Slide 1: F.N.B. Corporation Earnings Presentation Fourth Quarter 2023
F.N.B. Corporation Earnings Presentation Fourth Quarter 2023 January 19, 2024
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 Fourth Quarter 2023 Highlights ❖ Earnings per diluted common share of $0.13 and operating (1) (non-GAAP) earnings per diluted common share of $0.38. o Full year 2023 earnings per diluted common share of $1.31 and record operating(1) (non-GAAP) earnings per diluted common share o
Slide 5: Strong Financial Performance
Strong Financial Performance Strong Profitability Metrics Quarter Ended 12/31/2023 4Q23 YoY Average Balances Growth 6.3% 17.1% 52.5% Reported Operating Efficiency ROATCE(1) ROATCE(1) Ratio(1)(2) 10% 1% Total Loans Total Deposits 0.5% 1.3% 3.21% 93.1% Reported Operating Net Interest Loan-to-Deposit R
Slide 6: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights 4Q23 3Q23 4Q22 2023 2022 Net income available to common stockholders (millions) $48.7 $143.3 $137.5 $476.8 $431.1 Reported Earnings per diluted common share $0.13 $0.40 $0.38 $1.31 $1.22 Results Book value per common share $16.56 $16.13 $15.39 Operating net income
Slide 7: Strong Capital Position
Strong Capital Position FNB maintains capital ratios that are stronger than peer medians while demonstrating a more conservative credit culture. TCE Ratio CET1 Ratio 7.8% (2) (3) 10.8% (2) (1) 7.5% 10.1% 10.2% 7.3% 9.6% (1) 7.0% 9.4% 6.7% 9.0% 8.9% 6.3% 8.3% 7.9% FNB FNB Peer Median FNB FNB Peer Med
Slide 8: Asset Quality
Asset Quality $ in millions, unless otherwise stated 4Q23 3Q23 4Q22 4Q23 Highlights o Year-end credit quality ended Delinquency 0.70% 0.63% 0.71% at solid levels across all portfolios. NPLs+OREO/Total loans and leases + OREO 0.34% 0.36% 0.39% o Provision expense provided for loan growth and net char
Slide 9: Asset Quality Ratios
Asset Quality Ratios Asset quality metrics remain near historical lows and FNB will continue to manage risk proactively and aggressively as part of our core credit philosophy. NCO’s (Annualized) to Average Loans NPL’s and OREO to Loans and OREO 0.47% 0.47% 0.39% 0.38% 0.36% 0.34% 0.16% 0.18% 0.11% 0
Slide 10: Loan Portfolio Mix
Loan Portfolio Mix Highly diversified, commercial-focused loan portfolio. Loan Portfolio (as of December 31, 2023) C&I Owner CRE 22% 11% Other 1% Equip Finance/Commercial Leasing Group 3% Indirect Non-Owner CRE 4% 27% HELOC 4% Home Equity 8% Residential Mortgage 20% Total Loan Portfolio: $32.3 billi
Slide 11: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE Portfolio(1) CRE - Office Loan Statistics Retail as of December 31, 2023 19.8% ❖ Long history of working with well-established sponsors with a Office focus on strong global cash flows. Other ❖ The top 25 loans average $31 million in exposure. 6
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 4Q23 3Q23 4Q22 QoQ ∆(1) YoY ∆ 4Q23 Highlights o Total securities ended the Securities $7,096 $7,098 $7,273 (0.0%) (2.4%) quarter with duration of 4.2 years and AFS comprising 45% of the portfolio. Total Loans 32,268 31,740 29,361 1.7% 9.9% o Total aver
Slide 13: Deposit Composition
Deposit Composition FNB Maintains a Favorable Deposit Mix. Total Deposits(1) (2009 – 2023) ($ amount in billions) 2009 4Q23 Δ $34.8 $34.7 NIB Deposits 16% 29% +13% $31.7 $29.1 Time Deposits 35% 18% -17% 29% 34% $24.8 34% $23.5 $22.4 31% 26% 26% 26% $16.1 53% $12.6 26% $11.4 56% $10.2 55% 56% 57% $9.
Slide 14: 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 as of December 31, 2023 as of December 31, 2023 Private Consumer Banking 4% 41% ❖ $34.7 billion in total deposits with a continued strategic
Slide 15: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 4Q23 3Q23 4Q22 QoQ Δ(2) YoY Δ 4Q23 Highlights Total interest income $531,587 $513,361 $407,882 3.6% 30.3% o Yield increase in average earning assets is a result of higher yields of 13 basis points Total interest expense 207,562 186,780 72,99
Slide 16: Balance Sheet Repricing
Balance Sheet Repricing Cumulative Total Deposit Betas Loan Repricing Frequency 18,000,000 as of December 31, 2023 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 16,000,000 47.0% Fed Funds Rate 4.50% 5.00% 5.25% 5.50% 5.50% Other Other Cumulative Deposit Beta 16.6% 21.8% 26.6% 31.0% 34.3% 14,000,000 39.1
Slide 17: Non-Interest Income
Non-Interest Income $ in thousands, unless otherwise stated 4Q23 3Q23 4Q22 QoQ Δ(2) YoY Δ 4Q23 Highlights Service charges $19,849 $21,245 $22,519 (6.6%) (11.9%) o Reported non-interest income reflected the $67.4 million Interchange and card transaction fees 13,333 13,521 13,017 (1.4%) 2.4% realized
Slide 18: Non-Interest Expense
Non-Interest Expense $ in thousands, unless otherwise stated 4Q23 3Q23 4Q22 QoQ Δ(1)(2) YoY Δ(5) 4Q23 Highlights o Reported non-interest Salaries and employee benefits $114,133 $113,351 $103,558 0.7% 10.2% expense included the $29.9 million FDIC special Occupancy and equipment 42,571 41,573 36,794 2
Slide 19: 2024 Financial Objectives
2024 Financial Objectives 1Q24 Guidance FY 2024 Guidance Commentary Spot Loans Mid-single digit growth Balance Sheet(1) Spot Deposits Low-single digit growth Net Interest Income Assumes three 25-basis point interest rate $318-$328 million $1.295-$1.345 billion (non-FTE) cuts (May, July and November
Slide 20: 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 21: Non-GAAP to GAAP Reconciliation
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Slide 22: Non-GAAP to GAAP Reconciliation
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