F.n.b. Corporation · NYSE:FNB
F.n.b — BMO Capital Markets – Pittsburgh, PA (August 2013)
46 slides from F.n.b's conference presentation, Aug 20, 2013
Slide 1: F.N.B. Corporation Investor Presentation
Exhibit 99.1 F.N.B. Corporation Investor Presentation BMO Capital Markets – Pittsburgh, PA August 20, 2013
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: Important Information About the Pending Mergers
Important Information About the Pending Mergers Merger of F.N.B. and PVF Capital. In connection with the pending merger between F.N.B. and PVF Capital Corp., a definitive proxy statement of PVF Capital and prospectus of F.N.B. will be filed with the SEC. SHAREHOLDERS OF PVF CAPITAL CORP. ARE URGED T
Slide 4: F.N.B. Corporation
F.N.B. Corporation Key Investment Considerations About F.N.B. Corporation Experienced Leadership Team Reposition and Reinvest Strategy Drives Growth Strong Operating Trends 4
Slide 5: Key Investment Considerations
Key Investment Considerations KEYINVESTMENT CONSIDERATIONS – DifferentiatingFactors Consistent Strategy Focused on Long-Term Perspective Achieved organic growth throughout the recent economic cycle, largely driven by growth in loans and low-cost deposits Consistent and high-quality operating results
Slide 6: About F.N.B. Corporation
About F.N.B. Corporation • Assets:$14.0 billion(1) • Loans:$9.5 billion (1) Fourth Largest • Deposits:$11.6 billion (1) Pennsylvania-Based Bank • Banking locations:286 (1) • Consumer finance locations:72 • Attractive and expanding footprint: PA/OH/MD/WV: Banking locations span 56 counties and four s
Slide 7: Experienced Leadership Team
Experienced Leadership Team Experienced and respected executive management team Years of Banking Experience Joined FNB Prior Experience President and CEO Vincent J. Delie, Jr. 26 2005 National City President, First National Bank John C. Williams, Jr. 42 2008 Huntington National City Mellon Bank Chie
Slide 8: Reposition and Reinvest Strategy
Reposition and Reinvest Strategy Strategic Focus Drives Long-Term Growth and Performance Actions Results Talent Management Proven ability to attract talent Geographic Segmentation Consistent, strong operating results Revenue growth Sales Management/Cross-Sell Consistent organic loan growth Product D
Slide 9: Reposition and Reinvest – Actions Drive Long-Term Performance
Reposition and Reinvest – Actions Drive Long-Term Performance 2009 2010 2011 2012 2013 YTD PEOPLE Talent Management Strengthened team through key Attract, retain, develop best talent hires; Continuous team development th th Geographic Segmentation Regional Created 5 & 6 Regional model Realignment Re
Slide 10: Strong Operating Trends Outperform Peers
Strong Operating Trends Outperform Peers (1) ROTE Efficiency Ratio 70.0% 20.00% 65.0% 18.77% 18.00% 17.46% 17.33% 16.00% 60.7% 60.0% 16.32% 59.7% 59.8% 58.6% 14.00% 57.7% 14.71% 55.0% 12.00% 50.0% 10.00% 8.00% 45.0% 6.00% 40.0% 4.00% 35.0% 2.00% 0.00% 30.0% 2010 2011 2012 1Q13 2Q13 2010 2011 2012 1Q
Slide 11: Relationship-Based Focus Drives Consistent Organic Growth
Relationship-Based Focus Drives Consistent Organic Growth (1) Commercial Loan Portfolio CAGR (%) $4.7 $5.0 Organic 9% Total 16% $3.8 $3.9 $4.4 $4.0 $4.5 “What Gets Measured Gets Done” $4.0 $3.2 $3.2 $3.5 $3.5 A cross-functional, disciplined sales $3.0 management process drives loan growth $2.5 and g
Slide 12: Market Position
Market Position Top Overall and MSA Market Position Regional Alignment Presence in Major Markets Significant Commercial Prospects 12
Slide 13: FNB Banking Footprint - Regional Alignment
FNB Banking Footprint - Regional Alignment Top 30 MSA Presence MSA Population Cleveland MSA Baltimore, 2.7 million FNB MD #20 MSA Northwest Region FNB Pittsburgh, 2.4 million Cleveland Region PA #22 MSA FNB Capital Region Cleveland, 2.1 million PVFC Acquisition OH #28 MSA Expected FNB FNB Central Re
Slide 14: Top Overall Market Position
Top Overall Market Position FNBholdsthe #3overallretailmarketpositionforPennsylvania countiesof operationand#6positionforallcounties FNB Pennsylvania Counties of Operation FNB All Counties of Operation Total Total Total Market Market Total Market Market Branch Deposits Share Branch Deposits Share Ra
Slide 15: MSA Market Share - Proven Success, Opportunity For Growth
MSA Market Share - Proven Success, Opportunity For Growth Established MSA MarketsProven – Success, Leading Share Position Achieved Pittsburgh, PA MSA All Other FNB MSA's (excludes Pittsburgh, Baltimore, Cleveland) Total Deposits Market Total Deposits Market Rank Institution ($ 000's) Share (%) Rank
Slide 16: Unique #3 Position in a Major Market
Unique #3 Position in a Major Market Population Top 3 Banks in MSA by Deposit Market Share Rank MSA (000's) #1 #2 #3 (1) 1 New York 18,897 JPM BofA Citi 2 Los Angeles 12,829 BofA Wells Fargo Mitsubishi UFJ FNB is uniquely 3 Chicago 9,461 JPM BMO BofA 4 Dallas 6,372 BofA JPM Wells Fargo positioned as
Slide 17: Significant Commercial Prospects
Significant Commercial Prospects Significant Commercial Prospects Concentrated in Pittsburgh, Baltimore & Cleveland Opportunity to Leverage Core Competency and Drive Sustained Organic Growth Strong Concentration of Commercial Prospects (1) Over 175,000 Total Businesses 65,169 59,240 52,149 12,851 13
Slide 18: Acquisition Strategy
Acquisition Strategy Disciplined and Consistent Strategy Significant Expansion Enhanced Organic Growth Prospects 18
Slide 19: Acquisition Strategy
Acquisition Strategy Disciplined and Consistent Acquisition Strategy Strategy Disciplined identification and focus on markets that offer potential to leverage core competencies and growth opportunities Criteria Create shareholder value Meet strategic vision Execution Fit culturally Evaluation Strate
Slide 20: Significant Acquisition-Related Expansion
Significant Acquisition-Related Expansion Pre-2002 Pittsburgh Additional Cleveland MSA Maryland Acquisition- Presence MSA Acquisition Expansion Acquisition-Related Expansion Expansion Related Expansion Cleveland MSA th NY 12 bank acquisition since 2002 announced Erie PA June 14, 2013 (BCSB) Scranton
Slide 21: M&A Strategic Update – Progressing as Planned
M&A Strategic Update – Progressing as Planned Significant Progress Replicating Proven Success in Pittsburgh MSA to Expansion Markets of Baltimore MSA (ANNB And BCSB Acquisitions) and Cleveland MSA (PVFC Acquisition) Pittsburgh Baltimore Cleveland Strategies MSA MSA MSA Markets with considerable Comm
Slide 22: Expanded Franchise = Enhanced Organic Growth Prospects
Expanded Franchise = Enhanced Organic Growth Prospects FNB Branches FNB Counties of Operation Acquisition- Related Expansion in Higher Growth Markets FNB Markets' Population FNB Markets Households Enhances (MSA) (MSA) Organic Growth Opportunities Note: Market population and market businesses represe
Slide 23: Strong Operating Results
Strong Operating Results 2Q13 Highlights and Trends 23
Slide 24: 2Q13 Operating Results
2Q13 Operating Results 2Q13 Operating Highlights Strong Operating Results Consistent high-quality earnings Operating net income(1) $30.1 million High-quality earnings with provision for loan losses (1) exceeding net charge-off levels Operating diluted EPS $0.21 Year-to-date operating leverage achiev
Slide 25: 2Q13 Operating Highlights – Quarterly Trends
2Q13 Operating Highlights – Quarterly Trends Prior Current Prior Year Quarterly Trends 2Q13 1Q13 2Q12 Prior-year quarter benefited from higher accretable yield of $1.7 million (net of tax) or $0.01 per diluted Operating Net income $30,094 $28,767 $29,336 share Earnings (1) Accretable yield benefit i
Slide 26: Balance Sheet Highlights
Balance Sheet Highlights Reported Organic 2Q13 Growth(1) Growth(2) Average Balances, $ in Millions Balance $ $ % 2Q13 Highlights Continued strong organic growth in Securities $2,296 $41.8 - - loans and transaction deposits and customer repurchase agreements Total loans $8,530 $373.5 $114.6 5.6% Orga
Slide 27: Net Interest Margin Trends
Net Interest Margin Trends Net Interest Margin Trends 27
Slide 28: Asset Quality Results
Asset Quality Results(1) $ in Thousands 2Q13 1Q13 2Q12 2Q13 Highlights Solid performance with demonstrated stability compared to the prior quarter and improvement NPL’s+OREO/Total loans+OREO 1.59% 1.59% 1.93% compared to the prior year 2Q13 provision for loan losses of $7.9 million Total delinquency
Slide 29: Asset Quality Trends
Asset Quality Trends Asset Quality Trends Compare Favorably to Peer Results NPL’s+OREO/ NCO’s on Originated Loans/ Total Originated Loans+OREO (1)(2) Total Originated Loans (1)(3) Peerdata per SNLFinancial, refer to Appendixfor peerlisting;(1)Metrics shown are originatedportfolio. “Originatedportfol
Slide 30: Capital Position
Capital Position Capital Position as of June 30, 2013 March 31, 2013 June 30, 2013 14.0% 12.3% 12.0% 12.0% 10.7% 10.4% 10.0% 8.4% 8.3% 8.0% 6.2% 6.1% 6.0% 4.0% 2.0% 0.0% Total Risk-Based Tier One Leverage Tangible Common Equity 2Q13 Capital Level Drivers Capital levels at June 30, 2013 reflect initi
Slide 31: Investment Thesis
Investment Thesis Long-Term Investment Thesis 31
Slide 32: Long-Term Investment Thesis - Return Focused
Long-Term Investment Thesis - Return Focused FNB’s long-term investment thesis reflects a commitment to efficient capital management and creating value for our shareholders Long-Term Investment Thesis Targeted EPS Growth 5-6% Targeted Dividend Yield 4-6% (Targeted Payout Ratio 60-70%) Implied Total
Slide 33: Upper Quartile Performance Presents Valuation Upside
Upper Quartile Performance Presents Valuation Upside 2Q13 Performance Relative Valuation/Total Return Assets EfficiencyNet Charge-Net Interest Price/ 2014E Dividend Total Return ($ billions) ROTCE (%) Ratio (%) Offs (%) Margin (%) Price/TBV (x) EPS (x) Yield (%) 3 Yr (%) Peer Median Results Regional
Slide 34: Deliver Consistent Operating Results
Deliver Consistent Operating Results FNB’s ability to deliver consistent operating results exceeds peer results FNBandPeerVolatility(StandardDeviation1Q10– 2Q13) ROAA Volatility Revenue/Avg Assets Volatility 0.25% 0.050% 0.045% 0.20% 0.040% 0.035% 0.15% 0.030% 0.025% 0.10% 0.020% 0.015% 0.05% 0.010%
Slide 35: Consistent Price/TBV Trends
Consistent Price/TBV Trends premiumto peersbasedonpriceto tangiblebookvalueper share(1) Consistent (1) Market data per SNL Financial as of August 15, 2013. Refer to Supplemental Information for regional peer listing. Top 100 represents the top 100 U.S. banks and thrifts by total assets as of 6/30/20
Slide 36: Supplemental Information
Supplemental Information 36
Slide 37: Supplemental Information Index
Supplemental Information Index Diversified Loan Portfolio Deposits and Customer Repurchase Agreements Investment Portfolio Loan Risk Profile Marcellus and Utica Shale Exposure Regency Finance Company Profile Regional Peer Group Listing GAAP to Non-GAAP Reconciliation Second Quarter 2013 Earnings Rel
Slide 38: Diversified Loan Portfolio
Diversified Loan Portfolio 6/30/2013 CAGR % of Portfolio ($ in millions) 12/08- $8.6 Billion Loan Portfolio Balance 12/31/08 6/30/13 June 30, 2013 6/30/13 Other 2% C&I $1,751 12.4% 16% 20% Indirect 7% Regency 2% Florida 0% CRE: Non-Owner Occupied 1,347 7.8% 17% 17% Residential Commercial Mortgage 12
Slide 39: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 6/30/2013 CAGR Mix % $10.4 Billion Deposits and ($ in millions) 12/08- Customer Repo Agreements Balance 6/13 12/31/08 6/30/13 June 30, 2013 Savings, NOW, MMDA $4,975 13.5% 44% 48% Time Deposits 2,428 1.0% 36% 23% Non-Interest Bearing 1,974 18.5% 14% 19% No
Slide 40: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $2.3 Billion Investment Portfolio ($ in millions(1)) Portfolio Investment % June 30, 2013 Agency MBS $865 37% AAA 100% Ratings Composition CMO Agency 834 36% AAA 100% Agency Senior Notes 400 17% AAA 100% AAA 2% AA 50% Municipals 159 7% A 47% BBB 1% BBB 5%
Slide 41: Loan Risk Profile
Loan Risk Profile Balance YTD Net Charge- Total Past (1) (1) (1) $ in millions 6/30/2013 % of Loans NPL's/Loans Offs/Loans Due/Loans Commercial and Industrial $1,751 20.3% 0.50% 0.18% 0.75% CRE: Non-Owner Occupied 1,470 17.0% 1.17% 0.37% 1.34% CRE: Owner Occupied 1,347 15.6% 1.96% 0.11% 2.25% Home E
Slide 42: Marcellus and Utica Shale Exposure
Marcellus and Utica Shale Exposure FNB is well-positioned in the Marcellus Shale and Utica (1) 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 Pen
Slide 43: Marcellus and Utica Shale FNB Strategic Focus
Marcellus and Utica Shale FNB Strategic Focus 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 g
Slide 44: Regency Finance Company Profile
Regency Finance Company Profile Consumerfinancebusinesswith over 80 yearsof consumerlendingexperience Credit quality: 2013 YTD net charge-offs to average loans of 3.73% Returns: 2Q13 : ROA 3.75%, ROE 40.29%, ROTE 45.30% Regency Finance Company $172 Million Loan Portfolio Pennsylvania 14% Ohio 26% 60
Slide 45: Regional Peer Group Listing
Regional Peer Group Listing Ticker Institution Ticker Institution ASBC Associated Bancorp ONB Old National Bancorp AF Astoria Financial Corporation PVTB Private Bancorp, Inc. CBSH Commerce Bancshares, Inc. SUSQ Susquehanna Bancshares, Inc. FMER First Merit Corp. UMBF UMB Financial Corp. FULT Fulton
Slide 46: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating: Earnings, Return on Avg Tangible Equity, Return on Avg Tangible Assets For the Quarter Ended Year Ended December 31, June 30, 2013 March 31, 2013 June 30, 2012 2012 2011 2010 Operating net income Net income $29,192 $28,538 $29,130 $110,410 $87,047 $74,652 A
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