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      F.N.B. Corporation Reports Third Quarter 2020 Earnings per Share of $0.25

      Record fee income ~ Continued liquidity and capital build ~ Recognized as a 2020 Standout Commercial Bank


      News provided by

      F.N.B. Corporation

      Oct 19, 2020, 18:00 ET

      Share this article

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      PITTSBURGH, Oct. 19, 2020 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) reported earnings for the third quarter of 2020 with net income available to common stockholders of $80.8 million, or $0.25 per diluted common share. Comparatively, third quarter of 2019 net income available to common stockholders totaled $100.7 million, or $0.31 per diluted common share and second quarter of 2020 net income available to common shareholders totaled $81.6 million, or $0.25 per diluted common share. On an operating basis, the third quarter of 2020 earnings per diluted common share (non-GAAP) was $0.26, excluding $0.01 for significant items. Operating earnings per diluted common share (non-GAAP) for the third quarter of 2019 was $0.31 and $0.26 for the second quarter of 2020, excluding $0.01 for significant items in the second quarter of 2020.

      Vincent J. Delie, Jr., Chairman, President, and Chief Executive Officer of F.N.B. Corporation, said of its results, "In this challenging economic environment prompted by the global pandemic, FNB continues to produce positive results built on employee protection and assistance, operational response and preparedness, continued customer and community support, and stringent risk management. Our performance is directly attributable to our resilient business model, which is based upon the deployment of technology and expansion into attractive new markets. Revenue continued to increase and operating EPS totaled $0.26, resulting in an operating return on tangible equity of 14%. These results reflect continued average loan and deposit growth of 2% and 4%, respectively, strong capital markets activity and record mortgage banking levels of $19 million. On a linked-quarter basis, tangible book value per share increased $0.18 to $7.81, as we strengthened our capital ratios while sustaining our quarterly dividend of $0.12 per share. We are encouraged by this quarter's positive results as FNB remains profitable while building capital and reserves."

      Third Quarter 2020 Highlights
      (All comparisons refer to the third quarter of 2019, except as noted)

      • Growth in total average loans was $3.3 billion, or 14.7%, with average commercial loan growth of $3.3 billion, or 22.9%, and average consumer loan growth of $57 million, or 0.7%. Total loan growth included $2.5 billion of net PPP commercial loans originated in 2020.
      • Total average deposits grew $4.3 billion, or 17.8%, primarily due to an increase in average non-interest-bearing deposits of $2.5 billion, or 39.7%, and an increase in average interest-bearing demand deposits of $2.6 billion, or 25.9%, partially offset by a managed decrease in average time deposits of $1.2 billion, or 22.4%. Growth in average deposits reflected inflows from the PPP and government stimulus activities, in addition to organic growth in new and existing customer relationships.
      • The loan to deposit ratio was 89.1% at September 30, 2020, compared to 93.8% at September 30, 2019, as deposit growth outpaced loan growth and $508 million of indirect auto installment loans were transferred to loans held for sale in September 2020 in anticipation of a loan sale expected to close in the fourth quarter.
      • Net interest income decreased $2.7 million, or 1.2%, attributable to lower interest rates compared to 2019 as the quarterly average 1-month LIBOR rate decreased from 2.18% in the third quarter of 2019 to 0.16% in the third quarter of 2020. These decreases were largely offset by growth in average earning assets, reductions in the cost of interest-bearing deposits and strong growth in non-interest bearing deposits.
      • On a linked-quarter basis, the net interest margin (FTE) (non-GAAP) decreased 9 basis points to 2.79% as earning asset yields declined 20 basis points and the total cost of funds decreased 11 basis points, as the cost of interest-bearing deposits decreased 17 basis points. Compared to the third quarter of 2019, the net interest margin declined 38 basis points from 3.17%, due to the significantly lower levels of interest rates.
      • Non-interest income was stable at $80.0 million, with an increase of $9.1 million, or 93.1%, in record levels of mortgage banking income offset by a decrease of $8.9 million, or 26.7%, in service charges, given significantly lower transaction volumes in the COVID-19 environment and service charge refunds of $3.8 million.
      • The effective tax rate was 17.0%, compared to 14.5%, primarily due to greater benefit from renewable energy investment tax credits realized during the third quarter of 2019.
      • The efficiency ratio (non-GAAP) equaled 55.3%, compared to 54.1%.
      • The annualized net charge-offs to total average loans ratio increased 18 basis points to 0.29% from 0.11%.
      • The ratio of tangible common equity to tangible assets (non-GAAP) increased 22 basis points to 7.19% compared to June 30, 2020, with net PPP loan balances negatively impacting the September 30, 2020 and June 30, 2020 TCE ratios by 56 and 53 basis points, respectively. Compared to the year ago quarter, the ratio decreased 25 basis points due primarily to the PPP loan impact and the 2020 Day 1 Current Expected Credit Losses (CECL) adoption impact. On a linked-quarter basis, tangible book value per common share (non-GAAP) increased $0.18, or 2.4%, to $7.81.

      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. 

      Quarterly Results Summary

      3Q20


      2Q20


      3Q19

      Reported results






      Net income available to common stockholders (millions)

      $

      80.8



      $

      81.6



      $

      100.7


      Net income per diluted common share

      0.25



      0.25



      0.31


      Book value per common share (period-end)

      14.99



      14.82



      14.51


      Pre-provision net revenue (reported) (millions)

      126.9



      129.7



      132.0


      Operating results (non-GAAP)






      Operating net income available to common stockholders (millions)

      $

      85.5



      $

      83.2



      $

      100.7


      Operating net income per diluted common share

      0.26



      0.26



      0.31


      Tangible common equity to tangible assets (period-end)

      7.19

      %


      6.97

      %


      7.44

      %

      Tangible book value per common share (period-end)

      $

      7.81



      $

      7.63



      $

      7.33


      Pre-provision net revenue (operating) (millions)

      $

      132.9



      $

      135.7



      $

      135.2


      Average diluted common shares outstanding (thousands)

      325,663



      325,153



      326,100


      Significant items impacting earnings1 (millions)






      Pre-tax COVID-19 expense

      $

      (2.7)



      $

      (2.0)



      $

      —


      After-tax impact of COVID-19 expense

      (2.1)



      (1.6)



      —


      Pre-tax gain on sale of Visa class B stock

      13.8



      —



      —


      After-tax impact of gain on sale of Visa class B stock

      10.9



      —



      —


      Pre-tax loss on FHLB debt extinguishment and related hedge terminations

      (13.3)



      —



      —


      After-tax impact of loss on FHLB debt extinguishment and related hedge terminations

      (10.5)



      —



      —


      Pre-tax service charge refunds

      (3.8)



      —



      —


      After-tax impact of service charge refunds

      (3.0)



      —



      —


      Total significant items pre-tax

      $

      (6.0)



      $

      (2.0)



      $

      —


      Total significant items after-tax

      $

      (4.7)



      $

      (1.6)



      $

      —








      Year-to-Date Results Summary

      2020


      2019



      Reported results






      Net income available to common stockholders (millions)

      $

      207.8



      $

      286.0




      Net income per diluted common share

      0.64



      0.88




      Pre-provision net revenue (reported) (millions)

      362.8



      392.3




      Operating results (non-GAAP)






      Operating net income available to common stockholders (millions)

      $

      222.1



      $

      289.6




      Operating net income per diluted common share

      0.68



      0.89




      Pre-provision net revenue (operating) (millions)

      385.1



      400.0




      Average diluted common shares outstanding (thousands)

      325,694



      325,769




      Significant items impacting earnings1 (millions)






      Pre-tax COVID-19 expense

      $

      (6.6)



      $

      —




      After-tax impact of COVID-19 expense

      (5.2)



      —




      Pre-tax gain on sale of Visa class B stock

      13.8



      —




      After-tax impact of gain on sale of Visa class B stock

      10.9



      —




      Pre-tax loss on FHLB debt extinguishment and related hedge terminations

      (13.3)



      —




      After-tax impact of loss on FHLB debt extinguishment and related hedge terminations

      (10.5)



      —




      Pre-tax branch consolidation costs

      (8.3)



      (4.5)




      After-tax impact of branch consolidation costs

      (6.5)



      (3.6)




      Pre-tax service charge refunds

      (3.8)



      —




      After-tax impact of service charge refunds

      (3.0)



      —




      Total significant items pre-tax

      $

      (18.2)



      $

      (4.5)




      Total significant items after-tax

      $

      (14.3)



      $

      (3.6)




      (1) Favorable (unfavorable) impact on earnings.

      Third Quarter 2020 Results – Comparison to Prior-Year Quarter

      Net interest income totaled $227.1 million, decreasing $2.7 million, or 1.2%, as significant growth in average loans and deposits of $3.3 billion and $4.3 billion, respectively, mostly offset the repricing impact from lower interest rates on earning asset yields. Total average earning assets increased $3.6 billion, or 12.2%, due to organic average loan growth and the benefit of $2.5 billion in net PPP loans.

      The net interest margin (FTE) (non-GAAP) declined 38 basis points to 2.79%, as earning asset yields decreased 97 basis points primarily reflecting the impact on the variable rate loans of significant reductions in 1-month LIBOR and the Prime rate. Partially offsetting the lower earning asset yields, the total cost of funds improved 61 basis points to 0.56%, compared to 1.17%, due to a 70 basis point reduction in interest-bearing deposit costs and lower borrowing costs.

      Average loans totaled $26.1 billion, an increase of $3.3 billion, or 14.7%, through a combination of $0.7 billion of organic average loan growth and $2.5 billion of net PPP average loan balances. Average total commercial loan growth totaled $3.3 billion, or 22.9%, including $2.5 billion, or 49.1%, growth in commercial and industrial loans and $0.7 billion, or 7.6%, growth in commercial real estate balances. Excluding PPP loans, organic activity was led by growth in the Pittsburgh, Cleveland, South Carolina, and Mid-Atlantic (Washington D.C., northern Virginia and Maryland markets) regions. Average consumer loan growth was $57 million, or 0.7%, with growth in residential mortgages of $338 million, or 10.6%, and direct installment loans of $202 million, or 11.5%, partially offset by a decline in consumer lending heavily impacted by COVID-19 as indirect auto loans decreased $348 million, or 17.8%, and consumer lines of credit decreased $135 million, or 9.1%. During September 2020, $508 million of indirect auto installment loans were transferred to loans held for sale in anticipation of loan sale expected to close in the fourth quarter.

      Average deposits totaled $28.4 billion with growth in non-interest bearing demand deposits of $2.5 billion, or 39.7%, and interest-bearing demand deposits of $2.6 billion, or 25.9%. The growth in deposits was driven by solid organic growth in customer relationships, as well as deposits from PPP funding and government stimulus activities. The loan-to-deposit ratio was 89.1% at September 30, 2020, compared to 93.8% at September 30, 2019.

      Strong deposit growth allowed FNB to reduce higher rate Federal Home Loan Bank (FHLB) borrowings by $415 million during the third quarter of 2020 at a loss on debt extinguishment and related hedge termination costs of $13.3 million, which was reported in other non-interest income. These balance sheet actions taken to reduce higher-cost debt will provide future benefit through lower interest expense on outstanding borrowings.

      Non-interest income totaled $80.0 million, which was stable compared to the third quarter of 2019. Mortgage banking operations income increased $9.1 million, or 93.1%, primarily due to $24 million in origination and secondary marketing revenue, compared to $10 million in the third quarter of 2019, as sold mortgage production volume increased 15% to $478 million and gain on sale margins meaningfully improved. Service charges decreased $8.9 million, or 26.7%, due to noticeably lower transaction volumes given COVID-19 and $3.8 million of service charge refunds. However, customer transaction volume has started to increase over the last few months. There was also a reduction of the FHLB dividend rate resulting in the $2.1 million, or 45.3%, decrease in dividends on non-marketable equity securities. The termination of $415 million in higher-rate FHLB borrowings resulted in a loss on debt extinguishment and related hedge termination costs of $13.3 million reported in other non-interest income. Offsetting these charges was a $13.8 million gain on the sale of all of the Bank's holdings of Visa Class B shares that was also reported in other non-interest income.

      Non-interest expense totaled $180.2 million, increasing $2.4 million, or 1.4%. Non-interest expense decreased $0.2 million, or 0.1%, when excluding $2.7 million of COVID-19 expenses in the third quarter of 2020. Salaries and benefits increased $6.7 million, or 7.1%, due primarily to higher production-related commissions, and the normal impact from annual merit increases. Occupancy and equipment expense increased $2.0 million, or 7.0%, reflecting expansion in key regions such as the Mid-Atlantic and South Carolina. FDIC insurance decreased $1.6 million as deposit growth provided additional liquidity and resulted in a lower FDIC assessment rate. The efficiency ratio (non-GAAP) equaled 55.3%, compared to 54.1%.

      The ratio of non-performing loans, 90 days past due, and other real estate owned (OREO) to total loans and OREO increased 11 basis points to 0.84%. Prior to the adoption of CECL, acquired (purchased credit deteriorated, or PCD) loans were excluded from our non-performing disclosures. PCD loans that meet the definition of non-accrual are now included in the disclosures and resulted in a $58 million increase in non-accrual loans in the third quarter of 2020, compared to the third quarter of 2019. Total delinquency increased 16 basis points to 1.07%, compared to 0.91% at September 30, 2019 and remains at satisfactory levels. Excluding PPP loans at September 30, 2020, total delinquency increased 27 basis points to 1.18%, still at satisfactory levels within a less favorable economic environment. The total level of loans on temporary deferral is 3.4% as of September 30, 2020 with 1.4% still in a first deferral stage and 2.0% on the second deferral.

      The provision for credit losses totaled $27.2 million, compared to $11.9 million. Net charge-offs were $19.3 million, or 0.29% annualized, of total average loans. The ratio of the ACL to total loans and leases was 1.45% and 0.84% at September 30, 2020 and 2019, respectively. Excluding PPP loans that do not carry an ACL due to a 100% government guarantee, the ACL to total loans and leases ratio equaled 1.61% at September 30, 2020. Additionally, the CECL adoption on January 1, 2020, resulted in a Day 1 increase to the ACL of $105.3 million.

      The effective tax rate was 17.0%, compared to 14.5%, which was driven by greater benefit from renewable energy investment tax credits in the third quarter of 2019.

      The tangible common equity to tangible assets ratio (non-GAAP) decreased 25 basis points to 7.19% at September 30, 2020, compared to 7.44% at September 30, 2019, as the PPP loan activity temporarily impacted the TCE ratio by 56 basis points at September 30, 2020. The tangible book value per common share (non-GAAP) was $7.81 at September 30, 2020, an increase of $0.48, or 6.5%, from $7.33 at September 30, 2019.

      Third Quarter 2020 Results – Comparison to Prior Quarter

      Net interest income totaled $227.1 million, a decrease of $0.9 million, or 0.4%, from the prior quarter total of $228.0 million as loan and deposit growth largely offset the impact from lower interest rates. The net interest margin (FTE) (non-GAAP) decreased 9 basis points to 2.79%, driven by lower earning asset yields due to the low interest rate environment, partially offset by a lower cost of funds and growth in average earning assets.

      Total average earning assets increased $675 million, or 2.1%, due primarily to $461 million in commercial loan activity. The total yield on earning assets declined 20 basis points to 3.34%, reflecting lower yields on fixed-rate loans originated in a lower rate environment and the impact of a 19 basis point decline in average 1-month LIBOR. The total cost of funds decreased to 0.56% from 0.67%, as costs on interest-bearing deposits decreased 17 basis points.

      Average loans totaled $26.1 billion with average commercial loan growth of $584 million, or 3.4%, (including a full quarter of PPP balances) and a decrease in average consumer loans of $123 million, or 1.4%. Average commercial loans included growth of $1.0 billion, or 14.2%, in commercial and industrial loans and a decrease of $0.4 billion, or 3.8%, in commercial real estate. Commercial organic origination activity was led by the Pittsburgh, South Carolina, and Mid-Atlantic regions. Consumer balances included an increase in average direct installment loans of $45 million, or 2.4%, and average residential mortgage loans of $61 million, or 1.8%, largely attributable to the continued higher refinancing activity given the lower interest rate environment. This was partially offset by declines in average balances of indirect auto loans by $193 million, or 10.7%, and average consumer lines of credit by $36 million, or 2.6%. During September 2020, $508 million of indirect auto installment loans were transferred to loans held for sale in anticipation of a loan sale expected to close in the fourth quarter.

      Average deposits totaled $28.4 billion, increasing $1.1 billion, or 4.1%, driven by an increase in non-interest bearing deposits of $529 million, or 6.5%, and interest-bearing deposits of $594 million, or 3.1%, including a managed decline in time deposits of $248 million, or 5.6%. 

      The loan-to-deposit ratio was 89.1% at September 30, 2020, compared to 92.1% at June 30, 2020.

      Non-interest income totaled $80.0 million, increasing $2.4 million, or 3.1%, as mortgage banking operations reached a record level of $18.8 million, an increase of $2.3 million, or 13.8%, reflecting $24 million of origination and secondary marketing revenue. Mortgage production increased 9% from the prior quarter, with large contributions from the Mid-Atlantic and Pittsburgh regions, and the results also reflect a meaningful improvement in gain on sale margins. Service charges slightly increased $0.4 million, or 1.5%, as the increase in customer transaction volume from the prior quarters was partially offset by customer service charge refunds. There was also a reduction of the FHLB dividend rate resulting in the $0.3 million, or 9.8%, decrease in dividends on non-marketable equity securities. The termination of $415 million of higher-rate FHLB borrowings resulted in a loss on debt extinguishment and related hedge termination costs of $13.3 million offset by the $13.8 million gain on the sale of the Bank's holdings of Visa Class B shares.

      Non-interest expense totaled $180.2 million, an increase of $4.3 million, or 2.4%, which included $2.7 million of COVID-19 expenses in the third quarter of 2020, compared to $2.0 million in the second quarter. Excluding these COVID-19 related expenses, non-interest expense increased $3.6 million, or 2.1%, primarily related to higher salaries and employee benefit expense from higher production-related commissions, lower loan origination salary deferrals given the significant PPP loan originations in the prior quarter, and an extra operating day in the third quarter. FDIC insurance decreased $1.3 million, or 24.3%, due primarily to a lower FDIC assessment rate from improved liquidity metrics. In the second quarter of 2020, the Company recognized an impairment of $4.1 million in other non-interest expense from a renewable energy investment tax credit transaction. The related renewable energy investment tax credits were recognized as a benefit to income taxes. The efficiency ratio (non-GAAP) equaled 55.3%, compared to 53.7%.

      The ratio of non-performing loans, 90 days past due, and OREO to total loans and OREO increased 9 basis points to 0.84%. Total delinquency increased 15 basis points to 1.07%, compared to 0.92% at June 30, 2020. Excluding PPP, total delinquency increased 16 basis points to 1.18%. The total level of loans on temporary deferral is 3.4% as of September 30, 2020, compared to 10.7% as of June 30, 2020.

      The provision for credit losses totaled $27.2 million, compared to $30.2 million. The provision for credit losses exceeded net charge-offs of $19.3 million, or 0.29% annualized of total average loans and leases, compared to $8.5 million, or 0.13% annualized. The ratio of the ACL to total loans and leases was 1.45% and 1.40% at September 30 and June 30, respectively. Excluding PPP net loans that do not carry an ACL due to a 100% government guarantee, the ACL to total loans and leases ratio equaled 1.61%, compared to 1.54% at June 30, 2020.

      The effective tax rate was 17.0%, compared to 16.0%, primarily due to greater benefit from renewable energy investment tax credits realized during the second quarter of 2020.

      The tangible common equity to tangible assets ratio (non-GAAP) increased 22 basis points to 7.19% at September 30, 2020, compared to 6.97% at June 30, 2020. Tangible book value per common share (non-GAAP) was $7.81 at September 30, 2020, an increase of $0.18 from June 30, 2020.

      September 30, 2020 Year-To-Date Results - Comparison to Prior Year-To-Date Period

      Net interest income totaled $687.7 million, decreasing $3.1 million, or 0.5%, due to a lower rate environment offset by average earning asset growth of $2.5 billion, or 8.7%. The net interest margin (FTE) (non-GAAP) contracted 28 basis points to 2.93%, primarily due to the impact of lower interest rates as average 1-month LIBOR for the first nine months of 2020 declined to 0.66% from 1.54% for the first nine months of 2019. The yield on earning assets decreased 70 basis points to 3.65%, while the cost of funds improved 43 basis points to 0.74%, primarily due to actions taken to reduce the cost of interest-bearing deposits given the low interest rate environment and strong growth in non-interest bearing deposits. 

      Average loans totaled $25.1 billion, an increase of $2.4 billion, or 10.8%, due to the benefit from PPP activity and solid origination activity across the footprint. Growth in average commercial loans totaled $2.3 billion, or 16.5%, including growth of $1.6 billion, or 33.2%, in commercial and industrial loans. Commercial growth was led by strong commercial activity in the Pittsburgh, Cleveland, South Carolina, and Mid-Atlantic regions. Total average consumer loan growth of $94 million, or 1.1%, was led by increases in residential mortgage loans of $256 million, or 8.0%, and direct installment balances of $155 million, or 8.9%, partially offset by a decline of $132 million, or 8.6%, in consumer credit lines and $186 million, or 9.5%, in indirect auto installment loans.

      Average deposits totaled $26.8 billion, increasing $3.0 billion, or 12.5%, due to average growth of $2.0 billion, or 20.6%, in interest-bearing demand deposits and $1.7 billion, or 27.2%, in non-interest-bearing deposits. On a spot basis, total deposits increased $4.2 billion, or 17.2%, driven by deposits from PPP funding and government stimulus activities, as well as solid organic growth in customer relationships.

      Non-interest income totaled $226.2 million, increasing $6.0 million, or 2.7%. On an operating basis, non-interest income increased $7.5 million, or 3.4%, primarily attributable to the fee-based businesses of mortgage banking and capital markets. Mortgage banking income increased $13.1 million, or 61.5%, as sold production levels increased 28% and gain on sale margins improved meaningfully, partially offset by net MSR impairment of $7.5 million and $2.9 million for the first nine months of 2020 and 2019, respectively. Capital markets increased $7.2 million, or 29.3%, reflecting FNB's strong relationships with new and existing commercial customers. Service charges declined $17.1 million, or 17.9%, as there were noticeably lower customer transaction volumes in the COVID-19 environment, although volumes have steadily increased since late in the second quarter. There was also a reduction of the FHLB dividend rate resulting in the $3.8 million, or 27.6%, decrease in dividends on non-marketable equity securities. The loss on FHLB debt extinguishment and related hedge termination costs of $13.3 million and offsetting $13.8 million gain on the sale of the Bank's holdings of Visa Class B shares were both recorded in other non-interest income.

      Non-interest expense totaled $551.0 million, increasing $32.3 million, or 6.2%. Excluding significant items totaling $14.9 million year-to-date in 2020 and $2.8 million for the same period in 2019, non-interest expense increased $20.2 million, or 3.9%. This increase was attributable to higher salaries and employee benefit expense of $18.9 million, or 6.8%, primarily related to production-related commissions and normal merit increases, as well as increases in net occupancy and equipment of $7.8 million, or 8.7%, and outside services of $3.9 million, or 8.2%. The efficiency ratio (non-GAAP) equaled 56.0%, compared to 54.0% in 2019.

      The provision for credit losses was $105.2 million, compared to $37.0 million, which included CECL and COVID-19 related provision in the first nine months of 2020. Net charge-offs totaled $33.4 million, or 0.18% annualized, of total average loans, compared to $23.0 million, or 0.14% annualized, in 2019.

      The effective tax rate was 17.0% for 2020, compared to 17.8% in 2019.

      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, allowance for credit losses to loans and leases, excluding PPP loans, non-performing loans to loans and leases excluding PPP loans, non-performing loans and 90 days past due and OREO to loans and leases plus OREO, excluding PPP loans, net loan charge-offs to average loans and leases excluding PPP loans, past due and non-accrual loans to loans and leases excluding PPP loans, 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 charges such as branch consolidation costs, certain service charge refunds, and COVID-19 expenses are not organic costs to run our operations and facilities. These charges are considered significant items impacting earnings as they are deemed to be outside of ordinary banking activities. The branch consolidation charges principally represent expenses to satisfy contractual obligations of the closed branches 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.  Similarly, gains derived from the sale of Visa class B stock and losses incurred on FHLB debt extinguishment and related hedge terminations are not organic to our operations. The COVID-19 expenses represent special Company initiatives to support our front-line employees and the communities we serve during an unprecedented time of a pandemic.

      To provide more meaningful 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 2020 and 2019 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.

      F.N.B.'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 and economic 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, 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. economic environment; and (iv) the impacts of tariffs or other trade policies of the U.S. or its global trading partners.
      • 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, deposits and revenues. Our ability to anticipate 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 COVID-19 pandemic crisis, dislocations, 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 management. These developments could include:
        • Changes resulting from a U.S. presidential administration or legislative and regulatory reforms, including changes affecting oversight of the financial services industry, regulatory obligations or restrictions, consumer protection, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles.
        • Changes to regulations governing bank capital and liquidity standards.
        • 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 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.
        • The impact on our financial condition, results of operations, financial disclosures and future business strategies related to the implementation of the new FASB Accounting Standards Update 2016-13 Financial Instruments -Credit Losses commonly referred to as the "current expected credit loss" 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 regulatory and governmental actions implemented in response to COVID-19 have resulted in significant deterioration and disruption in financial markets, national and local economic conditions and record levels of unemployment and could have a material impact on, among other things, our business, financial condition, results of operations or 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 than what we are currently expecting, including, but not limited to, a weakened U.S. economic recovery, prolonged economic recovery, deterioration of commercial and consumer customer fundamentals and sentiments, and impairment of the recovery of the U.S. labor market. As a result, the COVID-19 outbreaks and its consequences, including responsive measures to manage it and the uncertainty regarding its duration, may possibly have a material adverse impact on our business, operations and financial performance.

      The risks identified here are not exclusive. 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 Risk Management sections of our Annual Report on Form 10-K (including the MD&A section) for the year ended December 31, 2019, our subsequent 2020 Quarterly Reports on Form 10-Q (including the risk factors and risk management discussions) and our other subsequent filings with the SEC, which are available on our corporate website at https://www.fnb-online.com/about-us/investor-relations-shareholder-services.  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 this Report.

      Conference Call

      F.N.B. Corporation (NYSE: FNB) announced the financial results for the third quarter of 2020 at 6:00 PM ET Monday, October 19, 2020. 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 Tuesday, October 20, 2020 at 8:15 AM ET.

      Participants are encouraged to pre-register for the conference call at http://dpregister.com/10148422. 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 "Investor Relations" section of the Corporation's website at www.fnbcorporation.com. 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, October 27, 2020. 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 10148422. Following the call, a link to the webcast and the related presentation materials will be posted to the "Investor Conference Calls" 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.; and Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina. The Company has total assets of more than $37 billion and approximately 350 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina 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














      3Q20


      3Q20


      For the Nine Months Ended
      September 30,


      %


      3Q20


      2Q20


      3Q19


      2Q20


      3Q19


      2020


      2019


      Var.

      Interest Income
















      Loans and leases, including fees

      $

      239,443



      $

      245,378



      $

      274,127



      (2.4)



      (12.7)



      $

      750,354



      $

      818,627



      (8.3)


      Securities:
















         Taxable

      24,807



      27,373



      30,601



      (9.4)



      (18.9)



      83,515



      95,191



      (12.3)


         Tax-exempt

      7,955



      7,941



      8,086



      0.2



      (1.6)



      23,942



      24,090



      (0.6)


      Other

      226



      154



      1,597



      46.8



      (85.8)



      1,606



      3,047



      (47.3)


           Total Interest Income 

      272,431



      280,846



      314,411



      (3.0)



      (13.4)



      859,417



      940,955



      (8.7)


      Interest Expense
















      Deposits

      27,421



      34,466



      56,249



      (20.4)



      (51.3)



      111,354



      161,043



      (30.9)


      Short-term borrowings

      8,893



      8,320



      17,958



      6.9



      (50.5)



      30,973



      65,908



      (53.0)


      Long-term borrowings

      9,019



      10,099



      10,402



      (10.7)



      (13.3)



      29,400



      23,202



      26.7


           Total Interest Expense

      45,333



      52,885



      84,609



      (14.3)



      (46.4)



      171,727



      250,153



      (31.4)


             Net Interest Income

      227,098



      227,961



      229,802



      (0.4)



      (1.2)



      687,690



      690,802



      (0.5)


      Provision for credit losses

      27,227



      30,177



      11,910



      (9.8)



      128.6



      105,242



      37,017



      184.3


            Net Interest Income After
            Provision for Credit Losses

      199,871



      197,784



      217,892



      1.1



      (8.3)



      582,448



      653,785



      (10.9)


      Non-Interest Income
















      Service charges

      24,296



      23,938



      33,158



      1.5



      (26.7)



      78,362



      95,443



      (17.9)


      Trust services

      7,733



      7,350



      6,932



      5.2



      11.6



      23,045



      20,734



      11.1


      Insurance commissions and fees

      6,401



      5,835



      6,141



      9.7



      4.2



      18,788



      15,449



      21.6


      Securities commissions and fees

      4,494



      3,763



      4,115



      19.4



      9.2



      12,796



      13,131



      (2.6)


      Capital markets income

      8,202



      12,515



      8,713



      (34.5)



      (5.9)



      31,830



      24,616



      29.3


      Mortgage banking operations

      18,831



      16,550



      9,754



      13.8



      93.1



      34,348



      21,272



      61.5


      Dividends on non-marketable equity securities

      2,496



      2,766



      4,565



      (9.8)



      (45.3)



      9,940



      13,723



      (27.6)


      Bank owned life insurance

      3,867



      3,924



      2,720



      (1.5)



      42.2



      10,968



      8,664



      26.6


      Net securities gains

      112



      97



      35



      15.5



      220.0



      262



      35



      648.6


      Other

      3,606



      890



      3,867



      305.2



      (6.7)



      5,853



      7,158



      (18.2)


           Total Non-Interest Income

      80,038



      77,628



      80,000



      3.1



      —



      226,192



      220,225



      2.7


      Non-Interest Expense
















      Salaries and employee benefits

      100,265



      93,992



      93,598



      6.7



      7.1



      298,062



      279,171



      6.8


      Net occupancy

      13,837



      13,594



      13,702



      1.8



      1.0



      48,879



      44,360



      10.2


      Equipment

      17,005



      15,610



      15,114



      8.9



      12.5



      48,661



      45,412



      7.2


      Amortization of intangibles

      3,339



      3,343



      3,602



      (0.1)



      (7.3)



      10,021



      10,560



      (5.1)


      Outside services

      16,676



      17,000



      15,866



      (1.9)



      5.1



      50,572



      46,721



      8.2


      FDIC insurance

      4,064



      5,371



      5,710



      (24.3)



      (28.8)



      14,990



      17,673



      (15.2)


      Bank shares and franchise taxes

      3,778



      4,029



      3,548



      (6.2)



      6.5



      11,899



      10,145



      17.3


      Other

      21,245



      22,993



      26,644



      (7.6)



      (20.3)



      67,949



      64,721



      5.0


           Total Non-Interest Expense

      180,209



      175,932



      177,784



      2.4



      1.4



      551,033



      518,763



      6.2


      Income Before Income Taxes

      99,700



      99,480



      120,108



      0.2



      (17.0)



      257,607



      355,247



      (27.5)


      Income taxes

      16,924



      15,870



      17,366



      6.6



      (2.5)



      43,804



      63,191



      (30.7)


      Net Income

      82,776



      83,610



      102,742



      (1.0)



      (19.4)



      213,803



      292,056



      (26.8)


      Preferred stock dividends

      2,010



      2,010



      2,010



      —



      —



      6,030



      6,030



      —


      Net Income Available to Common Stockholders

      $

      80,766



      $

      81,600



      $

      100,732



      (1.0)



      (19.8)



      $

      207,773



      $

      286,026



      (27.4)


      Earnings per Common Share
















      Basic

      $

      0.25



      $

      0.25



      $

      0.31



      —



      (19.4)



      $

      0.64



      $

      0.88



      (27.3)


      Diluted

      0.25



      0.25



      0.31



      —



      (19.4)



      0.64



      0.88



      (27.3)


      Cash Dividends per Common Share

      0.12



      0.12



      0.12



      —



      —



      0.36



      0.36



      —


      F.N.B. CORPORATION AND SUBSIDIARIES










      CONSOLIDATED BALANCE SHEETS










      (Unaudited)










      (Dollars in millions)







      % Variance








      3Q20


      3Q20


      3Q20


      2Q20


      3Q19


      2Q20


      3Q19

      Assets










      Cash and due from banks

      $

      396



      $

      398



      $

      522



      (0.5)



      (24.1)


      Interest-bearing deposits with banks

      504



      533



      87



      (5.4)



      479.3


      Cash and Cash Equivalents

      900



      931



      609



      (3.3)



      47.8


      Securities available for sale

      3,101



      3,301



      3,262



      (6.1)



      (4.9)


      Securities held to maturity

      2,966



      3,050



      3,192



      (2.8)



      (7.1)


      Loans held for sale

      680



      108



      56



      529.6



      1,114.3


      Loans and leases, net of unearned income

      25,689



      26,162



      23,070



      (1.8)



      11.4


      Allowance for credit losses

      (373)



      (365)



      (194)



      2.2



      92.3


      Net Loans and Leases

      25,316



      25,797



      22,876



      (1.9)



      10.7


      Premises and equipment, net

      335



      332



      329



      0.9



      1.8


      Goodwill

      2,262



      2,262



      2,262



      —



      —


      Core deposit and other intangible assets, net

      57



      61



      71



      (6.6)



      (19.7)


      Bank owned life insurance

      548



      547



      542



      0.2



      1.1


      Other assets

      1,276



      1,332



      1,130



      (4.2)



      12.9


      Total Assets

      $

      37,441



      $

      37,721



      $

      34,329



      (0.7)



      9.1


      Liabilities










      Deposits:










      Non-interest-bearing demand

      $

      8,741



      $

      8,650



      $

      6,292



      1.1



      38.9


      Interest-bearing demand

      13,063



      12,510



      10,654



      4.4



      22.6


      Savings

      3,007



      2,969



      2,526



      1.3



      19.0


      Certificates and other time deposits

      4,025



      4,266



      5,122



      (5.6)



      (21.4)


         Total Deposits

      28,836



      28,395



      24,594



      1.6



      17.2


      Short-term borrowings

      1,899



      2,411



      3,144



      (21.2)



      (39.6)


      Long-term borrowings

      1,397



      1,630



      1,340



      (14.3)



      4.3


      Other liabilities

      358



      388



      431



      (7.7)



      (16.9)


      Total Liabilities

      32,490



      32,824



      29,509



      (1.0)



      10.1


      Stockholders' Equity










      Preferred stock

      107



      107



      107



      —



      —


      Common stock

      3



      3



      3



      —



      —


      Additional paid-in capital

      4,084



      4,081



      4,062



      0.1



      0.5


      Retained earnings

      838



      796



      744



      5.3



      12.6


      Accumulated other comprehensive loss

      (26)



      (35)



      (69)



      (25.7)



      (62.3)


      Treasury stock

      (55)



      (55)



      (27)



      —



      103.7


      Total Stockholders' Equity

      4,951



      4,897



      4,820



      1.1



      2.7


      Total Liabilities and Stockholders' Equity

      $

      37,441



      $

      37,721



      $

      34,329



      (0.7)



      9.1


      F.N.B. CORPORATION AND SUBSIDIARIES


      3Q20


      2Q20


      3Q19

      (Unaudited)




      Interest






      Interest






      Interest



      (Dollars in thousands)


      Average


      Income/


      Yield/


      Average


      Income/


      Yield/


      Average


      Income/


      Yield/



      Balance


      Expense


      Rate


      Balance


      Expense


      Rate


      Balance


      Expense


      Rate

      Assets



















      Interest-bearing deposits with banks


      $

      543,731



      $

      226



      0.17

      %


      $

      300,164



      $

      154



      0.21

      %


      $

      90,389



      $

      1,597



      7.01

      %

      Taxable investment securities (2)


      4,849,384



      24,710



      2.04



      5,083,104



      27,340



      2.15



      5,145,079



      30,601



      2.38


      Non-taxable investment securities (1)


      1,142,971



      10,101



      3.54



      1,115,976



      10,010



      3.59



      1,126,343



      10,095



      3.59


      Loans held for sale


      282,917



      3,349



      4.72



      106,368



      1,055



      3.97



      216,520



      2,206



      4.07


      Loans and leases (1) (3)


      26,063,431



      237,063



      3.62



      25,602,178



      245,438



      3.85



      22,727,470



      273,440



      4.78


      Total Interest Earning Assets (1)


      32,882,434



      275,449



      3.34



      32,207,790



      283,997



      3.54



      29,305,801



      317,939



      4.31


      Cash and due from banks


      369,263







      339,054







      388,864






      Allowance for credit losses


      (371,199)







      (347,227)







      (192,726)






      Premises and equipment


      335,711







      333,322







      330,208






      Other assets


      4,250,497







      4,286,739







      4,018,177






      Total Assets


      $

      37,466,706







      $

      36,819,678







      $

      33,850,324






      Liabilities



















      Deposits:



















      Interest-bearing demand


      $

      12,584,154



      10,041



      0.32



      $

      11,889,774



      14,172



      0.48



      $

      9,999,164



      26,577



      1.05


      Savings


      2,991,381



      261



      0.03



      2,844,104



      564



      0.08



      2,540,462



      2,299



      0.36


      Certificates and other time


      4,149,263



      17,119



      1.64



      4,396,779



      19,731



      1.80



      5,350,198



      27,374



      2.03


      Total interest-bearing deposits


      19,724,798



      27,421



      0.55



      19,130,657



      34,467



      0.72



      17,889,824



      56,250



      1.25


      Short-term borrowings


      2,217,640



      8,893



      1.59



      2,631,009



      8,319



      1.27



      3,231,378



      17,958



      2.19


      Long-term borrowings


      1,526,968



      9,019



      2.35



      1,630,902



      10,099



      2.49



      1,338,716



      10,401



      3.08


      Total Interest-Bearing Liabilities  


      23,469,406



      45,333



      0.77



      23,392,568



      52,885



      0.91



      22,459,918



      84,609



      1.49


      Non-interest-bearing demand deposits


      8,671,940







      8,143,171







      6,207,299






      Total Deposits and Borrowings


      32,141,346





      0.56



      31,535,739





      0.67



      28,667,217





      1.17


      Other liabilities


      409,427







      404,280







      380,390






      Total Liabilities


      32,550,773







      31,940,019







      29,047,607






      Stockholders' equity


      4,915,933







      4,879,659







      4,802,717






      Total Liabilities and Stockholders' Equity


      $

      37,466,706







      $

      36,819,678







      $

      33,850,324






      Net Interest Earning Assets


      $

      9,413,028







      $

      8,815,222







      $

      6,845,883






      Net Interest Income (FTE) (1)




      230,116







      231,112







      233,330




      Tax Equivalent Adjustment




      (3,018)







      (3,151)







      (3,528)




      Net Interest Income




      $

      227,098







      $

      227,961







      $

      229,802




      Net Interest Spread






      2.57

      %






      2.63

      %






      2.82

      %

      Net Interest Margin  (1)






      2.79

      %






      2.88

      %






      3.17

      %


      (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


      Nine Months Ended September 30,


      (Unaudited)


      2020


      2019


      (Dollars in thousands)




      Interest






      Interest






      Average


      Income/


      Yield/


      Average


      Income/


      Yield/




      Balance


      Expense


      Rate


      Balance


      Expense


      Rate


      Assets














      Interest-bearing deposits with banks


      $

      336,541



      $

      1,606



      0.64

      %


      $

      70,426



      $

      3,047



      5.78

      %


      Taxable investment securities (2)


      5,075,865



      83,385



      2.19



      5,294,381



      95,191



      2.40



      Non-taxable investment securities (1)


      1,128,327



      30,179



      3.57



      1,118,964



      30,076



      3.58



      Loans held for sale


      155,713



      5,389



      4.62



      113,721



      3,778



      4.43



      Loans and leases (1) (3)


      25,061,913



      748,328



      3.99



      22,623,558



      819,510



      4.84



      Total Interest Earning Assets (1)


      31,758,359



      868,887



      3.65



      29,221,050



      951,602



      4.35



      Cash and due from banks


      361,171







      377,486







      Allowance for credit losses


      (342,081)







      (188,830)







      Premises and equipment


      334,879







      330,541







      Other assets


      4,205,752







      3,925,050







      Total Assets


      $

      36,318,080







      $

      33,665,297







      Liabilities














      Deposits:














      Interest-bearing demand


      $

      11,839,283



      49,358



      0.56



      $

      9,816,506



      75,272



      1.03



      Savings


      2,818,593



      2,651



      0.13



      2,523,533



      6,532



      0.35



      Certificates and other time


      4,404,265



      59,345



      1.80



      5,390,266



      79,239



      1.97



      Total interest-bearing deposits


      19,062,141



      111,354



      0.78



      17,730,305



      161,043



      1.21



      Short-term borrowings


      2,716,076



      30,973



      1.52



      3,749,324



      65,908



      2.34



      Long-term borrowings


      1,538,425



      29,400



      2.55



      1,030,067



      23,202



      3.01



      Total Interest-Bearing Liabilities  


      23,316,642



      171,727



      0.98



      22,509,696



      250,153



      1.48



      Non-interest-bearing demand deposits


      7,707,562







      6,057,545







      Total Deposits and Borrowings


      31,024,204





      0.74



      28,567,241





      1.17



      Other liabilities


      403,762







      372,276







      Total Liabilities


      31,427,966







      28,939,517







      Stockholders' equity


      4,890,114







      4,725,780







      Total Liabilities and Stockholders' Equity


      $

      36,318,080







      $

      33,665,297







      Net Interest Earning Assets


      $

      8,441,717







      $

      6,711,354







      Net Interest Income (FTE) (1)




      697,160







      701,449





      Tax Equivalent Adjustment




      (9,470)







      (10,647)





      Net Interest Income




      $

      687,690







      $

      690,802





      Net Interest Spread






      2.67

      %






      2.87

      %


      Net Interest Margin (1)






      2.93

      %






      3.21

      %



      (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 Nine Months Ended
      September 30,


      3Q20


      2Q20


      3Q19


      2020


      2019

      Performance Ratios










      Return on average equity

      6.70

      %


      6.89

      %


      8.49

      %


      5.84

      %


      8.26

      %

      Return on average tangible equity (1) 

      13.10



      13.58



      16.98



      11.54



      16.77


      Return on average tangible

      common equity (1) 

      13.34



      13.84



      17.41



      11.72



      17.20


      Return on average assets

      0.88



      0.91



      1.20



      0.79



      1.16


      Return on average tangible assets (1) 

      0.97



      1.01



      1.33



      0.87



      1.28


      Net interest margin (FTE) (2)

      2.79



      2.88



      3.17



      2.93



      3.21


      Yield on earning assets (FTE) (2)

      3.34



      3.54



      4.31



      3.65



      4.35


      Cost of interest-bearing deposits

      0.55



      0.72



      1.25



      0.78



      1.21


      Cost of interest-bearing liabilities 

      0.77



      0.91



      1.49



      0.98



      1.48


      Cost of funds 

      0.56



      0.67



      1.17



      0.74



      1.17


      Efficiency ratio (1)

      55.26



      53.74



      54.11



      55.99



      54.01


      Effective tax rate

      16.97



      15.95



      14.46



      17.00



      17.79


      Pre-provision net revenue (reported) / average tangible common equity (1)

      20.30



      21.30



      22.19



      19.71



      22.92


      Pre-provision net revenue (operating) / average tangible common equity (1)

      21.25



      22.30



      22.73



      20.92



      23.37


      Capital Ratios










      Equity / assets (period end)

      13.22



      12.98



      14.04






      Common equity / assets (period end)

      12.94



      12.70



      13.73






      Common equity tier 1 (3)

      9.6



      9.4



      9.2






      Leverage ratio

      7.78



      7.79



      8.15






      Tangible equity / tangible assets

      (period end) (1)

      7.49



      7.27



      7.78






      Tangible common equity / tangible assets (period end) (1)

      7.19



      6.97



      7.44






      Common Stock Data










      Average diluted common shares outstanding

      325,662,780



      325,152,572



      326,099,870



      325,694,146



      325,769,161


      Period end common shares outstanding

      323,212,398



      323,205,925



      324,879,501






      Book value per common share

      $

      14.99



      $

      14.82



      $

      14.51






      Tangible book value per common share (1)

      7.81



      7.63



      7.33






      Dividend payout ratio (common)

      48.65

      %


      48.14

      %


      39.04

      %


      56.66

      %


      41.20

      %


      (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)


      September 30, 2020 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













      (Unaudited)
















      (Dollars in millions)























      % Variance














      3Q20


      3Q20








      3Q20


      2Q20


      3Q19


      2Q20


      3Q19







      Balances at period end
















      Loans and Leases:
















      Commercial real estate 

      $

      9,521



      $

      9,305



      $

      8,916



      2.3



      6.8








      Commercial and industrial (1)

      7,547



      7,709



      5,205



      (2.1)



      45.0








      Commercial leases

      487



      497



      417



      (2.0)



      16.8








      Other

      65



      40



      35



      62.5



      85.7








      Commercial loans and leases

      17,620



      17,551



      14,573



      0.4



      20.9








      Direct installment

      1,977



      1,947



      1,763



      1.5



      12.1








      Residential mortgages

      3,531



      3,520



      3,300



      0.3



      7.0








      Indirect installment

      1,219



      1,767



      1,949



      (31.0)



      (37.5)








      Consumer LOC

      1,342



      1,377



      1,485



      (2.5)



      (9.6)








      Consumer loans

      8,069



      8,611



      8,497



      (6.3)



      (5.0)








      Total loans and leases

      $

      25,689



      $

      26,162



      $

      23,070



      (1.8)



      11.4








      Note: Loans held for sale were $680, $108 and $56 at 3Q20, 2Q20, and 3Q19, respectively.







      (1) PPP loans were $2.5 billion and $2.5 billion at 3Q20 and 2Q20, respectively.














      % Variance







      Average balances







      3Q20


      3Q20


      For the Nine Months Ended
      September 30,


      %

      Loans and Leases:

      3Q20


      2Q20


      3Q19


      2Q20


      3Q19


      2020


      2019


      Var.

      Commercial real estate 

      $

      9,443



      $

      9,818



      $

      8,776



      (3.8)



      7.6



      $

      9,476



      $

      8,830



      7.3


      Commercial and industrial (1)

      7,628



      6,677



      5,117



      14.2



      49.1



      6,552



      4,920



      33.2


      Commercial leases

      492



      490



      388



      0.3



      26.7



      473



      378



      25.1


      Other

      49



      43



      52



      13.4



      (6.1)



      24



      52



      (54.1)


      Commercial loans and leases

      17,612



      17,028



      14,333



      3.4



      22.9



      16,525



      14,180



      16.5


      Direct installment

      1,960



      1,915



      1,758



      2.4



      11.5



      1,908



      1,753



      8.9


      Residential mortgages

      3,522



      3,461



      3,184



      1.8



      10.6



      3,464



      3,208



      8.0


      Indirect installment

      1,609



      1,802



      1,957



      (10.7)



      (17.8)



      1,768



      1,954



      (9.5)


      Consumer LOC

      1,360



      1,396



      1,495



      (2.6)



      (9.1)



      1,397



      1,529



      (8.6)


      Consumer loans

      8,451



      8,574



      8,394



      (1.4)



      0.7



      8,537



      8,444



      1.1


      Total loans and leases

      $

      26,063



      $

      25,602



      $

      22,727



      1.8



      14.7



      $

      25,062



      $

      22,624



      10.8


      (1) PPP average loans were $2.5 billion and $1.9 billion at 3Q20 and 2Q20, respectively, and $1.3 billion for the nine months ended September 30, 2020.

      F.N.B. CORPORATION AND SUBSIDIARIES











      (Unaudited)







      % Variance


      (Dollars in millions)







      3Q20


      3Q20


      Asset Quality Data

      3Q20


      2Q20


      3Q19


      2Q20


      3Q19


      Non-Performing Assets











      Non-performing loans (1)

      $

      178



      $

      170



      $

      95



      4.7



      87.4



      Other real estate owned (OREO)

      20



      21



      24



      (4.8)



      (16.7)



      Non-performing assets

      $

      198



      $

      191



      $

      119



      3.7



      66.4



      Non-performing loans / total loans and leases

      0.69

      %


      0.65

      %


      0.41

      %






      Non-performing loans + 90 days past due + OREO / total loans and leases + OREO

      0.84



      0.75



      0.73







      Delinquency (2)











      Loans 30-89 days past due

      $

      78



      $

      64



      $

      86



      21.9



      (9.3)



      Loans 90+ days past due

      18



      7



      49



      157.1



      (63.3)



      Non-accrual loans

      178



      170



      76



      4.7



      134.2



      Past due and non-accrual loans

      $

      274



      $

      241



      $

      211



      13.7



      29.9



      Past due and non-accrual loans / total loans and leases

      1.07

      %


      0.92

      %


      0.91

      %







      (1)


      Does not include loans acquired in a business combination at fair value for 3Q19.

      (2)


      Delinquency for the acquired portfolio was $79 at 3Q19.

      F.N.B. CORPORATION AND SUBSIDIARIES
















      (Unaudited)







      % Variance







      (Dollars in millions)







      3Q20


      3Q20


      For the Nine Months Ended
      September 30,


      %

      Allowance on Loans and Leases Rollforward

      3Q20


      2Q20


      3Q19


      2Q20


      3Q19


      2020


      2019


      Var.

      Allowance for Credit Losses (1)
















      Balance at beginning of period

      $

      365.0



      $

      343.3



      $

      188.2



      6.3



      94.0



      $

      195.9



      $

      179.6



      9.1


      Provision for credit losses 

      27.2



      30.2



      11.9



      (9.8)



      128.7



      105.2



      37.0



      184.3


      Net loan (charge-offs)/recoveries

      (19.3)



      (8.5)



      (6.4)



      126.8



      199.5



      (33.4)



      (23.0)



      45.2


      Adjustment due to CECL adoption

      —



      —



      —







      105.3



      —




      Allowance for credit losses

      $

      373.0



      $

      365.0



      $

      193.6



      2.2



      92.6



      $

      373.0



      $

      193.6



      92.6


      Allowance for credit losses / total loans and leases

      1.45

      %


      1.40

      %


      0.84

      %











      Allowance for credit losses / total non-performing loans

      209.8



      214.5



      203.8












      Net loan charge-offs (annualized) / total average loans and leases

      0.29



      0.13



      0.11







      0.18

      %


      0.14

      %




      (1)

      The allowance for credit losses for the acquired portfolio was $5 at September 30, 2019.

      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














      3Q20


      3Q20


      For the Nine Months Ended
      September 30,


      %


      3Q20


      2Q20


      3Q19


      2Q20


      3Q19


      2020


      2019


      Var.

      Operating net income available to common stockholders:
















      (Dollars in thousands)
















      Net income available to common stockholders

      $

      80,766



      $

      81,600



      $

      100,732







      $

      207,773



      $

      286,026




      COVID-19 expense

      2,671



      1,989



      —







      6,622



      —




      Tax benefit of COVID-19 expense

      (561)



      (418)



      —







      (1,391)



      —




      Gain on sale of Visa class B stock

      (13,818)



      —



      —







      (13,818)



      —




      Tax expense of gain on sale of Visa class B stock

      2,902



      —



      —







      2,902



      —




      Loss on FHLB debt extinguishment and related hedge terminations

      13,316



      —



      —







      13,316



      —




      Tax benefit of loss on FHLB debt extinguishment and related hedge terminations

      (2,796)



      —



      —







      (2,796)



      —




      Branch consolidation costs

      —



      —



      —







      8,262



      4,505




      Tax benefit of branch consolidation costs

      —



      —



      —







      (1,735)



      (946)




      Service charge refunds

      3,780



      —



      —







      3,780



      —




      Tax benefit of service charge refunds

      (794)



      —



      —







      (794)



      —




      Operating net income available to common stockholders (non-GAAP)

      $

      85,466



      $

      83,171



      $

      100,732



      2.8



      (15.2)



      $

      222,121



      $

      289,585



      (23.3)


















      Operating earnings per diluted common share:
















      Earnings per diluted common share

      $

      0.25



      $

      0.25



      $

      0.31







      $

      0.64



      $

      0.88




      COVID-19 expense

      0.01



      0.01



      —







      0.02



      —




      Tax benefit of COVID-19 expense

      —



      —



      —







      —



      —




      Gain on sale of Visa class B stock

      (0.04)



      —



      —







      (0.04)



      —




      Tax expense of gain on sale of Visa class B stock

      0.01



      —



      —







      0.01



      —




      Loss on FHLB debt extinguishment and related hedge terminations

      0.04



      —



      —







      0.04



      —




      Tax benefit of loss on FHLB debt extinguishment and related hedge terminations

      (0.01)



      —



      —







      (0.01)



      —




      Branch consolidation costs

      —



      —



      —







      0.03



      0.01




      Tax benefit of branch consolidation costs

      —



      —



      —







      (0.01)



      —




      Service charge refunds

      0.01



      —



      —







      0.01



      —




      Tax benefit of service charge refunds

      —



      —



      —







      —



      —




      Operating earnings per diluted common share (non-GAAP)

      $

      0.26



      $

      0.26



      $

      0.31



      —



      (16.1)



      $

      0.68



      $

      0.89



      (23.6)


      F.N.B. CORPORATION AND SUBSIDIARIES





      (Unaudited)

















      For the Nine Months Ended
      September 30,


      3Q20


      2Q20


      3Q19


      2020


      2019

      Return on average tangible equity:










      (Dollars in thousands)










      Net income (annualized)

      $

      329,305



      $

      336,278



      $

      407,619



      $

      285,591



      $

      390,478


      Amortization of intangibles, net of tax (annualized)

      10,495



      10,623



      11,289



      10,575



      11,154


      Tangible net income (annualized) (non-GAAP)

      $

      339,800



      $

      346,901



      $

      418,908



      $

      296,166



      $

      401,632












      Average total stockholders' equity

      $

      4,915,933



      $

      4,879,659



      $

      4,802,717



      $

      4,890,114



      $

      4,725,780


      Less:  Average intangible assets (1)

      (2,321,352)



      (2,324,696)



      (2,335,273)



      (2,324,638)



      (2,330,850)


      Average tangible stockholders' equity (non-GAAP)

      $

      2,594,581



      $

      2,554,963



      $

      2,467,444



      $

      2,565,476



      $

      2,394,930












      Return on average tangible equity (non-GAAP)

      13.10

      %


      13.58

      %


      16.98

      %


      11.54

      %


      16.77

      %

      Return on average tangible common equity:










      (Dollars in thousands)










      Net income available to common stockholders (annualized)

      $

      321,307



      $

      328,193



      $

      399,644



      $

      277,536



      $

      382,416


      Amortization of intangibles, net of tax (annualized)

      10,495



      10,623



      11,289



      10,575



      11,154


      Tangible net income available to common stockholders (annualized) (non-GAAP)

      $

      331,802



      $

      338,816



      $

      410,933



      $

      288,111



      $

      393,570












      Average total stockholders' equity

      $

      4,915,933



      $

      4,879,659



      $

      4,802,717



      $

      4,890,114



      $

      4,725,780


      Less:  Average preferred stockholders' equity

      (106,882)



      (106,882)



      (106,882)



      (106,882)



      (106,882)


      Less:  Average intangible assets (1)

      (2,321,352)



      (2,324,696)



      (2,335,273)



      (2,324,638)



      (2,330,850)


      Average tangible common equity (non-GAAP)

      $

      2,487,699



      $

      2,448,081



      $

      2,360,562



      $

      2,458,594



      $

      2,288,048












      Return on average tangible common equity
      (non-GAAP)

      13.34

      %


      13.84

      %


      17.41

      %


      11.72

      %


      17.20

      %

      Operating return on average tangible common equity:










      (Dollars in thousands)










      Operating net income available to common stockholders (annualized)

      $

      340,006










      Amortization of intangibles, net of tax (annualized)

      10,495










      Tangible operating net income available to common stockholders (annualized) (non-GAAP)

      $

      350,501




















      Average total stockholders' equity

      $

      4,915,933










      Less: Average preferred stockholders' equity

      (106,882)










      Less: Average intangible assets (1)

      (2,321,352)










      Average tangible common equity (non-GAAP)

      $

      2,487,699




















      Operating return on average tangible common equity (non-GAAP)

      14.09

      %









      (1) Excludes loan servicing rights.










      Return on average tangible assets:










      (Dollars in thousands)










      Net income (annualized)

      $

      329,305



      $

      336,278



      $

      407,619



      $

      285,591



      $

      390,478


      Amortization of intangibles, net of tax (annualized)

      10,495



      10,623



      11,289



      10,575



      11,154


      Tangible net income (annualized) (non-GAAP)

      $

      339,800



      $

      346,901



      $

      418,908



      $

      296,166



      $

      401,632












      Average total assets

      $

      37,466,706



      $

      36,819,678



      $

      33,850,324



      $

      36,318,080



      $

      33,665,297


      Less:  Average intangible assets (1)

      (2,321,352)



      (2,324,696)



      (2,335,273)



      (2,324,638)



      (2,330,850)


      Average tangible assets (non-GAAP)

      $

      35,145,354



      $

      34,494,982



      $

      31,515,051



      $

      33,993,442



      $

      31,334,447












      Return on average tangible assets (non-GAAP)

      0.97

      %


      1.01

      %


      1.33

      %


      0.87

      %


      1.28

      %

      (1) Excludes loan servicing rights.










      F.N.B. CORPORATION AND SUBSIDIARIES





      (Unaudited)













      3Q20


      2Q20


      3Q19

      Tangible book value per common share:






      (Dollars in thousands, except per share data)






      Total stockholders' equity

      $

      4,951,059



      $

      4,896,827



      $

      4,820,309


      Less:  Preferred stockholders' equity

      (106,882)



      (106,882)



      (106,882)


      Less:  Intangible assets (1)

      (2,319,689)



      (2,323,028)



      (2,332,469)


      Tangible common equity (non-GAAP)

      $

      2,524,488



      $

      2,466,917



      $

      2,380,958








      Common shares outstanding

      323,212,398



      323,205,925



      324,879,501








      Tangible book value per common share (non-GAAP)

      $

      7.81



      $

      7.63



      $

      7.33


      Tangible equity / tangible assets (period end):






      (Dollars in thousands)






      Total stockholders' equity

      $

      4,951,059



      $

      4,896,827



      $

      4,820,309


      Less:  Intangible assets (1)

      (2,319,689)



      (2,323,028)



      (2,332,469)


      Tangible equity (non-GAAP)

      $

      2,631,370



      $

      2,573,799



      $

      2,487,840








      Total assets

      $

      37,440,672



      $

      37,720,827



      $

      34,328,501


      Less:  Intangible assets (1)

      (2,319,689)



      (2,323,028)



      (2,332,469)


      Tangible assets (non-GAAP)

      $

      35,120,983



      $

      35,397,799



      $

      31,996,032








      Tangible equity / tangible assets (period end) (non-GAAP)

      7.49

      %


      7.27

      %


      7.78

      %

      Tangible common equity / tangible assets (period end):






      (Dollars in thousands)






      Total stockholders' equity

      $

      4,951,059



      $

      4,896,827



      $

      4,820,309


      Less:  Preferred stockholders' equity

      (106,882)



      (106,882)



      (106,882)


      Less:  Intangible assets (1)

      (2,319,689)



      (2,323,028)



      (2,332,469)


      Tangible common equity (non-GAAP)

      $

      2,524,488



      $

      2,466,917



      $

      2,380,958








      Total assets

      $

      37,440,672



      $

      37,720,827



      $

      34,328,501


      Less:  Intangible assets (1)

      (2,319,689)



      (2,323,028)



      (2,332,469)


      Tangible assets (non-GAAP)

      $

      35,120,983



      $

      35,397,799



      $

      31,996,032








      Tangible common equity / tangible assets (period end) (non-
      GAAP)

      7.19

      %


      6.97

      %


      7.44

      %

      (1) Excludes loan servicing rights.






      F.N.B. CORPORATION AND SUBSIDIARIES




      (Unaudited)





      3Q20


      2Q20

      Allowance for credit losses / loans and leases, excluding PPP loans (period-end):




      (Dollars in thousands)




      ACL - loans

      $

      372,970



      $

      364,993


      Loans and leases

      $

      25,688,502



      $

      26,161,982


      Less: PPP loans outstanding

      (2,534,136)



      (2,480,772)


      Loans and leases, excluding PPP loans (non-GAAP)

      $

      23,154,366



      $

      23,681,210


      ACL loans / loans and leases, excluding PPP loans (non-GAAP)

      1.61

      %


      1.54

      %

      Non-performing loans / loans and leases, excluding PPP loans:




      (Dollars in thousands)




      Non-performing loans

      $

      177,751



      $

      170,134


      Loans and leases

      $

      25,688,502



      $

      26,161,982


      Less:  PPP loans outstanding

      (2,534,136)



      (2,480,772)


      Loans and leases, excluding PPP loans (non-GAAP)

      $

      23,154,366



      $

      23,681,210


      Non-performing loans / loans and leases, excluding PPP loans (non-GAAP)

      0.77

      %


      0.72

      %

      Non-performing loans + 90 days past due + OREO / loans and leases + OREO, excluding PPP loans:




      (Dollars in thousands)




      Non-performing loans + 90 days past due + OREO

      $

      216,457



      $

      196,284


      Loans and leases

      $

      25,688,502



      $

      26,161,982


      Plus: OREO

      20,319



      20,389


      Less: PPP loans outstanding

      (2,534,136)



      (2,480,772)


      Loans and leases + OREO, excluding PPP loans (non-GAAP)

      $

      23,174,685



      $

      23,701,599


      Non-performing loans + 90 days past due + OREO / loans and leases + OREO, excluding PPP loans (non-GAAP)

      0.93

      %


      0.83

      %

      Net loan charge-offs (annualized) / average loans and leases, excluding PPP loans:




      (Dollars in thousands)




      Net loan charge-offs (annualized)

      $

      76,605



      $

      34,187


      Average loans and leases

      $

      26,063,431



      $

      25,602,178


      Less: Average PPP loans outstanding

      (2,509,758)



      (1,905,031)


      Average loans and leases, excluding PPP loans (non-GAAP)

      $

      23,553,673



      $

      23,697,147


      Net loan charge-offs (annualized) / average loans and leases, excluding PPP loans (non-GAAP)

      0.32

      %


      0.15

      %

      Past due and non-accrual loans / loans and leases, excluding PPP loans:




      (Dollars in thousands)




      Past due and non-accrual loans

      $

      274,314



      $

      240,610


      Loans and leases

      $

      25,688,502



      $

      26,161,982


      Less: PPP loans outstanding

      (2,534,136)



      (2,480,772)


      Loans and leases, excluding PPP loans (non-GAAP)

      $

      23,154,366



      $

      23,681,210


      Past due and non-accrual loans / loans and leases, excluding PPP loans (non-GAAP)

      1.18

      %


      1.02

      %

      F.N.B. CORPORATION AND SUBSIDIARIES

      (Unaudited)








      For the Nine Months Ended
      September 30,


      3Q20


      2Q20


      3Q19


      2020


      2019











      KEY PERFORMANCE INDICATORS










      Pre-provision net revenue / average tangible common equity:










      (Dollars in thousands)










      Net interest income

      $

      227,098



      $

      227,961



      $

      229,802



      $

      687,690



      $

      690,802


      Non-interest income

      80,038



      77,628



      80,000



      226,192



      220,225


      Less: Non-interest expense

      (180,209)



      (175,932)



      (177,784)



      (551,033)



      (518,763)


      Pre-provision net revenue (as reported)

      $

      126,927



      $

      129,657



      $

      132,018



      $

      362,849



      $

      392,264


      Pre-provision net revenue (as reported) (annualized)

      $

      504,948



      $

      521,478



      $

      523,766



      $

      484,681



      $

      524,456


      Adjustments:










      Add: Branch consolidation costs (non-interest income)

      —



      —



      —



      —



      1,722


      Add:  Service charge refunds (non-interest income)

      3,780



      —



      —



      3,780



      —


      Less: Gain on sale of Visa class B stock (non-interest income)

      (13,818)



      —



      —



      (13,818)



      —


      Add: Loss on FHLB debt extinguishment and related hedge terminations (non-interest income)

      13,316



      —



      —



      13,316



      —


      Add: COVID - 19 expense (non-interest expense)

      2,671



      1,989



      —



      6,622



      —


      Add: Branch consolidation costs (non-interest expense)

      —



      —



      —



      8,262



      2,783


      Add:  Tax credit-related impairment project (non-interest expense)

      —



      4,101



      3,213



      4,101



      3,213


      Pre-provision net revenue (operating) (non-GAAP)

      $

      132,876



      $

      135,747



      $

      135,231



      $

      385,112



      $

      399,982


      Pre-provision net revenue (operating) (annualized) (non-GAAP)

      $

      528,614



      $

      545,972



      $

      536,514



      $

      514,419



      $

      534,774


      Average total shareholders' equity

      $

      4,915,933



      $

      4,879,659



      $

      4,802,717



      $

      4,890,114



      $

      4,725,780


      Less: Average preferred shareholders' equity

      (106,882)



      (106,882)



      (106,882)



      (106,882)



      (106,882)


      Less: Average intangible assets (1)

      (2,321,352)



      (2,324,696)



      (2,335,273)



      (2,324,638)



      (2,330,850)


      Average tangible common equity (non-GAAP)

      $

      2,487,699



      $

      2,448,081



      $

      2,360,562



      $

      2,458,594



      $

      2,288,048


      Pre-provision net revenue (reported) /
      average tangible common equity (non-GAAP)

      20.30

      %


      21.30

      %


      22.19

      %


      19.71

      %


      22.92

      %

      Pre-provision net revenue (operating) /
      average tangible common equity (non-GAAP)

      21.25

      %


      22.30

      %


      22.73

      %


      20.92

      %


      23.37

      %











      Efficiency ratio (FTE):










      (Dollars in thousands)










      Total non-interest expense

      $

      180,209



      $

      175,932



      $

      177,784



      $

      551,033



      $

      518,763


      Less:  Amortization of intangibles

      (3,339)



      (3,343)



      (3,602)



      (10,021)



      (10,560)


      Less:  OREO expense

      (1,061)



      (639)



      (1,431)



      (3,347)



      (3,454)


      Less: COVID-19 expense

      (2,671)



      (1,989)



      —



      (6,622)



      —


      Less:  Branch consolidation costs

      —



      —



      —



      (8,262)



      (2,783)


      Less: Tax credit-related project impairment

      —



      (4,101)



      (3,213)



      (4,101)



      (3,213)


      Adjusted non-interest expense

      $

      173,138



      $

      165,860



      $

      169,538



      $

      518,680



      $

      498,753












      Net interest income

      $

      227,098



      $

      227,961



      $

      229,802



      $

      687,690



      $

      690,802


      Taxable equivalent adjustment

      3,018



      3,151



      3,528



      9,470



      10,647


      Non-interest income

      80,038



      77,628



      80,000



      226,192



      220,225


      Less:  Net securities gains

      (112)



      (97)



      (35)



      (262)



      (35)


      Less: Gain on sale of Visa class B stock

      (13,818)



      —



      —



      (13,818)



      —


      Add: Loss on FHLB debt extinguishment and related hedge terminations

      13,316



      —



      —



      13,316



      —


      Add:  Branch consolidation costs

      —



      —



      —



      —



      1,722


      Add: service charge refunds

      3,780



      —



      —



      3,780



      —


      Adjusted net interest income (FTE) + non-interest income

      $

      313,320



      $

      308,643



      $

      313,295



      $

      926,368



      $

      923,361












      Efficiency ratio (FTE) (non-GAAP)

      55.26

      %


      53.74

      %


      54.11

      %


      55.99

      %


      54.01

      %

      (1) Excludes loan servicing rights.










      SOURCE F.N.B. Corporation

      Modal title

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