F N B : May 2025 Investor Presentation (May 9, 2025)
FNB
Published on 05/09/2025 at 14:43
F.N.B. Corporation
Investor Presentation
Second Quarter 2025
1
April 2025
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 shareholders, operating earnings per diluted common share, return on average tangible common equity, operating return on average tangible common equity, return on average tangible assets, tangible book value per common share, the ratio of tangible common equity to tangible assets, operating revenue, operating non-interest income, efficiency ratio, allowance for credit losses on loans and leases plus accretable discount of acquired loans to total loans and leases and net interest margin (FTE) to provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to assess their performance and trends.
These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included later in this release under the heading "Reconciliations of Non-GAAP Financial Measures and Key Performance Indicators to GAAP."
Management believes certain items (e.g., FDIC special assessment, realized loss on investment securities restructuring and merger expenses) are not organic to running our operations and facilities. These items are considered significant items impacting earnings as they are deemed to be outside of ordinary banking activities. These costs are specific to each individual transaction and may vary significantly based on the size and complexity of the transaction.
To facilitate peer comparisons of net interest margin and efficiency ratio, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets (loans and investments) to make it fully equivalent to interest income earned on taxable investments (this adjustment is not permitted under GAAP). Taxable-equivalent amounts for 2025 and 2024 were calculated using a federal statutory income tax rate of 21%.
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Overview of FNB
Ticker: FNB (NYSE)
Founded in 1864
Headquartered in Pittsburgh, PA
Diverse market presence across 7 states and Washington, D.C.
Market Capitalization of $4.8 billion(2)
Experienced management team
Proven ability to deliver strong risk-
adjusted returns
FNB Branches
FNB ATMs
Assets: 12.2% CAGR since 2009 $49.0 billion
Loans: 12.5% CAGR since 2009 $34.2 billion
Deposits: 12.5% CAGR since 2009 $37.2 billion
Dividend Yield(2):
3.6%
Non-Interest-Bearing Demand to Total Deposit Mix:
26.5%
Net Interest Margin(1)(3):
3.03%
CET1 Capital Ratio(5):
10.7%
Efficiency Ratio(1)(3)(4):
58.5%
Tangible Book Value/Share(3)
$10.83
Commercial Banking
Consumer Banking
Wealth Management
eStore®
Corporate and Business Banking
Investment Real Estate
Builder Financing
Asset-Based Lending
Lease Financing
Capital Markets
Mezzanine Financing
Treasury Management
International Banking
SBA Lending
Government Banking
Deposit Products
Mobile and Online Banking
Mortgage Banking
Consumer and Small Business Lending
Trust and Fiduciary
Retirement Services
Investment Advisory
Brokerage
Private Banking
Insurance
Property and Casualty
Employee Benefits
Personal
Title
Common Application
Shop for Financial Products & Services
Best Next-Product Suggestion
Access Financial Education
Schedule Time with Our Bankers Virtually
(1) Represents 1Q25 values. (2) As of market close on April 29, 2025. (3) A non-GAAP measure. (4) FTE basis. (5) Estimated for 1Q25 4
Investor Highlights
Strong core franchise in attractive markets well positioned for growth
Diversified revenue streams through retail and commercial banking, capital markets, wealth management and insurance.
Proven, sustainable business model driving long-term growth and performance.
Disciplined sales culture focused on relationship-based loan and deposit growth with an emphasis on credit quality.
Strong market presence in Pennsylvania, Mid-Atlantic and the Carolinas with attractive growth opportunities throughout.
Significant market share in major MSAs; #2 in Pittsburgh, #7 in Baltimore, #11 in Raleigh, #9 in Charlotte, #12 in Cleveland and #3 in Winston-Salem.
Demonstrated attractive financial performance
Attractive financial metrics - 12.6% ROATCE (1), 1.06% ROATA(1) and 58.5% efficiency ratio(1) for the quarter ended 3/31/25.
Lower risk model supports efficient capital structure; maintaining efficient structure heightens capital allocation discipline within the organization and is a key consideration in executing our business strategies.
Strong capital levels on a risk-adjusted and leverage basis.
Strong revenue growth driven by consistent fee income and a favorable deposit mix which outperforms our peers.
Solid income growth in fee-based businesses with CAGR of 9% in operating non-interest income(1) since 2015.
Robust risk management culture and credit discipline resulting in strong and stable asset quality
Lower risk profile with significant investments in enterprise-wide risk management (closely aligned with overall growth).
Low levels of NPLs and NCOs, combined with higher loan loss reserves both on an absolute basis and relative to peers.
Proven history of managing credit through cycles - peak NCOs over loans of 0.36%(2) was well below peers in the Financial Crisis (2008-2012).
Effectively managed through idiosyncratic banking disruption in Spring 2023.
Solid liquidity position with multiple sources of funding
Stable and granular deposit base with 77% insured and collateralized with average account size of ~32k. Non-interest-bearing demand deposits represent 26% of deposit funding and provides lower cost sources of funding.
Strong liquidity position that is 1.62 times greater than uninsured and non-collateralized deposits.
(1) A non-GAAP measure. (2) Excludes FNB's discontinued Florida and Regency exposure. 5
Disclaimer
FNB Corporation published this content on May 09, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 09, 2025 at 18:42 UTC.