F.N.B. Corporation

Good morning and welcome to the FNB Corporation second quarter 2022 earnings conference call. All participants will be in a 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. Please note, this event is being recorded. I would now like to turn the conference over to Lisa Constantine with Investor Relations. Please go ahead.

Thank you. Good morning and welcome to our second quarter earnings call. This conference call of FMD Corporation and the report 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. Reconciliations of GAAP to non-GAAP operating measures to the most directly compatible GAAP financial measures are included in our presentation material 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 corporate website. A replay of this call will be available until Thursday, July 28th, 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 DeLee, Chairman, President, and CEO.

Thank you. Welcome to our second quarter earnings call. Joining me today are Vince Calabrese, our Chief Financial Officer, and Gary Guerrero, our Chief Credit Officer. The second quarter's earnings per share totaled 31 cents on an operating basis. up 19% linked quarter. F&B continued to execute its strategic plan in the second quarter with record loan growth of $1.3 billion on a spot basis, excluding PPP. We maintained a favorable deposit mix in a rising rate environment. Even as seasonal outflows occurred this quarter, we achieved record revenue of $336 million. With 8% linked quarter growth in net interest income, and our fee businesses continue to exhibit the benefits of diversification with 5% net growth. Our expenses remain well-controlled, declining link quarter on an operating basis, and led to an acceleration of positive operating leverage and an efficiency ratio of 55.2%. As always, our asset quality remains focused with our solid reserve coverage and net recoveries this quarter. Profitability improved significantly in the Lynx quarter, as return on average changeable common equity was 15.5%. We prudently managed capital, as our dividend payout ratio was 39%, and we purchased 1.1 million shares in the quarter. In addition to solid performance in the quarter, we commenced the rollout of our new digital e-store kiosks in all F&B branches and announced the UB Bancorp acquisitions in North Carolina. Our strong revenue growth included the benefit from the Federal Reserve's increase in short-term interest rates. However, it's our team's proven ability to respond and adapt to the changing economic environment that resulted in the record net interest income of $254 million. As 35%, or $11.7 billion, of our deposits are non-interest-bearing, and 59% of our loans possess variable or adjustable interest rates. These factors position us well for the anticipated rising rate environment. Vince Calabrese will provide additional insight on key performance drivers and deposit data. Total loans and leases, excluding PPP, reached $28 billion, demonstrating record link quarter growth of $1.3 billion for 19.5% annualized. making this the fifth consecutive quarter of positive loan growth. Building upon the first quarter, spot loan growth totaled an impressive 11.2% on a year-over-year basis, excluding PPP and the Howard acquired loans. On a core basis, commercial loans grew $504 million linked quarter, with ending balances at $18 billion. This growth was led by Pittsburgh and the North and South Carolina markets, Our year-to-date production is over 20% higher than the first half of 2021, and current pipeline levels are healthy when compared to historical trends. On a spot basis, consumer loans grew $795 million in the quarter, with over $400 million in residential mortgage loan growth. Our Physician's First Mortgage Program had an outstanding quarter, accounting for 66% of the total residential mortgage increase linked quarter. This program establishes long-term relationships of significant lifetime value. From a credit quality perspective, this is one of our highest quality portfolios, with credit scores of nearly 800 and delinquency levels of five basis points. Our mortgage growth is bolstered by the success of our e-store. With 69% of all mortgage applications submitted digitally, The adoption rate across our digital offerings continues to steadily increase, with the total number of loan applications online up 45% from the year-ago quarter. Our customers' growing digital engagement also translated into increased lending activity in our traditional branch channel and contributed to records of consumer origination in our branches this quarter. Our online and mobile e-store visits have more than doubled since June 2021, and we continue to build upon this momentum. As mentioned earlier, in addition to mobile and online access, we have started an initiative to supplement all FMV branches with new digital e-store kiosks to enhance the consultative environment we provide. The fully interactive design empowers customers with an intuitive digital access to FMV's full range of products and services. As a result, customers are able to easily browse and buy products and services as part of the in-branch experience or continue the process seamlessly online through their mobile device or wherever and when they prefer. The investments we've made in our digital bank have enhanced our scalability and accelerated our growth. Our success is also linked to the expansion of our branch network. Last month, we announced the acquisition of UB Bancorp, a North Carolina-based bank with approximately $1.2 billion in total assets, $1 billion in total deposits, and $670 million in loans. Approximately 40 percent of the deposits are non-interest-fair. This acquisition increases FNB's presence in North Carolina to a top-10 deposit share in the state. This region has proven to be a growth engine for FMV. Adding the low-cost granular deposits will also benefit our financial performance in a rising rate environment. We are excited about our prospects, and we welcome the UB Bank Group team and customers to FMV. Overall, the second quarter provided solid financial results, and FMV is well-positioned in the current macroeconomic environment. One of FMV's core strengths is our credit performance, which has been proven in the economic downturn in 2008 and again during the recent pandemic. Gary and our team take a proactive approach to managing the bank's credit portfolio and collectively offer decades of experience. I'll now turn the call over to Gary to provide more detail on our asset quality and comment on the economic environment.