F.N.B. Corporation

Good morning, everyone, and welcome to the FMB fourth quarter 2024 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 one on 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.

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 opt to 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 are reported results prepared in accordance with GAAP. Reconciliations of GAAP to non-GAAP operating measures to the most 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 websites. A replay of this call will be available until Wednesday, January 29th, 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 DeLete, 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. FMB reported fourth-quarter operating net income available to common shareholders of $136.7 million, or $0.38 per diluted common share. This brings our full-year 2024 operating EPS to $1.39, reflecting the successful execution of our strategic objectives. In 2024, FMB generated year-over-year loan growth of 5% and robust deposit growth of 6.9%. These results occurred throughout our diverse geographic footprint, materially outpacing the industry as we continue to leverage the strength of our technology, balance sheet, and capital base, as well as our team of frontline bankers. Non-interest income continues to grow, achieving yet another record level of $350 million, highlighting our diversified business model and robust suite of products and services. We further strengthened our balance sheet and achieved a record CET1 ratio of 10.6% and increased tangible book value per share 11% to a record of $10.49. F&B remains focused on optimizing our balance sheet to drive shareholder value and best position the company for future success. As part of that commitment, we recently completed the sale of approximately $231 million, of available for sale securities yielding 1.41% and reinvested the proceeds into securities yielding 4.78%, a 337 basis point improvement with a similar duration and convexity profile. FMB also issued $500 million of senior debt in December and received favorable execution relative to similar issuances by peers. signifying the confidence that fixed income markets have in F&B's sustained profitability, credit quality, and overall balance sheet strength. F&B has demonstrated tremendous success building a valuable deposit franchise with superior market share throughout our footprint and robust physical and digital tools. We now hold the top five deposit share in 50% of our markets and top 10 deposit share in over 80%. Deposits ended the year at $37.1 billion, an increase of $2.4 billion from the prior year. We continue our focus on growing deposits while managing the overall cost of funds. In the fourth quarter, deposits increased $336 million link quarter, with total deposit costs at 2.2%, which is expected to meaningfully outperform peers. We continue to build out our technology to assist consumers. FMV recently invested in a fintech, which provides technology that will be embedded into the e-store to enable our customers to instantaneously move their direct deposit and reoccurring transactions to FMV. We expect an improved onboarding process with fewer obstacles to drive greater success at becoming our customers' primary bank. F&B's strong loan and deposit growth in 2024 outpaced the industry based on the H-8 data, more than doubling the large banks and more than tripling small banks' full-year growth. The strategic investments in our delivery channel have created the opportunity to deepen customer relationships, gain market share, and further outperform our competitors. December marked the one-year anniversary of introducing deposits into the e-store common applications. allowing customers to apply for up to 30 consumer loan and deposit products simultaneously. We are seeing impressive adoption. For example, since the launch of the eStore Common app and when comparing volume to pre-launch levels over the same period, average monthly consumer loan application volume is up 41%, and average monthly consumer deposit application volume is up nearly 30%. In addition to the functionality gained from our FinTech partner, additional enhancements to the e-store are scheduled for 2025, including features for insurance, small business, and middle market commercial banking, providing new growth opportunities and continuing our momentum in non-interest income, which reached an all-time high of $350 million in 2024. We recognize the benefit of having diverse revenue streams. and we will continue to invest in products and services to increase non-interest income, as well as relationship-based deposits. Our team has had great success identifying and introducing new high-value business units that complement our existing products and services. During the last 10 years, our wholesale and consumer banking groups have established or significantly expanded eight business lines that are now multi-million dollar revenue generators, providing us with high returns on investment and additional granularity in our fee income composition. In the face of continuously reducing consumer banking fees, these new products and offerings have contributed to a 10-year compounded annual growth rate of more than 9% for non-interest income, while creating additional value for our clients. Looking forward to this year, FMB is expanding our capital markets offerings to include commodities hedging, public finance, and commercial investment banking services, with plans to further enhance fee-based business products for treasury management, merchant services, and payment capabilities. As we continue to grow and expand FMB, it is vital that we maintain a durable and scalable infrastructure that can be leveraged both as a competitive advantage and to meet regulatory requirements. Our comprehensive risk framework is a key consideration in executing our business strategies. This year, FNB has taken steps to strengthen internal processes, risk management, and government practices, as well as introduce automation to increase efficiency, reduce fraud, and create cost savings. We are leveraging our data infrastructure and technology investments to build out automation and dynamic scorecard reporting for a variety of our operational units that will enable us to drive productivity enhancements in real time. We believe this step is necessary to fully engage software automation as we move into the future and continue to drive efficiency. FMV's approach to credit risk, a component of overall risk management, has provided strong and stable asset quality that has outperformed peers through various economic cycles. Our credit performance was solid in what has been a shifting economic environment. I will now turn the call over to Gary, who will provide a review of overall credit performance.