Record revenue of $1.4
billion for 2022 drives the full-year efficiency
ratio (non-GAAP) to 52.1%
Successfully completed the
acquisition of UB Bancorp on December 9,
2022
PITTSBURGH, Jan. 23,
2023 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB)
reported earnings for the fourth quarter of 2022 with net income
available to common stockholders of $137.5
million, or $0.38 per diluted
common share. Comparatively, fourth quarter of 2021 net income
available to common stockholders totaled $96.5 million, or $0.30 per diluted common share, and third quarter
of 2022 net income available to common stockholders totaled
$135.5 million, or $0.38 per diluted common share. On an operating
basis, fourth quarter of 2022 earnings per diluted common share
(non-GAAP) was $0.44, excluding
$21.9 million (pre-tax) of UB
Bancorp (Union) merger-related significant items and $2.8 million (pre-tax) of branch consolidation
costs. By comparison, the fourth quarter of 2021 was $0.30 per diluted common share (non-GAAP) on an
operating basis, excluding $0.8 million (pre-tax) of significant items.
The third quarter of 2022 was $0.39
per diluted common share (non-GAAP) on an operating basis,
excluding $2.1 million (pre-tax)
of significant items.
For the full year of 2022, net income available to common
stockholders was $431.1 million, or
$1.22 per diluted common share.
Comparatively, full-year 2021 net income available to common
stockholders totaled $396.6 million,
or $1.23 per diluted common share. On
an operating basis, full-year 2022 earnings per diluted common
share (non-GAAP) was $1.40, excluding
$80.8 million (pre-tax) of
significant items. Operating earnings per diluted common share
(non-GAAP) for the full year of 2021 was $1.24, excluding $4.4
million (pre-tax) of significant items.
"F.N.B. Corporation produced exceptional fourth quarter results
with operating earnings per diluted common share (non-GAAP)
totaling a record $0.44, revenue
reaching an all-time high of $416
million and continued strong loan growth of 5.1%
linked-quarter. The fourth quarter's outstanding performance is
captured in the profitability metrics with operating return on
average tangible common equity (non-GAAP) totaling 21.9% and the
quarterly efficiency ratio (non-GAAP) below 46%," said F.N.B.
Corporation Chairman, President and Chief Executive Officer,
Vincent J. Delie, Jr. "The fourth
quarter finished out an impressive year, during which FNB grew
loans by $5.3 billion bringing total
assets to nearly $44 billion through
a strategic combination of footprint-wide organic growth and two
value-adding acquisitions. FNB's full-year operating earnings per
diluted common share (non-GAAP) totaled $1.40, one of the highest levels in Company
history, led by record revenue of $1.4
billion. As a result of our strong profitability and focus
on shareholder value creation, we returned over $220 million to shareholders through common
dividends and our active share repurchase program. The steadfast
focus on our disciplined credit culture was evidenced by total
delinquencies ending the year at 71 basis points, net charge-offs
of 6 basis points for the full year, and a reserve coverage ratio
of 1.33% at year end. The strength of our balance sheet coupled
with the momentum produced by our consistent performance puts us in
an advantageous position as we continue to navigate changing
economic conditions."
Fourth Quarter 2022 Highlights
(All
comparisons refer to the fourth quarter of 2021, except as
noted)
- On December 9, 2022, the
acquisition of UB Bancorp, including its wholly-owned banking
subsidiary, Union Bank, was completed, adding loans and deposits
with estimated fair values of $651
million and $956 million,
respectively. The acquisition-related systems conversions were
successfully completed in December and integration is proceeding as
planned.
- Period-end total loans and leases increased $5.3 billion, or 21.2%, which includes Howard
Bancorp, Inc. (Howard) acquired loans ($1.8
billion as of the January 22,
2022, acquisition date) and the Union-acquired loans
($651 million as of the December 9, 2022 acquisition date). Commercial
loans and leases increased $2.8
billion, or 17.2%, including the decline in Paycheck
Protection Program (PPP) loans, and consumer loans increased
$2.5 billion, or 29.0%. PPP loans
totaled $25.7 million at December 31, 2022, compared to $336.6 million at December
31, 2021. FNB's strong organic loan growth in 2022 was
driven by our strategy to grow high-quality loans across our
diverse geographic footprint.
- On a linked-quarter basis, period-end total loans and leases
increased $1.5 billion, or 5.1%,
including the previously mentioned Union acquired loans. Commercial
loans and leases increased $1.1
billion and consumer loans increased $365.6 million. Average loans and leases
increased $929.5 million, or 3.3%,
linked-quarter, with growth of $482.5
million in commercial loans and leases and $447.0 million in consumer loans.
- Total average deposits grew $2.3
billion, or 7.1%, led by increases in average
non-interest-bearing deposits of $1.0
billion, or 9.5%, average interest-bearing demand deposits
of $557.9 million, or 3.9%, average
savings deposits of $498.1 million,
or 13.9%, and average time deposits of $176.0 million, or 6.0%. Average deposit growth
reflected organic growth in new and existing customer relationships
and inflows from the Howard and Union acquisitions. On a
linked-quarter basis, period-end deposits increased $876.8 million, or 2.6%.
- Net interest income increased $111.6
million, or 50.0%, to $334.9
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.
- On a linked-quarter basis, the net interest margin (FTE)
(non-GAAP) increased 34 basis points to 3.53%, as the earning asset
yield (non-GAAP) increased 62 basis points while the cost of funds
increased 30 basis points. During the fourth quarter of 2022, the
Federal Open Market Committee (FOMC) raised the target federal
funds rate by a total of 125 basis points, bringing the
year-to-date increase to 425 basis points.
- The annualized net charge-offs to total average loans ratio was
0.16%, while up from 0.02% it continues to remain at a historically
low level.
- Efficiency ratio (non-GAAP) was a record 45.8%, fueled by
record revenue, compared to 58.1% for the year-ago quarter.
- Common Equity Tier 1 (CET1) regulatory capital ratio was 9.8%
(estimated), compared to 9.7% at September
30, 2022, and 9.9% at December 31,
2021. Tangible book value per common share (non-GAAP) of
$8.27 increased $0.25, or 3.1%, compared to September 30, 2022. Accumulated other
comprehensive income/loss (AOCI) reduced the tangible book value
per common share by $0.99 as of
December 31, 2022, primarily due to
the impact of higher interest rates on the fair value of
available-for-sale (AFS) securities, a $0.09 improvement compared to a reduction of
$1.08 as of September 30, 2022.
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
|
4Q22
|
|
3Q22
|
|
4Q21
|
Reported
results
|
|
|
|
|
|
Net income available to
common stockholders (millions)
|
$
137.5
|
|
$ 135.5
|
|
$
96.5
|
Net income per diluted
common share
|
0.38
|
|
0.38
|
|
0.30
|
Book value per common
share (period-end)
|
15.39
|
|
15.11
|
|
15.81
|
Pre-provision net
revenue (millions)
|
204.4
|
|
184.5
|
|
120.7
|
Operating results
(non-GAAP)
|
|
|
|
|
|
Operating net income
available to common stockholders (millions)
|
$
157.0
|
|
$ 137.2
|
|
$
97.1
|
Operating net income
per diluted common share
|
0.44
|
|
0.39
|
|
0.30
|
Pre-provision net
revenue (millions)
|
219.7
|
|
186.6
|
|
121.5
|
Average diluted
common shares outstanding (thousands)
|
357,791
|
|
354,654
|
|
323,025
|
Significant items
impacting earnings1 (millions)
|
|
|
|
|
|
Pre-tax merger-related
expenses
|
$
(12.5)
|
|
$
(2.1)
|
|
$
(0.8)
|
After-tax impact of
merger-related expenses
|
(9.9)
|
|
(1.7)
|
|
(0.7)
|
Pre-tax provision
expense related to acquisition
|
(9.4)
|
|
—
|
|
—
|
After-tax impact of
provision expense related to acquisition
|
(7.4)
|
|
—
|
|
—
|
Pre-tax branch
consolidation costs
|
(2.8)
|
|
—
|
|
—
|
After-tax impact of
branch consolidation costs
|
(2.2)
|
|
—
|
|
—
|
Total significant items
pre-tax
|
$
(24.7)
|
|
$
(2.1)
|
|
$
(0.8)
|
Total significant items
after-tax
|
$
(19.5)
|
|
$
(1.7)
|
|
$
(0.7)
|
Capital
measures
|
|
|
|
|
|
Common equity tier 1
(2)
|
9.8 %
|
|
9.7 %
|
|
9.9 %
|
Tangible common equity
to tangible assets (period-end) (non-GAAP)
|
7.24
|
|
7.02
|
|
7.36
|
Tangible book value per
common share (period-end) (non-GAAP)
|
$
8.27
|
|
$
8.02
|
|
$
8.59
|
|
|
|
|
|
|
Year-to-Date
Results Summary
|
2022
|
|
2021
|
|
|
Reported
results
|
|
|
|
|
|
Net income available to
common stockholders (millions)
|
$
431.1
|
|
$ 396.6
|
|
|
Net income per diluted
common share
|
1.22
|
|
1.23
|
|
|
Pre-provision net
revenue (millions)
|
616.9
|
|
503.7
|
|
|
Operating results
(non-GAAP)
|
|
|
|
|
|
Operating net income
available to common stockholders (millions)
|
$
494.9
|
|
$ 400.0
|
|
|
Operating net income
per diluted common share
|
1.40
|
|
1.24
|
|
|
Pre-provision net
revenue (millions)
|
669.2
|
|
508.1
|
|
|
Average diluted
common shares outstanding (thousands)
|
354,052
|
|
323,481
|
|
|
Significant items
impacting earnings1 (millions)
|
|
|
|
|
|
Pre-tax merger-related
expenses
|
$
(45.3)
|
|
$
(1.8)
|
|
|
After-tax impact of
merger-related expenses
|
(35.8)
|
|
(1.4)
|
|
|
Pre-tax provision
expense related to acquisitions
|
(28.5)
|
|
—
|
|
|
After-tax impact of
provision expense related to acquisitions
|
(22.5)
|
|
—
|
|
|
Pre-tax branch
consolidation costs
|
(7.0)
|
|
(2.6)
|
|
|
After-tax impact of
branch consolidation costs
|
(5.5)
|
|
(2.1)
|
|
|
Total significant items
pre-tax
|
$
(80.8)
|
|
$
(4.4)
|
|
|
Total significant items
after-tax
|
$
(63.8)
|
|
$
(3.5)
|
|
|
(1) Favorable
(unfavorable) impact on earnings.
|
(2) Estimated for
4Q22.
|
Fourth Quarter 2022 Results – Comparison to
Prior-Year Quarter
(All comparisons refer to the fourth
quarter of 2021, except as noted)
Net interest income totaled $334.9
million, an increase of $111.6
million, or 50.0%, compared to $223.3
million, as total average earning assets increased
$2.9 billion, or 8.2%, including a
$4.6 billion increase in average
loans and leases from organic origination activity and acquired
Howard and Union loans, as well as a $786.1
million increase in average investment securities. These
increases were partially funded by excess cash, which decreased by
$2.4 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 deposit accounts.
The net interest margin (FTE) (non-GAAP) increased 98 basis
points to 3.53%, as the yield on earning assets (non-GAAP)
increased 149 basis points to 4.29%, primarily due to higher yields
on loans and investment securities reflecting the higher interest
rate environment. The total cost of funds increased 55 basis points
to 0.80% with an 81 basis point increase in interest-bearing
deposit costs to 0.98%, as well as an increase of 123 basis points
in long-term debt cost, partially due to the August 2022 offering of $350 million aggregate principal amount of 5.150%
fixed rate senior notes due in 2025.
Average loans and leases totaled $29.4
billion, an increase of $4.6
billion, or 18.7%, including growth of $2.4 billion in consumer loans and $2.2 billion in commercial loans and leases. The
increase in average commercial loans and leases included
$1.2 billion, or 12.3%, in commercial
real estate balance growth and $951.7
million, or 15.9%, in commercial and industrial loan growth
driven by a combination of organic loan origination activity and
the Howard and Union acquisitions. 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 $1.5 billion increase in
residential mortgages reflecting adjustable-rate mortgages which we
currently hold in portfolio, the continued success of the
Physicians First mortgage program and a $479.4 million increase in direct home equity
installment loans driven by a combination of strong organic loan
origination activity and the Howard and Union acquisitions. Average
PPP loans declined $471.4 million, or
93.8%, from the year-ago quarter as the portfolio winds down.
Average deposits totaled $33.9
billion with growth in average non-interest-bearing demand
deposits of $1.0 billion, or
9.5%, average interest-bearing demand deposits of $557.9 million, or 3.9%, average savings deposits
of $498.1 million, or 13.9% and
average time deposits of $176.0 million, or 6.0%. The increase in
average deposits reflected organic growth in new and existing
customer relationships and inflows from the Howard and Union
acquisitions. The funding mix was consistent with the year-ago
quarter levels with non-interest-bearing deposits comprising 34% of
total deposits at quarter-end.
Non-interest income totaled $80.6
million, an increase of $1.6
million, or 2.1%, compared to the fourth quarter of 2021.
Service charges increased $3.1
million, or 9.5%, driven by interchange fees, increases in
treasury management services and higher customer activity. Capital
markets income totaled $10.0 million,
an increase of $0.5 million, or 4.9%,
led by an increase in syndications and solid contributions from
swap fees and international banking. Mortgage banking operations
income decreased $3.2 million as
secondary market revenue and mortgage held-for-sale pipelines
declined from 2021 levels given the sharp increase in mortgage
rates in 2022 and adjustable-rate mortgage originations being held
in portfolio.
Non-interest expense totaled $211.1
million, increasing $29.6
million, or 16.3%. On an operating basis (non-GAAP),
non-interest expense totaled $195.8
million, an increase of $15.0
million, or 8.3%, compared to the fourth quarter of 2021.
Net occupancy and equipment increased $7.8
million, or 25.2%, primarily from the acquired Howard and
Union expense bases, as well as $2.2
million of branch consolidation costs in the fourth quarter
of 2022. Outside services increased $2.6
million, or 15.0%, 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 a record 45.8%,
compared to 58.1%, reflecting the strong operating leverage gained
from the record levels of net interest income combined with
disciplined expense management.
The ratio of non-performing assets and 90-days past due loans to
total loans and other real estate owned (OREO) increased 1 basis
point to 0.39%. Total delinquency increased 10 basis points to
0.71%, compared to 0.61% at December 31, 2021, and continues
to remain at a historically low level .
The provision for credit losses was $28.6
million, compared to a net benefit of $2.4 million in the fourth quarter of 2021,
including $9.4 million of initial
provision for non-purchase credit deteriorated (non-PCD) loans
associated with the Union acquisition. The additional increase in
provision for credit losses was primarily due to loan growth,
CECL-related model impacts from forecasted macroeconomic
conditions, and charge-off activity. The fourth quarter of 2022
reflected net charge-offs of $11.9 million, or 0.16% annualized, of total
average loans, compared to $1.4 million, or 0.02% annualized, in the
fourth quarter of 2021. While slightly elevated from recent
quarters, net charge-offs remain at historically low levels. The
ratio of the allowance for credit losses (ACL) to total loans and
leases decreased 5 basis points to 1.33%, reflecting the strong
loan growth.
The effective tax rate was 20.6%, compared to 20.0% in the
fourth quarter of 2021.
The CET1 regulatory capital ratio was 9.8% (estimated), compared
to 9.9% at December 31, 2021. Tangible book value per common
share (non-GAAP) was $8.27 at
December 31, 2022, a decrease of $0.32, or 3.7%, from $8.59 at December 31, 2021. AOCI reduced the
current quarter tangible book value per common share by
$0.99, compared to a reduction of
$0.19 at the end of 2021, primarily
due to the increase in unrealized losses on AFS securities
resulting from the higher interest rate environment.
Fourth Quarter 2022 Results – Comparison to Prior
Quarter
(All comparisons refer to the third quarter of
2022, except as noted)
Net interest income totaled $334.9
million, an increase of $37.8 million, or 12.7%, from the prior
quarter total of $297.1 million,
primarily due to growth in average earning assets and benefits from
the higher interest rate environment. The resulting net interest
margin (FTE) (non-GAAP) increased 34 basis points to 3.53% driven
by the higher yields on new loan originations and investment
securities purchases, as well as the asset sensitive position of
the balance sheet in conjunction with the continued FOMC interest
rate hikes.
Total average earning assets increased $672.1 million, or 1.8%, to $38.1 billion. The total yield on earning assets
(non-GAAP) increased 62 basis points to 4.29%, due to benefits from
the asset sensitive positioning of the balance sheet, including
higher yields on variable-rate loans, investment securities and
interest-bearing deposits with banks. The total cost of funds
increased 30 basis points to 0.80%, as total long-term debt
increased 41 basis points to 4.29% and the cost of interest-bearing
deposits increased 41 basis points to 0.98%.
Average loans and leases totaled $29.4
billion, an increase of $929.5
million, or 3.3%, as average commercial loans and leases
increased $482.5 million, or 2.7%,
and average consumer loans increased $447.0
million, or 4.3%, compared to the third quarter of 2022.
Average commercial loans and leases included growth of $283.7 million, or 4.3%, in commercial and
industrial loans and $153.5 million, or 1.4%, in commercial real
estate. The organic quarterly growth in commercial loans and leases
was led by the Cleveland,
Pittsburgh and key Pennsylvania markets. Consumer loan growth
reflected average residential mortgages increasing $361.5 million, or 7.6%, and average
indirect auto balances increasing $80.5 million, or 5.5%. The consumer loan
growth was driven by organic loan origination activity, reflecting
growth in adjustable-rate mortgages and the continued success of
the Physicians First mortgage program.
Average deposits totaled $33.9
billion, increasing $301.0
million, or 0.9%, with increases in interest-bearing demand
deposits of $63.4 million, or
0.4%, time deposits of $164.3 million, or 5.5% and savings balances
of $97.6 million, or 2.4%,
partially offset by a slight decline in non-interest-bearing
deposits of $24.3 million, or
0.2%. The loan-to-deposit ratio was 87.0% at December 31,
2022, compared to 84.9% at September 30, 2022, reflecting
strong loan growth in the fourth quarter of 2022.
Non-interest income totaled $80.6
million, a $1.9 million, or
2.2%, decrease from the prior quarter. Mortgage banking
operations income decreased $2.4
million, or 47.3%, reflecting a decline in sold mortgage
volume and lower gain on sale margins. Insurance commissions and
fees decreased $1.3 million, or
22.2%, reflecting seasonality in the fourth quarter. Dividends on
non-marketable equity securities increased $0.5 million, or 15.9%, due to an increase in the
FHLB dividend rate. Capital markets income was $10.0 million, an increase of $0.4 million, or 4.3%, with solid
contributions from syndications, swap fees and international
banking.
Non-interest expense totaled $211.1
million, an increase of $16.1
million, or 8.2%. On an operating basis (non-GAAP),
non-interest expense increased $2.8
million, or 1.5%, compared to the prior quarter. Net
occupancy and equipment increased $4.1
million, or 11.8%, reflecting the addition of the Union
expense base, and $2.2 million
related to branch consolidation costs in the fourth quarter. Other
non-interest expense increased $4.4
million, or 26.9%, primarily from charitable contributions
that qualified for Pennsylvania
bank shares tax credits. Marketing increased $1.4 million, or 43.7%, due to the timing of
digital advertising spend and campaigns. Salaries and employee
benefits decreased $3.1 million, or
2.9%, due to lower medical costs and seasonally lower production
and performance-related incentives. The efficiency ratio (non-GAAP)
equaled 45.8%, compared to 49.4%, reflecting the well-managed
operating expense levels and strong revenue growth.
The ratio of non-performing assets and 90-days past due to total
loans and OREO increased 7 basis points to 0.39%, continuing to
remain at historically low levels. Total delinquency increased 12
basis points to 0.71%, compared to 0.59% at September 30,
2022, also remaining at historically low levels.
The provision for credit losses was $28.6
million, compared to $11.2
million, including $9.4
million of initial provision for non-PCD loans associated
with the Union acquisition. The additional increase in provision
for credit losses was driven by strong loan growth, CECL-related
model impacts from forecasted macroeconomic conditions, and
charge-off activity. The fourth quarter of 2022 reflected net
charge-offs of $11.9 million, or
0.16% annualized, of total average loans, compared to $2.8 million, or 0.04% annualized. While slightly
elevated from recent quarters, net charge-offs remain at
historically low levels. The ratio of the ACL to total loans and
leases was 1.33% at December 31, 2022, compared to 1.34% at
September 30, 2022.
The effective tax rate was 20.6%, compared to 20.7% for the
third quarter of 2022.
The CET1 regulatory capital ratio was 9.8% (estimated),
increasing from 9.7% at September 30, 2022, benefiting from
the strong retained earnings growth in the quarter. Tangible book
value per common share (non-GAAP) was $8.27 at December 31, 2022, an increase of
$0.25 per share from
September 30, 2022. AOCI reduced the current quarter-end
tangible book value per common share by $0.99 reflecting unrealized losses on AFS
securities caused by the higher interest rate environment, a
$0.09 improvement compared to a
reduction of $1.08 at the end of the
prior quarter.
December 31, 2022 Full-Year Results – Comparison to 2021
Full-Year Period
Net interest income totaled $1.1
billion, increasing $213.3
million, or 23.5%, as the higher interest rate environment
benefited earning asset yields given the asset sensitive
positioning of the balance sheet and the higher yields on new loan
originations and investment securities purchases. The net interest
margin (FTE) (non-GAAP) increased 35 basis points to 3.03%. The
yield on earning assets (non-GAAP) increased 50 basis points to
3.47%, reflecting higher yields on variable-rate loans, investment
securities and excess cash balances, partially offset by
significant reductions in PPP contributions. The cost of funds
increased 16 basis points to 0.46% due to the cost of
interest-bearing deposits increasing 26 basis points to 0.49%, and
long-term debt increasing 121 basis points primarily from the
August 2022 offering of $350 million in senior notes. These increases
were partially offset by strong growth in non-interest-bearing
deposits.
Average loans totaled $27.8
billion, an increase of $2.8
billion, or 11.0%, including growth of $1.8 billion in consumer loans and $927.0 million in commercial loans and leases.
Growth in total average commercial loans included $964.9 million, or 9.9%, in commercial real
estate growth, partially offset by a decline of $113.9 million, or 1.7%, in commercial and
industrial loans reflecting average PPP loans declining
$1.4 billion. The healthy organic
growth in full-year 2022 is primarily attributable to growth across
our diverse footprint, with the largest increases noted in the
Cleveland, Pittsburgh, and South Carolina markets. Growth in total
average consumer loans was due to an increase in residential
mortgage loans of $1.1 billion, or
31.5%, direct home equity installment loans of $533.8 million, or 24.9%, and indirect
installment loans of $162.1 million,
or 13.3%. Full-year average loan growth also benefited from the
addition of the Howard-acquired loans in January 2022.
Average deposits totaled $33.6
billion, increasing $3.0
billion, or 9.7%, led by growth of $1.5 billion, or 15.4%, in non-interest-bearing
deposits, $1.1 billion, or 7.8%, in
interest-bearing demand deposits and $533.5
million, or 15.5% in savings deposits, driven by solid
organic growth in customer relationships, as well as the Howard and
Union acquisitions. Average time deposits declined $204.1 million, or 6.4%, as customer preferences
had shifted to more liquid accounts, however, customers'
preferences are starting to shift back to time deposits as interest
rates increase.
Non-interest income totaled $323.6
million, decreasing $6.9
million, or 2.1%. Mortgage banking operations income
decreased $16.7 million, or 44.7%, as
secondary market revenue and mortgage held-for-sale pipelines
declined from elevated levels in 2021 due to the sharp increase in
interest rates throughout 2022 and the return of gain on sale
margins to historical levels. Other non-interest income declined
$6.8 million, or 26.4%, as Small
Business Administration (SBA) premium income declined $6.2 million from elevated levels due to the
higher interest rate environment leading to lower sold loan volumes
and lower market premiums. Bank-owned life insurance decreased
$2.9 million, or 19.7%, primarily due
to higher life insurance claims in the prior year. Capital markets
decreased $1.5 million, or 4.1%, as
swap activity decreased from elevated levels, which was partially
offset by an increase in syndications revenue. Service charges
increased $16.0 million, or 13.1%,
driven by interchange fees, increases in treasury management
services and higher customer activity. Wealth management revenues
increased $3.2 million, or 5.3%, as
securities commissions and fees and trust income increased 6.8% and
4.5%, respectively, through contributions across the geographic
footprint and an increase in assets under management.
Non-interest expense totaled $826.4
million, an increase of $93.2
million, or 12.7%, from 2021. Excluding significant items
totaling $52.3 million in 2022 and
$4.4 million in 2021, operating
non-interest expense (non-GAAP) increased $45.4 million, or 6.2%. Occupancy and equipment
increased $16.1 million, or 12.6%,
primarily from technology-related investments and the acquired
Howard and Union expense bases. Salaries and employee benefits
increased $7.9 million, or 1.9%, related to normal merit
increases and the acquired Howard and Union expense bases. FDIC
insurance increased $2.5 million, or
14.2%, primarily due to loan growth and balance sheet mix shift.
Other non-interest expense increased $16.3
million, or 28.6%, primarily due to increases in business
development and other operational costs, as well as branch
consolidation costs of $2.8 million
in 2022. The efficiency ratio (non-GAAP) equaled 52.1% on a
full-year basis, compared to 57.2% for 2021.
The provision for credit losses was $64.2
million. Excluding $28.5 million of initial provision for
non-PCD loans associated with the Howard and Union acquisitions,
provision for credit losses was $35.7 million, on an operating basis
(non-GAAP), compared to $0.6 million
in 2021 driven primarily by significant loan growth as well as
CECL-related model impacts from forecasted macroeconomic conditions
and lower prepayment speed assumptions. Net charge-offs totaled
$16.2 million, or 0.06% of total
average loans, compared to $13.9 million, or 0.06%, in 2021.
The effective tax rate was 20.6% for 2022, compared to 19.6% in
2021. The increase was driven by higher pre-tax earnings, higher
state income taxes and increased FDIC insurance deduction
disallowance.
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, provision for
credit losses, excluding the initial provision for non-PCD loans
associated with the Howard and Union acquisitions, pre-provision
net revenue to average tangible common equity, 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, initial
provision for non-PCD loans acquired 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 2022 and 2021
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, 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 United States.
- 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 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, including the
impact of the COVID-19 pandemic crisis and post pandemic return to
normalcy, global events, including the Ukraine-Russia conflict, dislocations, including
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 other
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 2021 Annual Report on Form 10-K,
our subsequent 2022 Quarterly Reports on Form 10-Q (including the
risk factors and risk management discussions) and our other 2022
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 fourth quarter of 2022 on
Monday, January 23, 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 Tuesday, January 24, 2023, at 8:30 AM ET.
Participants are encouraged to pre-register for the conference
call at https://dpregister.com/sreg/10173959/f563c3c098. 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 Tuesday, January 31, 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 3020775. 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 nearly $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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q22
|
|
4Q22
|
|
For the Twelve
Months
Ended December 31,
|
|
%
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
3Q22
|
|
4Q21
|
|
2022
|
|
2021
|
|
Var.
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases,
including fees
|
$
356,980
|
|
$
297,033
|
|
$
214,420
|
|
20.2
|
|
66.5
|
|
$
1,117,362
|
|
$ 885,519
|
|
26.2
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
34,844
|
|
30,899
|
|
21,910
|
|
12.8
|
|
59.0
|
|
116,916
|
|
86,468
|
|
35.2
|
Tax-exempt
|
6,762
|
|
6,584
|
|
7,000
|
|
2.7
|
|
(3.4)
|
|
26,642
|
|
28,991
|
|
(8.1)
|
Other
|
9,296
|
|
8,198
|
|
1,422
|
|
13.4
|
|
553.7
|
|
24,034
|
|
3,732
|
|
544.0
|
Total Interest
Income
|
407,882
|
|
342,714
|
|
244,752
|
|
19.0
|
|
66.7
|
|
1,284,954
|
|
1,004,710
|
|
27.9
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
54,611
|
|
31,135
|
|
9,155
|
|
75.4
|
|
496.5
|
|
108,521
|
|
47,215
|
|
129.8
|
Short-term
borrowings
|
6,838
|
|
6,135
|
|
6,420
|
|
11.5
|
|
6.5
|
|
24,535
|
|
26,675
|
|
(8.0)
|
Long-term
borrowings
|
11,544
|
|
8,319
|
|
5,901
|
|
38.8
|
|
95.6
|
|
32,118
|
|
24,344
|
|
31.9
|
Total Interest
Expense
|
72,993
|
|
45,589
|
|
21,476
|
|
60.1
|
|
239.9
|
|
165,174
|
|
98,234
|
|
68.1
|
Net Interest
Income
|
334,889
|
|
297,125
|
|
223,276
|
|
12.7
|
|
50.0
|
|
1,119,780
|
|
906,476
|
|
23.5
|
Provision for credit
losses
|
28,637
|
|
11,188
|
|
(2,350)
|
|
156.0
|
|
1,319
|
|
64,206
|
|
629
|
|
10,108
|
Net Interest Income
After
Provision for
Credit Losses
|
306,252
|
|
285,937
|
|
225,626
|
|
7.1
|
|
35.7
|
|
1,055,574
|
|
905,847
|
|
16.5
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges
|
35,536
|
|
35,954
|
|
32,462
|
|
(1.2)
|
|
9.5
|
|
137,698
|
|
121,735
|
|
13.1
|
Trust
services
|
9,371
|
|
9,600
|
|
9,534
|
|
(2.4)
|
|
(1.7)
|
|
39,033
|
|
37,370
|
|
4.5
|
Insurance commissions
and fees
|
4,506
|
|
5,790
|
|
5,334
|
|
(22.2)
|
|
(15.5)
|
|
24,253
|
|
25,522
|
|
(5.0)
|
Securities commissions
and fees
|
6,225
|
|
5,747
|
|
5,377
|
|
8.3
|
|
15.8
|
|
23,715
|
|
22,207
|
|
6.8
|
Capital markets
income
|
10,016
|
|
9,605
|
|
9,547
|
|
4.3
|
|
4.9
|
|
35,295
|
|
36,812
|
|
(4.1)
|
Mortgage banking
operations
|
2,711
|
|
5,148
|
|
5,955
|
|
(47.3)
|
|
(54.5)
|
|
20,646
|
|
37,355
|
|
(44.7)
|
Dividends on
non-marketable equity securities
|
3,775
|
|
3,258
|
|
2,072
|
|
15.9
|
|
82.2
|
|
11,953
|
|
8,588
|
|
39.2
|
Bank owned life
insurance
|
2,612
|
|
2,645
|
|
3,873
|
|
(1.2)
|
|
(32.6)
|
|
11,942
|
|
14,866
|
|
(19.7)
|
Net securities
gains
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
48
|
|
193
|
|
(75.1)
|
Other
|
5,861
|
|
4,717
|
|
4,834
|
|
24.3
|
|
21.2
|
|
18,970
|
|
25,771
|
|
(26.4)
|
Total Non-Interest
Income
|
80,613
|
|
82,464
|
|
78,988
|
|
(2.2)
|
|
2.1
|
|
323,553
|
|
330,419
|
|
(2.1)
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
103,558
|
|
106,620
|
|
104,053
|
|
(2.9)
|
|
(0.5)
|
|
426,237
|
|
418,328
|
|
1.9
|
Net
occupancy
|
18,635
|
|
15,597
|
|
12,996
|
|
19.5
|
|
43.4
|
|
68,189
|
|
58,368
|
|
16.8
|
Equipment
|
20,327
|
|
19,242
|
|
18,119
|
|
5.6
|
|
12.2
|
|
76,261
|
|
69,973
|
|
9.0
|
Amortization of
intangibles
|
3,545
|
|
3,547
|
|
3,021
|
|
(0.1)
|
|
17.3
|
|
13,868
|
|
12,117
|
|
14.5
|
Outside
services
|
19,655
|
|
19,008
|
|
17,090
|
|
3.4
|
|
15.0
|
|
72,961
|
|
70,553
|
|
3.4
|
Marketing
|
4,594
|
|
3,196
|
|
3,726
|
|
43.7
|
|
23.3
|
|
15,674
|
|
14,320
|
|
9.5
|
FDIC
insurance
|
5,322
|
|
5,221
|
|
4,449
|
|
1.9
|
|
19.6
|
|
20,412
|
|
17,881
|
|
14.2
|
Bank shares and
franchise taxes
|
2,031
|
|
3,991
|
|
1,690
|
|
(49.1)
|
|
20.2
|
|
13,954
|
|
12,629
|
|
10.5
|
Merger-related
|
12,498
|
|
2,105
|
|
824
|
|
493.7
|
|
1,417
|
|
45,259
|
|
1,764
|
|
2,466
|
Other
|
20,970
|
|
16,530
|
|
15,612
|
|
26.9
|
|
34.3
|
|
73,577
|
|
57,235
|
|
28.6
|
Total Non-Interest
Expense
|
211,135
|
|
195,057
|
|
181,580
|
|
8.2
|
|
16.3
|
|
826,392
|
|
733,168
|
|
12.7
|
Income Before Income
Taxes
|
175,730
|
|
173,344
|
|
123,034
|
|
1.4
|
|
42.8
|
|
552,735
|
|
503,098
|
|
9.9
|
Income taxes
|
36,259
|
|
35,846
|
|
24,567
|
|
1.2
|
|
47.6
|
|
113,626
|
|
98,496
|
|
15.4
|
Net
Income
|
139,471
|
|
137,498
|
|
98,467
|
|
1.4
|
|
41.6
|
|
439,109
|
|
404,602
|
|
8.5
|
Preferred stock
dividends
|
2,011
|
|
2,010
|
|
2,011
|
|
—
|
|
—
|
|
8,041
|
|
8,041
|
|
—
|
Net Income
Available to Common Stockholders
|
$
137,460
|
|
$
135,488
|
|
$
96,456
|
|
1.5
|
|
42.5
|
|
$
431,068
|
|
$ 396,561
|
|
8.7
|
Earnings per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.39
|
|
$ 0.39
|
|
$ 0.30
|
|
—
|
|
30.0
|
|
$
1.23
|
|
$
1.24
|
|
(0.8)
|
Diluted
|
0.38
|
|
0.38
|
|
0.30
|
|
—
|
|
26.7
|
|
1.22
|
|
1.23
|
|
(0.8)
|
Cash Dividends per
Common Share
|
0.12
|
|
0.12
|
|
0.12
|
|
—
|
|
—
|
|
0.48
|
|
0.48
|
|
—
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
4Q22
|
|
4Q22
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
3Q22
|
|
4Q21
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
443
|
|
$
458
|
|
$
337
|
|
(3.3)
|
|
31.5
|
Interest-bearing
deposits with banks
|
1,231
|
|
1,818
|
|
3,156
|
|
(32.3)
|
|
(61.0)
|
Cash and Cash
Equivalents
|
1,674
|
|
2,276
|
|
3,493
|
|
(26.4)
|
|
(52.1)
|
Securities available
for sale
|
3,275
|
|
3,392
|
|
3,426
|
|
(3.4)
|
|
(4.4)
|
Securities held to
maturity
|
4,087
|
|
3,820
|
|
3,463
|
|
7.0
|
|
18.0
|
Loans held for
sale
|
124
|
|
149
|
|
295
|
|
(16.8)
|
|
(58.0)
|
Loans and leases, net
of unearned income
|
30,255
|
|
28,780
|
|
24,968
|
|
5.1
|
|
21.2
|
Allowance for credit
losses on loans and leases
|
(402)
|
|
(385)
|
|
(344)
|
|
4.4
|
|
16.9
|
Net Loans and
Leases
|
29,853
|
|
28,395
|
|
24,624
|
|
5.1
|
|
21.2
|
Premises and equipment,
net
|
432
|
|
421
|
|
345
|
|
2.6
|
|
25.2
|
Goodwill
|
2,477
|
|
2,435
|
|
2,262
|
|
1.7
|
|
9.5
|
Core deposit and other
intangible assets, net
|
89
|
|
52
|
|
42
|
|
71.2
|
|
111.9
|
Bank owned life
insurance
|
653
|
|
629
|
|
546
|
|
3.8
|
|
19.6
|
Other assets
|
1,061
|
|
1,021
|
|
1,017
|
|
3.9
|
|
4.3
|
Total
Assets
|
$
43,725
|
|
$
42,590
|
|
$
39,513
|
|
2.7
|
|
10.7
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand
|
$
11,916
|
|
$
11,752
|
|
$
10,789
|
|
1.4
|
|
10.4
|
Interest-bearing
demand
|
15,100
|
|
15,251
|
|
14,409
|
|
(1.0)
|
|
4.8
|
Savings
|
4,142
|
|
3,991
|
|
3,669
|
|
3.8
|
|
12.9
|
Certificates and other
time deposits
|
3,612
|
|
2,899
|
|
2,859
|
|
24.6
|
|
26.3
|
Total
Deposits
|
34,770
|
|
33,893
|
|
31,726
|
|
2.6
|
|
9.6
|
Short-term
borrowings
|
1,372
|
|
1,395
|
|
1,536
|
|
(1.6)
|
|
(10.7)
|
Long-term
borrowings
|
1,093
|
|
1,059
|
|
682
|
|
3.2
|
|
60.3
|
Other
liabilities
|
837
|
|
837
|
|
419
|
|
—
|
|
99.8
|
Total
Liabilities
|
38,072
|
|
37,184
|
|
34,363
|
|
2.4
|
|
10.8
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
107
|
|
107
|
|
107
|
|
—
|
|
—
|
Common stock
|
4
|
|
4
|
|
3
|
|
—
|
|
33.3
|
Additional paid-in
capital
|
4,696
|
|
4,565
|
|
4,109
|
|
2.9
|
|
14.3
|
Retained
earnings
|
1,370
|
|
1,275
|
|
1,110
|
|
7.5
|
|
23.4
|
Accumulated other
comprehensive loss
|
(357)
|
|
(378)
|
|
(62)
|
|
(5.6)
|
|
475.8
|
Treasury
stock
|
(167)
|
|
(167)
|
|
(117)
|
|
—
|
|
42.7
|
Total Stockholders'
Equity
|
5,653
|
|
5,406
|
|
5,150
|
|
4.6
|
|
9.8
|
Total Liabilities
and Stockholders' Equity
|
$
43,725
|
|
$
42,590
|
|
$
39,513
|
|
2.7
|
|
10.7
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
(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
|
|
$
1,309,760
|
|
$
9,268
|
|
2.81 %
|
|
$
1,570,094
|
|
$
8,197
|
|
2.07 %
|
|
$
3,684,366
|
|
$
1,422
|
|
0.15 %
|
Federal funds
sold
|
|
1,984
|
|
29
|
|
5.81
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Taxable investment
securities (2)
|
|
6,255,161
|
|
34,597
|
|
2.21
|
|
6,245,951
|
|
30,662
|
|
1.96
|
|
5,422,463
|
|
21,674
|
|
1.60
|
Non-taxable investment
securities (1)
|
|
1,017,886
|
|
8,729
|
|
3.43
|
|
999,718
|
|
8,523
|
|
3.41
|
|
1,064,454
|
|
9,071
|
|
3.41
|
Loans held for
sale
|
|
131,916
|
|
1,916
|
|
5.80
|
|
158,356
|
|
1,778
|
|
4.48
|
|
288,287
|
|
2,538
|
|
3.52
|
Loans and leases
(1) (3)
|
|
29,360,681
|
|
356,461
|
|
4.82
|
|
28,431,137
|
|
296,470
|
|
4.14
|
|
24,734,455
|
|
212,774
|
|
3.42
|
Total Interest
Earning Assets (1)
|
|
38,077,388
|
|
411,000
|
|
4.29
|
|
37,405,256
|
|
345,630
|
|
3.67
|
|
35,194,025
|
|
247,479
|
|
2.80
|
Cash and due from
banks
|
|
437,525
|
|
|
|
|
|
435,258
|
|
|
|
|
|
417,424
|
|
|
|
|
Allowance for credit
losses
|
|
(392,354)
|
|
|
|
|
|
(381,120)
|
|
|
|
|
|
(353,410)
|
|
|
|
|
Premises and
equipment
|
|
429,411
|
|
|
|
|
|
411,306
|
|
|
|
|
|
342,743
|
|
|
|
|
Other assets
|
|
4,199,369
|
|
|
|
|
|
4,169,232
|
|
|
|
|
|
3,918,224
|
|
|
|
|
Total
Assets
|
|
$
42,751,339
|
|
|
|
|
|
$
42,039,932
|
|
|
|
|
|
$ 39,519,006
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
$
14,969,143
|
|
40,684
|
|
1.08
|
|
$
14,905,755
|
|
24,044
|
|
0.64
|
|
$ 14,411,196
|
|
3,749
|
|
0.10
|
Savings
|
|
4,083,662
|
|
5,406
|
|
0.53
|
|
3,986,090
|
|
2,366
|
|
0.24
|
|
3,585,515
|
|
154
|
|
0.02
|
Certificates and other
time
|
|
3,130,927
|
|
8,521
|
|
1.08
|
|
2,966,630
|
|
4,725
|
|
0.63
|
|
2,954,879
|
|
5,252
|
|
0.71
|
Total interest-bearing
deposits
|
|
22,183,732
|
|
54,611
|
|
0.98
|
|
21,858,475
|
|
31,135
|
|
0.57
|
|
20,951,590
|
|
9,155
|
|
0.17
|
Short-term
borrowings
|
|
1,389,753
|
|
6,838
|
|
1.95
|
|
1,389,747
|
|
6,135
|
|
1.75
|
|
1,574,226
|
|
6,420
|
|
1.62
|
Long-term
borrowings
|
|
1,066,962
|
|
11,544
|
|
4.29
|
|
851,432
|
|
8,319
|
|
3.88
|
|
766,288
|
|
5,901
|
|
3.06
|
Total
Interest-Bearing Liabilities
|
|
24,640,447
|
|
72,993
|
|
1.18
|
|
24,099,654
|
|
45,589
|
|
0.75
|
|
23,292,104
|
|
21,476
|
|
0.37
|
Non-interest-bearing
demand deposits
|
|
11,754,813
|
|
|
|
|
|
11,779,069
|
|
|
|
|
|
10,730,981
|
|
|
|
|
Total Deposits and
Borrowings
|
|
36,395,260
|
|
|
|
0.80
|
|
35,878,723
|
|
|
|
0.50
|
|
34,023,085
|
|
|
|
0.25
|
Other
liabilities
|
|
847,462
|
|
|
|
|
|
654,260
|
|
|
|
|
|
384,768
|
|
|
|
|
Total
Liabilities
|
|
37,242,722
|
|
|
|
|
|
36,532,983
|
|
|
|
|
|
34,407,853
|
|
|
|
|
Stockholders'
Equity
|
|
5,508,617
|
|
|
|
|
|
5,506,949
|
|
|
|
|
|
5,111,153
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
42,751,339
|
|
|
|
|
|
$
42,039,932
|
|
|
|
|
|
$ 39,519,006
|
|
|
|
|
Net Interest Earning
Assets
|
|
$
13,436,941
|
|
|
|
|
|
$
13,305,602
|
|
|
|
|
|
$ 11,901,921
|
|
|
|
|
Net Interest Income
(FTE) (1)
|
|
|
|
338,007
|
|
|
|
|
|
300,041
|
|
|
|
|
|
226,003
|
|
|
Tax Equivalent
Adjustment
|
|
|
|
(3,118)
|
|
|
|
|
|
(2,916)
|
|
|
|
|
|
(2,727)
|
|
|
Net Interest
Income
|
|
|
|
$
334,889
|
|
|
|
|
|
$
297,125
|
|
|
|
|
|
$
223,276
|
|
|
Net Interest
Spread
|
|
|
|
|
|
3.11 %
|
|
|
|
|
|
2.92 %
|
|
|
|
|
|
2.43 %
|
Net Interest
Margin (1)
|
|
|
|
|
|
3.53 %
|
|
|
|
|
|
3.19 %
|
|
|
|
|
|
2.55 %
|
(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.
The amount of loan fees included in interest income is
immaterial.
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
Twelve Months Ended
December 31,
|
(Dollars in
thousands)
|
|
2022
|
|
2021
|
(Unaudited)
|
|
|
|
Interest
|
|
|
|
|
|
Interest
|
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
$
2,174,415
|
|
$ 24,005
|
|
1.10 %
|
|
$
2,723,493
|
|
$ 3,732
|
|
0.14 %
|
Federal funds
sold
|
|
500
|
|
29
|
|
5.81
|
|
—
|
|
—
|
|
—
|
Taxable investment
securities (2)
|
|
6,126,544
|
|
115,956
|
|
1.89
|
|
5,131,473
|
|
85,633
|
|
1.67
|
Non-taxable investment
securities (1)
|
|
1,010,819
|
|
34,508
|
|
3.41
|
|
1,091,130
|
|
37,408
|
|
3.43
|
Loans held for
sale
|
|
189,360
|
|
8,151
|
|
4.30
|
|
227,181
|
|
8,276
|
|
3.64
|
Loans and leases
(1) (3)
|
|
27,829,166
|
|
1,113,593
|
|
4.00
|
|
25,075,559
|
|
880,609
|
|
3.51
|
Total Interest
Earning Assets (1)
|
|
37,330,804
|
|
1,296,242
|
|
3.47
|
|
34,248,836
|
|
1,015,658
|
|
2.97
|
Cash and due from
banks
|
|
429,741
|
|
|
|
|
|
386,648
|
|
|
|
|
Allowance for credit
losses
|
|
(377,252)
|
|
|
|
|
|
(363,462)
|
|
|
|
|
Premises and
equipment
|
|
405,023
|
|
|
|
|
|
338,644
|
|
|
|
|
Other assets
|
|
4,166,392
|
|
|
|
|
|
3,992,426
|
|
|
|
|
Total
Assets
|
|
$
41,954,708
|
|
|
|
|
|
$
38,603,092
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
$
14,951,905
|
|
78,599
|
|
0.53
|
|
$
13,866,846
|
|
18,676
|
|
0.13
|
Savings
|
|
3,976,285
|
|
8,512
|
|
0.21
|
|
3,442,809
|
|
664
|
|
0.02
|
Certificates and other
time
|
|
3,004,482
|
|
21,410
|
|
0.71
|
|
3,208,586
|
|
27,875
|
|
0.87
|
Total interest-bearing
deposits
|
|
21,932,672
|
|
108,521
|
|
0.49
|
|
20,518,241
|
|
47,215
|
|
0.23
|
Short-term
borrowings
|
|
1,427,361
|
|
24,535
|
|
1.72
|
|
1,660,070
|
|
26,675
|
|
1.61
|
Long-term
borrowings
|
|
836,154
|
|
32,118
|
|
3.84
|
|
924,090
|
|
24,344
|
|
2.63
|
Total
Interest-Bearing Liabilities
|
|
24,196,187
|
|
165,174
|
|
0.68
|
|
23,102,401
|
|
98,234
|
|
0.43
|
Non-interest-bearing
demand deposits
|
|
11,639,499
|
|
|
|
|
|
10,090,117
|
|
|
|
|
Total Deposits and
Borrowings
|
|
35,835,686
|
|
|
|
0.46
|
|
33,192,518
|
|
|
|
0.30
|
Other
liabilities
|
|
643,179
|
|
|
|
|
|
377,386
|
|
|
|
|
Total
Liabilities
|
|
36,478,865
|
|
|
|
|
|
33,569,904
|
|
|
|
|
Stockholders'
Equity
|
|
5,475,843
|
|
|
|
|
|
5,033,188
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
41,954,708
|
|
|
|
|
|
$
38,603,092
|
|
|
|
|
Net Interest Earning
Assets
|
|
$
13,134,617
|
|
|
|
|
|
$
11,146,435
|
|
|
|
|
Net Interest Income
(FTE) (1)
|
|
|
|
1,131,068
|
|
|
|
|
|
917,424
|
|
|
Tax Equivalent
Adjustment
|
|
|
|
(11,288)
|
|
|
|
|
|
(10,948)
|
|
|
Net Interest
Income
|
|
|
|
$
1,119,780
|
|
|
|
|
|
$ 906,476
|
|
|
Net Interest
Spread
|
|
|
|
|
|
2.79 %
|
|
|
|
|
|
2.54 %
|
Net Interest Margin
(1)
|
|
|
|
|
|
3.03 %
|
|
|
|
|
|
2.68 %
|
(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.
The amount of loan fees included in interest income is
immaterial.
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months
Ended
December 31,
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
2022
|
|
2021
|
Performance
Ratios
|
|
|
|
|
|
|
|
|
|
Return on average
equity
|
10.04 %
|
|
9.91 %
|
|
7.64 %
|
|
8.02 %
|
|
8.04 %
|
Return on average
tangible equity (1)
|
18.78
|
|
18.43
|
|
14.26
|
|
15.03
|
|
15.21
|
Return on average
tangible
common equity
(1)
|
19.19
|
|
18.84
|
|
14.53
|
|
15.31
|
|
15.53
|
Return on average
assets
|
1.29
|
|
1.30
|
|
0.99
|
|
1.05
|
|
1.05
|
Return on average
tangible assets (1)
|
1.40
|
|
1.41
|
|
1.08
|
|
1.14
|
|
1.14
|
Net interest margin
(FTE) (2)
|
3.53
|
|
3.19
|
|
2.55
|
|
3.03
|
|
2.68
|
Yield on earning assets
(FTE) (2)
|
4.29
|
|
3.67
|
|
2.80
|
|
3.47
|
|
2.97
|
Cost of
interest-bearing deposits
|
0.98
|
|
0.57
|
|
0.17
|
|
0.49
|
|
0.23
|
Cost of
interest-bearing liabilities
|
1.18
|
|
0.75
|
|
0.37
|
|
0.68
|
|
0.43
|
Cost of
funds
|
0.80
|
|
0.50
|
|
0.25
|
|
0.46
|
|
0.30
|
Efficiency ratio
(1)
|
45.82
|
|
49.39
|
|
58.10
|
|
52.15
|
|
57.23
|
Effective tax
rate
|
20.63
|
|
20.68
|
|
19.97
|
|
20.56
|
|
19.58
|
Pre-provision net
revenue (reported) / average
tangible common equity (1)
|
27.97
|
|
25.14
|
|
17.74
|
|
21.37
|
|
19.26
|
Pre-provision net
revenue (operating) / average
tangible common equity (1)
|
30.07
|
|
25.42
|
|
17.87
|
|
23.18
|
|
19.42
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
Equity / assets (period
end)
|
12.93
|
|
12.69
|
|
13.03
|
|
|
|
|
Common equity / assets
(period end)
|
12.68
|
|
12.44
|
|
12.76
|
|
|
|
|
Common equity tier 1
(3)
|
9.8
|
|
9.7
|
|
9.9
|
|
|
|
|
Leverage
ratio
|
8.64
|
|
8.43
|
|
7.99
|
|
|
|
|
Tangible equity /
tangible assets
(period end)
(1)
|
7.50
|
|
7.28
|
|
7.65
|
|
|
|
|
Tangible common equity
/ tangible assets (period end) (1)
|
7.24
|
|
7.02
|
|
7.36
|
|
|
|
|
Common Stock
Data
|
|
|
|
|
|
|
|
|
|
Average diluted common
shares outstanding
|
357,790,766
|
|
354,654,479
|
|
323,024,522
|
|
354,052,197
|
|
323,481,488
|
Period end common
shares outstanding
|
360,470,110
|
|
350,756,155
|
|
318,933,492
|
|
|
|
|
Book value per common
share
|
$
15.39
|
|
$
15.11
|
|
$
15.81
|
|
|
|
|
Tangible book value per
common share (1)
|
8.27
|
|
8.02
|
|
8.59
|
|
|
|
|
Dividend payout ratio
(common)
|
30.98 %
|
|
31.43 %
|
|
40.20 %
|
|
39.54 %
|
|
39.20 %
|
(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)
|
December 31,
2022 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q22
|
|
4Q22
|
|
|
|
|
|
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
3Q22
|
|
4Q21
|
|
|
|
|
|
|
Balances at period
end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
11,526
|
|
$
10,841
|
|
$ 9,899
|
|
6.3
|
|
16.4
|
|
|
|
|
|
|
Commercial and
industrial (1)
|
7,131
|
|
6,709
|
|
5,977
|
|
6.3
|
|
19.3
|
|
|
|
|
|
|
Commercial
leases
|
519
|
|
503
|
|
495
|
|
3.2
|
|
4.8
|
|
|
|
|
|
|
Other
|
114
|
|
127
|
|
94
|
|
(10.2)
|
|
21.3
|
|
|
|
|
|
|
Commercial loans and
leases
|
19,290
|
|
18,180
|
|
16,465
|
|
6.1
|
|
17.2
|
|
|
|
|
|
|
Direct
installment
|
2,784
|
|
2,797
|
|
2,376
|
|
(0.5)
|
|
17.2
|
|
|
|
|
|
|
Residential
mortgages
|
5,297
|
|
4,959
|
|
3,654
|
|
6.8
|
|
45.0
|
|
|
|
|
|
|
Indirect
installment
|
1,553
|
|
1,529
|
|
1,227
|
|
1.6
|
|
26.6
|
|
|
|
|
|
|
Consumer LOC
|
1,331
|
|
1,315
|
|
1,246
|
|
1.2
|
|
6.8
|
|
|
|
|
|
|
Consumer
loans
|
10,965
|
|
10,600
|
|
8,503
|
|
3.4
|
|
29.0
|
|
|
|
|
|
|
Total loans and
leases
|
$
30,255
|
|
$
28,780
|
|
$
24,968
|
|
5.1
|
|
21.2
|
|
|
|
|
|
|
Note: Loans held for
sale were $124, $149 and $295 at 4Q22, 3Q22, and 4Q21,
respectively.
|
|
|
|
|
|
|
(1) PPP loans were
$25.7 million, $43.7 million and $336.6 million at 4Q22, 3Q22 and
4Q21, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
4Q22
|
|
4Q22
|
|
For the Twelve
Months
Ended December 31,
|
|
%
|
Loans and
Leases:
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
3Q22
|
|
4Q21
|
|
2022
|
|
2021
|
|
Var.
|
Commercial real
estate
|
$
10,985
|
|
$
10,832
|
|
$ 9,781
|
|
1.4
|
|
12.3
|
|
$
10,744
|
|
$
9,780
|
|
9.9
|
Commercial and
industrial (1)
|
6,920
|
|
6,636
|
|
5,968
|
|
4.3
|
|
15.9
|
|
6,520
|
|
6,634
|
|
(1.7)
|
Commercial
leases
|
504
|
|
496
|
|
488
|
|
1.7
|
|
3.3
|
|
488
|
|
479
|
|
1.8
|
Other
|
168
|
|
131
|
|
95
|
|
28.1
|
|
77.2
|
|
141
|
|
74
|
|
91.0
|
Commercial loans and
leases
|
18,577
|
|
18,095
|
|
16,333
|
|
2.7
|
|
13.7
|
|
17,893
|
|
16,966
|
|
5.5
|
Direct
installment
|
2,789
|
|
2,791
|
|
2,309
|
|
(0.1)
|
|
20.8
|
|
2,679
|
|
2,145
|
|
24.9
|
Residential
mortgages
|
5,132
|
|
4,771
|
|
3,623
|
|
7.6
|
|
41.7
|
|
4,576
|
|
3,478
|
|
31.5
|
Indirect
installment
|
1,544
|
|
1,463
|
|
1,228
|
|
5.5
|
|
25.7
|
|
1,381
|
|
1,219
|
|
13.3
|
Consumer LOC
|
1,318
|
|
1,311
|
|
1,241
|
|
0.6
|
|
6.2
|
|
1,300
|
|
1,266
|
|
2.6
|
Consumer
loans
|
10,783
|
|
10,336
|
|
8,402
|
|
4.3
|
|
28.3
|
|
9,936
|
|
8,109
|
|
22.5
|
Total loans and
leases
|
$
29,361
|
|
$
28,431
|
|
$
24,734
|
|
3.3
|
|
18.7
|
|
$
27,829
|
|
$
25,076
|
|
11.0
|
(1) PPP average loans
were $31.4 million, $64.2 million and $502.8 million at 4Q22, 3Q22
and 4Q21, respectively, and $117.8 million and $1.5 billion for the
twelve months ended December 31, 2022 and 2021,
respectively.
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
% Variance
|
(Unaudited)
|
|
|
|
|
|
|
4Q22
|
|
4Q22
|
Asset Quality
Data
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
3Q22
|
|
4Q21
|
Non-Performing
Assets
|
|
|
|
|
|
|
|
|
|
Non-performing
loans
|
$
113
|
|
$ 88
|
|
$ 88
|
|
28.4
|
|
28.4
|
Other real estate owned
(OREO)
|
6
|
|
6
|
|
8
|
|
—
|
|
(25.0)
|
Non-performing
assets
|
$
119
|
|
$ 94
|
|
$ 96
|
|
26.6
|
|
24.0
|
Non-performing loans /
total loans and leases
|
0.37 %
|
|
0.30 %
|
|
0.35 %
|
|
|
|
|
Non-performing assets +
90 days past due / total loans and leases + OREO
|
0.44
|
|
0.36
|
|
0.41
|
|
|
|
|
Delinquency
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
91
|
|
$ 73
|
|
$ 59
|
|
24.7
|
|
54.2
|
Loans 90+ days past
due
|
12
|
|
9
|
|
6
|
|
33.3
|
|
100.0
|
Non-accrual
loans
|
113
|
|
88
|
|
88
|
|
28.4
|
|
28.4
|
Past due and
non-accrual loans
|
$
216
|
|
$
170
|
|
$
153
|
|
27.1
|
|
41.2
|
Past due and
non-accrual loans / total loans and leases
|
0.71 %
|
|
0.59 %
|
|
0.61 %
|
|
|
|
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
4Q22
|
|
4Q22
|
|
For the Twelve
Months
Ended
December 31,
|
|
%
|
Allowance on Loans
and Leases and Allowance for Unfunded Loan
Commitments Rollforward
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
3Q22
|
|
4Q21
|
|
2022
|
|
2021
|
|
Var.
|
Allowance for Credit
Losses on Loans and Leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
385.3
|
|
$
378.0
|
|
$
349.3
|
|
1.9
|
|
10.3
|
|
$
344.3
|
|
$
363.1
|
|
(5.2)
|
Provision for credit
losses
|
26.5
|
|
10.1
|
|
(3.5)
|
|
163.2
|
|
847.9
|
|
61.8
|
|
(4.9)
|
|
1,373.4
|
Net loan
(charge-offs)/recoveries
|
(11.9)
|
|
(2.8)
|
|
(1.4)
|
|
332.6
|
|
737.2
|
|
(16.2)
|
|
(13.9)
|
|
15.8
|
Allowance for
purchased credit deteriorated (PCD) loans and leases at
acquisition
|
1.8
|
|
—
|
|
—
|
|
|
|
|
|
11.8
|
|
—
|
|
|
Allowance for
credit losses on loans and leases
|
$
401.7
|
|
$
385.3
|
|
$
344.3
|
|
4.2
|
|
16.7
|
|
$
401.7
|
|
$
344.3
|
|
16.7
|
Allowance for
Unfunded Loan Commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for unfunded
loan commitments balance at beginning of
period
|
$
19.4
|
|
$
18.2
|
|
$
17.9
|
|
6.7
|
|
7.9
|
|
$
19.2
|
|
$
13.6
|
|
40.4
|
Provision (reduction
in allowance) for unfunded loan commitments /
other adjustments
|
2.0
|
|
1.1
|
|
1.2
|
|
79.9
|
|
69.1
|
|
2.2
|
|
5.5
|
|
(59.2)
|
Allowance for
unfunded loan commitments
|
$
21.4
|
|
$
19.3
|
|
$
19.1
|
|
11.0
|
|
11.8
|
|
$
21.4
|
|
$
19.1
|
|
11.9
|
Total allowance for
credit losses on loans and leases and allowance
for unfunded loan commitments
|
$
423.1
|
|
$
404.6
|
|
$
363.4
|
|
4.6
|
|
16.4
|
|
$
423.1
|
|
$
363.4
|
|
16.4
|
Allowance for credit
losses on loans and leases / total loans and leases
|
1.33 %
|
|
1.34 %
|
|
1.38 %
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans and leases / total non-performing
loans
|
354.3
|
|
439.9
|
|
391.9
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(annualized) / total average loans and leases
|
0.16
|
|
0.04
|
|
0.02
|
|
|
|
|
|
0.06 %
|
|
0.06 %
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q22
|
|
4Q22
|
|
For the Twelve
Months
Ended
December 31,
|
|
%
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
3Q22
|
|
4Q21
|
|
2022
|
|
2021
|
|
Var.
|
Operating net income
available to
common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common
stockholders
|
$
137,460
|
|
$
135,488
|
|
$
96,456
|
|
|
|
|
|
$ 431,068
|
|
$ 396,561
|
|
|
Merger-related
expense
|
12,498
|
|
2,105
|
|
824
|
|
|
|
|
|
45,259
|
|
1,764
|
|
|
Tax benefit of
merger-related
expense
|
(2,624)
|
|
(442)
|
|
(173)
|
|
|
|
|
|
(9,504)
|
|
(370)
|
|
|
Provision expense
related to acquisitions
|
9,388
|
|
—
|
|
—
|
|
|
|
|
|
28,515
|
|
—
|
|
|
Tax benefit of
provision expense related to
acquisitions
|
(1,971)
|
|
—
|
|
—
|
|
|
|
|
|
(5,988)
|
|
—
|
|
|
Branch consolidation
costs
|
2,838
|
|
—
|
|
—
|
|
|
|
|
|
7,016
|
|
2,644
|
|
|
Tax benefit of branch
consolidation
costs
|
(596)
|
|
—
|
|
—
|
|
|
|
|
|
(1,473)
|
|
(555)
|
|
|
Operating net income
available to
common stockholders (non-GAAP)
|
$
156,993
|
|
$
137,151
|
|
$
97,107
|
|
14.5
|
|
61.7
|
|
$ 494,893
|
|
$ 400,044
|
|
23.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings per
diluted
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
common share
|
$ 0.38
|
|
$ 0.38
|
|
$ 0.30
|
|
|
|
|
|
$
1.22
|
|
$
1.23
|
|
|
Merger-related
expense
|
0.03
|
|
0.01
|
|
—
|
|
|
|
|
|
0.13
|
|
0.01
|
|
|
Tax benefit of
merger-related
expense
|
(0.01)
|
|
—
|
|
—
|
|
|
|
|
|
(0.03)
|
|
—
|
|
|
Provision expense
related to
acquisitions
|
0.03
|
|
—
|
|
—
|
|
|
|
|
|
0.08
|
|
—
|
|
|
Tax benefit of
provision expense
related to acquisitions
|
(0.01)
|
|
—
|
|
—
|
|
|
|
|
|
(0.02)
|
|
—
|
|
|
Branch consolidation
costs
|
0.01
|
|
—
|
|
—
|
|
|
|
|
|
0.02
|
|
0.01
|
|
|
Tax benefit of branch
consolidation
costs
|
—
|
|
—
|
|
—
|
|
|
|
|
|
—
|
|
—
|
|
|
Operating earnings per
diluted
common share (non-GAAP)
|
$ 0.44
|
|
$ 0.39
|
|
$ 0.30
|
|
12.8
|
|
46.7
|
|
$
1.40
|
|
$
1.24
|
|
12.9
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months
Ended
December 31,
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
2022
|
|
2021
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Net income
(annualized)
|
$ 553,337
|
|
$ 545,507
|
|
$ 390,657
|
|
$ 439,109
|
|
$ 404,602
|
Amortization of
intangibles, net of tax
(annualized)
|
11,110
|
|
11,119
|
|
9,467
|
|
10,956
|
|
9,573
|
Tangible net income
(annualized) (non-
GAAP)
|
$ 564,447
|
|
$ 556,626
|
|
$ 400,124
|
|
$ 450,065
|
|
$ 414,175
|
|
|
|
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
5,508,617
|
|
$
5,506,949
|
|
$
5,111,153
|
|
$
5,475,843
|
|
$
5,033,188
|
Less: Average
intangible assets (1)
|
(2,502,697)
|
|
(2,487,434)
|
|
(2,305,907)
|
|
(2,481,533)
|
|
(2,310,419)
|
Average tangible
stockholders' equity (non-
GAAP)
|
$
3,005,920
|
|
$
3,019,515
|
|
$
2,805,246
|
|
$
2,994,310
|
|
$
2,722,769
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity (non-
GAAP)
|
18.78 %
|
|
18.43 %
|
|
14.26 %
|
|
15.03 %
|
|
15.21 %
|
Return on average
tangible common equity:
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Net income available to
common
stockholders (annualized)
|
$ 545,358
|
|
$ 537,532
|
|
$ 382,678
|
|
$ 431,068
|
|
$ 396,561
|
Amortization of
intangibles, net of tax
(annualized)
|
11,110
|
|
11,119
|
|
9,467
|
|
10,956
|
|
9,573
|
Tangible net income
available to common
stockholders (annualized) (non-GAAP)
|
$ 556,468
|
|
$ 548,651
|
|
$ 392,145
|
|
$ 442,024
|
|
$ 406,134
|
|
|
|
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
5,508,617
|
|
$
5,506,949
|
|
$
5,111,153
|
|
$
5,475,843
|
|
$
5,033,188
|
Less: Average
preferred stockholders'
equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Average
intangible assets (1)
|
(2,502,697)
|
|
(2,487,434)
|
|
(2,305,907)
|
|
(2,481,533)
|
|
(2,310,419)
|
Average tangible common
equity (non-
GAAP)
|
$
2,899,038
|
|
$
2,912,633
|
|
$
2,698,364
|
|
$
2,887,428
|
|
$
2,615,887
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity
(non-GAAP)
|
19.19 %
|
|
18.84 %
|
|
14.53 %
|
|
15.31 %
|
|
15.53 %
|
Operating return on
average tangible
common equity:
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Operating net income
available to common
stockholders (annualized)
|
$ 622,853
|
|
|
|
|
|
|
|
|
Amortization of
intangibles, net of tax
(annualized)
|
11,110
|
|
|
|
|
|
|
|
|
Tangible operating net
income available to
common stockholders (annualized) (non-
GAAP)
|
$ 633,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
5,508,617
|
|
|
|
|
|
|
|
|
Less: Average
preferred stockholders'
equity
|
(106,882)
|
|
|
|
|
|
|
|
|
Less: Average
intangible assets (1)
|
(2,502,697)
|
|
|
|
|
|
|
|
|
Average tangible common
equity (non-
GAAP)
|
$
2,899,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on
average tangible
common equity (non-GAAP)
|
21.87 %
|
|
|
|
|
|
|
|
|
(1) Excludes loan
servicing rights.
|
|
|
|
|
|
|
|
|
|
Return on average
tangible assets:
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Net income
(annualized)
|
$
553,337
|
|
$
545,507
|
|
$
390,657
|
|
$
439,109
|
|
$
404,602
|
Amortization of
intangibles, net of tax
(annualized)
|
11,110
|
|
11,119
|
|
9,467
|
|
10,956
|
|
9,573
|
Tangible net income
(annualized) (non-
GAAP)
|
$
564,447
|
|
$
556,626
|
|
$
400,124
|
|
$
450,065
|
|
$
414,175
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
$
42,751,339
|
|
$
42,039,932
|
|
$
39,519,006
|
|
$
41,954,708
|
|
$
38,603,092
|
Less: Average
intangible assets (1)
|
(2,502,697)
|
|
(2,487,434)
|
|
(2,305,907)
|
|
(2,481,533)
|
|
(2,310,419)
|
Average tangible assets
(non-GAAP)
|
$
40,248,642
|
|
$
39,552,498
|
|
$
37,213,099
|
|
$
39,473,175
|
|
$
36,292,673
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible assets (non-
GAAP)
|
1.40 %
|
|
1.41 %
|
|
1.08 %
|
|
1.14 %
|
|
1.14 %
|
(1) Excludes loan
servicing rights.
|
|
|
|
|
|
|
|
|
|
F.N.B. CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
Tangible book value per
common share:
|
|
|
|
|
|
(Dollars in thousands,
except per share data)
|
|
|
|
|
|
Total stockholders'
equity
|
$
5,653,364
|
|
$
5,406,485
|
|
$
5,149,864
|
Less: Preferred
stockholders' equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Intangible
assets (1)
|
(2,566,029)
|
|
(2,486,183)
|
|
(2,304,410)
|
Tangible common equity
(non-GAAP)
|
$
2,980,453
|
|
$
2,813,420
|
|
$
2,738,572
|
|
|
|
|
|
|
Common shares
outstanding
|
360,470,110
|
|
350,756,155
|
|
318,933,492
|
|
|
|
|
|
|
Tangible book value per
common share (non-GAAP)
|
$
8.27
|
|
$
8.02
|
|
$
8.59
|
Tangible equity /
tangible assets (period end):
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Total stockholders'
equity
|
$
5,653,364
|
|
$
5,406,485
|
|
$
5,149,864
|
Less: Intangible
assets (1)
|
(2,566,029)
|
|
(2,486,183)
|
|
(2,304,410)
|
Tangible equity
(non-GAAP)
|
$
3,087,335
|
|
$
2,920,302
|
|
$
2,845,454
|
|
|
|
|
|
|
Total assets
|
$
43,724,973
|
|
$
42,590,050
|
|
$
39,513,318
|
Less: Intangible
assets (1)
|
(2,566,029)
|
|
(2,486,183)
|
|
(2,304,410)
|
Tangible assets
(non-GAAP)
|
$
41,158,944
|
|
$
40,103,867
|
|
$
37,208,908
|
|
|
|
|
|
|
Tangible equity /
tangible assets (period end) (non-GAAP)
|
7.50 %
|
|
7.28 %
|
|
7.65 %
|
Tangible common equity
/ tangible assets (period end):
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Total stockholders'
equity
|
$
5,653,364
|
|
$
5,406,485
|
|
$
5,149,864
|
Less: Preferred
stockholders' equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Intangible
assets (1)
|
(2,566,029)
|
|
(2,486,183)
|
|
(2,304,410)
|
Tangible common equity
(non-GAAP)
|
$
2,980,453
|
|
$
2,813,420
|
|
$
2,738,572
|
|
|
|
|
|
|
Total assets
|
$
43,724,973
|
|
$
42,590,050
|
|
$
39,513,318
|
Less: Intangible
assets (1)
|
(2,566,029)
|
|
(2,486,183)
|
|
(2,304,410)
|
Tangible assets
(non-GAAP)
|
$
41,158,944
|
|
$
40,103,867
|
|
$
37,208,908
|
|
|
|
|
|
|
Tangible common equity
/ tangible assets (period end) (non-GAAP)
|
7.24 %
|
|
7.02 %
|
|
7.36 %
|
(1) Excludes loan
servicing rights.
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
|
|
2022
|
Provision for credit
losses, excluding the initial provision for non-PCD loans
associated with the Howard and
Union acquisitions
|
|
(Dollars in
thousands)
|
|
Provision for credit
losses
|
$
64,206
|
Less: Initial provision
for non-PCD loans associated with the Howard and Union
acquisitions
|
(28,515)
|
Provision for credit
losses, excluding the initial provision for non-PCD loans
associated with the Howard and
Union acquisitions (non-GAAP)
|
$
35,691
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months
Ended
December 31,
|
|
4Q22
|
|
3Q22
|
|
4Q21
|
|
2022
|
|
2021
|
KEY PERFORMANCE
INDICATORS
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue / average tangible
common equity:
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
334,889
|
|
$
297,125
|
|
$
223,276
|
|
$
1,119,780
|
|
$
906,476
|
Non-interest
income
|
80,613
|
|
82,464
|
|
78,988
|
|
323,553
|
|
330,419
|
Less: Non-interest
expense
|
(211,135)
|
|
(195,057)
|
|
(181,580)
|
|
(826,392)
|
|
(733,168)
|
Pre-provision net
revenue (as reported)
|
$
204,367
|
|
$
184,532
|
|
$
120,684
|
|
$
616,941
|
|
$
503,727
|
Pre-provision net
revenue (as reported)
(annualized)
|
$
810,804
|
|
$
732,112
|
|
$
478,799
|
|
$
616,941
|
|
$
503,727
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Add: Merger-related
expense (non-interest
expense)
|
12,498
|
|
2,105
|
|
824
|
|
45,259
|
|
1,764
|
Add: Branch
consolidation costs (non-interest
expense)
|
2,838
|
|
—
|
|
—
|
|
7,016
|
|
2,644
|
Pre-provision net
revenue (operating) (non-
GAAP)
|
$
219,703
|
|
$
186,637
|
|
$
121,508
|
|
$
669,216
|
|
$
508,135
|
Pre-provision net
revenue (operating)
(annualized) (non-GAAP)
|
$
871,647
|
|
$
740,464
|
|
$
482,072
|
|
$
669,216
|
|
$
508,135
|
Average total
shareholders' equity
|
$
5,508,617
|
|
$
5,506,949
|
|
$
5,111,153
|
|
$
5,475,843
|
|
$
5,033,188
|
Less: Average preferred
shareholders' equity
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
|
(106,882)
|
Less: Average
intangible assets (1)
|
(2,502,697)
|
|
(2,487,434)
|
|
(2,305,907)
|
|
(2,481,533)
|
|
(2,310,419)
|
Average tangible common
equity (non-GAAP)
|
$
2,899,038
|
|
$
2,912,633
|
|
$
2,698,364
|
|
$
2,887,428
|
|
$
2,615,887
|
Pre-provision net
revenue (reported) /
average tangible common
equity (non-GAAP)
|
27.97 %
|
|
25.14 %
|
|
17.74 %
|
|
21.37 %
|
|
19.26 %
|
Pre-provision net
revenue (operating) /
average tangible common
equity (non-GAAP)
|
30.07 %
|
|
25.42 %
|
|
17.87 %
|
|
23.18 %
|
|
19.42 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(FTE):
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
211,135
|
|
$
195,057
|
|
$
181,580
|
|
$
826,392
|
|
$
733,168
|
Less:
Amortization of intangibles
|
(3,545)
|
|
(3,547)
|
|
(3,021)
|
|
(13,868)
|
|
(12,117)
|
Less: OREO
expense
|
(459)
|
|
(485)
|
|
(532)
|
|
(1,692)
|
|
(2,598)
|
Less: Merger-related expense
|
(12,498)
|
|
(2,105)
|
|
(824)
|
|
(45,259)
|
|
(1,764)
|
Less: Branch
consolidation costs
|
(2,838)
|
|
—
|
|
—
|
|
(7,016)
|
|
(2,644)
|
Adjusted non-interest
expense
|
$
191,795
|
|
$
188,920
|
|
$
177,203
|
|
$
758,557
|
|
$
714,045
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
334,889
|
|
$
297,125
|
|
$
223,276
|
|
$
1,119,780
|
|
$
906,476
|
Taxable equivalent
adjustment
|
3,118
|
|
2,916
|
|
2,727
|
|
11,288
|
|
10,948
|
Non-interest
income
|
80,613
|
|
82,464
|
|
78,988
|
|
323,553
|
|
330,419
|
Less: Net
securities gains
|
—
|
|
—
|
|
—
|
|
(48)
|
|
(193)
|
Adjusted net interest
income (FTE) + non-interest
income
|
$
418,620
|
|
$
382,505
|
|
$
304,991
|
|
$
1,454,573
|
|
$
1,247,650
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (FTE)
(non-GAAP)
|
45.82 %
|
|
49.39 %
|
|
58.10 %
|
|
52.15 %
|
|
57.23 %
|
(1) Excludes loan
servicing rights.
|
|
|
|
|
|
|
|
|
|
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SOURCE F.N.B. Corporation