F.N.B. CORPORATION |
(Exact name of registrant as specified in its charter) |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) | ||||
(Address of Principal Executive Offices) | (Zip Code) |
(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)) |
Title of Each Class | Trading Symbol(s) | Name of Exchange on which Registered | ||
share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
99.1 | ||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
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 $1.0 billion, or 4.4%, with average commercial loan growth of $789 million, or 5.8%, and average consumer loan growth of $164 million, or 2.0%. |
• | Total average deposits grew $1.0 billion, or 4.2%, including an increase in average non-interest-bearing deposits of $241 million, or 4.0%, an increase in interest-bearing demand deposits of $674 million, or 7.2%, and an increase in average time deposits of $94 million, or 1.8%. |
• | The loan to deposit ratio was 93.8% at September 30, 2019, compared to 92.9%. |
• | On a linked quarter basis, the net interest margin (FTE) (non-GAAP) narrowed 3 basis points to 3.17%, resulting from lower asset yields given the decline in benchmark interest rates partially offset by lower cost of funds. Compared to the third quarter of 2018, the net interest margin declined 19 basis points from 3.36%, attributable to increased cost of funds and the sale of Regency which contributed 8 basis points to net interest margin in the third quarter of 2018. |
• | Net interest income declined 2.1%, largely attributable to the sale of Regency and increased funding costs. |
• | Non-interest income increased $5.2 million, or 6.9%. Capital markets income grew $3.6 million, or 70.8%, reflecting strong customer-related interest rate derivative activity. Mortgage banking operations income increased $3.8 million, or 63.6%, due to a $4.1 million increase in gain on sale, partially offset by a $0.3 million interest rate-related valuation adjustment on mortgage servicing rights. Insurance commissions and fees increased $1.1 million, or 22.8%, while trust income grew by $0.5 million, or 8.4%. |
• | Effective tax rate of 14.5% includes the benefit of certain renewable energy and historic tax credits realized during the quarter, compared to 18.0%. |
• | The efficiency ratio (non-GAAP) was 54.1%, compared to 53.7%. |
• | The annualized net charge-offs to total average loans ratio decreased 16 basis points to 0.11% from 0.27%, indicative of continued favorable credit quality trends and the sale of Regency. |
• | The ratio of tangible common equity to tangible assets (non-GAAP) increased 55 basis points to 7.44%. Tangible book value per common share (non-GAAP) increased $0.89, or 13.8%, to $7.33. |
Quarterly Results Summary | 3Q19 | 2Q19 | 3Q18 | |||||||||
Reported results | ||||||||||||
Net income available to common stockholders (millions) | $ | 100.7 | $ | 93.2 | $ | 98.8 | ||||||
Net income per diluted common share | 0.31 | 0.29 | 0.30 | |||||||||
Book value per common share (period-end) | 14.51 | 14.30 | 13.62 | |||||||||
Operating results (non-GAAP) | ||||||||||||
Operating net income available to common stockholders (millions) | $ | 100.7 | $ | 95.4 | $ | 94.7 | ||||||
Operating net income per diluted common share | 0.31 | 0.29 | 0.29 | |||||||||
Tangible common equity to tangible assets (period-end) | 7.44 | % | 7.32 | % | 6.89 | % | ||||||
Tangible book value per common share (period-end) | $ | 7.33 | $ | 7.11 | $ | 6.44 | ||||||
Average Diluted Common Shares Outstanding (thousands) | 326,100 | 325,949 | 325,653 | |||||||||
Significant items impacting earnings1 (millions) | ||||||||||||
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 | — | (2.9 | ) | — | ||||||||
After-tax impact of branch consolidation costs | — | (2.3 | ) | — | ||||||||
(1) Favorable (unfavorable) impact on earnings | ||||||||||||
Year-to-Date Results Summary | 2019 | 2018 | ||||||||||
Reported results | ||||||||||||
Net income available to common stockholders (millions) | $ | 286.0 | $ | 266.7 | ||||||||
Net income per diluted common share | $ | 0.88 | $ | 0.82 | ||||||||
Operating results (non-GAAP) | ||||||||||||
Operating net income available to common stockholders (millions) | $ | 289.6 | $ | 268.6 | ||||||||
Operating net income per diluted common share | $ | 0.89 | $ | 0.82 | ||||||||
Average Diluted Common Shares Outstanding (thousands) | 325,769 | 325,675 | ||||||||||
Significant items impacting earnings1 (millions) | ||||||||||||
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 | (4.5 | ) | (6.6 | ) | ||||||||
After-tax impact of branch consolidation costs | (3.6 | ) | (5.2 | ) | ||||||||
(1) Favorable (unfavorable) impact on earnings. |
• | Our business, financial results and balance sheet values are affected by business and economic circumstances, including, but not limited to: (i) developments with respect to the U.S. and global financial markets; (ii) actions by the Federal Reserve Board, U.S. Treasury Department, Office of the Comptroller of the Currency and other governmental agencies, especially those that impact money supply, market interest rates or otherwise affect business activities of the financial services industry; (iii) a slowing or reversal of current U.S. economic expansion; and (iv) the impacts of tariffs or other trade policies of the U.S. or its global trading partners. |
• | Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards. |
• | Competition can have an impact on customer acquisition, growth and retention, and on credit spreads, deposit gathering and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and continue to respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands. |
• | Business and operating results can also be affected by widespread natural and other disasters, pandemics, dislocations, terrorist activities, system failures, security breaches, cyberattacks or international hostilities through impacts on the economy and financial markets generally, or on us or our counterparties specifically. |
• | Legal, regulatory and accounting developments could have an impact on our ability to operate and grow our businesses, financial condition, results of operations, competitive position, and reputation. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and the ability to attract and retain management. These developments could include: |
◦ | Changes resulting from legislative and regulatory reforms, including changes affecting oversight of the financial services industry, consumer protection, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles. |
◦ | Changes to regulations governing bank capital and liquidity standards. |
◦ | Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. These matters may result in monetary judgments or settlements or other remedies, including fines, penalties, restitution or alterations in our business practices, and in additional expenses and collateral costs, and may cause reputational harm to FNB. |
◦ | Results of the regulatory examination and supervision process, including our failure to satisfy requirements imposed by the federal bank regulatory agencies or other governmental agencies. |
◦ | The impact on our financial condition, results of operations, financial disclosures and future business strategies related to the upcoming implementation of the new FASB Accounting Standards Update 2016-13 Financial Instruments - Credit Losses commonly referred to as the “current expected credit loss” standard, or CECL. |
F.N.B. CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
(Unaudited) | % Variance | |||||||||||||||||||||||||||
3Q19 | 3Q19 | For the Nine Months Ended September 30, | % | |||||||||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 2Q19 | 3Q18 | 2019 | 2018 | Var. | |||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||
Loans and leases, including fees | $ | 274,127 | $ | 275,445 | $ | 259,744 | (0.5 | ) | 5.5 | $ | 818,627 | $ | 756,733 | 8.2 | ||||||||||||||
Securities: | ||||||||||||||||||||||||||||
Taxable | 30,601 | 31,740 | 30,467 | (3.6 | ) | 0.4 | 95,191 | 86,341 | 10.3 | |||||||||||||||||||
Tax-exempt | 8,086 | 8,061 | 7,259 | 0.3 | 11.4 | 24,090 | 20,813 | 15.7 | ||||||||||||||||||||
Other | 1,597 | 988 | 345 | 61.6 | 362.9 | 3,047 | 972 | 213.5 | ||||||||||||||||||||
Total Interest Income | 314,411 | 316,234 | 297,815 | (0.6 | ) | 5.6 | 940,955 | 864,859 | 8.8 | |||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||
Deposits | 56,249 | 54,417 | 38,175 | 3.4 | 47.3 | 161,043 | 95,693 | 68.3 | ||||||||||||||||||||
Short-term borrowings | 17,958 | 22,140 | 19,576 | (18.9 | ) | (8.3 | ) | 65,908 | 53,192 | 23.9 | ||||||||||||||||||
Long-term borrowings | 10,402 | 9,270 | 5,277 | 12.2 | 97.1 | 23,202 | 15,727 | 47.5 | ||||||||||||||||||||
Total Interest Expense | 84,609 | 85,827 | 63,028 | (1.4 | ) | 34.2 | 250,153 | 164,612 | 52.0 | |||||||||||||||||||
Net Interest Income | 229,802 | 230,407 | 234,787 | (0.3 | ) | (2.1 | ) | 690,802 | 700,247 | (1.3 | ) | |||||||||||||||||
Provision for credit losses | 11,910 | 11,478 | 15,975 | 3.8 | (25.4 | ) | 37,017 | 46,024 | (19.6 | ) | ||||||||||||||||||
Net Interest Income After Provision for Credit Losses | 217,892 | 218,929 | 218,812 | (0.5 | ) | (0.4 | ) | 653,785 | 654,223 | (0.1 | ) | |||||||||||||||||
Non-Interest Income | ||||||||||||||||||||||||||||
Service charges | 33,158 | 32,068 | 31,922 | 3.4 | 3.9 | 95,443 | 93,113 | 2.5 | ||||||||||||||||||||
Trust services | 6,932 | 7,018 | 6,395 | (1.2 | ) | 8.4 | 20,734 | 19,312 | 7.4 | |||||||||||||||||||
Insurance commissions and fees | 6,141 | 4,411 | 5,001 | 39.2 | 22.8 | 15,449 | 14,703 | 5.1 | ||||||||||||||||||||
Securities commissions and fees | 4,115 | 4,671 | 4,491 | (11.9 | ) | (8.4 | ) | 13,131 | 13,336 | (1.5 | ) | |||||||||||||||||
Capital markets income | 8,713 | 9,867 | 5,100 | (11.7 | ) | 70.8 | 24,616 | 16,168 | 52.3 | |||||||||||||||||||
Mortgage banking operations | 9,754 | 7,613 | 5,962 | 28.1 | 63.6 | 21,272 | 17,431 | 22.0 | ||||||||||||||||||||
Dividends on non-marketable equity securities | 4,565 | 4,135 | 3,886 | 10.4 | 17.5 | 13,723 | 11,672 | 17.6 | ||||||||||||||||||||
Bank owned life insurance | 2,720 | 3,103 | 4,399 | (12.3 | ) | (38.2 | ) | 8,664 | 10,761 | (19.5 | ) | |||||||||||||||||
Net securities gains | 35 | — | — | — | — | 35 | 31 | 12.9 | ||||||||||||||||||||
Other | 3,867 | 1,954 | 7,678 | 97.9 | (49.6 | ) | 7,158 | 10,699 | (33.1 | ) | ||||||||||||||||||
Total Non-Interest Income | 80,000 | 74,840 | 74,834 | 6.9 | 6.9 | 220,225 | 207,226 | 6.3 | ||||||||||||||||||||
Non-Interest Expense | ||||||||||||||||||||||||||||
Salaries and employee benefits | 93,598 | 94,289 | 89,535 | (0.7 | ) | 4.5 | 279,171 | 277,532 | 0.6 | |||||||||||||||||||
Net occupancy | 13,702 | 15,593 | 14,219 | (12.1 | ) | (3.6 | ) | 44,360 | 45,936 | (3.4 | ) | |||||||||||||||||
Equipment | 15,114 | 15,473 | 13,593 | (2.3 | ) | 11.2 | 45,412 | 41,241 | 10.1 | |||||||||||||||||||
Amortization of intangibles | 3,602 | 3,479 | 3,805 | 3.5 | (5.3 | ) | 10,560 | 11,834 | (10.8 | ) | ||||||||||||||||||
Outside services | 15,866 | 16,110 | 17,176 | (1.5 | ) | (7.6 | ) | 46,721 | 48,946 | (4.5 | ) | |||||||||||||||||
FDIC insurance | 5,710 | 6,013 | 8,821 | (5.0 | ) | (35.3 | ) | 17,673 | 26,822 | (34.1 | ) | |||||||||||||||||
Bank shares and franchise taxes | 3,548 | 3,130 | 3,237 | 13.4 | 9.6 | 10,145 | 9,929 | 2.2 | ||||||||||||||||||||
Other | 26,644 | 21,150 | 20,343 | 26.0 | 31.0 | 64,721 | 62,585 | 3.4 | ||||||||||||||||||||
Total Non-Interest Expense | 177,784 | 175,237 | 170,729 | 1.5 | 4.1 | 518,763 | 524,825 | (1.2 | ) | |||||||||||||||||||
Income Before Income Taxes | 120,108 | 118,532 | 122,917 | 1.3 | (2.3 | ) | 355,247 | 336,624 | 5.5 | |||||||||||||||||||
Income taxes | 17,366 | 23,345 | 22,154 | (25.6 | ) | (21.6 | ) | 63,191 | 63,893 | (1.1 | ) | |||||||||||||||||
Net Income | 102,742 | 95,187 | 100,763 | 7.9 | 2.0 | 292,056 | 272,731 | 7.1 | ||||||||||||||||||||
Preferred stock dividends | 2,010 | 2,010 | 2,010 | — | — | 6,030 | 6,030 | — | ||||||||||||||||||||
Net Income Available to Common Stockholders | $ | 100,732 | $ | 93,177 | $ | 98,753 | 8.1 | 2.0 | $ | 286,026 | $ | 266,701 | 7.2 | |||||||||||||||
Earnings per Common Share | ||||||||||||||||||||||||||||
Basic | $ | 0.31 | $ | 0.29 | $ | 0.30 | 6.9 | 3.3 | $ | 0.88 | $ | 0.82 | 7.3 | |||||||||||||||
Diluted | 0.31 | 0.29 | 0.30 | 6.9 | 3.3 | 0.88 | 0.82 | 7.3 | ||||||||||||||||||||
Cash Dividends per Common Share | 0.12 | 0.12 | 0.12 | — | — | 0.36 | 0.36 | — |
F.N.B. CORPORATION AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in millions) | % Variance | ||||||||||||||||
3Q19 | 3Q19 | ||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 2Q19 | 3Q18 | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 522 | $ | 427 | $ | 397 | 22.2 | 31.5 | |||||||||
Interest-bearing deposits with banks | 87 | 72 | 41 | 20.8 | 112.2 | ||||||||||||
Cash and Cash Equivalents | 609 | 499 | 438 | 22.0 | 39.0 | ||||||||||||
Securities available for sale | 3,262 | 3,279 | 3,299 | (0.5 | ) | (1.1 | ) | ||||||||||
Securities held to maturity | 3,192 | 3,079 | 3,206 | 3.7 | (0.4 | ) | |||||||||||
Loans held for sale | 56 | 332 | 42 | (83.1 | ) | 33.3 | |||||||||||
Loans and leases, net of unearned income | 23,070 | 22,543 | 21,840 | 2.3 | 5.6 | ||||||||||||
Allowance for credit losses | (194 | ) | (188 | ) | (178 | ) | 3.2 | 9.0 | |||||||||
Net Loans and Leases | 22,876 | 22,355 | 21,662 | 2.3 | 5.6 | ||||||||||||
Premises and equipment, net | 329 | 328 | 323 | 0.3 | 1.9 | ||||||||||||
Goodwill | 2,262 | 2,262 | 2,250 | — | 0.5 | ||||||||||||
Core deposit and other intangible assets, net | 71 | 74 | 80 | (4.1 | ) | (11.3 | ) | ||||||||||
Bank owned life insurance | 542 | 539 | 534 | 0.6 | 1.5 | ||||||||||||
Other assets | 1,130 | 1,156 | 784 | (2.2 | ) | 44.1 | |||||||||||
Total Assets | $ | 34,329 | $ | 33,903 | $ | 32,618 | 1.3 | 5.2 | |||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing demand | $ | 6,292 | $ | 6,139 | $ | 6,019 | 2.5 | 4.5 | |||||||||
Interest-bearing demand | 10,654 | 9,593 | 9,520 | 11.1 | 11.9 | ||||||||||||
Savings | 2,526 | 2,515 | 2,513 | 0.4 | 0.5 | ||||||||||||
Certificates and other time deposits | 5,122 | 5,484 | 5,448 | (6.6 | ) | (6.0 | ) | ||||||||||
Total Deposits | 24,594 | 23,731 | 23,500 | 3.6 | 4.7 | ||||||||||||
Short-term borrowings | 3,144 | 3,711 | 3,679 | (15.3 | ) | (14.5 | ) | ||||||||||
Long-term borrowings | 1,340 | 1,338 | 627 | 0.1 | 113.7 | ||||||||||||
Other liabilities | 431 | 370 | 287 | 16.5 | 50.2 | ||||||||||||
Total Liabilities | 29,509 | 29,150 | 28,093 | 1.2 | 5.0 | ||||||||||||
Stockholders' Equity | |||||||||||||||||
Preferred stock | 107 | 107 | 107 | — | — | ||||||||||||
Common stock | 3 | 3 | 3 | — | — | ||||||||||||
Additional paid-in capital | 4,062 | 4,057 | 4,046 | 0.1 | 0.4 | ||||||||||||
Retained earnings | 744 | 683 | 517 | 8.9 | 43.9 | ||||||||||||
Accumulated other comprehensive loss | (69 | ) | (72 | ) | (127 | ) | (4.2 | ) | (45.7 | ) | |||||||
Treasury stock | (27 | ) | (25 | ) | (21 | ) | 8.0 | 28.6 | |||||||||
Total Stockholders' Equity | 4,820 | 4,753 | 4,525 | 1.4 | 6.5 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 34,329 | $ | 33,903 | $ | 32,618 | 1.3 | 5.2 |
F.N.B. CORPORATION AND SUBSIDIARIES | 3Q19 | 2Q19 | 3Q18 | ||||||||||||||||||||||||||||||
(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 | $ | 90,389 | $ | 1,597 | 7.01 | % | $ | 66,324 | $ | 988 | 5.97 | % | $ | 46,588 | $ | 345 | 2.93 | % | |||||||||||||||
Taxable investment securities (2) | 5,145,079 | 30,601 | 2.38 | 5,296,831 | 31,740 | 2.40 | 5,310,719 | 30,467 | 2.29 | ||||||||||||||||||||||||
Non-taxable investment securities (1) | 1,126,343 | 10,095 | 3.59 | 1,121,655 | 10,062 | 3.59 | 1,030,743 | 9,090 | 3.53 | ||||||||||||||||||||||||
Loans held for sale | 216,520 | 2,206 | 4.07 | 89,671 | 1,063 | 4.75 | 47,846 | 723 | 6.03 | ||||||||||||||||||||||||
Loans and leases (1) (3) | 22,727,470 | 273,440 | 4.78 | 22,759,878 | 275,921 | 4.86 | 21,774,929 | 260,590 | 4.75 | ||||||||||||||||||||||||
Total Interest Earning Assets (1) | 29,305,801 | 317,939 | 4.31 | 29,334,359 | 319,774 | 4.37 | 28,210,825 | 301,215 | 4.24 | ||||||||||||||||||||||||
Cash and due from banks | 388,864 | 365,824 | 367,764 | ||||||||||||||||||||||||||||||
Allowance for credit losses | (192,726 | ) | (190,182 | ) | (180,387 | ) | |||||||||||||||||||||||||||
Premises and equipment | 330,208 | 329,381 | 323,682 | ||||||||||||||||||||||||||||||
Other assets | 4,018,177 | 3,891,734 | 3,680,919 | ||||||||||||||||||||||||||||||
Total Assets | $ | 33,850,324 | $ | 33,731,116 | $ | 32,402,803 | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 9,999,164 | 26,577 | 1.05 | $ | 9,794,796 | 25,132 | 1.03 | $ | 9,324,789 | 16,492 | 0.70 | |||||||||||||||||||||
Savings | 2,540,462 | 2,299 | 0.36 | 2,519,657 | 2,163 | 0.34 | 2,573,673 | 1,636 | 0.25 | ||||||||||||||||||||||||
Certificates and other time | 5,350,198 | 27,374 | 2.03 | 5,472,936 | 27,122 | 1.99 | 5,256,660 | 20,047 | 1.51 | ||||||||||||||||||||||||
Short-term borrowings | 3,231,378 | 17,958 | 2.19 | 3,716,627 | 22,140 | 2.37 | 3,863,563 | 19,576 | 2.00 | ||||||||||||||||||||||||
Long-term borrowings | 1,338,716 | 10,401 | 3.08 | 1,082,384 | 9,270 | 3.44 | 627,524 | 5,277 | 3.34 | ||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 22,459,918 | 84,609 | 1.49 | 22,586,400 | 85,827 | 1.52 | 21,646,209 | 63,028 | 1.15 | ||||||||||||||||||||||||
Non-interest-bearing demand deposits | 6,207,299 | 6,069,106 | 5,966,581 | ||||||||||||||||||||||||||||||
Other liabilities | 380,390 | 354,885 | 274,005 | ||||||||||||||||||||||||||||||
Total Liabilities | 29,047,607 | 29,010,391 | 27,886,795 | ||||||||||||||||||||||||||||||
Stockholders' equity | 4,802,717 | 4,720,725 | 4,516,008 | ||||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 33,850,324 | $ | 33,731,116 | $ | 32,402,803 | |||||||||||||||||||||||||||
Net Interest Earning Assets | $ | 6,845,883 | $ | 6,747,959 | $ | 6,564,616 | |||||||||||||||||||||||||||
Net Interest Income (FTE) (1) | 233,330 | 233,947 | 238,187 | ||||||||||||||||||||||||||||||
Tax Equivalent Adjustment | (3,528 | ) | (3,540 | ) | (3,400 | ) | |||||||||||||||||||||||||||
Net Interest Income | $ | 229,802 | $ | 230,407 | $ | 234,787 | |||||||||||||||||||||||||||
Net Interest Spread | 2.82 | % | 2.85 | % | 3.09 | % | |||||||||||||||||||||||||||
Net Interest Margin (1) | 3.17 | % | 3.20 | % | 3.36 | % |
(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%. |
(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 AND SUBSIDIARIES | Nine Months Ended September 30, | |||||||||||||||||||||
(Unaudited) | 2019 | 2018 | ||||||||||||||||||||
(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 | $ | 70,426 | $ | 3,047 | 5.78 | % | $ | 65,882 | $ | 972 | 1.97 | % | ||||||||||
Taxable investment securities (2) | 5,294,381 | 95,191 | 2.40 | 5,192,707 | 86,341 | 2.22 | ||||||||||||||||
Non-taxable investment securities (1) | 1,118,964 | 30,076 | 3.58 | 992,781 | 26,095 | 3.50 | ||||||||||||||||
Loans held for sale | 113,721 | 3,778 | 4.43 | 53,404 | 2,401 | 6.00 | ||||||||||||||||
Loans and leases (1) (3) | 22,623,558 | 819,510 | 4.84 | 21,460,794 | 758,873 | 4.73 | ||||||||||||||||
Total Interest Earning Assets (1) | 29,221,050 | 951,602 | 4.35 | 27,765,568 | 874,682 | 4.21 | ||||||||||||||||
Cash and due from banks | 377,486 | 362,098 | ||||||||||||||||||||
Allowance for credit losses | (188,830 | ) | (181,154 | ) | ||||||||||||||||||
Premises and equipment | 330,541 | 330,698 | ||||||||||||||||||||
Other assets | 3,925,050 | 3,674,471 | ||||||||||||||||||||
Total Assets | $ | 33,665,297 | $ | 31,951,681 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand | $ | 9,816,506 | 75,272 | 1.03 | $ | 9,333,557 | 41,637 | 0.60 | ||||||||||||||
Savings | 2,523,533 | 6,532 | 0.35 | 2,576,869 | 4,164 | 0.22 | ||||||||||||||||
Certificates and other time | 5,390,266 | 79,239 | 1.97 | 4,904,114 | 49,892 | 1.36 | ||||||||||||||||
Short-term borrowings | 3,749,324 | 65,908 | 2.34 | 3,981,880 | 53,192 | 1.78 | ||||||||||||||||
Long-term borrowings | 1,030,067 | 23,202 | 3.01 | 646,229 | 15,727 | 3.25 | ||||||||||||||||
Total Interest-Bearing Liabilities | 22,509,696 | 250,153 | 1.48 | 21,442,649 | 164,612 | 1.02 | ||||||||||||||||
Non-interest-bearing demand deposits | 6,057,545 | 5,780,770 | ||||||||||||||||||||
Other liabilities | 372,276 | 258,685 | ||||||||||||||||||||
Total Liabilities | 28,939,517 | 27,482,104 | ||||||||||||||||||||
Stockholders' equity | 4,725,780 | 4,469,577 | ||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 33,665,297 | $ | 31,951,681 | ||||||||||||||||||
Net Interest Earning Assets | $ | 6,711,354 | $ | 6,322,919 | ||||||||||||||||||
Net Interest Income (FTE) (1) | 701,449 | 710,070 | ||||||||||||||||||||
Tax Equivalent Adjustment | (10,647 | ) | (9,823 | ) | ||||||||||||||||||
Net Interest Income | $ | 690,802 | $ | 700,247 | ||||||||||||||||||
Net Interest Spread | 2.87 | % | 3.19 | % | ||||||||||||||||||
Net Interest Margin (1) | 3.21 | % | 3.42 | % |
(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%. |
(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 AND SUBSIDIARIES | |||||||||||||||||
(Unaudited) | |||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 2019 | 2018 | |||||||||||||
Performance Ratios | |||||||||||||||||
Return on average equity | 8.49 | % | 8.09 | % | 8.85 | % | 8.26 | % | 8.16 | % | |||||||
Return on average tangible equity (1) | 16.98 | 16.43 | 18.86 | 16.77 | 17.68 | ||||||||||||
Return on average tangible common equity (1) | 17.41 | 16.84 | 19.44 | 17.20 | 18.22 | ||||||||||||
Return on average assets | 1.20 | 1.13 | 1.23 | 1.16 | 1.14 | ||||||||||||
Return on average tangible assets (1) | 1.33 | 1.25 | 1.37 | 1.28 | 1.27 | ||||||||||||
Net interest margin (FTE) (2) | 3.17 | 3.20 | 3.36 | 3.21 | 3.42 | ||||||||||||
Yield on earning assets (FTE) (2) | 4.31 | 4.37 | 4.24 | 4.35 | 4.21 | ||||||||||||
Cost of interest-bearing liabilities | 1.49 | 1.52 | 1.15 | 1.48 | 1.02 | ||||||||||||
Cost of funds | 1.17 | 1.20 | 0.90 | 1.17 | 0.81 | ||||||||||||
Efficiency ratio (1) | 54.11 | 54.47 | 53.73 | 54.01 | 55.04 | ||||||||||||
Effective tax rate | 14.46 | 19.70 | 18.02 | 17.79 | 18.98 | ||||||||||||
Capital Ratios | |||||||||||||||||
Equity / assets (period end) | 14.04 | 14.02 | 13.87 | ||||||||||||||
Common equity / assets (period end) | 13.73 | 13.70 | 13.54 | ||||||||||||||
Leverage ratio | 8.16 | 7.96 | 7.75 | ||||||||||||||
Tangible equity / tangible assets (period end) (1) | 7.78 | 7.66 | 7.25 | ||||||||||||||
Tangible common equity / tangible assets (period end) (1) | 7.44 | 7.32 | 6.89 | ||||||||||||||
Common Stock Data | |||||||||||||||||
Average diluted shares outstanding | 326,099,870 | 325,949,353 | 325,653,131 | 325,769,161 | 325,674,706 | ||||||||||||
Period end shares outstanding | 324,879,501 | 324,807,131 | 324,275,186 | ||||||||||||||
Book value per common share | $ | 14.51 | $ | 14.30 | $ | 13.62 | |||||||||||
Tangible book value per common share (1) | $ | 7.33 | $ | 7.11 | $ | 6.44 | |||||||||||
Dividend payout ratio (common) | 39.04 | % | 42.19 | % | 39.71 | % | 41.20 | % | 44.05 | % |
(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%. |
F.N.B. CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Percent Variance | ||||||||||||||||||||||||||||
3Q19 | 3Q19 | |||||||||||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 2Q19 | 3Q18 | ||||||||||||||||||||||||
Balances at period end | ||||||||||||||||||||||||||||
Loans and Leases: | ||||||||||||||||||||||||||||
Commercial real estate | $ | 8,916 | $ | 8,832 | $ | 8,846 | 1.0 | 0.8 | ||||||||||||||||||||
Commercial and industrial | 5,205 | 5,028 | 4,363 | 3.5 | 19.3 | |||||||||||||||||||||||
Commercial leases | 417 | 385 | 347 | 8.3 | 20.2 | |||||||||||||||||||||||
Other | 35 | 37 | 35 | (5.4 | ) | — | ||||||||||||||||||||||
Commercial loans and leases | 14,573 | 14,282 | 13,591 | 2.0 | 7.2 | |||||||||||||||||||||||
Direct installment | 1,763 | 1,758 | 1,778 | 0.3 | (0.8 | ) | ||||||||||||||||||||||
Residential mortgages | 3,300 | 3,022 | 2,985 | 9.2 | 10.6 | |||||||||||||||||||||||
Indirect installment | 1,949 | 1,968 | 1,881 | (1.0 | ) | 3.6 | ||||||||||||||||||||||
Consumer LOC | 1,485 | 1,513 | 1,605 | (1.9 | ) | (7.5 | ) | |||||||||||||||||||||
Consumer loans | 8,497 | 8,261 | 8,249 | 2.9 | 3.0 | |||||||||||||||||||||||
Total loans and leases | $ | 23,070 | $ | 22,543 | $ | 21,840 | 2.3 | 5.6 | ||||||||||||||||||||
Note: Loans held for sale were $56, $332 and $42 at 3Q19, 2Q19, and 3Q18, respectively. | ||||||||||||||||||||||||||||
Percent Variance | ||||||||||||||||||||||||||||
Average balances | 3Q19 | 3Q19 | For the Nine Months Ended September 30, | % | ||||||||||||||||||||||||
Loans and Leases: | 3Q19 | 2Q19 | 3Q18 | 2Q19 | 3Q18 | 2019 | 2018 | Var. | ||||||||||||||||||||
Commercial real estate | $ | 8,776 | $ | 8,858 | $ | 8,824 | (0.9 | ) | (0.5 | ) | $ | 8,830 | $ | 8,824 | 0.1 | |||||||||||||
Commercial and industrial | 5,117 | 4,959 | 4,333 | 3.2 | 18.1 | 4,920 | 4,279 | 15.0 | ||||||||||||||||||||
Commercial leases | 388 | 375 | 341 | 3.4 | 13.8 | 378 | 301 | 25.7 | ||||||||||||||||||||
Other | 52 | 53 | 47 | (0.6 | ) | 11.5 | 52 | 48 | 7.0 | |||||||||||||||||||
Commercial loans and leases | 14,333 | 14,245 | 13,545 | 0.6 | 5.8 | 14,180 | 13,452 | 5.4 | ||||||||||||||||||||
Direct installment | 1,758 | 1,750 | 1,855 | 0.5 | (5.3 | ) | 1,753 | 1,873 | (6.4 | ) | ||||||||||||||||||
Residential mortgages | 3,184 | 3,270 | 2,914 | (2.6 | ) | 9.2 | 3,208 | 2,818 | 13.8 | |||||||||||||||||||
Indirect installment | 1,957 | 1,964 | 1,831 | (0.3 | ) | 6.9 | 1,954 | 1,645 | 18.8 | |||||||||||||||||||
Consumer LOC | 1,495 | 1,531 | 1,630 | (2.4 | ) | (8.3 | ) | 1,529 | 1,673 | (8.6 | ) | |||||||||||||||||
Consumer loans | 8,394 | 8,515 | 8,230 | (1.4 | ) | 2.0 | 8,444 | 8,009 | 5.4 | |||||||||||||||||||
Total loans and leases | $ | 22,727 | $ | 22,760 | $ | 21,775 | (0.1 | ) | 4.4 | $ | 22,624 | $ | 21,461 | 5.4 |
F.N.B. CORPORATION AND SUBSIDIARIES | |||||||||||||||||
(Unaudited) | Percent Variance | ||||||||||||||||
(Dollars in millions) | 3Q19 | 3Q19 | |||||||||||||||
Asset Quality Data | 3Q19 | 2Q19 | 3Q18 | 2Q19 | 3Q18 | ||||||||||||
Non-Performing Assets | |||||||||||||||||
Non-performing loans (1) | |||||||||||||||||
Non-accrual loans | $ | 76 | $ | 74 | $ | 80 | 2.7 | (5.0 | ) | ||||||||
Restructured loans | 19 | 19 | 22 | — | (13.6 | ) | |||||||||||
Non-performing loans | 95 | 93 | 102 | 2.2 | (6.9 | ) | |||||||||||
Other real estate owned (OREO) (2) | 24 | 32 | 36 | (25.0 | ) | (33.3 | ) | ||||||||||
Total non-performing assets | $ | 119 | $ | 125 | $ | 138 | (4.8 | ) | (13.8 | ) | |||||||
Non-performing loans / total loans and leases | 0.41 | % | 0.41 | % | 0.47 | % | |||||||||||
Non-performing loans / total originated loans and leases (3) | 0.46 | 0.46 | 0.54 | ||||||||||||||
Non-performing loans + OREO / total loans and leases + OREO | 0.52 | 0.55 | 0.63 | ||||||||||||||
Non-performing loans + OREO / total originated loans and leases + OREO (3) | 0.56 | 0.61 | 0.73 | ||||||||||||||
Non-performing assets / total assets | 0.35 | 0.37 | 0.42 | ||||||||||||||
Delinquency - Originated Portfolio (3) | |||||||||||||||||
Loans 30-89 days past due | $ | 55 | $ | 54 | $ | 62 | 1.9 | (11.3 | ) | ||||||||
Loans 90+ days past due | 5 | 4 | 4 | 25.0 | 25.0 | ||||||||||||
Non-accrual loans | 72 | 69 | 72 | 4.3 | — | ||||||||||||
Total past due and non-accrual loans | $ | 132 | $ | 127 | $ | 138 | 3.9 | (4.3 | ) | ||||||||
Total past due and non-accrual loans / total originated loans | 0.66 | % | 0.66 | % | 0.79 | % | |||||||||||
Delinquency - Acquired Portfolio (4) (5) | |||||||||||||||||
Loans 30-89 days past due | $ | 31 | $ | 40 | $ | 61 | (22.5 | ) | (49.2 | ) | |||||||
Loans 90+ days past due | 44 | 43 | 61 | 2.3 | (27.9 | ) | |||||||||||
Non-accrual loans | 4 | 5 | 8 | (20.0 | ) | (50.0 | ) | ||||||||||
Total past due and non-accrual loans | $ | 79 | $ | 88 | $ | 130 | (10.2 | ) | (39.2 | ) | |||||||
Delinquency - Total Portfolio | |||||||||||||||||
Loans 30-89 days past due | $ | 86 | $ | 94 | $ | 123 | (8.5 | ) | (30.1 | ) | |||||||
Loans 90+ days past due | 49 | 47 | 65 | 4.3 | (24.6 | ) | |||||||||||
Non-accrual loans | 76 | 74 | 80 | 2.7 | (5.0 | ) | |||||||||||
Total past due and non-accrual loans | $ | 211 | $ | 215 | $ | 268 | (1.9 | ) | (21.3 | ) |
(1 | ) | Does not include loans acquired in a business combination at fair value ("acquired portfolio"). |
(2 | ) | Includes all other real estate owned, including those balances acquired through business combinations that have been in the acquired portfolio 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 "Loans Acquired in a Business Combination" 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 loans acquired in a business combination 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 AND SUBSIDIARIES | ||||||||||||||||||||||||||||
(Unaudited) | Percent Variance | |||||||||||||||||||||||||||
(Dollars in millions) | 3Q19 | 3Q19 | For the Nine Months Ended September 30, | % | ||||||||||||||||||||||||
Allowance Rollforward | 3Q19 | 2Q19 | 3Q18 | 2Q19 | 3Q18 | 2019 | 2018 | Var. | ||||||||||||||||||||
Allowance for Credit Losses - Originated Portfolio (2) | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 183 | $ | 177 | $ | 173 | 3.4 | 5.8 | $ | 173 | $ | 168 | 3.0 | |||||||||||||||
Provision for credit losses | 11 | 12 | 15 | (8.3 | ) | (26.7 | ) | 32 | 45 | (28.9 | ) | |||||||||||||||||
Net loan charge-offs | (5 | ) | (6 | ) | (15 | ) | (16.7 | ) | (66.7 | ) | (15 | ) | (40 | ) | (62.5 | ) | ||||||||||||
Allowance for credit losses - originated portfolio (2) | $ | 189 | $ | 183 | $ | 173 | 3.3 | 9.2 | $ | 190 | $ | 173 | 9.8 | |||||||||||||||
Allowance for credit losses (originated loans and leases) / total originated loans and leases (2) | 0.95 | % | 0.96 | % | 1.00 | % | ||||||||||||||||||||||
Allowance for credit losses (originated loans and leases) / total non-performing loans (1) | 210.22 | 210.99 | 183.87 | |||||||||||||||||||||||||
Net loan charge-offs on originated loans and leases (annualized) / total average originated loans and leases (2) | 0.11 | 0.11 | 0.33 | 0.11 | % | 0.33 | % | |||||||||||||||||||||
Allowance for Credit Losses - Acquired Portfolio (3) | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 5 | $ | 9 | $ | 4 | (44.4 | ) | 25.0 | $ | 7 | $ | 7 | — | ||||||||||||||
Provision for credit losses | 1 | (1 | ) | 1 | (200.0 | ) | — | 5 | 1 | 400.0 | ||||||||||||||||||
Net loan (charge-offs)/recoveries | (1 | ) | (3 | ) | — | (66.7 | ) | — | (8 | ) | (3 | ) | 166.7 | |||||||||||||||
Allowance for credit losses - acquired portfolio (3) | $ | 5 | $ | 5 | $ | 5 | — | — | $ | 4 | $ | 5 | (20.0 | ) | ||||||||||||||
Allowance for Credit Losses - Total Portfolio | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 188 | $ | 186 | $ | 177 | 1.1 | 6.2 | $ | 180 | $ | 175 | 2.9 | |||||||||||||||
Provision for credit losses | 12 | 11 | 16 | 9.1 | (25.0 | ) | 37 | 46 | (19.6 | ) | ||||||||||||||||||
Net loan (charge-offs)/recoveries | (6 | ) | (9 | ) | (15 | ) | (33.3 | ) | (60.0 | ) | (23 | ) | (43 | ) | (46.5 | ) | ||||||||||||
Total allowance for credit losses | $ | 194 | $ | 188 | $ | 178 | 3.2 | 9.0 | $ | 194 | $ | 178 | 9.0 | |||||||||||||||
Allowance for credit losses / total loans and leases | 0.84 | % | 0.83 | % | 0.81 | % | ||||||||||||||||||||||
Net loan charge-offs (annualized) / total average loans and leases | 0.11 | 0.16 | 0.27 | 0.14 | % | 0.27 | % |
(1 | ) | Does not include loans acquired in a business combination 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 "Loans Acquired in a Business Combination" 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 loans acquired in a business combination 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 AND SUBSIDIARIES | |||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||
3Q19 | 3Q19 | For the Nine Months Ended September 30, | % | ||||||||||||||||||||||
Operating net income available to common stockholders: | 3Q19 | 2Q19 | 3Q18 | 2Q19 | 3Q18 | 2019 | 2018 | Var. | |||||||||||||||||
Net income available to common stockholders | $ | 100,732 | $ | 93,177 | $ | 98,753 | $ | 286,026 | $ | 266,701 | |||||||||||||||
Discretionary 401(k) contribution | — | — | — | — | 874 | ||||||||||||||||||||
Tax benefit of discretionary 401(k) contribution | — | — | — | — | (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 | — | 2,871 | — | 4,505 | 6,616 | ||||||||||||||||||||
Tax benefit of branch consolidation costs | — | (603 | ) | — | (946 | ) | (1,389 | ) | |||||||||||||||||
Operating net income available to common stockholders (non-GAAP) | $ | 100,732 | $ | 95,445 | $ | 94,696 | 5.5 | 6.4 | $ | 289,585 | $ | 268,561 | 7.8 | ||||||||||||
Operating earnings per diluted common share: | |||||||||||||||||||||||||
Earnings per diluted common share | $ | 0.31 | $ | 0.29 | $ | 0.30 | $ | 0.88 | $ | 0.82 | |||||||||||||||
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 | — | 0.01 | — | 0.01 | 0.02 | ||||||||||||||||||||
Tax benefit of branch consolidation costs | — | — | — | — | (0.01 | ) | |||||||||||||||||||
Operating earnings per diluted common share (non-GAAP) | $ | 0.31 | $ | 0.29 | $ | 0.29 | 6.9 | 6.9 | $ | 0.89 | $ | 0.82 | 8.5 |
F.N.B. CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except per share data) | For the Nine Months Ended September 30, | ||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 2019 | 2018 | |||||||||||||||
Return on average tangible equity: | |||||||||||||||||||
Net income (annualized) | $ | 407,619 | $ | 381,796 | $ | 399,766 | $ | 390,478 | $ | 364,640 | |||||||||
Amortization of intangibles, net of tax (annualized) | 11,289 | 11,024 | 11,926 | 11,154 | 12,499 | ||||||||||||||
Tangible net income (annualized) (non-GAAP) | $ | 418,908 | $ | 392,820 | $ | 411,692 | $ | 401,632 | $ | 377,139 | |||||||||
Average total stockholders' equity | $ | 4,802,717 | $ | 4,720,725 | $ | 4,516,008 | $ | 4,725,780 | $ | 4,469,577 | |||||||||
Less: Average intangibles (1) | (2,335,273 | ) | (2,329,625 | ) | (2,332,926 | ) | (2,330,850 | ) | (2,336,627 | ) | |||||||||
Average tangible stockholders' equity (non-GAAP) | $ | 2,467,444 | $ | 2,391,100 | $ | 2,183,082 | $ | 2,394,930 | $ | 2,132,950 | |||||||||
Return on average tangible equity (non-GAAP) | 16.98 | % | 16.43 | % | 18.86 | % | 16.77 | % | 17.68 | % | |||||||||
Return on average tangible common equity: | |||||||||||||||||||
Net income available to common stockholders (annualized) | $ | 399,644 | $ | 373,733 | $ | 391,790 | $ | 382,416 | $ | 356,579 | |||||||||
Amortization of intangibles, net of tax (annualized) | 11,289 | 11,024 | 11,926 | 11,154 | 12,499 | ||||||||||||||
Tangible net income available to common stockholders (annualized) (non-GAAP) | $ | 410,933 | $ | 384,757 | $ | 403,716 | $ | 393,570 | $ | 369,078 | |||||||||
Average total stockholders' equity | $ | 4,802,717 | $ | 4,720,725 | $ | 4,516,008 | $ | 4,725,780 | $ | 4,469,577 | |||||||||
Less: Average preferred stockholders' equity | (106,882 | ) | (106,882 | ) | (106,882 | ) | (106,882 | ) | (106,882 | ) | |||||||||
Less: Average intangibles (1) | (2,335,273 | ) | (2,329,625 | ) | (2,332,926 | ) | (2,330,850 | ) | (2,336,627 | ) | |||||||||
Average tangible common equity (non-GAAP) | $ | 2,360,562 | $ | 2,284,218 | $ | 2,076,200 | $ | 2,288,048 | $ | 2,026,068 | |||||||||
Return on average tangible common equity (non-GAAP) | 17.41 | % | 16.84 | % | 19.44 | % | 17.20 | % | 18.22 | % | |||||||||
Return on average tangible assets: | |||||||||||||||||||
Net income (annualized) | $ | 407,619 | $ | 381,796 | $ | 399,766 | $ | 390,478 | $ | 364,640 | |||||||||
Amortization of intangibles, net of tax (annualized) | 11,289 | 11,024 | 11,926 | 11,154 | 12,499 | ||||||||||||||
Tangible net income (annualized) (non-GAAP) | $ | 418,908 | $ | 392,820 | $ | 411,692 | $ | 401,632 | $ | 377,139 | |||||||||
Average total assets | $ | 33,850,324 | $ | 33,731,116 | $ | 32,402,803 | $ | 33,665,297 | $ | 31,951,681 | |||||||||
Less: Average intangibles (1) | (2,335,273 | ) | (2,329,625 | ) | (2,332,926 | ) | (2,330,850 | ) | (2,336,627 | ) | |||||||||
Average tangible assets (non-GAAP) | $ | 31,515,051 | $ | 31,401,491 | $ | 30,069,877 | $ | 31,334,447 | $ | 29,615,054 | |||||||||
Return on average tangible assets (non-GAAP) | 1.33 | % | 1.25 | % | 1.37 | % | 1.28 | % | 1.27 | % | |||||||||
Tangible book value per common share: | |||||||||||||||||||
Total stockholders' equity | $ | 4,820,309 | $ | 4,753,189 | $ | 4,524,864 | |||||||||||||
Less: preferred stockholders' equity | (106,882 | ) | (106,882 | ) | (106,882 | ) | |||||||||||||
Less: intangibles (1) | (2,332,469 | ) | (2,336,071 | ) | (2,329,830 | ) | |||||||||||||
Tangible common equity (non-GAAP) | $ | 2,380,958 | $ | 2,310,236 | $ | 2,088,152 | |||||||||||||
Common shares outstanding | 324,879,501 | 324,807,131 | 324,275,186 | ||||||||||||||||
Tangible book value per common share (non-GAAP) | $ | 7.33 | $ | 7.11 | $ | 6.44 | |||||||||||||
(1) Excludes loan servicing rights |
F.N.B. CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | For the Nine Months Ended September 30, | ||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 2019 | 2018 | |||||||||||||||
Tangible equity / tangible assets (period end): | |||||||||||||||||||
Total stockholders' equity | $ | 4,820,309 | $ | 4,753,189 | $ | 4,524,864 | |||||||||||||
Less: intangibles (1) | (2,332,469 | ) | (2,336,071 | ) | (2,329,830 | ) | |||||||||||||
Tangible equity (non-GAAP) | $ | 2,487,840 | $ | 2,417,118 | $ | 2,195,034 | |||||||||||||
Total assets | $ | 34,328,501 | $ | 33,903,440 | $ | 32,617,595 | |||||||||||||
Less: intangibles (1) | (2,332,469 | ) | (2,336,071 | ) | (2,329,830 | ) | |||||||||||||
Tangible assets (non-GAAP) | $ | 31,996,032 | $ | 31,567,369 | $ | 30,287,765 | |||||||||||||
Tangible equity / tangible assets (period end) (non-GAAP) | 7.78 | % | 7.66 | % | 7.25 | % | |||||||||||||
Tangible common equity / tangible assets (period end): | |||||||||||||||||||
Total stockholders' equity | $ | 4,820,309 | $ | 4,753,189 | $ | 4,524,864 | |||||||||||||
Less: preferred stockholders' equity | (106,882 | ) | (106,882 | ) | (106,882 | ) | |||||||||||||
Less: intangibles(1) | (2,332,469 | ) | (2,336,071 | ) | (2,329,830 | ) | |||||||||||||
Tangible common equity (non-GAAP) | $ | 2,380,958 | $ | 2,310,236 | $ | 2,088,152 | |||||||||||||
Total assets | $ | 34,328,501 | $ | 33,903,440 | $ | 32,617,595 | |||||||||||||
Less: intangibles (1) | (2,332,469 | ) | (2,336,071 | ) | (2,329,830 | ) | |||||||||||||
Tangible assets (non-GAAP) | $ | 31,996,032 | $ | 31,567,369 | $ | 30,287,765 | |||||||||||||
Tangible common equity / tangible assets (period end) (non-GAAP) | 7.44 | % | 7.32 | % | 6.89 | % | |||||||||||||
KEY PERFORMANCE INDICATORS | |||||||||||||||||||
Efficiency ratio (FTE): | |||||||||||||||||||
Total non-interest expense | $ | 177,784 | $ | 175,237 | $ | 170,729 | $ | 518,763 | $ | 524,825 | |||||||||
Less: amortization of intangibles | (3,602 | ) | (3,479 | ) | (3,805 | ) | (10,560 | ) | (11,834 | ) | |||||||||
Less: OREO expense | (1,431 | ) | (954 | ) | (1,492 | ) | (3,454 | ) | (5,092 | ) | |||||||||
Less: discretionary 401(k) contribution | — | — | — | — | (874 | ) | |||||||||||||
Less: branch consolidation costs | — | (2,325 | ) | — | (2,783 | ) | (2,939 | ) | |||||||||||
Less: tax credit-related project impairment | (3,213 | ) | — | — | (3,213 | ) | — | ||||||||||||
Adjusted non-interest expense | $ | 169,538 | $ | 168,479 | $ | 165,432 | $ | 498,753 | $ | 504,086 | |||||||||
Net interest income | $ | 229,802 | $ | 230,407 | $ | 234,787 | $ | 690,802 | $ | 700,247 | |||||||||
Taxable equivalent adjustment | 3,528 | 3,540 | 3,400 | 10,647 | 9,823 | ||||||||||||||
Non-interest income | 80,000 | 74,840 | 74,834 | 220,225 | 207,226 | ||||||||||||||
Less: net securities gains | (35 | ) | — | — | (35 | ) | (31 | ) | |||||||||||
Less: gain on sale of subsidiary | — | — | (5,135 | ) | — | (5,135 | ) | ||||||||||||
Add: branch consolidation costs | — | 546 | — | 1,722 | 3,677 | ||||||||||||||
Adjusted net interest income (FTE) + non-interest income | $ | 313,295 | $ | 309,333 | $ | 307,886 | $ | 923,361 | $ | 915,807 | |||||||||
Efficiency ratio (FTE) (non-GAAP) | 54.11 | % | 54.47 | % | 53.73 | % | 54.01 | % | 55.04 | % | |||||||||
(1) Excludes loan servicing rights |
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