 Vincent J. Delie, Jr.
President and Chief Executive Officer
Vincent J. Calabrese, Jr.
Chief Financial Officer
F.N.B. Corporation
Investor Presentation
Second Quarter 2012
Dated: September 13, 2012
Exhibit 99.1 |
 Cautionary Statement Regarding Forward-Looking Information
and Non-GAAP Financial Information
2
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 the banking industry and, specifically, the financial operations, markets and
products of F.N.B. Corporation. These forward-looking statements involve certain risks and
uncertainties. There are a number of important factors that could cause F.N.B.
Corporation’s future results to differ materially from historical performance or projected performance. These
factors include, but are not limited to: (1) a significant increase in competitive pressures
among financial institutions; (2) changes in the interest rate environment that may
reduce interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions;
(4) general economic conditions; (5) various monetary and fiscal policies and regulations of
the U.S. government that may adversely affect the businesses in which F.N.B.
Corporation is engaged; (6) technological issues which may adversely affect F.N.B. Corporation’s financial operations
or customers; (7) changes in the securities markets; (8) risk factors mentioned in the reports
and registration statements F.N.B. Corporation files with the Securities and Exchange
Commission; (9) housing prices; (10) job market; (11) consumer confidence and spending habits; (12) estimates
of fair value of certain F.N.B. Corporation assets and liabilities or (13) the effects of
current, pending and future legislation, regulation and regulatory actions.
F.N.B. Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances
after the date of this presentation. To
supplement its consolidated financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), the
Corporation provides additional measures of operating results, net income and earnings per
share (EPS) adjusted to exclude certain costs, expenses, and gains and losses.
The Corporation believes that these non-GAAP financial measures are appropriate to enhance the
understanding of its past performance as well as prospects for its future performance.
In the event of such a disclosure or release, the Securities and Exchange
Commission’s 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. The required presentations and reconciliations are
contained herein and can be found at our website, www.fnbcorporation.com, under
“Shareholder and Investor Relations” by clicking on “Non- GAAP
Reconciliation.”
The Appendix to this presentation contains non-GAAP financial measures used by the
Corporation to provide information useful to investors in understanding the
Corporation's operating performance and trends, and facilitate comparisons with the performance of the Corporation's
peers. While the Corporation believes that these non-GAAP financial measures
are useful in evaluating the Corporation, the information should be considered
supplemental in nature and not as a substitute for or superior to the relevant financial information prepared in accordance with
GAAP. The non-GAAP financial measures used by the Corporation may differ from the
non-GAAP financial measures other financial institutions use to measure their
results of operations. This information should be reviewed in conjunction with the Corporation’s financial results disclosed
on July 24, 2012 and in its periodic filings with the Securities and Exchange
Commission.
|
 3
F.N.B. Corporation |
 Key
Facts 4
Attractive Footprint
–#3 Market Share in the Pittsburgh MSA
–Banking locations network spanning 45 counties
–Market Cap of $1.6 Billion
–Member S&P SmallCap 600 Index
Fourth Largest Pennsylvania-Based Bank
–Assets
$11.8 Billion
–Loans
$7.9 Billion
–Deposits
$9.8 Billion
–Banking Locations
266
–Consumer Finance Locations
69
–Headquarters
Hermitage, PA
Diverse Fee Income Sources with
Complementary Business Lines
–Business and Personal Banking
–Wealth Management
–Insurance
–Commercial Equipment Leasing
–Merchant Banking
•
First National Bank Location
Ohio
Pennsylvania
NYSE Listed
Diversified Financial Institution with a Network of Banking Locations
Spanning 45 Counties in Pennsylvania, Northeastern Ohio and West
Virginia |
 Key
Investment Considerations 5
Strong Performance
Positioning for Sustained Growth
1.
Experienced leadership, compelling core competencies and a sustainable business model
2.
Clear market position strategy
3.
Strong operating results
4.
Ongoing reposition and reinvest focus
5.
Proven and disciplined acquisition strategy
6.
Investment thesis and high quality earnings creates P/E expansion opportunity
|
 Years of
Banking
Experience
Joined FNB
Prior Experience
President and CEO
Vincent J. Delie, Jr.
25
2005
National City
President, First National Bank
John C. Williams, Jr.
41
2008
National City, Mellon Bank
Chief Financial Officer
Vincent J. Calabrese, Jr.
24
2007
People’s United
Chief Credit Officer
Gary L. Guerrieri
26
2002
FNB, Promistar
Leadership
6
Experienced and respected executive management team |
 Core
Competencies 7
Proven success and solid foundation for sustainable growth opportunities
(1) Organic,
linked-quarter
growth
for
the
Pennsylvania
commercial
portfolio;
(2)
As
of
June
30,
2012;
(3)
Represents
C&I
and
owner-occupied
CRE
Core
Competency
Proven
Sustainable
Commercial
Bank -
Strong
C&I Focus
2Q12 marks thirteen consecutive quarters of organic commercial
loan growth
(1)
C&I
loan
portfolio
comprises
34%
of
the
total
loan
portfolio
(2)(3)
People: Experienced team
of bankers built over the
past several years
Process: Proprietary, cross-
functional and enterprise-
wide sales management
process
Positioning: Attractively
positioned in markets with
significant growth potential
Products: Unique ability to
deliver a sophisticated
product set while
maintaining a local,
community bank culture
Consumer
Product
Distribution
Strong cross-functional and cross-sell focus
Customer-based funding comprises 98% of total deposits and
borrowings
(2)
Low Risk Profile
Operating
Strategy
Balance growth strategy with a low risk profile
Consistent, better-than-peers asset quality results
Stable net interest margin
Proven,
Disciplined,
Strategic
Acquirer
Nine bank acquisitions completed since 2002 with two completed
since the beginning of 2011
Acquisition evaluation guided by disciplined capital recoupment
and operating EPS accretion hurdles
Well-positioned in strategically important markets |
 Sustainable Business Model
8
Sustainable Business Model
Disciplined Risk
Management
Maintain low risk
profile
Target neutral interest
rate risk position
Fund loan growth with
deposits
Adhere to consistent
underwriting and
pricing standards
Maintain rigid
expense control
Efficient capital
management
Growth
Oriented
Organic growth driven
by:
Investments in
people, product
development, high-
growth potential
market segments
Acquisition-related
growth:
FNB
Culture
Attract, retain and
develop top talent
Foster a strong cross-
sell environment
Holistic incentive
compensation
structure supports
cross-functional focus
Regularly monitor
external and internal
service excellence,
quality and
satisfaction
Recognize
accomplishments and
innovation
Shareholder
Value
Disciplined, growth
oriented focus guided
by commitment to
shareholder value
Long-term investment
thesis centered on:
Deep product set
Best-in-class,
enterprise-wide
sales management
Disciplined,
strategic, accretive
Targeted EPS
growth
Strong dividend |
 Industry Leading Loan Growth
9
12
th
consecutive quarter of total loan growth
13
th
consecutive quarter of Pennsylvania commercial portfolio growth
(1)
Reflects linked-quarter average organic loan growth results on an annualized basis; (2)
Reflects growth excluding the Florida commercial portfolio Three years of consecutive
quarterly organic loan growth accomplished Total Loans
(1)
PA Commercial Loans
(1)
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
FNB Excl Non-Core Florida Portfolio
FNB
4.30%
3.20%
10.00%
6.70%
5.20%
1.20%
3.40%
11.60%
9.20%
8.70%
6.80%
5.93%
7.21%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Pennyslvania Commercial Portfolio |
 10
Market Position and Opportunity |
 Market Position and Opportunity
11
Attractive overall market position
FNB’s banking network spans 45 counties across Pennsylvania, Ohio and West
Virginia. FNB holds a strong #3 market share for all counties operation.
FNB benefits from a stable Pennsylvania economy that has outperformed much of the nation
through the recent economic cycle.
Pennsylvania’s unemployment rate has been below the U.S. rate for 51 consecutive
months and at or below the U.S. rate for 69 consecutive months.
(1)
Strong Pittsburgh MSA market position
#3 market share for the Pittsburgh MSA, the nation’s 22nd largest based on population
and 16
th
largest based on deposits.
A growth strategy was successfully executed in this market with positive results
reflecting team additions and organic and acquisition-related growth.
The Pittsburgh market offers significant business banking opportunities due to a
concentration of middle market prospects that exceeds the national and Pennsylvania
average.
A strong presence and the quality team of FNB bankers assembled in the market along with
favorable competitive and economic indicators present unique growth
opportunities. Marcellus and Utica Shale Exposure
FNB
is
attractively
positioned
to
benefit
from
positive
regional
economic
lift
associated
with
the Marcellus and Utica Shale.
(1) Pennsylvania’s July 2012 seasonally adjusted rate=7.9% compared to the U.S. rate of
8.3%. |
 Attractive Overall Market Position
12
Source: SNL Financial, deposit data as of June 30, 2011, pro-forma as of September
11, 2012, excludes custodian bank FNB
holds
the
#3
overall
retail
market
position
for
all
counties
of
operation
–
with
significant
opportunities present for continued market share gains
FNB Counties of Operation
Rank
Institution
Branch
Count
Total Market Deposits
($ 000)
Total Market Share
(%)
1
PNC Financial Services Group
341
48,750,897
30.7%
2
Royal Bank of Scotland Group, PLC
223
10,272,385
6.5%
3
F.N.B. Corporation
266
8,901,081
5.6%
4
M&T Bank Corp.
130
6,364,401
4.0%
5
Huntington Bancshares, Inc.
129
5,838,885
3.7%
6
Wells Fargo & Co.
64
4,830,011
3.0%
7
Banco Santander SA
75
4,770,823
3.0%
8
First Commonwealth Financial Corp.
101
4,010,036
2.5%
9
Dollar Bank Federal Savings Bank
40
3,415,130
2.1%
10
Susquehanna Bancshares
81
3,368,690
2.1%
Total (1-160)
2,813
159,009,116
100.00% |
 Source: SNL Financial and Company data.
Strong Pittsburgh Market Position
13
Successful execution of an organic and acquisition growth strategy in the Pittsburgh
market 2004
2008
2009
2011
2003
2002
2005
2006
2007
2010
Iron &
Glass
Bancorp
Deposits:
$0.2 bn
Parkvale
Financial
Deposits:
$1.5 bn
Slippery
Rock
Deposits:
$0.2 bn
NSD
Bancorp
Deposits:
$0.4 bn
Invest in
Downtown Pittsburgh
Regional Headquarters
Relocate Wealth
Management and Insurance
to Downtown Pittsburgh
Lift-out of
Asset-Based
Lending
Group from
RBS Citizens
Bank
Acquisitions:
Other
Actions:
Lift-out of
Commercial
Banking Team
from
National City
12/31/2001:
Market Rank #34
Loans: $93 mm
Employees (FTE): 40
6/30/2012:
Market Rank #3
Loans: $2.6 bn
Employees (FTE): 621
2012
Promistar
Financial
(Market
Entry)
Deposits:
$0.6 bn |
  # 3
Deposit Market Share in a Top 25 U.S. MSA = Opportunity 14
Source: MSA population per U.S. Census Bureau 2010 data; Deposit market share per SNL
Financial as of June 30, 2011, pro-forma as of September 11, 2012 (1) Excludes
custodian bank Population
Rank
MSA
(000's)
#1
#2
#3
1
New York
(1)
18,897
JPM
BofA
Citi
2
Los Angeles
12,829
BofA
Wells Fargo
Mitsubishi UFJ
3
Chicago
9,461
JPM
BMO
BofA
4
Dallas
6,372
BofA
JPM
Wells Fargo
5
Philadelphia
5,965
TD
Wells Fargo
PNC
6
Houston
5,947
JPM
Wells Fargo
BofA
7
Washington
5,582
Capital One
Wells Fargo
BofA
8
Miami
5,565
Wells Fargo
BofA
Citi
9
Atlanta
5,269
SunTrust
Wells Fargo
BofA
10
Boston
4,552
BofA
RBS
Banco Santander
11
San Francisco
4,335
BofA
Wells Fargo
Citi
12
Detroit
4,296
JPM
Comerica
BofA
13
Riverside
4,225
BofA
Wells Fargo
JPM
14
Phoenix
4,193
Wells Fargo
JPM
BofA
15
Seattle
3,440
BofA
Wells Fargo
U.S. Bancorp
16
Minneapolis
3,280
Wells Fargo
U.S. Bancorp
TCF
17
San Diego
3,095
Wells Fargo
BofA
Mitsubishi UFJ
18
St. Louis
(1)
2,813
U.S. Bancorp
BofA
Commerce
19
Tampa
2,783
BofA
Wells Fargo
SunTrust
20
Baltimore
2,710
BofA
M&T
PNC
21
Denver
2,543
Wells Fargo
FirstBank
JPM
22
Pittsburgh
(1)
2,356
PNC
RBS
23
Portland
2,226
BofA
U.S. Bancorp
Wells Fargo
24
Sacramento
2,149
Wells Fargo
BofA
U.S. Bancorp
25
San Antonio
2,143
Cullen/Frost
BofA
Wells Fargo
Top 3 Banks in MSA by Deposit Market Share
FNB is uniquely
positioned as
one of only very
few community
banks to hold a
Top 3 deposit
market rank in
one of the
nation’s 25
largest
metropolitan
statistical areas.
F.N.B. Corporation |
 Pittsburgh Market Opportunity
15
Pittsburgh, PA
FNB Presence
FNB Presence
Pittsburgh MSA Market
Deposits
(1)
$3.4 billion
% of
FNB
Total
Deposits
(1)
38%
Deposit
Market
Share
(1)
(2)
4.2%
Deposit Market Rank
(1) (2)
3
Commercial
Middle
Market
Share
(3)
12%
Market
Deposits
(2)
$81.1 billion
Population
(2)
2.4 million
Households
(2)
1.0 million
Projected
5-Yr
Population
Growth
(2)
-0.84%
Projected 5-Yr Household Income Growth
(2)
22.6%
Number
of
Firms
with
<500
Employees
(4)
45,000
Number
of
Firms
with
>500
Employees
(4)
1,800
4-Year
Job
Growth
(7/2008
–
7/2012)
(5)
1.40%
(1) Pro-forma as of June 30, 2011; (2) Data per SNL; (3) Per 2010 Greenwich Associates
Market Tracking Program, % of respondents with revenue between $15 and $500 million
that reported a relationship with FNB; (4) Firms and Employment by MSA, U.S. Census Bureau; (5) PittsburghToday.org
–
Significantly increased FNB presence
–
#3 market rank following the Parkvale
acquisition
–
Regional headquarters accommodating
all lines of business
–
Deposits increased 126% since 2005
–
Branches increased 59% since 2005
–
Stable market that has outperformed
much of the nation during the recession
–
Four-year job growth (July 2008-July
2012) comparatively stronger than other
regions
–
Number of businesses located in the
MSA significantly exceeds the national
and Pennsylvania MSA average,
presenting opportunity for additional
market share gains |
 Pittsburgh Market Opportunity
16
(1) Pittsburgh MSA Commercial Market Opportunity, Number of Firms and Employment by MSA
sourced from U.S. Census Bureau; (2) Economic Indicators sourced from
PittsburghToday.org database Pittsburgh
MSA
Commercial
Market
Opportunity
(1)
and
Economic
Indicators
(2)
0
500
1,000
1,500
2,000
500+ Employees Middle Market and
Corporate
Pittsburgh MSA
Pennsylvania MSA
Average
National MSA Average
4-Year % Change in Jobs
July 2008 –
July 2012
5-Year Housing Appreciation
1 Quarter 2012
st
July 2012 Unemployment |
 Marcellus and Utica Shale
17
(1) Sources: www.marcellus.psu.edu, retrieved May 31, 2012; (2) www.dnr.state.oh.us, retrieved
May 31, 2012; (3) Sterne Agee June 7, 2010 and FBR Capital Markets, March 2,
2011. 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 geographically positioned banks to benefit from
the Marcellus Shale.
(3)
This presents opportunity for FNB given the expected
positive economic lift across much of FNB’s footprint. |
 Marcellus and Utica Shale Economic Effect
18
Opportunity for FNB relates to potential indirect and induced economic benefits across
footprint Direct Effect:
Oil and Gas
Directly associated with the extraction, processing and
delivery of the gas
Drilling, extraction and support activities
Indirect Effect:
Supply Chain
Provides goods and services to the energy industry
e.g.: Iron and steel, transportation, commodity traders,
heavy equipment, surveyors, utilities, rig parts,
attorneys, real estate, machinery manufacturers, etc.
Induced Benefit:
Consumption
Resulting benefit to industries and individuals from positive
direct and indirect effects
e.g.: Higher education, travel, housing, food and drink,
entertainment, utilities, etc.
FNB
Strategic Focus:
Supply Chain and
Consumption |
 19
Strong Operating Results |
 2Q12 Highlights
2Q12
operating
results
–
Positive
trends
in
profitability
metrics
Financial results driven by continued positive trends in key drivers
Net income of $29.1 million and diluted earnings per share of $0.21
Net interest margin of 3.80%
Strong
total
loan
growth
-
12
consecutive
quarter
of
organic
growth
for
total
loans
Strong
commercial
loan
growth
–
13
consecutive
quarter
organic
growth
for
PA
commercial
portfolio
Strong transaction deposit and customer repurchase growth
Good asset quality results reflecting consistent stability in core portfolios
Solid non-interest income results
Lower operating expenses reflecting continuing expense control and success executing Parkvale
Financial acquisition and related cost savings realization
Branch optimization/efficiency enhancement plan
Continued positive progress executing e-delivery strategy
20
th
th |
 2Q12 Operating Highlights
21
2Q12
1Q12
2Q11
Consistent
Earnings
Growth
Operating net income
$29,336
$26,524
$22,467
Operating earnings per diluted share
$0.21
$0.19
$0.18
Solid
Performance
Operating ROTE
19.14%
17.78%
16.85%
Operating ROTA
1.13%
1.04%
1.02%
Net interest margin
3.80%
3.74%
3.78%
Efficiency ratio
57.74%
60.42%
62.31%
Strong Organic
Growth
(1)
Total
loan
growth
(2)
4.4%
2.6%
5.1%
Commercial
loan
growth
(2)
7.2%
5.9%
9.2%
Consumer loan growth
8.3%
1.3%
9.3%
Transaction
deposits
and
customer
repo
growth
(3)
14.3%
8.9%
10.8%
Operating net income, EPS, ROTE and ROTA excludes merger and severance costs, refer to
Non-GAAP Reconciliation included in Appendix (1)Average, annualized linked quarter
organic growth results; (2)Excludes the Florida commercial portfolio; (3)Excludes time deposits |
 Net
Interest Margin 22
Net Interest Margin Trend
3.80%
3.74%
3.79%
3.79%
3.78%
3.81%
3.77%
3.78%
3.81%
3.00%
3.20%
3.40%
3.60%
3.80%
4.00%
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11
4Q10
3Q10
2Q10
Parkvale
Acquisition
1/1/2012
Stable
net
interest
margin
reflects
effective
interest
rate
risk
management
Managing to a neutral interest rate risk position is a key operating strategy.
Consistent loan and transaction deposit growth contributes to stability in the net interest
margin. 2Q12 margin includes the benefit of $2.5 million in net accretable yield on
acquired loans. Total variable and adjustable-rate loans total 59.2% of total
loans at June 30, 2012, relatively stable following the Parkvale acquisition, compared
to 59.6% of total loans at December 31, 2011. Low investment portfolio duration of 2.7
at June 30, 2012 |
 Asset Quality Results
(1)
23
$ in thousands
2Q12
1Q12
2Q11
2Q12 Highlights
NPL’s+OREO/Total loans+OREO
1.93%
2.22%
2.57%
Overall asset quality results reflect the
continued solid performance of the
Pennsylvania and Regency portfolios
and significant reductions in the Florida
portfolio
Continued positive trends seen in
delinquency and non-performing loans
plus OREO levels
NCO’s remain at good levels
Florida exposure declined $49.9 million,
or 33%, primarily as a result of principal
payoffs on performing and non-
performing credits
Total delinquency
1.78%
2.03%
2.34%
Provision
for
loan
losses
(2)
$7,027
$6,572
$8,551
Net
charge-offs
(NCO’s)
(2)
$7,473
$5,141
$6,939
NCO’s/Total
average
loans
(2)
0.38%
0.27%
0.42%
NCO’s/Total average originated loans
0.45%
0.32%
0.45%
Allowance for loan losses/
Total loans
1.49%
1.55%
1.73%
Allowance for loan losses/
Total non-performing loans
104.89%
92.95%
85.84%
(1)
Metrics
shown
are
originated
portfolio
metrics
unless
noted
as
a
total
portfolio
metric.
“Originated
portfolio”
or
“Originated
loans”
excludes
loans
acquired
at fair value and accounted for in accordance with ASC 805 (effective January 1, 2009), as the
risk of credit loss has been considered by virtue of the Corporation’s estimate of
fair value. (2) Total portfolio metric |
 Positive Asset Quality Trends
24
NCO’s to Average Originated Loans
(1)
NPL’s+OREO to Originated Loans+OREO
(1)
0.44%
0.39%
0.36%
0.33%
0.23%
0.77%
0.62%
0.38%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
2010
2011
2Q12 YTD
FNB excluding Florida
Florida
Peer Group Median
2.74%
2.15%
1.93%
1.56%
1.29%
1.32%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
2010
2011
2Q12
FNB
FNB Excluding Florida Portfolio
Peer Group Median
(2)
Peer
data
per
SNL
Financial,
refer
to
Appendix
for
peer
listing;
(1)
Based
on
balances
at
year-end
and
quarter-end
for
each
period
presented.
“Originated
Loans”
excludes loans acquired at fair value and accounted for in accordance with ASC 805 (effective
January 1, 2009), as the risk of credit loss has been considered by virtue of the
Corporation’s estimate of fair value. (2) Slight increase in NPL+OREO to Originated Loans+OREO for the excluding Florida metric
reflects the addition of $6.1 million in OREO from the Parkvale acquisition completed January
1, 2012. |
 Diversified Loan Portfolio
25
Note: Balance, CAGR and % of Portfolio based on period-end balances
6/30/12
CAGR
% of Portfolio
($ in millions)
Balance
12/08-
6/12
12/31/08
6/30/12
C&I
$1,493
13.9%
16%
19%
CRE: Non-Owner Occupied
1,319
10.4%
16%
17%
CRE: Owner Occupied
1,214
5.7%
17%
15%
Commercial Leases
125
421.6%
1%
2%
Total Commercial
$4,151
10.6%
50%
53%
Consumer Home Equity
1,616
8.2%
21%
21%
Residential Mortgage
1,110
20.6%
10%
14%
Indirect
563
2.9%
9%
7%
Other
173
3.0%
3%
2%
Regency
163
0.9%
3%
2%
Florida
85
-29.9%
5%
1%
Total Loan Portfolio
$7,861
9.0%
100%
100%
Well diversified portfolio
Strong growth results driven by commercial loan growth
$7.9 Billion Loan Portfolio
June 30, 2012
Commercial &
Industrial 19%
Consumer
Home Equity
21%
Residential
Mortgage 14%
Indirect 7%
Other 2%
Regency 2%
Florida 1%
Commercial
Leases 2%
CRE: Owner
Occupied 15%
CRE: Non
-
Owner
Occupied 17% |
 Deposits and Customer Repurchase Agreements
26
Note: Balance, CAGR and % of Portfolio based on period-end balances; (1) Transaction
deposits include savings, NOW, MMDA and non-interest bearing deposits; (2) December
31, 2008 through June 30, 2012 6/30/12
CAGR
Mix %
($ in millions)
Balance
12/08-
6/12
12/31/08
6/30/12
Savings, NOW, MMDA
$4,485
14.2%
44%
46%
Time Deposits
2,685
4.3%
36%
28%
Non-Interest Bearing
1,614
17.5%
14%
17%
Customer Repos
970
27.4%
6%
10%
Total Deposits and
Customer Repo Agreements
$9,754
12.4%
100%
100%
Transaction
Deposits
(1)
and
Customer Repo Agreements
$7,069
16.4%
64%
72%
Loans to Deposits and Customer Repo Agreements Ratio =
81% at June 30, 2012
Focus on new client acquisition and growing lower cost relationship-based deposits
–
16.4%
average
growth
for
transaction
deposits
and
customer
repo
agreements
(2)
–
Improved funding mix
$9.8 Billion Deposits and
Customer Repo Agreements
June 30, 2012
Non-Interest
Bearing 17%
Savings, NOW,
MMDA 46%
Customer
Repos 10%
Time Deposits
28% |
 %
Ratings
($ in millions
(1)
)
Portfolio
Investment %
Agency MBS
$1,245
54%
AAA
100%
Highly Rated $2.3 Billion Investment Portfolio
June 30, 2012
CMO Agency
420
18%
AAA
100%
Agency Senior Notes
359
16%
AAA
100%
Municipals
183
8%
AAA
AA
A
2%
90%
8%
Short-Term
25
1%
AAA
100%
Trust Preferred
(2)
29
1%
BBB
BB
B
CCC
C
8%
30%
6%
7%
49%
CMO Private Label
21
1%
AAA
AA
A
BBB
BB
CCC 23%
19%
23%
14%
7%
14%
Corporate
17
1%
AA
A
BBB
12%
61%
27%
Bank Stocks
2
-
Non-Rated
Total Investment Portfolio
$2,301
100%
Investment Portfolio
27
(1) Amounts reflect GAAP; (2) Original cost of $108 million, adjusted cost of $45 million,
fair value of $29 million –
Highly rated with an average rating of AA and
99.4% of the portfolio rated A or better
–
General obligation bonds = 99.5% of portfolio
–
77.7%
from
municipalities
located
throughout
Pennsylvania
98% of total portfolio rated AA or better
Relatively low duration of 2.7
Municipal bond portfolio |
 Well Capitalized
28
Consistent capital management strategy focused on the efficient use of capital
12.0%
10.5%
8.1%
5.8%
12.0%
10.5%
8.1%
6.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Total Risk-Based
Tier One
Leverage
Tangible Common Equity
March 31, 2012
June 30, 2012
Regulatory “Well-Capitalized”
Dividend Payout Ratio
2Q12 YTD
2011
2010
FNB
66.6%
69.7%
74.0%
Regional Peer Group Median
36.1%
31.1%
40.0% |
 29
Reposition and Reinvest |
 E-Delivery Strategy Update
30
Using leading edge technology to enhance client value, leading to further client
acquisition, supporting client retention and generating related revenue opportunities
Delivery
Method
Status
Description
Online
Bill Pay
Completed :
October 2011
Online bill pay, person-to-person payments, eBills, and the ability to
transfer funds between financial institutions.
Mobile
Banking
Completed :
June 2012
Mobile banking services via text banking, mobile browser, and downloadable
app for smart phones.
17% of online banking customers enrolled since introduction in early June,
2012.
Phase 2:
Online
Banking/
Mobile
Banking
Scheduled:
4Q12
Online Phase 2: Personalized marketing campaigns and Money Management
tool. 90% of the most commonly used features will be available on the home
page.
Mobile
Phase
2:
Remote
Deposit
Capture
and
mobile
banking
alerts
among
advanced features. |
 Optimizing Delivery Channel
31
Summary
Expected # of locations consolidated
20
Expected # of locations with drive-up services only
3
Banking locations post-consolidation
246
Target date
4Q12
Projected cost savings, pre-tax
$4.0 million
Projected one-time costs, pre-tax
$2.5 million
As part of ongoing delivery channel optimization, FNB announces plans to consolidate 20
locations and reduce services at 3 locations
Consolidation expected to take place mid-4Q12
This action provides the opportunity to:
Enhance operating efficiency and profitability
Focus resources in attractive markets
Leverage investment in upgraded e-delivery channels |
 32
Acquisition Strategy |
 Strategy
Focus on strategically important markets with growth potential.
Acquisition-related expansion has historically been focused on enhancing presence in the
Pittsburgh market and eastern and central Pennsylvania.
Consideration given to additional attractive markets contiguous to existing footprint with
concentrated commercial and industrial business prospect opportunities.
Acquisition Criteria/Evaluation
Proficient due diligence and integration team in place
Disciplined approach to identifying and selecting targets
Targeted financial hurdles taken into consideration
Accretive to operating earnings per share the first full year following close.
Recoup diminution of capital within a relatively short time-period (target 12-18
months). Superior post-acquisition execution
Acquisition Strategy
33 |
 Acquisition-Related Expansion
34
FNB is a proven merger integrator with nine bank acquisitions, totaling $7.9 billion in assets,
completed since 2002
Pre-2002 Presence
Additional Acquisition-Related Expansion
Pittsburgh MSA Acquisition Expansion
Current FNB Banking Location |
 35
Investment Thesis |
 Long-Term Investment Thesis
36
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%
Expected Dividend Yield
(Targeted Payout Ratio 60-70%)
4-
6%
Total Shareholder Return
9
-12% |
 Relative Valuation Multiples
37
FNB
Regional Peer
Group Median
National Peer
Group Median
(1)
Price/Earnings Ratio
(2)
FY13 Consensus EPS (FNB=$0.88)
12.8x
13.3x
13.3x
Price/Tangible Book Value
(2)
2.4x
1.5x
1.5x
Price/Book Value
(2)
1.2x
1.2x
1.2x
Dividend Yield
(2)
4.3%
2.7%
2.2%
FNB has a modest P/E valuation relative to peers given its higher-quality earnings stream,
stronger dividend yield and future growth potential
Data per SNL Financial: Price/Earnings Ratio based on analyst consensus estimates for FNB and
peers; (1) National peer group consists of banks with assets between $5 and $25
billion; (2) As of September 10, 2012 closing prices (FNB=$11.30) |
 Quality Earnings Stream
38
(1) 2011 per actual results adjusted for merger costs; 2012 and 2013 based on consensus FY2012
and FY2013 estimates as of September 11, 2012 (data per Quality earnings stream
demonstrated by positively trending pre-tax, pre-provision earnings SNL
Financial) with 2012 adjusted for actual merger and severance costs for the first half of 2012.
5.2%
CAGR
$1.00
$1.05
$1.10
$1.15
$1.20
$1.25
$1.30
$1.35
$1.40
$1.45
$1.50
2011
2012
2013
Pre
tax, Pre
provision EPS
(1) |
 Total Shareholder Return and Dividend Yield
39
Current
Dividend
Yield
(1)
Last Twelve Months Dividend Payout Ratio
Data per SNL Financial; Regional peer group listing included in Supplemental Information;
National peer group consists of banks with assets between $5 and $25 billion; (1) As of
September 10, 2012 3-Year
Total
Shareholder
Return
(1)
1-Year
Total
Shareholder
Return
(1)
65%
32%
35%
0%
10%
20%
30%
40%
50%
60%
70%
FNB
Regional Peers
National Peers
4.25%
2.71%
2.22%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
FNB
Regional Peers
National Peers
42.3%
33.9%
38.0%
26.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
FNB
Regional Peers
National Peers
S&P 500 |
 FNB
Among Top Performing Banks 40
Assets ($
billions)
ROTCE (%)
Efficiency
Ratio (%)
Net Charge
Offs (%)
Net
Interest
Margin
Price/TBV (x)
Price/ 2013E
EPS (x)
Dividend
Yield (%)
Total Return
3 Yr (%)
Total Return
1 Yr (%)
Peer Median Results
Regional Peer Group
$9.5
11.68
58.0
0.54
3.77
1.50
13.3
2.71
41.12
33.91
Top 100 Banks/Thrifts Based on Asset Size
$13.3
10.97
61.5
0.51
3.61
1.43
12.8
2.27
30.99
36.65
Top 100 Trading at > 2.0x Tangible Book
$13.2
17.18
53.8
0.26
3.61
2.21
13.3
2.46
35.10
31.57
F.N.B. Corporation
$11.8
18.47
59.1
0.33
3.77
2.40
12.8
4.25
89.43
42.28
Relative Valuation/Total Return
Year-to-Date Performance
Notes: Data per SNL Financial and FNB. Year-to-date performance represents the first
six months of 2012. Relative valuation metrics and total return as of September
10, 2012. FNB ROTCE represents operating ROTCE (adjusted for merger and severance costs). |
 Relative Valuation Analysis
FNB Currently trades
at a discount to its
peers based on its
projected ROATE of
18.2%
(2)
Where a bank trades relative to tangible book value is highly correlated with its projected
return on tangible capital
Source: SNL Financial as of 09/10/12; Note: Data set above includes FNB’s regional peer
group; (1)R-squared represents the percentage of the variation in price to tangible
book value (P/TBV) that can be explained by variation in 2013E projected return on average tangible equity (ROATE); (2)Based on
consensus mean estimates for FY2013.
41
6%
8%
10%
12%
14%
16%
18%
20%
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
2.00x
2.25x
2.50x
2.75x
3.00x
Price/Tangible Book Value
R-squared = 83%
(1) |
 42
Supplemental Information |
 43
Supplemental Information Index
Regency Finance Company Profile
Regional Peer Group Listing
Board of Directors
GAAP to Non-GAAP Reconciliation |
 Conservatively run consumer finance business with over 80 years of consumer lending
experience Good credit quality: Year-to-date net charge-offs to average
loans of 3.57% Strong returns: First six months of 2012: ROA 3.11%, ROE 32.82%,
ROTE 36.99%
Regency Finance Company Profile
(1)
Return on average tangible common equity (ROTCE) is calculated by dividing net
income less amortization of intangibles by average common equity less
average intangibles. 44
69 Locations
Spanning Four
States
Regency Finance Company
$163 Million Loan Portfolio
87% of Real Estate Loans are First Mortgages
Direct
Real Estate
Sales Finance
(1)
Return on average tangible common equity (ROTCE) is calculated by dividing net income
less amortization of intangibles by average common equity less
average intangibles. |
 Regional Peer Group Listing
45
ASBC
Associated Bancorp
NPBC
National Penn Bancshares, Inc.
CBSH
Commerce Bancshares, Inc.
ONB
Old National Bancorp
CBU
Community Bank Systems, Inc.
PRK
Park National Corp
CHFC
Chemical Financial Corp.
PVTB
Private Bancorp, Inc.
CRBC
Citizens Republic Bancorp, Inc.
SBNY
Signature Bank
CSE
CapitalSource, Inc.
SUSQ
Susquehanna Bancshares, Inc.
FCF
First Commonwealth Financial
TCB
TCF Financial Corp.
FFBC
First Financial Bancorp, Inc.
UBSI
United Bankshares, Inc.
FMBI
First Midwest Bancorp, Inc.
UMBF
UMB Financial Corp.
FMER
First Merit Corp.
VLY
Valley National Bancorp
FULT
Fulton Financial
WSBC
WesBanco, Inc.
MBFI
MB Financial, Inc.
WTFC
Wintrust Financial Corp.
NBTB
NBT Bancorp, Inc. |
 Board of Directors
46
Name
Age
Director
Since
Biography
Stephen J. Gurgovits
69
1981
Chairman of the Board effective January 2012; former Chief Executive Officer of F.N.B.
Corporation Vincent J. Delie, Jr.
47
2012
President and Chief Executive Officer effective January 2012
William B. Campbell
74
1975
Former Chairman of the Board; More than 30 years executive experience in the manufacturing,
steel, commercial development and construction industries.
Philip E. Gingerich
75
2008
Director of Omega Financial Corporation from 1994 to 2008; retired real estate appraiser,
broker and consultant.
Robert R. Goldstein
72
2003
Over 46 years experience in the financial services industry; principal of CapGen Financial
Advisors LLC since 2007; Former Chairman of Bay View Capital Corporation.
Dawne S. Hickton
54
2006
Vice Chairman, president and chief executive officer of RTI International Metals, Inc. based
in Pittsburgh, Pennsylvania.
David J. Malone
58
2005
President and Chief Executive Officer of Gateway Financial Group, Inc., a financial services
firm located in Pittsburgh, Pennsylvania.
D. Stephen Martz
70
2008
Over 45 years experience in the banking and financial services industry; former director,
president and chief operating officer of Omega Financial Corporation.
Robert J. McCarthy
69
2012
Previously President and CEO of Parkvale Bank and Parkvale Financial Corporation and Vice
Chairman of Parkvale Financial Corporation’s Board of Directors.
Harry F. Radcliffe
61
2002
Investment manager with extensive prior experience in the financial services industry.
Arthur J. Rooney, II
59
2006
President of Pittsburgh Steelers Sports, Inc.; of counsel with Buchanan, Ingersoll &
Rooney, P.C. John W. Rose
63
2003
Has served on the boards of 25 separate banks or bank holding companies; currently principal
of CapGen Financial Advisors LLC.
Stanton R. Sheetz
57
2008
Co-owner and Chief Executive Officer of Sheetz, Inc.; director of Omega Financial
Corporation from 1994 to 2008.
William J. Strimbu
51
1995
President of Nick Strimbu, Inc. since 1994, a trucking company with common carrier authority.
Earl K. Wahl
71
2002
Over 36 years executive experience, owning and operating various businesses involving mining,
drilling, industrial contracting, restaurant, municipal and environmental services,
including prior ownership of J.E.D. Corporation, an environmental consulting
firm. |
 GAAP to Non-GAAP Reconciliation
47
June 30, 2012
March 31, 2012
June 30, 2011
2012
2011
Operating net income
Net income
$29,130
$21,582
$22,362
$50,712
$39,537
Merger and severance costs, net of tax
206
4,943
105
5,149
2,800
Operating net income
$29,336
$26,524
$22,467
$55,861
$42,337
Operating diluted earnings per share
Diluted earnings per share
$0.21
$0.15
$0.18
$0.36
$0.32
Effect of merger and severance costs, net of tax
0.00
0.04
0.00
0.04
0.02
Operating diluted earnings per share
$0.21
$0.19
$0.18
$0.40
$0.34
Operating return on average tangible equity
Operating net income (annualized)
$117,991
$106,681
$90,115
$112,336
$85,375
Amortization of intangibles, net of tax (annualized)
6,192
5,964
4,707
6,078
4,720
$124,182
$112,645
$94,822
$118,414
$90,096
Average shareholders' equity
$1,367,333
$1,352,569
$1,166,305
$1,359,951
$1,148,065
Less: Average intangible assets
718,507
719,195
603,552
718,851
599,516
Average tangible equity
$648,826
$633,375
$562,753
$641,100
$548,549
Operating return on average tangible equity
19.14%
17.78%
16.85%
18.47%
16.42%
Operating return on average tangible assets
Operating net income (annualized)
$117,991
$106,681
$90,115
$112,336
$85,375
Amortization of intangibles, net of tax (annualized)
6,192
5,964
4,707
6,078
4,720
$124,182
$112,645
$94,822
$118,414
$90,096
Average total assets
$11,734,221
$11,563,665
$9,866,025
$11,648,943
$9,780,993
Less: Average intangible assets
718,507
719,195
603,552
718,851
599,516
Average tangible assets
11,015,714
$
10,844,470
$
9,262,473
$
10,930,092
$
9,181,476
$
Operating return on average tangible assets
1.13%
1.04%
1.02%
1.08%
0.98%
June 30 Year-to-Date
For the Quarter Ended |
 GAAP to Non-GAAP Reconciliation
48
2011
2010
Operating net income
Net income
$87,047
$74,652
Merger and severance costs, net of tax
3,238
402
One-time pension credit
(6,853)
Operating net income
$90,285
$68,201
Operating return on average tangible equity
Operating net income
$90,285
$68,201
Amortization of intangibles, net of tax
4,698
4,364
$94,983
$72,565
Average shareholders' equity
$1,181,941
$1,057,732
Less: Average intangible assets
599,851
564,448
Average tangible equity
$582,090
$493,284
Operating return on average tangible equity
16.32%
14.71%
Operating return on average tangible assets
Operating net income (annualized)
$90,285
$68,201
Amortization of intangibles, net of tax (annualized)
4,698
4,364
$94,983
$72,565
Average total assets
$9,871,164
$8,906,734
Less: Average intangible assets
599,851
564,448
Average tangible assets
9,271,313
$
8,342,286
$
Operating return on average tangible assets
1.02%
0.87% |