F.n.b. Corporation · NYSE:FNB
F.n.b — Keefe, Bruyette & Woods Boston Bank Conference (February 2014)
42 slides from F.n.b's conference presentation, Feb 26, 2014
Slide 1: F.N.B. Corporation Investor Presentation
Exhibit 99.1 F.N.B. Corporation Investor Presentation Keefe, Bruyette & Woods – Boston Bank Conference February 26, 2014
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: F.N.B. Corporation
F.N.B. Corporation About F.N.B. Corporation Experienced Leadership Team Favorably Positioned for Long-Term Success Strong Operating Trends 3
Slide 4: About F.N.B. Corporation
About F.N.B. Corporation • Assets: $14.2 billion(1) • Loans: $9.8 billion (1) Fourth Largest Pennsylvania-Based Bank • Deposits: $11.6 billion (1) • Banking locations: 282 (1) • Consumer finance locations: 72 • Attractive and expanding footprint: PA/OH/MD/WV: Banking locations span 56 counties and f
Slide 5: 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. 27 2005 National City President, First National Bank John C. Williams, Jr. 43 2008 Huntingt
Slide 6: Favorably Positioned for Long-Term Success
Favorably Positioned for Long-Term Success High-QualityEarnings– 2013 Highlights OperatingROATCE of 17.35%- continuedtop decileperformancerelative to peers Record net income Record loan production of $3.3 billion, increasing 11% over the prior year Organic growth in total loans for 18 consecutive qu
Slide 7: High-Quality Earnings
High-Quality Earnings FNB Continues to Deliver High-Quality Earnings Provision for Loan Losses as % of Net Charge-Offs ($) 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 8: Full Year Financial Highlights – Annual Trends
Full Year Financial Highlights – Annual Trends 2013 2012 2011 2010 Quality Operating Net income available to common shareholders ($ millions) $123.5 $117.8 $90.3 $68.2 Earnings(1) Earnings per diluted common share $0.84 $0.84 $0.72 $0.60 ROTCE(1) 17.35% 18.75% 16.32% 14.71% Profitability ROTA(1) 1.0
Slide 9: Annual Earnings Trends
Annual Earnings Trends Earnings Benefit of Full Year of 2013 Accomplishments: Full-year average organic loan growth of 6.3% Full Year Net Income and EPS Trends (1) Solid earnings growth trajectory 18 consecutive quarters of linked-quarter growth muted in 2013 by headwinds Record loan production of $
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 – 4Q13 CAGR 4Q10 – 4Q13 Total 15.6% Total 18.1% Organic (1) 6.4% Organic (1) 9.1% $9.3 $8.5 $8.
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 2013 Transaction deposits and customer repos = 76% of total deposits and customer repos at 12/31/2013 Strong growth in non
Slide 12: Reposition and Reinvest – Actions Drive Long-Term Performance
Reposition and Reinvest – Actions Drive Long-Term Performance 2009 2010 2011 2012 2013 PEOPLE Talent Management Strengthened team through key Attract, retain, develop best talent hires; Continuous team development Geographic Segmentation Regional Created 5 th & 6 th Regional model Realignment Region
Slide 13: Market Position
Market Position Top Overall Market Position Regional Alignment Presence in Major Markets Acquisition-Related Expansion Strengthens Position 13
Slide 14: Top Overall Market Position
Top Overall Market Position FNB holds the #3 overall retail market position for Pennsylvania counties of operation and #6 position for all counties FNB Pennsylvania Counties of Operation FNB All Counties of Operation Total Total Total Market Market Total Market Market Branch Deposits Share Branch De
Slide 15: FNB Banking Footprint - Regional Alignment
FNB Banking Footprint - Regional Alignment Cleveland MSA Top 30 MSA Presence MSA Population Baltimore, 2.7 million MD #20 MSA Pittsburgh, 2.4 million PA #22 MSA PVFC Completed Cleveland, 2.1 million October 2013 OH #29 MSA Pittsburgh MSA ANNB Completed April 2013 & BCSB Completed February 2014 Balti
Slide 16: MSA Market Share - Proven Success, Opportunity For Growth
MSA Market Share - Proven Success, Opportunity For Growth Established MSAMarkets– ProvenSuccess, LeadingSharePositionAchieved Pittsburgh, PA MSA All Other FNB MSA's (excludes Pittsburgh, Baltimore, Cleveland) Total Deposits Market Total Deposits Market Rank Institution ($000) Share (%) Rank Institut
Slide 17: 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 18: 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. – Closed February 15, 2014 Talent established Team and leadership in place Presence anchored Downtown Baltimore headquarters Performance tracking well Loa
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) Note: Above metrics at the MSA
Slide 20: Expanded Franchise = Enhanced Organic Growth Prospects
Expanded Franchise = Enhanced Organic Growth Prospects Acquisition- Related Expansion in Higher Growth Markets Enhances Organic Growth Opportunities Note: Market population and market businesses represent current metrics based on respective FNB MSA presence Data per FNB, SNL Financial and/or U.S. Ce
Slide 21: Strong Operating Results
Strong Operating Results 4Q13 Highlights and Trends 21
Slide 22: 4Q13 Financial Highlights
4Q13 Financial Highlights Solid Operating Results and Strategic Accomplishments Operating Result Highlights 4Q13 operating(1) net income available to common shareholders of $32.5 million; earnings per diluted common share of $0.21 Solid profitability performance and continued high-quality earnings R
Slide 23: 4Q13 Financial Highlights – Quarterly Trends
4Q13 Financial Highlights – Quarterly Trends Current Prior Prior Year Quarter Quarter Quarter 4Q13 3Q13 4Q12 Operating Net income available to common shareholders ($ millions) $32.5 $32.2 $32.1 Earnings (1) Earnings per diluted common share $0.21 $0.22 $0.23 ROTCE(1) 16.45% 18.32% 19.49% Profitabili
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights 4Q13 Reported Organic Growth(1) Growth(1) Average Balances, $ in Millions Balance $ $ % 4Q13 Highlights Strong balance sheet growth, with Securities $2,316 $40.3 - - continued momentum organically growing loans and transaction deposits Total loans $9,323 $592.7 $129.4 5.9% T
Slide 25: Net Interest Margin Trends
Net Interest Margin Trends Net Interest Margin Trends The 4Q13 net interest margin was stable compared to the prior quarter when adjusting for: The benefit of 6 basis points from $1.7 million additional accretable yield which was partially offset by, The 3 basis points narrowing due to the temporary
Slide 26: Asset Quality Results
Asset Quality Results (1) $ in Thousands 4Q13 3Q13 4Q12 4Q13 Highlights NPL’s+OREO/Total loans+OREO 1.44% 1.49% 1.60% Solid performance with continued positive movement Total delinquency 1.28% 1.44% 1.64% Net charge-off results were at good levels and reflect year-over-year improvement Provision for
Slide 27: Asset Quality Trends
Asset Quality Trends Asset Quality Trending Positively and Compares Favorably to Peer Results NPL’s+OREO/ (1)(2) NCO’s Originated Loans/ (1)(3) Total Originated Loans+OREO Total Originated Loans Peer data per SNL Financial, refer to Appendix for peer listing; (1) Metrics shown are originated portfol
Slide 28: Capital Position
Capital Position Capital Position as of December 31, 2013 September 30, 2013 December 31, 2013 12.1%12.5% 11.1% 10.6% 9.3% 8.8% 8.6% 8.4% 6.7% 6.1% Total Risk-Based Tier One Tier One Leverage Tangible Common Common Equity Capital levels at December 31, 2013 reflect the benefit of the fourth quarter
Slide 29: Investment Thesis
Investment Thesis Long-Term Investment Thesis 29
Slide 30: 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 31: Operating Results Outperform Peers
Operating Results Outperform Peers ROTCE(1) Efficiency Ratio 70.0% 20.00% 65.0% 18.00% 16.00% 60.0% 14.00% 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% 2011 2012 2013 2011 2012 2013 1Q13 2Q13 3Q13 4Q13 FNB Peer Group Median FNB Peer Group Median Net Charge-Offs to
Slide 32: Consistent Operating Results
Consistent Operating Results FNB’s ability to deliver consistent operating results exceeds peer results FNB and Peer Volatility (Standard Deviation 1Q10 – 4Q13) ROAA Volatility Revenue/Avg Assets Volatility 0.25% 0.060% 0.050% 0.20% 0.040% 0.15% 0.030% 0.10% 0.020% 0.05% 0.010% 0.00% 0.000% FNB 2013
Slide 33: Attractive P/E Valuation Highlights Potential Upside
Attractive P/E Valuation Highlights Potential Upside Historical Price / TBV Per Share (x) Price / 2015 EPS Estimate (x) Consistent premium to peers based on price FNB currently reflects an attractive valuation to tangible book value per share based on future earnings 15.00x 4.00x 14.11x 3.50x 14.00x
Slide 34: Supplemental Information
Supplemental Information 34
Slide 35: Supplemental Information Index
Supplemental Information Index Diversified Loan Portfolio Deposits and Customer Repurchase Agreements Investment Portfolio Loan Risk Profile Regency Finance Company Profile Regional Peer Group Listing GAAP to Non-GAAP Reconciliation 35
Slide 36: Diversified Loan Portfolio
Diversified Loan Portfolio 12/31/2013 5 YR CAGR % of Portfolio ($ in millions) 12/31/08- $9.5 Billion Loan Portfolio Balance 12/31/13 12/31/08 12/31/13 December 31, 2013 C&I $1,881 14.7% 16% 20% Other 2% Regency 2% CRE: Non-Owner Occupied 1,809 14.2% 16% 19% Indirect 7% Florida 0% Residential Commer
Slide 37: Deposits and Customer Repurchase Agreements
Deposits and Customer Repurchase Agreements 12/31/2013 5 YR CAGR Mix % $11.0 Billion Deposits and ($ in millions) 12/31/08- Customer Repo Agreements Balance 12/31/13 12/31/08 12/31/13 December 31, 2013 Savings, NOW, MMDA $5,142 12.8% 44% 47% Time Deposits 2,606 2.4% 36% 23% Non-Interest Bearing 2,20
Slide 38: Investment Portfolio
Investment Portfolio % Ratings Highly Rated $2.4 Billion Investment Portfolio ($ in millions(1)) Portfolio Investment % December 31, 2013 Agency MBS $880 37% AAA 100% Ratings Composition CMO Agency 877 37% AAA 100% Agency Senior Notes 374 16% AAA 100% AAA 11% AA 53% Municipals 149 6% A 35% BBB 1% BB
Slide 39: Loan Risk Profile
Loan Risk Profile Balance YTD Net Charge- Total Past (1) $ in millions 12/31/2013 % of Loans NPL's/Loans Offs/Loans(1) Due/Loans(1) Commercial and Industrial $1,881 19.8% 0.38% 0.13% 0.49% CRE: Non-Owner Occupied 1,809 19.0% 0.80% 0.20% 0.90% CRE: Owner Occupied 1,397 14.7% 1.92% 0.09% 2.06% Home Eq
Slide 40: Regency Finance Company Profile
Regency Finance Company Profile Consumerfinancebusinesswith over 80 yearsof consumerlendingexperience Credit quality: 2013 Full Year net charge-offs to average loans of 3.74% Returns: 2013 Full Year: ROA 3.98%, ROE 42.64%, ROTE 47.79% Regency Finance Company $180 Million Loan Portfolio Pennsylvania
Slide 41: 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 42: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly and Full Year Non-GAAP Reconciliation For the Quarter Ended Year Ended December 31, December 31, 2013 September 30, 2013 December 31, 2012 2013 2012 2011 2010 Operating net income Net income $28,439 $31,634 $28,955 $117,804 $110,410 $87,047 $74,652 Add: Merg
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