F.N.B. Corporation

Hello and welcome to the FMB Corporation fourth quarter 2021 earnings call. All participants will be in listen-only 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. Now I'd like to hand 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 FMV Corporation and the reports it files with the Securities and Exchange Commission often contain forward-looking statements and non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to and not as an alternative for our reported results prepared in accordance with GAAP's Reconciliations of GAAP to non-GAAP operating measures to the most directly comparable 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 Securities and Exchange Commission and available on our website. A replay of this call will be available until Thursday, January 27th, and the webcast link will be posted to the About now turn the call over to Vince DeLee, Chairman, President, and CEO.

Thank you. Welcome to our fourth quarter earnings call. Joining me today are Vince Calabrese, our Chief Financial Officer, and Gary Guerrero, our Chief Credit Officer. FMV's fourth quarter earnings per share was $0.30, bringing our full year earnings to $1.23, the highest earnings per share since the restructuring of the company in 2004. In addition to the solid EPS number, the fourth quarter was highlighted by robust loan growth, as well as the launch of the mobile e-store and the digital rollout of our enhanced Physicians First program. This full-service offering is dedicated to the personal and commercial needs of physicians, dentists, and veterinarians. Let's walk through each of these accomplishments, starting with loan growth. Spot loan growth. excluding the impact of PPP forgiveness, increased $610 million, or 10% annualized, from the third quarter of 2021. Strong loan growth supported our 13% annualized sequential growth in net interest income, excluding PPP and purchase accounting accretion, and provides significant momentum to the 2022 earnings. In addition to achieving our initial full-year loan growth guidance, given last January, we've achieved three consecutive quarters of strong loan growth, which led to a year-over-year increase of $1.3 billion, or 6% excluding PPP, from the December 31, 2020 balance. Commercial quarterly loan growth of 10.6% annualized was due to strong production across our footprint, demonstrating the benefit of our geographic diversification strategy. This organic loan growth drove total assets to $40 billion a year, with pro forma balance sheet of approximately $42 billion once the Howard Bank acquisition closes in a couple of days. At the beginning of November, we integrated our e-store shopping tool into the FMV mobile app as part of a series of innovative enhancements that build on our customers' ability to bank digitally. FMV also successfully upgraded our mobile banking experience, adding new features and expanding our suite of online loan applications, including FMV credit cards, mortgage products, home equity lines of credit, home equity installment loans, and small business loans. This platform creates a fully digital bank where customers can conduct routine transactions, purchase products and services, and schedule time with our bankers virtually. Our comprehensive mobile offering was recently recognized by S&P Global Market Intelligence, which called F&B Direct one of the most competitive mobile banking apps in the industry. And their analysis indicates that our mobile app had more features than any of our peers and is commensurate with J.P. Morgan and Bank of America. In addition, We were also recognized for our best-in-class digital strategy, Clicks to Bricks, and received a prestigious national award for our mobile banking experience. In addition to integrating the eStore, our mobile app was upgraded to incorporate a new modern look, streamlined navigation, and direct access to features customers are most likely to use, such as enhanced payment capability, shopping and account opening tools, and mobile chat. This upgrade was received well by our customers, as evidenced by an industry-leading app store rating of 4.8 stars. We continue to integrate additional products and services into our digital platform to better serve our customers and increase our market share through customer acquisition in a scalable and efficient manner. A few weeks ago, we rolled out a fully digital and enhanced version of our Physicians First program on our eStore. This holistic suite of digitally accessible products and services dedicated to meeting the unique needs of physicians, dentists, veterinarians, and other healthcare professionals includes commercial loans, deposit products, consumer loans, and wealth management services. With over 250,000 physicians, dentists, and veterinarians in our footprint, and over 4 billion of new medical student debt created each year, our opportunity to improve financial outcomes for members of the healthcare industry is tremendous. We have grown our physician loans 68% in the last 12 months as we invested in personnel and products. Given the momentum with our current program combined with the investment in our digital capabilities, there is a significant opportunity to deepen existing relationships, and acquire new customers within the healthcare industry. Lastly, I wanted to touch on the Howard Bank acquisition. We were in the final days before our close on January 22nd, and the system's integration on February 5th. We have worked closely with Howard's team and expect the transition to be smooth. We are very impressed with Howard's talented employees and are retaining more frontline employees than originally expected. In fact, our overall retention across our footprint has been strong, and we are excited for them to join FMV in this dynamic market. The acquisition is progressing well, as we are on track to achieve the expense saves laid out in the July announcement. Asset quality has improved more than we originally expected. And similar to past acquisitions, we will introduce our expanded product suite, to our new clients to drive additional non-interest income growth in Baltimore and Washington, D.C. Both the one-time cost and the credit mark, including day two, are expected to come in better than originally planned. With that, I will now turn the call over to Gary to comment on our overall credit quality. Gary?