F.N.B. Corporation

Good morning and welcome to the FMB Corporation third quarter 2021 earnings call. All participants will be on the Sonali mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note, today's event is being recorded. I would now like to turn the conference over to Lisa Constantine, Investor Relations. Ms. Constantine, please go ahead.

Thank you. Good morning and welcome to our earnings call. This conference call of FMB Corporation and the reports it filed with the Securities and Exchange Commission often contain forward-looking statements and non-GAAP financial measures. The non-GAAP financial measures should be viewed in addition to and not as an alternative for a reported result prepared in accordance with GAAPs. Reconciliations of GAAP to non-GAAP operating measures to the most directly comparable GAAP financial measures are included in our presentation materials and in our earnings release. Please refer to these non-GAAP and forward-looking statement disclosures contained in our related materials, reports, and registration statements filed with the Security and Exchange Commission and available on our corporate website. A replay of this call will be available until Tuesday, October 26th And the webcast link will be posted to the About Us Investor Relations section of our corporate website. I will now turn the call over to Vince Dilley, Chairman, President, and CEO.

Thank you, and welcome to our third quarter earnings call. Joining me today are Vince Calabrese, our Chief Financial Officer, and Gary Guerrero, our Chief Credit Officer. FMV's third quarter earnings per share was 34 cents, representing an increase of 10% on a linked quarter basis. and bringing year-to-date EPS to 94 cents. Our performance across our core businesses led to record revenue this quarter of $321 million, up 18% on a linked quarter annualized basis, with strong underlying momentum visible on our loan growth, pipeline, fee income, and digital customer engagement. Let's look at each one of these core building blocks. starting with loan growth. Our spot loan growth, excluding the impact of PPP forgiveness, is 8% annualized linked quarter, driven by a strong pickup in lending activity in both the commercial and consumer portfolios. Spot commercial loan growth totaled 7% annualized on a linked quarter basis, with positive growth in nearly every region across our footprint, notably the Pittsburgh, Cleveland, Harrisburg, and Raleigh region. Consumer lending grew over 8% annualized link quarter, led by increases in residential mortgages and direct installment home equity. As evidenced by the spot loan growth, our teams had a strong quarter and overall loan production reached record levels as the economy continues to recover. We saw healthy pipeline build and a slight increase in line utilization, with the pipeline being up nearly 12% year over year. In prior earnings calls, we indicated our expectation for improvement in loan demand, and that is now materializing. Commercial had record production in September, and the consumer pipeline jumped 27% year over year. Mortgage activity has slowed more recently because of the decline in refinance activity due to the higher interest rate environment. In addition, revenues have decreased as margins have normalized. Overall, we are optimistic that our total loan pipelines indicate a path for sustained growth. As we have continued to execute our strategic plan, non-interest income reached a record $89 million, with strong contributions from capital markets and wealth management, as well as solid SBA revenue. Our emphasis on diversifying revenue streams has become even more important during a low-rate environment. Through our efforts of enhancing our product suite and expanding our services, our non-interest income now comprises 28% of our total revenue. Our clicks-to-bricks strategy, introduced several years ago, was designed to integrate our mobile, online, and in-branch channels for a seamless and convenient banking experience. Our philosophy of continuing to invest in technology has resulted in many industry-leading offerings, including our e-store solution center, which features a retail shopping cart experience, our mobile app, and our website with videos and substantial digital content. After launching our new website at the beginning of last year, our website engagement has increased 13% year-to-date compared to the same period in 2020, which included increased usage due to COVID and PPP origination. The platform we built with Clix2Brix has been extremely important, driving the increase in adoption and usage of digital channels. We continue to make enhancements to provide our customers with the most flexible banking options, as demonstrated by our online application functionality that enables customers to quickly and easily apply for multiple products, including consumer deposits, credit cards, and home equity and mortgage loans. In May, we launched our digital applications for mortgages on our e-store. And since then, 61% of all applications came through our digital channels. And of those applications, approximately 46% were submitted outside of normal business hours or on the weekend. In addition, over half of our credit card applications were made digitally in the third quarter. Online applications for small business loans and deposits as well as auto loans, will be available by year end. And next year, we plan to launch a single, unified application for virtually all FMV loan and deposit products to make the shopping experience for multiple products even easier. Our new interface will reduce customers' input by eliminating redundant application fields and expand our clients' capabilities to upload information in a secure portal to expedite approvals. Broader use of e-signature and automated documentation and disclosures will also be added over time. FMB recently introduced a chatbot, which will apply artificial intelligence and automation to assist our customer service employees in supporting our customers. The chatbot will identify policies and procedures and provide recommended scripting to address the top 100 frequently asked questions. We are excited about both the current and upcoming enhancements to our digital platform, which will continue to drive increased client engagement and client acquisition and improve our operating efficiency while differentiating FMV in the marketplace. With that, I will turn the call over to Gary to discuss our asset quality position. Gary?