F.N.B. Corporation

Good morning, everyone, and welcome to the FMB second quarter 2025 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. To ask a question, you may press star and then one using a touch-tone 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 conference call 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 FMB Corporation and the reports 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 in our earnings release. Please refer to these non-GAAP and forward-looking statements disclosed within 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, 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 DeLee, 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. The second quarter's strong financial performance led to net income available to common shareholders of $130.7 million, or $0.36 per share. FMV achieved link quarter revenue growth of 6.5%, driven by net interest income of $347 million and non-interest income of $91 million, all at record levels. Pre-provision net revenue rose 16% from the prior quarter to $192 million. Because of our sustained strong profitability, we continue to grow capital and have achieved record levels with the CET1 ratio approaching 11%, tangible common equity at 8.5%, and tangible book value per share of $11.14, up 13% year over year. The expansion of our capital base provides flexibility as F&B repurchased 725,000 shares this quarter, at a weighted average price of $13.85. Even with strong growth of capital, we continued to produce solid returns, with return on average tangible common equity at 14%. There was significant margin expansion of 16 basis points linked quarter, resulting in a net interest margin of 3.19%. F&B benefited from continued organic growth throughout our diverse geographic footprint, As spreads on new commercial originations in the second quarter remained relatively stable, an average annualized loan growth totaled 5.3%. Additionally, our aggregate funding costs declined late quarter, while overall deposit balances and other funding sources grew to nearly $600 million. Average total deposits grew to over $37 billion, while we continue to maintain a non-interest-bearing demand deposit level of 26%. Our success in growing deposits and maintaining a favorable deposit mix is a key part of our strategy to grow profitably. The loan-to-deposit ratio ended the quarter at 91.9%, down slightly from the last quarter and down 450 basis points since June 2024. These results were driven by our focus on deepening customer relationships by growing deposits and serving as their primary bank. F&B continues to invest in capabilities to gain market share and further outpace our competitors, particularly around non-interest income and initiatives to diversify our revenue streams. Adding to a series of records, we reported the highest level of non-interest income in the company's history, more than doubling our non-interest income over the last 10 years. Debt, capital markets, and treasury management reached record levels this quarter, and are examples of how FMV has established or significantly expanded eight business lines that are now multimillion-dollar revenue generators. The returns produced are significantly greater than our cost of capital, creating value for our shareholders. We continue to deploy this strategy with additional high-value businesses, including our recent expansion into public finance and corporate investment banking services. We have fulfilled an important milestone in our Clicks to Bricks strategy by integrating the eStore Common application into our in-branch origination platform across our physical delivery channel. This is a major milestone as we've completed our industry-leading online channel approach to onboarding customers with the eStore Common app now aligning originations across online, mobile, and in-branch channels. This aids in quicker processing times for our retail team, stronger risk and fraud controls, and provides a better experience for our clients. Common App submissions increased 108% link quarter, with our full branch network originating applications on this platform starting in June. Through the use of the Common Application, multi-product purchasing is expected to grow as our bankers will now be able to leverage AI to identify the next best products and services tailored for our customers within the same streamlined application process. In addition, business deposit account origination was launched this week, providing small business owners with the opportunity to open a business checking account and apply for a loan product simultaneously with the Common App. The increasing utilization of the Common App provides additional data that our data science team leverages for personalization and better customer experiences. AI, data science, and digital technology play such an integral role in our operations and ongoing success that we've realigned our organizational structure. FMV's digital channels, e-commerce, data science, data management and governance, corporate strategy, and a new vertical of AI and innovation will now report to our Chief Strategy Officer. This organizational structure further expands the utilization of our digital tools, data-driven analysis, predictive modeling, and artificial intelligence to position the company for ongoing success. Our organizational alignment is necessary as we continuously invest in our digital and data capabilities to efficiently scale development, data consumption, business insights, lead generation, and client personalization across F&B's digital ecosystem. From clicks to bricks to our proprietary e-store and opportunity IQ, F&B has been an innovation leader in banking. Our team is working to further expand our use of AI and evaluate other emerging technologies such as stable coin and tokenization. We have created a generative AI task force to monitor our existing applications intake and source new use cases across the enterprise and ensure that we are upholding responsible risk management frameworks and controls around our growing AI usage. This past year, our credit team developed an internal performance monitoring tool that provides a 360-degree view of our commercial clients. By using internal and external data aggregation through our enterprise data warehouses, we are able to evaluate the real-time risk profile of our customers and monitor changes. Our team continues to assess the impact from tariffs and geopolitical events as we monitor our loan portfolio and manage our strong liquidity and capital position. Gary and his team remain steadfast in our consistent underwriting standards and credit management program with aggressive and proactive actions, which led to continued strong credit results for the quarter. I will now pass the call over to Gary to provide further detail on the overall asset quality. Gary?