F.N.B. Corporation

Good morning and welcome to the F&B Corporation first quarter 2023 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Lisa Hajdu, Manager of Investor Relations. Please go ahead.

Thank you. Good morning and welcome to our earnings call. This conference call of FMV 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 comparable GAAP financial measures are included in our presentation materials and in our earnings relief. 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 Friday, April 29th, and the webcast link will be posted under 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, and welcome to our first quarter earnings call. Joining me today are Vince Calabrese, our Chief Financial Officer, and Gary Guerrero, our Chief Credit Officer. F&B reported first quarter net income available to common stockholders of $144.5 million, or $0.40 for diluted common share. On an operating basis, EPS grew 54% over the first quarter of 2022. Operating pre-provision net revenue increased 68% from the year-ago quarter as we managed a positive operating leverage of 21%. The overall success of F&B's financial performance was due to the consistent execution of our previously stated strategic initiatives. For example, we set out to diversify incomes and rely on various sources to maintain performance. This quarter, F&B reported record wealth management revenue of $18 million on a linked quarter basis, contributing to our stable monitoring. We also strive to be our customers' primary operator. And through our deep customer relationships and granular deposit base, we were able to maintain stable average deposit balance. Our philosophy of maintaining consistent and prudent underwriting standards, regardless of the macroeconomic environment, contributed to FMB growing average loans 3.6% in the quarter without compromising on asset quality. The first quarter also had positive momentum on several key performance metrics, including return on tangible common equity of 20%, return on average assets of 1.4%, and a tangible common equity ratio of 7.5%, one of the highest levels in company history. We are pleased with this quarter's results and believe it validates the aforementioned execution of our strategy, especially our conservative and diligent balance sheet management with ample capital and liquidity to withstand the adversity of the industry in a more challenging economic environment. The recent bank failures however idiosyncratic in nature, have placed a spotlight on the importance of liquidity in maintaining a diversified and granular deposit, conservative and prudent balance sheet management, solid capital levels, and sound risk management policies and governance. These practices have always been integral to FNB's long-term strategy and are ingrained in our enterprise risk management programs which includes regular liquidity stress test analysis, capital stress testing, CECL reserve model analysis, and diligent proactive credit monitoring. As I previously mentioned on multiple calls, we foster close relationships with our customers and remain focused on being their primary operating bank. In addition to prioritizing high-touch service, we have made strategic investments in our digital technology treasury management platform, and payment solution capabilities, which enables our customer privacy. The first quarter deposit levels through the industry disruption are a testament to the success of our focus on growing client relationships, with deposits ending the quarter at $34.2 billion, a slight decline of 1.7% from the prior quarter, outperforming the HH deposit data for small and large banks. Between March 8, when the industry volatility began, and quarter end, our deposit balances were essentially flat, declining 0.7%, primarily due to seasonal offloads from normal wholesale and retail customer activity. Another strength is the diversity of our deposit base throughout the different customer segments, with consumer account balances comprising the largest segment of total deposits at 41%. The consumer segment is comprised of approximately 1 million accounts with the median consumer deposit balance at quarter end around $5,000. Additionally, since March 8th, we experienced a net increase in the number of accounts across all customer segments. Positioning F&B is a benefactor as deposit inflows are restored to normal levels and customers diversify funds between banks. Because of the granularity in our deposit base, FMV ended the quarter with approximately 76% of deposits either insured by the FDIC or collateralized, which exceeds the peer median for the 50 banks in the KRX Bank Index at Dear Energy. If necessary, we also have available liquidity to fund up to 170% of our uninsured and non-collateralized deposit balances. As of March 31, placing F&B in a very strong liquidity position. F&B's investment portfolio philosophy is also conservative by nature with respect to duration and risk. We managed to an average duration of between three to five years and have historically maintained a fairly even split between available for sale and health maturity. At the onset of the current banking industry disruption, F&B management activated our contingency funding plan. Our team's response was swift and working diligently over the weekend to ensure that our board of directors were briefed, employees were reassured of our stability, and customer-facing personnel began proactive client outreach with talking points regarding the strength of our balance sheet, including F&B's capital and liquidity position on a relative and outright basis. In addition, we bolstered our liquidity position by increasing cash on the balance sheet by nearly $1 billion. Through the financial crisis, pandemic, and now the banking industry disruption, F&B has earned our customers' trust, and we promise to uphold that trust as we have positioned the company to outperform the industry in a wide array of potential economic and industry scenarios. Credit continues to remain as one of our strengths. I am very pleased to once again report a solid credit position with low delinquency at 60 basis. I will now turn the call over to Gary to give more details on our asset quality and our consistent management of credit risk. Gary?