F.N.B. (FNB) 8-K Results of Operations and Financial Condition

F.N.B.

Corporation

Earnings Presentation

Third

Quarter 2017

October 19, 2017

Exhibit 99.1

2

This

document

contains

forward

looking

statements

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995,

which

contain

F.N.B.

Corporation’s

(F.N.B.)

expectations

or

predictions

of

future

financial

or

business

performance

or

conditions.

Forward-looking

statements

are

typically

identified

by

words

such

as

“believe,”

“plan,”

“expect,”

“anticipate,”

“intend,”

“outlook,”

“estimate,”

“forecast,”

“will,”

“should,”

“project,”

“goal,”

and

other

similar

words

and

expressions.

These

forward-looking

statements

involve

certain

risks

and

uncertainties.

In

addition

to

factors

previously

disclosed

in

F.N.B.’s

reports

filed

with

the

SEC,

the

following

factors

among

others,

could

cause

actual

results

to

differ

materially

from

forward-looking

statements

or

historical

performance:

changes

in

asset

quality

and

credit

risk;

the

inability

to

sustain

revenue

and

earnings

growth;

changes

in

interest

rates

and

capital

markets;

inflation;

potential

difficulties

encountered

in

expanding

into

a

new

and

remote

geographic

market;

customer

borrowing,

repayment,

investment

and

deposit

practices;

customer

disintermediation;

the

introduction,

withdrawal,

success

and

timing

of

business

initiatives;

competitive

conditions;

the

inability

to

realize

cost

savings

or

revenues

or

to

implement

integration

plans

and

other

consequences

associated

with

mergers,

acquisitions

and

divestitures;

economic

conditions;

and

the

impact,

extent

and

timing

of

technological

changes,

capital

management

activities,

and

other

actions

of

the

Office

of

the

Comptroller

of

the

Currency,

the

Board

of

Governors

of

the

Federal

Reserve

System

and

legislative

and

regulatory

actions

and

reforms.

F.N.B.

does

not

undertake

any

obligation

to

revise

these

forward-looking

statements

or

to

reflect

events

or

circumstances

after

the

date

of

this

document.

This

presentation

contains

“snapshot”

information

about

F.N.B.

and

is

not

intended

as

a

full

business

or

financial

review

and

should

be

viewed

in

the

context

of

all

the

information

made

available

by

F.N.B.

in

its

SEC

filings.

To

supplement

its

consolidated

financial

statements

presented

in

accordance

with

Generally

Accepted

Accounting

Principles

(GAAP),

F.N.B.

provides

additional

measures

of

operating

results,

net

income

and

earnings

per

share

adjusted

to

exclude

certain

costs,

expenses,

and

gains

and

losses.

F.N.B.

believes

that

these

non-GAAP

financial

measures

are

appropriate

to

enhance

understanding

of

its

past

performance

and

facilitate

comparisons

with

the

performance

of

F.N.B.’s

peers.

In

the

event

of

such

a

disclosure

or

release,

the

Securities

and

Exchange

Commission’s

Regulation

G

requires:

(i)

the

presentation

of

the

most

directly

comparable

financial

measure

calculated

and

presented

in

accordance

with

GAAP

and

(ii)

a

reconciliation

of

the

differences

between

the

non-GAAP

financial

measure

presented

and

the

most

directly

comparable

financial

measure

calculated

and

presented

in

accordance

with

GAAP.

The

Appendix

to

this

presentation

contains

a

reconciliation

of

the

non-GAAP

financial

measures

used

by

F.N.B.

to

the

most

directly

comparable

GAAP

financial

measures.

While

F.N.B.

believes

that

these

non-GAAP

financial

measures

are

useful

in

evaluating

results,

the

information

should

be

considered

supplemental

in

nature

and

not

as

a

substitute

for

or

superior

to

the

relevant

financial

information

prepared

in

accordance

with

GAAP.

The

non-GAAP

financial

measures

used

by

F.N.B.

may

differ

from

the

non-GAAP

financial

measures

other

financial

institutions

use

to

measure

their

results

of

operations.

This

information

should

be

reviewed

in

conjunction

with

F.N.B.’s

financial

results

disclosed

on

October

19,

2017,

and

in

its

periodic

filings

with

the

SEC.

Actual

results

may

differ

materially

from

those

expressed

or

implied

as

a

result

of

these

risks

and

uncertainties,

including,

but

not

limited

to,

the

risk

factors

and

other

uncertainties

described

in

F.N.B.'s

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2016,

our

subsequent

quarterly

2017

Form

10-

Q's

(including

the

risk

factors

and

risk

management

discussions)

and

F.N.B.'s

other

subsequent

filings

with

the

SEC,

which

are

available

on

our

corporate

website

at

https://www.fnb-online.com/about-us/investor-relations-shareholder-services.

We

have

included

our

web

address

as

an

inactive

textual

reference

only.

Information

on

our

website

is

not

part

of

this

earnings

presentation.

Cautionary Statement Regarding Forward-Looking Information

and Non-GAAP Financial Information

3

•

Record revenue and record net income

•

Continued to grow loans and deposits

•

Effective expense control

•

Improved efficiency ratio

•

Continued satisfactory asset quality

•

Positioned to deliver on our long-term financial objectives

Key Messages

3Q17

Financial Highlights

(1)

Includes

adjustments

to

reflect

operating

results,

a

non-GAAP

measure,

refer

to

Appendix

for

non-GAAP

to

GAAP

Reconciliation

details

and

the

cautionary

statement

preamble

for

rationale

for

use

of

non-GAAP

measures.

(2)

Annualized

linked

quarter

organic

growth

results.

Organic

growth

results

exclude

initial

balances

acquired

via

acquisition.

As of or for the period ending

3Q17

2Q17

3Q16

Reported results

Net income available to common stockholders

(millions)

$75.7

$72.4

$50.2

Net income

per diluted common share

$0.23

$0.22

$0.24

Book value per common share

$13.39

$13.26

$11.72

Key operating

results

(non-GAAP)

1

Operating net income available to common stockholders

(millions)

$76.6

$73.3

$50.4

Operating net income

per diluted common share

$0.24

$0.23

$0.24

Total

organic average loan growth

2

5.7%

6.1%

7.6%

Total organic average deposit growth

2

0.8%

1.1%

-1.4%

Efficiency Ratio

53.1%

54.3%

54.4%

Tangible

common equity / tangible assets

6.87%

6.83%

6.69%

Tangible book value per share

$6.12

$6.00

$6.53

4

(1)

Metrics

shown

are

originated

portfolio

metrics

unless

noted

as

a

total

portfolio

metric.

“Originated

portfolio”

or

“Originated

loans”

excludes

loans

acquired

at

fair

value

and

accounted

for

in

accordance

with

ASC

805

(effective

January

1,

2009),

as

the

risk

of

credit

loss

has

been

considered

by

virtue

of

F.N.B.’s

estimate

of

fair

value.

(2)

Total

portfolio

metric.

$ in thousands

3Q17

2Q17

3Q16

3Q17

Highlights

NPLs+OREO/Total average originated

loans and leases + OREO

0.91%

1.08%

1.08%

•

Consistent and stable credit

quality results across the

portfolio

•

Improved levels of NPLs + OREO

largely driven by the sale of

OREO properties

•

Improved levels of originated

delinquency at a very solid

0.91%

•

Third quarter provision levels

continue to exceed net charge-

offs

Originated Delinquency

0.91%

0.99%

1.00%

Provision for credit losses

2

$16,768

$16,756

$14,639

Net charge-offs (NCOs)

2

$12,451

$11,839

$12,114

NCOs (annualized)/Total average loans

and leases

2

0.24%

0.23%

0.33%

NCOs (annualized)/Total average

originated loans and leases

0.37%

0.38%

0.41%

Allowance for credit losses/

Total originated loans and leases

1.12%

1.15%

1.23%

Allowance for credit losses/

Total non-performing loans and

leases

2

162.9%

152.8%

163.4%

5

Asset Quality Results

1

(1)

Organic

growth

%

is

annualized

and

excludes

initial

balances

acquired

via

acquisition.

(2)

Includes

Direct

Installment,

Indirect

Installment,

Residential

mortgage

and

Consumer

LOC

portfolios.

(3)

Excludes

time

deposits.

(4)

Period-end

as

of

September

30,

2017.

Average, $ in millions

3Q17

2Q17

3Q16

QoQ

YoY

QoQ 

Organic

1

YoY 

Organic

1

3Q17 Highlights

Securities

$5,725

$5,607

$4,241

2.1%

35.0%

•

Continued growth in

commercial loans

concentrated in

Pittsburgh, Cleveland

and Baltimore markets 

•

Growth in consumer

loans driven by indirect

auto and residential

mortgage 

•

Growth in average

deposits reflects efforts

to generate additional

customer relationships

•

Transaction deposits

3

represent 81% of total

deposits

4

•

Improved loans to

deposits ratio of 94.9%

4

led by period end total

deposit growth of

16.5%

1

Total loans

$20,654

$20,361

$14,642

1.4%

41.1%

5.7%

6.6%

Commercial loans

$12,956

$12,831

$8,624

1.0%

50.2%

3.9%

4.3%

Consumer loans

2

$7,655

$7,477

$5,960

2.4%

28.4%

9.4%

10.1%

Earning assets

$26,637

$26,149

$19,045

1.9%

39.9%

Total deposits

$21,197

$21,155

$15,672

0.2%

35.3%

0.8%

2.3%

Transaction

deposits

3

$17,384

$17,357

$13,084

0.2%

32.9%

0.6%

3.4%

Time deposits

$3,813

$3,799

$2,588

0.4%

47.3%

1.5%

-5.8%

6

Balance Sheet Highlights

(1)

A

non-GAAP

measure,

refer

to

Appendix

for

further

information.

(2)

Incremental

purchase

accounting

accretion

refers

to

the

difference

between

total

accretion

and

the

estimated

coupon

interest

income

on

acquired

loans,

and

cash

recoveries

impact

refers

to

any

associated

cash

recoveries

on

loans

received

in

excess

of

the

recorded

investment.

$ in thousands

3Q17

2Q17

3Q16

QoQ 

YoY 

3Q17 Highlights

Total interest income

$263,514

$251,034

$175,110

5.0%

50.5%

•

Total revenue growth

driven by higher net

interest income

•

Interest income

supported by

continued loan growth

and higher purchase

accounting impact

•

Interest expense

reflects funding mix

change toward

customer

-based

activity

Total interest expense

38,283

32,619

17,604

17.4%

117.5%

Net interest income

$225,231

$218,415

$157,506

3.1%

43.0%

Non-interest income

66,151

66,078

53,240

0.1%

24.3%

Total revenue

$291,382

$284,493

$210,746

2.4%

38.3%

Net interest margin (FTE)

1

3.44%

3.42%

3.36%

2 bps

8 bps

Incremental purchase

accounting accretion impact

2

0.04%

0.01%

0.03%

3 bps

1 bps

Cash recoveries impact

2

0.06%

0.02%

0.04%

4 bps

2 bps

7

Revenue Highlights

$ in thousands

3Q17

2Q17

3Q16

QoQ 

YoY

3Q17 Highlights

Service charges

$33,610

$33,389

$25,411

0.7%

32.3%

•

Growth in insurance, wealth

management and mortgage

banking offset by lower

capital markets activity

•

Insurance supported by

seasonal renewal activity

•

Wealth management results

benefitted from strong equity

markets, continued trust

customer acquisition and

growing presence in acquired

markets

•

Mortgage banking reflects

benefits from increased

volume in acquired markets

Trust services

5,748

5,715

5,268

0.6%

9.1%

Insurance

commissions

and

fees

5,029

4,347

4,866

15.7%

3.4%

Securities commissions

and

fees

4,038

3,887

3,404

3.9%

18.6%

Capital markets income

2,822

5,004

4,497

-43.6%

-37.2%

Mortgage banking operations

5,437

5,173

3,564

5.1%

52.5%

Net securities gains (losses)

2,777

493

299

NM

NM

Other

6,690

8,070

5,932

-17.1%

12.8%

Total reported non-interest

income

$66,151

$66,078

$53,240

0.1%

24.3%

8

Non-Interest Income

$ in thousands

3Q17

2Q17

3Q16

QoQ 

YoY 

3Q17 Highlights

Salaries and employee benefits

$82,383

$84,899

$60,927

-3.0%

35.2%

•

Stable expenses reflect

lower salaries and benefits

expense offset by higher

occupancy and equipment,

other real estate owned

and outside expenses

•

Previous infrastructure

investments fully

embedded in 3Q17

expense base

•

Year-over

-year increase in

total non

-interest expense

reflects greater scale from

acquisition-related growth

Occupancy and equipment

27,434

26,480

20,367

3.6%

34.7%

FDIC insurance

9,183

9,376

5,274

-2.1%

74.1%

Amortization of intangibles

4,805

4,813

3,571

-0.2%

34.6%

Other real estate owned

1,421

1,008

1,172

41.0%

21.3%

Other

37,136

35,784

29,440

3.8%

26.1%

Non-interest expense before

merger-related expense

$162,362

$162,360

$120,751

0.0%

34.5%

Merger-related expense

$1,381

1,354

$299

NM

NM

Total non-interest expense

$163,743

$163,714

$121,050

0.0%

35.3%

9

Non-Interest Expense

(1)

Total

noninterest

income

less

net

securities

gains

(losses)

/

total

net

interest

income

+

noninterest

income

less

net

securities

gains

(losses).

(2)

Includes

adjustments

to

reflect

operating

results,

a

non-GAAP

measure,

refer

to

Appendix

for

Non-GAAP

to

GAAP

Reconciliation

details.

10

Key

Performance Indicators

YTD 2017

FY 2016

Long-Term

Target

Strategy

Maintain Low-

Risk Profile

Originated net charge-offs

(annualized)/average loans

33 bps

34 bps

25-50 bps

Remain disciplined

through the cycle

Drive Organic

Revenue Growth

Average loans

Average deposits

Noninterest income/revenue

1

6%

2%

23%

8%

7%

25%

7-9%

5-7%

> 30%

Grow and deepen

customer relationships

Improve

Efficiency

Efficiency ratio

2

54.7%

55.4%

< 53%

Continue to generate

positive operating

leverage

Achieve

Cost

Savings

Integration expense savings

25% of Yadkin

expense base

(complete)

40% of Metro

Expense Base

(complete)

25% of Yadkin

expense base

Focus on process

improvement and

synergies, while

reinvesting for the future

Optimize the

Retail

Bank

Deposits/branch

(at period end)

$52 million

$50 million

Continued

improvement

compared to prior

year

Project REDI branch

optimization; “Clicks to

Bricks” strategy

Successful

Execution

ROAA

(operating, non-GAAP)

2

ROATCE

(operating, non-GAAP)

2

0.99%

15.7%

0.95%

14.7%

>1.00%

>15%

Deliver on FNB business

Model

Execution of FNB’s Long-Term Growth Strategy

11

Appendix

Appendix

Ticker

Institution

Ticker

Institution

ASB

Associated Banc-Corp

PBCT

People’s United Financial, Inc.

CBSH

Commerce Bancshares, Inc.

PB

Prosperity Bancshares, Inc.

CMA

Comerica, Inc.

SNV

Synovus

Financial Corp.

CFR

Cullen/Frost Bankers,

Inc.

TCF

TCF Financial Corp.

EWBC

East West Bancorp, Inc.

UMPQ

Umpqua Holdings Corp.

FHN

First Horizon National Corp.

VLY

Valley National Bancorp

FRC

First Republic Bank

WBS

Webster Financial Corp.

HBHC

Hancock Holding Company

WTFC

Wintrust Financial Corp.

ISBC

Investors Bancorp, Inc.

ZION

Zions Bancorp

NYCB

New York Community Bancorp

12

2017 Peer Group Listing

13

$ in thousands except per share amounts

30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16

30-Sep-16

Operating net income available to common stockholders

Net income available to common stockholders

75,683

$      

72,396

$      

20,969

$      

49,280

$      

50,158

$      

Merger-related expense

1,381

1,354

52,724

1,649

299

Tax benefit of merger-related expense

(483)

(419)

(17,579)

(341)

(105)

Merger-related net securities gains

-

-

(2,609)

-

-

Tax expense of merger-related securities gains

-

-

913

-

-

Operating net income available to common stockholders (non-GAAP)

76,581

$      

73,331

$      

54,418

$      

50,588

$      

50,352

$      

Operating net income per diluted common share

Net income available to common stockholders per diluted common share

0.23

$          

0.22

$          

0.09

$          

0.23

$          

0.24

$         

Merger-related expense

0.01

0.01

0.22

0.01

0.00

Tax benefit of merger-related expense

(0.00)

(0.00)

(0.07)

(0.00)

(0.00)

Merger-related net securities gains

-

-

(0.01)

-

-

Tax expense of merger-related securities gains

-

-

0.00

-

-

Operating net income per diluted common share (non-GAAP)

0.24

$          

0.23

$          

0.23

$          

0.24

$          

0.24

$         

For The Quarter Ended

Non-GAAP to GAAP Reconciliation

(1) Excludes loan servicing rights. (2) A non-GAAP measure, refer to page 13 in Appendix for more information.

$ in thousands

30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16

30-Sep-16

Return on average tangible common equity (ROATCE)

Net income available to common stockholders (annualized)

300,266

$     

290,381

$     

85,042

$      

196,049

$     

199,543

$    

Amortization of intangibles, net of tax (annualized)

12,392

12,547

8,166

4,143

9,234

Tangible net income available to common stockholders (annualized)

312,658

$     

302,928

$     

93,208

$      

200,192

$     

208,777

$    

Average total stockholders' equity

4,426,980

$  

4,386,438

$  

3,007,853

$  

2,573,768

$  

2,562,693

$ 

Less: Average preferred stockholders' equity

106,882

106,882

106,882

106,882

106,882

Less: Average intangible assets(1)

2,344,077

2,348,767

1,381,712

1,089,216

1,093,378

Average tangible common equity

1,976,022

$  

1,930,789

$  

1,519,259

$  

1,377,670

$  

1,362,433

$ 

Return on average tangible common equity (non-GAAP)

15.82%

15.69%

6.14%

14.53%

15.32%

Operating ROATCE

Operating net income avail. to common stockholders (annualized)(2)

303,825

$     

294,129

$     

220,695

$     

201,253

$     

200,314

$    

Amortization of intangibles, net of tax (annualized)

12,392

12,547

8,166

4,143

9,234

Tangible operating net income avail. to common stockholders (annualized)

316,218

$     

306,676

$     

228,861

$     

205,396

$     

209,548

$    

Average total stockholders' equity

4,426,980

$  

4,386,438

$  

3,007,853

$  

2,573,768

$  

2,562,693

$ 

Less: Average preferred stockholders' equity

106,882

106,882

106,882

106,882

106,882

Less: Average intangible assets(1)

2,344,077

2,348,767

1,381,712

1,089,216

1,093,378

Average tangible common equity

1,976,022

$  

1,930,789

$  

1,519,259

$  

1,377,670

$  

1,362,433

$ 

Operating return on average tangible common equity (non-GAAP)

16.00%

15.88%

15.06%

14.91%

15.38%

For The Quarter Ended

14

Non-GAAP to GAAP Reconciliation

(1) Excludes loan servicing rights. (2) A non-GAAP measure, refer to page 16 in Appendix for more information. 

$ in thousands

30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16

30-Sep-16

Return on average tangible assets (ROATA)

Net income (annualized)

308,237

$     

298,443

$     

93,191

$      

204,050

$     

207,540

$    

Amortization of intangibles, net of tax (annualized)

12,392

12,547

8,166

4,143

9,234

Tangible net income (annualized)

320,629

$     

310,990

$     

101,357

$     

208,193

$     

216,774

$    

Average total assets

30,910,664

$

30,364,645

$

24,062,099

$

21,609,635

$

21,386,156

$

Less: Average intangible assets(1)

2,344,077

2,348,767

1,381,712

1,089,216

1,093,378

Average tangible assets

28,566,587

$

28,015,878

$

22,680,387

$

20,520,419

$

20,292,778

$

Return on average tangible assets (non-GAAP)

1.12%

1.11%

0.45%

1.01%

1.07%

Operating ROATA

Operating net income (annualized)(2)

311,800

$     

302,191

$     

228,847

$     

209,253

$     

208,310

$    

Amortization of intangibles, net of tax (annualized)

12,392

12,547

8,166

4,143

9,234

Tangible operating net income (annualized)

324,192

$     

314,738

$     

237,013

$     

213,396

$     

217,544

$    

Average total assets

30,910,664

$

30,364,645

$

24,062,099

$

21,609,635

$

21,386,156

$

Less: Average intangible assets(1)

2,344,077

2,348,767

1,381,712

1,089,216

1,093,378

Average tangible assets

28,566,587

$

28,015,878

$

22,680,387

$

20,520,419

$

20,292,778

$

Operating return on average tangible assets (non-GAAP)

1.13%

1.12%

1.05%

1.04%

1.07%

For The Quarter Ended

15

Non-GAAP to GAAP Reconciliation

16

(1) A non-GAAP measure, refer to reconciliation above for more information. 

$ in thousands

30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16

30-Sep-16

Operating net income

Net income

77,693

$      

74,406

$      

22,979

$      

51,291

$      

52,168

$      

Merger-related expense

1,381

1,354

52,724

1,649

299

Tax benefit of merger-related expense

(483)

(419)

(17,579)

(341)

(105)

Merger-related net securities gains

-

-

(2,609)

-

-

Tax expense of merger-related securities gains

-

-

913

-

-

Operating net income (non-GAAP)

78,592

75,341

56,428

52,599

52,362

Operating return on average assets (ROAA)

Operating net income (annualized)(1)

311,800

$     

302,191

$     

228,847

$     

209,253

$     

208,310

$    

Average total assets

30,910,664

$

30,364,645

$

24,062,099

$

21,609,635

$

21,386,156

$

Operating return on average assets (non-GAAP)

1.01%

1.00%

0.95%

0.97%

0.97%

For The Quarter Ended

Non-GAAP to GAAP Reconciliation

17

(1) Excludes loan servicing rights. 

$ in thousands except per share amounts

30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16

30-Sep-16

Tangible book value per common share (at period-end)

Total stockholders' equity

4,435,921

$   

4,392,438

$   

4,355,795

$   

2,571,617

$   

2,570,580

$  

Less: preferred stockholders' equity

106,882

106,882

106,882

106,882

106,882

Less: intangibles(1)

2,351,707

2,346,653

2,356,800

1,085,935

1,091,876

Tangible common equity (non-GAAP)

1,977,332

$   

1,938,903

$   

1,892,113

$   

1,378,800

$   

1,371,822

$  

Ending common shares outstanding

323,301,548

323,226,474

322,906,763

211,059,547

210,224,194

Tangible book value per common share (non-GAAP)

6.12

$           

6.00

$           

5.86

$           

6.53

$           

6.53

$          

Tangible common equity ratio (at period-end)

Total stockholders equity

4,435,921

$   

4,392,438

$   

4,355,795

$   

2,571,617

$   

2,570,580

$  

Less: preferred stockholders' equity

106,882

106,882

106,882

106,882

106,882

Less: intangibles(1)

2,351,707

2,346,653

2,356,800

1,085,935

1,091,876

Tangible common equity (non-GAAP)

1,977,332

$   

1,938,903

$   

1,892,113

$   

1,378,800

$   

1,371,822

$  

Total assets

31,123,295

$ 

30,753,726

$ 

30,190,695

$ 

21,844,817

$ 

21,583,914

$

Less: intangibles(1)

2,351,707

2,346,653

2,356,800

1,085,935

1,091,876

Tangible assets

28,771,588

$ 

28,407,073

$ 

27,833,895

$ 

20,758,882

$ 

20,492,038

$

Tangible common equity ratio (non-GAAP)

6.87%

6.83%

6.80%

6.64%

6.69%

For The Quarter Ended

Non-GAAP to GAAP Reconciliation

18

$ in thousands

30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16

30-Sep-16

Efficiency Ratio (FTE)

Non-interest expense

163,743

$      

163,714

$      

187,555

$      

123,806

$      

121,050

$     

Less: amortization of intangibles

4,805

4,813

3,098

1,602

3,571

Less: OREO expense

1,421

1,008

983

2,401

1,172

Less: merger costs

1,381

1,354

52,724

1,649

299

Less: impairment charge on other assets

-

-

-

-

-

Adjusted non-interest expense

156,136

$      

156,539

$      

130,750

$      

118,154

$      

116,008

$     

Net interest income

225,231

$      

218,415

$      

172,752

$      

159,283

$      

157,506

$     

Taxable equivalent adjustment

5,173

4,474

3,522

3,099

2,895

Non-interest income

66,151

66,078

55,116

51,066

53,240

Less: net securities gains

2,777

493

2,625

116

299

Less: gain on redemption of trust preferred securities

-

-

-

-

-

Adjusted net interest income (FTE) (non-GAAP) + non-interest income

293,778

$      

288,474

$      

228,765

$      

213,332

$      

213,342

$     

Efficiency Ratio (FTE) (non-GAAP)

53.15%

54.26%

57.15%

55.38%

54.38%

For The Quarter Ended

Non-GAAP to GAAP Reconciliation

19

Incremental purchase accounting accretion refers to the difference between total accretion and the estimated coupon interest income on acquired loans, and cash

recoveries impact refers to any associated cash recoveries on loans received in excess of the recorded investment. (1) Reported on a Fully Taxable Equivalent (FTE)

basis, a non-GAAP measure.

$ in thousands

30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16

30-Sep-16

Components of net interest income

Net interest income

225,231

$      

218,415

$      

172,752

$      

159,283

$      

157,506

$     

Net interest margin (FTE)(1)

3.44%

3.42%

3.35%

3.35%

3.36%

Incremental purchase accounting accretion included in net interest income

2,154

$         

504

$            

3,050

$         

2,690

$         

1,175

$        

Incremental purchase accounting accretion impact to net interest margin

0.04%

0.01%

0.06%

0.06%

0.03%

Cash recoveries included in net interest income

4,340

$         

1,145

$         

338

$            

1,531

$         

1,904

$        

Cash recoveries impact to net interest margin

0.06%

0.02%

0.01%

0.03%

0.04%

For The Quarter Ended

Net Interest Income and Net Interest Margin (FTE)