F.n.b. Corporation · NYSE:FNB
F.n.b — Investor Presentation (November 2024)
52 slides from F.n.b's investor presentation, November 2024
Slide 1: F.N.B. Corporation Investor Presentation
F.N.B. Corporation Investor Presentation Fourth Quarter 2024 November 2024 1
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: Overview of FNB
Overview of FNB Company Snapshot Financial Highlights as of 9/30/24 ❖ Ticker: FNB (NYSE) Assets: 13.0% CAGR since 2009 $48.0 billion ❖ Founded in 1864 Loans: 13.3% CAGR since 2009 $33.7 billion ❖ Headquartered in Pittsburgh, PA ❖ Diverse market presence across 7 states Deposits: 13.3% CAGR since 200
Slide 5: Investor Highlights
Investor Highlights ✓ Diversified revenue streams through retail and commercial banking, capital markets, wealth management and insurance. Strong core franchise in ✓ Proven, sustainable business model driving long-term growth and performance. attractive markets o Disciplined sales culture focused on
Slide 6: Why FNB?
Why FNB? A Strong Franchise Proven Performance Sustainable Growth Nationally recognized as a Consistent credit underwriting Investments in digital Top Workplace USA and and thoughtful capital and technology and data national Culture Excellence liquidity management. infrastructure to better serve Awa
Slide 7: The Six Pillars of Our Long-Term Strategy
The Six Pillars of Our Long-Term Strategy FNB drives performance to further improve on long-term strategic planning metrics with an underlying focus on a consistent credit culture. Drive Organic Optimize the Build a Strong, Growth Retail Bank Differentiated Brand Maintain Build a Durable, Promote Co
Slide 8: FNB Continues to Serve All its Stakeholders
FNB Continues to Serve All its Stakeholders ❖ Expanded access to credit in low-to-moderate income ❖ Winner of more than 100 prestigious Greenwich Excellence communities with our new Special Purpose Credit Program. and Best Brand Awards since 2011 and named one of Time’s World’s Best Companies. ❖ Mad
Slide 9: Strong Financial Performance
Strong Financial Performance Solid Profitability Metrics 13.8% 1.11% 55.2% 3.08% Net Interest Quarter Ended September 30, 2024 Operating Operating Efficiency Ratio(1)(2) Margin(1)(2) ROATCE(1) ROATA(1) Significant Capital, Reserves & Liquidity 8.2% 10.4% 1.25% 156% as of September 30, 2024 TCE/TA(1)
Slide 10: Strong Capital Position
Strong Capital Position FNB’s capital levels reached all-time highs, providing ample flexibility to grow the balance sheet and optimize shareholder returns while appropriately managing risk. TCE Ratio(1) CET1 Ratio 8.2% 8.0% 10.4% 7.8% 7.9% 10.2% 10.2% 7.6% 10.0% 7.4% 9.8% 9.9% 9.8% 7.2% 7.2% 9.4% 2
Slide 11: Strategic Objective to Drive Diversified Fee Income Growth
Strategic Objective to Drive Diversified Fee Income Growth ❖ Our diversified business model continues to produce strong non-interest income performance. ❖ Priority to develop new products and capabilities within mortgage and capital markets, such as debt capital markets in recent years, has helped o
Slide 12: Expansion of Geographic Footprint
Expansion of Geographic Footprint Since the financial crisis, FNB has focused on growing its footprint across the Mid-Atlantic and Carolinas to high-growth MSAs such as Charlotte, DC, Baltimore, and Charleston. 2024 FNB Geographic Footprint FNB Growth Highlights 2009 3Q24 Δ Total Assets ($B): $8.7 $
Slide 13: Diverse Footprint with Strong Market Share
Diverse Footprint with Strong Market Share(1)(2) FNB’s market deposit CAGR is 14% over the last 6 years buoyed by our new markets. 1 6 Cleveland Winston-Salem 1 Population: 2.1 million Population: 685k # of 100k Bus(3): 134k # of 100k Bus: 39k Deposit Market Share Rank: 12 Deposit Market Share Rank:
Slide 14: FNB Wholesale Bank
FNB Wholesale Bank FNB Wholesale Banking Products and Services FNB offers a comprehensive suite of products and services to create value for our clients and grow a diversified stream of revenues. Corporate and Business Banking Investment Real Estate Builder Financing Asset-Based Lending Treasury Man
Slide 15: Evolution of FNB’s Digital Bank
Evolution of FNB’s Digital Bank FNB’s digital and data strategies improve customer experience and drive revenue growth. Key milestones of FNB’s digital and data strategies 2015-2016 2017-2019 2020 2021 2022 2023 Future Outlook • Click-to-Bricks strategy • Data Science Team • Redesigned website • Reb
Slide 16: Technology Evolution & Digital Trends
Technology Evolution & Digital Trends Significant opportunity to drive increased digital product adoption across our expanding client base. Omnichannel strategy Digital has been on the rise Expanding our online involves a robust ATM and growing rapidly capabilities network Increased digital presence
Slide 17: Online and Mobile Channels Continue to See Strong Adoption
Online and Mobile Channels Continue to See Strong Adoption Strong momentum in usage of digital tools and other non-branch delivery channels, along with tools to equip our teams to outperform. Online Banking Common Application(2) Active user base had continued QoQ increase in started loan 2% growth i
Slide 18: FNB’s Holistic Data Strategy
FNB’s Holistic Data Strategy Investments in data architecture lead to organic customer growth Acquire Consolidate Evaluate Deliver Delivery focuses on data science, visualization, and advanced analytics Data Enterprise Data Self-Service Data Warehouse Preparation Sources Casual User Internal Dynamic
Slide 19: Financial Highlights
Financial Highlights EN.B. Corporation 19
Slide 20: Third Quarter 2024 Highlights
Financial Highlights Third Quarter 2024 Highlights ❖ Earnings per diluted common share of $0.30 and operating earnings per diluted common share (1) of $0.34. ❖ Revenue growth of 2.3% linked-quarter was driven by record non-interest income of $90 million and stronger net interest income. o Non-intere
Slide 21: Third Quarter Financial Highlights
Third Quarter Financial Highlights 3Q24 2Q24 3Q23 Net income available to common stockholders (millions) $110.1 $123.0 $143.3 Reported Earnings per diluted common share $0.30 $0.34 $0.40 Results Book value per common share $17.38 $16.94 $16.13 Operating net income available to common stockholders $1
Slide 22: Asset Quality
Asset Quality $ in millions, unless otherwise stated 3Q24 2Q24 3Q23 3Q24 Highlights o Credit quality remains at solid Delinquency 0.79% 0.63% 0.63% levels across all portfolios. o NPLs+OREO ended the quarter at NPLs+OREO/Total loans and leases + OREO 0.39% 0.33% 0.36% 39 basis points, an increase of
Slide 23: Asset Quality Ratios
Asset Quality Ratios Asset quality metrics remain near historical lows and FNB will continue to manage risk proactively as part of our core credit philosophy. NCO’s (Annualized) to Average Loans NPL’s and OREO to Loans and OREO 0.47% 0.39% 0.36% 0.34% 0.33% 0.33% 0.25% 0.16% 0.10% 0.09% 0.07% 3Q23 4
Slide 24: FNB Corporation Historical Asset Quality
FNB Corporation Historical Asset Quality FNB Corporation Full-year NPL + OREO / FNB Corporation Full-year NCOs/ Loans Loans + OREO 1.15% Florida Exit Florida Exit 2.84% 2.74% 2.62% 0.77% 2.05% 0.60% 0.58% Regency Sale Regency Sale 1.42% 1.24% 0.35% 0.93% 0.97% 0.91% 0.29% 0.28% 0.28% 0.79% 0.26% 0.2
Slide 25: Loan Portfolio Mix
Loan Portfolio Mix Highly diversified, commercial-focused loan portfolio. Loan Portfolio (as of September 30, 2024) Owner-Occupied C&I 11% 21% Other 1% Equip Finance/Commercial Leasing Group 4% Non-Owner CRE Indirect 27% 2% HELOC 4% Home Equity 7% Residential Mortgage 23% Total Loan Portfolio: $33.7
Slide 26: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE Portfolio(1) CRE - Office Loan Statistics Retail as of September 30, 2024 20.5% ❖ Long history of working with well-established sponsors with a Office focus on strong global cash flows. Other 18.7% ❖ The top 25 loans average $23 million in expo
Slide 27: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio(1) NOO-CRE Loans1 to Capital NOO-CRE Loan Statistics 275% as of September 30, 2024 ❖ Strong diversification across property types and geographies. 250% ❖ No outsized risk to any one property. o Average loan size is $1 million. 225% o No single funded loan over $50 mi
Slide 28: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 3Q24 2Q24 3Q23 QoQ ∆(1) YoY ∆ 3Q24 Highlights Securities o Total securities duration $7,201 $7,188 $7,098 0.2% 1.5% decreased to 4.0 years with AFS comprising ~48% of the portfolio. Total Loans 33,803 33,256 31,740 1.6% 6.5% o FNB completed a $431 mill
Slide 29: Deposit Composition
Deposit Composition FNB Maintains a Favorable Deposit Mix. Total Period-End Deposits(1) (2009 – 3Q24) ($ amount in billions) $36.8 2009 3Q24 Δ $34.8 $34.7 $34.7 $35.0 NIB Deposits 16% 27% +11% $31.7 27% $29.1 Time Deposits 35% 21% -14% 29% 29% 29% 34% $24.8 34% $23.5 $22.4 31% 26% 26% 26% $16.1 52%
Slide 30: 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 Strategy as of September 30, 2024 ❖ Total insured/collateralized deposits comprise approximately 78% of Consumer total deposits. 40% o Highe
Slide 31: Stable and Granular Deposit Base
Stable and Granular Deposit Base Since year-end 2022, FNB achieved total deposit growth of nearly 6% while managing the total deposit mix and interest-bearing deposit costs. Change in Non-Interest-Bearing Deposit Cumulative Interest-Bearing Deposit Beta to Total Deposit Mix Since 1Q22 4Q22 – 3Q24 Pe
Slide 32: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements(1)(2) As of June 30, 2022 FNB’s total deposit CAGR is 9% over the last 5 years. Balance Portfolio Non-Interest (in millions) (%) Savings, NOW, Bearing Savings, NOW, MMDA $19,230 52% MMDA 27% 52% Non-Interest Bearing 9,870 27% Transaction Deposits $29,100 7
Slide 33: Investment Portfolio
Investment Portfolio Highly Rated Investment Portfolio As of September 30, 2024 % Ratings as of September 30, 2024 ($ in millions) Balance Portfolio Investment % Agency CMBS Agency MBS $1,797 25% AAA 100% 32% Agency Agency CMO 1,490 20% AAA 100% Debentures 5% Agency CMBS 2,354 32% AAA 100% Agency De
Slide 34: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 3Q24 2Q24 3Q23 QoQ Δ(2) YoY Δ 3Q24 Highlights Total interest income $582,772 $557,188 $513,361 4.6% 13.5% o Net interest income increased from the prior quarter, primarily due to improved earning asset Total interest expense 259,443 241,298
Slide 35: Balance Sheet Repricing
Balance Sheet Repricing Cumulative Total Deposit Betas(1) Commentary 36.5% 38.1% 39.8% ❖ ~48% of loans reprice within 3 months. 34.3% 31.0% +2 PP +2 PP +2 PP ❖ ~$1 billion annual cash flowOther from the investment portfolio 26.6% +3 PP with a roll-off rate of ~2.90%. 21.8% +4 PP +5 PP o Duration of
Slide 36: Superior Core Deposit Base
Superior Core Deposit Base Total Average Deposit Cost vs. Fed Funds Target Rate (%) 3Q15 – 2Q19 Tightening Fed Cycle 2Q19 – 4Q21 Easing Fed Cycle 1Q22 – 3Q24 Tightening Fed Cycle 6.50 (+225) (-225) (+525) 5.50 5.50 5.50 5.50 5.25 5.50 5.00 5.00 4.50 4.50 3.25 3.50 2.50 2.50 2.50 2.49 2.44 2.46 2.62
Slide 37: Non-Interest Income
Non-Interest Income $ in thousands, unless otherwise stated 3Q24 2Q24 3Q23 QoQ Δ(1) YoY Δ 3Q24 Highlights Service charges $24,024 $23,332 $21,245 3.0% 13.1% o Non-interest income reached an all-time high of $89.7 million. Interchange and card transaction fees 12,922 13,005 13,521 (0.6%) (4.4%) o Ser
Slide 38: Non-Interest Expense
Non-Interest Expense $ in thousands, unless otherwise stated 3Q24 2Q24 3Q23 QoQ Δ(2) YoY Δ 3Q24 Highlights o Reported non-interest expense Salaries and employee benefits $126,066 $120,917 $113,351 4.3% 11.2% included $15.3 million(1) of significant items impacting Occupancy and equipment(1) 42,163 4
Slide 39: 2024 Financial Objectives
2024 Financial Objectives(1) 4Q24 Guidance FY 2024 Guidance Commentary Inclusive of the loan sale. Loan growth driven by increasing Spot Loans Mid-single digit growth market share and our diverse geographic footprint. Balance Sheet(2) Spot Deposits Mid-single digit growth Net Interest Income Assumes
Slide 40: 2024 Peer Group Listing
2024 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp. RF Regions Financial Corp. BKU BankUnited, Inc. SFNC Simmons First National Corp. BOKF BOK Financial Corp. SNV Synovus Financial Corp. CBSH Commerce Bancshares, Inc. SSB SouthState Corp. CFR Cullen/Frost Bankers,
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