F.N.B. CORPORATION |
(Exact name of registrant as specified in its charter) |
PENNSYLVANIA |
(State or Other Jurisdiction of Incorporation) |
001-31940 | 25-1255406 |
(Commission File Number) | (IRS Employer Identification No.) |
12 Federal Street, One North Shore Center, Pittsburgh, PA | 15212 |
(Address of Principal Executive Offices) | (Zip Code) |
(800) 555-5455 |
(Registrant's telephone number, including area code) |
N/A |
(Former name or former address, if changed since last report) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
F.N.B. CORPORATION | ||
(Registrant) | ||
By: | /s/ Vincent J. Calabrese, Jr. | |
Name: | Vincent J. Calabrese, Jr. | |
Title: | Chief Financial Officer | |
(Principal Financial Officer) |
• | Growth in total average loans was $1.1 billion, or 5.4%, with average commercial loan growth of $545 million, or 4.2%, and average consumer loan growth of $576 million, or 7.5%. |
• | Total average deposits grew $1.9 billion, or 9.1%, including an increase in average non-interest bearing deposits of $439 million, or 7.9%, and an increase in average time deposits of $1.4 billion, or 37.9%. |
• | The loan to deposit ratio was 92.9% at September 30, 2018, compared to 94.9%. |
• | The net interest margin (FTE) (non-GAAP) declined 8 basis points to 3.36% from 3.44%, reflecting a 3 basis point decrease in the fully taxable equivalent adjustment related to the impact of tax reform. Included in the net interest margin of 3.36% and 3.44%, Regency contributed 8 basis points and 13 basis points, respectively. |
• | Total revenue increased 6.3% to $310 million, reflecting a 4.2% increase in net interest income and a 13.1% increase in non-interest income. |
• | Non-interest income increased $8.7 million or 13.1%. Excluding the Regency gain on sale, operating non-interest income increased $3.5 million or 5.4%, with increases in mortgage banking, wealth management and capital markets. |
• | The efficiency ratio equaled 53.7%, compared to 53.1% in the third quarter of 2017 and 55.6% in the second quarter of 2018. |
• | The annualized net charge-offs to total average loans ratio increased to 0.27% from 0.24%. The third quarter of 2018 included 13 basis points of net charge-offs from the mark to fair value on the Regency loans prior to the sale, with no associated provision expense. |
• | The ratio of the allowance for credit losses to total loans and leases was essentially flat at 0.81%, compared to 0.82%. |
Quarterly Results Summary | 3Q18 | 2Q18 | 3Q17 | |||||||||
Reported results | ||||||||||||
Net income available to common stockholders (millions) | $ | 98.8 | $ | 83.2 | $ | 75.7 | ||||||
Net income per diluted common share | $ | 0.30 | $ | 0.26 | $ | 0.23 | ||||||
Book value per common share (period-end) | $ | 13.62 | $ | 13.47 | $ | 13.39 | ||||||
Operating results (non-GAAP) | ||||||||||||
Operating net income available to common stockholders (millions) | $ | 94.7 | $ | 89.1 | $ | 76.6 | ||||||
Operating net income per diluted common share | $ | 0.29 | $ | 0.27 | $ | 0.24 | ||||||
Tangible common equity to tangible assets (period-end) | 6.89 | % | 6.79 | % | 6.87 | % | ||||||
Tangible book value per common share (period-end) | $ | 6.44 | $ | 6.26 | $ | 6.12 | ||||||
Average Diluted Common Shares Outstanding (thousands) | 325,653 | 325,730 | 324,905 | |||||||||
Significant items influencing earnings1 (millions) | ||||||||||||
Pre-tax merger-related expenses | $ | — | $ | — | $ | (1.4 | ) | |||||
After-tax impact of merger-related expenses | $ | — | $ | — | $ | (0.9 | ) | |||||
Pre-tax discretionary 401(k) contribution | $ | — | $ | (0.9 | ) | $ | — | |||||
After-tax impact of discretionary 401(k) contribution | $ | — | $ | (0.7 | ) | $ | — | |||||
Pre-tax gain on sale of subsidiary | $ | 5.1 | $ | — | $ | — | ||||||
After-tax impact of gain on sale of subsidiary | $ | 4.1 | $ | — | $ | — | ||||||
Pre-tax branch consolidation costs | $ | — | $ | (6.6 | ) | $ | — | |||||
After-tax impact of branch consolidation costs | $ | — | $ | (5.2 | ) | $ | — | |||||
(1) Favorable (unfavorable) impact on earnings | ||||||||||||
Year-to-Date Results Summary | 2018 | 2017 | ||||||||||
Reported results | ||||||||||||
Net income available to common stockholders (millions) | $ | 266.7 | $ | 169.0 | ||||||||
Net income per diluted common share | $ | 0.82 | $ | 0.57 | ||||||||
Operating results (non-GAAP) | ||||||||||||
Operating net income available to common stockholders (millions) | $ | 268.6 | $ | 204.3 | ||||||||
Operating net income per diluted common share | $ | 0.82 | $ | 0.69 | ||||||||
Average Diluted Common Shares Outstanding (thousands) | 325,675 | 296,653 | ||||||||||
Significant items influencing earnings1 (millions) | ||||||||||||
Pre-tax merger-related expenses | $ | — | $ | (55.5 | ) | |||||||
After-tax impact of merger-related expenses | $ | — | $ | (37.0 | ) | |||||||
Pre-tax merger-related net securities gains | $ | — | $ | 2.6 | ||||||||
After-tax impact of net merger-related securities gains | $ | — | $ | 1.7 | ||||||||
Pre-tax discretionary 401(k) contribution | $ | (0.9 | ) | $ | — | |||||||
After-tax impact of discretionary 401(k) contribution | $ | (0.7 | ) | $ | — | |||||||
Pre-tax gain on sale of subsidiary | $ | 5.1 | $ | — | ||||||||
After-tax impact of gain on sale of subsidiary | $ | 4.1 | $ | — | ||||||||
Pre-tax branch consolidation costs | $ | (6.6 | ) | $ | — | |||||||
After-tax impact of branch consolidation costs | $ | (5.2 | ) | $ | — | |||||||
(1) Favorable (unfavorable) impact on earnings |
F.N.B. CORPORATION | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
% Variance | ||||||||||||||||||||||||||||
3Q18 | 3Q18 | For the Nine Months Ended September 30, | % | |||||||||||||||||||||||||
Statement of Earnings | 3Q18 | 2Q18 | 3Q17 | 2Q18 | 3Q17 | 2018 | 2017 | Var. | ||||||||||||||||||||
Interest income | $ | 297,815 | $ | 294,117 | $ | 263,514 | 1.3 | 13.0 | $ | 864,859 | $ | 709,241 | 21.9 | |||||||||||||||
Interest expense | 63,028 | 54,762 | 38,283 | 15.1 | 64.6 | 164,612 | 92,843 | 77.3 | ||||||||||||||||||||
Net interest income | 234,787 | 239,355 | 225,231 | (1.9 | ) | 4.2 | 700,247 | 616,398 | 13.6 | |||||||||||||||||||
Provision for credit losses | 15,975 | 15,554 | 16,768 | 2.7 | (4.7 | ) | 46,024 | 44,374 | 3.7 | |||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Service charges | 31,922 | 31,114 | 32,212 | 2.6 | (0.9 | ) | 93,113 | 88,883 | 4.8 | |||||||||||||||||||
Trust services | 6,395 | 6,469 | 5,748 | (1.1 | ) | 11.2 | 19,312 | 17,210 | 12.2 | |||||||||||||||||||
Insurance commissions and fees | 5,001 | 4,567 | 5,029 | 9.5 | (0.6 | ) | 14,703 | 14,517 | 1.3 | |||||||||||||||||||
Securities commissions and fees | 4,491 | 4,526 | 4,038 | (0.8 | ) | 11.2 | 13,336 | 11,548 | 15.5 | |||||||||||||||||||
Capital markets income | 5,100 | 5,854 | 2,822 | (12.9 | ) | 80.7 | 16,168 | 11,673 | 38.5 | |||||||||||||||||||
Mortgage banking operations | 5,962 | 5,940 | 5,437 | 0.4 | 9.7 | 17,431 | 14,400 | 21.0 | ||||||||||||||||||||
Net securities gains | — | 31 | 2,777 | n/m | n/m | 31 | 5,895 | n/m | ||||||||||||||||||||
Other | 15,963 | 6,388 | 8,088 | 149.9 | 97.4 | 33,132 | 23,219 | 42.7 | ||||||||||||||||||||
Total non-interest income | 74,834 | 64,889 | 66,151 | 15.3 | 13.1 | 207,226 | 187,345 | 10.6 | ||||||||||||||||||||
Total revenue | 309,621 | 304,244 | 291,382 | 1.8 | 6.3 | 907,473 | 803,743 | 12.9 | ||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 89,535 | 98,671 | 82,383 | (9.3 | ) | 8.7 | 277,532 | 240,860 | 15.2 | |||||||||||||||||||
Occupancy and equipment | 27,812 | 29,332 | 27,434 | (5.2 | ) | 1.4 | 87,177 | 74,893 | 16.4 | |||||||||||||||||||
FDIC insurance | 8,821 | 9,167 | 9,183 | (3.8 | ) | (3.9 | ) | 26,822 | 23,946 | 12.0 | ||||||||||||||||||
Amortization of intangibles | 3,805 | 3,811 | 4,805 | (0.2 | ) | (20.8 | ) | 11,834 | 12,716 | (6.9 | ) | |||||||||||||||||
Other real estate owned | 1,492 | 2,233 | 1,421 | (33.2 | ) | 5.0 | 5,092 | 3,412 | 49.2 | |||||||||||||||||||
Merger-related | — | — | 1,381 | n/m | n/m | — | 55,459 | n/m | ||||||||||||||||||||
Other | 39,264 | 39,799 | 37,136 | (1.3 | ) | 5.7 | 116,368 | 103,726 | 12.2 | |||||||||||||||||||
Total non-interest expense | 170,729 | 183,013 | 163,743 | (6.7 | ) | 4.3 | 524,825 | 515,012 | 1.9 | |||||||||||||||||||
Income before income taxes | 122,917 | 105,677 | 110,871 | 16.3 | 10.9 | 336,624 | 244,357 | 37.8 | ||||||||||||||||||||
Income taxes | 22,154 | 20,471 | 33,178 | 8.2 | (33.2 | ) | 63,893 | 69,279 | (7.8 | ) | ||||||||||||||||||
Net income | 100,763 | 85,206 | 77,693 | 18.3 | 29.7 | 272,731 | 175,078 | 55.8 | ||||||||||||||||||||
Preferred stock dividends | 2,010 | 2,010 | 2,010 | — | — | 6,030 | 6,030 | — | ||||||||||||||||||||
Net income available to common stockholders | $ | 98,753 | $ | 83,196 | $ | 75,683 | 18.7 | 30.5 | $ | 266,701 | $ | 169,048 | 57.8 | |||||||||||||||
Earnings per common share | ||||||||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.26 | $ | 0.23 | 15.4 | 30.4 | $ | 0.82 | $ | 0.57 | 43.9 | |||||||||||||||
Diluted | $ | 0.30 | $ | 0.26 | $ | 0.23 | 15.4 | 30.4 | $ | 0.82 | $ | 0.57 | 43.9 | |||||||||||||||
n/m - not meaningful |
F.N.B. CORPORATION | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
% Variance | |||||||||||||||||
3Q18 | 3Q18 | ||||||||||||||||
Balance Sheets (at period end) | 3Q18 | 2Q18 | 3Q17 | 2Q18 | 3Q17 | ||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 397,268 | $ | 398,641 | $ | 433,442 | (0.3 | ) | (8.3 | ) | |||||||
Interest bearing deposits with banks | 40,585 | 35,058 | 81,898 | 15.8 | (50.4 | ) | |||||||||||
Cash and cash equivalents | 437,853 | 433,699 | 515,340 | 1.0 | (15.0 | ) | |||||||||||
Securities available for sale | 3,298,894 | 3,002,787 | 2,855,350 | 9.9 | 15.5 | ||||||||||||
Securities held to maturity | 3,206,345 | 3,295,081 | 2,985,921 | (2.7 | ) | 7.4 | |||||||||||
Loans held for sale | 42,083 | 44,112 | 113,778 | (4.6 | ) | (63.0 | ) | ||||||||||
Loans and leases, net of unearned income | 21,839,403 | 21,659,582 | 20,817,436 | 0.8 | 4.9 | ||||||||||||
Allowance for credit losses | (177,881 | ) | (176,574 | ) | (170,016 | ) | 0.7 | 4.6 | |||||||||
Net loans and leases | 21,661,522 | 21,483,008 | 20,647,420 | 0.8 | 4.9 | ||||||||||||
Premises and equipment, net | 323,244 | 324,659 | 336,294 | (0.4 | ) | (3.9 | ) | ||||||||||
Goodwill | 2,249,541 | 2,251,349 | 2,254,831 | (0.1 | ) | (0.2 | ) | ||||||||||
Core deposit and other intangible assets, net | 80,290 | 84,096 | 96,876 | (4.5 | ) | (17.1 | ) | ||||||||||
Bank owned life insurance | 533,991 | 532,135 | 498,698 | 0.3 | 7.1 | ||||||||||||
Other assets | 783,832 | 806,637 | 818,787 | (2.8 | ) | (4.3 | ) | ||||||||||
Total Assets | $ | 32,617,595 | $ | 32,257,563 | $ | 31,123,295 | 1.1 | 4.8 | |||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest bearing demand | $ | 6,018,852 | $ | 5,926,473 | $ | 5,569,239 | 1.6 | 8.1 | |||||||||
Interest bearing demand | 9,519,704 | 9,134,954 | 9,675,170 | 4.2 | (1.6 | ) | |||||||||||
Savings | 2,513,679 | 2,607,372 | 2,513,163 | (3.6 | ) | — | |||||||||||
Certificates and other time deposits | 5,447,751 | 4,870,988 | 4,171,599 | 11.8 | 30.6 | ||||||||||||
Total Deposits | 23,499,986 | 22,539,787 | 21,929,171 | 4.3 | 7.2 | ||||||||||||
Short-term borrowings | 3,679,380 | 4,334,146 | 3,872,301 | (15.1 | ) | (5.0 | ) | ||||||||||
Long-term borrowings | 627,049 | 628,938 | 658,783 | (0.3 | ) | (4.8 | ) | ||||||||||
Other liabilities | 286,316 | 281,450 | 227,119 | 1.7 | 26.1 | ||||||||||||
Total Liabilities | 28,092,731 | 27,784,321 | 26,687,374 | 1.1 | 5.3 | ||||||||||||
Stockholders' Equity | |||||||||||||||||
Preferred stock | 106,882 | 106,882 | 106,882 | — | — | ||||||||||||
Common stock | 3,263 | 3,262 | 3,251 | — | 0.4 | ||||||||||||
Additional paid-in capital | 4,046,168 | 4,043,124 | 4,029,334 | 0.1 | 0.4 | ||||||||||||
Retained earnings | 516,865 | 457,326 | 369,861 | 13.0 | 39.7 | ||||||||||||
Accumulated other comprehensive loss | (126,840 | ) | (115,885 | ) | (54,310 | ) | 9.5 | 133.5 | |||||||||
Treasury stock | (21,474 | ) | (21,467 | ) | (19,097 | ) | — | 12.4 | |||||||||
Total Stockholders' Equity | 4,524,864 | 4,473,242 | 4,435,921 | 1.2 | 2.0 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 32,617,595 | $ | 32,257,563 | $ | 31,123,295 | 1.1 | 4.8 |
F.N.B. Corporation | 3Q18 | 2Q18 | 3Q17 | ||||||||||||||||||||||||||||||
(Unaudited) | Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||
(Dollars in thousands) | Average | Earned | Yield | Average | Earned | Yield | Average | Earned | Yield | ||||||||||||||||||||||||
Outstanding | or Paid | or Rate | Outstanding | or Paid | or Rate | Outstanding | or Paid | or Rate | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Interest bearing deposits with banks | $ | 46,588 | $ | 345 | 2.93 | % | $ | 47,783 | $ | 267 | 2.24 | % | $ | 117,602 | $ | 320 | 1.08 | % | |||||||||||||||
Taxable investment securities (2) | 5,310,719 | 30,467 | 2.29 | 5,218,200 | 28,995 | 2.22 | 4,913,122 | 24,763 | 2.02 | ||||||||||||||||||||||||
Non-taxable investment securities (1) | 1,030,743 | 9,090 | 3.53 | 995,704 | 8,727 | 3.51 | 812,305 | 8,515 | 4.19 | ||||||||||||||||||||||||
Loans held for sale | 47,846 | 723 | 6.03 | 46,667 | 767 | 6.58 | 139,693 | 2,091 | 5.97 | ||||||||||||||||||||||||
Loans and leases (1) (3) | 21,774,929 | 260,590 | 4.75 | 21,445,030 | 258,680 | 4.84 | 20,654,316 | 232,998 | 4.48 | ||||||||||||||||||||||||
Total Interest Earning Assets (1) | 28,210,825 | 301,215 | 4.24 | 27,753,384 | 297,436 | 4.30 | 26,637,038 | 268,687 | 4.01 | ||||||||||||||||||||||||
Cash and due from banks | 367,764 | 359,714 | 374,542 | ||||||||||||||||||||||||||||||
Allowance for credit losses | (180,387 | ) | (182,598 | ) | (169,283 | ) | |||||||||||||||||||||||||||
Premises and equipment | 323,682 | 331,739 | 334,870 | ||||||||||||||||||||||||||||||
Other assets | 3,680,919 | 3,685,512 | 3,733,497 | ||||||||||||||||||||||||||||||
Total Assets | $ | 32,402,803 | $ | 31,947,751 | $ | 30,910,664 | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 9,324,789 | 16,492 | 0.70 | $ | 9,287,811 | 13,691 | 0.59 | $ | 9,376,003 | 9,338 | 0.40 | |||||||||||||||||||||
Savings | 2,573,673 | 1,636 | 0.25 | 2,620,084 | 1,490 | 0.24 | 2,480,626 | 792 | 0.13 | ||||||||||||||||||||||||
Certificates and other time | 5,256,660 | 20,047 | 1.51 | 4,811,842 | 15,868 | 1.30 | 3,812,916 | 8,857 | 0.92 | ||||||||||||||||||||||||
Short-term borrowings | 3,863,563 | 19,576 | 2.00 | 4,098,161 | 18,409 | 1.79 | 4,394,106 | 14,387 | 1.29 | ||||||||||||||||||||||||
Long-term borrowings | 627,524 | 5,277 | 3.34 | 650,562 | 5,304 | 3.27 | 658,495 | 4,909 | 2.96 | ||||||||||||||||||||||||
Total Interest Bearing Liabilities | 21,646,209 | 63,028 | 1.15 | 21,468,460 | 54,762 | 1.02 | 20,722,146 | 38,283 | 0.73 | ||||||||||||||||||||||||
Non-interest bearing demand deposits | 5,966,581 | 5,764,144 | 5,527,180 | ||||||||||||||||||||||||||||||
Other liabilities | 274,005 | 253,637 | 234,358 | ||||||||||||||||||||||||||||||
Total Liabilities | 27,886,795 | 27,486,241 | 26,483,684 | ||||||||||||||||||||||||||||||
Stockholders' equity | 4,516,008 | 4,461,510 | 4,426,980 | ||||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 32,402,803 | $ | 31,947,751 | $ | 30,910,664 | |||||||||||||||||||||||||||
Net Interest Earning Assets | $ | 6,564,616 | $ | 6,284,924 | $ | 5,914,892 | |||||||||||||||||||||||||||
Net Interest Income (FTE) (1) | 238,187 | 242,674 | 230,404 | ||||||||||||||||||||||||||||||
Tax Equivalent Adjustment | (3,400 | ) | (3,319 | ) | (5,173 | ) | |||||||||||||||||||||||||||
Net Interest Income | $ | 234,787 | $ | 239,355 | $ | 225,231 | |||||||||||||||||||||||||||
Net Interest Spread | 3.09 | % | 3.28 | % | 3.28 | % | |||||||||||||||||||||||||||
Net Interest Margin (1) | 3.36 | % | 3.51 | % | 3.44 | % |
(1 | ) | The net interest margin and yield on earning assets (all non-GAAP measures) are presented on a fully taxable equivalent (FTE) basis, which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 21% in 2018 and 35% in 2017 for each period presented. |
(2 | ) | The average balances and yields earned on taxable investment securities are based on historical cost. |
(3 | ) | Average balances for loans include non-accrual loans. Loans and leases consist of average total loans and leases less average unearned income. The amount of loan fees included in interest income is immaterial. |
F.N.B. Corporation | Nine Months Ended September 30, | |||||||||||||||||||||
(Unaudited) | 2018 | 2017 | ||||||||||||||||||||
(Dollars in thousands) | Interest | Average | Interest | Average | ||||||||||||||||||
Average | Earned | Yield | Average | Earned | Yield | |||||||||||||||||
Outstanding | or Paid | or Rate | Outstanding | or Paid | or Rate | |||||||||||||||||
Assets | ||||||||||||||||||||||
Interest bearing deposits with banks | $ | 65,882 | $ | 972 | 1.97 | % | $ | 97,122 | $ | 660 | 0.91 | % | ||||||||||
Federal funds sold | — | — | — | 1,509 | 9 | 0.72 | ||||||||||||||||
Taxable investment securities (2) | 5,192,707 | 86,341 | 2.22 | 4,773,606 | 72,373 | 2.02 | ||||||||||||||||
Non-taxable investment securities (1) | 992,781 | 26,095 | 3.50 | 666,469 | 20,833 | 4.17 | ||||||||||||||||
Loans held for sale | 53,404 | 2,401 | 6.00 | 82,254 | 3,960 | 6.43 | ||||||||||||||||
Loans and leases (1) (3) | 21,460,794 | 758,873 | 4.73 | 19,084,962 | 624,575 | 4.37 | ||||||||||||||||
Total Interest Earning Assets (1) | 27,765,568 | 874,682 | 4.21 | 24,705,922 | 722,410 | 3.91 | ||||||||||||||||
Cash and due from banks | 362,098 | 336,303 | ||||||||||||||||||||
Allowance for credit losses | (181,154 | ) | (165,543 | ) | ||||||||||||||||||
Premises and equipment | 330,698 | 319,901 | ||||||||||||||||||||
Other assets | 3,674,471 | 3,274,305 | ||||||||||||||||||||
Total Assets | $ | 31,951,681 | $ | 28,470,888 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand | $ | 9,333,557 | 41,637 | 0.60 | $ | 8,703,870 | 22,426 | 0.34 | ||||||||||||||
Savings | 2,576,869 | 4,164 | 0.22 | 2,495,632 | 1,954 | 0.10 | ||||||||||||||||
Certificates and other time | 4,904,114 | 49,892 | 1.36 | 3,503,637 | 23,100 | 0.88 | ||||||||||||||||
Short-term borrowings | 3,981,880 | 53,192 | 1.78 | 3,831,883 | 32,020 | 1.11 | ||||||||||||||||
Long-term borrowings | 646,229 | 15,727 | 3.25 | 625,010 | 13,343 | 2.85 | ||||||||||||||||
Total Interest Bearing Liabilities | 21,442,649 | 164,612 | 1.02 | 19,160,032 | 92,843 | 0.65 | ||||||||||||||||
Non-interest bearing demand deposits | 5,780,770 | 5,140,016 | ||||||||||||||||||||
Other liabilities | 258,685 | 225,219 | ||||||||||||||||||||
Total Liabilities | 27,482,104 | 24,525,267 | ||||||||||||||||||||
Stockholders' equity | 4,469,577 | 3,945,621 | ||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 31,951,681 | $ | 28,470,888 | ||||||||||||||||||
Net Interest Earning Assets | $ | 6,322,919 | $ | 5,545,890 | ||||||||||||||||||
Net Interest Income (FTE) (1) | 710,070 | 629,567 | ||||||||||||||||||||
Tax Equivalent Adjustment | (9,823 | ) | (13,169 | ) | ||||||||||||||||||
Net Interest Income | $ | 700,247 | $ | 616,398 | ||||||||||||||||||
Net Interest Spread | 3.19 | % | 3.26 | % | ||||||||||||||||||
Net Interest Margin (1) | 3.42 | % | 3.41 | % |
(1 | ) | The net interest margin and yield on earning assets (all non-GAAP measures) are presented on a fully taxable equivalent (FTE) basis, which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 21% in 2018 and 35% in 2017. |
(2 | ) | The average balances and yields earned on taxable investment securities are based on historical cost. |
(3 | ) | Average balances for loans include non-accrual loans. Loans and leases consist of average total loans and leases less average unearned income. The amount of loan fees included in interest income is immaterial. |
F.N.B. CORPORATION | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||
3Q18 | 2Q18 | 3Q17 | 2018 | 2017 | |||||||||||||
Performance ratios | |||||||||||||||||
Return on average equity | 8.85 | % | 7.66 | % | 6.96 | % | 8.16 | % | 5.93 | % | |||||||
Return on average tangible equity (1) | 18.86 | % | 16.66 | % | 15.39 | % | 17.68 | % | 12.79 | % | |||||||
Return on average tangible common equity (1) | 19.44 | % | 17.14 | % | 15.82 | % | 18.22 | % | 13.10 | % | |||||||
Return on average assets | 1.23 | % | 1.07 | % | 1.00 | % | 1.14 | % | 0.82 | % | |||||||
Return on average tangible assets (1) | 1.37 | % | 1.19 | % | 1.12 | % | 1.27 | % | 0.93 | % | |||||||
Net interest margin (FTE) (2) | 3.36 | % | 3.51 | % | 3.44 | % | 3.42 | % | 3.41 | % | |||||||
Yield on earning assets (FTE) (2) | 4.24 | % | 4.30 | % | 4.01 | % | 4.21 | % | 3.91 | % | |||||||
Cost of interest-bearing liabilities | 1.15 | % | 1.02 | % | 0.73 | % | 1.02 | % | 0.65 | % | |||||||
Cost of funds | 0.90 | % | 0.81 | % | 0.58 | % | 0.81 | % | 0.51 | % | |||||||
Efficiency ratio (1) | 53.73 | % | 55.64 | % | 53.15 | % | 55.04 | % | 54.68 | % | |||||||
Effective tax rate | 18.02 | % | 19.37 | % | 29.92 | % | 18.98 | % | 28.35 | % | |||||||
Capital ratios | |||||||||||||||||
Equity / assets (period end) | 13.87 | % | 13.87 | % | 14.25 | % | |||||||||||
Common equity / assets (period end) | 13.54 | % | 13.54 | % | 13.91 | % | |||||||||||
Leverage ratio | 7.75 | % | 7.64 | % | 7.64 | % | |||||||||||
Tangible equity / tangible assets (period end) (1) | 7.25 | % | 7.14 | % | 7.24 | % | |||||||||||
Tangible common equity / tangible assets (period end) (1) | 6.89 | % | 6.79 | % | 6.87 | % | |||||||||||
Common stock data | |||||||||||||||||
Average diluted shares outstanding | 325,653,131 | 325,730,049 | 324,904,768 | 325,674,706 | 296,652,796 | ||||||||||||
Period end shares outstanding | 324,275,186 | 324,258,342 | 323,301,548 | ||||||||||||||
Book value per common share | $ | 13.62 | $ | 13.47 | $ | 13.39 | |||||||||||
Tangible book value per common share (1) | $ | 6.44 | $ | 6.26 | $ | 6.12 | |||||||||||
Dividend payout ratio (common) | 39.71 | % | 47.13 | % | 51.56 | % | 44.05 | % | 61.27 | % |
(1 | ) | See non-GAAP financial measures section of this Press Release for additional information relating to the calculation of this item. |
(2 | ) | The net interest margin and yield on earning assets (all non-GAAP measures) are presented on a fully taxable equivalent (FTE) basis, which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 21% in 2018 and 35% in 2017. |
F.N.B. CORPORATION | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Percent Variance | ||||||||||||||||||||||||||||
3Q18 | 3Q18 | |||||||||||||||||||||||||||
3Q18 | 2Q18 | 3Q17 | 2Q18 | 3Q17 | ||||||||||||||||||||||||
Balances at period end | ||||||||||||||||||||||||||||
Loans and Leases: | ||||||||||||||||||||||||||||
Commercial real estate | $ | 8,845,740 | $ | 8,834,322 | $ | 8,822,023 | 0.1 | 0.3 | ||||||||||||||||||||
Commercial and industrial | 4,363,457 | 4,301,387 | 3,980,584 | 1.4 | 9.6 | |||||||||||||||||||||||
Commercial leases | 346,579 | 337,397 | 238,724 | 2.7 | 45.2 | |||||||||||||||||||||||
Other | 34,732 | 43,351 | 39,798 | (19.9 | ) | (12.7 | ) | |||||||||||||||||||||
Commercial loans and leases | 13,590,508 | 13,516,457 | 13,081,129 | 0.5 | 3.9 | |||||||||||||||||||||||
Direct installment | 1,778,123 | 1,892,080 | 1,925,995 | (6.0 | ) | (7.7 | ) | |||||||||||||||||||||
Residential mortgages | 2,984,662 | 2,850,970 | 2,609,663 | 4.7 | 14.4 | |||||||||||||||||||||||
Indirect installment | 1,880,649 | 1,746,509 | 1,431,273 | 7.7 | 31.4 | |||||||||||||||||||||||
Consumer LOC | 1,605,461 | 1,653,566 | 1,769,376 | (2.9 | ) | (9.3 | ) | |||||||||||||||||||||
Consumer loans | 8,248,895 | 8,143,125 | 7,736,307 | 1.3 | 6.6 | |||||||||||||||||||||||
Total loans and leases | $ | 21,839,403 | $ | 21,659,582 | $ | 20,817,436 | 0.8 | 4.9 | ||||||||||||||||||||
Percent Variance | ||||||||||||||||||||||||||||
Average balances | 3Q18 | 3Q18 | For the Nine Months Ended September 30, | % | ||||||||||||||||||||||||
Loans and Leases: | 3Q18 | 2Q18 | 3Q17 | 2Q18 | 3Q17 | 2018 | 2017 | Var. | ||||||||||||||||||||
Commercial real estate | $ | 8,824,269 | $ | 8,824,628 | $ | 8,779,426 | — | 0.5 | $ | 8,823,898 | $ | 7,912,199 | 11.5 | |||||||||||||||
Commercial and industrial | 4,332,422 | 4,290,678 | 3,945,756 | 1.0 | 9.8 | 4,278,870 | 3,707,970 | 15.4 | ||||||||||||||||||||
Commercial leases | 341,125 | 287,796 | 231,030 | 18.5 | 47.7 | 300,657 | 209,074 | 43.8 | ||||||||||||||||||||
Other | 46,800 | 51,203 | 43,354 | (8.6 | ) | 7.9 | 48,389 | 47,115 | 2.7 | |||||||||||||||||||
Commercial loans and leases | 13,544,616 | 13,454,305 | 12,999,566 | 0.7 | 4.2 | 13,451,814 | 11,876,358 | 13.3 | ||||||||||||||||||||
Direct installment | 1,855,193 | 1,880,657 | 1,937,394 | (1.4 | ) | (4.2 | ) | 1,873,277 | 1,921,129 | (2.5 | ) | |||||||||||||||||
Residential mortgages | 2,914,294 | 2,813,829 | 2,535,398 | 3.6 | 14.9 | 2,817,826 | 2,307,958 | 22.1 | ||||||||||||||||||||
Indirect installment | 1,830,418 | 1,625,344 | 1,406,318 | 12.6 | 30.2 | 1,644,561 | 1,315,170 | 25.0 | ||||||||||||||||||||
Consumer LOC | 1,630,408 | 1,670,895 | 1,775,640 | (2.4 | ) | (8.2 | ) | 1,673,316 | 1,664,347 | 0.5 | ||||||||||||||||||
Consumer loans | 8,230,313 | 7,990,725 | 7,654,750 | 3.0 | 7.5 | 8,008,980 | 7,208,604 | 11.1 | ||||||||||||||||||||
Total loans and leases | $ | 21,774,929 | $ | 21,445,030 | $ | 20,654,316 | 1.5 | 5.4 | $ | 21,460,794 | $ | 19,084,962 | 12.4 |
F.N.B. CORPORATION | |||||||||||||||||
(Unaudited) | Percent Variance | ||||||||||||||||
(Dollars in thousands) | 3Q18 | 3Q18 | |||||||||||||||
Asset Quality Data | 3Q18 | 2Q18 | 3Q17 | 2Q18 | 3Q17 | ||||||||||||
Non-Performing Assets | |||||||||||||||||
Non-performing loans (1) | |||||||||||||||||
Non-accrual loans | $ | 79,899 | $ | 68,696 | $ | 88,391 | 16.3 | (9.6 | ) | ||||||||
Restructured loans | 22,322 | 24,820 | 23,147 | (10.1 | ) | (3.6 | ) | ||||||||||
Non-performing loans | 102,221 | 93,516 | 111,538 | 9.3 | (8.4 | ) | |||||||||||
Other real estate owned (OREO) (2) | 35,685 | 39,240 | 35,416 | (9.1 | ) | 0.8 | |||||||||||
Total non-performing assets | $ | 137,906 | $ | 132,756 | $ | 146,954 | 3.9 | (6.2 | ) | ||||||||
Non-performing loans / total loans and leases | 0.47 | % | 0.43 | % | 0.54 | % | |||||||||||
Non-performing loans / total originated loans and leases (3) | 0.54 | % | 0.50 | % | 0.69 | % | |||||||||||
Non-performing loans + OREO / total loans and leases + OREO | 0.63 | % | 0.61 | % | 0.70 | % | |||||||||||
Non-performing loans + OREO / total originated loans and leases + OREO (3) | 0.73 | % | 0.71 | % | 0.91 | % | |||||||||||
Non-performing assets / total assets | 0.42 | % | 0.41 | % | 0.47 | % | |||||||||||
Delinquency - Originated Portfolio (3) | |||||||||||||||||
Loans 30-89 days past due | $ | 61,820 | $ | 48,305 | $ | 44,454 | 28.0 | 39.1 | |||||||||
Loans 90+ days past due | 3,972 | 7,227 | 10,278 | (45.0 | ) | (61.4 | ) | ||||||||||
Non-accrual loans | 71,936 | 59,953 | 77,784 | 20.0 | (7.5 | ) | |||||||||||
Total past due and non-accrual loans | $ | 137,728 | $ | 115,485 | $ | 132,516 | 19.3 | 3.9 | |||||||||
Total past due and non-accrual loans / total originated loans | 0.79 | % | 0.68 | % | 0.91 | % | |||||||||||
Delinquency - Acquired Portfolio (4) (5) | |||||||||||||||||
Loans 30-89 days past due | $ | 60,832 | $ | 43,474 | $ | 75,839 | 39.9 | (19.8 | ) | ||||||||
Loans 90+ days past due | 61,316 | 67,889 | 88,195 | (9.7 | ) | (30.5 | ) | ||||||||||
Non-accrual loans | 7,963 | 8,743 | 10,607 | (8.9 | ) | (24.9 | ) | ||||||||||
Total past due and non-accrual loans | $ | 130,111 | $ | 120,106 | $ | 174,641 | 8.3 | (25.5 | ) | ||||||||
Delinquency - Total Portfolio | |||||||||||||||||
Loans 30-89 days past due | $ | 122,652 | $ | 91,779 | $ | 120,293 | 33.6 | 2.0 | |||||||||
Loans 90+ days past due | 65,288 | 75,116 | 98,473 | (13.1 | ) | (33.7 | ) | ||||||||||
Non-accrual loans | 79,899 | 68,696 | 88,391 | 16.3 | (9.6 | ) | |||||||||||
Total past due and non-accrual loans | $ | 267,839 | $ | 235,591 | $ | 307,157 | 13.7 | (12.8 | ) |
(1 | ) | Does not include loans acquired at fair value ("acquired portfolio"). |
(2 | ) | Includes all other real estate owned, including those balances acquired through business combinations that have been in acquired loans prior to foreclosure. |
(3 | ) | "Originated Portfolio" or "Originated Loans and Leases" equals loans and leases not included by definition in the Acquired Portfolio. |
(4 | ) | "Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805. The risk of credit loss on these loans has been considered by virtue of our estimate of acquisition-date fair value and these loans are considered accruing as we primarily recognize interest income through accretion of the difference between the carrying value of these loans and their expected cash flows. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting and then to any allowance for credit losses recognized subsequent to acquisition. |
(5 | ) | Represents contractual balances. |
F.N.B. CORPORATION | ||||||||||||||||||||||||||||
(Unaudited) | Percent Variance | |||||||||||||||||||||||||||
(Dollars in thousands) | 3Q18 | 3Q18 | For the Nine Months Ended September 30, | % | ||||||||||||||||||||||||
Allowance Rollforward | 3Q18 | 2Q18 | 3Q17 | 2Q18 | 3Q17 | 2018 | 2017 | Var. | ||||||||||||||||||||
Allowance for Credit Losses - Originated Portfolio (2) | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 172,615 | $ | 172,410 | $ | 159,092 | 0.1 | 8.5 | $ | 168,682 | $ | 150,791 | 11.9 | |||||||||||||||
Provision for credit losses | 14,853 | 15,036 | 17,175 | (1.2 | ) | (13.5 | ) | 44,659 | 46,050 | (3.0 | ) | |||||||||||||||||
Net loan charge-offs | (14,157 | ) | (14,831 | ) | (13,033 | ) | (4.5 | ) | 8.6 | (40,030 | ) | (33,607 | ) | 19.1 | ||||||||||||||
Allowance for credit losses - originated portfolio (2) | $ | 173,311 | $ | 172,615 | $ | 163,234 | 0.4 | 6.2 | $ | 173,311 | $ | 163,234 | 6.2 | |||||||||||||||
Allowance for credit losses (originated loans and leases) / total originated loans and leases (2) | 1.00 | % | 1.02 | % | 1.12 | % | ||||||||||||||||||||||
Allowance for credit losses (originated loans and leases) / total non-performing loans (1) | 183.87 | % | 203.62 | % | 161.73 | % | ||||||||||||||||||||||
Net loan charge-offs on originated loans and leases (annualized) / total average originated loans and leases (2) | 0.33 | % | 0.36 | % | 0.37 | % | 0.33 | % | 0.33 | % | ||||||||||||||||||
Allowance for Credit Losses - Acquired Portfolio (3) | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,959 | $ | 6,837 | $ | 6,607 | (42.1 | ) | (40.1 | ) | $ | 6,698 | $ | 7,268 | (7.8 | ) | ||||||||||||
Provision for credit losses | 1,122 | 518 | (407 | ) | 116.6 | (375.7 | ) | 1,365 | (1,676 | ) | (181.4 | ) | ||||||||||||||||
Net loan (charge-offs)/recoveries | (511 | ) | (3,396 | ) | 582 | (85.0 | ) | (187.8 | ) | (3,493 | ) | 1,190 | (393.5 | ) | ||||||||||||||
Allowance for credit losses - acquired portfolio (3) | $ | 4,570 | $ | 3,959 | $ | 6,782 | 15.4 | (32.6 | ) | $ | 4,570 | $ | 6,782 | (32.6 | ) | |||||||||||||
Allowance for Credit Losses - Total Portfolio | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 176,574 | $ | 179,247 | $ | 165,699 | (1.5 | ) | 6.6 | $ | 175,380 | $ | 158,059 | 11.0 | ||||||||||||||
Provision for credit losses | 15,975 | 15,554 | 16,768 | 2.7 | (4.7 | ) | 46,024 | 44,374 | 3.7 | |||||||||||||||||||
Net loan (charge-offs)/recoveries | (14,668 | ) | (18,227 | ) | (12,451 | ) | (19.5 | ) | 17.8 | (43,523 | ) | (32,417 | ) | 34.3 | ||||||||||||||
Total allowance for credit losses | $ | 177,881 | $ | 176,574 | $ | 170,016 | 0.7 | 4.6 | $ | 177,881 | $ | 170,016 | 4.6 | |||||||||||||||
Allowance for credit losses / total loans and leases | 0.81 | % | 0.82 | % | 0.82 | % | ||||||||||||||||||||||
Net loan charge-offs (annualized) / total average loans and leases | 0.27 | % | 0.34 | % | 0.24 | % | 0.27 | % | 0.23 | % |
(1 | ) | Does not include loans acquired at fair value ("acquired portfolio"). |
(2 | ) | "Originated Portfolio" or "Originated Loans and Leases" equals loans and leases not included by definition in the Acquired Portfolio. |
(3 | ) | "Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805. The risk of credit loss on these loans has been considered by virtue of our estimate of acquisition-date fair value and these loans are considered accruing as we primarily recognize interest income through accretion of the difference between the carrying value of these loans and their expected cash flows. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting and then to any allowance for credit losses recognized subsequent to acquisition. |
F.N.B. CORPORATION | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS TO GAAP | |||||||||||||||||||||||||
We believe the following non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The non-GAAP financial measures we use may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with U.S. GAAP. The following tables summarize the non-GAAP financial measures included in this press release and derived from amounts reported in our financial statements. | |||||||||||||||||||||||||
% Variance | |||||||||||||||||||||||||
3Q18 | 3Q18 | For the Nine Months Ended September 30, | % | ||||||||||||||||||||||
Operating net income available to common stockholders: | 3Q18 | 2Q18 | 3Q17 | 2Q18 | 3Q17 | 2018 | 2017 | Var. | |||||||||||||||||
Net income available to common stockholders | $ | 98,753 | $ | 83,196 | $ | 75,683 | $ | 266,701 | $ | 169,048 | |||||||||||||||
Merger-related expense | — | — | 1,381 | — | 55,459 | ||||||||||||||||||||
Tax benefit of merger-related expense | — | — | (483 | ) | — | (18,481 | ) | ||||||||||||||||||
Merger-related net securities gains | — | — | — | — | (2,609 | ) | |||||||||||||||||||
Tax expense of merger-related net securities gains | — | — | — | — | 913 | ||||||||||||||||||||
Discretionary 401(k) contribution | — | 874 | — | 874 | — | ||||||||||||||||||||
Tax benefit of discretionary 401(k) contribution | — | (184 | ) | — | (184 | ) | — | ||||||||||||||||||
Gain on sale of subsidiary | (5,135 | ) | — | — | (5,135 | ) | — | ||||||||||||||||||
Tax expense of gain on sale of subsidiary | 1,078 | — | — | 1,078 | — | ||||||||||||||||||||
Branch consolidation costs | — | 6,616 | — | 6,616 | — | ||||||||||||||||||||
Tax benefit of branch consolidation costs | — | (1,389 | ) | — | (1,389 | ) | — | ||||||||||||||||||
Operating net income available to common stockholders (non-GAAP) | $ | 94,696 | $ | 89,113 | $ | 76,581 | 6.3 | 23.7 | $ | 268,561 | $ | 204,330 | 31.4 | ||||||||||||
Operating earnings per diluted common share: | |||||||||||||||||||||||||
Earnings per diluted common share | $ | 0.30 | $ | 0.26 | $ | 0.23 | $ | 0.82 | $ | 0.57 | |||||||||||||||
Merger-related expense | — | — | 0.01 | — | 0.19 | ||||||||||||||||||||
Tax benefit of merger-related expense | — | — | — | — | (0.06 | ) | |||||||||||||||||||
Merger-related net securities gains | — | — | — | — | (0.01 | ) | |||||||||||||||||||
Tax expense of merger-related net securities gains | — | — | — | — | — | ||||||||||||||||||||
Discretionary 401(k) contribution | — | — | — | — | — | ||||||||||||||||||||
Tax benefit of discretionary 401(k) contribution | — | — | — | — | — | ||||||||||||||||||||
Gain on sale of subsidiary | (0.02 | ) | — | — | (0.02 | ) | — | ||||||||||||||||||
Tax expense of gain on sale of subsidiary | 0.01 | — | — | 0.01 | — | ||||||||||||||||||||
Branch consolidation costs | — | 0.02 | — | 0.02 | — | ||||||||||||||||||||
Tax benefit of branch consolidation costs | — | (0.01 | ) | — | (0.01 | ) | — | ||||||||||||||||||
Operating earnings per diluted common share (non-GAAP) | $ | 0.29 | $ | 0.27 | $ | 0.24 | 7.4 | 20.8 | $ | 0.82 | $ | 0.69 | 18.8 |
F.N.B. CORPORATION | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except per share data) | For the Nine Months Ended September 30, | ||||||||||||||||||
3Q18 | 2Q18 | 3Q17 | 2018 | 2017 | |||||||||||||||
Return on average tangible equity: | |||||||||||||||||||
Net income (annualized) | $ | 399,766 | $ | 341,762 | $ | 308,237 | $ | 364,640 | $ | 234,078 | |||||||||
Amortization of intangibles, net of tax (annualized) | 11,926 | 12,077 | 12,392 | 12,499 | 11,051 | ||||||||||||||
Tangible net income (annualized) (non-GAAP) | $ | 411,692 | $ | 353,839 | $ | 320,629 | $ | 377,139 | $ | 245,129 | |||||||||
Average total stockholders' equity | $ | 4,516,008 | $ | 4,461,510 | $ | 4,426,980 | $ | 4,469,577 | $ | 3,945,621 | |||||||||
Less: Average intangibles (1) | (2,332,926 | ) | (2,337,249 | ) | (2,344,077 | ) | (2,336,627 | ) | (2,028,377 | ) | |||||||||
Average tangible stockholders' equity (non-GAAP) | $ | 2,183,082 | $ | 2,124,261 | $ | 2,082,903 | $ | 2,132,950 | $ | 1,917,244 | |||||||||
Return on average tangible equity (non-GAAP) | 18.86 | % | 16.66 | % | 15.39 | % | 17.68 | % | 12.79 | % | |||||||||
Return on average tangible common equity: | |||||||||||||||||||
Net income available to common stockholders (annualized) | $ | 391,790 | $ | 333,699 | $ | 300,266 | $ | 356,579 | $ | 226,017 | |||||||||
Amortization of intangibles, net of tax (annualized) | 11,926 | 12,077 | 12,392 | 12,499 | 11,051 | ||||||||||||||
Tangible net income available to common stockholders (annualized) (non-GAAP) | $ | 403,716 | $ | 345,776 | $ | 312,658 | $ | 369,078 | $ | 237,068 | |||||||||
Average total stockholders' equity | $ | 4,516,008 | $ | 4,461,510 | $ | 4,426,980 | $ | 4,469,577 | $ | 3,945,621 | |||||||||
Less: Average preferred stockholders' equity | (106,882 | ) | (106,882 | ) | (106,882 | ) | (106,882 | ) | (106,882 | ) | |||||||||
Less: Average intangibles (1) | (2,332,926 | ) | (2,337,249 | ) | (2,344,077 | ) | (2,336,627 | ) | (2,028,377 | ) | |||||||||
Average tangible common equity (non-GAAP) | $ | 2,076,200 | $ | 2,017,379 | $ | 1,976,021 | $ | 2,026,068 | $ | 1,810,362 | |||||||||
Return on average tangible common equity (non-GAAP) | 19.44 | % | 17.14 | % | 15.82 | % | 18.22 | % | 13.10 | % | |||||||||
Return on average tangible assets: | |||||||||||||||||||
Net income (annualized) | $ | 399,766 | $ | 341,762 | $ | 308,237 | $ | 364,640 | $ | 234,078 | |||||||||
Amortization of intangibles, net of tax (annualized) | 11,926 | 12,077 | 12,392 | 12,499 | 11,051 | ||||||||||||||
Tangible net income (annualized) (non-GAAP) | $ | 411,692 | $ | 353,839 | $ | 320,629 | $ | 377,139 | $ | 245,129 | |||||||||
Average total assets | $ | 32,402,803 | $ | 31,947,751 | $ | 30,910,664 | $ | 31,951,681 | $ | 28,470,888 | |||||||||
Less: Average intangibles (1) | (2,332,926 | ) | (2,337,249 | ) | (2,344,077 | ) | (2,336,627 | ) | (2,028,377 | ) | |||||||||
Average tangible assets (non-GAAP) | $ | 30,069,877 | $ | 29,610,502 | $ | 28,566,587 | $ | 29,615,054 | $ | 26,442,511 | |||||||||
Return on average tangible assets (non-GAAP) | 1.37 | % | 1.19 | % | 1.12 | % | 1.27 | % | 0.93 | % | |||||||||
Tangible book value per common share: | |||||||||||||||||||
Total stockholders' equity | $ | 4,524,864 | $ | 4,473,242 | $ | 4,435,921 | |||||||||||||
Less: preferred stockholders' equity | (106,882 | ) | (106,882 | ) | (106,882 | ) | |||||||||||||
Less: intangibles (1) | (2,329,830 | ) | (2,335,445 | ) | (2,351,707 | ) | |||||||||||||
Tangible common equity (non-GAAP) | $ | 2,088,152 | $ | 2,030,915 | $ | 1,977,332 | |||||||||||||
Common shares outstanding | 324,275,186 | 324,258,342 | 323,301,548 | ||||||||||||||||
Tangible book value per common share (non-GAAP) | $ | 6.44 | $ | 6.26 | $ | 6.12 | |||||||||||||
(1) Excludes loan servicing rights |
F.N.B. CORPORATION | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | For the Nine Months Ended September 30, | ||||||||||||||||||
3Q18 | 2Q18 | 3Q17 | 2018 | 2017 | |||||||||||||||
Tangible equity / tangible assets (period end): | |||||||||||||||||||
Total stockholders' equity | $ | 4,524,864 | $ | 4,473,242 | $ | 4,435,921 | |||||||||||||
Less: intangibles (1) | (2,329,830 | ) | (2,335,445 | ) | (2,351,707 | ) | |||||||||||||
Tangible equity (non-GAAP) | $ | 2,195,034 | $ | 2,137,797 | $ | 2,084,214 | |||||||||||||
Total assets | $ | 32,617,595 | $ | 32,257,563 | $ | 31,123,295 | |||||||||||||
Less: intangibles (1) | (2,329,830 | ) | (2,335,445 | ) | (2,351,707 | ) | |||||||||||||
Tangible assets (non-GAAP) | $ | 30,287,765 | $ | 29,922,118 | $ | 28,771,588 | |||||||||||||
Tangible equity / tangible assets (period end) (non-GAAP) | 7.25 | % | 7.14 | % | 7.24 | % | |||||||||||||
Tangible common equity / tangible assets (period end): | |||||||||||||||||||
Total stockholders' equity | $ | 4,524,864 | $ | 4,473,242 | $ | 4,435,921 | |||||||||||||
Less: preferred stockholders' equity | (106,882 | ) | (106,882 | ) | (106,882 | ) | |||||||||||||
Less: intangibles(1) | (2,329,830 | ) | (2,335,445 | ) | (2,351,707 | ) | |||||||||||||
Tangible common equity (non-GAAP) | $ | 2,088,152 | $ | 2,030,915 | $ | 1,977,332 | |||||||||||||
Total assets | $ | 32,617,595 | $ | 32,257,563 | $ | 31,123,295 | |||||||||||||
Less: intangibles (1) | (2,329,830 | ) | (2,335,445 | ) | (2,351,707 | ) | |||||||||||||
Tangible assets (non-GAAP) | $ | 30,287,765 | $ | 29,922,118 | $ | 28,771,588 | |||||||||||||
Tangible common equity / tangible assets (period end) (non-GAAP) | 6.89 | % | 6.79 | % | 6.87 | % | |||||||||||||
KEY PERFORMANCE INDICATORS | |||||||||||||||||||
Efficiency ratio (FTE): | |||||||||||||||||||
Total non-interest expense | $ | 170,729 | $ | 183,013 | $ | 163,743 | $ | 524,825 | $ | 515,012 | |||||||||
Less: amortization of intangibles | (3,805 | ) | (3,811 | ) | (4,805 | ) | (11,834 | ) | (12,716 | ) | |||||||||
Less: OREO expense | (1,492 | ) | (2,233 | ) | (1,421 | ) | (5,092 | ) | (3,412 | ) | |||||||||
Less: merger-related expense | — | — | (1,381 | ) | — | (55,459 | ) | ||||||||||||
Less: discretionary 401(k) contribution | — | (874 | ) | — | (874 | ) | — | ||||||||||||
Less: branch consolidation costs | — | (2,939 | ) | — | (2,939 | ) | — | ||||||||||||
Adjusted non-interest expense | $ | 165,432 | $ | 173,156 | $ | 156,136 | $ | 504,086 | $ | 443,425 | |||||||||
Net interest income | $ | 234,787 | $ | 239,355 | $ | 225,231 | $ | 700,247 | $ | 616,398 | |||||||||
Taxable equivalent adjustment | 3,400 | 3,319 | 5,173 | 9,823 | 13,169 | ||||||||||||||
Non-interest income | 74,834 | 64,889 | 66,151 | 207,226 | 187,345 | ||||||||||||||
Less: net securities gains | — | (31 | ) | (2,777 | ) | (31 | ) | (5,895 | ) | ||||||||||
Less: gain on sale of subsidiary | (5,135 | ) | — | — | (5,135 | ) | — | ||||||||||||
Add: branch consolidation costs | — | 3,677 | — | 3,677 | — | ||||||||||||||
Adjusted net interest income (FTE) + non-interest income | $ | 307,886 | $ | 311,209 | $ | 293,778 | $ | 915,807 | $ | 811,017 | |||||||||
Efficiency ratio (FTE) (non-GAAP) | 53.73 | % | 55.64 | % | 53.15 | % | 55.04 | % | 54.68 | % | |||||||||
(1) Excludes loan servicing rights |