F.N.B. Corporation (FNB): Business Model Canvas [10-2024 Updated]

In today's dynamic financial landscape, F.N.B. Corporation (FNB) stands out with its robust business model that effectively addresses diverse customer needs. With a focus on key areas such as personalized banking services and community engagement, FNB leverages strategic partnerships and advanced technology to drive growth. Explore the intricacies of FNB's business model canvas below to uncover how this corporation navigates the complexities of the banking sector while delivering value to its customers.

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

Collaborations with local businesses

F.N.B. Corporation actively collaborates with local businesses to enhance its community banking services. This strategy includes offering tailored financial products that meet the specific needs of local enterprises. In the second quarter of 2024, FNB reported a 3.6% growth in linked-quarter loans, indicating strong support for local business financing.

Partnerships with financial technology firms

FNB has established partnerships with various financial technology firms to enhance its digital banking offerings. As of June 30, 2024, the bank reported an increase in non-interest income to $87.9 million, partly driven by innovations in digital services facilitated by these partnerships. Notably, FNB’s investment in its eStore® platform has been pivotal in attracting tech-savvy customers.

Relationships with regulatory bodies

Maintaining robust relationships with regulatory bodies is critical for FNB. As of June 30, 2024, the bank maintained a Common Equity Tier 1 (CET1) ratio of 10.2%, demonstrating compliance with regulatory capital requirements. FNB's proactive engagement with regulators helps mitigate operational risks and ensures adherence to evolving financial regulations.

Alliances with community organizations

FNB collaborates with community organizations to support local initiatives and enhance its corporate social responsibility. The bank's commitment to community development is reflected in its various sponsorships and programs aimed at improving financial literacy and economic empowerment. In the first half of 2024, FNB reported an increase in community investments, contributing to its reputation as a socially responsible institution.

Partnership Type	Key Metrics	Impact
Local Businesses	3.6% linked-quarter loan growth	Enhanced community support and business growth
Financial Technology Firms	$87.9 million non-interest income	Improved digital banking services
Regulatory Bodies	10.2% CET1 ratio	Strong capital compliance
Community Organizations	Increased community investment	Enhanced corporate social responsibility

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

Providing banking services

F.N.B. Corporation (FNB) provides a comprehensive range of banking services through its Community Banking segment. As of June 30, 2024, the total interest income generated from banking activities was approximately $557 million. The net interest margin (FTE) was reported at 3.09%, which reflects the bank's efficiency in generating income from its interest-earning assets.

Banking Service	Interest Income (2024)	Net Interest Margin (FTE)
Total Interest Income	$557 million	3.09%

Managing loan portfolios

FNB's loan portfolio management is critical to its operations, with total loans and leases amounting to $33.7 billion as of June 30, 2024, marking a year-over-year increase of 7.7%. The provision for credit losses was set at $20.2 million for the second quarter of 2024, supporting the bank's growing loan portfolio. The allowance for credit losses (ACL) on loans and leases was reported at $418.8 million, reflecting a stable coverage ratio of 1.24%.

Loan Portfolio Metric	Amount	Change (%)
Total Loans and Leases	$33.7 billion	7.7%
Provision for Credit Losses	$20.2 million	N/A
Allowance for Credit Losses	$418.8 million	N/A

Conducting risk assessments

Risk management is an integral part of FNB's operations, with a comprehensive approach adopted to assess and mitigate credit risks. The bank's non-performing loans to total loans ratio was reported at 0.33%, indicating strong asset quality. The bank has maintained a robust capital position, with a common equity tier 1 (CET1) capital ratio of 10.2%. The net charge-offs to total average loans and leases were 0.09%, reflecting effective risk management practices.

Risk Assessment Metric	Value
Non-Performing Loans Ratio	0.33%
CET1 Capital Ratio	10.2%
Net Charge-Offs to Total Loans	0.09%

Offering investment services

FNB's Wealth Management segment contributes significantly to its non-interest income, which totaled $87.9 million for the second quarter of 2024, driven by diversified services including trust services and investment advisory. The bank's mortgage banking operations saw a notable increase, with income rising by 52.3% year-over-year. Investment services provided include mutual funds, annuities, and securities brokerage, enhancing the bank's overall service offering to clients.

Investment Service Metric	Amount	Change (%)
Non-Interest Income	$87.9 million	N/A
Wealth Management Revenue Growth	10.1%	N/A
Mortgage Banking Income	$14.87 million	52.3%

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

Capital and liquidity reserves

As of June 30, 2024, F.N.B. Corporation maintained a strong capital position with a Common Equity Tier 1 (CET1) regulatory capital ratio of 10.2%. The tangible common equity ratio was near 8%, reflecting robust loan growth and prudent credit risk management.

The parent company cash on hand was reported at $282.9 million, a decrease from $375.4 million at the end of December 2023, primarily due to the redemption of preferred stock. Additionally, the liquidity coverage ratio improved to 2.7 times from 2.0 times at the end of 2023, with months of cash on hand increasing to 15.0 months.

Liquidity Metric	June 30, 2024	December 31, 2023
Common Equity Tier 1 Ratio	10.2%	10.05%
Tangible Common Equity Ratio	~8%	~8%
Parent Company Cash on Hand	$282.9 million	$375.4 million
Liquidity Coverage Ratio	2.7 times	2.0 times
Months of Cash on Hand	15.0 months	13.0 months

Experienced banking professionals

F.N.B. Corporation's strength lies significantly in its workforce. The bank has leveraged its experienced banking professionals to drive growth across its segments. The average tenure of employees contributes to a deep understanding of client needs and market dynamics, which enhances customer relationships and service delivery.

As of June 30, 2024, the bank reported a year-over-year increase of 3.6% in loan growth, attributed to the effective strategies implemented by its skilled workforce. The bank's mortgage banker team alone achieved a significant 23.6% increase in residential mortgage loans, demonstrating the effectiveness of its experienced personnel.

Advanced technology systems

F.N.B. Corporation has invested significantly in technology systems, enhancing its operational efficiency and customer experience. The bank's online and mobile banking platforms have been critical in driving user engagement and satisfaction. Investments in technology have allowed for more efficient loan processing and improved service delivery across its banking products.

As of June 30, 2024, the bank reported an increase in non-interest income to $87.9 million, benefiting from its diversified business model that includes advanced technological integrations.

Technology Investment	Details
Online Banking User Growth	Significant increase year-over-year
Mobile Banking Enhancements	Improved customer engagement and satisfaction
Loan Processing Efficiency	Streamlined through technology systems
Non-Interest Income	$87.9 million as of June 30, 2024

Strong brand reputation

F.N.B. Corporation has established a strong brand reputation within the financial services sector, recognized for its commitment to customer service and community involvement. The bank's reputation has been a key driver in attracting new customers and retaining existing ones.

As of June 30, 2024, the bank's book value per common share was reported at $16.94, an increase from $15.92 in the previous year, reflecting the positive market perception and trust in the brand.

Brand Metrics	Value
Book Value per Common Share	$16.94
Net Income Available to Common Stockholders	$123.0 million
Net Income per Diluted Common Share	$0.34

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

Competitive interest rates on loans

F.N.B. Corporation offers competitive interest rates on loans, which is a critical component of its value proposition. As of June 30, 2024, the net interest margin (FTE) was reported at 3.09%, reflecting a decrease of 28 basis points from the previous year. This competitive positioning in the market is essential for attracting both commercial and consumer borrowers.

Personalized banking services

F.N.B. has distinguished itself through personalized banking services tailored to meet the unique needs of its customers. The Community Banking segment, which provides commercial and consumer banking services, generated net interest income of $322 million in the second quarter of 2024, showcasing the effectiveness of its personalized approach. This segment also includes specialized services such as corporate banking and investment real estate financing, which cater to specific customer segments.

Comprehensive financial solutions

The corporation provides a broad spectrum of financial solutions across various segments. For example, the Wealth Management segment generated $20 million in non-interest income for the second quarter of 2024, highlighting the diverse product offerings available to customers. Additionally, the Insurance segment contributes significantly to the overall financial solutions offered, further enhancing the value proposition by providing integrated services that address multiple financial needs.

Commitment to community engagement

F.N.B. Corporation demonstrates a strong commitment to community engagement, which enhances its brand reputation and customer loyalty. The corporation has invested in local communities through various initiatives, which is reflected in its diversified deposit base. As of June 30, 2024, total deposits amounted to $34.994 billion, with a growth of 0.8% from the previous year. This engagement not only builds trust but also solidifies F.N.B.'s position as a community-centric financial institution.

Value Proposition	Details
Competitive Interest Rates	Net interest margin (FTE): 3.09%
Personalized Banking Services	Net interest income (Community Banking): $322 million (Q2 2024)
Comprehensive Financial Solutions	Non-interest income (Wealth Management): $20 million (Q2 2024)
Community Engagement	Total deposits: $34.994 billion (Growth: 0.8% YoY)

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

Dedicated customer service teams

F.N.B. Corporation has established dedicated customer service teams to enhance client interactions and support. As of June 30, 2024, the corporation reported a total of $34.994 billion in deposits, indicating a robust customer base that relies on its services. The company focuses on building long-term relationships through personalized service, which is reflected in its net income available to common stockholders of $123 million for the second quarter of 2024.

Relationship management for businesses

F.N.B. employs a proactive relationship management strategy for its business clients. The company's commercial loans and leases increased to $21.089 billion as of June 30, 2024, showcasing its commitment to supporting business growth. The bank's diversified offerings, including treasury management services, have contributed to a non-interest income of $87.9 million for the same period, illustrating the effectiveness of its relationship management initiatives.

Regular communication through digital channels

F.N.B. actively engages customers through various digital channels, enhancing communication and accessibility. The bank reported a significant increase in digital banking usage, with a 4.4% rise in pre-provision net revenue to $177.2 million in the second quarter of 2024. Regular updates and personalized communication strategies have led to increased customer satisfaction and retention rates.

Community-focused initiatives

The corporation is heavily invested in community-focused initiatives, underscoring its commitment to social responsibility. F.N.B. has allocated resources to support local communities, which has resulted in a 24% increase in community development loans, totaling $2.2 billion. This strategic focus not only strengthens customer relationships but also enhances the bank's reputation within its operating areas.

Metric	Value
Total Deposits	$34.994 billion
Net Income (Q2 2024)	$123 million
Commercial Loans and Leases	$21.089 billion
Non-Interest Income (Q2 2024)	$87.9 million
Community Development Loans	$2.2 billion
Pre-Provision Net Revenue (Q2 2024)	$177.2 million

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

Physical bank branches

F.N.B. Corporation operates a network of 339 banking offices across Pennsylvania, Ohio, West Virginia, and Maryland as of June 30, 2024. These branches serve as critical touchpoints for customer engagement, facilitating both personal and commercial banking services. The branches are strategically located in urban and rural areas to maximize accessibility for customers.

Online banking platforms

F.N.B. Corporation's online banking platform offers customers a comprehensive suite of financial services. As of June 30, 2024, there are approximately 1.2 million active online banking users. The platform supports various functionalities, including account management, fund transfers, and bill payments, contributing to a significant portion of the bank's transaction volume.

Online Banking Metrics	Q2 2024	Q2 2023
Active Online Banking Users	1,200,000	1,050,000
Monthly Logins	2,500,000	2,200,000
Transactions Processed	8,000,000	7,500,000

Mobile banking applications

The mobile banking application of F.N.B. Corporation has seen substantial growth, with over 800,000 downloads as of June 30, 2024. The app provides functionalities such as mobile check deposits, account alerts, and personal financial management tools, enhancing customer convenience and engagement.

Mobile Banking Metrics	Q2 2024	Q2 2023
App Downloads	800,000	650,000
Monthly Active Users	450,000	400,000
Mobile Deposits Processed	1,200,000	1,000,000

Customer service call centers

F.N.B. Corporation has established customer service call centers that operate 24/7. These centers handle an average of 120,000 calls per month, providing support for account inquiries, transaction issues, and technical assistance with online and mobile banking platforms. The call centers play a vital role in customer satisfaction and retention.

Call Center Metrics	Q2 2024	Q2 2023
Monthly Call Volume	120,000	110,000
Average Wait Time	2.5 minutes	3.0 minutes
Customer Satisfaction Rate	92%	90%

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

Individual consumers

F.N.B. Corporation serves individual consumers through a variety of financial products, including personal loans, mortgages, and deposit accounts. As of June 30, 2024, total residential mortgage loans amounted to $7.459 billion, reflecting a significant increase of $819 million or 12.3% from the previous year. Consumer loans overall, which include residential mortgages, direct installment loans, and lines of credit, totaled $12.668 billion, an increase of $841 million or 7.1% year-over-year.

Small and medium-sized enterprises

F.N.B. Corporation actively engages with small and medium-sized enterprises (SMEs) by providing tailored financial services, including commercial loans, lines of credit, and treasury management. As of June 30, 2024, total commercial loans and leases reached $21.089 billion, with commercial real estate loans specifically amounting to $12.664 billion, reflecting an increase of $359 million or 2.9% from the prior year. The bank has also recorded a 6.4% increase in average commercial loans, driven by a $1.3 billion growth in loans across its operational regions.

Commercial clients

F.N.B. Corporation serves larger commercial clients with comprehensive banking solutions, such as corporate banking, investment real estate financing, and business credit. The total commercial and industrial loans were reported at $7.597 billion as of June 30, 2024, showcasing a growth of $115 million or 1.5% year-over-year. The bank's strategy aims to deepen relationships with these clients, contributing to a robust loan growth trajectory.

Non-profit organizations

F.N.B. Corporation also caters to non-profit organizations, providing specialized financial services that include deposit accounts and lending solutions. The bank’s diversified deposit base includes funds from business, consumer, and municipal customers. As of June 30, 2024, total deposits amounted to $34.994 billion, with a notable increase of $283 million or 0.8% from December 31, 2023.

Customer Segment	Key Products	Total Loans (as of June 30, 2024)	Year-over-Year Change
Individual Consumers	Personal loans, Mortgages, Deposit accounts	$12.668 billion	+7.1%
Small and Medium-sized Enterprises	Commercial loans, Treasury management	$21.089 billion	+2.9%
Commercial Clients	Corporate banking, Investment financing	$7.597 billion	+1.5%
Non-profit Organizations	Deposit accounts, Lending solutions	$34.994 billion (Total Deposits)	+0.8%

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

Employee salaries and benefits

Total salaries and employee benefits for F.N.B. Corporation in the second quarter of 2024 amounted to $120.9 million, an increase of $7.0 million or 6.1% compared to the same period in 2023. This increase was primarily driven by normal annual merit increases and higher production-related commissions due to strong non-interest income activity.

Operational costs for branches

The operational costs associated with branch occupancy and equipment were reported at $43.0 million for the second quarter of 2024, reflecting a 13.0% increase from the previous year. This increase is attributed to ongoing technology-related investments.

Technology infrastructure expenses

F.N.B. Corporation's investment in technology and outside services reached $69.4 million for the first six months of 2024, which includes $46.1 million for outside services, marking an increase of 15.5% year-over-year.

Marketing and advertising costs

Marketing expenses for F.N.B. Corporation increased to $9.4 million in the first half of 2024, representing a growth of 23.5% compared to the previous year.

Cost Category	Q2 2024 Amount (in millions)	Change from Q2 2023 (%)
Salaries and Employee Benefits	$120.9	6.1%
Operational Costs for Branches	$43.0	13.0%
Technology Infrastructure Expenses	$69.4	15.5%
Marketing and Advertising Costs	$9.4	23.5%

Total non-interest expense for F.N.B. Corporation in the second quarter of 2024 was reported at $226.6 million, reflecting an increase of 6.9% compared to the same period in 2023.

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

Interest income from loans

In the second quarter of 2024, F.N.B. Corporation reported interest income on a fully taxable equivalent (FTE) basis of $560.1 million, representing an increase of $72.6 million, or 14.9%, compared to the same quarter in 2023. This growth was attributed to rising interest rates and an increase in average earning assets of $1.9 billion.

The average commercial loans increased by $1.3 billion, or 6.4%, with significant contributions from commercial real estate and industrial loans. Consumer loans also saw an increase of $943.7 million, or 8.3%, largely driven by a $1.3 billion rise in residential mortgages.

Fees from banking services

F.N.B. Corporation earned non-interest income totaling $87.9 million for the second quarter of 2024. This income was bolstered by various service fees, including:

Source of Fees	Amount ($ millions)	Year-over-Year Change (%)
Service Charges	43.9	7.6
Interchange and Card Transaction Fees	25.7	-0.7
Trust Services	22.9	7.8
Insurance Commissions and Fees	12.7	-7.7
Securities Commissions and Fees	16.1	12.0
Mortgage Banking Operations	14.9	52.3
Other	8.2	42.7

This diversified income stream reflects F.N.B.'s broad range of banking services and its ability to adapt to market conditions.

Non-interest income from investments

F.N.B. Corporation reported a total non-interest income of $175.8 million for the first half of 2024, an increase of 10.1% compared to the previous year. The breakdown of this income includes:

Type of Non-Interest Income	Amount ($ thousands)
Service Charges	43,901
Interchange Fees	25,705
Trust Services	22,899
Insurance Commissions	12,725
Securities Commissions	16,135
Mortgage Banking	14,870
Other Income	8,228

This growth in non-interest income highlights F.N.B.'s effective management of diverse income sources amid fluctuating market conditions.

Commissions from financial products

F.N.B. Corporation's commissions from financial products also contribute significantly to its revenue streams. In the second quarter of 2024, commissions from various financial services, including wealth management and capital markets, contributed to the overall non-interest income. The total non-interest income for this segment was $87.9 million, showing robust performance across its financial product offerings.

In particular, the wealth management segment recorded strong performance, with a notable contribution from securities commissions and trust services, reflecting a strategic focus on enhancing customer value through diversified financial products.