F.N.B. Corporation Reports First Quarter 2018 Earnings

PITTSBURGH, April 24, 2018

On an operating basis, fourth quarter of 2017 earnings per diluted common share (non-GAAP) was $0.24, excluding the after-tax impact of $0.7 million of merger-related expenses and the impact of a reduction in the valuation of net deferred tax assets of $54.0 million due to the enactment of the Tax Cuts and Jobs Act during the fourth quarter of 2017.  First quarter of 2017 operating earnings per diluted common share (non-GAAP) was $0.23, excluding the after-tax impact of $35.1 million of merger-related expenses and $1.7 million of merger-related securities gains.

"During the first quarter of 2018, FNB made progress towards our long-term strategic goals with strong performances in several key areas.  Our operating net income and operating earnings per share increased 56% and 13%, respectively, compared to the year-ago quarter, led by solid growth in loans and in our fee-based businesses" said Vincent J. Delie Jr., Chairman, President and Chief Executive Officer.  "Looking ahead, we are well-positioned across our footprint to build on those trends and continue to improve our key operating metrics, as we maintain our focus on delivering earnings per share growth and improved profitability."

First Quarter 2018 Highlights
(All comparisons refer to the first quarter of 2017, except as noted)

• Growth in total loans was $1.1 billion, or 5.4%, with commercial loan growth of $606 million, or 4.7%, and consumer loan growth of $479 million, or 6.5%.
• Total deposits increased $1.2 billion, or 5.5%, which included an increase in non-interest bearing deposits of $211 million, or 3.8%, and an increase in time deposits of $862 million, or 22.2%.
• The loan to deposit ratio was 94.5% at March 31, 2018, compared to 94.6%.
• The net interest margin (FTE) (non-GAAP) expanded 4 basis points to 3.39% from 3.35%.
• Total revenue increased 28.9% to $294 million, reflecting a 30.9% increase in net interest income and a 22.5% increase in non-interest income.
• Non-interest income increased $12.4 million or 22.5%, due to the benefit of the new markets and the further expansion of business lines, including wealth management, capital markets, mortgage banking and insurance.
• The efficiency ratio on an operating basis (non-GAAP) improved to 55.8%, compared to 57.2%.
• The annualized net charge-offs to total average loans ratio was unchanged at 0.20%.

Non-GAAP measures referenced in this release are used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release.  "Incremental purchase accounting accretion" refers to the difference between total accretion and the estimated coupon interest income on acquired loans. "Organic growth" refers to growth excluding the benefit of initial balances from acquisitions.