHARTERED 143 YEARS AGO $6.1 BILLION TOTAL ASSETS NYSE: FNB $1.0 BILLION MARKET CAP 42.0% INSTITUTIONAL OWNERSHIP 6.7% INSIDER & EMPLOYEE OWNERSHIP 10 YEAR TOTAL SHAREHOLDER RETURN: 195% for the 10 years thru 12/31/06 BACKGROUND
Slide 6: Board Leadership
BOARD LEADERSHIP ELEVEN INDEPENDENT DIRECTORS FIVE FORMER FINANCIAL SERVICES EXECUTIVES THREE INVOLVED AS FINANCIAL SERVICES INVESTORS MONTHLY BOARD MEETINGS
Slide 7: Experienced Management
EXPERIENCED MANAGEMENT NAME POSITION AGE BANKING EXPERIENCE STEPHEN GURGOVITS PRES. & CEO 64 46 BRIAN LILLY CFO 49 28 GARY ROBERTS BANK CEO 58 41 GARY GUERRIERI CHIEF CREDIT 47 22
Slide 8: Business Lines
BUSINESS LINES BANKING WEALTH MANAGEMENT INSURANCE CONSUMER FINANCE MERCHANT BANKING
Slide 9: Banking Footprint
BANKING FOOTPRINT Legend: FNB / PA Branches OMEF Branches (pending acquisition) Overlap of FNB and OMEF (pending acquisition) Hermitage, PA State College, PA
Slide 10: Loan Mix
LOAN MIX 2001 2002 2003 2004 2005 2006 2007 Proforma OMEF COMMERCIAL 1251.7 1286.4 1297.559 1440.674 1614.96 2111.752 2234.236 2953.122 DIRECT INSTALLMENT 557 527 776.716 820.886 890.288 926.766 948.986 948.986 CONSUMER LINES OF CREDIT 152.9 206 229.005 251.037 262.969 254.054 245.627 458.547 RESIDE
Slide 11: Loan Production Offices
LOAN PRODUCTION OFFICES Orlando Tampa Sarasota Ft. Myers Naples CONCENTRATE ON COMMERCIAL CUSTOMERS KNOW THE MARKETS WELL EXPERIENCED MANAGEMENT TEAM MAINTAIN COMPANY'S STRICT CREDIT DISCIPLINE
Slide 12: Profile of Florida LPOs
PROFILE OF FLORIDA LPOs TOTAL COMMITMENTS $331 MILLION TOTAL OUTSTANDINGS $253 MILLION 6% OF F.N.B. CORPORATION'S LOANS 60% WEIGHTED AVERAGE LOAN TO VALUE; MANY WITH PERSONAL GUARANTEES BALANCES BY LOAN TYPE: % OF FLORIDA OUTSTANDINGS LAND ACQUISITION AND DEVELOPMENT 13% VACANT LAND - RESIDENTIAL 27
Slide 13: Increasing Deposit Funding
2003 2004 2005 2006 Q107 2007 Deposits and Cust. Treas. Mgmt. 3520954 3758934 4194460 4624906 4648826 4738340 Total Borrowings 607464 741602 730164 631736 611136 630723 Trust Preferred 128866 128866 128866 151031 151031 151031 INCREASING DEPOSIT FUNDING As of September 30, 2007 TOTAL BORROWINGS TRUS
Slide 14: Wealth Management
WEALTH MANAGEMENT FIRST NATIONAL TRUST COMPANY OVER 70 YEARS MANAGING WEALTH $1.8 BILLION UNDER MANAGEMENT RETAIL INVESTMENTS DISCOUNT BROKERAGE ANNUITIES MUTUAL FUNDS STRONG PERFORMANCE STAND ALONE ROE 52.2%, YTD
Slide 15: Insurance
INSURANCE PROPERTY, CASUALTY AND EMPLOYEE BENEFITS 7 OFFICES 75% COMMERCIAL, ACTIVELY PROVIDES CLIENTS WITH INSURANCE AND RISK MANAGEMENT SERVICES REVENUE - 3 YEAR CAGR OF 17%
Slide 16: Regency Finance Co. Consumer Finance
REGENCY FINANCE CO. 80 YRS. CONSUMER LENDING EXPERIENCE 55 OFFICES HIGH PERFORMING AFFILIATE : 3.5% ROA 37.1% ROE CONSUMER FINANCE As of September 30, 2007 Ohio Pennsylvania Tennessee
Slide 17: Merchant Banking
MERCHANT BANKING F.N.B. CAPITAL CORP. STARTED FOURTH QUARTER 2005 COMMERCIAL FINANCE, CAPITAL INVESTMENT MET 2006 TARGET 2007 TARGET OF $6 MILLION
Slide 18: Business Strategy
ENB Corporation BUSINESS STRATEGY
Slide 19: Strategy
STRATEGY MANAGE TRADITIONAL FOOTPRINT FOR PROFITABILITY AND CAPITAL EFFICIENCY UNDERTAKE SENSIBLE GROWTH OPPORTUNITIES RETURN EXCESS CAPITAL TO SHAREHOLDERS
Slide 20: Opportunistic Expansion
OPPORTUNISTIC EXPANSION SUPPLEMENT MODEST GROWTH FILL-IN ACQUISITIONS PITTSBURGH MSA EAST / CENTRAL PENNSYLVANIA ACCRETIVE TO EARNINGS & CAPITAL LOAN PRODUCTION OFFICES IN FLORIDA
Slide 21: Omega Financial: Compelling Transaction
OMEGA FINANCIAL: COMPELLING TRANSACTION
Slide 22: Financials
FINANCIALS
Slide 23: Third Quarter Year-Over-Year Results
THIRD QUARTER YEAR-OVER-YEAR RESULTS SMALL CAP SUMMARY (1) F.N.B. CORPORATION EPS COMPARED TO FIRSTCALL ESTIMATES: 72 of 118 Missed In-line EARNINGS PER SHARE: Decreased 7% Comparable NET INTEREST MARGIN: Narrowed 12 bps Maintained NPA RATIO: Worsened 21 bps Improved 12 bps (1) - Keefe Bruyette and
Slide 24: High Performing Results
HIGH PERFORMING RESULTS See Appendix for Reconciliation of FNB's Core Earnings and listing of Regional Peer Group
Slide 25: Growth in Revenue
GROWTH IN REVENUE 2001 2002 2003 2004 2005 2006 Annl'zd 9 Mo.-06 Annl'zd 9 Mo.-07 Net Int Inc. (FTE) 182.73 172.505 172.5 190.2 192.8 192.231 198.041 Noninterest Revenue 64.75 65.67 67.48 73.068 78.4 78.996 82.157 Total Revenue $ IN MILLIONS See Appendix for Reconciliation of FNB's Core Revenue
Slide 26: Efficiency Ratio
EFFICIENCY RATIO 2001 2002 2003 2004 2005 2006 9 Mo.-06 9 Mo.-07 FNB 0.642 0.584 0.6031 0.5678 0.5649 0.5723 0.5843 0.5807 Regional Peers 0.5543 0.5839 0.5769 0.5761 0.5712 0.6070000013148 EFFICIENCY IS SUPERIOR TO REGIONAL PEER GROUP See Appendix for listing of FNB's Regional Peer Group
Slide 27: Low Risk Profile: Net Charge-offs and Reserves
LOW RISK PROFILE As of September 30, 2007 Net Charge-offs 2001 2002 2003 2004 2005 2006 Q1-07 2007 Bank 0.0025 0.0039 0.003 0.0027 0.0016 0.0013 0.0016 Regency 0.0016 0.0017 0.002 0.0019 0.0013 0.001 0.0011 REDUCED NET CHARGE-OFFS ALL % NPLS 2001 2002 2003 2004 2005 2006 Q1-07 2007 1.638 1.576 1.530
Slide 28: Low Risk Profile: Interest Rate Risk
LOW RISK PROFILE 2002 2003 2004 2005 2006 Q1-07 Q2-07 Q3-07 1.14 0.91 1.03 1.05 0.97 0.9 0.93 0.99 RATE SENSITIVITY CHG. IN NET INTEREST INCOME +100bp ..........(0.3%) - -100bp .......... +0.6% As of September 30, 2007 INTEREST RATE RISK 1 YEAR RSA / RSL
Slide 29: Well Capitalized
Total Risk-Based Tier One Leverage 0.114 0.099 0.074 WELL CAPITALIZED As of September 30, 2007 Well Capitalized Requirements
Slide 30: Value Creation Targets
VALUE CREATION TARGETS EPS GROWTH 5-6% DIVIDEND YIELD PAYOUT RATIO 65-75% 4-6% = SHAREHOLDER RETURN 9-12%
Slide 31: Favorable Comparison
FAVORABLE COMPARISON As of November 13, 2007 One-Year Price Return Annual Dividend Yield Total Return to Shareholders F.N.B. Corporation (7.8%) 5.9% (1.9%) Regional Peers (12) (21.6%) 5.0% (16.6%) National Peers (60) (18.3%) 3.0% (15.3%)
Slide 32: Shareholder Dividends
SHAREHOLDER DIVIDENDS 35 CONSECUTIVE YEARS INCREASED DIVIDENDS FNB
Slide 33: Investment Thesis
INVESTMENT THESIS
Slide 34: Creating Value
CREATING VALUE EXPERIENCED LEADERSHIP DIVERSE REVENUE SOURCES HIGH PERFORMING RESULTS LOW RISK PROFILE SENSIBLE EXPANSION STRATEGY SUSTAINABLE, HIGH CASH DIVIDEND PAYOUT
Slide 35: Thank You
THANK YOU
Slide 36: Appendix
¥ z ENB Corporation APPENDIX
Slide 37: Regency Finance Loan Portfolio
SALES FINANCE DIRECT LOANS REAL ESTATE 0.1 0.53 0.37 REGENCY FINANCE LOAN PORTFOLIO TOTAL LOANS - $146.3 MILLION 86% OF REAL ESTATE LOANS ARE FIRST MORTGAGES 10% 37% 53% As of September 30, 2007
Slide 38: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (DOLLARS IN THOUSANDS)
Slide 39: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (DOLLARS IN THOUSANDS)
Slide 40: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (DOLLARS IN THOUSANDS)
Slide 41: Regional Peer Group
Company Citizens Republic Bancorp, Inc. First Commonwealth Financial Corporation First Financial Bancorp. FirstMerit Corporation Fulton Financial Corporation Harleysville National Corporation National Pennsylvania Banc. Park National Corporation S&T Bancorp, Inc. Susquehanna Bancshares, Inc. United