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Russell Gunther
To circle back to the loan growth conversation for a second, and I appreciate the mid-single-digit reiteration, it
assumes about a like amount for the fourth quarter to get there, and then Garys reminder about consistent underwriting throughout cycles. But the strong growth over the past couple of quarters, that high single-digit annualized number, the
growth of your markets youve moved into over the past few years with LPOs and M&A, Is there any reason, just bigger picture going forward, we shouldnt begin to think about FNB as a mid- to high
single-digit grower rather than mid-single digits? And what would keep you from feeling more comfortable towards the higher end of that type of range?
Vincent Delie, Jr.
Well, historically we have been high
single-digit performer. For a long period of time, prior to the pandemic if you looked at the average growth rate for the company, we were double digits, including M&A over a sustained period of time and high single-digit organic loan growth. We
stripped out the M&A contribution and looked at it on an organic basis. We used to report that out to the Street. So as we move through the cycle, the disruption that weve experienced, which was fairly substantial given the pandemic, I
think were going to return to those levels.
And its certainly doable given the investments weve made in our platform. If you really
look at how were structured, for a $40 billion bank to have the opportunity to compete in ten fairly large markets, right, where we have a substantial share in those, we consider them midsized cities in the Southeast and the Mid-Atlantic and the Northeast, we have the potential to do that and were able to do that and still maintain our credit underwriting standards. We could grow even faster if we didnt have a great deal of
discipline. Ill let Gary comment further on that because he is on the front end of this stuff. So, Gary, if you want to comment, that would be great.
Gary Guerrieri
Yes. Thanks, Vince. I mean, we are seeing
continued opportunities at a very good pace. The diversification of the markets, we think, is absolutely critical. And Russell to your question, the impact of COVID has us, from a guidance standpoint in that
mid-single range. As you can see from the last couple of quarters, growth has been strong, in that 8% plus range. So, thats where we like to be and thats where we expect to be, and I think you will
see that as we move forward and put some of these issues behind us.
That all said, there are supply chain issues that are real, everyone knows that,
inflationary pressures, labor issues and availability as well as cost. So, there is a lot of headwinds in the economy that need to continue to be worked through. But we are very confident in our ability to grow the loan book and we feel good about
what we have been able to produce the last couple of quarters.
Russell Gunther
Yes. Thank you, guys. Understood on the growth trajectory. And then just one tangential follow-up. So, the recent
M&A announcement prior to that, you have been pretty successful with the LPO strategy. As you think about the model going forward, how do you balance or how do you want to balance LPO versus M&A? And any particular market that you want to
move into or scale up in? And whats the best way to go about it?
Vincent Delie, Jr.
Yes. Our focus, as I have said, historically, sometimes what I say is taken out of context, but Ill try to be really clear, were really focused on
organic growth, on making sure the company is positioned to grow, to provide benefits to the shareholders. So, when an M&A opportunity comes up like Howard, sure, were going to look at it. Were going to measure it against other
opportunities to invest capital. And if we think it makes strategic sense for us to pursue that type of an opportunity, well do it in the most shareholder-friendly way we can.
FNB Corporation
October 19, 2021 at 8:30 a.m. Eastern