F.N.B. Corporation

Good morning, everyone, and welcome to the FMB Corporation fourth quarter 2023 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please send to 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 and then one using a touchtone telephone. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Lisa Hajdu, Manager of Investor Relations. Ma'am, please go ahead.

Thank you. Good morning and welcome to our earnings call. This conference call of FMB Corporation and the report it files with the Securities and Exchange Commission opt to contain forward-looking statements and non-GAAP financial measures. Non-GAAP financial measures are often viewed in addition to and not as an alternative for a reported result prepared in accordance with GAAP. Reconciliations of GAAP to non-GAAP reporting 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 Securities and Exchange Commission and available on our corporate website. A replay of this call will be available until Friday, January 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 fourth quarter earnings call. Joining me today are Vince Calabrese, our Chief Financial Officer, and Gary Guerrero, our Chief Credit Officer. F&B's fourth quarter net income available to common shareholders was $49 million on a reported basis and $139 million on an operating basis. Full year 2023's operating performance was highlighted by record revenue of $1.6 billion, record net income available to common shareholders of $569 million, and record earnings per diluted common share of $1.57. Tangible book value per share has increased 15% year over year, to a record high of $9.47 per share, steadily approaching a $10 milestone. Since 2009, F&B's internal capital generation, representing tangible book value and dividends, has been strong, with 10% compounded annual growth. With this strong profitability, full-year positive operating records totaled 1.5%, and is expected to remain in the upper quartile on a peer-relative basis. F&B's exceptional financial performance in 2023 was a direct result of the consistent execution of our strategic initiatives. The banking disruption in the first quarter of the year placed a spotlight on the importance of balance sheet resilience, including our deposit base, strong capital and liquidity position, and prudent underwriting standards. It also reinforced the value of our quality customer relationships and comprehensive delivery chains. These attributes have always been integral to FMV's long-term strategy, which has been proven through multiple cycles over the last decade and are ingrained in the foundation upon which FMV operates. Our commitment to maintain a stable deposit base is evident in our total deposits which ended the year at $34.7 billion, unchanged from the prior year, even with the elevated competition for customer deposits. The non-interest-bearing deposit-to-total deposit mix ended the year at 29.4%. While we have seen customer migration away from non-interest-bearing deposits, we continue to substantially outperform our peers and the industry in our total deposit costs and overall cost of funds. Our spot deposit costs ended the year below 2% and was over 50 basis points better than our peers in the third quarter. Our better-than-peer funding costs and strong liquidity provide balance sheet optionality. Our tangible common equity to tangible assets of 7.8% is the highest level in the company history and exceeds the peer median. F&B remains committed to optimally deploy capital in a manner that is fully aligned with our shareholders' interests and best positions F&B for future success. As part of that commitment, F&B recently completed the sale of approximately $650 million of available-for-sale securities, announced the redemption of $110 million of preferred stock, and transferred $355 million of indirect auto loans to help for sales with the sale expected to close in the first quarter. Together, these actions resulted in a capital-neutral transaction that improves forward returns and earnings with expected EPS accretion in the low single digits. Our continued ability to meet our clients' needs is critical to our performance. F&B has continually made strategic investments in our delivery chain to deepen customer relationships, gain market share, and further outpace our competitors. In June 2023, we introduced the e-store common application for the majority of our consumer loan products and recently introduced deposit products in December, allowing customers to apply for up to 18 consumer deposit and loan products simultaneously. Our goal for 2024 is to bring small businesses into the fold, with business loans, deposits, and payments included in the common application in the e-store. These additional features further enhance the customer experience and deepen product penetration as customers can apply for multiple loan and deposit products simultaneously in a very streamlined manner, eliminating keystrokes, providing a portal to upload supporting documents, and automating account funding. We also made significant enhancements in our physical delivery channel in 2023. In addition to expanding our footprint with four de novo locations, we entered into a partnership with the Washington Metropolitan Area Transit Board that establishes FMV as the sole ATM provider for the third largest heavy rail system in the United States. With ATM banking services at every metro station, the partnership will add more than 120 machines to FMV's network in 2024. Our physical delivery channel is approaching 2,000 combined branches, ATMs, and interactive televisions. Paired with our digital e-store, FMV has significantly enhanced access for our current and future customers while augmenting brand awareness across our program. With the success of our e-store and our exceptional bankers, total loans and leases end of the year at a record $32.8 billion, an increase of $2.4 billion since year-end 2022. We are beginning the year from a strong position and will continue to closely monitor the macroeconomic environment and market-specific trends to manage risk proactively as part of our core credit philosophy. We will remain steadfast in our approach to consistent underwriting and risk management to maintain a balanced well-positioned portfolio throughout economic cycles. I will now turn the call over to Gary to provide additional information on the fourth quarter's credit reports. Gary?