FNB(US:FNB)2023-01-24 18:50Financial Data and Key Metrics Changes - The company reported operating earnings per share of $1.40 for the full year 2022, marking one of the highest levels in its history [5][95] - Total revenue grew by 10% linked quarter to $416 million, with net interest income as the primary driver [92] - The net interest margin expanded from 3.19% to 3.53% quarter-over-quarter [92][119] - Total assets reached nearly $44 billion, with a 5% increase linked quarter [93] Business Line Data and Key Metrics Changes - Total loans grew by $5.3 billion year-over-year, representing a 21% increase, driven by both organic growth and acquisitions [95][102] - Non-interest income totaled $80.6 million for the fourth quarter, a decrease of 2.2% compared to the prior quarter, primarily due to lower mortgage banking operations income [120] - The Physicians First Program accounted for 25% of retail mortgage production in 2022, with the portfolio growing to $1.2 billion by year-end [97][83] Market Data and Key Metrics Changes - The company maintained a favorable deposit mix, with 34% of total deposits being non-interest bearing [94][113] - Total cumulative deposit betas ended the year at 16.3%, below the forecasted 20% [103] - Average deposits totaled $33.9 billion for the fourth quarter, reflecting a 1% increase [146] Company Strategy and Development Direction - The company plans to continue focusing on generating positive operating leverage and efficiently deploying capital to optimize risk-adjusted returns for shareholders [11][105] - The company aims to maintain a disciplined credit culture while navigating changing economic cycles [114] - The company is committed to expanding its digital delivery channels and enhancing customer relationships through analytics [134][115] Management's Comments on Operating Environment and Future Outlook - Management noted that pipelines have softened globally, with a year-over-year decrease of about 15%, reflecting economic uncertainty [14] - The company expects loan growth in the mid-single digits on a year-over-year basis for 2023 [105] - Management expressed confidence in the company's ability to execute its strategic plan despite economic challenges [142] Other Important Information - The company closed two acquisitions in 2022, enhancing its market position in key areas [95][97] - The efficiency ratio for the full year was reported at 52%, with a goal to keep it below 50% in 2023 [9][41] - The company returned $220 million to shareholders through dividends and share repurchase programs [96] Q&A Session Summary Question: What are the strongest growth areas geographically? - Management highlighted that the Carolinas have produced significant net loan growth, contributing roughly 40% over the last three years [17][66] Question: What is the company's strategy regarding capital management and potential buybacks? - The company remains committed to optimizing shareholder value and will evaluate share buybacks as it builds past the 10% CET1 ratio [130][131] Question: How is the company managing deposit costs in the current environment? - The company is actively managing interest-bearing deposit costs and utilizing analytics to drive deposit growth [34][134] Question: What are the expectations for mortgage activity in the coming year? - Management expects to outperform the market in mortgage production, despite a general industry decline [74][83]