F.n.b. Corporation · NYSE:FNB
F.n.b — Guggenheim Partners – New York, NY (November 2013)
47 slides from F.n.b's conference presentation, Nov 6, 2013
Slide 1: F.N.B. Corporation Third Quarter 2013 Investor Presentation
Exhibit 99.1 F.N.B. Corporation Third Quarter 2013 Investor Presentation Guggenheim Partners – New York, NY November 6, 2013
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP 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 BCSB Bancorp. In connection with the proposed merger between F.N.B. and BCSB Bancorp, a definitive proxy statement of BCSB Bancorp and prospectus of F.N.B. will be filed with the SEC. SHAREHOLDERS OF BCSB BANCORP, INC. ARE URGED TO
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 KEY INVESTMENT CONSIDERATIONS – Differentiating Factors 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 resul
Slide 6: About F.N.B. Corporation
About F.N.B. Corporation Assets:$14.1 billion(1) Fourth Largest Loans:$9.6 billion (1) Pennsylvania-Based Bank Deposits:$11.8 billion (1) Banking locations:282 (1) Consumer finance locations:72 Attractive and expanding footprint: PA/OH/MD/WV: Banking locations span 56 counties and four states (1) Le
Slide 7: Experienced Leadership Team
Experienced Leadership Team Experienced and respected executive management team has guided FNB through the cycle 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 Huntingt
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: Consistent Loan and Transaction Deposit Growth
Consistent Loan and Transaction Deposit Growth Consistent Growth in Loans and Transaction Deposits Loans Transaction Deposits and Customer Repos (Quarterly, In Billions) (Quarterly, In Billions) CAGR 4Q10 3Q13 – CAGR 4Q10 3Q13 – Total 14.4% Total 17.3% Organic(1) 6.3% Organic(1) 8.9% $8.7 $8.0 $7.4
Slide 11: Transaction Deposit Growth - Strengthened Funding Mix
Transaction Deposit Growth - Strengthened Funding Mix Consistent Transaction Deposit Growth Results in Strengthened Deposit Mix Total Transaction Deposits and Customer Repos Mix 3Q13 23% 22% Transaction 29% 27% 26% 25% deposits and customer repos = 77% 78% 78% of total 74% 75% 71% 73% deposits and c
Slide 12: Peer Leading ROTA and ROTE
Peer Leading ROTA and ROTE ROTA and ROTE Exceed Peer Results Return on Average Tangible Assets Return on Average Tangible Equity 1.20% 1.12% 1.08% 1.08% 20.00% 18.33% 1.00% 17.46% 17.33% 18.00% 16.00% 0.80% 14.00% 12.00% 0.60% 10.00% 8.00% 0.40% 6.00% 4.00% 0.20% 2.00% 0.00% 1Q13 2Q13 3Q13 0.00% FNB
Slide 13: High-Quality Earnings
High-Quality Earnings FNB Continues to Deliver High-Quality Earnings Provision for Loan Losses as % of Net Charge-Offs ($) Allowance for Loan Losses/Total Loans (%) (1) FNB provision for loan losses exceeds net charge-offs to FNB allowance for loan losses to total loans (originated support consisten
Slide 14: Market Position
Market Position Top Overall and MSA Market Position Regional Alignment Presence in Major Markets Significant Commercial Prospects 14
Slide 15: FNB Banking Footprint - Regional Alignment
FNB Banking Footprint - Regional Alignment Top 30 MSA Presence Cleveland MSA NY MSA Population Erie PA Baltimore, 2.7 million MD #20 MSA Scranton Hermitage Cleveland Pittsburgh, 2.4 million PA #22 MSA State College PVFC Target Completion Cleveland, 2.1 million Pittsburgh Harrisburg OH #29 MSA Octobe
Slide 16: 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 17: MSA Market Share - Proven Success, Opportunity For Growth
MSA Market Share - Proven Success, Opportunity For Growth Established MSA Markets – Proven 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) Share (%) Rank In
Slide 18: 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 New York (1) 19,567 JPM BofA Citi FNB is uniquely 2 Los Angeles 12,829 BofA Wells Fargo Mitsubishi UFJ 3 Chicago 9,461 JPM BMO BofA positioned as 4 Dallas 6,426 BofA JPM Wells Fargo
Slide 19: 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 Over 175,000 Total Businesses (1) 65,169 59,240 52,149 12,851 13
Slide 20: Acquisition Strategy
Acquisition Strategy Disciplined and Consistent Strategy Significant Expansion Enhanced Organic Growth Prospects 20
Slide 21: 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 Fit culturally Execution Evaluation Target
Slide 22: Recent Acquisitions – Positioning for Sustained Organic Growth
Recent Acquisitions – Positioning for Sustained Organic Growth Baltimore, MD MSA Annapolis Bancorp, Inc - Closed April 6, 2013 BCSB Bancorp, Inc. - Target close February, 2014 Cleveland Talent established Team and leadership in place Presence anchored Downtown Baltimore headquarters announced Pittsb
Slide 23: Expanded Franchise = Enhanced Organic Growth Prospects
Expanded Franchise = Enhanced Organic Growth Prospects Acquisition- Related Expansion in Higher Growth Markets Enhances In Millions Organic Growth Opportunities Note: Market population and market businesses represent current metrics based on respective FNB MSA presence Data per FNB, SNL Financial an
Slide 24: Strong Operating Results
Strong Operating Results 3Q13 Highlights and Trends 24
Slide 25: 3Q13 Financial Highlights – Quarterly Trends
3Q13 Financial Highlights – Quarterly Trends Current Prior Prior Year Quarter Quarter Quarter 3Q13 2Q13 3Q12 Operating Net income ($ millions) $32.2 $30.1 $29.9 Earnings (1) Earnings per diluted share $0.22 $0.21 $0.21 ROTE(1) 18.33% 17.33% 18.57% Profitability ROTA(1) 1.12% 1.08% 1.12% Performance
Slide 26: Balance Sheet Highlights
Balance Sheet Highlights Linked-Quarter 3Q13 Growth(1) Average Balances, $ in Millions Balance $ % 3Q13 Highlights Strong balance sheet growth, with continued momentum growing loans and transaction Securities $2,275 -$20.7 -3.6% deposits Growth in average total loans of $200.2 million Total loans $8
Slide 27: Net Interest Margin Trends
Net Interest Margin Trends Net Interest Margin Trends 3.70% 3.66% 3.66% 4.00% 3.63% 3.64% 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 3Q12 4Q12 1Q13 2Q13 3Q13 Core Net Interest Margin Accretable Yield Benefit Relatively stable core net interest margin The net interest margin has benefited from t
Slide 28: Asset Quality Results
Asset Quality Results (1) $ in Thousands 3Q13 2Q13 3Q12 3Q13 Highlights NPL’s+OREO/Total loans+OREO 1.49% 1.59% 1.69% Solid performance with metrics remaining at good, consistent levels Total delinquency 1.44% 1.44% 1.66% Net charge-offs very low at 0.26% annualized for the originated portfolio Prov
Slide 29: Asset Quality Trends
Asset Quality Trends Asset Quality Trends Compare Favorably to Peer Results NPL’s+OREO/ NCO’s Originated Loans/ Total Originated Loans+OREO (1)(2) Total Originated Loans(1)(3) 4.00% 1.20% 3.50% 1.00% 3.00% 2.74% 2.50% 0.80% 2.15% 0.77% 2.00% 1.60% 1.59% 1.59% 0.60% 1.49% 0.62% 1.50% 0.40% 1.00% 0.41
Slide 30: Capital Position
Capital Position Capital Position as of September 30, 2013(1) June 30, 2013 September 30, 2013 14.0% 12.1% 12.1% 12.0% 10.6% 10.6% 10.0% 8.4% 8.4% 8.0% 6.1% 6.1% 6.0% 4.0% 2.0% 0.0% Total Risk-Based Tier One Leverage Tangible Common Equity (1) Regulatory risked-based ratios estimated as of September
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: Operating Results Outperform Peers
Operating Results Outperform Peers ROTE(1) Efficiency Ratio Net Interest Margin - Offs to Average Loans Net Charge The above represents full-year 2010, 2011, 2012 and/or quarterly, year-to-date results where noted. Refer to Supplemental Information for peer group listing. (1) Operating results, refe
Slide 34: Consistent Operating Results
Consistent Operating Results FNB’s ability to deliver consistent operating results exceeds peer results FNB and Peer Volatility (Standard Deviation 1Q10 – 3Q13) 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: Attractive P/E Valuation Highlights Potential Upside
Attractive P/E Valuation Highlights Potential Upside Historical Price / TBV Per Share (x) Price / 2014 EPS Estimate (x) Consistent premium to peers based on price FNB currently reflects an attractive to tangible book value per share valuation based on future earnings 4.00x 15.50x 15.36x 3.50x 15.00x
Slide 36: October 2013 Capital Actions – Proactive Capital Management
October 2013 Capital Actions – Proactive Capital Management Transaction Overview Successfully raised $151.2 million through a combination of common equity (4.7 million shares, $54.5 million net proceeds, including over-allotment option exercised) and preferred equity (4.0 million shares, $96.7 milli
Slide 37: Supplemental Information
Supplemental Information 37
Slide 38: Supplemental Information Index
Supplemental Information Index Diversified Loan Portfolio Deposits and Customer Repurchase Agreements Investment Portfolio Loan Risk Profile Marcellus and Utica Shale Exposure Regency Finance Company Profile Regional Peer Group Listing GAAP to Non-GAAP Reconciliation Third Quarter 2013 Earnings Rele
Slide 39: Diversified Loan Portfolio
Diversified Loan Portfolio 9/30/2013 CAGR % of Portfolio ($ in millions) 12/08- $8.8 Billion Loan Portfolio Balance 12/31/08 9/30/13 September 30, 2013 9/30/13 Other 2% C&I $1,755 13.9% 16% 20% Regency 2% Indirect 7% Florida 0% CRE: Non-Owner Occupied 1,555 11.4% 16% 17% Residential Commercial Mortg
Slide 40: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 9/30/2013 CAGR Mix % $10.6 Billion Deposits and ($ in millions) 12/08- Customer Repo Agreements Balance 9/13 12/31/08 9/30/13 September 30, 2013 Savings, NOW, MMDA $4,981 12.8% 44% 47% Time Deposits 2,360 0.4% 36% 22% Non-Interest Non-Interest Bearing 2,11
Slide 41: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $2.3 Billion Investment Portfolio ($ in millions(1)) Portfolio Investment % September 30, 2013 Agency MBS $878 37% AAA 100% Ratings Composition CMO Agency 831 35% AAA 100% Agency Senior Notes 376 16% AAA 100% AAA 2% AA 50% Municipals 153 7% A 47% Held to A
Slide 42: Loan Risk Profile
Loan Risk Profile Balance YTD Net Charge- Total Past (1) (1) (1) $ in millions 9/30/2013 % of Loans NPL's/Loans Offs/Loans Due/Loans Commercial and Industrial $1,755 19.9% 0.48% 0.22% 0.75% CRE: Non-Owner Occupied 1,555 17.6% 1.04% 0.24% 1.25% CRE: Owner Occupied 1,317 14.9% 2.02% 0.08% 2.32% Home E
Slide 43: Marcellus and Utica Shale Exposure
Marcellus and Utica Shale Exposure FNB is well-positioned in the Marcellus Shale and Utica 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 best ge
Slide 44: 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 delivery Direct Effect: of the gas Oil and Gas Drilling, extraction and support activities Provides g
Slide 45: Regency Finance Company Profile
Regency Finance Company Profile Consumerfinancebusinesswith over 80 yearsof consumerlendingexperience Credit quality: 3Q13 YTD net charge-offs to average loans of 3.71% Returns: 3Q13 YTD: ROA 3.89%, ROE 42.00%, ROTE 47.16% Regency Finance Company $175 Million Loan Portfolio Pennsylvania 14% Ohio 26%
Slide 46: 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 47: 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 For the Year Ended September 30, 2013 June 30, 2013 March 31, 2013 September 30, 2012 2012 2011 2010 Operating net income Net income $31,634 $29,193 $28,538 $30,743
FNB — Guggenheim Partners – New York, NY (November 2013) on 6ix