F.N.B. Corporation (FNB): Business Model Canvas [11-2024 Updated]

Discover the strategic framework behind F.N.B. Corporation's success through the Business Model Canvas. This essential tool outlines how FNB creates value for its clients while maintaining strong community ties. From its extensive branch network to advanced digital banking solutions, FNB's model highlights key partnerships, activities, and resources that drive sustainable growth. Dive deeper below to explore each component of FNB's business strategy and understand what sets them apart in the competitive banking landscape.

F.N.B. Corporation (FNB) - Business Model: Key Partnerships

Collaborations with community organizations

F.N.B. Corporation actively collaborates with various community organizations to enhance its local presence and support community development. These collaborations often focus on economic empowerment, financial literacy programs, and small business support initiatives. As of September 30, 2024, FNB has invested approximately $96 million in various community-focused initiatives, including affordable housing and financial education programs.

Partnerships with tax credit programs

F.N.B. Corporation engages in partnerships with tax credit programs such as Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits (HTC), and New Market Tax Credits (NMTC). These partnerships support initiatives under the Community Reinvestment Act while providing financial returns. The following table summarizes FNB's investments in these tax credit partnerships:

Type of Tax Credit	Investments (in millions)	Unfunded Commitments (in millions)
Low-Income Housing Tax Credits (LIHTC)	$96	$72
Historic Tax Credits (HTC)	$62	$50
New Market Tax Credits (NMTC)	$143	$50

Relationships with regulatory bodies

F.N.B. Corporation maintains strong relationships with various regulatory bodies, including the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (CFPB). These relationships are crucial for compliance and regulatory guidance. As of September 30, 2024, FNB's Tier 1 capital ratio stood at 10.44%, exceeding the minimum regulatory requirement of 6.00%.

Third-party service providers for banking solutions

F.N.B. Corporation partners with several third-party service providers to enhance its banking solutions. These partnerships include technology firms for digital banking platforms and payment processing services. As of September 30, 2024, FNB reported non-interest income of $89 million, of which a significant portion is attributed to revenue generated from these third-party collaborations.

F.N.B. Corporation (FNB) - Business Model: Key Activities

Offering a range of banking services

F.N.B. Corporation provides a diverse array of banking services, encompassing commercial and consumer banking. As of September 30, 2024, net loans and leases stood at $33.5 billion, reflecting a significant component of the bank's services. The Community Banking segment generated $581 million in interest income for the third quarter of 2024, while total deposits reached $36.8 billion, marking a 5.9% increase from the previous year.

Service Type	Interest Income (Q3 2024)	Total Deposits (Q3 2024)	Net Loans and Leases (Q3 2024)
Commercial Banking	$581 million	$36.8 billion	$33.5 billion
Consumer Banking

Managing risks through comprehensive strategies

F.N.B. Corporation employs extensive risk management practices to mitigate potential losses. The allowance for credit losses (ACL) on loans and leases was $420.2 million as of September 30, 2024, translating to a coverage ratio of 1.25%. The provision for credit losses for the nine months ended September 30, 2024, was $57.5 million, a slight decrease from $58.5 million in the same period of 2023. The bank's risk management framework is designed to address regulatory expectations and market dynamics effectively.

Risk Management Metrics	Q3 2024	Q3 2023
Allowance for Credit Losses	$420.2 million	$406 million
Provision for Credit Losses	$57.5 million	$58.5 million

Conducting community engagement initiatives

F.N.B. Corporation actively engages in community initiatives, further solidifying its local presence. The bank's community involvement includes financial literacy programs and support for local non-profits. Through these efforts, FNB aims to foster relationships and enhance its brand reputation within its operating markets, contributing to the overall health of the communities it serves.

Implementing technology for digital banking solutions

F.N.B. has prioritized the integration of technology into its banking services. The bank's investment in digital banking solutions has allowed it to offer enhanced online and mobile banking experiences. As of September 30, 2024, the bank reported $1.5 billion in cash balances held at the Federal Reserve Bank, indicating a robust liquidity position that supports its technology investments. This technological advancement is crucial for maintaining competitiveness in the evolving financial landscape.

Technology Investment Metrics	Cash Balances (Q3 2024)	Digital Banking Features
Liquidity Position	$1.5 billion	Mobile banking, online banking

F.N.B. Corporation (FNB) - Business Model: Key Resources

Extensive branch network across multiple states

F.N.B. Corporation operates a significant branch network, with over 400 locations across Pennsylvania, Ohio, and other states. This extensive presence allows FNB to serve a diverse customer base effectively and enhances its ability to attract deposits and provide banking services.

Skilled workforce with banking expertise

FNB's workforce is composed of approximately 3,000 employees, many of whom possess extensive experience in the banking industry. This skilled workforce is crucial for delivering quality customer service, managing financial products, and ensuring compliance with regulatory standards. The company invests in ongoing training and development to maintain high service standards.

Strong capital base for lending activities

As of September 30, 2024, F.N.B. Corporation reported total stockholders' equity of $6.25 billion, with a Common Equity Tier 1 (CET1) capital ratio of 10.4%. This strong capital position supports its lending activities, allowing FNB to issue loans while maintaining regulatory compliance and financial stability.

Advanced technology infrastructure for operations

FNB has invested significantly in technology, enhancing its operational efficiency and customer experience. The bank's technology infrastructure supports online banking, mobile applications, and advanced data analytics, which are essential for risk management and customer relationship management. As of the latest reports, FNB's investments in technology have contributed to a 10% increase in non-interest income, driven by digital banking services.

Resource	Description	Current Value
Branch Network	Number of branches across multiple states	400+
Workforce	Total number of employees	~3,000
Capital Base	Total stockholders' equity	$6.25 billion
CET1 Ratio	Common Equity Tier 1 capital ratio	10.4%
Non-Interest Income Growth	Increase in non-interest income from technology investments	10%

F.N.B. Corporation (FNB) - Business Model: Value Propositions

Comprehensive financial services tailored for individuals and businesses

F.N.B. Corporation offers a broad range of financial services including banking, wealth management, and insurance. As of September 30, 2024, the total loans and leases reached approximately $33.5 billion, with significant contributions from commercial loans, which increased by $1 billion (5.1%) year-over-year. The corporation reported net interest income of $323.3 million for the third quarter of 2024, a slight decrease of 1.0% from the same period in 2023, attributed to higher deposit costs.

Commitment to community development and support

F.N.B. Corporation emphasizes its commitment to community development, evidenced by its active participation in local initiatives and lending programs. The bank aims to foster economic growth within its operational regions, which include Pennsylvania, Ohio, and North Carolina. In 2024, the bank's community investments totaled over $10 million, focusing on affordable housing, small business support, and educational initiatives.

Competitive rates on loans and deposits

The bank maintains competitive rates for both loans and deposits, crucial for attracting and retaining customers. The average yield on loans was reported at 6.03% for the third quarter of 2024, reflecting a year-over-year increase. In terms of deposits, interest-bearing demand deposits increased by 8.0% to approximately $16.0 billion. The loan-to-deposit ratio was recorded at 92% as of September 30, 2024, demonstrating effective management of deposit growth in relation to loan demand.

Strong customer service and personalized banking experience

F.N.B. Corporation prides itself on delivering exceptional customer service, which is integral to its value proposition. The bank has implemented numerous initiatives to enhance the customer experience, including a robust digital banking platform that supports both personal and business banking needs. Customer satisfaction scores have consistently remained high, with a reported rating of 4.5 out of 5 in recent surveys. Additionally, the bank's efficiency ratio, an indicator of operational efficiency, stood at 55.2% for the third quarter of 2024, highlighting its commitment to controlling costs while enhancing service delivery.

Financial Metric	Q3 2024	Q3 2023	Change (%)
Net Interest Income	$323.3 million	$326.6 million	(1.0)
Total Loans and Leases	$33.5 billion	$31.9 billion	4.9
Loan-to-Deposit Ratio	92%	96%	(4.2)
Efficiency Ratio	55.2%	51.7%	(3.5)

F.N.B. Corporation (FNB) - Business Model: Customer Relationships

Building long-term relationships through personalized service

F.N.B. Corporation focuses on building long-term relationships with its customers through personalized services. The company has reported a robust net income of $110.1 million for the third quarter of 2024, reflecting a strategic emphasis on enhancing customer engagement and service delivery. The average net interest margin (FTE) decreased slightly to 3.08%, indicating a stable income generation despite competitive pressures.

Providing multiple channels for customer engagement

FNB provides various channels for customer engagement, including digital banking, mobile apps, and in-branch services. As of September 30, 2024, total deposits increased by $2.1 billion, or 5.9%, from the prior year, showcasing the effectiveness of these engagement strategies. The bank has also seen significant growth in interest-bearing demand deposits, which rose by $1.2 billion.

Offering educational resources on financial literacy

FNB emphasizes financial literacy by offering educational resources to its customers. The bank’s wealth management division reported non-interest income of $194 million for the first nine months of 2024, up 10% from the previous year, driven by increased demand for educational programs. This initiative aligns with their goal of empowering customers to make informed financial decisions.

Utilizing data analytics to enhance customer experience

Utilizing data analytics is a key component of FNB’s strategy to enhance customer experience. The bank generated $89.7 million in non-interest income in Q3 2024, a 10% increase year-over-year, attributed to improved customer insights through analytics. The bank's ability to leverage data has also contributed to a significant growth in deposits and customer retention strategies.

Metrics	Q3 2024	Q3 2023	Change (%)
Net Income (million)	$110.1	$143.3	(23.2)
Non-Interest Income (million)	$89.7	$81.6	10.0
Total Deposits (billion)	$36.8	$34.7	5.9
Interest-Bearing Demand Deposits (billion)	$16.0	$14.8	8.0
Loans and Leases (billion)	$33.5	$31.9	5.0

F.N.B. Corporation (FNB) - Business Model: Channels

Physical branch locations for personal interactions

F.N.B. Corporation operates a network of 329 banking offices across Pennsylvania, Ohio, West Virginia, and North Carolina. These physical branches serve as critical touchpoints for personal banking services, allowing customers to engage directly with banking professionals. As of September 30, 2024, the total deposits held by FNB amounted to approximately $40.3 billion.

Online banking platform for digital access

FNB offers a comprehensive online banking platform that provides customers with 24/7 access to their accounts. The platform supports a range of services including account management, fund transfers, and bill payments. In the third quarter of 2024, FNB reported a record non-interest income of $89.7 million, driven in part by the growth in digital banking services.

Mobile banking apps for convenience

The FNB mobile banking application enhances customer convenience by allowing users to manage their finances on-the-go. Features include mobile deposits, account alerts, and budgeting tools. The adoption of mobile banking has contributed to a significant increase in customer engagement, with over 1.5 million active mobile banking users reported as of Q3 2024.

Customer service via phone and chat support

FNB provides customer support through multiple channels, including phone and chat support. The bank prides itself on its responsive service, with an aim to reduce wait times and improve customer satisfaction. In the third quarter of 2024, FNB's customer service initiatives contributed to a customer satisfaction score of 92%, reflecting the effectiveness of their support channels.

Channel	Description	Key Metrics (2024)
Physical Branch Locations	329 banking offices across four states.	Total Deposits: $40.3 billion
Online Banking Platform	24/7 account access and management.	Non-Interest Income: $89.7 million
Mobile Banking Apps	Convenient financial management on mobile devices.	Active Users: Over 1.5 million
Customer Service	Support via phone and chat.	Customer Satisfaction Score: 92%

F.N.B. Corporation (FNB) - Business Model: Customer Segments

Individual consumers seeking personal banking services

F.N.B. Corporation provides a range of personal banking services tailored to individual consumers. As of September 30, 2024, the total deposits from individual customers amounted to approximately $9.87 billion in non-interest-bearing demand accounts and $15.99 billion in interest-bearing demand accounts. The bank also reported a total of $36.77 billion in total deposits across all segments, reflecting a 5.9% increase from the previous year.

Small to medium-sized enterprises for business banking

F.N.B. Corporation actively serves small to medium-sized enterprises (SMEs) through its community banking segment, which generated net interest income of $975 million for the nine months ended September 30, 2024. The bank's commercial loans to SMEs increased significantly, with a reported total of $1.2 billion in average commercial loans, indicating a growth of 6.1%. The provision for credit losses for this segment was $57.5 million.

High-net-worth individuals for wealth management

F.N.B. Corporation offers wealth management services aimed at high-net-worth individuals, contributing to an increase in wealth management revenues, which reached $194 million for the nine months ended September 30, 2024, representing a 10% increase year-over-year. The bank reported a market value of assets under management totaling $9.5 billion, an increase of $949.3 million or 11.1%. This segment includes various services such as fiduciary services, investment advisory services, and securities brokerage.

Community organizations needing financial support

F.N.B. Corporation engages with community organizations, providing financial support that aligns with its commitment to community banking. The bank's non-interest income from community and organizational services totaled $89.7 million for the third quarter of 2024, reflecting a 10% increase from the previous year. This reflects the bank's strategy to enhance relationships with local organizations, thereby promoting community development and financial inclusion.

Customer Segment	Deposit Amounts (in billions)	Commercial Loans (in billions)	Wealth Management Assets (in billions)	Non-Interest Income (in millions)
Individual Consumers	$9.87 (non-interest-bearing) + $15.99 (interest-bearing)	N/A	N/A	N/A
Small to Medium-sized Enterprises	N/A	$1.2	N/A	N/A
High-net-worth Individuals	N/A	N/A	$9.5	$194 (for wealth management services)
Community Organizations	N/A	N/A	N/A	$89.7

F.N.B. Corporation (FNB) - Business Model: Cost Structure

Employee salaries and benefits

The total salaries and employee benefits for F.N.B. Corporation in the third quarter of 2024 reached $126.1 million, marking an increase of $12.7 million or 11.2% from the previous year. This rise is attributed primarily to normal annual merit increases and higher production-related commissions linked to strong non-interest income activity.

For the nine months ended September 30, 2024, the total for salaries and employee benefits was $376.1 million, which reflects an increase of $28.6 million or 8.2% compared to the same period in 2023.

Operational costs for branch maintenance

Operational costs associated with branch maintenance, which include net occupancy and equipment expenses, amounted to $45.9 million for the third quarter of 2024. This represents an increase of $4.3 million or 10.3% from the previous year, primarily due to a $3.7 million software impairment.

For the nine-month period ending September 30, 2024, net occupancy costs totaled $60.6 million, which is an increase of $8.3 million or 15.9% from the previous year.

Technology investments for digital platforms

F.N.B. Corporation has significantly invested in technology to enhance its digital platforms, contributing to outside services expenses totaling $24.4 million in the third quarter of 2024, reflecting a 17.2% increase year-over-year.

For the nine months ended September 30, 2024, technology-related expenses were included in the overall non-interest expense of $713.1 million, which increased $63.3 million or 9.7% compared to the previous year.

Marketing expenses to promote services

Marketing expenses for the third quarter of 2024 were reported at $6.0 million, an increase of $604,000 or 11.1% from the previous year.

Over the nine-month period, marketing expenses totaled $15.5 million, up $2.4 million or 18.3% from the same period in 2023.

Cost Category	Q3 2024 Amount (in millions)	Q3 2023 Amount (in millions)	Change (in millions)	Change (%)
Salaries and Employee Benefits	126.1	113.4	12.7	11.2
Net Occupancy and Equipment	45.9	41.6	4.3	10.3
Outside Services	24.4	20.8	3.6	17.2
Marketing	6.0	5.4	0.6	11.1

Cost Category	9M 2024 Amount (in millions)	9M 2023 Amount (in millions)	Change (in millions)	Change (%)
Salaries and Employee Benefits	376.1	347.5	28.6	8.2
Net Occupancy	60.6	52.3	8.3	15.9
Marketing	15.5	13.1	2.4	18.3

F.N.B. Corporation (FNB) - Business Model: Revenue Streams

Interest income from loans and leases

For the third quarter of 2024, F.N.B. Corporation reported net interest income totaling $323.3 million, a slight decrease of $3.3 million compared to the previous quarter. The yield on earning assets increased to 5.51%, driven by a 34 basis point increase in yields on loans to 6.03%. The net interest margin (FTE) was 3.08%, reflecting an increase in the total yield on earning assets.

Non-interest income from service charges

F.N.B. Corporation's non-interest income reached a record $89.7 million in the third quarter of 2024, marking a 10.0% increase year-over-year. This growth was largely attributed to strong treasury management activity and higher consumer transaction levels, with service charges contributing $67.9 million. The breakdown of non-interest income includes:

Non-Interest Income Source	Q3 2024 (in thousands)	Q3 2023 (in thousands)	Change (%)
Service Charges	$67,925	$62,043	9.5%
Interchange and Card Transaction Fees	$38,627	$39,419	(2.0%)
Trust Services	$34,019	$31,767	7.1%
Insurance Commissions and Fees	$17,843	$18,830	(5.2%)
Securities Commissions and Fees	$24,011	$20,980	14.4%
Mortgage Banking Operations	$20,410	$13,676	49.2%
Dividends on Non-Marketable Equity Securities	$19,648	$15,354	28.0%
Bank Owned Life Insurance	$13,232	$9,016	46.8%

Wealth management fees and insurance premiums

Wealth management revenues for the first nine months of 2024 totaled $194 million, with an increase in the market value of assets under management rising to $9.5 billion, a 11.1% increase. Insurance premiums generated $18 million during the same period, reflecting the company's diversified revenue generation strategy.

Income from capital markets operations and investments

Income from capital markets operations for the first nine months of 2024 was $17.7 million, indicating a decrease of 10.6% from the previous year due to lower transaction activity. F.N.B. also reported net securities gains of $(31,000) for the quarter, showing a slight improvement from losses reported in the previous year.

Updated on 16 Nov 2024

Resources:

1. F.N.B. Corporation (FNB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of F.N.B. Corporation (FNB)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View F.N.B. Corporation (FNB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.