Exhibit 99.1
|
Press Release |
F.N.B. Corporation Reports Net Income of $17.2 Million for First Quarter 2011
Hermitage, PA — April 25, 2011 — F.N.B. Corporation (NYSE: FNB) today reported first quarter
2011 financial results. Net income for the first quarter of 2011 was $17.2 million, or $0.14 per
diluted share, compared to $23.5 million, or $0.21 per diluted share, in the fourth quarter of 2010
and $16.0 million, or $0.14 per diluted share, in the first quarter of 2010.
The first quarter of 2011 included merger-related costs of $2.7 million (after-tax), or $0.02 per
diluted share, and the fourth quarter of 2010 included a one-time credit to pension expense of $6.9
million (after-tax), or $0.06 per diluted share, related to amending the pension plan. These items
reduced net income for the first quarter from $19.9 million, or $0.16 per diluted share, and
increased net income for the fourth quarter from $16.7 million, or $0.15 per diluted share,
respectively.
“We are very pleased with the first quarter’s results. The quarter included increased revenue,
good levels of organic growth in loans, deposits and customer repurchase agreements, an expanded
net interest margin and continued good credit quality results,” said Stephen J. Gurgovits, Chief
Executive Officer of F.N.B. Corporation. “Results of $0.16 per diluted share, before the
merger-related costs, show nice growth and are an excellent start to 2011.”
F.N.B. Corporation’s performance ratios this quarter were as follows: return on average tangible
equity (non-GAAP measure) was 13.93%; return on average equity was 6.17%; return on average
tangible assets (non-GAAP measure) was 0.82% and return on average assets was 0.72%. A
reconciliation of GAAP measures to non-GAAP measures is included in the tables that accompany this
press release.
Mr. Gurgovits continued, “We sincerely welcome the customers, employees and shareholders of Comm
Bancorp, Inc. to the F.N.B. family and are pleased to have expanded our presence in northeast
Pennsylvania this year.”
First Quarter Results (all comparisons refer to the prior quarter, except as noted)
Net Interest Income
Net interest income on a fully taxable equivalent basis totaled $79.2 million in the first quarter
of 2011, increasing 6.3%, reflecting the benefits of 7.0% growth in average earning assets
and a 4 basis point expansion of the net interest margin. The growth in average earning assets
reflects the addition of Comm Bancorp, Inc. and continued organic loan growth. The net interest
margin expanded to 3.81% from 3.77%, due to a combination of a lower cost of deposits driven by
continued enhancements of the funding mix and pricing actions.
Average loans for the first quarter totaled $6.5 billion and increased 8.2% due to a combination of
loans added in the Comm Bancorp, Inc. transaction ($413.2 million) and solid organic growth of
$81.6 million or 5.5% annualized. The Pennsylvania commercial portfolio was the primary
contributor to organic growth, with average loans for this portfolio growing $82.1 million, or
10.7% annualized, primarily due to continued market share gains throughout our footprint. Total
consumer loans remained essentially flat on an organic basis reflecting normal seasonally lower
growth in the first quarter of the year.
“The quarter’s organic loan growth demonstrates our commitment to building on our strong 2010
momentum as this quarter marks the eighth consecutive quarter of organic growth for our
Pennsylvania commercial loan portfolio and the seventh consecutive quarter of organic growth for
total loans,” said Mr. Gurgovits.
Average deposits and customer repurchase agreements totaled $7.9 billion and increased 8.0% in the
first quarter due to a combination of deposits added in the Comm Bancorp, Inc. acquisition ($568.6
million) and organic growth of $55.1 million or 4.3% annualized in relationship-based transaction
deposits and customer repurchase agreements. Partially offsetting this growth was a continued
managed decline in higher-cost time deposits given FNB’s overall liquidity position. As of March
31, 2011, FNB’s total customer based-funding was 96.1% of total deposits and borrowings.
Non-Interest Income
Non-interest income totaled $28.4 million in the first quarter of 2011, compared to $29.5 million,
as growth in several fee revenue categories was offset by the normal seasonal effects on service
charge revenue and lower realized gains.
The first quarter of 2011 included growth of 14.8% in securities commissions due to increased
financial consultant and platform activity and a 12.8% increase in trust income reflecting
initiatives to grow revenue and improved market conditions. Additionally, insurance commissions
and fees increased 12.7% due to seasonally higher contingent fee revenue. Offsetting these
increases were reduced mortgage-related gains as first quarter originations were lower and reduced
other non-interest income as a result of $0.9 million in gains recorded at F.N.B. Capital
Corporation in the fourth quarter of 2010.
Non-Interest Expense
Non-interest expense totaled $74.6 million in the first quarter of 2011 compared to $58.3 million.
The first quarter of 2011 included $4.1 million in merger-related costs and the fourth quarter of
2010 included a $10.5 million one-time credit to pension expense due to a plan
amendment. Adjusting for these items, non-interest expense would have increased in the first
quarter by $1.5 million, or 9.1% annualized, primarily driven by Comm Bancorp, Inc.-related
operating costs and seasonally higher personnel and occupancy costs.
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Credit Quality
“We are pleased with the credit quality results for the first quarter, with the Pennsylvania and
Regency loan portfolios both continuing to perform very well. The Florida portfolio, the focus of
which remains the land-related portfolio, performed within our expectations as we continued to
reduce our exposure,” remarked Mr. Gurgovits.
Credit metrics for the first quarter have been influenced by the closing of the Comm Bancorp, Inc.
acquisition on January 1, 2011. The impact to overall credit quality results is consistent with
management’s initial estimates derived in the due diligence process.
The provision for loan losses equaled $8.2 million for the first quarter of 2011, a $2.6 million
reduction with improvements seen in all portfolios. Net loan charge-offs for the first quarter
improved to 0.42% annualized of average loans, the lowest level since the third quarter of 2008.
At March 31, 2011, the ratio of the allowance for loan losses to total loans was 1.64% and the
entire 10 basis point decrease was due to the accounting treatment required for loans acquired in
connection with the Comm Bancorp, Inc. acquisition. Absent the acquisition, the ratio of the
allowance for loan losses to total loans would have remained unchanged at 1.74%. The ratio of
non-performing loans and other real estate owned (OREO) to total non-performing loans and OREO
improved 20 basis points to 2.54% at March 31, 2011.
The Pennsylvania loan portfolio’s credit quality metrics for the first quarter of 2011 reflect
continued solid performance. The Pennsylvania loan portfolio totaled $6.2 billion at March 31,
2011, representing 95% of the total loan portfolio. Charge-off performance continues to be very
good, with net charge-offs for the first quarter totaling $4.1 million or 0.27% annualized of
average loans, compared to 0.36% for the full year of 2010. The portfolio continues to be well
reserved, with a 1.34% ratio of the allowance for loan losses to total loans. With the acquisition
of Comm Bancorp, Inc., the ratio of the allowance for loan losses plus the recorded credit mark for
the acquired portfolio to total loans plus the credit mark equaled 1.76% at March 31, 2011
(non-GAAP measure).
The Florida loan portfolio totaled $185.1 million at March 31, 2011 (2.8% of the total loan
portfolio) and performed within our expectations. During the first quarter, a $3.4 condominium
project held in OREO was sold for a slight recovery, and was the primary contributor of the $4.9
million decrease in Florida non-performing loans and OREO (charge-offs of $1.1 million and payments
received contributed to the remainder of the decrease).
Capital Position
The Corporation’s capital ratios continue to exceed federal bank regulatory agency “well
capitalized” thresholds. The slightly lower levels compared to the prior quarter are a result of
the acquisition completed on January 1, 2011 and are consistent with management’s initial
estimates. The acquisition resulted in total consideration of $75.5 million and a preliminary
addition to goodwill of $36.4 million to record Comm Bancorp, Inc. during the first quarter of
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2011. At March 31, 2011, the estimated total risk-based capital ratio was 12.39%, the estimated
tier 1 risk-based capital ratio was 10.87% and the leverage ratio was 8.36%. The tangible common
equity to tangible assets ratio (non-GAAP measure) was 5.76% and the tangible book value per share
(non-GAAP measure) was $4.36 at March 31, 2011. The dividend payout ratio for the quarter was 84%
including the impact of the merger-related costs.
Conference Call
F.N.B. Corporation will host its quarterly conference call to discuss first quarter of 2011
financial results on Tuesday, April 26, 2011, at 8:00 AM EDT. Participating callers may access the
call by dialing (800) 967-7185 or (719) 325-2392 for international callers; the confirmation number
is 2152369. The listen-only audio Webcast may be accessed through the “Shareholder and Investor
Relations” section of the Corporation’s Web site at
www.fnbcorporation.com.
A replay of the call will be available from 11:00 AM EDT the day of the call until midnight EDT on
Tuesday, May 3, 2011. The replay is accessible by dialing (800) 870-5176 or (858) 384-5517 for
international callers; the confirmation number is 2152369. The call transcript and Webcast will be
available on the “Shareholder and Investor Relations” section of F.N.B. Corporation’s Web site at
www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company
with total assets of $9.8 billion. F.N.B. Corporation is a leading provider of commercial and
retail banking, leasing, wealth management, insurance, merchant banking and consumer finance
services in Pennsylvania and Ohio, where it owns and operates First National Bank of Pennsylvania,
First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment
Advisors, Inc., First National Insurance Agency, LLC, F.N.B. Capital Corporation, LLC, Regency
Finance Company and F.N.B. Commercial Leasing. It also operates consumer finance offices in
Kentucky and Tennessee.
Forward-looking Statements
This press release of F.N.B. Corporation and the reports F.N.B. Corporation files with the
Securities and Exchange Commission often contain “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act, relating to present or future trends or factors
affecting the banking industry and, specifically, the financial operations, markets and products of
F.N.B. Corporation. Forward-looking statements are typically identified by words such as
“believe”, “plan”, “expect”, “anticipate”, “intend”, “outlook”, “estimate”, “forecast”,
“will”, “should”, “project”, “goal”, and other similar words and expressions. These
forward-looking statements involve certain risks and uncertainties. There are a number of
important factors that could cause F.N.B. Corporation’s future results to differ materially from
historical performance or projected performance. These factors include, but are not limited to:
(1) a significant increase in competitive pressures among financial institutions; (2) changes in
the
Page 4 of 5
interest rate environment that may reduce net interest margins; (3) changes in prepayment
speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions;
(5) various monetary and fiscal policies and regulations of the U.S. Government that may adversely
affect the businesses in which F.N.B. Corporation is engaged; (6) technological issues which may
adversely affect F.N.B. Corporation’s financial operations or customers; (7) changes in the
securities markets; (8) risk factors mentioned in the reports and registration statements F.N.B.
Corporation files with the Securities and Exchange Commission which are on file with the SEC, and
are available on our shareholder and investor relations website at www.fnbcorporation.com and on
the SEC website at www.sec.gov; (9) housing prices; (10) job market; (11) consumer confidence and
spending habits or (12) estimates of fair value of certain F.N.B. Corporation assets and
liabilities. All information provided in this release and in the attachments is based on
information presently available and F.N.B. Corporation undertakes no obligation to revise these
forward-looking statements or to reflect events or circumstances after the date of this press
release.
# # #
Analyst/Institutional Investor Contact:
Cynthia Christopher 724-983-3429
724-815-3926 (cell)
christoc@fnb-corp.com
Media Contact:
Jennifer Reel 724-983-4856
724-699-6389 (cell)
reel@fnb-corp.com
Cynthia Christopher 724-983-3429
724-815-3926 (cell)
christoc@fnb-corp.com
Media Contact:
Jennifer Reel 724-983-4856
724-699-6389 (cell)
reel@fnb-corp.com
DATA SHEETS FOLLOW
Page 5 of 5
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
(Unaudited)
(Dollars in thousands, except per share data)
| 1st Qtr 2011 - | 1st Qtr 2011 - | |||||||||||||||||||
| 2011 | 2010 | 4th Qtr 2010 | 1st Qtr 2010 | |||||||||||||||||
| First | Fourth | First | Percent | Percent | ||||||||||||||||
| Quarter | Quarter | Quarter | Variance | Variance | ||||||||||||||||
Statement of earnings |
||||||||||||||||||||
Interest income |
$ | 97,371 | $ | 92,867 | $ | 92,546 | 4.9 | 5.2 | ||||||||||||
Interest expense |
20,088 | 20,022 | 24,141 | 0.3 | -16.8 | |||||||||||||||
Net interest income |
77,283 | 72,845 | 68,405 | 6.1 | 13.0 | |||||||||||||||
Taxable equivalent adjustment |
1,965 | 1,683 | 1,638 | 16.8 | 20.0 | |||||||||||||||
Net interest income (FTE) (1) |
79,248 | 74,528 | 70,043 | 6.3 | 13.1 | |||||||||||||||
Provision for loan losses |
8,228 | 10,807 | 11,964 | -23.9 | -31.2 | |||||||||||||||
Net interest income after provision (FTE) |
71,020 | 63,721 | 58,079 | 11.5 | 22.3 | |||||||||||||||
Impairment losses on securities |
0 | (51 | ) | (8,226 | ) | n/m | n/m | |||||||||||||
Non-credit related losses on securities not expected to
be sold (recognized in other comprehensive income) |
0 | 0 | 6,540 | n/m | n/m | |||||||||||||||
Net impairment losses on securities |
0 | (51 | ) | (1,686 | ) | n/m | n/m | |||||||||||||
Service charges |
14,334 | 14,146 | 13,722 | 1.3 | 4.5 | |||||||||||||||
Insurance commissions and fees |
4,146 | 3,678 | 4,324 | 12.7 | -4.1 | |||||||||||||||
Securities commissions and fees |
1,972 | 1,717 | 1,557 | 14.8 | 26.7 | |||||||||||||||
Trust income |
3,710 | 3,289 | 3,158 | 12.8 | 17.5 | |||||||||||||||
Gain on sale of securities |
54 | 443 | 2,390 | -87.8 | -97.7 | |||||||||||||||
Gain on sale of loans |
767 | 1,423 | 567 | -46.1 | 35.3 | |||||||||||||||
Other |
3,449 | 4,855 | 6,244 | -29.0 | -44.8 | |||||||||||||||
Total non-interest income |
28,432 | 29,500 | 30,275 | -3.6 | -6.1 | |||||||||||||||
Salaries and employee benefits |
38,382 | 25,911 | 33,125 | 48.1 | 15.9 | |||||||||||||||
Occupancy and equipment |
10,385 | 9,477 | 10,071 | 9.6 | 3.1 | |||||||||||||||
Amortization of intangibles |
1,796 | 1,673 | 1,687 | 7.3 | 6.5 | |||||||||||||||
Other real estate owned |
1,579 | 2,440 | 1,164 | -35.3 | 35.7 | |||||||||||||||
Other |
22,415 | 18,828 | 19,396 | 19.0 | 15.6 | |||||||||||||||
Total non-interest expense |
74,557 | 58,329 | 65,443 | 27.8 | 13.9 | |||||||||||||||
Income before income taxes |
24,895 | 34,892 | 22,911 | -28.7 | 8.7 | |||||||||||||||
Taxable equivalent adjustment |
1,965 | 1,683 | 1,638 | 16.8 | 20.0 | |||||||||||||||
Income taxes |
5,755 | 9,676 | 5,293 | -40.5 | 8.7 | |||||||||||||||
Net income |
$ | 17,175 | $ | 23,533 | $ | 15,980 | -27.0 | 7.5 | ||||||||||||
Earnings per share: |
||||||||||||||||||||
Basic |
$ | 0.14 | $ | 0.21 | $ | 0.14 | -33.3 | 0.0 | ||||||||||||
Diluted |
$ | 0.14 | $ | 0.21 | $ | 0.14 | -33.3 | 0.0 | ||||||||||||
Performance ratios |
||||||||||||||||||||
Return on average equity |
6.17 | % | 8.74 | % | 6.19 | % | ||||||||||||||
Return on average tangible equity (2) (6) |
13.93 | % | 19.28 | % | 14.43 | % | ||||||||||||||
Return on average assets |
0.72 | % | 1.03 | % | 0.74 | % | ||||||||||||||
Return on average tangible assets (3) (6) |
0.82 | % | 1.15 | % | 0.85 | % | ||||||||||||||
Net interest margin (FTE) (1) |
3.81 | % | 3.77 | % | 3.74 | % | ||||||||||||||
Yield on earning assets (FTE) (1) |
4.77 | % | 4.78 | % | 5.03 | % | ||||||||||||||
Cost of funds |
1.12 | % | 1.17 | % | 1.47 | % | ||||||||||||||
Efficiency ratio (FTE) (1) (4) |
67.57 | % | 54.46 | % | 63.55 | % | ||||||||||||||
Effective tax rate |
25.10 | % | 29.14 | % | 24.88 | % | ||||||||||||||
Common stock data |
||||||||||||||||||||
Average basic shares outstanding |
120,193,233 | 114,077,849 | 113,750,330 | 5.4 | 5.7 | |||||||||||||||
Average diluted shares outstanding |
120,952,973 | 114,596,166 | 114,064,564 | 5.5 | 6.0 | |||||||||||||||
Ending shares outstanding |
120,871,383 | 114,747,085 | 114,404,945 | 5.3 | 5.7 | |||||||||||||||
Book value per share |
$ | 9.34 | $ | 9.29 | $ | 9.16 | 0.5 | 2.0 | ||||||||||||
Tangible book value per share (6) |
$ | 4.36 | $ | 4.40 | $ | 4.21 | -0.9 | 3.6 | ||||||||||||
Tangible book value per share excluding AOCI (5) (6) |
$ | 4.64 | $ | 4.69 | $ | 4.47 | -1.2 | 3.8 | ||||||||||||
Dividend payout ratio |
83.86 | % | 58.82 | % | 86.16 | % | ||||||||||||||
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
(Unaudited)
(Dollars in thousands)
| 1st Qtr 2011 - | 1st Qtr 2011 - | |||||||||||||||||||
| 2011 | 2010 | 4th Qtr 2010 | 1st Qtr 2010 | |||||||||||||||||
| First | Fourth | First | Percent | Percent | ||||||||||||||||
| Quarter | Quarter | Quarter | Variance | Variance | ||||||||||||||||
Average balances |
||||||||||||||||||||
Total assets |
$ | 9,695,015 | $ | 9,044,812 | $ | 8,745,138 | 7.2 | 10.9 | ||||||||||||
Earning assets |
8,409,212 | 7,856,410 | 7,561,506 | 7.0 | 11.2 | |||||||||||||||
Securities |
1,731,714 | 1,642,219 | 1,482,338 | 5.4 | 16.8 | |||||||||||||||
Interest bearing deposits with banks |
137,281 | 168,729 | 189,474 | -18.6 | -27.5 | |||||||||||||||
Loans, net of unearned income |
6,540,217 | 6,045,462 | 5,889,694 | 8.2 | 11.0 | |||||||||||||||
Allowance for loan losses |
108,259 | 118,187 | 108,256 | -8.4 | 0.0 | |||||||||||||||
Goodwill and intangibles |
595,436 | 561,946 | 566,983 | 6.0 | 5.0 | |||||||||||||||
Deposits and customer repos (7) |
7,916,046 | 7,328,829 | 7,002,594 | 8.0 | 13.0 | |||||||||||||||
Short-term borrowings |
143,531 | 134,456 | 132,737 | 6.7 | 8.1 | |||||||||||||||
Long-term debt |
199,047 | 199,007 | 262,920 | 0.0 | -24.3 | |||||||||||||||
Trust preferred securities |
203,961 | 204,118 | 204,625 | -0.1 | -0.3 | |||||||||||||||
Shareholders’ equity |
1,129,622 | 1,068,468 | 1,047,094 | 5.7 | 7.9 | |||||||||||||||
Asset quality data |
||||||||||||||||||||
Non-accrual loans |
$ | 108,080 | $ | 115,589 | $ | 141,913 | -6.5 | -23.8 | ||||||||||||
Restructured loans |
21,577 | 19,705 | 15,556 | 9.5 | 38.7 | |||||||||||||||
Non-performing loans |
129,657 | 135,294 | 157,469 | -4.2 | -17.7 | |||||||||||||||
Other real estate owned |
38,101 | 32,702 | 22,094 | 16.5 | 72.5 | |||||||||||||||
Total non-performing loans and OREO |
167,758 | 167,996 | 179,563 | -0.1 | -6.6 | |||||||||||||||
Non-performing investments |
6,204 | 5,974 | 4,346 | 3.9 | 42.8 | |||||||||||||||
Non-performing assets |
$ | 173,962 | $ | 173,970 | $ | 183,909 | 0.0 | -5.4 | ||||||||||||
Net loan charge-offs |
$ | 6,736 | $ | 21,314 | $ | 7,027 | -68.4 | -4.1 | ||||||||||||
Allowance for loan losses |
107,612 | 106,120 | 109,592 | 1.4 | -1.8 | |||||||||||||||
Non-performing loans / total loans |
1.98 | % | 2.22 | % | 2.67 | % | ||||||||||||||
Non-performing loans + OREO / total loans + OREO |
2.54 | % | 2.74 | % | 3.04 | % | ||||||||||||||
Non-performing assets / total assets |
1.78 | % | 1.94 | % | 2.09 | % | ||||||||||||||
Allowance for loan losses / total loans |
1.64 | % | 1.74 | % | 1.86 | % | ||||||||||||||
Allowance for loan losses + credit marks / total
loans + credit marks (6) |
2.04 | % | n/a | n/a | ||||||||||||||||
Allowance for loan losses / non-performing loans |
83.00 | % | 78.44 | % | 69.60 | % | ||||||||||||||
Net loan charge-offs (annualized) / average loans |
0.42 | % | 1.40 | % | 0.48 | % | ||||||||||||||
Balances at period end |
||||||||||||||||||||
Total assets |
$ | 9,755,281 | $ | 8,959,915 | $ | 8,799,534 | 8.9 | 10.9 | ||||||||||||
Earning assets |
8,459,481 | 7,795,476 | 7,609,205 | 8.5 | 11.2 | |||||||||||||||
Loans, net of unearned income |
6,559,952 | 6,088,155 | 5,890,105 | 7.7 | 11.4 | |||||||||||||||
Deposits and customer repos (7) |
7,982,954 | 7,258,045 | 7,073,906 | 10.0 | 12.9 | |||||||||||||||
Total equity |
1,128,414 | 1,066,124 | 1,047,395 | 5.8 | 7.7 | |||||||||||||||
Capital ratios |
||||||||||||||||||||
Equity / assets (period end) |
11.57 | % | 11.90 | % | 11.90 | % | ||||||||||||||
Leverage ratio |
8.36 | % | 8.69 | % | 8.67 | % | ||||||||||||||
Tangible equity / tangible assets (period end) (6) |
5.76 | % | 6.01 | % | 5.84 | % | ||||||||||||||
Tangible equity, excluding AOCI / tangible
assets (period end) (5) (6) |
6.12 | % | 6.41 | % | 6.21 | % | ||||||||||||||
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
(Unaudited)
(Dollars in thousands)
| 1st Qtr 2011 - | 1st Qtr 2011 - | |||||||||||||||||||
| 2011 | 2010 | 4th Qtr 2010 | 1st Qtr 2010 | |||||||||||||||||
| First | Fourth | First | Percent | Percent | ||||||||||||||||
| Quarter | Quarter | Quarter | Variance | Variance | ||||||||||||||||
Average balances |
||||||||||||||||||||
Loans: |
||||||||||||||||||||
Commercial |
$ | 3,654,563 | $ | 3,303,222 | $ | 3,281,512 | 10.6 | 11.4 | ||||||||||||
Direct installment |
1,046,249 | 1,001,104 | 975,119 | 4.5 | 7.3 | |||||||||||||||
Residential mortgages |
689,679 | 631,423 | 612,819 | 9.2 | 12.5 | |||||||||||||||
Indirect installment |
518,168 | 515,341 | 518,311 | 0.5 | 0.0 | |||||||||||||||
Consumer LOC |
507,405 | 484,560 | 411,666 | 4.7 | 23.3 | |||||||||||||||
Commercial leases |
84,196 | 75,131 | 58,123 | 12.1 | 44.9 | |||||||||||||||
Other |
39,957 | 34,681 | 32,144 | 15.2 | 24.3 | |||||||||||||||
Total loans |
$ | 6,540,217 | $ | 6,045,462 | $ | 5,889,694 | 8.2 | 11.0 | ||||||||||||
Deposits: |
||||||||||||||||||||
Non-interest bearing deposits |
$ | 1,176,031 | $ | 1,105,157 | $ | 969,926 | 6.4 | 21.2 | ||||||||||||
Savings and NOW |
3,753,938 | 3,380,143 | 3,217,055 | 11.1 | 16.7 | |||||||||||||||
Certificates of deposit and other time deposits |
2,340,149 | 2,159,718 | 2,218,933 | 8.4 | 5.5 | |||||||||||||||
Total deposits |
7,270,118 | 6,645,018 | 6,405,914 | 9.4 | 13.5 | |||||||||||||||
Customer repos (7) |
645,928 | 683,811 | 596,680 | -5.5 | 8.3 | |||||||||||||||
Total deposits and customer repos (7) |
$ | 7,916,046 | $ | 7,328,829 | $ | 7,002,594 | 8.0 | 13.0 | ||||||||||||
Balances at period end |
||||||||||||||||||||
Loans: |
||||||||||||||||||||
Commercial |
$ | 3,689,667 | $ | 3,337,992 | $ | 3,296,728 | 10.5 | 11.9 | ||||||||||||
Direct installment |
1,036,213 | 1,002,725 | 967,005 | 3.3 | 7.2 | |||||||||||||||
Residential mortgages |
673,152 | 622,242 | 600,006 | 8.2 | 12.2 | |||||||||||||||
Indirect installment |
522,634 | 514,369 | 514,020 | 1.6 | 1.7 | |||||||||||||||
Consumer LOC |
511,329 | 493,881 | 417,910 | 3.5 | 22.4 | |||||||||||||||
Commercial leases |
87,916 | 79,429 | 61,408 | 10.7 | 43.2 | |||||||||||||||
Other |
39,041 | 37,517 | 33,028 | 4.1 | 18.2 | |||||||||||||||
Total loans |
$ | 6,559,952 | $ | 6,088,155 | $ | 5,890,105 | 7.7 | 11.4 | ||||||||||||
Deposits: |
||||||||||||||||||||
Non-interest bearing deposits |
$ | 1,223,720 | $ | 1,093,230 | $ | 1,015,521 | 11.9 | 20.5 | ||||||||||||
Savings and NOW |
3,831,735 | 3,423,844 | 3,246,529 | 11.9 | 18.0 | |||||||||||||||
Certificates of deposit and other time deposits |
2,334,856 | 2,129,069 | 2,232,056 | 9.7 | 4.6 | |||||||||||||||
Total deposits |
7,390,311 | 6,646,143 | 6,494,106 | 11.2 | 13.8 | |||||||||||||||
Customer repos (7) |
592,643 | 611,902 | 579,800 | -3.1 | 2.2 | |||||||||||||||
Total deposits and customer repos (7) |
$ | 7,982,954 | $ | 7,258,045 | $ | 7,073,906 | 10.0 | 12.9 | ||||||||||||
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
(Unaudited)
(Dollars in thousands)
| First Quarter 2011 | ||||||||||||||||
| Asset quality data, by core portfolio | Bank - PA | Bank - FL | Regency | Total | ||||||||||||
Non-accrual loans |
$ | 59,343 | $ | 46,701 | $ | 2,036 | $ | 108,080 | ||||||||
Restructured loans |
14,949 | 0 | 6,628 | 21,577 | ||||||||||||
Non-performing loans |
74,292 | 46,701 | 8,664 | 129,657 | ||||||||||||
Other real estate owned |
12,044 | 24,502 | 1,555 | 38,101 | ||||||||||||
Total non-performing loans and OREO |
86,336 | 71,203 | 10,219 | 167,758 | ||||||||||||
Non-performing investments |
6,204 | 0 | 0 | 6,204 | ||||||||||||
Non-performing assets |
$ | 92,540 | $ | 71,203 | $ | 10,219 | $ | 173,962 | ||||||||
Net loan charge-offs |
$ | 4,053 | $ | 1,147 | $ | 1,536 | $ | 6,736 | ||||||||
Provision for loan losses |
5,300 | 1,600 | 1,328 | 8,228 | ||||||||||||
Allowance for loan losses |
83,044 | 17,938 | 6,630 | 107,612 | ||||||||||||
Loans, net of unearned income |
6,216,969 | 185,148 | 157,835 | 6,559,952 | ||||||||||||
Non-performing loans / total loans |
1.19 | % | 25.22 | % | 5.49 | % | 1.98 | % | ||||||||
Non-performing loans + OREO / total loans + OREO |
1.39 | % | 33.96 | % | 6.41 | % | 2.54 | % | ||||||||
Non-performing assets / total assets |
0.99 | % | 37.14 | % | 6.06 | % | 1.78 | % | ||||||||
Allowance for loan losses / total loans |
1.34 | % | 9.69 | % | 4.20 | % | 1.64 | % | ||||||||
Allowance for loan losses + credit marks / total
loans + credit marks (6) |
1.76 | % | 9.69 | % | 4.20 | % | 2.04 | % | ||||||||
Allowance for loan losses / non-performing loans |
111.78 | % | 38.41 | % | 76.52 | % | 83.00 | % | ||||||||
Net loan charge-offs (annualized) / average loans |
0.27 | % | 2.45 | % | 3.90 | % | 0.42 | % | ||||||||
Loans 30 - 89 days past due |
$ | 44,657 | $ | 8,503 | $ | 2,037 | $ | 55,197 | ||||||||
Loans 90+ days past due |
13,952 | 0 | 2,127 | 16,079 | ||||||||||||
Non-accrual loans |
59,343 | 46,701 | 2,036 | 108,080 | ||||||||||||
Total past due and non-accrual loans |
$ | 117,952 | $ | 55,204 | $ | 6,200 | $ | 179,356 | ||||||||
Loans 90+ days past due and non-accrual
loans / total loans |
1.18 | % | 25.22 | % | 2.64 | % | 1.89 | % | ||||||||
Total past due and non-accrual loans / total loans |
1.90 | % | 29.82 | % | 3.93 | % | 2.73 | % | ||||||||
| Fourth Quarter 2010 | ||||||||||||||||
| Asset quality data, by core portfolio | Bank - PA | Bank - FL | Regency | Total | ||||||||||||
Non-accrual loans |
$ | 58,528 | $ | 55,222 | $ | 1,839 | $ | 115,589 | ||||||||
Restructured loans |
13,433 | 0 | 6,272 | 19,705 | ||||||||||||
Non-performing loans |
71,961 | 55,222 | 8,111 | 135,294 | ||||||||||||
Other real estate owned |
10,520 | 20,860 | 1,322 | 32,702 | ||||||||||||
Total non-performing loans and OREO |
82,481 | 76,082 | 9,433 | 167,996 | ||||||||||||
Non-performing investments |
5,974 | 0 | 0 | 5,974 | ||||||||||||
Non-performing assets |
$ | 88,455 | $ | 76,082 | $ | 9,433 | $ | 173,970 | ||||||||
Net loan charge-offs |
$ | 6,870 | $ | 12,901 | $ | 1,543 | $ | 21,314 | ||||||||
Provision for loan losses |
7,939 | 1,271 | 1,597 | 10,807 | ||||||||||||
Allowance for loan losses |
81,797 | 17,485 | 6,838 | 106,120 | ||||||||||||
Loans, net of unearned income |
5,730,069 | 195,281 | 162,805 | 6,088,155 | ||||||||||||
Non-performing loans / total loans |
1.26 | % | 28.28 | % | 4.98 | % | 2.22 | % | ||||||||
Non-performing loans + OREO / total loans + OREO |
1.44 | % | 35.20 | % | 5.75 | % | 2.74 | % | ||||||||
Non-performing assets / total assets |
1.03 | % | 38.30 | % | 5.50 | % | 1.94 | % | ||||||||
Allowance for loan losses / total loans |
1.43 | % | 8.95 | % | 4.20 | % | 1.74 | % | ||||||||
Allowance for loan losses / non-performing loans |
113.67 | % | 31.66 | % | 84.30 | % | 78.44 | % | ||||||||
Net loan charge-offs (annualized) / average loans |
0.48 | % | 25.05 | % | 3.78 | % | 1.40 | % | ||||||||
Loans 30 - 89 days past due |
$ | 38,600 | $ | 2,499 | $ | 2,523 | $ | 43,622 | ||||||||
Loans 90+ days past due |
6,127 | 0 | 2,507 | 8,634 | ||||||||||||
Non-accrual loans |
58,528 | 55,222 | 1,839 | 115,589 | ||||||||||||
Total past due and non-accrual loans |
$ | 103,255 | $ | 57,721 | $ | 6,869 | $ | 167,845 | ||||||||
Loans 90+ days past due and non-accrual
loans / total loans |
1.13 | % | 28.28 | % | 2.67 | % | 2.04 | % | ||||||||
Total past due and non-accrual loans / total loans |
1.80 | % | 29.56 | % | 4.22 | % | 2.76 | % | ||||||||
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
(Unaudited)
(Dollars in thousands)
| First Quarter 2010 | ||||||||||||||||
| Asset quality data, by core portfolio | Bank - PA | Bank - FL | Regency | Total | ||||||||||||
Non-accrual loans |
$ | 71,027 | $ | 68,993 | $ | 1,893 | $ | 141,913 | ||||||||
Restructured loans |
9,656 | 0 | 5,900 | 15,556 | ||||||||||||
Non-performing loans |
80,683 | 68,993 | 7,793 | 157,469 | ||||||||||||
Other real estate owned |
10,077 | 10,914 | 1,103 | 22,094 | ||||||||||||
Total non-performing loans and OREO |
90,760 | 79,907 | 8,896 | 179,563 | ||||||||||||
Non-performing investments |
4,346 | 0 | 0 | 4,346 | ||||||||||||
Non-performing assets |
$ | 95,106 | $ | 79,907 | $ | 8,896 | $ | 183,909 | ||||||||
Net loan charge-offs |
$ | 4,540 | $ | 938 | $ | 1,549 | $ | 7,027 | ||||||||
Provision for loan losses |
6,824 | 3,820 | 1,320 | 11,964 | ||||||||||||
Allowance for loan losses |
80,345 | 22,671 | 6,576 | 109,592 | ||||||||||||
Loans, net of unearned income |
5,493,117 | 240,426 | 156,562 | 5,890,105 | ||||||||||||
Non-performing loans / total loans |
1.47 | % | 28.70 | % | 4.98 | % | 2.67 | % | ||||||||
Non-performing loans + OREO / total loans + OREO |
1.65 | % | 31.79 | % | 5.64 | % | 3.04 | % | ||||||||
Non-performing assets / total assets |
1.14 | % | 34.94 | % | 5.44 | % | 2.09 | % | ||||||||
Allowance for loan losses / total loans |
1.46 | % | 9.43 | % | 4.20 | % | 1.86 | % | ||||||||
Allowance for loan losses / non-performing loans |
99.58 | % | 32.86 | % | 84.38 | % | 69.60 | % | ||||||||
Net loan charge-offs (annualized) / average loans |
0.34 | % | 1.57 | % | 3.96 | % | 0.48 | % | ||||||||
Loans 30 - 89 days past due |
$ | 35,226 | $ | 0 | $ | 1,965 | $ | 37,191 | ||||||||
Loans 90+ days past due |
6,280 | 0 | 2,401 | 8,681 | ||||||||||||
Non-accrual loans |
71,027 | 68,993 | 1,893 | 141,913 | ||||||||||||
Total past due and non-accrual loans |
$ | 112,533 | $ | 68,993 | $ | 6,259 | $ | 187,785 | ||||||||
Loans 90+ days past due and non-accrual
loans / total loans |
1.41 | % | 28.70 | % | 2.74 | % | 2.56 | % | ||||||||
Total past due and non-accrual loans / total loans |
2.05 | % | 28.70 | % | 4.00 | % | 3.19 | % | ||||||||
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
(Unaudited)
(Dollars in thousands)
| 1st Qtr 2011 - | 1st Qtr 2011 - | |||||||||||||||||||
| 2011 | 2010 | 4th Qtr 2010 | 1st Qtr 2010 | |||||||||||||||||
| First | Fourth | First | Percent | Percent | ||||||||||||||||
| Balance Sheet (at period end) | Quarter | Quarter | Quarter | Variance | Variance | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
$ | 157,568 | $ | 115,556 | $ | 139,762 | 36.4 | 12.7 | ||||||||||||
Interest bearing deposits with banks |
132,340 | 16,015 | 189,566 | 726.3 | -30.2 | |||||||||||||||
Cash and cash equivalents |
289,908 | 131,571 | 329,328 | 120.3 | -12.0 | |||||||||||||||
Securities available for sale |
804,242 | 738,125 | 673,596 | 9.0 | 19.4 | |||||||||||||||
Securities held to maturity |
956,693 | 940,481 | 844,472 | 1.7 | 13.3 | |||||||||||||||
Residential mortgage loans held for sale |
6,254 | 12,700 | 11,466 | -50.8 | -45.5 | |||||||||||||||
Loans, net of unearned income |
6,559,952 | 6,088,155 | 5,890,105 | 7.7 | 11.4 | |||||||||||||||
Allowance for loan losses |
(107,612 | ) | (106,120 | ) | (109,592 | ) | 1.4 | -1.8 | ||||||||||||
Net loans |
6,452,340 | 5,982,035 | 5,780,513 | 7.9 | 11.6 | |||||||||||||||
Premises and equipment, net |
125,067 | 115,956 | 116,258 | 7.9 | 7.6 | |||||||||||||||
Goodwill |
565,090 | 528,720 | 528,720 | 6.9 | 6.9 | |||||||||||||||
Core deposit and other intangible assets,
net |
36,385 | 32,428 | 37,455 | 12.2 | -2.9 | |||||||||||||||
Bank owned life insurance |
208,720 | 208,051 | 206,515 | 0.3 | 1.1 | |||||||||||||||
Other assets |
310,582 | 269,848 | 271,211 | 15.1 | 14.5 | |||||||||||||||
Total Assets |
$ | 9,755,281 | $ | 8,959,915 | $ | 8,799,534 | 8.9 | 10.9 | ||||||||||||
Liabilities |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Non-interest bearing demand |
$ | 1,223,720 | $ | 1,093,230 | $ | 1,015,521 | 11.9 | 20.5 | ||||||||||||
Savings and NOW |
3,831,735 | 3,423,844 | 3,246,529 | 11.9 | 18.0 | |||||||||||||||
Certificates and other time deposits |
2,334,856 | 2,129,069 | 2,232,056 | 9.7 | 4.6 | |||||||||||||||
Total Deposits |
7,390,311 | 6,646,143 | 6,494,106 | 11.2 | 13.8 | |||||||||||||||
Other liabilities |
94,975 | 97,951 | 92,369 | -3.0 | 2.8 | |||||||||||||||
Short-term borrowings |
738,520 | 753,603 | 710,731 | -2.0 | 3.9 | |||||||||||||||
Long-term debt |
199,134 | 192,058 | 250,391 | 3.7 | -20.5 | |||||||||||||||
Junior subordinated debt |
203,927 | 204,036 | 204,542 | -0.1 | -0.3 | |||||||||||||||
Total Liabilities |
8,626,867 | 7,893,791 | 7,752,139 | 9.3 | 11.3 | |||||||||||||||
Stockholders’ Equity |
||||||||||||||||||||
Common stock |
1,205 | 1,143 | 1,140 | 5.4 | 5.7 | |||||||||||||||
Additional paid-in capital |
1,154,953 | 1,094,713 | 1,089,326 | 5.5 | 6.0 | |||||||||||||||
Retained earnings |
9,336 | 6,564 | (10,621 | ) | 42.2 | -187.9 | ||||||||||||||
Accumulated other comprehensive income |
(33,679 | ) | (33,732 | ) | (29,961 | ) | -0.2 | 12.4 | ||||||||||||
Treasury stock |
(3,401 | ) | (2,564 | ) | (2,489 | ) | 32.7 | 36.6 | ||||||||||||
Total Stockholders’ Equity |
1,128,414 | 1,066,124 | 1,047,395 | 5.8 | 7.7 | |||||||||||||||
Total Liabilities and Stockholders’ Equity |
$ | 9,755,281 | $ | 8,959,915 | $ | 8,799,534 | 8.9 | 10.9 | ||||||||||||
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
(Unaudited)
(Dollars in thousands)
NON-GAAP FINANCIAL MEASURES
The following non-GAAP financial measures used by the Corporation provide information useful to investors in understanding the Corporation’s
operating performance and trends, and facilitate comparisons with the performance of the Corporation’s peers. The non-GAAP financial measures
used by the Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.
The following tables summarize the non-GAAP financial measures derived from amounts reported in the Corporation’s financial statements.
| 2011 | 2010 | |||||||||||
| First | Fourth | First | ||||||||||
| Quarter | Quarter | Quarter | ||||||||||
Adjusted net income: |
||||||||||||
Net income |
$ | 17,175 | $ | 23,533 | $ | 15,980 | ||||||
Merger-related costs, net of tax |
2,695 | 356 | 0 | |||||||||
Less: Pension credit, net of tax |
0 | (6,853 | ) | 0 | ||||||||
Adjusted net income |
$ | 19,870 | $ | 17,035 | $ | 15,980 | ||||||
Adjusted diluted earnings per share: |
||||||||||||
Diluted earnings per share |
$ | 0.14 | $ | 0.21 | $ | 0.14 | ||||||
Effect of merger-related costs, net of tax |
0.02 | 0.00 | 0.00 | |||||||||
Less: Effect of pension credit, net of tax |
0.00 | (0.06 | ) | 0.00 | ||||||||
Adjusted diluted earnings per share |
$ | 0.16 | $ | 0.15 | $ | 0.14 | ||||||
Return on average tangible equity (2): |
||||||||||||
Net income (annualized) |
$ | 69,653 | $ | 93,364 | $ | 64,810 | ||||||
Amortization of intangibles, net of tax (annualized) |
4,734 | 4,315 | 4,447 | |||||||||
| 74,387 | 97,679 | 69,257 | ||||||||||
Average total shareholders’ equity |
1,129,622 | 1,068,468 | 1,047,094 | |||||||||
Less: Average intangibles |
(595,436 | ) | (561,946 | ) | (566,983 | ) | ||||||
| 534,186 | 506,522 | 480,111 | ||||||||||
Return on average tangible equity (2) |
13.93 | % | 19.28 | % | 14.43 | % | ||||||
Return on average tangible assets (3): |
||||||||||||
Net income (annualized) |
$ | 69,653 | $ | 93,364 | $ | 64,810 | ||||||
Amortization of intangibles, net of tax (annualized) |
4,734 | 4,315 | 4,447 | |||||||||
| 74,387 | 97,679 | 69,257 | ||||||||||
Average total assets |
9,695,015 | 9,044,812 | 8,745,138 | |||||||||
Less: Average intangibles |
(595,436 | ) | (561,946 | ) | (566,983 | ) | ||||||
| 9,099,579 | 8,482,866 | 8,178,155 | ||||||||||
Return on average tangible assets (3) |
0.82 | % | 1.15 | % | 0.85 | % | ||||||
Tangible book value per share: |
||||||||||||
Total shareholders’ equity |
$ | 1,128,414 | $ | 1,066,124 | $ | 1,047,395 | ||||||
Less: intangibles |
(601,475 | ) | (561,148 | ) | (566,175 | ) | ||||||
| 526,939 | 504,976 | 481,220 | ||||||||||
Ending shares outstanding |
120,871,383 | 114,747,085 | 114,404,945 | |||||||||
Tangible book value per share |
$ | 4.36 | $ | 4.40 | $ | 4.21 | ||||||
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
(Unaudited)
(Dollars in thousands)
| 2011 | 2010 | |||||||||||
| First | Fourth | First | ||||||||||
| Quarter | Quarter | Quarter | ||||||||||
Tangible book value per share excluding AOCI (5): |
||||||||||||
Total shareholders’ equity |
$ | 1,128,414 | $ | 1,066,124 | $ | 1,047,395 | ||||||
Less: intangibles |
(601,475 | ) | (561,148 | ) | (566,175 | ) | ||||||
Less: AOCI |
33,679 | 33,732 | 29,961 | |||||||||
| 560,618 | 538,708 | 511,181 | ||||||||||
Ending shares outstanding |
120,871,383 | 114,747,085 | 114,404,945 | |||||||||
Tangible book value per share excluding AOCI (5) |
$ | 4.64 | $ | 4.69 | $ | 4.47 | ||||||
Tangible equity / tangible assets (period end): |
||||||||||||
Total shareholders’ equity |
$ | 1,128,414 | $ | 1,066,124 | $ | 1,047,395 | ||||||
Less: intangibles |
(601,475 | ) | (561,148 | ) | (566,175 | ) | ||||||
| 526,939 | 504,976 | 481,220 | ||||||||||
Total assets |
9,755,281 | 8,959,915 | 8,799,534 | |||||||||
Less: intangibles |
(601,475 | ) | (561,148 | ) | (566,175 | ) | ||||||
| 9,153,806 | 8,398,767 | 8,233,359 | ||||||||||
Tangible equity / tangible assets (period end) |
5.76 | % | 6.01 | % | 5.84 | % | ||||||
Tangible equity, excluding AOCI / tangible
assets (period end) (5): |
||||||||||||
Total shareholders’ equity |
$ | 1,128,414 | $ | 1,066,124 | $ | 1,047,395 | ||||||
Less: intangibles |
(601,475 | ) | (561,148 | ) | (566,175 | ) | ||||||
Less: AOCI |
33,679 | 33,732 | 29,961 | |||||||||
| 560,618 | 538,708 | 511,181 | ||||||||||
Total assets |
9,755,281 | 8,959,915 | 8,799,534 | |||||||||
Less: intangibles |
(601,475 | ) | (561,148 | ) | (566,175 | ) | ||||||
| 9,153,806 | 8,398,767 | 8,233,359 | ||||||||||
Tangible equity, excluding AOCI / tangible
assets (period end) (5) |
6.12 | % | 6.41 | % | 6.21 | % | ||||||
Allowance for loan losses + credit marks / total
loans + credit marks: |
||||||||||||
Allowance for loan losses |
$ | 107,612 | ||||||||||
Credit marks |
26,919 | |||||||||||
| 134,531 | ||||||||||||
Total loans |
6,559,952 | |||||||||||
Credit marks |
26,919 | |||||||||||
| 6,586,871 | ||||||||||||
Allowance for loan losses + credit marks / total
loans + credit marks |
2.04 | % | ||||||||||
| (1) | Net interest income is also presented on a fully taxable equivalent (FTE) basis, as the Corporation believes this non-GAAP measure is the preferred industry measurement for this item. | |
| (2) | Return on average tangible equity is calculated by dividing net income less amortization of intangibles by average equity less average intangibles. | |
| (3) | Return on average tangible assets is calculated by dividing net income less amortization of intangibles by average assets less average intangibles. | |
| (4) | The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus non-interest income. | |
| (5) | Accumulated other comprehensive income (AOCI) is comprised of unrealized losses on securities, non-credit impairment losses on other- than-temporarily impaired securities and unrecognized pension and postretirement obligations. | |
| (6) | See non-GAAP financial measures for additional information relating to the calculation of this item. | |
| (7) | Customer repos are included in short-term borrowings on the balance sheet. |