F.N.B. Corporation

good morning and welcome to the fnb corporation second quarter 2024 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 two. 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.

Welcome to our earnings call. This conference call of FMB Corporation and the reports it files with the Securities and Exchange Commission often contain overlooking statements and non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to and not an alternative for a reported financial results prepared in accordance with GAAP. Reconciliations of GAAP to non-GAAP operating measures to the most directly preparable 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 Thursday, July 25th 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 Lee, Chairman, President, and CEO.

Thank you, and welcome to our second quarter earnings call. Joining me today are Vince Calabrese, our Chief Financial Officer, and Gary Guerrero, our Chief Credit Officer. F&B reported solid second quarter results with net income available to common shareholders of $123 million. or $0.34 per diluted common share. Pre-provision net revenue increased over 4% late quarter, supported by our well-managed expenses and continued strong non-interest income levels. Tangible book value per share grew 12% year-over-year to reach a record high at $9.98. The second quarter's performance was driven by our long-term strategic goals to gain market share through loan and deposit growth diversify revenue streams, and manage risk. As we have previously mentioned, F&B is well positioned to steadily increase market share in this volatile environment given the strength of our capital and liquidity position and adherence to our consistent and conservative underwriting guidance. F&B reported link quarter loan and deposit growth at 3.6% and 1% respectively, demonstrating our ability to execute on this strategy. Both of these results exceeded the published H-8 data this quarter for both large and small institutions. The loan and deposit growth benefited from our investments in our digital e-store, with total interactions increasing 22% year-over-year. The increase in commercial loans was driven by activity across the footprint, highlighted by double-digit year-over-year growth across the Carolinas. Our Pittsburgh and Cleveland Region's commercial equipment finance business also posted strong contributions. An increase in FMB's commercial real estate portfolio included fundings on previously originated projects. On a spot basis, consumer loans grew 5% link quarter, led by growth in residential mortgages. While growth in this portfolio is seasonally higher in the second quarter, Our results also reflect the continued successful execution in key markets by our expanded mortgage banker team and longstanding strategy of serving the purchase market. This activity ultimately leads to increased households and deposit share growth. Deposits benefited from seasonal inflows as well as new production that was generated through targeted deposit initiatives and promotions. Non-interest-bearing deposits ended the quarter over $10 billion, an annualized increase of 3.2% in the prior quarter. The mix of non-interest-bearing deposits to total deposits ended the quarter at 29%, a consistent level since December of 2023. As we have frequently discussed, our strategy has been to price our deposits to protect our peer-leading deposit data while supporting our client base. Our loan-to-deposit ratio currently equals 96%. We are expecting lower loan origination and implementing a number of deposit initiatives in the second half of the year that will bring our loan-to-deposit ratio back toward historical levels. Another longer-term strategic focus has been diversifying our revenue streams. Achieving stable non-interest income at near record levels of $88 million in both the first and second quarters, highlights the strength and range of our business model and FMV's robust suite of products and services. For the first half of the year, non-interest income totaled $176 million, a 10% increase over the same period in 2023. E-income growth was led by our mortgage banking operations growing over 50%, strong wealth management revenue, and treasury management fee income growth. our success growing non-interest income is expected to continue as we enter the second half of the year. F&B's balance sheet strategy is part of our proactive approach to risk management. As we draw closer to a reduction in interest rates, we continue to move towards a neutral interest rate position to provide stability and potential improvement in margin in a falling rate. Beyond interest rate risk, FMV's comprehensive approach to credit risk management has led to strong and stable asset quality and consistent outperformance versus peers. Our credit team proactively monitors each loan portfolio and overall concentrations at a granular level, which has served us well through many economic cycles. I will now pass the call over to Gary to provide further detail on the overall asset quality. Gary?