EX-99.1 2 l40958exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
F.N.B. Corporation Reports Third Quarter 2010 Results
Hermitage, PA — October 25, 2010 — F.N.B. Corporation (NYSE: FNB) today reported financial results for the third quarter of 2010. Net income for the third quarter of 2010 was $17.2 million, or $0.15 per diluted share, compared to second quarter of 2010 net income of $17.9 million, or $0.16 per diluted share, and net income available to common shareholders in the third quarter of 2009 of $4.8 million, or $0.04 per diluted common share.
“We are very pleased with our third quarter results,” said Stephen J. Gurgovits, President and Chief Executive Officer of F.N.B. Corporation. “The third quarter includes continued loan and deposit growth, a stable net interest margin and solid credit quality results in our Pennsylvania and Regency portfolios. Additionally, we were extremely pleased to announce the pending acquisition of Comm Bancorp, Inc. during the quarter and look forward to expanding our existing presence in northeastern Pennsylvania.”
F.N.B. Corporation’s performance ratios this quarter were as follows: return on average tangible equity (non-GAAP measure) was 14.56%; return on average equity was 6.43%; return on average tangible assets (non-GAAP measure) was 0.87% and return on average assets was 0.76%. A reconciliation of GAAP measures to non-GAAP measures is included in the tables that accompany this press release.
Net Interest Income
Net interest income on a fully taxable equivalent basis for the third quarter of 2010 totaled $73.9 million, increasing 4.2% annualized from the second quarter of 2010. This linked-quarter growth reflects a 4.0% annualized increase in average earning assets. The increase in average earning assets is a result of loan growth of 4.1% annualized in the third quarter compared to the second quarter. The third quarter net interest margin equaled 3.78%, compared to 3.81% in the second quarter which included a 4 basis point net benefit related to certain non-accrual loans that were paid off or returned to accrual status. After adjusting for these benefits, the margin for the third quarter was stable compared to the second quarter.
“Our commercial and retail bankers continue to win new customer relationships and deepen existing relationships as this quarter marks the fifth consecutive quarter of loan growth,” said Mr. Gurgovits.
Total average loans for the third quarter of 2010 increased on a linked-quarter basis by $60.8 million, or 4.1% annualized to $6.0 billion. Growth of the consumer loan portfolio was the primary driver of the increase, with average consumer loans increasing $64.2 million, or 10.1% annualized, in the third quarter. Within the consumer portfolio, average home equity

 

 

F.N.B. Corporation Reports Third Quarter 2010 Results, Page 2 of 8
lending balances (comprised of lines of credit and direct installment loans) increased $50.9 million, or 14.5% annualized, during the third quarter due to the success of promotional initiatives and customer preferences for these products in a low interest rate environment.
Average commercial loans for the third quarter totaled $3.3 billion and were essentially unchanged compared to the prior quarter, reflecting growth in the Pennsylvania portfolio offset by reductions in the Florida portfolio. The average Pennsylvania commercial loan portfolio (excluding Florida) grew 0.6% annualized with growth in this portfolio tempered by accelerated pay-offs during the quarter.
Average deposits and treasury management balances grew $83.4 million, or 4.6% annualized, on a linked-quarter basis reflecting new customer accounts combined with higher average balances. During the third quarter of 2010, we continued to improve our funding mix with average transaction deposits increasing $58.9 million, or 5.4% annualized, and average treasury management balances growing $42.2 million or 27.1% annualized. Higher cost average time deposits declined $17.7 million, or 3.2% annualized, compared to the second quarter.
Non-Interest Income
Non-interest income totaled $27.8 million for the third quarter of 2010, decreasing from $28.4 million in the second quarter of 2010 due primarily to the $1.6 million gain in the second quarter related to the successful harvesting of a mezzanine financing relationship by F.N.B. Capital Corporation. In addition, as a result of improvement in the underlying collateral of pooled trust preferred securities, the third quarter does not include other-than-temporary impairment charges compared to $0.6 million in the second quarter.
Fee income for the third quarter of 2010 reflected increased swap fee revenue, as well as higher mortgage-related gains and title insurance commissions reflecting increased residential mortgage volume compared to the second quarter of 2010. Alternatively, service charges declined on a linked-quarter basis reflecting a decrease in overdraft fee revenue resulting from the implementation of Regulation E. Non-interest income, excluding other-than-temporary impairment charges and securities gains, represented 27% of revenue for the third quarter of 2010 compared to 28% for the second quarter of 2010.
Non-Interest Expense
Non-interest expense totaled $64.2 million in the third quarter of 2010, compared to $63.1 million in the second quarter of 2010. The linked-quarter increase reflects higher costs related to increased consumer loan volume and a $0.6 million increase in Florida-related other real estate owned (OREO) costs. The higher personnel costs in the third quarter are primarily due to higher commissions tied to increased insurance and mortgage-related revenue.

 

 

F.N.B. Corporation Reports Third Quarter 2010 Results, Page 3 of 8
Credit Quality
“We remain very pleased with the performance of our Pennsylvania and Regency loan portfolios with both portfolios continuing to perform well. Our focus in the Florida portfolio remains the land-related segment, which represents only 1.3% of total loans at quarter-end. While this segment of the Florida portfolio remains subject to a challenging environment, it has been performing within our expectations. The Florida non-land related segment continues to be stable and perform as expected,” remarked Mr. Gurgovits.
The Pennsylvania loan portfolio’s credit quality metrics for the third quarter of 2010 reflect continued solid performance with results improving upon good second quarter results. The Pennsylvania loan portfolio totaled $5.6 billion at September 30, 2010 (93.7% of the total loan portfolio) and delivered credit quality metrics characterized by the reduction of total past due loans and non-performing assets, and stable net loan charge-offs on a linked-quarter basis. Net loan charge-offs totaled $4.5 million or 0.32% annualized of average loans for the third quarter of 2010 consistent with the prior quarter and representative of historically good results. Total past dues and non-accrual loans improved 9 basis points to 1.82% of total loans at September 30, 2010 and non-performing loans and OREO improved to $84.8 million or 1.50% of total loans and OREO. These improvements reflect the continued stability of the Pennsylvania portfolio.
The Florida loan portfolio totaled $213.4 million at September 30, 2010 (3.6% of the total loan portfolio) with the land-related portion of the portfolio decreasing $13.8 million to $79.4 million or only 1.3% of total loans at September 30, 2010. Activity for the third quarter in the Florida portfolio involved actions taken to reduce exposure and included the sale of three performing credits to a Florida-based community bank, payments on performing credits, charge-offs and continued movement of problem loans into OREO. Florida non-performing loans and OREO increased $16.5 million to $92.8 million or 39.5% of total Florida loans and OREO at September 30, 2010. The increase is the result of an adequately collateralized $20.0 million land-related credit moving to non-accrual status due to the uncertainty of the borrower’s ability to remain contractually current. Net loan charge-offs for the Florida portfolio for the third quarter of 2010 totaled $3.7 million and included a $3.5 million charge-off on a $13.5 million credit with $10.0 million moved to OREO. At September 30, 2010, the ratio of the allowance for loan losses to total loans for the Florida portfolio equaled 13.64%, a 199 basis point increase compared to June 30, 2010. The increased reserve position reflects continued additions to the reserve to provide for reappraisal risk associated with the Florida land-related segment due to limited activity and uncertainty regarding land values in Florida. The majority of reappraisals for the Florida land-related segment are scheduled to occur in the fourth quarter of 2010.
In total, during the third quarter of 2010, the ratio of the allowance for loan losses to total loans increased 3 basis points to 1.94%. The provision for loan losses totaled $12.3 million for the third quarter of 2010, consistent with $12.2 million in the second quarter of 2010, and

 

 

F.N.B. Corporation Reports Third Quarter 2010 Results, Page 4 of 8
exceeded net charge-offs as we supported loan growth and provided additional reserves for the Florida land-related portfolio.
Capital Position
The Corporation’s capital ratios continue to exceed federal bank regulatory agency “well capitalized” thresholds. As of September 30, 2010, the Corporation’s regulatory capital ratios remained consistent with the second quarter as the increase in stockholders equity supported asset growth this quarter. The tangible common equity to tangible assets ratio (non-GAAP measure) of 5.96% at September 30, 2010 was consistent with 5.97% at June 30, 2010. The tangible book value per share (non-GAAP measure) increased 7 cents during the quarter to $4.38 and the dividend payout ratio for the quarter was 80%.
Year-to-Date Results
For the nine months ended September 30, 2010, F.N.B. Corporation’s net income totaled $51.1 million, or $0.45 per diluted share, compared to net income available to common shareholders of $28.2 million, or $0.29 per diluted common share for the nine months ended September 30, 2009. For the 2010 year-to-date period, return on average tangible common equity (non-GAAP measure) totaled 14.88%, return on average equity was 6.48%, return on average tangible assets (non-GAAP measure) was 0.88% and return on average assets was 0.77%.
Net interest income on a fully taxable equivalent basis totaled $217.1 million for the first nine months of 2010, an increase of $15.1 million or 7.5% over the same period of 2009, reflecting growth in average earning assets of 3.5% and a 15 basis point expansion of the net interest margin. On a year-over-year basis, average earning assets increased through growth in average loans of $126.8 million or 2.2%, and growth in average investments of $132.8 million, or 8.3%, reflecting the investment of increased balanced sheet liquidity. Year-over-year loan growth was driven by average commercial loan growth of $109.5 million or 3.4%. During the first nine months of 2010, average deposits and treasury management balances increased $478.1 million or 7.2%, with low-cost average transaction balances growing $366.7 million or 9.3% and average treasury management balances growing $174.4 million or 38.6%, compared to same period in 2009. The strong loan and deposit growth reflects our success in expanding market share through new client acquisition. The net interest margin for the first nine months of 2010 was 3.78%, a 15 basis point expansion from 2009. The margin expansion reflects lower deposit and borrowing costs driven by an improved funding mix in a low interest rate environment partially offset by lower yields on earning assets.
Non-interest income totaled $86.5 million for the first nine months of 2010, an increase of $6.3 million or 7.8%, compared to $80.2 million for the same period of 2009. Fee income on a year-over-year basis includes a 7.3% increase in trust-related revenue reflecting improved market conditions. Additionally, the first nine months of 2010 included higher gains on the sale of securities, higher recoveries on impaired loans acquired through acquisitions, the

 

 

F.N.B. Corporation Reports Third Quarter 2010 Results, Page 5 of 8
gain related to the successful harvesting of a mezzanine financing relationship by F.N.B. Capital Corporation and lower other-than-temporary impairment charges. Partially offsetting these increases, insurance commissions and fees declined 6.1% and securities commissions and fees declined 2.4% reflecting lower sales of annuities in the lower interest rate environment. For the first nine months of 2010, service charges declined 0.7% due to decreased overdraft fee revenue resulting from changes in customer behavior and Regulation E implementation on August 15, 2010.
Non-interest expense totaled $192.8 million for the first nine months 2010, a 1.7% increase compared to $189.6 million for the same period of 2009. The increase was primarily a result of increased personnel costs and pre-payment charges associated with the repayment of FHLB debt in 2010, partially offset by lower FDIC insurance premiums due to the special assessment in 2009. The 5.5% increase in personnel costs primarily reflects higher employee benefits expense and salary costs associated with various revenue-generating initiatives such as the addition of an asset-based lending group and an expanded private banking group. On a year-to-date basis, F.N.B. Corporation’s efficiency ratio improved to 61.8% for 2010, compared to 65.3% in the same nine-month period in 2009 reflecting our continued focus on growing revenue and controlling expenses.
Net loan charge-offs were 0.55% annualized of total loans for the first nine months of 2010, representing an improvement from 0.91% annualized of total loans for the first nine months of 2009. The improvement reflects lower charge-offs in the Florida portfolio incurred during the first nine months of 2010. The provision for loan losses for the first nine months of 2010 totaled $36.5 million, a decrease of $4.4 million compared to $40.9 million for the same period of 2009. At September 30, 2010, the ratio of the allowance for loan losses to total loans equaled 1.94%, a 13 basis point increase compared to 1.81% at September 30, 2009. This primarily reflects the increase in the Florida portfolio ratio of the allowance for loan losses to total loans to 13.64% at September 30, 2010 compared to 9.80% at September 30, 2009. The increased Florida portfolio reserve position reflects additions to the reserve during the first nine months of 2010 to provide for reappraisal risk associated with the Florida land-related segment due to limited activity and uncertainty regarding land values in Florida. The majority of reappraisals for the Florida land-related segment are scheduled to occur during the fourth quarter of 2010.
The first nine months of 2009 included $8.3 million in costs associated with the preferred stock sold to the U.S. Treasury pursuant to the Capital Purchase Plan (CPP) in January 2009 and subsequently redeemed in September 2009.

 

 

F.N.B. Corporation Reports Third Quarter 2010 Results, Page 6 of 8
Other Highlights
On August 9, 2010, F.N.B. Corporation and Comm Bancorp, Inc. (NASDAQ: CCBP) jointly announced the signing of a definitive merger agreement pursuant to which F.N.B. Corporation will acquire Comm Bancorp, Inc., a Clarks Summit, Pennsylvania based provider of diversified financial services, in a merger transaction valued at approximately $70 million. As previously announced, the transaction is expected to be completed during the fourth quarter of 2010, pending regulatory approval, the approval of Comm Bancorp, Inc. shareholders and the satisfaction of various closing conditions.
Conference Call
F.N.B. Corporation will host its quarterly conference call to discuss its financial results for the third quarter of 2010 on Tuesday, October 26, 2010, at 8:00 AM EDT. Participating callers may access the call by dialing (800) 289-0517 or (913) 312-0658 for international callers; the confirmation number is 7793246. The listen-only audio Webcast may be accessed through the “Shareholder and Investor Relations” section of the Corporation’s Web site at www.fnbcorporation.com.
A replay of the call will be available from 11:00 AM EDT the day of the call until midnight EDT on Tuesday, November 2, 2010. The replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for international callers; the confirmation number is 7793246. The call transcript and Webcast will be available on the “Shareholder and Investor Relations” section of F.N.B. Corporation’s Web site at www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $9.0 billion as of September 30, 2010. F.N.B. Corporation is a leading provider of commercial and retail banking, leasing, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania and Ohio, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, F.N.B. Capital Corporation, LLC, Regency Finance Company and F.N.B. Commercial Leasing. It also operates consumer finance offices in Tennessee and loan production offices in Florida.
Forward-looking Statements
This press release of F.N.B. Corporation and the reports F.N.B. Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act, relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of F.N.B. Corporation. 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. There are a number of important

 

 

F.N.B. Corporation Reports Third Quarter 2010 Results, Page 7 of 8
factors that could cause F.N.B. Corporation’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) various monetary and fiscal policies and regulations of the U.S. Government that may adversely affect the businesses in which F.N.B. Corporation is engaged; (6) technological issues which may adversely affect F.N.B. Corporation’s financial operations or customers; (7) changes in the securities markets; (8) risk factors mentioned in the reports and registration statements F.N.B. Corporation files with the Securities and Exchange Commission; (9) housing prices; (10) job market; (11) consumer confidence and spending habits or (12) estimates of fair value of certain F.N.B. Corporation assets and liabilities. F.N.B. Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
Additional Information about the Merger with Comm Bancorp, Inc.
SHAREHOLDERS OF F.N.B. AND COMM BANCORP ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
The proxy statement/prospectus and other relevant materials and any other documents filed by F.N.B. with the SEC may be obtained free of charge at the SEC’s Web site at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by F.N.B. Corporation by contacting James Orie, F.N.B. Corporation, One F.N.B. Boulevard, Hermitage, PA 16148, telephone: (724) 983-3317 and by Comm Bancorp, Inc. by contacting Scott A. Seasock, EVP, Comm Bancorp, Inc., Clarks Summit, PA, 18411, telephone: (570) 587-3421, extension 323.
Comm Bancorp, Inc. and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the proposed merger. Information concerning such participants’ ownership of Comm Bancorp, Inc. common stock is set forth in Comm Bancorp’s proxy statements and Annual Reports on Form 10-K, previously filed with the SEC. Additional information about the interests of those participants may be obtained from reading the proxy statement/prospectus relating to the merger when it becomes available.
# # #
Analyst/Institutional Investor Contact:
Cynthia Christopher 724-983-3429
724-815-3926 (cell)
christoc@fnb-corp.com

 

 

F.N.B. Corporation Reports Third Quarter 2010 Results, Page 8 of 8
Media Contact:
Jennifer Reel 724-983-4856
724-699-6389 (cell)
reel@fnb-corp.com
DATA SHEETS FOLLOW

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                         
                            3rd Qtr 2010 -     3rd Qtr 2010 -  
    2010     2009     2nd Qtr 2010     3rd Qtr 2009  
    Third     Second     Third     Percent     Percent  
    Quarter     Quarter     Quarter     Variance     Variance  
Statement of earnings                                      
Interest income
   $ 93,947     $ 94,361     $ 96,750       -0.4       -2.9  
Interest expense
     21,688       22,880       28,989       -5.2       -25.2  
 
                                  
Net interest income
     72,259       71,481       67,761       1.1       6.6  
Taxable equivalent adjustment
     1,666       1,665       1,644       0.1       1.3  
 
                                  
Net interest income (FTE) (1)
     73,925       73,146       69,405       1.1       6.5  
Provision for loan losses
     12,313       12,239       16,455       0.6       -25.2  
 
                                  
Net interest income after provision (FTE)
     61,612       60,907       52,950       1.2       16.4  
 
                                        
Impairment losses on securities
     0       (1,313 )     (14,234 )     n/m       n/m  
Non-credit related losses on securities not expected to be sold (recognized in other comprehensive income)
     0       711       10,943       n/m       n/m  
 
                                  
Net impairment losses on securities
     0       (602 )     (3,291 )     n/m       n/m  
 
                                        
Service charges
     14,250       14,662       14,760       -2.8       -3.5  
Insurance commissions and fees
     3,921       3,849       3,960       1.9       -1.0  
Securities commissions and fees
     1,794       1,771       1,451       1.3       23.6  
Trust income
     3,084       3,188       2,856       -3.3       8.0  
Gain on sale of securities
     80       47       154       71.3       -48.3  
Gain on sale of loans
     964       808       666       19.3       44.9  
Other
     3,661       4,720       3,189       -22.4       14.8  
 
                                  
Total non-interest income
     27,754       28,443       23,745       -2.4       16.9  
 
                                        
Salaries and employee benefits
     33,831       33,392       31,377       1.3       7.8  
Occupancy and equipment
     9,267       9,446       9,258       -1.9       0.1  
Amortization of intangibles
     1,675       1,679       1,732       -0.2       -3.3  
Other
     19,474       18,567       19,954       4.9       -2.4  
 
                                  
Total non-interest expense
     64,247       63,084       62,321       1.8       3.1  
 
                                        
Income before income taxes
     25,119       26,266       14,374       -4.4       74.7  
Taxable equivalent adjustment
     1,666       1,665       1,644       0.1       1.3  
Income taxes (benefit)
     6,236       6,679       2,424       -6.6       157.3  
 
                                  
Net income
     17,217       17,922       10,306       -3.9       67.1  
Preferred stock dividends and discount amortization
     0       0       5,496       n/m       n/m  
 
                                  
Net income available to common shareholders
   $ 17,217     $ 17,922     $ 4,810       -3.9       257.9  
 
                                  
 
                                        
Earnings per common share
                                        
Basic
   $ 0.15     $ 0.16     $ 0.04       -6.3       275.0  
Diluted
   $ 0.15     $ 0.16     $ 0.04       -6.3       275.0  
 
                                        
Performance ratios
                                        
Return on average equity
     6.43 %     6.83 %     3.62 %                
Return on average tangible common equity (2)(6)
     14.56 %     15.65 %     4.85 %                
Return on average assets
     0.76 %     0.81 %     0.47 %                
Return on average tangible assets (3)(6)
     0.87 %     0.92 %     0.56 %                
Net interest margin (FTE) (1)(9)
     3.78 %     3.81 %     3.66 %                
Yield on earning assets (FTE) (1)(9)
     4.89 %     5.00 %     5.18 %                
Cost of funds
     1.28 %     1.37 %     1.76 %                
Efficiency ratio (FTE) (1)(4)(9)
     61.54 %     60.45 %     65.04 %                
Effective tax rate
     26.59 %     27.15 %     19.04 %                
 
                                        
Common stock data
                                        
Average basic shares outstanding
     113,983,990       113,878,018       113,571,703       0.1       0.4  
Average diluted shares outstanding
     114,486,251       114,315,177       113,869,785       0.1       0.5  
Ending shares outstanding
     114,632,850       114,532,890       113,990,095       0.1       0.6  
Common book value per share
   $ 9.29     $ 9.24     $ 9.23       0.6       0.6  
Tangible common book value per share (6)
   $ 4.38     $ 4.31     $ 4.24       1.6       3.4  
Tangible common book value per share excluding AOCI (5)(6)
   $ 4.58     $ 4.53     $ 4.50       1.2       2.0  
Dividend payout ratio (common)
     80.31 %     77.09 %     285.14 %                

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                         
    For the Nine Months        
    Ended September 30,     Percent  
    2010     2009     Variance  
Statement of earnings                  
Interest income
   $ 280,854     $ 292,058       -3.8  
Interest expense
     68,709       94,711       -27.5  
 
                    
Net interest income
     212,145       197,347       7.5  
Taxable equivalent adjustment
     4,969       4,689       6.0  
 
                    
Net interest income (FTE) (1)
     217,114       202,036       7.5  
Provision for loan losses
     36,516       40,878       -10.7  
 
                    
Net interest income after provision (FTE)
     180,598       161,158       12.1  
 
                        
Impairment losses on securities
     (9,539 )     (15,866 )     n/m  
Non-credit related losses on securities not expected to be sold (recognized in other comprehensive income)
     7,251       11,632       n/m  
 
                    
Net impairment losses on securities
     (2,288 )     (4,234 )     n/m  
 
                        
Service charges
     42,634       42,955       -0.7  
Insurance commissions and fees
     12,094       12,878       -6.1  
Securities commissions and fees
     5,122       5,247       -2.4  
Trust income
     9,430       8,786       7.3  
Gain on sale of securities
     2,517       498       404.9  
Gain on sale of loans
     2,339       2,341       -0.1  
Other
     14,624       11,731       24.7  
 
                    
Total non-interest income
     86,472       80,202       7.8  
 
                        
Salaries and employee benefits
     100,348       95,096       5.5  
Occupancy and equipment
     28,784       28,806       -0.1  
Amortization of intangibles
     5,041       5,360       -6.0  
Other
     58,601       60,296       -2.8  
 
                    
Total non-interest expense
     192,774       189,558       1.7  
 
                        
Income before income taxes
     74,296       51,802       43.4  
Taxable equivalent adjustment
     4,969       4,689       6.0  
Income taxes (benefit)
     18,208       10,558       72.5  
 
                    
Net income
     51,119       36,555       39.8  
Preferred stock dividends and discount amortization
     0       8,308       n/m  
 
                    
Net income available to common shareholders
   $ 51,119     $ 28,247       81.0  
 
                    
 
                        
Earnings per common share
                        
Basic
   $ 0.45     $ 0.29       55.2  
Diluted
   $ 0.45     $ 0.29       55.2  
 
                        
Performance ratios
                        
Return on average equity
     6.48 %     4.58 %        
Return on average tangible common equity (2)(6)
     14.88 %     10.37 %        
Return on average assets
     0.77 %     0.57 %        
Return on average tangible assets (3)(6)
     0.88 %     0.67 %        
Net interest margin (FTE) (1)(9)
     3.78 %     3.63 %        
Yield on earning assets (FTE) (1)(9)
     4.97 %     5.34 %        
Cost of funds
     1.37 %     1.95 %        
Efficiency ratio (FTE) (1)(4)(9)
     61.84 %     65.26 %        
Effective tax rate
     26.26 %     22.41 %        
 
                        
Common stock data
                        
Average basic shares outstanding
     113,871,635       98,869,326       15.2  
Average diluted shares outstanding
     114,288,600       99,104,112       15.3  
Ending shares outstanding
     114,632,850       113,990,095       0.6  
Common book value per share
   $ 9.29     $ 9.23       0.6  
Tangible common book value per share (6)
   $ 4.38     $ 4.24       3.4  
Tangible common book value per share excluding AOCI (5)(6)
   $ 4.58     $ 4.50       2.0  
Dividend payout ratio (common)
     81.01 %     125.01 %        

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                         
                            3rd Qtr 2010 -     3rd Qtr 2010 -  
    2010     2009     2nd Qtr 2010     3rd Qtr 2009  
    Third     Second     Third     Percent     Percent  
    Quarter     Quarter     Quarter     Variance     Variance  
Average balances
                                        
Total assets
   $ 8,958,692     $ 8,874,430     $ 8,701,853       0.9       3.0  
Earning assets (9)
     7,773,915       7,697,232       7,549,614       1.0       3.0  
Securities
     1,612,612       1,599,216       1,466,176       0.8       10.0  
Short-term investments (9)
     162,377       159,874       269,425       1.6       -39.7  
Loans, net of unearned income
     5,998,926       5,938,142       5,814,013       1.0       3.2  
Allowance for loan losses
     117,982       113,531       103,249       3.9       14.3  
Goodwill and intangibles
     563,631       565,294       570,705       -0.3       -1.2  
 
                                        
Deposits and treasury management accounts (7)
     7,247,270       7,163,916       6,740,656       1.2       7.5  
Short-term borrowings
     129,752       126,972       118,274       2.2       9.7  
Long-term debt
     208,433       228,959       412,411       -9.0       -49.5  
Trust preferred securities
     204,287       204,455       204,962       -0.1       -0.3  
Shareholders’ equity — common
     1,062,512       1,052,569       1,056,171       0.9       0.6  
Shareholders’ equity — preferred
     0       0       72,727       n/m       n/m  
 
                                        
Asset quality data
                                        
Non-accrual loans
   $ 135,661     $ 132,412     $ 125,630       2.5       8.0  
Restructured loans
     18,735       17,270       8,282       8.5       126.2  
 
                                  
Non-performing loans
     154,396       149,682       133,912       3.1       15.3  
Other real estate owned
     32,345       22,952       19,741       40.9       63.8  
 
                                  
Total non-performing loans and OREO
     186,741       172,634       153,653       8.2       21.5  
Non-performing investments (8)
     5,163       4,661       5,758       10.8       -10.3  
 
                                  
Non-performing assets
   $ 191,904     $ 177,295     $ 159,411       8.2       20.4  
 
                                  
 
                                        
Net loan charge-offs
   $ 9,726     $ 7,791     $ 9,978       24.8       -2.5  
Allowance for loan losses
     116,627       114,040       105,892       2.3       10.1  
 
                                        
Non-performing loans / total loans
     2.57 %     2.51 %     2.29 %                
Non-performing loans + OREO / total loans + OREO
     3.09 %     2.88 %     2.62 %                
Non-performing assets / total assets
     2.13 %     2.01 %     1.85 %                
Allowance for loan losses / total loans
     1.94 %     1.91 %     1.81 %                
Allowance for loan losses / non-performing loans
     75.54 %     76.19 %     79.08 %                
Net loan charge-offs (annualized) / average loans
     0.64 %     0.53 %     0.68 %                
 
                                        
Balances at period end
                                        
Total assets
   $ 8,993,043     $ 8,833,060     $ 8,595,872       1.8       4.6  
Earning assets (9)
     7,794,305       7,647,064       7,442,619       1.9       4.7  
Loans, net of unearned income
     6,004,577       5,967,570       5,837,402       0.6       2.9  
Deposits and treasury management accounts (7)
     7,284,967       7,141,210       6,737,098       2.0       8.1  
Total equity
     1,064,846       1,058,004       1,052,589       0.6       1.2  
 
                                        
Capital ratios
                                        
Equity/assets (period end)
     11.84 %     11.98 %     12.25 %                
Leverage ratio
     8.63 %     8.63 %     8.73 %                
Tangible equity/tangible assets (period end) (6)
     5.96 %     5.97 %     6.02 %                
Tangible common equity/tangible assets (period end)(5)
     5.96 %     5.97 %     6.02 %                
Tangible common equity, excluding AOCI/ tangible assets (period end)(5)(6)
     6.23 %     6.28 %     6.39 %                

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                         
    For the Nine Months        
    Ended September 30,     Percent  
    2010     2009     Variance  
Average balances
                        
Total assets
   $ 8,860,202     $ 8,580,797       3.3  
Earning assets (9)
     7,680,608       7,421,031       3.5  
Securities
     1,565,199       1,369,059       14.3  
Short-term investments (9)
     172,755       236,074       -26.8  
Loans, net of unearned income
     5,942,654       5,815,899       2.2  
Allowance for loan losses
     113,292       105,681       7.2  
Goodwill and intangibles
     565,290       572,444       -1.2  
 
                        
Deposits and treasury management accounts (7)
     7,138,823       6,660,689       7.2  
Short-term borrowings
     129,809       108,919       19.2  
Long-term debt
     233,238       444,087       -47.5  
Trust preferred securities
     204,454       205,130       -0.3  
Shareholders’ equity — common
     1,054,115       981,647       7.4  
Shareholders’ equity — preferred
     0       85,035       n/m  
 
                        
Asset quality data
                        
Non-accrual loans
   $ 135,661     $ 125,630       8.0  
Restructured loans
     18,735       8,282       126.2  
 
                    
Non-performing loans
     154,396       133,912       15.3  
Other real estate owned
     32,345       19,741       63.8  
 
                    
Total non-performing loans and OREO
     186,741       153,653       21.5  
Non-performing investments (8)
     5,163       5,758       -10.3  
 
                    
Non-performing assets
   $ 191,904     $ 159,411       20.4  
 
                    
 
                        
Net loan charge-offs
   $ 24,544     $ 39,731       -38.2  
Allowance for loan losses
     116,627       105,892       10.1  
 
                        
Non-performing loans / total loans
     2.57 %     2.29 %        
Non-performing loans + OREO / total loans + OREO
     3.09 %     2.62 %        
Non-performing assets / total assets
     2.13 %     1.85 %        
Allowance for loan losses / total loans
     1.94 %     1.81 %        
Allowance for loan losses / non-performing loans
     75.54 %     79.08 %        
Net loan charge-offs (annualized) / average loans
     0.55 %     0.91 %        
 
                        
Balances at period end
                        
Total assets
   $ 8,993,043     $ 8,595,872       4.6  
Earning assets (9)
     7,794,305       7,442,619       4.7  
Loans, net of unearned income
     6,004,577       5,837,402       2.9  
Deposits and treasury management accounts (7)
     7,284,967       6,737,098       8.1  
Total equity
     1,064,846       1,052,589       1.2  
 
                        
Capital ratios
                        
Equity/assets (period end)
     11.84 %     12.25 %        
Leverage ratio
     8.63 %     8.73 %        
Tangible equity/tangible assets (period end) (6)
     5.96 %     6.02 %        
Tangible common equity/tangible assets (period end) (5)
     5.96 %     6.02 %        
Tangible common equity, excluding AOCI/ tangible assets (period end) (5) (6)
     6.23 %     6.39 %        

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                         
                            3rd Qtr 2010 -     3rd Qtr 2010 -  
    2010     2009     2nd Qtr 2010     3rd Qtr 2009  
    Third     Second     Third     Percent     Percent  
    Quarter     Quarter     Quarter     Variance     Variance  
Average balances                              
Loans:
                                        
Commercial
   $ 3,301,993     $ 3,311,030     $ 3,195,950       -0.3       3.3  
Direct installment
     990,453       969,007       997,319       2.2       -0.7  
Residential mortgages
     625,167       616,267       613,375       1.4       1.9  
Indirect installment
     521,815       517,452       544,002       0.8       -4.1  
Consumer LOC
     455,971       426,471       383,207       6.9       19.0  
Other
     103,527       97,915       80,160       5.7       29.2  
 
                              
Total loans
   $ 5,998,926     $ 5,938,142     $ 5,814,013       1.0       3.2  
 
                              
 
                                        
Deposits:
                                        
Non-interest bearing deposits
   $ 1,077,797     $ 1,028,631     $ 951,112       4.8       13.3  
Savings and NOW
     3,307,256       3,297,537       3,101,168       0.3       6.6  
Certificates of deposit and other time deposits
     2,201,454       2,219,194       2,223,126       -0.8       -1.0  
 
                              
Total deposits
     6,586,507       6,545,362       6,275,406       0.6       5.0  
Treasury management accounts (7)
     660,763       618,554       465,250       6.8       42.0  
 
                              
Total deposits and treasury management accounts (7)
   $ 7,247,270     $ 7,163,916     $ 6,740,656       1.2       7.5  
 
                              
 
                                        
Balances at period end
                                        
Loans:
                                        
Commercial
   $ 3,299,230     $ 3,304,493     $ 3,226,720       -0.2       2.2  
Direct installment
     994,614       983,857       993,863       1.1       0.1  
Residential mortgages
     612,484       615,232       594,586       -0.4       3.0  
Indirect installment
     519,366       521,679       544,579       -0.4       -4.6  
Consumer LOC
     473,606       438,039       395,366       8.1       19.8  
Other
     105,277       104,270       82,288       1.0       27.9  
 
                              
Total loans
   $ 6,004,577     $ 5,967,570     $ 5,837,402       0.6       2.9  
 
                              
 
                                        
Deposits:
                                        
Non-interest bearing deposits
   $ 1,103,393     $ 1,039,631     $ 972,859       6.1       13.4  
Savings and NOW
     3,307,698       3,280,076       3,072,601       0.8       7.7  
Certificates of deposit and other time deposits
     2,186,737       2,214,951       2,213,323       -1.3       -1.2  
 
                              
Total deposits
     6,597,828       6,534,658       6,258,783       1.0       5.4  
Treasury management accounts (7)
     687,139       606,552       478,315       13.3       43.7  
 
                              
Total deposits and treasury management accounts (7)
   $ 7,284,967     $ 7,141,210     $ 6,737,098       2.0       8.1  
 
                              

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                         
    For the Nine Months        
    Ended September 30,     Percent  
    2010     2009     Variance  
Average balances
                        
Loans:
                        
Commercial
   $ 3,298,253     $ 3,188,766       3.4  
Direct installment
     978,249       1,020,690       -4.2  
Residential mortgages
     618,130       627,642       -1.5  
Indirect installment
     519,205       538,764       -3.6  
Consumer LOC
     431,532       365,078       18.2  
Other
     97,285       74,959       29.8  
 
                    
Total loans
   $ 5,942,654     $ 5,815,899       2.2  
 
                    
 
                        
Deposits:
                        
Non-interest bearing deposits
   $ 1,025,847     $ 928,238       10.5  
Savings and NOW
     3,274,280       3,005,164       9.0  
Certificates of deposit and other time deposits
     2,213,129       2,276,079       -2.8  
 
                    
Total deposits
     6,513,256       6,209,481       4.9  
Treasury management accounts (7)
     625,567       451,208       38.6  
 
                    
Total deposits and treasury management accounts (7)
   $ 7,138,823     $ 6,660,689       7.2  
 
                    
 
                        
Balances at period end
                        
Loans:
                        
Commercial
   $ 3,299,230     $ 3,226,720       2.2  
Direct installment
     994,614       993,863       0.1  
Residential mortgages
     612,484       594,586       3.0  
Indirect installment
     519,366       544,579       -4.6  
Consumer LOC
     473,606       395,366       19.8  
Other
     105,277       82,288       27.9  
 
                    
Total loans
   $ 6,004,577     $ 5,837,402       2.9  
 
                    
 
                        
Deposits:
                        
Non-interest bearing deposits
   $ 1,103,393     $ 972,859       13.4  
Savings and NOW
     3,307,698       3,072,601       7.7  
Certificates of deposit and other time deposits
     2,186,737       2,213,323       -1.2  
 
                    
Total deposits
     6,597,828       6,258,783       5.4  
Treasury management accounts (7)
     687,139       478,315       43.7  
 
                    
Total deposits and treasury management accounts (7)
   $ 7,284,967     $ 6,737,098       8.1  
 
                    

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                 
    Third Quarter 2010  
    Bank — PA     Bank — FL     Regency     Total  
Asset quality data, by core portfolio
                                
Non-accrual loans
   $ 62,634     $ 71,210     $ 1,817     $ 135,661  
Restructured loans
     12,670       0       6,065       18,735  
 
                        
Non-performing loans
     75,304       71,210       7,882       154,396  
Other real estate owned
     9,458       21,548       1,339       32,345  
 
                        
Total non-performing loans and OREO
     84,762       92,758       9,221       186,741  
Non-performing investments (8)
     5,163       0       0       5,163  
 
                        
Non-performing assets
   $ 89,925     $ 92,758     $ 9,221     $ 191,904  
 
                        
 
                                
Net loan charge-offs
   $ 4,462     $ 3,694     $ 1,570     $ 9,726  
Provision for loan losses
     4,796       5,867       1,650       12,313  
Allowance for loan losses
     80,729       29,114       6,784       116,627  
Loans, net of unearned income
     5,629,633       213,436       161,508       6,004,577  
 
                                
Non-performing loans / total loans
     1.34 %     33.36 %     4.88 %     2.57 %
Non-performing loans + OREO / total loans + OREO
     1.50 %     39.47 %     5.66 %     3.09 %
Non-performing assets / total assets
     1.05 %     45.06 %     5.48 %     2.13 %
Allowance for loan losses / total loans
     1.43 %     13.64 %     4.20 %     1.94 %
Allowance for loan losses / non-performing loans
     107.20 %     40.88 %     86.07 %     75.54 %
Net loan charge-offs (annualized) / average loans
     0.32 %     6.59 %     3.84 %     0.64 %
 
                                
Loans 30 - 89 days past due
   $ 32,846     $ 1,000     $ 2,402     $ 36,248  
Loans 90+ days past due
     7,007       0       2,187       9,194  
Non-accrual loans
     62,634       71,210       1,817       135,661  
 
                        
Total past due and non-accrual loans
   $ 102,487     $ 72,210     $ 6,406     $ 181,103  
 
                        
 
                                
Total past due and non-accrual loans/total loans
     1.82 %     33.83 %     3.97 %     3.02 %
                                 
    Second Quarter 2010  
    Bank — PA     Bank — FL     Regency     Total  
Asset quality data, by core portfolio
                                
Non-accrual loans
   $ 66,391     $ 64,063     $ 1,958     $ 132,412  
Restructured loans
     11,233       0       6,037       17,270  
 
                        
Non-performing loans
     77,624       64,063       7,995       149,682  
Other real estate owned
     9,626       12,245       1,081       22,952  
 
                        
Total non-performing loans and OREO
     87,250       76,308       9,076       172,634  
Non-performing investments (8)
     4,661       0       0       4,661  
 
                        
Non-performing assets
   $ 91,911     $ 76,308     $ 9,076     $ 177,295  
 
                        
 
                                
Net loan charge-offs
   $ 4,442     $ 1,900     $ 1,449     $ 7,791  
Provision for loan losses
     4,494       6,168       1,577       12,239  
Allowance for loan losses
     80,396       26,940       6,704       114,040  
Loans, net of unearned income
     5,576,734       231,237       159,599       5,967,570  
 
                                
Non-performing loans / total loans
     1.39 %     27.70 %     5.01 %     2.51 %
Non-performing loans + OREO / total loans + OREO
     1.56 %     31.34 %     5.65 %     2.88 %
Non-performing assets / total assets
     1.09 %     35.24 %     5.45 %     2.01 %
Allowance for loan losses / total loans
     1.44 %     11.65 %     4.20 %     1.91 %
Allowance for loan losses / non-performing loans
     103.57 %     42.05 %     83.85 %     76.19 %
Net loan charge-offs (annualized) / average loans
     0.32 %     3.23 %     3.73 %     0.53 %
 
                                
Loans 30 - 89 days past due
   $ 35,005     $ 0     $ 2,070     $ 37,075  
Loans 90+ days past due
     5,285       0       2,288       7,573  
Non-accrual loans
     66,391       64,063       1,958       132,412  
 
                        
Total past due and non-accrual loans
   $ 106,681     $ 64,063     $ 6,316     $ 177,060  
 
                        
 
                                
Total past due and non-accrual loans/total loans
     1.91 %     27.70 %     3.96 %     2.97 %

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                 
    Third Quarter 2009  
    Bank — PA     Bank — FL     Regency     Total  
Asset quality data, by core portfolio
                                
Non-accrual loans
   $ 55,454     $ 68,073     $ 2,103     $ 125,630  
Restructured loans
     3,650       0       4,632       8,282  
 
                        
Non-performing loans
     59,104       68,073       6,735       133,912  
Other real estate owned
     10,380       8,067       1,294       19,741  
 
                        
Total non-performing loans and OREO
     69,484       76,140       8,029       153,653  
Non-performing investments (8)
     5,758       0       0       5,758  
 
                        
Non-performing assets
   $ 75,242     $ 76,140     $ 8,029     $ 159,411  
 
                        
 
                                
Net loan charge-offs
   $ 4,469     $ 4,059     $ 1,450     $ 9,978  
Provision for loan losses
     7,555       7,379       1,521       16,455  
Allowance for loan losses
     72,764       26,627       6,501       105,892  
Loans, net of unearned income
     5,407,215       271,634       158,553       5,837,402  
 
                                
Non-performing loans / total loans
     1.09 %     25.06 %     4.25 %     2.29 %
Non-performing loans + OREO / total loans + OREO
     1.28 %     27.22 %     5.02 %     2.62 %
Non-performing assets / total assets
     0.92 %     30.09 %     4.79 %     1.85 %
Allowance for loan losses / total loans
     1.35 %     9.80 %     4.10 %     1.81 %
Allowance for loan losses / non-performing loans
     123.11 %     39.12 %     96.53 %     79.08 %
Net loan charge-offs (annualized) / average loans
     0.33 %     5.90 %     3.64 %     0.68 %
 
                                
Loans 30 - 89 days past due
   $ 43,140     $ 2,700     $ 2,853     $ 48,693  
Loans 90+ days past due
     10,827       0       2,298       13,125  
Non-accrual loans
     55,454       68,073       2,103       125,630  
 
                        
Total past due and non-accrual loans
   $ 109,421     $ 70,773     $ 7,254     $ 187,448  
 
                        
 
                                
Total past due and non-accrual loans/total loans
     2.02 %     26.05 %     4.58 %     3.21 %

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                         
                            3rd Qtr 2010 -     3rd Qtr 2010 -  
    2010     2009     2nd Qtr 2010     3rd Qtr 2009  
    Third     Second     Third     Percent     Percent  
    Quarter     Quarter     Quarter     Variance     Variance  
Balance Sheet (at period end)
                                        
Assets
                                        
Cash and due from banks
   $ 142,615     $ 140,629     $ 140,037       1.4       1.8  
Interest bearing deposits with banks
     164,406       60,238       88,777       172.9       85.2  
 
                                  
Cash and cash equivalents
     307,021       200,867       228,814       52.8       34.2  
Securities available for sale
     738,828       758,325       693,617       -2.6       6.5  
Securities held to maturity
     869,765       853,698       803,761       1.9       8.2  
Residential mortgage loans held for sale
     16,729       7,232       19,063       131.3       -12.2  
Loans, net of unearned income
     6,004,577       5,967,570       5,837,402       0.6       2.9  
Allowance for loan losses
     (116,627 )     (114,040 )     (105,892 )     2.3       10.1  
 
                                  
Net loans
     5,887,950       5,853,530       5,731,510       0.6       2.7  
Premises and equipment, net
     114,320       115,323       118,650       -0.9       -3.6  
Goodwill
     528,720       528,720       528,710       0.0       0.0  
Core deposit and other intangible assets, net
     34,100       35,775       40,868       -4.7       -16.6  
Bank owned life insurance
     207,402       207,093       204,098       0.1       1.6  
Other assets
     288,209       272,495       226,781       5.8       27.1  
 
                                  
Total Assets
   $ 8,993,043     $ 8,833,060     $ 8,595,872       1.8       4.6  
 
                                  
 
                                        
Liabilities
                                        
Deposits:
                                        
Non-interest bearing demand
   $ 1,103,393     $ 1,039,630     $ 972,859       6.1       13.4  
Savings and NOW
     3,307,698       3,280,076       3,072,601       0.8       7.7  
Certificates and other time deposits
     2,186,737       2,214,952       2,213,323       -1.3       -1.2  
 
                                  
Total Deposits
     6,597,828       6,534,658       6,258,783       1.0       5.4  
Other liabilities
     105,326       94,748       93,957       11.2       12.1  
Short-term borrowings
     817,582       735,442       606,406       11.2       34.8  
Long-term debt
     203,257       205,834       379,257       -1.3       -46.4  
Junior subordinated debt
     204,204       204,373       204,880       -0.1       -0.3  
 
                                  
Total Liabilities
     7,928,197       7,775,056       7,543,283       2.0       5.1  
 
                                        
Stockholders’ Equity
                                        
Preferred stock
     0       0       0       n/m       n/m  
Common stock
     1,142       1,141       1,137       0.1       0.5  
Additional paid-in capital
     1,092,828       1,091,253       1,086,378       0.1       0.6  
Retained earnings
     (3,126 )     (6,515 )     (3,645 )     -52.0       -14.2  
Accumulated other comprehensive income
     (23,481 )     (25,358 )     (29,529 )     -7.4       -20.5  
Treasury stock
     (2,517 )     (2,517 )     (1,752 )     0.0       43.7  
 
                                  
Total Stockholders’ Equity
     1,064,846       1,058,004       1,052,589       0.6       1.2  
 
                                  
Total Liabilities and Stockholders’ Equity
   $ 8,993,043     $ 8,833,060     $ 8,595,872       1.8       4.6  
 
                                  
 
                                        

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
NON-GAAP FINANCIAL MEASURES
The following non-GAAP financial measures used by the Corporation provide information useful to investors in understanding the Corporation’s operating performance and trends, and facilitate comparisons with the performance of the Corporation’s peers. The non-GAAP financial measures used by the Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. The following tables summarize the non-GAAP financial measures derived from amounts reported in the Corporation’s financial statements.
                         
    2010     2009  
    Third     Second     Third  
    Quarter     Quarter     Quarter  
Return on average tangible common equity (2):
                        
Net income available to common shareholders (annualized)
   $ 68,308     $ 71,886     $ 19,085  
Amortization of intangibles, net of tax (annualized)
     4,319       4,376       4,467  
 
                  
 
     72,627       76,262       23,552  
 
                        
Average total shareholders’ equity
     1,062,512       1,052,569       1,128,898  
Less: Average preferred shareholders’ equity
     0       0       (72,727 )
Less: Average intangibles
     (563,631 )     (565,294 )     (570,705 )
 
                  
 
     498,881       487,275       485,466  
 
                        
Return on average tangible common equity (2)
     14.56 %     15.65 %     4.85 %
 
                  
 
                        
Return on average tangible assets (3):
                        
Net income (annualized)
   $ 68,308     $ 71,886     $ 40,887  
Amortization of intangibles, net of tax (annualized)
     4,319       4,376       4,467  
 
                  
 
     72,627       76,262       45,354  
 
                        
Average total assets
     8,958,692       8,874,430       8,701,853  
Less: Average intangibles
     (563,631 )     (565,294 )     (570,705 )
 
                  
 
     8,395,061       8,309,136       8,131,148  
 
                        
Return on average tangible assets (3)
     0.87 %     0.92 %     0.56 %
 
                  
 
                        
Tangible common book value per share:
                        
Total shareholders’ equity
   $ 1,064,846     $ 1,058,004     $ 1,052,589  
Less: preferred shareholders’ equity
     0       0       0  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
 
                  
 
     502,026       493,509       483,010  
 
                        
Ending shares outstanding
     114,632,850       114,532,890       113,990,095  
 
                        
Tangible common book value per share
   $ 4.38     $ 4.31     $ 4.24  
 
                  
 
                        
Tangible common book value per share excluding AOCI (5):
                        
Total shareholders’ equity
   $ 1,064,846     $ 1,058,004     $ 1,052,589  
Less: preferred shareholders’ equity
     0       0       0  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
Less: AOCI
     23,481       25,358       29,529  
 
                  
 
     525,507       518,867       512,539  
 
                        
Ending shares outstanding
     114,632,850       114,532,890       113,990,095  
 
                        
Tangible common book value per share excluding AOCI (5)
   $ 4.58     $ 4.53     $ 4.50  
 
                  

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                 
    For the Nine Months  
    Ended September 30,  
    2010     2009  
Return on average tangible common equity (2):
                
Net income available to common shareholders (annualized)
   $ 68,346     $ 37,766  
Amortization of intangibles, net of tax (annualized)
     4,381       4,658  
 
            
 
     72,727       42,424  
 
                
Average total shareholders’ equity
     1,054,115       1,066,683  
Less: Average preferred shareholders’ equity
     0       (85,035 )
Less: Average intangibles
     (565,290 )     (572,444 )
 
            
 
     488,825       409,203  
 
                
Return on average tangible common equity (2)
     14.88 %     10.37 %
 
            
 
                
Return on average tangible assets (3):
                
Net income (annualized)
   $ 68,346     $ 48,874  
Amortization of intangibles, net of tax (annualized)
     4,381       4,658  
 
            
 
     72,727       53,532  
 
                
Average total assets
     8,860,202       8,580,797  
Less: Average intangibles
     (565,290 )     (572,444 )
 
            
 
     8,294,912       8,008,353  
 
                
Return on average tangible assets (3)
     0.88 %     0.67 %
 
            
 
                
Tangible common book value per share:
                
Total shareholders’ equity
   $ 1,064,846     $ 1,052,589  
Less: preferred shareholders’ equity
     0       0  
Less: intangibles
     (562,820 )     (569,579 )
 
            
 
     502,026       483,010  
 
                
Ending shares outstanding
     114,632,850       113,990,095  
 
                
Tangible common book value per share
   $ 4.38     $ 4.24  
 
            
 
                
Tangible common book value per share excluding AOCI (5):
                
Total shareholders’ equity
   $ 1,064,846     $ 1,052,589  
Less: preferred shareholders’ equity
     0       0  
Less: intangibles
     (562,820 )     (569,579 )
Less: AOCI
     23,481       29,529  
 
            
 
     525,507       512,539  
 
                
Ending shares outstanding
     114,632,850       113,990,095  
 
                
Tangible common book value per share excluding AOCI (5)
   $ 4.58     $ 4.50  
 
            

 

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                         
    2010     2009  
    Third     Second     Third  
    Quarter     Quarter     Quarter  
Tangible equity/tangible assets (period end):
                        
Total shareholders’ equity
   $ 1,064,846     $ 1,058,004     $ 1,052,589  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
 
                  
 
     502,026       493,509       483,010  
 
                        
Total assets
     8,993,043       8,833,060       8,595,872  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
 
                  
 
     8,430,223       8,268,565       8,026,293  
 
                        
Tangible equity/tangible assets (period end)
     5.96 %     5.97 %     6.02 %
 
                  
 
                        
Tangible common equity/tangible assets (period end):
                        
Total shareholders’ equity
   $ 1,064,846     $ 1,058,004     $ 1,052,589  
Less: preferred shareholders’ equity
     0       0       0  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
 
                  
 
     502,026       493,509       483,010  
 
                        
Total assets
     8,993,043       8,833,060       8,595,872  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
 
                  
 
     8,430,223       8,268,565       8,026,293  
Tangible common equity/tangible assets (period end)
     5.96 %     5.97 %     6.02 %
 
                  
 
                        
Tangible common equity, excluding AOCI/ tangible assets (period end) (5):
                        
Total shareholders’ equity
   $ 1,064,846     $ 1,058,004     $ 1,052,589  
Less: preferred shareholders’ equity
     0       0       0  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
Less: AOCI
     23,481       25,358       29,529  
 
                  
 
     525,507       518,867       512,539  
 
                        
Total assets
     8,993,043       8,833,060       8,595,872  
Less: intangibles
     (562,820 )     (564,495 )     (569,579 )
 
                  
 
     8,430,223       8,268,565       8,026,293  
 
                        
Tangible common equity, excluding AOCI/ tangible assets (period end) (5)
     6.23 %     6.28 %     6.39 %
 
                  
 
(1)   Net interest income is also presented on a fully taxable equivalent (FTE) basis, as the Corporation believes this non-GAAP measure is the preferred industry measurement for this item.
 
(2)   Return on average tangible common equity is calculated by dividing net income less amortization of intangibles by average common equity less average intangibles.
 
(3)   Return on average tangible assets is calculated by dividing net income less amortization of intangibles by average assets less average intangibles.
 
(4)   The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus non-interest income.
 
(5)   Accumulated other comprehensive income (AOCI) is comprised of unrealized losses on securities, non-credit impairment losses on other-than-temporarily impaired securities and unrecognized pension and postretirement obligations.
 
(6)   See non-GAAP financial measures for additional information relating to the calculation of this item.
 
(7)   Treasury management accounts represent repurchase agreements and are included in short-term borrowings on the balance sheet.
 
(8)   The non-performing investments at both June 30, 2009 and March 31, 2009 include $0.1 million at a non-banking affiliate of the Corporation.
 
(9)   Certain prior period amounts have been reclassified to conform to the current period presentation.