Maintains Strong Liquidity and Capital
Position with Stable Deposit Balances and Record Revenue
Return on Average Assets of 1.4% and Return on
Average Tangible Common Equity (non-GAAP) of 20%
PITTSBURGH, April 19,
2023 /PRNewswire/ -- F.N.B. Corporation (NYSE:
FNB) reported earnings for the first quarter of 2023 with net
income available to common stockholders of $144.5 million, or $0.40 per diluted common share. Comparatively,
first quarter of 2022 net income available to common stockholders
totaled $51.0 million, or
$0.15 per diluted common share, and
fourth quarter of 2022 net income available to common stockholders
totaled $137.5 million, or
$0.38 per diluted common share.
On an operating basis, first quarter of 2023 earnings per
diluted common share (non-GAAP) was $0.40, excluding $2.1
million (pre-tax) of merger-related significant items. By
comparison, the first quarter of 2022 was $0.26 per diluted common share (non-GAAP) on an
operating basis, excluding $47.8 million (pre-tax) in Howard Bancorp,
Inc. (Howard) merger-related significant items and $4.2 million (pre-tax) in branch consolidation
costs. The fourth quarter of 2022 was $0.44 per diluted common share (non-GAAP) on an
operating basis, excluding $21.9 million (pre-tax) of UB Bancorp
(Union) merger-related significant items and $2.8 million (pre-tax) of branch consolidation
costs.
"F.N.B. Corporation's first quarter earnings per diluted common
share totaled $0.40 with strong
momentum on several key performance metrics including return on
average tangible common equity (non-GAAP) of 20%, return on average
assets of 1.4%, and an efficiency ratio (non-GAAP) of 50.6%," said
F.N.B. Corporation Chairman, President and Chief Executive Officer,
Vincent J. Delie, Jr. "Our strong
financial performance was due to the consistent execution of our
conservative business model and focus on customer primacy which led
to stable deposit balances, solid capital with a CET1 ratio of 10%
and ample liquidity to cover our uninsured and non-collateralized
deposits by 170%."
"The recent bank failures placed a spotlight on the importance
of maintaining a diversified and granular deposit base,
conservative and prudent balance sheet management for the long
term, and sound risk management policies and governance. These
practices have always been integral to FNB's long-term strategy and
are ingrained in our enterprise risk management program. Throughout
the industry volatility, the strength of our balance sheet allowed
us to increase customer acquisition and deepen existing
relationships. FNB has earned our customers' trust and we promise
to uphold that trust as we have positioned the Company to
outperform in a wide array of potential economic and industry
scenarios."
First Quarter 2023 Highlights
(All
comparisons refer to the first quarter of 2022, except as
noted)
- Total average deposits grew $1.2
billion, or 3.7%, led by increases in average time deposits
of $1.2 billion, or 42.1%, average
non-interest-bearing deposits of $154.6
million, or 1.4%, and average savings deposits of
$148.5 million, or 3.8%, more than
offsetting the decline in average interest-bearing demand deposits
of $323.5 million, or 2.2%. Average
deposit growth reflected organic growth in new and existing
customer relationships and inflows from the Union acquisition which
closed in December 2022.
- On a linked-quarter basis, average deposits increased
$274.2 million, or 0.8%, reflecting
organic growth in new and existing customer relationships and
inflows from the Union acquisition.
- On a linked-quarter basis, period-end deposits decreased
$579.7 million, or 1.7%, primarily
due to normal seasonal declines in public funds and other corporate
deposit balances. From March 8, 2023,
to quarter end, total deposit balances decreased slightly by
$226 million, or 0.7%, largely due to
normal wholesale and retail customer activity. FNB ended the
quarter with approximately 76% of deposits insured by the Federal
Deposit Insurance Corporation (FDIC) or collateralized.
- Period-end total loans and leases increased $3.8 billion, or 14.3%, which includes the
Union-acquired loans. Commercial loans and leases increased
$1.9 billion, or 11.0%, and consumer
loans increased $1.9 billion, or
20.6%, on a year-over-year basis. FNB's strong organic loan growth
was driven by the continued success of our strategy to grow
high-quality loans across our diverse geographic footprint.
- On a linked-quarter basis, period-end total loans and leases
increased $418.3 million, or 1.4%,
with commercial loans and leases increasing $222.0 million and consumer loans increasing
$196.4 million. Average loans and
leases increased $1.0 billion, or
3.6%, linked-quarter, with growth of $795.4
million in commercial loans and leases and $254.3 million in consumer loans.
- Net interest income increased $102.6
million, or 43.8%, to $336.7
million primarily due to the benefit of growth in earning
assets, the impact from the higher interest rate environment,
strong deposit growth and prudent management of deposit betas.
- Net interest margin (FTE) (non-GAAP) increased 95 basis points
primarily due to higher yields on loans, investment securities and
interest-bearing deposits with banks reflecting the higher interest
rate environment.
- On a linked-quarter basis, the net interest margin (FTE)
(non-GAAP) increased 3 basis points to 3.56%, as the earning asset
yield (non-GAAP) increased 39 basis points while the cost of funds
increased 38 basis points.
- The ratio of non-performing loans and other real estate owned
(OREO) to total loans and OREO decreased 2 basis points to 0.38%.
Total delinquency decreased 6 basis points to 0.60%, compared to
0.66%, and continues to remain at a historically low level.
- Efficiency ratio (non-GAAP) was 50.6%, fueled by higher
revenue, compared to 60.7% for the year-ago quarter.
- Common Equity Tier 1 (CET1) regulatory capital ratio was 10.0%
(estimated), compared to 9.8% at December
31, 2022, and 10.0% at March 31,
2022. Tangible book value per common share (non-GAAP) of
$8.66 increased $0.39, or 4.7%, compared to December 31, 2022. Accumulated other
comprehensive income/loss (AOCI) reduced the tangible book value
per common share (non-GAAP) by $0.87
as of March 31, 2023, primarily due
to the impact of higher interest rates on the fair value of
available-for-sale (AFS) securities, a $0.12 improvement compared to a reduction of
$0.99 as of December 31, 2022.
- During the first quarter of 2023, the Company repurchased
850,000 shares of common stock at a weighted average share price of
$13.78.
Non-GAAP measures referenced in this release are used by
management to measure performance in operating the business that
management believes enhances investors' ability to better
understand the underlying business performance and trends related
to core business activities. Reconciliations of non-GAAP operating
measures to the most directly comparable GAAP financial measures
are included in the tables at the end of this release. For more
information regarding our use of non-GAAP measures, please refer to
the discussion herein under the caption, Use of Non-GAAP Financial
Measures and Key Performance Indicators.
Quarterly Results
Summary
|
1Q23
|
|
4Q22
|
|
1Q22
|
Reported
results
|
|
|
|
|
|
Net income available to
common stockholders (millions)
|
$
144.5
|
|
$ 137.5
|
|
$
51.0
|
Net income per diluted
common share
|
0.40
|
|
0.38
|
|
0.15
|
Book value per common
share (period-end)
|
15.76
|
|
15.39
|
|
15.19
|
Pre-provision net
revenue (millions)
|
196.1
|
|
204.4
|
|
85.0
|
Operating results
(non-GAAP)
|
|
|
|
|
|
Operating net income
available to common stockholders (millions)
|
$
146.1
|
|
$ 157.0
|
|
$
92.0
|
Operating net income
per diluted common share
|
0.40
|
|
0.44
|
|
0.26
|
Operating pre-provision
net revenue (millions)
|
198.2
|
|
219.7
|
|
117.8
|
Average diluted
common shares outstanding (thousands)
|
364,930
|
|
357,791
|
|
348,926
|
Significant items
impacting earnings1 (millions)
|
|
|
|
|
|
Pre-tax merger-related
expenses
|
$
(2.1)
|
|
$ (12.5)
|
|
$ (28.6)
|
After-tax impact of
merger-related expenses
|
(1.6)
|
|
(9.9)
|
|
(22.6)
|
Pre-tax provision
expense related to acquisition
|
—
|
|
(9.4)
|
|
(19.1)
|
After-tax impact of
provision expense related to acquisition
|
—
|
|
(7.4)
|
|
(15.1)
|
Pre-tax branch
consolidation costs
|
—
|
|
(2.8)
|
|
(4.2)
|
After-tax impact of
branch consolidation costs
|
—
|
|
(2.2)
|
|
(3.3)
|
Total significant items
pre-tax
|
$
(2.1)
|
|
$ (24.7)
|
|
$ (51.9)
|
Total significant items
after-tax
|
$
(1.6)
|
|
$ (19.5)
|
|
$ (41.0)
|
Capital
measures
|
|
|
|
|
|
Common equity tier 1
(2)
|
10.0 %
|
|
9.8 %
|
|
10.0 %
|
Tangible common equity
to tangible assets (period-end) (non-GAAP)
|
7.50
|
|
7.24
|
|
7.18
|
Tangible book value per
common share (period-end) (non-GAAP)
|
$
8.66
|
|
$
8.27
|
|
$
8.09
|
|
|
|
|
|
|
(1) Favorable
(unfavorable) impact on earnings.
|
(2) Estimated for
1Q23.
|
First Quarter 2023 Results – Comparison to Prior-Year
Quarter
(All comparisons refer to the first quarter of
2022, except as noted)
Net interest income totaled $336.7
million, an increase of $102.6
million, or 43.8%, compared to $234.1
million, as total average earning assets increased
$2.1 billion, or 5.6%, including a
$4.2 billion increase in average
loans and leases from organic origination activity and acquired
Union loans, as well as a $313.3
million increase in average investment securities. These
increases were partially funded by excess cash, which decreased by
$2.3 billion. In addition to the
growth in average earning assets, net interest income benefited
from the repricing impact of the higher interest rate environment
on earning asset yields, which was partially offset by the higher
cost of interest-bearing deposits given customers' preferences
migrating toward time deposits.
The net interest margin (FTE) (non-GAAP) increased 95 basis
points to 3.56%, as the yield on earning assets (non-GAAP)
increased 185 basis points to 4.68%, primarily due to higher yields
on loans, investment securities and interest-bearing deposits with
banks reflecting the higher interest rate environment. The total
cost of funds increased 96 basis points to 1.18% with a 136 basis
point increase in interest-bearing deposit costs to 1.50%, as well
as an increase of 144 basis points in long-term debt costs
reflecting the August 2022 offering
of $350 million aggregate principal
amount of 5.15% fixed rate senior notes due in 2025. Between
March 31, 2022, and March 31, 2023, the Federal Open Market Committee
raised the target Federal Funds interest rate by 450 basis
points.
Average loans and leases totaled $30.4
billion, an increase of $4.2
billion, or 15.9%, including growth of $2.1 billion in commercial loans and leases and
$2.1 billion in consumer loans. The
increase in average commercial loans and leases included
$1.1 billion, or 17.9%, in commercial
and industrial loan growth and $960.9
million, or 9.1%, in commercial real estate growth driven by
a combination of organic loan origination activity and the Union
acquisition. Organic commercial growth since the year-ago quarter
was led by the Pittsburgh,
Cleveland and North Carolina markets. The increase in
average consumer loans included a $1.4
billion increase in residential mortgages reflecting
adjustable-rate mortgages which we held in portfolio on the balance
sheet and the continued success of the Physicians First mortgage
program, a $325.7 million increase in
indirect auto loans and a $283.3
million increase in direct home equity installment loans
driven by strong organic loan origination activity throughout
2022.
Average deposits totaled $34.2
billion with growth in average time deposits of $1.2 billion, or 42.1%, average
non-interest-bearing demand deposits of $154.6 million, or 1.4%, and average savings
deposits of $148.5 million, or
3.8%, more than offsetting the decline in average interest-bearing
demand deposits of $323.5 million, or
2.2%. The increase in average deposits reflected organic growth in
new and existing customer relationships and inflows from the Union
acquisition. The funding mix shifted slightly from year-ago quarter
levels with non-interest-bearing deposits comprising 33% of total
deposits at March 31, 2023, compared
to 35% as of March 31, 2022,
reflecting customers' preferences migrating toward time deposits in
a higher interest rate environment.
Non-interest income totaled $79.4
million, an increase of $1.1
million, or 1.4%, compared to the first quarter of 2022.
Wealth management totaled a record $18.0
million, increasing $2.0
million, or 12.2%, with strong transaction activity across
the footprint. Service charges increased $1.1 million, or 3.6%, driven by treasury
management services and interchange fees, offsetting the expected
decline in overdraft and non-sufficient fund service charges from
the overdraft practice changes that FNB implemented in the first
quarter of 2023. Capital markets income totaled $6.8 million, a slight decrease of $0.3 million, or 4.7%, due to a decrease in swap
fees that was partially offset by solid contributions from
syndications, international banking, and debt capital markets
income. Mortgage banking operations income decreased $1.8 million as secondary market revenue and
mortgage held-for-sale pipelines declined from 2022 levels given
the sharp increase in mortgage rates and adjustable-rate mortgage
originations which we held in portfolio on the balance sheet.
Non-interest expense totaled $219.9
million, decreasing $7.5
million, or 3.3%. On an operating basis (non-GAAP),
non-interest expense totaled $217.9
million, an increase of $23.2
million, or 11.9%, compared to the first quarter of 2022.
Salaries and benefits increased $8.1
million, or 7.2%, due to annual merit increases, reduced
salary deferrals given lower loan origination volumes and the
addition of the acquired Howard and Union expense bases. Included
in salaries and employee benefits in the first quarter of 2023 and
2022 were $6.7 million and
$6.2 million, respectively, related
to normal seasonal long-term compensation expense. Net occupancy
and equipment increased $3.2 million,
or 9.0%, primarily from the acquired Howard and Union expense
bases, as well as technology-related investments. Outside services
increased $2.4 million, or 13.9%,
with higher volume-related technology and third-party costs, as
well as the acquired Howard and Union expense bases. The efficiency
ratio (non-GAAP) equaled 50.6%, compared to 60.7%, reflecting the
strong operating leverage gained from higher revenue.
The ratio of non-performing loans and OREO to total loans
and OREO decreased 2 basis points to 0.38%. Total delinquency
decreased 6 basis points to 0.60%, compared to 0.66% at
March 31, 2022, and continues to remain at a historically low
level.
The provision for credit losses was $14.1
million, compared to $18.0
million in the first quarter of 2022. The provision for
credit losses in the first quarter of 2022 included $19.1 million of initial provision for
non-purchase credit deteriorated (non-PCD) loans associated with
the Howard acquisition. The provision for credit losses for the
first quarter of 2023 was primarily due to loan growth,
CECL-related model impacts from forecasted macroeconomic
conditions, and charge-off activity. The first quarter of 2023
reflected net charge-offs of $13.2 million, or 0.18% annualized of total
average loans, compared to $1.9 million, or 0.03% annualized, in the
first quarter of 2022. While slightly elevated from the year-ago
quarter, net charge-offs remain at historically low levels and
utilized $7.9 million of
previously-established specific reserves. The allowance for credit
losses (ACL) was $403.4 million,
an increase of $32.8 million,
with the ratio of the ACL to total loans and leases decreasing 7
basis points to 1.32%, reflecting the strong loan growth.
The effective tax rate was 19.5%, compared to 20.9% in the first
quarter of 2022, driven by higher deduction levels from employee
stock compensation vesting.
The CET1 regulatory capital ratio was 10.0% (estimated) at both
March 31, 2023 and March 31, 2022. Tangible book value
per common share (non-GAAP) was $8.66
at March 31, 2023, an increase of $0.57, or 7.0%, from $8.09 at March 31, 2022. AOCI reduced the
current quarter tangible book value per common share (non-GAAP) by
$0.87, compared to a reduction of
$0.57 at the end of the year-ago
quarter, primarily due to the increase in unrealized losses on AFS
securities resulting from the higher interest rate environment.
First Quarter 2023 Results – Comparison to Prior
Quarter
(All comparisons refer to the fourth quarter of
2022, except as noted)
Net interest income totaled $336.7
million, an increase of $1.8 million, or 0.5%, from the prior
quarter total of $334.9 million,
primarily due to growth in average earning assets and benefits from
the higher interest rate environment, partially offset by two fewer
days in the quarter. The resulting net interest margin (FTE)
(non-GAAP) increased 3 basis points to 3.56%, driven by higher
yields on new loan originations, as well as the diligent management
of deposit costs. The FOMC raised the target Federal Funds interest
rate by a total of 50 basis points during the first quarter of
2023.
Total average earning assets increased $536.6 million, or 1.4%, to $38.6 billion. The total yield on earning assets
(non-GAAP) increased 39 basis points to 4.68%, due to higher yields
on loans, investment securities and interest-bearing deposits with
banks. The total cost of funds increased 38 basis points to 1.18%,
as the total cost of borrowings increased 52 basis points to 3.49%
and the cost of interest-bearing deposits increased 52 basis points
to 1.50%, partially offset by the contribution of non-interest
bearing deposits.
Average loans and leases totaled $30.4
billion, an increase of $1.0
billion, or 3.6%, as average commercial loans and leases
increased $795.4 million, or 4.3%,
and average consumer loans increased $254.3
million, or 2.4%, compared to the fourth quarter of 2022.
Average commercial loans and leases included growth of $534.1 million, or 4.9%, in commercial real
estate and $268.8 million, or
3.9%, in commercial and industrial loans. The organic quarterly
growth in commercial loans and leases was led by the Pittsburgh, Charlotte and South
Carolina markets. Consumer loan growth reflected average
residential mortgages increasing $290.3 million, or 5.7%, driven by organic
loan origination activity, reflecting growth in adjustable-rate
mortgages and the continued success of the Physicians First
mortgage program, which was partially offset by average direct home
equity installment loan balances decreasing $25.7 million, or 0.9%.
Average deposits totaled $34.2
billion, increasing $274.2
million, or 0.8%, with time deposits increasing $1.1 billion, or 33.6%, more than offsetting
the decreases in interest-bearing demand deposits of $373.1 million, or 2.5%,
non-interest-bearing deposits of $344.3 million, or 2.9%, and savings
balances of $60.1 million, or
1.5%, reflecting the shift in customers' preferences to time
deposit accounts. The loan-to-deposit ratio was 89.7% at
March 31, 2023, compared to 87.0% at December 31, 2022,
reflecting loan growth outpacing seasonally lower deposits in the
first quarter of 2023.
Non-interest income totaled $79.4
million, a $1.2 million, or
1.5%, decrease from the prior quarter. Capital markets income
decreased $3.2 million, or 32.2%, due
to lower syndications and swap fees compared to very strong levels
in the fourth quarter of 2022. Service charges decreased
$2.9 million, or 8.1%, reflecting
normal seasonality and the expected decline in overdraft and
non-sufficient fund service charges from the overdraft practice
changes that FNB implemented in the first quarter of 2023.
Insurance commissions and fees increased $3.3 million, or 72.8%, reflecting strong overall
production in the first quarter, as well as seasonal growth.
Mortgage banking operations income increased $2.1 million, or 79.1%, reflecting a 5% increase
in sold mortgage volume and improved gain on sale margins. Wealth
management increased $2.4 million, or
15.4%, to a record $18.0 million with
an increase of 18.6% in securities commissions and fees and 13.2%
in trust services.
Non-interest expense totaled $219.9
million, an increase of $8.8
million, or 4.2%. On an operating basis (non-GAAP),
non-interest expense increased $22.1
million, or 11.3%, compared to the prior quarter. Salaries
and employee benefits increased $16.7
million, or 16.1%, primarily due to normal seasonal
long-term compensation expense of $6.7
million, as well as seasonally higher employer-paid payroll
taxes, reduced salary deferrals given lower loan origination
volumes, and the addition of the acquired Union expense base. Bank
shares and franchise tax increased $2.1
million, or 105.4%, due to the recognition of state tax
credits in the prior quarter. FDIC insurance increased $1.8 million, or 33.8%, reflecting the previously
announced FDIC assessment rate increase which was effective in the
first quarter of 2023. Amortization of intangibles increased
$1.6 million, or 44.4%, related to
the Union core deposit intangible. Other non-interest expense
decreased $2.3 million, or 11.0%,
primarily from charitable contributions that qualified for
Pennsylvania bank shares tax
credits in the fourth quarter of 2022. Marketing decreased
$0.9 million, or 19.4%, due to the
timing of digital advertising spend and campaigns. The efficiency
ratio (non-GAAP) equaled 50.6%, compared to 45.8%, reflecting the
seasonally higher operating expense levels.
The ratio of non-performing loans and OREO to total loans and
OREO decreased 1 basis point to 0.38%. Total delinquency decreased
11 basis points to 0.60%, compared to 0.71% at December 31,
2022, remaining at historically low levels.
The provision for credit losses was $14.1
million, compared to $28.6
million, with the prior quarter reflecting $9.4 million of initial provision for non-PCD
loans associated with the Union acquisition. The first quarter of
2023 reflected net charge-offs of $13.2
million, or 0.18% annualized of total average loans,
compared to $11.9 million, or 0.16%
annualized. The ACL was $403.4
million, an increase of $1.7
million, with the ratio of the ACL to total loans and leases
stable at 1.32% at March 31, 2023, compared to 1.33% at
December 31, 2022.
The effective tax rate was 19.5%, compared to 20.6% for the
fourth quarter of 2022, driven by higher deduction levels from
employee stock compensation vesting.
The CET1 regulatory capital ratio was 10.0% (estimated),
increasing from 9.8% at December 31, 2022, benefiting from the
strong retained earnings growth in the quarter. Tangible book value
per common share (non-GAAP) was $8.66
at March 31, 2023, an increase of $0.39 per share from December 31, 2022. AOCI
reduced the current quarter-end tangible book value per common
share (non-GAAP) by $0.87 reflecting
unrealized losses on AFS securities caused by the higher interest
rate environment, a $0.12 improvement
compared to a reduction of $0.99 at
the end of the prior quarter.
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
share, return on average tangible equity, 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 equity to tangible assets, the
ratio of tangible common equity to tangible assets, pre-provision
net revenue, efficiency ratio, 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. When
non-GAAP financial measures are disclosed, the Securities and
Exchange Commission's (SEC) Regulation G requires: (i) the
presentation of the most directly comparable financial measure
calculated and presented in accordance with GAAP and (ii) a
reconciliation of the differences between the non-GAAP financial
measure presented and the most directly comparable financial
measure calculated and presented 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 items such as merger expenses and branch
consolidation costs are not organic to run our operations and
facilities. These items are considered significant items impacting
earnings as they are deemed to be outside of ordinary banking
activities. The merger expenses and branch consolidation costs
principally represent expenses to satisfy contractual obligations
of the acquired entity or closed branch without any useful ongoing
benefit to us. 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 the 2023 and 2022
periods were calculated using a federal statutory income tax rate
of 21%.
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 affecting
our current or future business and operations. These statements can
be considered "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve various assumptions, risks and
uncertainties which can change over time. Actual results or future
events may be different from those anticipated in our
forward-looking statements and may not align with historical
performance and events. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance upon such statements.
Forward-looking statements are typically identified by words such
as "believe," "plan," "expect," "anticipate," "intend," "outlook,"
"estimate," "forecast," "will," "should," "project," "goal," and
other similar words and expressions. We do not assume any duty to
update forward-looking statements, except as required by federal
securities laws.
FNB's forward-looking statements are subject to the following
principal risks and uncertainties:
- Our business, financial results and balance sheet values are
affected by business, economic and political circumstances,
including, but not limited to: (i) developments with respect to the
U.S. and global financial markets; (ii) actions by the Federal
Reserve Board, Federal Deposit Insurance Corporation, Consumer
Financial Protection Bureau, U.S. Treasury Department, Office of
the Comptroller of the Currency and other governmental agencies,
especially those that impact money supply, market interest rates or
otherwise affect business activities of the financial services
industry; (iii) a slowing of the U.S. economy in general and
regional and local economies within our market area; (iv) inflation
concerns; (v) the impacts of tariffs or other trade policies of the
U.S. or its global trading partners; and (vi) the sociopolitical
environment in the U.S.
- Business and operating results are affected by our ability to
identify and effectively manage risks inherent in our businesses,
including, where appropriate, through effective use of systems and
controls, third-party insurance, derivatives, and capital
management techniques, and to meet evolving regulatory capital and
liquidity standards.
- Competition can have an impact on customer acquisition, growth
and retention, and on credit spreads, deposit gathering and product
pricing, which can affect market share, loans, deposits and
revenues. Our ability to anticipate, react quickly and continue to
respond to technological changes and potential additional COVID-19
challenges can also impact our ability to respond to customer needs
and meet competitive demands.
- Business and operating results can also be affected by
widespread natural and other disasters, pandemics and post-pandemic
return to normalcy, global events, including the Ukraine-Russia conflict, shortages of labor, supply
chain disruptions and shipping delays, terrorist activities, system
failures, security breaches, significant political events,
cyber-attacks or international hostilities through impacts on the
economy and financial markets generally, or on us or our
counterparties specifically.
- Legal, regulatory and accounting developments could have an
impact on our ability to operate and grow our businesses, financial
condition, results of operations, competitive position, and
reputation. Reputational impacts could affect matters such as
business generation and retention, liquidity, funding, and the
ability to attract and retain talent. These developments could
include:
-
- Policies and priorities of the current U.S. presidential
administration, including legislative and regulatory reforms,
different approaches to supervisory or enforcement priorities,
changes affecting oversight of the financial services industry,
regulatory obligations or restrictions, consumer protection, taxes,
employee benefits, compensation practices, pension, bankruptcy and
other industry aspects, and changes in accounting policies and
principles.
- Changes to regulations or accounting standards governing bank
capital requirements, loan loss reserves and liquidity
standards.
- Changes in monetary and fiscal policies, including interest
rate policies and strategies of the FOMC.
- Unfavorable resolution of legal proceedings or other claims and
regulatory and other governmental investigations or inquiries.
These matters may result in monetary judgments or settlements,
enforcement actions or other remedies, including fines, penalties,
restitution or alterations in our business practices, and in
additional expenses and collateral costs, and may cause
reputational harm to FNB.
- Results of the regulatory examination and supervision process,
including our failure to satisfy requirements imposed by the
federal bank regulatory agencies or other governmental
agencies.
- Business and operating results are affected by our ability to
effectively identify and manage risks inherent in our businesses,
including, where appropriate, through effective use of policies,
processes, systems and controls, third-party insurance,
derivatives, and capital and liquidity management techniques.
- The impact on our financial condition, results of operations,
financial disclosures and future business strategies related to the
impact on the allowance for credit losses due to changes in
forecasted macroeconomic conditions as a result of applying the
"current expected credit loss" accounting standard, or CECL.
- A failure or disruption in or breach of our operational or
security systems or infrastructure, or those of third parties,
including as a result of cyber-attacks or campaigns.
- The COVID-19 pandemic and the federal, state, and local
regulatory and governmental actions implemented in response to
COVID-19 have resulted in increased volatility of the financial
markets and national and local economic conditions, supply chain
challenges, rising inflationary pressures, increased levels of
unemployment and business failures, and the potential to have a
material impact on, among other things, our business, financial
condition, results of operations, liquidity, or on our management,
employees, customers and critical vendors and suppliers. In view of
the many unknowns associated with the COVID-19 pandemic, our
forward-looking statements continue to be subject to various
conditions that may be substantially different in the future than
what we are currently experiencing or expecting, including, but not
limited to, challenging headwinds for the U.S. economy and labor
market and the possible change in commercial and consumer customer
fundamentals, expectations and sentiments. As a result of the
COVID-19 impact, including uncertainty regarding the potential
impact of continuing variant mutations of the virus, U.S.
government responsive measures to manage it or provide financial
relief, the uncertainty regarding its duration and the success of
vaccination efforts, it is possible the pandemic may have a
material adverse impact on our business, operations and financial
performance.
The risks identified here are not exclusive or the types of
risks FNB may confront and actual results may differ materially
from those expressed or implied as a result of these risks and
uncertainties, including, but not limited to, the risk factors and
other uncertainties described under Item 1A Risk Factors and the
Risk Management sections of our 2022 Annual Report on Form 10-K,
our subsequent 2023 Quarterly Reports on Form 10-Q (including the
risk factors and risk management discussions) and our other 2023
filings with the SEC, which are available on our corporate website
at
https://www.fnb-online.com/about-us/investor-information/reports-and-filings
or the SEC's website at www.sec.gov. More specifically, our
forward-looking statements may be subject to the evolving risks and
uncertainties related to the COVID-19 pandemic and its
macro-economic impact and the resulting governmental, business and
societal responses to it. We have included our web address as an
inactive textual reference only. Information on our website is not
part of our SEC filings.
Conference Call
F.N.B. Corporation (NYSE: FNB)
announced the financial results for the first quarter of 2023 on
Wednesday, April 19, 2023. Chairman, President and Chief
Executive Officer, Vincent J. Delie,
Jr., Chief Financial Officer, Vincent J. Calabrese, Jr., and Chief Credit
Officer, Gary L. Guerrieri, plan to
host a conference call to discuss the Company's financial results
on Thursday, April 20, 2023, at 8:30 AM
ET.
Participants are encouraged to pre-register for the conference
call at https://dpregister.com/sreg/10176840/f8b054e198. Callers
who pre-register will be provided a conference passcode and unique
PIN to bypass the live operator and gain immediate access to the
call. Participants may pre-register at any time, including up to
and after the call start time.
Dial-in Access: The conference call may be accessed by dialing
(844) 802-2440 (for domestic callers) or (412) 317-5133 (for
international callers). Participants should ask to be joined into
the F.N.B. Corporation call.
Webcast Access: The audio-only call and related presentation
materials may be accessed via webcast through the "About Us" tab of
the Corporation's website at www.fnbcorporation.com and clicking on
"Investor Relations" then "Investor Conference Calls." Access to
the live webcast will begin approximately 30 minutes prior to the
start of the call.
Presentation Materials: Presentation slides and the earnings
release will also be available on the Corporation's website at
www.fnbcorporation.com by accessing the "About Us" tab and clicking
on "Investor Relations" then "Investor Conference Calls."
A replay of the call will be available shortly after the
completion of the call until midnight ET on Friday, April 29, 2023. The replay can be
accessed by dialing 877-344-7529 (for domestic callers) or
412-317-0088 (for international callers); the conference replay
access code is 4795805. Following the call, a link to a replay of
the webcast and the related presentation materials will be posted
to the "Investor Relations" section of F.N.B. Corporation's website
at www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation (NYSE:
FNB), headquartered in Pittsburgh,
Pennsylvania, is a diversified financial services company
operating in seven states and the District of Columbia. FNB's market coverage
spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High
Point) in North Carolina;
and Charleston, South Carolina.
The Company has total assets of more than $44 billion and approximately 350 banking offices
throughout Pennsylvania,
Ohio, Maryland, West
Virginia, North Carolina,
South Carolina, Washington, D.C. and Virginia.
FNB provides a full range of commercial banking, consumer
banking and wealth management solutions through its
subsidiary network which is led by its largest affiliate, First
National Bank of Pennsylvania,
founded in 1864. Commercial banking solutions include corporate
banking, small business banking, investment real estate financing,
government banking, business credit, capital markets and lease
financing. The consumer banking segment provides a full line of
consumer banking products and services, including deposit products,
mortgage lending, consumer lending and a complete suite of mobile
and online banking services. FNB's wealth management services
include asset management, private banking and insurance.
The common stock of F.N.B. Corporation trades on the New York
Stock Exchange under the symbol "FNB" and is included in Standard
& Poor's MidCap 400 Index with the Global Industry
Classification Standard (GICS) Regional Banks Sub-Industry Index.
Customers, shareholders and investors can learn more about this
regional financial institution by visiting the F.N.B. Corporation
website at www.fnbcorporation.com.
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
(Dollars in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
1Q23
|
|
1Q23
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
|
4Q22
|
|
1Q22
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
Loans and leases,
including fees
|
$
393,993
|
|
$
356,980
|
|
$
221,323
|
|
10.4
|
|
78.0
|
Securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
35,713
|
|
34,844
|
|
24,023
|
|
2.5
|
|
48.7
|
Tax-exempt
|
7,144
|
|
6,762
|
|
6,727
|
|
5.6
|
|
6.2
|
Other
|
6,653
|
|
9,296
|
|
1,507
|
|
(28.4)
|
|
341.5
|
Total Interest
Income
|
443,503
|
|
407,882
|
|
253,580
|
|
8.7
|
|
74.9
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
84,092
|
|
54,611
|
|
7,685
|
|
54.0
|
|
994.2
|
Short-term
borrowings
|
9,744
|
|
6,838
|
|
5,802
|
|
42.5
|
|
67.9
|
Long-term
borrowings
|
13,013
|
|
11,544
|
|
6,017
|
|
12.7
|
|
116.3
|
Total Interest
Expense
|
106,849
|
|
72,993
|
|
19,504
|
|
46.4
|
|
447.8
|
Net Interest
Income
|
336,654
|
|
334,889
|
|
234,076
|
|
0.5
|
|
43.8
|
Provision for credit
losses
|
14,061
|
|
28,637
|
|
17,959
|
|
(50.9)
|
|
(21.7)
|
Net Interest Income
After
Provision for
Credit Losses
|
322,593
|
|
306,252
|
|
216,117
|
|
5.3
|
|
49.3
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
Service
charges
|
32,640
|
|
35,536
|
|
31,515
|
|
(8.1)
|
|
3.6
|
Trust
services
|
10,611
|
|
9,371
|
|
10,349
|
|
13.2
|
|
2.5
|
Insurance commissions
and fees
|
7,787
|
|
4,506
|
|
7,605
|
|
72.8
|
|
2.4
|
Securities commissions
and fees
|
7,382
|
|
6,225
|
|
5,691
|
|
18.6
|
|
29.7
|
Capital markets
income
|
6,793
|
|
10,016
|
|
7,127
|
|
(32.2)
|
|
(4.7)
|
Mortgage banking
operations
|
4,855
|
|
2,711
|
|
6,667
|
|
79.1
|
|
(27.2)
|
Dividends on
non-marketable equity securities
|
4,108
|
|
3,775
|
|
2,150
|
|
8.8
|
|
91.1
|
Bank owned life
insurance
|
2,825
|
|
2,612
|
|
2,642
|
|
8.2
|
|
6.9
|
Other
|
2,388
|
|
5,861
|
|
4,576
|
|
(59.3)
|
|
(47.8)
|
Total Non-Interest
Income
|
79,389
|
|
80,613
|
|
78,322
|
|
(1.5)
|
|
1.4
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
120,247
|
|
103,558
|
|
112,189
|
|
16.1
|
|
7.2
|
Net
occupancy
|
17,370
|
|
18,635
|
|
18,189
|
|
(6.8)
|
|
(4.5)
|
Equipment
|
22,072
|
|
20,327
|
|
18,005
|
|
8.6
|
|
22.6
|
Amortization of
intangibles
|
5,119
|
|
3,545
|
|
3,227
|
|
44.4
|
|
58.6
|
Outside
services
|
19,398
|
|
19,655
|
|
17,033
|
|
(1.3)
|
|
13.9
|
Marketing
|
3,701
|
|
4,594
|
|
3,256
|
|
(19.4)
|
|
13.7
|
FDIC
insurance
|
7,119
|
|
5,322
|
|
4,574
|
|
33.8
|
|
55.6
|
Bank shares and
franchise taxes
|
4,172
|
|
2,031
|
|
4,027
|
|
105.4
|
|
3.6
|
Merger-related
|
2,052
|
|
12,498
|
|
28,629
|
|
(83.6)
|
|
(92.8)
|
Other
|
18,667
|
|
20,970
|
|
18,297
|
|
(11.0)
|
|
2.0
|
Total Non-Interest
Expense
|
219,917
|
|
211,135
|
|
227,426
|
|
4.2
|
|
(3.3)
|
Income Before Income
Taxes
|
182,065
|
|
175,730
|
|
67,013
|
|
3.6
|
|
171.7
|
Income taxes
|
35,560
|
|
36,259
|
|
14,015
|
|
(1.9)
|
|
153.7
|
Net
Income
|
146,505
|
|
139,471
|
|
52,998
|
|
5.0
|
|
176.4
|
Preferred stock
dividends
|
2,010
|
|
2,011
|
|
2,010
|
|
—
|
|
—
|
Net Income
Available to Common Stockholders
|
$
144,495
|
|
$
137,460
|
|
$
50,988
|
|
5.1
|
|
183.4
|
Earnings per Common
Share
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.40
|
|
$ 0.39
|
|
$ 0.15
|
|
2.6
|
|
166.7
|
Diluted
|
0.40
|
|
0.38
|
|
0.15
|
|
5.3
|
|
166.7
|
Cash Dividends per
Common Share
|
0.12
|
|
0.12
|
|
0.12
|
|
—
|
|
—
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
1Q23
|
|
1Q23
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
|
4Q22
|
|
1Q22
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
445
|
|
$
443
|
|
$
436
|
|
0.5
|
|
2.1
|
Interest-bearing
deposits with banks
|
1,278
|
|
1,231
|
|
3,421
|
|
3.8
|
|
(62.6)
|
Cash and Cash
Equivalents
|
1,723
|
|
1,674
|
|
3,857
|
|
2.9
|
|
(55.3)
|
Securities available
for sale
|
3,201
|
|
3,275
|
|
3,446
|
|
(2.3)
|
|
(7.1)
|
Securities held to
maturity
|
4,073
|
|
4,087
|
|
3,513
|
|
(0.3)
|
|
15.9
|
Loans held for
sale
|
100
|
|
124
|
|
253
|
|
(19.4)
|
|
(60.5)
|
Loans and leases, net
of unearned income
|
30,673
|
|
30,255
|
|
26,839
|
|
1.4
|
|
14.3
|
Allowance for credit
losses on loans and leases
|
(403)
|
|
(402)
|
|
(371)
|
|
0.2
|
|
8.6
|
Net Loans and
Leases
|
30,270
|
|
29,853
|
|
26,468
|
|
1.4
|
|
14.4
|
Premises and equipment,
net
|
452
|
|
432
|
|
394
|
|
4.6
|
|
14.7
|
Goodwill
|
2,477
|
|
2,477
|
|
2,434
|
|
—
|
|
1.8
|
Core deposit and other
intangible assets, net
|
84
|
|
89
|
|
59
|
|
(5.6)
|
|
42.4
|
Bank owned life
insurance
|
655
|
|
653
|
|
627
|
|
0.3
|
|
4.5
|
Other assets
|
1,111
|
|
1,061
|
|
971
|
|
4.7
|
|
14.4
|
Total
Assets
|
$
44,146
|
|
$
43,725
|
|
$
42,022
|
|
1.0
|
|
5.1
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand
|
$
11,297
|
|
$
11,916
|
|
$
11,729
|
|
(5.2)
|
|
(3.7)
|
Interest-bearing
demand
|
14,091
|
|
15,100
|
|
15,256
|
|
(6.7)
|
|
(7.6)
|
Savings
|
4,053
|
|
4,142
|
|
3,970
|
|
(2.1)
|
|
2.1
|
Certificates and other
time deposits
|
4,749
|
|
3,612
|
|
2,949
|
|
31.5
|
|
61.0
|
Total
Deposits
|
34,190
|
|
34,770
|
|
33,904
|
|
(1.7)
|
|
0.8
|
Short-term
borrowings
|
2,149
|
|
1,372
|
|
1,425
|
|
56.6
|
|
50.8
|
Long-term
borrowings
|
1,298
|
|
1,093
|
|
713
|
|
18.8
|
|
82.0
|
Other
liabilities
|
721
|
|
837
|
|
541
|
|
(13.9)
|
|
33.3
|
Total
Liabilities
|
38,358
|
|
38,072
|
|
36,583
|
|
0.8
|
|
4.9
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
107
|
|
107
|
|
107
|
|
—
|
|
—
|
Common stock
|
4
|
|
4
|
|
4
|
|
—
|
|
—
|
Additional paid-in
capital
|
4,693
|
|
4,696
|
|
4,560
|
|
(0.1)
|
|
2.9
|
Retained
earnings
|
1,471
|
|
1,370
|
|
1,118
|
|
7.4
|
|
31.6
|
Accumulated other
comprehensive loss
|
(315)
|
|
(357)
|
|
(202)
|
|
(11.8)
|
|
55.9
|
Treasury
stock
|
(172)
|
|
(167)
|
|
(148)
|
|
3.0
|
|
16.2
|
Total Stockholders'
Equity
|
5,788
|
|
5,653
|
|
5,439
|
|
2.4
|
|
6.4
|
Total Liabilities
and Stockholders' Equity
|
$
44,146
|
|
$
43,725
|
|
$
42,022
|
|
1.0
|
|
5.1
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
(Dollars in
thousands)
|
|
|
|
Interest
|
|
|
|
|
|
Interest
|
|
|
|
|
|
Interest
|
|
|
(Unaudited)
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
$ 817,910
|
|
$
6,653
|
|
3.30 %
|
|
$
1,309,760
|
|
$
9,268
|
|
2.81 %
|
|
$
3,105,599
|
|
$
1,507
|
|
0.20 %
|
Federal funds
sold
|
|
—
|
|
—
|
|
—
|
|
1,984
|
|
29
|
|
5.81
|
|
—
|
|
—
|
|
—
|
Taxable investment
securities (2)
|
|
6,214,311
|
|
35,476
|
|
2.28
|
|
6,255,161
|
|
34,597
|
|
2.21
|
|
5,930,948
|
|
23,785
|
|
1.60
|
Non-taxable investment
securities (1)
|
|
1,055,189
|
|
9,159
|
|
3.47
|
|
1,017,886
|
|
8,729
|
|
3.43
|
|
1,025,284
|
|
8,732
|
|
3.41
|
Loans held for
sale
|
|
116,164
|
|
1,594
|
|
5.51
|
|
131,916
|
|
1,916
|
|
5.80
|
|
259,362
|
|
2,392
|
|
3.70
|
Loans and leases
(1) (3)
|
|
30,410,376
|
|
393,895
|
|
5.24
|
|
29,360,681
|
|
356,461
|
|
4.82
|
|
26,238,804
|
|
219,762
|
|
3.39
|
Total Interest
Earning Assets (1)
|
|
38,613,950
|
|
446,777
|
|
4.68
|
|
38,077,388
|
|
411,000
|
|
4.29
|
|
36,559,997
|
|
256,178
|
|
2.83
|
Cash and due from
banks
|
|
442,712
|
|
|
|
|
|
437,525
|
|
|
|
|
|
410,716
|
|
|
|
|
Allowance for credit
losses
|
|
(405,705)
|
|
|
|
|
|
(392,354)
|
|
|
|
|
|
(360,392)
|
|
|
|
|
Premises and
equipment
|
|
442,441
|
|
|
|
|
|
429,411
|
|
|
|
|
|
378,090
|
|
|
|
|
Other assets
|
|
4,328,511
|
|
|
|
|
|
4,199,369
|
|
|
|
|
|
4,132,660
|
|
|
|
|
Total
Assets
|
|
$
43,421,909
|
|
|
|
|
|
$
42,751,339
|
|
|
|
|
|
$ 41,121,071
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
$
14,596,006
|
|
52,278
|
|
1.45
|
|
$
14,969,143
|
|
40,684
|
|
1.08
|
|
$ 14,919,488
|
|
3,416
|
|
0.09
|
Savings
|
|
4,023,568
|
|
7,853
|
|
0.79
|
|
4,083,662
|
|
5,406
|
|
0.53
|
|
3,875,020
|
|
143
|
|
0.01
|
Certificates and other
time
|
|
4,182,700
|
|
23,961
|
|
2.32
|
|
3,130,927
|
|
8,521
|
|
1.08
|
|
2,944,377
|
|
4,126
|
|
0.57
|
Total interest-bearing
deposits
|
|
22,802,274
|
|
84,092
|
|
1.50
|
|
22,183,732
|
|
54,611
|
|
0.98
|
|
21,738,885
|
|
7,685
|
|
0.14
|
Short-term
borrowings
|
|
1,561,343
|
|
9,744
|
|
2.53
|
|
1,389,753
|
|
6,838
|
|
1.95
|
|
1,509,971
|
|
5,802
|
|
1.56
|
Long-term
borrowings
|
|
1,082,040
|
|
13,013
|
|
4.88
|
|
1,066,962
|
|
11,544
|
|
4.29
|
|
709,817
|
|
6,017
|
|
3.44
|
Total
Interest-Bearing Liabilities
|
|
25,445,657
|
|
106,849
|
|
1.70
|
|
24,640,447
|
|
72,993
|
|
1.18
|
|
23,958,673
|
|
19,504
|
|
0.33
|
Non-interest-bearing
demand deposits
|
|
11,410,506
|
|
|
|
|
|
11,754,813
|
|
|
|
|
|
11,255,917
|
|
|
|
|
Total Deposits and
Borrowings
|
|
36,856,163
|
|
|
|
1.18
|
|
36,395,260
|
|
|
|
0.80
|
|
35,214,590
|
|
|
|
0.22
|
Other
liabilities
|
|
834,106
|
|
|
|
|
|
847,462
|
|
|
|
|
|
457,587
|
|
|
|
|
Total
Liabilities
|
|
37,690,269
|
|
|
|
|
|
37,242,722
|
|
|
|
|
|
35,672,177
|
|
|
|
|
Stockholders'
Equity
|
|
5,731,640
|
|
|
|
|
|
5,508,617
|
|
|
|
|
|
5,448,894
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
43,421,909
|
|
|
|
|
|
$
42,751,339
|
|
|
|
|
|
$ 41,121,071
|
|
|
|
|
Net Interest Earning
Assets
|
|
$
13,168,293
|
|
|
|
|
|
$
13,436,941
|
|
|
|
|
|
$ 12,601,324
|
|
|
|
|
Net Interest Income
(FTE) (1)
|
|
|
|
339,928
|
|
|
|
|
|
338,007
|
|
|
|
|
|
236,674
|
|
|
Tax Equivalent
Adjustment
|
|
|
|
(3,274)
|
|
|
|
|
|
(3,118)
|
|
|
|
|
|
(2,598)
|
|
|
Net Interest
Income
|
|
|
|
$
336,654
|
|
|
|
|
|
$
334,889
|
|
|
|
|
|
$
234,076
|
|
|
Net Interest
Spread
|
|
|
|
|
|
2.98 %
|
|
|
|
|
|
3.11 %
|
|
|
|
|
|
2.50 %
|
Net Interest
Margin (1)
|
|
|
|
|
|
3.56 %
|
|
|
|
|
|
3.53 %
|
|
|
|
|
|
2.61 %
|
(1)
|
The net interest margin
and yield on earning assets (all non-GAAP measures) are presented
on a fully taxable equivalent (FTE) basis, which adjusts for the
tax benefit of income on certain tax-exempt loans and investments
using the federal statutory tax rate of 21%.
|
(2)
|
The average balances
and yields earned on taxable investment securities are based on
historical cost.
|
(3)
|
Average balances for
loans include non-accrual loans. Loans and leases consist of
average total loans and leases less average unearned
income.
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
Performance
Ratios
|
|
|
|
|
|
Return on average
equity
|
10.37 %
|
|
10.04 %
|
|
3.94 %
|
Return on average
tangible equity (1)
|
19.27
|
|
18.78
|
|
7.50
|
Return on average
tangible
common equity
(1)
|
19.68
|
|
19.19
|
|
7.49
|
Return on average
assets
|
1.37
|
|
1.29
|
|
0.52
|
Return on average
tangible assets (1)
|
1.49
|
|
1.40
|
|
0.58
|
Net interest margin
(FTE) (2)
|
3.56
|
|
3.53
|
|
2.61
|
Yield on earning assets
(FTE) (2)
|
4.68
|
|
4.29
|
|
2.83
|
Cost of
interest-bearing deposits
|
1.50
|
|
0.98
|
|
0.14
|
Cost of
interest-bearing liabilities
|
1.70
|
|
1.18
|
|
0.33
|
Cost of
funds
|
1.18
|
|
0.80
|
|
0.22
|
Efficiency ratio
(1)
|
50.60
|
|
45.82
|
|
60.66
|
Effective tax
rate
|
19.53
|
|
20.63
|
|
20.91
|
Capital
Ratios
|
|
|
|
|
|
Equity / assets (period
end)
|
13.11
|
|
12.93
|
|
12.94
|
Common equity / assets
(period end)
|
12.87
|
|
12.68
|
|
12.69
|
Common equity tier 1
(3)
|
10.0
|
|
9.8
|
|
10.0
|
Leverage
ratio
|
8.70
|
|
8.64
|
|
8.28
|
Tangible equity /
tangible assets
(period end)
(1)
|
7.76
|
|
7.50
|
|
7.45
|
Tangible common equity
/ tangible assets (period end) (1)
|
7.50
|
|
7.24
|
|
7.18
|
Common Stock
Data
|
|
|
|
|
|
Average diluted common
shares outstanding
|
364,930,288
|
|
357,790,766
|
|
348,926,046
|
Period end common
shares outstanding
|
360,359,857
|
|
360,470,110
|
|
350,911,030
|
Book value per common
share
|
$
15.76
|
|
$
15.39
|
|
$
15.19
|
Tangible book value per
common share (1)
|
8.66
|
|
8.27
|
|
8.09
|
Dividend payout ratio
(common)
|
30.30 %
|
|
30.98 %
|
|
83.74 %
|
(1)
|
See non-GAAP financial
measures section of this Press Release for additional information
relating to the calculation of this item.
|
(2)
|
The net interest margin
and yield on earning assets (all non-GAAP measures) are presented
on a fully taxable equivalent (FTE) basis, which adjusts for the
tax benefit of income on certain tax-exempt loans and investments
using the federal statutory tax rate of 21%.
|
(3)
|
March 31,
2023 Common Equity Tier 1 ratio is
an estimate and reflects the election of a five-year transition to
delay the full impact of CECL on regulatory capital for two years,
followed by a three-year transition period.
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
1Q23
|
|
1Q23
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
|
4Q22
|
|
1Q22
|
Balances at period
end
|
|
|
|
|
|
|
|
|
|
Loans and
Leases:
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
11,528
|
|
$
11,526
|
|
$
10,746
|
|
—
|
|
7.3
|
Commercial and
industrial
|
7,246
|
|
7,131
|
|
6,220
|
|
1.6
|
|
16.5
|
Commercial
leases
|
562
|
|
519
|
|
471
|
|
8.3
|
|
19.3
|
Other
|
176
|
|
114
|
|
144
|
|
54.4
|
|
22.2
|
Commercial loans and
leases
|
19,512
|
|
19,290
|
|
17,581
|
|
1.2
|
|
11.0
|
Direct
installment
|
2,752
|
|
2,784
|
|
2,568
|
|
(1.1)
|
|
7.2
|
Residential
mortgages
|
5,589
|
|
5,297
|
|
4,188
|
|
5.5
|
|
33.5
|
Indirect
installment
|
1,525
|
|
1,553
|
|
1,216
|
|
(1.8)
|
|
25.4
|
Consumer LOC
|
1,295
|
|
1,331
|
|
1,286
|
|
(2.7)
|
|
0.7
|
Consumer
loans
|
11,161
|
|
10,965
|
|
9,258
|
|
1.8
|
|
20.6
|
Total loans and
leases
|
$
30,673
|
|
$
30,255
|
|
$
26,839
|
|
1.4
|
|
14.3
|
Note: Loans held for
sale were $100, $124 and $253 at 1Q23, 4Q22, and 1Q22,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Variance
|
Average
balances
|
|
|
|
|
|
|
1Q23
|
|
1Q23
|
Loans and
Leases:
|
1Q23
|
|
4Q22
|
|
1Q22
|
|
4Q22
|
|
1Q22
|
Commercial real
estate
|
$
11,519
|
|
$
10,985
|
|
$
10,558
|
|
4.9
|
|
9.1
|
Commercial and
industrial
|
7,189
|
|
6,920
|
|
6,098
|
|
3.9
|
|
17.9
|
Commercial
leases
|
534
|
|
504
|
|
482
|
|
5.9
|
|
10.7
|
Other
|
131
|
|
168
|
|
113
|
|
(22.1)
|
|
15.7
|
Commercial loans and
leases
|
19,373
|
|
18,577
|
|
17,252
|
|
4.3
|
|
12.3
|
Direct
installment
|
2,763
|
|
2,789
|
|
2,480
|
|
(0.9)
|
|
11.4
|
Residential
mortgages
|
5,423
|
|
5,132
|
|
4,016
|
|
5.7
|
|
35.0
|
Indirect
installment
|
1,540
|
|
1,544
|
|
1,214
|
|
(0.2)
|
|
26.8
|
Consumer LOC
|
1,312
|
|
1,318
|
|
1,276
|
|
(0.5)
|
|
2.8
|
Consumer
loans
|
11,038
|
|
10,783
|
|
8,987
|
|
2.4
|
|
22.8
|
Total loans and
leases
|
$
30,410
|
|
$
29,361
|
|
$
26,239
|
|
3.6
|
|
15.9
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
% Variance
|
(Unaudited)
|
|
|
|
|
|
|
1Q23
|
|
1Q23
|
Asset Quality
Data
|
1Q23
|
|
4Q22
|
|
1Q22
|
|
4Q22
|
|
1Q22
|
Non-Performing
Assets
|
|
|
|
|
|
|
|
|
|
Non-performing
loans
|
$
113
|
|
$
113
|
|
$
102
|
|
—
|
|
10.8
|
Other real estate owned
(OREO)
|
6
|
|
6
|
|
8
|
|
—
|
|
(25.0)
|
Non-performing
assets
|
$
119
|
|
$
119
|
|
$
110
|
|
—
|
|
8.2
|
Non-performing loans /
total loans and leases
|
0.37 %
|
|
0.37 %
|
|
0.38 %
|
|
|
|
|
Non-performing assets +
90 days past due / total loans and leases + OREO
|
0.41
|
|
0.44
|
|
0.44
|
|
|
|
|
Delinquency
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
63
|
|
$ 91
|
|
$ 68
|
|
(30.8)
|
|
(7.4)
|
Loans 90+ days past
due
|
7
|
|
12
|
|
9
|
|
(41.7)
|
|
(22.2)
|
Non-accrual
loans
|
113
|
|
113
|
|
102
|
|
—
|
|
10.8
|
Past due and
non-accrual loans
|
$
183
|
|
$
216
|
|
$
179
|
|
(15.3)
|
|
2.2
|
Past due and
non-accrual loans / total loans and leases
|
0.60 %
|
|
0.71 %
|
|
0.66 %
|
|
|
|
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
% Variance
|
(Unaudited)
|
|
|
|
|
|
|
1Q23
|
|
1Q23
|
Allowance on Loans
and Leases and Allowance for Unfunded Loan Commitments
Rollforward
|
1Q23
|
|
4Q22
|
|
1Q22
|
|
4Q22
|
|
1Q22
|
Allowance for Credit
Losses on Loans and Leases
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
401.7
|
|
$
385.3
|
|
$
344.3
|
|
4.2
|
|
16.7
|
Provision for credit
losses
|
14.9
|
|
26.5
|
|
18.2
|
|
(43.8)
|
|
(18.3)
|
Net loan
(charge-offs)/recoveries
|
(13.2)
|
|
(11.9)
|
|
(1.9)
|
|
10.9
|
|
599.0
|
Allowance for
purchased credit deteriorated (PCD) loans and leases at
acquisition
|
—
|
|
1.8
|
|
10.0
|
|
|
|
|
Allowance for
credit losses on loans and leases
|
$
403.4
|
|
$
401.7
|
|
$
370.6
|
|
0.4
|
|
8.8
|
Allowance for
Unfunded Loan Commitments
|
|
|
|
|
|
|
|
|
|
Allowance for unfunded
loan commitments balance at beginning of period
|
$
21.4
|
|
$
19.4
|
|
$
19.2
|
|
10.5
|
|
11.6
|
Provision (reduction
in allowance) for unfunded loan commitments / other
adjustments
|
(0.9)
|
|
2.0
|
|
(0.3)
|
|
(145.7)
|
|
172.1
|
Allowance for
unfunded loan commitments
|
$
20.5
|
|
$
21.4
|
|
$
18.8
|
|
(4.3)
|
|
8.7
|
Total allowance for
credit losses on loans and leases and allowance for unfunded loan
commitments
|
$
423.9
|
|
$
423.1
|
|
$
389.5
|
|
0.2
|
|
8.8
|
Allowance for credit
losses on loans and leases / total loans and leases
|
1.32 %
|
|
1.33 %
|
|
1.38 %
|
|
|
|
|
Allowance for credit
losses on loans and leases / total non-performing loans
|
356.1
|
|
354.3
|
|
365.0
|
|
|
|
|
Net loan charge-offs
(annualized) / total average loans and leases
|
0.18
|
|
0.16
|
|
0.03
|
|
|
|
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS TO
GAAP
|
We believe the
following non-GAAP financial measures provide information useful to
investors in understanding our operating performance and trends,
and
facilitate comparisons with the performance of our peers. The
non-GAAP financial measures we use may differ from the non-GAAP
financial measures other
financial institutions use to measure their results of
operations. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for,
our reported results prepared in accordance with U.S. GAAP. The
following tables summarize the non-GAAP financial measures included
in this press release
and derived from amounts reported in our financial
statements.
|
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
1Q23
|
|
1Q23
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
|
4Q22
|
|
1Q22
|
Operating net income
available to common stockholders:
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
144,495
|
|
$
137,460
|
|
$
50,988
|
|
|
|
|
Merger-related
expense
|
2,052
|
|
12,498
|
|
28,629
|
|
|
|
|
Tax benefit of
merger-related expense
|
(431)
|
|
(2,624)
|
|
(6,012)
|
|
|
|
|
Provision expense
related to acquisitions
|
—
|
|
9,388
|
|
19,127
|
|
|
|
|
Tax benefit of
provision expense related to acquisitions
|
—
|
|
(1,971)
|
|
(4,017)
|
|
|
|
|
Branch consolidation
costs
|
—
|
|
2,838
|
|
4,178
|
|
|
|
|
Tax benefit of branch
consolidation costs
|
—
|
|
(596)
|
|
(877)
|
|
|
|
|
Operating net income
available to common stockholders (non-GAAP)
|
$
146,116
|
|
$
156,993
|
|
$
92,016
|
|
(6.9)
|
|
58.8
|
|
|
|
|
|
|
|
|
|
|
Operating earnings per
diluted common share:
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
common share
|
$ 0.40
|
|
$ 0.38
|
|
$ 0.15
|
|
|
|
|
Merger-related
expense
|
0.01
|
|
0.03
|
|
0.08
|
|
|
|
|
Tax benefit of
merger-related expense
|
—
|
|
(0.01)
|
|
(0.02)
|
|
|
|
|
Provision expense
related to acquisitions
|
—
|
|
0.03
|
|
0.05
|
|
|
|
|
Tax benefit of
provision expense related to acquisitions
|
—
|
|
(0.01)
|
|
(0.01)
|
|
|
|
|
Branch consolidation
costs
|
—
|
|
0.01
|
|
0.01
|
|
|
|
|
Tax benefit of branch
consolidation costs
|
—
|
|
—
|
|
—
|
|
|
|
|
Operating earnings per
diluted common share (non-GAAP)
|
$ 0.40
|
|
$ 0.44
|
|
$ 0.26
|
|
(9.1)
|
|
53.8
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
Return on average
tangible equity:
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Net income
(annualized)
|
$ 594,159
|
|
$ 553,337
|
|
$ 214,935
|
Amortization of
intangibles, net of tax (annualized)
|
16,402
|
|
11,110
|
|
10,339
|
Tangible net income
(annualized) (non-GAAP)
|
$ 610,561
|
|
$ 564,447
|
|
$ 225,274
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
5,731,640
|
|
$
5,508,617
|
|
$
5,448,894
|
Less: Average
intangible assets (1)
|
(2,563,569)
|
|
(2,502,697)
|
|
(2,444,395)
|
Average tangible
stockholders' equity (non-GAAP)
|
$
3,168,071
|
|
$
3,005,920
|
|
$
3,004,499
|
|
|
|
|
|
|
Return on average
tangible equity (non-GAAP)
|
19.27 %
|
|
18.78 %
|
|
7.50 %
|
Return on average
tangible common equity:
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Net income available to
common stockholders (annualized)
|
$ 586,007
|
|
$ 545,358
|
|
$ 206,787
|
Amortization of
intangibles, net of tax (annualized)
|
16,402
|
|
11,110
|
|
10,339
|
Tangible net income
available to common stockholders (annualized) (non-GAAP)
|
$ 602,409
|
|
$ 556,468
|
|
$ 217,126
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
5,731,640
|
|
$
5,508,617
|
|
$
5,448,894
|
Less: Average
preferred stockholders' equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Average
intangible assets (1)
|
(2,563,569)
|
|
(2,502,697)
|
|
(2,444,395)
|
Average tangible common
equity (non-GAAP)
|
$
3,061,189
|
|
$
2,899,038
|
|
$
2,897,617
|
|
|
|
|
|
|
Return on average
tangible common equity
(non-GAAP)
|
19.68 %
|
|
19.19 %
|
|
7.49 %
|
Operating return on
average tangible common equity:
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Operating net income
available to common stockholders (annualized)
|
$ 592,582
|
|
$ 622,853
|
|
$ 373,176
|
Amortization of
intangibles, net of tax (annualized)
|
16,402
|
|
11,110
|
|
10,339
|
Tangible operating net
income available to common stockholders (annualized)
(non-GAAP)
|
$ 608,984
|
|
$ 633,963
|
|
$ 383,515
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
5,731,640
|
|
$
5,508,617
|
|
$
5,448,894
|
Less: Average
preferred stockholders' equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Average
intangible assets (1)
|
(2,563,569)
|
|
(2,502,697)
|
|
(2,444,395)
|
Average tangible common
equity (non-GAAP)
|
$
3,061,189
|
|
$
2,899,038
|
|
$
2,897,617
|
|
|
|
|
|
|
Operating return on
average tangible common equity (non-GAAP)
|
19.89 %
|
|
21.87 %
|
|
13.24 %
|
Return on average
tangible assets:
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Net income
(annualized)
|
$ 594,159
|
|
$ 553,337
|
|
$ 214,935
|
Amortization of
intangibles, net of tax (annualized)
|
16,402
|
|
11,110
|
|
10,339
|
Tangible net income
(annualized) (non-GAAP)
|
$ 610,561
|
|
$ 564,447
|
|
$ 225,274
|
|
|
|
|
|
|
Average total
assets
|
$
43,421,909
|
|
$
42,751,339
|
|
$
41,121,071
|
Less: Average
intangible assets (1)
|
(2,563,569)
|
|
(2,502,697)
|
|
(2,444,395)
|
Average tangible assets
(non-GAAP)
|
$
40,858,340
|
|
$
40,248,642
|
|
$
38,676,676
|
|
|
|
|
|
|
Return on average
tangible assets (non-GAAP)
|
1.49 %
|
|
1.40 %
|
|
0.58 %
|
(1) Excludes loan
servicing rights.
|
|
|
|
|
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
Tangible book value per
common share:
|
|
|
|
|
|
(Dollars in thousands,
except per share data)
|
|
|
|
|
|
Total stockholders'
equity
|
$
5,787,383
|
|
$
5,653,364
|
|
$
5,438,595
|
Less: Preferred
stockholders' equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Intangible
assets (1)
|
(2,561,216)
|
|
(2,566,029)
|
|
(2,492,359)
|
Tangible common equity
(non-GAAP)
|
$
3,119,285
|
|
$
2,980,453
|
|
$
2,839,354
|
|
|
|
|
|
|
Common shares
outstanding
|
360,359,857
|
|
360,470,110
|
|
350,911,030
|
|
|
|
|
|
|
Tangible book value per
common share (non-GAAP)
|
$
8.66
|
|
$
8.27
|
|
$
8.09
|
Tangible equity /
tangible assets (period end):
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Total stockholders'
equity
|
$
5,787,383
|
|
$
5,653,364
|
|
$
5,438,595
|
Less: Intangible
assets (1)
|
(2,561,216)
|
|
(2,566,029)
|
|
(2,492,359)
|
Tangible equity
(non-GAAP)
|
$
3,226,167
|
|
$
3,087,335
|
|
$
2,946,236
|
|
|
|
|
|
|
Total assets
|
$
44,145,664
|
|
$
43,724,973
|
|
$
42,021,887
|
Less: Intangible
assets (1)
|
(2,561,216)
|
|
(2,566,029)
|
|
(2,492,359)
|
Tangible assets
(non-GAAP)
|
$
41,584,448
|
|
$
41,158,944
|
|
$
39,529,528
|
|
|
|
|
|
|
Tangible equity /
tangible assets (period end) (non-GAAP)
|
7.76 %
|
|
7.50 %
|
|
7.45 %
|
Tangible common equity
/ tangible assets (period end):
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Total stockholders'
equity
|
$
5,787,383
|
|
$
5,653,364
|
|
$
5,438,595
|
Less: Preferred
stockholders' equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Intangible
assets (1)
|
(2,561,216)
|
|
(2,566,029)
|
|
(2,492,359)
|
Tangible common equity
(non-GAAP)
|
$
3,119,285
|
|
$
2,980,453
|
|
$
2,839,354
|
|
|
|
|
|
|
Total assets
|
$
44,145,664
|
|
$
43,724,973
|
|
$
42,021,887
|
Less: Intangible
assets (1)
|
(2,561,216)
|
|
(2,566,029)
|
|
(2,492,359)
|
Tangible assets
(non-GAAP)
|
$
41,584,448
|
|
$
41,158,944
|
|
$
39,529,528
|
|
|
|
|
|
|
Tangible common equity
/ tangible assets (period end) (non-GAAP)
|
7.50 %
|
|
7.24 %
|
|
7.18 %
|
(1) Excludes loan
servicing rights.
|
|
|
|
|
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q23
|
|
4Q22
|
|
1Q22
|
KEY PERFORMANCE
INDICATORS
|
|
|
|
|
|
Pre-provision net
revenue:
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Net interest
income
|
$
336,654
|
|
$
334,889
|
|
$
234,076
|
Non-interest
income
|
79,389
|
|
80,613
|
|
78,322
|
Less: Non-interest
expense
|
(219,917)
|
|
(211,135)
|
|
(227,426)
|
Pre-provision net
revenue (as reported)
|
$
196,126
|
|
$
204,367
|
|
$ 84,972
|
Pre-provision net
revenue (as reported) (annualized)
|
$
795,398
|
|
$
810,804
|
|
$
344,608
|
Adjustments:
|
|
|
|
|
|
Add: Merger-related
expense (non-interest expense)
|
2,052
|
|
12,498
|
|
28,629
|
Add: Branch
consolidation costs (non-interest expense)
|
—
|
|
2,838
|
|
4,178
|
Operating pre-provision
net revenue (non-GAAP)
|
$
198,178
|
|
$
219,703
|
|
$
117,779
|
Operating pre-provision
net revenue (annualized) (non-GAAP)
|
$
803,721
|
|
$
871,647
|
|
$
477,659
|
|
|
|
|
|
|
Efficiency ratio
(FTE):
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Total non-interest
expense
|
$
219,917
|
|
$
211,135
|
|
$
227,426
|
Less:
Amortization of intangibles
|
(5,119)
|
|
(3,545)
|
|
(3,227)
|
Less: OREO
expense
|
(557)
|
|
(459)
|
|
(315)
|
Less: Merger-related expense
|
(2,052)
|
|
(12,498)
|
|
(28,629)
|
Less: Branch
consolidation costs
|
—
|
|
(2,838)
|
|
(4,178)
|
Adjusted non-interest
expense
|
$
212,189
|
|
$
191,795
|
|
$
191,077
|
|
|
|
|
|
|
Net interest
income
|
$
336,654
|
|
$
334,889
|
|
$
234,076
|
Taxable equivalent
adjustment
|
3,274
|
|
3,118
|
|
2,598
|
Non-interest
income
|
79,389
|
|
80,613
|
|
78,322
|
Less: Net
securities gains
|
17
|
|
—
|
|
—
|
Adjusted net interest
income (FTE) + non-interest income
|
$
419,334
|
|
$
418,620
|
|
$
314,996
|
|
|
|
|
|
|
Efficiency ratio (FTE)
(non-GAAP)
|
50.60 %
|
|
45.82 %
|
|
60.66 %
|
(1) Excludes loan
servicing rights.
|
|
|
|
|
|
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