UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 21, 2016
F.N.B. CORPORATION
(Exact name of registrant as specified in its charter)
FLORIDA
(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)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
¨ | 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)) |
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On July 21, 2016, F.N.B. Corporation (the Corporation) announced financial results for the quarter ended June 30, 2016. A copy of the press release announcing the Corporation's results for the quarter ended June 30, 2016 is attached hereto as Exhibit 99.1 and incorporated by reference herein.
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
Exhibits:
99.1 | Press release dated July 21, 2016 announcing the financial results of F.N.B. Corporation for the quarter ended June 30, 2016. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
F.N.B. CORPORATION | |||
(Registrant) | |||
By: | /s/Vincent J. Calabrese, Jr. | ||
Name: | Vincent J. Calabrese, Jr. | ||
Title: | Chief Financial Officer | ||
(Principal Financial Officer) | |||
Dated: July 21, 2016 |
Exhibit 99.1
F.N.B. Corporation Reports Second Quarter 2016 Earnings
PITTSBURGH, July 21, 2016 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) reported earnings for the second quarter of 2016 with net income available to common stockholders for the second quarter of 2016 of $39.3 million, or $0.19 per diluted common share, including $0.03 per share in merger-related costs. Comparatively, first quarter of 2016 net income available to common stockholders totaled $24.1 million, or $0.12 per share, including $0.09 per share in merger-related costs, and second quarter of 2015 net income available to common stockholders totaled $38.1 million, or $0.22 per share. Operating results are presented in the tables below.
Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "FNB delivered another strong performance, achieving record revenue and operating net income, as well as an improved efficiency ratio. Additionally, the second quarter revenue growth was led by a 29% increase in non-interest income compared to the year-ago quarter, directly attributable to our acquisition strategy and the strategic investments in our high-value fee-based businesses."
Quarterly Results Summary | 2Q16 | 1Q16 | 2Q15 |
Reported Results |
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Net income available to common stockholders ($ in millions) | $39.3 | $24.1 | $38.1 |
Net income per diluted common share | $0.19 | $0.12 | $0.22 |
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Operating Results (Non-GAAP *) |
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Operating net income available to common stockholders ($ in millions) | $46.1 | $40.7 | $38.4 |
Operating net income per diluted common share | $0.22 | $0.21 | $0.22 |
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Average Diluted Shares Outstanding (in 000's) | 211,675 | 194,878 | 176,362 |
Operating net income is a non-GAAP measure used by management to measure performance of the operation of the business, and management believes that the use of this non-GAAP measure enhances investors' ability to better understand the underlying business performance and trends produced related to core business activities. See Reconciliation of Operating Net Income in the Data Sheets that follow.
Second Quarter 2016 Highlights
(All comparisons refer to the first quarter of 2016, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances acquired via an acquisition.)
Results include the impact from the acquisition of Fifth Third Bank Branches (5/3) on April 22, 2016 and Metro Bancorp, Inc. (METR) on February 13, 2016.
Second Quarter 2016 Results – Comparison to Prior Quarter
(All comparisons refer to the first quarter of 2016, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances acquired via acquisitions.)
Results include the impact from the acquisition of Fifth Third Bank branches (5/3) on April 22, 2016 and Metro Bancorp, Inc. (METR) on February 13, 2016.
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent (FTE) basis* totaled $157.2 million, increasing $14.3 million or 10.0%. The reported net interest margin increased slightly to 3.41%, compared to 3.40%, as the second quarter had $2.3 million of greater accretable yield benefit. The core net interest margin* narrowed 3 basis points to 3.35%, reflecting the continued low interest rate environment. Average earning assets grew $1.6 billion, or 9.5%, due to a full quarter of earning assets from the METR and 5/3 branch acquisitions and continued organic loan growth.
Average loans totaled $14.3 billion and increased $1.1 billion, or 8.3%, reflecting the acquired METR and 5/3 average loan balances and organic average loan growth of $150 million, or 4.3% annualized (including the impact of exiting $60 million in adversely classified acquired commercial loan pools through sales in March and June). Average organic consumer loan growth was $133 million, or 9.7% annualized.
Total average deposits and customer repurchase agreements totaled $16.0 billion and increased $1.5 billion, or 10.2%, including the acquired METR and 5/3 balances and average organic growth of $149 million or 3.8% annualized. Organic growth in low-cost transaction deposit accounts and customer repurchase agreements was $140 million, or 4.3% annualized.
Non-Interest Income
Non-interest income totaled $51.4 million, increasing $5.4 million, or 11.7%. The increase in non-interest income was due to the benefit of a full quarter of METR operations, increased capital markets revenue driven by higher commercial volume, and favorable mortgage and consumer banking performance. Capital markets, mortgage banking, insurance and wealth management organic growth results reflect the benefits from investments made to increase the scale of each business and incremental lift from the newer markets of Cleveland and Baltimore. Non-interest income equaled 25% of total revenue.
Non-Interest Expense
Non-interest expense totaled $129.6 million, decreasing $7.0 million, or 5.1%, and included merger and severance costs of $10.6 million, compared to $24.9 million of merger and severance costs and a $2.6 million impairment charge on acquired other assets in the prior quarter. Absent these merger and acquisition-related costs, non-interest expense would have increased $10.0 million, or 9.1%, primarily attributable to the additional operating costs for a full quarter of METR and 5/3 branches converted early during the second quarter. The efficiency ratio* improved to 55.4%, compared to 56.4%.
Credit Quality
Credit quality results continued to reflect satisfactory performance and slightly increased non-performing loan levels and total delinquency levels. The ratio of non-performing loans and OREO to total loans and OREO was flat at 0.95%, and for the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO decreased 3 basis points to 1.15%. Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans increased 9 basis points to 1.02%, compared to 0.93% at March 31, 2016. The increase in originated delinquency primarily relates to loans 30 days past due.
Net charge-offs totaled $10.1 million, or 0.28% annualized of total average loans, compared to $6.0 million, or 0.18% annualized. For the originated portfolio, net charge-offs were $9.9 million, or 0.35% annualized of total average originated loans, compared to $5.9 million or 0.21% annualized. The increase in net charge-offs during the quarter was caused by $4.0 million of net charge-offs from a single commercial relationship involving a borrower alleged to have falsified documents and financial information over an extended period of time. The ratio of the allowance for loan losses to total originated loans was stable at 1.26% at June 30, 2016. The provision for loan losses totaled $16.6 million, compared to $11.8 million in the prior quarter, with the increase driven by the above-mentioned charge-off.
June 2016 Year-To-Date Results – Comparison to Prior Year-To-Date Period
(All comparisons refer to the first six months of 2015, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances acquired via acquisitions.)
Results include the impact from the acquisition of Fifth Third Bank branches (5/3) on April 22, 2016, Metro Bancorp, Inc. (METR) on February 13, 2016, and the acquisition of five Bank of America branches (BofA) on September 19, 2015.
Net Interest Income/Loans/Deposits
Net interest income on a FTE basis* totaled $300.0 million, increasing $50.7 million, or 20.3%, reflecting average earning asset growth of $3.2 billion, or 22.0%. The reported net interest margin was 3.41%, compared to 3.46%. The core net interest margin* narrowed 4 basis points to 3.39%, due to the extended low interest rate environment and competitive landscape for earning assets.
Average loans totaled $13.8 billion and increased $2.4 billion, or 20.9%, including the impact of acquired METR, 5/3 and BofA balances. Organic growth in total average loans equaled $926 million, or 8.1%. Organic growth in average commercial loans totaled $554 million, or 8.7%, and organic growth in average consumer loans was $368 million or 7.4%. Total organic commercial loan growth was led by the increased production levels from the metropolitan markets of Pittsburgh, Baltimore and Cleveland. Total average consumer loan growth was led by foot-print wide growth in the residential and indirect portfolios.
Average deposits and customer repurchase agreements totaled $15.2 billion and increased $2.8 billion, or 22.1%, due to acquired METR, 5/3 and BofA balances and average organic growth of $725 million or 5.8%. On an organic basis, average total transaction deposits and customer repurchase agreements increased $834 million or 8.4%. Total loans as a percentage of deposits and customer repurchase agreements was 92.1% at June 30, 2016.
Non-Interest Income
Non-interest income totaled $97.5 million, increasing $19.5 million or 25.0%. Non-interest income reflects the benefit of the METR, 5/3 and BofA acquisitions and strong organic growth from capital markets, mortgage banking, wealth management and positive consumer banking revenue trends.
Non-Interest Expense
Non-interest expense totaled $266.3 million, increasing $75.1 million, or 39.3%. The first six months of 2016 included merger costs of $35.5 million and a $2.6 million impairment charge on acquired other assets. Absent these items and merger costs of $0.4 million in the first six months of 2015, total non-interest expense increased $37.4 million, or 19.6%, compared to the first six months of 2015, with the increase primarily attributable to the expanded operations of METR, 5/3 and BofA. The efficiency ratio* was 55.9%, improved slightly from 56.3% in the first six months of 2015.
Credit Quality
Credit quality results continued to reflect satisfactory performance with slightly increased non-performing loan and total delinquency levels. For the originated portfolio, non-performing loans and OREO to total loans and OREO was 1.15%, compared to 1.05%, and total originated delinquency increased sixteen basis points to 1.02% at June 30, 2016. The increase in originated non-performing levels was due to normal migration at this stage of the economic cycle.
Net charge-offs for the first six months totaled $16.1 million, or 0.23% annualized of total average loans, compared to 0.21% annualized in the prior-year period. Net originated charge-offs were 0.28% annualized of total average originated loans, compared to 0.23% annualized. For the originated portfolio, the allowance for loan losses to total originated loans was 1.26%, compared to 1.21% at June 30, 2015, reflecting additional reserves related to the normal credit migration in this stage of the economic cycle. The ratio of the allowance for loan losses to total loans decreased 7 basis points to 1.06%, with the movement due to additional loan balances from acquisitions without a corresponding allowance for loan losses in accordance with accounting for business combinations. The provision for loan losses was $28.4 million, compared to $17.0 million in the prior-year period. The increase is attributable to strong originated loan growth and limited credit migration along with the above-mentioned charge-off.
Capital Position
The tangible common equity to tangible assets ratio* was 6.68%, compared to 6.93% at March 31, 2016. The book value per common share increased to $11.61, from $11.50 at March 31, 2016. The tangible book value per common share* increased to $6.40, from $6.36 at March 31, 2016. The common dividend payout ratio for the second quarter of 2016 was 64.7%.
* Non-GAAP Financial Measures
F.N.B. Corporation uses non-GAAP financial measures, such as operating net income available to common stockholders, operating net income per diluted common share, net interest income on a FTE basis, core net interest margin, efficiency ratio, tangible book value per common share and the ratio of tangible common equity to tangible assets, to provide information useful to investors in understanding F.N.B. Corporation's operating performance and trends, and to facilitate comparisons with the performance of F.N.B. Corporation's peers. The non-GAAP financial measures used by F.N.B. Corporation 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, F.N.B. Corporation's reported results prepared in accordance with U.S. GAAP. Reconciliations of GAAP to non-GAAP operating measures to the most directly comparable U.S. GAAP financial measures are included in the tables at the end of this release under the caption "Non-GAAP Financial Measures."
Operating net income is a non-GAAP measure used by management to measure performance in operating the business that management believes provides investors with the ability to better understand recurring business performance and the underlying trends produced by core business activities.
We believe merger expenses are not organic costs to run our operations and facilities. These charges represent expenses to either satisfy contractual obligations of acquired entities without any useful benefit to F.N.B Corporation or to convert and consolidate customer records onto the F.N.B. platforms. These costs are unique to each transaction based on the contracts in existence at the merger date.
Interest income amounts are reflected on an FTE basis which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35.0% for each period presented. The Corporation believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.
Conference Call
F.N.B. Corporation will host a conference call to discuss financial results for the second quarter of 2016 on Thursday, July 21, 2016, at 2:00 p.m. Eastern Time. Participating callers may access the call by dialing (844) 802-2440 or (412) 317-5133 for international callers. Participants should ask to be joined into the F.N.B. Corporation call. The Webcast and presentation materials may be accessed through the "About Us - Investor Relations & Shareholder Services" section of the Corporation's Web site at www.fnbcorporation.com.
A replay of the call will be available shortly after the completion of the call on the day of the call until midnight ET on Thursday, July 28, 2016. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10088077. Following the call, a transcript of the call and the related presentation materials will be posted to 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 (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in six states and three major metropolitan areas. It holds a top retail deposit market share in Pittsburgh, PA, Baltimore, MD, and Cleveland, OH. The Company has total assets of $21.2 billion and more than 300 banking offices throughout Pennsylvania, Maryland, Ohio and West Virginia. F.N.B. provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network which is led by its largest affiliate, First National Bank of Pennsylvania, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, international banking, business credit, capital markets and lease financing. The consumer banking segment provides a full line of
consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. F.N.B.'s wealth management services include asset management, private banking and insurance. The Company also operates Regency Finance Company, which has more than 70 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee. The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor's MidCap 400 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation web site at www.fnbcorporation.com.
Cautionary Statement Regarding Forward-looking Information
We make statements in this press release and the related conference call, and may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, capital levels, liquidity levels, asset levels, asset quality and other matters regarding or affecting F.N.B. Corporation and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and
uncertainties, which change over time.
Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance.
Our forward-looking statements are subject to the following principal risks and uncertainties:
We provide greater detail regarding these and other factors in our 2015 Form 10-K, including the Risk Factors section of that report, and our subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.
DATA SHEETS FOLLOW
F.N.B. CORPORATION |
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(Unaudited) |
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(Dollars in thousands, except per share data) |
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| Percent Variance | ||
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| 2Q16 - |
| 2Q16 - |
Statement of earnings |
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| 2Q16 |
| 1Q16 |
| 2Q15 |
| 1Q16 |
| 2Q15 | ||
Interest income |
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| $170,931 |
| $155,754 |
| $135,448 |
| 9.7 |
| 26.2 | |
Interest expense |
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| 16,562 |
| 15,400 |
| 11,681 |
| 7.5 |
| 41.8 | |
Net interest income |
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| 154,369 |
| 140,354 |
| 123,767 |
| 10.0 |
| 24.7 | ||
Taxable equivalent adjustment |
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| 2,791 |
| 2,463 |
| 1,805 |
| 13.3 |
| 54.6 | ||
Net interest income (FTE) (1) |
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| 157,160 |
| 142,817 |
| 125,572 |
| 10.0 |
| 25.2 | ||
Provision for credit losses |
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| 16,640 |
| 11,768 |
| 8,864 |
| 41.4 |
| 87.7 | ||
Net interest income after provision (FTE) |
| 140,520 |
| 131,049 |
| 116,708 |
| 7.2 |
| 20.4 | |||
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Service charges |
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| 26,396 |
| 21,276 |
| 17,514 |
| 24.1 |
| 50.7 | |
Trust income |
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| 5,405 |
| 5,282 |
| 5,432 |
| 2.3 |
| -0.5 | |
Insurance commissions and fees |
| 4,105 |
| 4,921 |
| 3,559 |
| -16.6 |
| 15.4 | |||
Securities commissions and fees |
| 3,622 |
| 3,374 |
| 3,597 |
| 7.4 |
| 0.7 | |||
Mortgage banking operations |
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| 2,753 |
| 1,595 |
| 2,516 |
| 72.6 |
| 9.4 | ||
Net securities gains |
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| 226 |
| 71 |
| 14 |
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Other |
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| 8,904 |
| 9,525 |
| 7,120 |
| -6.5 |
| 25.1 | |
Total non-interest income |
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| 51,411 |
| 46,044 |
| 39,752 |
| 11.7 |
| 29.3 | ||
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Salaries and employee benefits |
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| 61,329 |
| 56,425 |
| 50,431 |
| 8.7 |
| 21.6 | ||
Occupancy and equipment |
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| 20,207 |
| 17,822 |
| 16,170 |
| 13.4 |
| 25.0 | ||
FDIC insurance |
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| 5,103 |
| 3,968 |
| 2,783 |
| 28.6 |
| 83.4 | |
Amortization of intangibles |
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| 3,388 |
| 2,649 |
| 1,999 |
| 27.9 |
| 69.4 | ||
Other real estate owned |
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| 172 |
| 1,409 |
| 1,580 |
| -87.8 |
| -89.1 | ||
Merger, acquisition and severance-related |
| 10,551 |
| 24,940 |
| 371 |
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Other |
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| 28,879 |
| 29,435 |
| 23,165 |
| -1.9 |
| 24.7 | |
Total non-interest expense |
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| 129,629 |
| 136,648 |
| 96,499 |
| -5.1 |
| 34.3 | ||
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Income before income taxes |
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| 62,302 |
| 40,445 |
| 59,961 |
| 54.0 |
| 3.9 | ||
Taxable equivalent adjustment |
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| 2,791 |
| 2,463 |
| 1,805 |
| 13.3 |
| 54.6 | ||
Income taxes |
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| 18,211 |
| 11,850 |
| 18,025 |
| 53.7 |
| 1.0 | |
Net income |
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| 41,300 |
| 26,132 |
| 40,131 |
| 58.0 |
| 2.9 | |
Preferred stock dividends |
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| 2,010 |
| 2,010 |
| 2,010 |
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Net income available to common stockholders | $39,290 |
| $24,122 |
| $38,121 |
| 62.9 |
| 3.1 | ||||
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Earnings per common share: |
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Basic |
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| $0.19 |
| $0.12 |
| $0.22 |
| 58.3 |
| -13.6 | |
Diluted |
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| $0.19 |
| $0.12 |
| $0.22 |
| 58.3 |
| -13.6 | |
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Reconciliation of Operating Net Income: |
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Net income available to common stockholders |
| $39,290 |
| $24,122 |
| $38,121 |
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Merger, acquisition and severance costs |
| 10,551 |
| 24,940 |
| 371 |
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Tax benefit of merger, acquisition and severance costs | (3,693) |
| (8,411) |
| (130) |
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Operating net income available to common stockholders | $46,148 |
| $40,651 |
| $38,362 |
| 13.5 |
| 20.3 | ||||
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Net income per diluted common share |
| $0.19 |
| $0.12 |
| $0.22 |
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Effect of merger, acquisition and severance costs | 0.05 |
| 0.13 |
| 0.00 |
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Tax benefit of merger, acquisition and severance costs | (0.02) |
| (0.04) |
| (0.00) |
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Operating net income per diluted common share | $0.22 |
| $0.21 |
| $0.22 |
| 4.8 |
| 0.0 | ||||
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Common stock data |
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Average diluted shares outstanding |
| 211,675,449 |
| 194,877,922 |
| 176,361,840 |
| 8.6 |
| 20.0 | |||
Period end shares outstanding |
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| 210,120,601 |
| 209,733,291 |
| 175,286,980 |
| 0.2 |
| 19.9 | ||
Book value per common share |
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| $11.61 |
| $11.50 |
| $11.18 |
| 0.9 |
| 3.8 | ||
Tangible book value per common share (4) |
| $6.40 |
| $6.36 |
| $6.22 |
| 0.6 |
| 2.9 | |||
Dividend payout ratio (common) |
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| 64.68% |
| 104.86% |
| 55.51% |
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F.N.B. CORPORATION |
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(Unaudited) |
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(Dollars in thousands, except per share data) |
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| For the Six Months |
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| Ended June 30, |
| Percent | ||
Statement of earnings | 2016 |
| 2015 |
| Variance |
Interest income | $326,685 |
| $268,817 |
| 21.5 |
Interest expense | 31,962 |
| 23,129 |
| 38.2 |
Net interest income | 294,723 |
| 245,688 |
| 20.0 |
Taxable equivalent adjustment | 5,254 |
| 3,588 |
| 46.4 |
Net interest income (FTE) (1) | 299,977 |
| 249,276 |
| 20.3 |
Provision for credit losses | 28,408 |
| 17,000 |
| 67.1 |
Net interest income after provision (FTE) | 271,569 |
| 232,276 |
| 16.9 |
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Service charges | 47,672 |
| 33,331 |
| 43.0 |
Trust income | 10,687 |
| 10,593 |
| 0.9 |
Insurance commissions and fees | 9,026 |
| 7,928 |
| 13.8 |
Securities commissions and fees | 6,996 |
| 6,654 |
| 5.2 |
Mortgage banking operations | 4,348 |
| 4,315 |
| 0.8 |
Net securities gains | 297 |
| 5 |
| n/m |
Other | 18,429 |
| 15,108 |
| 22.0 |
Total non-interest income | 97,455 |
| 77,934 |
| 25.0 |
|
|
|
|
|
|
Salaries and employee benefits | 117,754 |
| 99,700 |
| 18.1 |
Occupancy and equipment | 38,029 |
| 32,794 |
| 16.0 |
FDIC insurance | 9,071 |
| 6,472 |
| 40.2 |
Amortization of intangibles | 6,037 |
| 4,114 |
| 46.8 |
Other real estate owned | 1,580 |
| 2,489 |
| -36.5 |
Merger, acquisition and severance-related | 35,491 |
| 371 |
| n/m |
Other | 58,315 |
| 45,214 |
| 29.0 |
Total non-interest expense | 266,277 |
| 191,154 |
| 39.3 |
|
|
|
|
|
|
Income before income taxes | 102,747 |
| 119,056 |
| -13.7 |
Taxable equivalent adjustment | 5,254 |
| 3,588 |
| 46.4 |
Income taxes | 30,061 |
| 34,994 |
| -14.1 |
Net income | 67,432 |
| 80,474 |
| -16.2 |
Preferred stock dividends | 4,020 |
| 4,020 |
|
|
Net income available to common stockholders | $63,412 |
| $76,454 |
| -17.1 |
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
Basic | $0.31 |
| $0.44 |
| -29.5 |
Diluted | $0.31 |
| $0.43 |
| -25.6 |
|
|
|
|
|
|
Reconciliation of Operating Net Income: |
|
|
|
|
|
Net income available to common stockholders | $63,412 |
| $76,454 |
|
|
Merger, acquisition and severance costs | 35,491 |
| 371 |
|
|
Tax benefit of merger, acquisition and severance costs | (12,104) |
| (130) |
|
|
Operating net income available to common stockholders | $86,799 |
| $76,695 |
| 13.2 |
|
|
|
|
|
|
Net income per diluted common share | $0.31 |
| $0.43 |
|
|
Effect of merger, acquisition and severance costs | 0.17 |
| 0.00 |
|
|
Tax benefit of merger, acquisition and severance costs | (0.06) |
| (0.00) |
|
|
Operating net income per diluted common share | $0.43 |
| $0.44 |
| -2.3 |
|
|
|
|
|
|
Common stock data |
|
|
|
|
|
Average diluted shares outstanding | 203,271,405 |
| 176,096,938 |
| 15.4 |
Period end shares outstanding | 210,120,601 |
| 175,286,980 |
| 19.9 |
Book value per common share | $11.61 |
| $11.18 |
| 3.8 |
Tangible book value per common share (4) | $6.40 |
| $6.22 |
| 2.9 |
Dividend payout ratio (common) | 79.97% |
| 55.13% |
|
|
F.N.B. CORPORATION |
|
|
|
|
|
|
|
|
|
|
| ||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| |
(Dollars in thousands, except per share data) |
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Percent Variance | ||
|
|
|
|
|
|
|
|
|
|
| 2Q16 - |
| 2Q16 - |
Balance Sheet (at period end) |
| 2Q16 |
| 1Q16 |
| 2Q15 |
| 1Q16 |
| 2Q15 | |||
Assets |
|
|
|
|
|
|
|
|
|
|
|
| |
Cash and due from banks |
|
| $285,783 |
| $260,426 |
| $196,189 |
| 9.7 |
| 45.7 | ||
Interest bearing deposits with banks |
| 113,244 |
| 85,519 |
| 41,290 |
| 32.4 |
| 174.3 | |||
Cash and cash equivalents |
|
| 399,027 |
| 345,945 |
| 237,479 |
| 15.3 |
| 68.0 | ||
Securities available for sale |
|
| 2,133,662 |
| 2,099,343 |
| 1,618,620 |
| 1.6 |
| 31.8 | ||
Securities held to maturity |
|
| 2,064,305 |
| 1,776,020 |
| 1,518,060 |
| 16.2 |
| 36.0 | ||
Residential mortgage loans held for sale |
| 12,062 |
| 7,683 |
| 6,711 |
| 57.0 |
| 79.7 | |||
Loans and leases, net of unearned income |
| 14,563,128 |
| 14,165,599 |
| 11,626,787 |
| 2.8 |
| 25.3 | |||
Allowance for credit losses |
|
| (154,369) |
| (147,800) |
| (131,141) |
| 4.4 |
| 17.7 | ||
Net loans and leases |
|
| 14,408,759 |
| 14,017,799 |
| 11,495,646 |
| 2.8 |
| 25.3 | ||
Premises and equipment, net |
|
| 224,805 |
| 208,672 |
| 167,010 |
| 7.7 |
| 34.6 | ||
Goodwill |
|
|
| 1,021,247 |
| 1,006,934 |
| 831,333 |
| 1.4 |
| 22.8 | |
Core deposit and other intangible assets, net |
| 83,744 |
| 80,116 |
| 45,057 |
| 4.5 |
| 85.9 | |||
Bank owned life insurance |
|
| 328,127 |
| 310,106 |
| 304,318 |
| 5.8 |
| 7.8 | ||
Other assets |
|
|
| 539,229 |
| 471,906 |
| 374,367 |
| 14.3 |
| 44.0 | |
Total Assets |
|
|
| $21,214,967 |
| $20,324,524 |
| $16,598,601 |
| 4.4 |
| 27.8 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| |
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
| |
Non-interest bearing demand |
|
| $3,969,115 |
| $3,896,782 |
| $2,813,488 |
| 1.9 |
| 41.1 | ||
Interest bearing demand |
|
| 6,657,651 |
| 6,512,461 |
| 5,226,703 |
| 2.2 |
| 27.4 | ||
Savings |
|
|
| 2,284,159 |
| 2,291,656 |
| 1,730,359 |
| -0.3 |
| 32.0 | |
Certificates and other time deposits |
| 2,617,637 |
| 2,689,584 |
| 2,587,577 |
| -2.7 |
| 1.2 | |||
Total Deposits |
|
| 15,528,561 |
| 15,390,483 |
| 12,358,127 |
| 0.9 |
| 25.7 | ||
Short-term borrowings |
|
| 2,260,411 |
| 1,563,888 |
| 1,507,582 |
| 44.5 |
| 49.9 | ||
Long-term borrowings |
|
| 656,844 |
| 657,445 |
| 542,578 |
| -0.1 |
| 21.1 | ||
Other liabilities |
|
|
| 223,813 |
| 194,687 |
| 124,543 |
| 15.0 |
| 79.7 | |
Total Liabilities |
|
|
| 18,669,630 |
| 17,806,503 |
| 14,532,830 |
| 4.8 |
| 28.5 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
| ||
Preferred Stock |
|
|
| 106,882 |
| 106,882 |
| 106,882 |
| 0.0 |
| 0.0 | |
Common stock |
|
|
| 2,116 |
| 2,112 |
| 1,765 |
| 0.2 |
| 19.9 | |
Additional paid-in capital |
|
| 2,220,243 |
| 2,214,959 |
| 1,803,347 |
| 0.2 |
| 23.1 | ||
Retained earnings |
|
| 255,921 |
| 242,045 |
| 210,422 |
| 5.7 |
| 21.6 | ||
Accumulated other comprehensive loss |
| (25,459) |
| (33,651) |
| (43,953) |
| -24.3 |
| -42.1 | |||
Treasury stock |
|
|
| (14,366) |
| (14,326) |
| (12,692) |
| 0.3 |
| 13.2 | |
Total Stockholders' Equity |
|
| 2,545,337 |
| 2,518,021 |
| 2,065,771 |
| 1.1 |
| 23.2 | ||
Total Liabilities and Stockholders' Equity |
| $21,214,967 |
| $20,324,524 |
| $16,598,601 |
| 4.4 |
| 27.8 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average balances |
|
|
|
|
|
|
|
|
|
|
| ||
Total assets |
|
|
| $20,780,413 |
| $18,916,639 |
| $16,457,166 |
| 9.9 |
| 26.3 | |
Earning assets |
|
|
| 18,496,395 |
| 16,898,563 |
| 14,661,142 |
| 9.5 |
| 26.2 | |
Interest bearing deposits with banks |
| 109,432 |
| 123,445 |
| 75,955 |
| -11.4 |
| 44.1 | |||
Securities |
|
|
| 4,026,101 |
| 3,526,198 |
| 3,045,009 |
| 14.2 |
| 32.2 | |
Residential mortgage loans held for sale |
| 15,734 |
| 6,128 |
| 8,049 |
| 156.8 |
| 95.5 | |||
Loans and leases, net of unearned income |
| 14,345,128 |
| 13,242,792 |
| 11,532,129 |
| 8.3 |
| 24.4 | |||
Allowance for credit losses |
|
| 150,487 |
| 142,943 |
| 131,431 |
| 5.3 |
| 14.5 | ||
Goodwill and intangibles |
|
| 1,100,129 |
| 974,672 |
| 875,314 |
| 12.9 |
| 25.7 | ||
Deposits and customer repurchase agreements (6) | 15,972,093 |
| 14,494,799 |
| 12,579,811 |
| 10.2 |
| 27.0 | ||||
Short-term borrowings |
|
| 1,400,109 |
| 1,260,466 |
| 1,127,376 |
| 11.1 |
| 24.2 | ||
Long-term borrowings |
|
| 657,059 |
| 648,490 |
| 541,992 |
| 1.3 |
| 21.2 | ||
Total stockholders' equity |
|
| 2,532,226 |
| 2,329,715 |
| 2,066,024 |
| 8.7 |
| 22.6 | ||
Preferred stockholders' equity |
|
| 106,882 |
| 106,882 |
| 106,882 |
| 0.0 |
| 0.0 |
F.N.B. CORPORATION |
|
|
|
|
|
|
| ||
(Unaudited) |
|
|
|
|
|
|
|
| |
(Dollars in thousands, except per share data) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Six Months |
|
| ||
|
|
|
|
| Ended June 30, |
| Percent | ||
Balance Sheet (at period end) |
| 2016 |
| 2015 |
| Variance | |||
Assets |
|
|
|
|
|
|
|
| |
Cash and due from banks |
|
| $285,783 |
| $196,189 |
| 45.7 | ||
Interest bearing deposits with banks |
| 113,244 |
| 41,290 |
| 174.3 | |||
Cash and cash equivalents |
|
| 399,027 |
| 237,479 |
| 68.0 | ||
Securities available for sale |
|
| 2,133,662 |
| 1,618,620 |
| 31.8 | ||
Securities held to maturity |
|
| 2,064,305 |
| 1,518,060 |
| 36.0 | ||
Residential mortgage loans held for sale |
| 12,062 |
| 6,711 |
| 79.7 | |||
Loans and leases, net of unearned income |
| 14,563,128 |
| 11,626,787 |
| 25.3 | |||
Allowance for credit losses |
|
| (154,369) |
| (131,141) |
| 17.7 | ||
Net loans and leases |
|
| 14,408,759 |
| 11,495,646 |
| 25.3 | ||
Premises and equipment, net |
|
| 224,805 |
| 167,010 |
| 34.6 | ||
Goodwill |
|
|
| 1,021,247 |
| 831,333 |
| 22.8 | |
Core deposit and other intangible assets, net |
| 83,744 |
| 45,057 |
| 85.9 | |||
Bank owned life insurance |
|
| 328,127 |
| 304,318 |
| 7.8 | ||
Other assets |
|
|
| 539,229 |
| 374,367 |
| 44.0 | |
Total Assets |
|
|
| $21,214,967 |
| $16,598,601 |
| 27.8 | |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
| |
Deposits: |
|
|
|
|
|
|
|
| |
Non-interest bearing demand |
|
| $3,969,115 |
| $2,813,488 |
| 41.1 | ||
Interest bearing demand |
|
| 6,657,651 |
| 5,226,703 |
| 27.4 | ||
Savings |
|
|
| 2,284,159 |
| 1,730,359 |
| 32.0 | |
Certificates and other time deposits |
| 2,617,637 |
| 2,587,577 |
| 1.2 | |||
Total Deposits |
|
| 15,528,561 |
| 12,358,127 |
| 25.7 | ||
Short-term borrowings |
|
| 2,260,411 |
| 1,507,582 |
| 49.9 | ||
Long-term borrowings |
|
| 656,844 |
| 542,578 |
| 21.1 | ||
Other liabilities |
|
|
| 223,813 |
| 124,543 |
| 79.7 | |
Total Liabilities |
|
|
| 18,669,630 |
| 14,532,830 |
| 28.5 | |
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
| ||
Preferred Stock |
|
|
| 106,882 |
| 106,882 |
| 0.0 | |
Common stock |
|
|
| 2,116 |
| 1,765 |
| 19.9 | |
Additional paid-in capital |
|
| 2,220,243 |
| 1,803,347 |
| 23.1 | ||
Retained earnings |
|
| 255,921 |
| 210,422 |
| 21.6 | ||
Accumulated other comprehensive loss |
| (25,459) |
| (43,953) |
| -42.1 | |||
Treasury stock |
|
|
| (14,366) |
| (12,692) |
| 13.2 | |
Total Stockholders' Equity |
|
| 2,545,337 |
| 2,065,771 |
| 23.2 | ||
Total Liabilities and Stockholders' Equity |
| $21,214,967 |
| $16,598,601 |
| 27.8 | |||
|
|
|
|
|
|
|
|
|
|
Selected average balances |
|
|
|
|
|
|
| ||
Total assets |
|
|
| $19,848,526 |
| $16,303,055 |
| 21.7 | |
Earning assets |
|
|
| 17,697,479 |
| 14,505,373 |
| 22.0 | |
Interest bearing deposits with banks |
| 116,439 |
| 75,832 |
| 53.5 | |||
Securities |
|
|
| 3,776,149 |
| 3,014,550 |
| 25.3 | |
Residential mortgage loans held for sale |
| 10,931 |
| 6,450 |
| 69.5 | |||
Loans and leases, net of unearned income |
| 13,793,960 |
| 11,408,541 |
| 20.9 | |||
Allowance for credit losses |
|
| 146,715 |
| 130,071 |
| 12.8 | ||
Goodwill and intangibles |
|
| 1,037,400 |
| 875,753 |
| 18.5 | ||
Deposits and customer repurchase agreements (6) | 15,233,446 |
| 12,471,785 |
| 22.1 | ||||
Short-term borrowings |
|
| 1,330,288 |
| 1,090,860 |
| 21.9 | ||
Long-term borrowings |
|
| 652,775 |
| 541,771 |
| 20.5 | ||
Total stockholders' equity |
|
| 2,430,970 |
| 2,053,214 |
| 18.4 | ||
Preferred stockholders' equity |
|
| 106,882 |
| 106,882 |
| 0.0 |
F.N.B. CORPORATION |
|
|
|
|
|
|
|
|
|
|
| ||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Percent Variance | ||
|
|
|
|
|
|
|
|
|
|
| 2Q16 - |
| 2Q16 - |
|
|
|
|
| 2Q16 |
| 1Q16 |
| 2Q15 |
| 1Q16 |
| 2Q15 |
Performance ratios |
|
|
|
|
|
|
|
|
|
|
| ||
Return on average equity |
|
| 6.56% |
| 4.51% |
| 7.79% |
|
|
|
| ||
Return on average tangible equity (2) (4) |
| 12.25% |
| 8.32% |
| 14.00% |
|
|
|
| |||
Return on average tangible common equity (2) (4) | 12.63% |
| 8.39% |
| 14.63% |
|
|
| |||||
Return on average assets |
|
| 0.80% |
| 0.56% |
| 0.98% |
|
|
|
| ||
Return on average tangible assets (3) (4) |
| 0.90% |
| 0.63% |
| 1.08% |
|
|
|
| |||
Net interest margin (FTE) (1) |
|
| 3.41% |
| 3.40% |
| 3.43% |
|
|
|
| ||
Yield on earning assets (FTE) (1) |
| 3.77% |
| 3.76% |
| 3.75% |
|
|
|
| |||
Cost of interest-bearing liabilities |
| 0.47% |
| 0.48% |
| 0.41% |
|
|
|
| |||
Cost of funds |
|
|
| 0.37% |
| 0.38% |
| 0.33% |
|
|
|
| |
Efficiency ratio (FTE) (1) (5) |
|
| 55.45% |
| 56.38% |
| 55.99% |
|
|
|
| ||
Effective tax rate |
|
|
| 30.60% |
| 31.20% |
| 30.99% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios |
|
|
|
|
|
|
|
|
|
|
|
| |
Equity / assets (period end) |
|
| 12.00% |
| 12.39% |
| 12.45% |
|
|
|
| ||
Leverage ratio |
|
|
| 7.72% |
| 8.50% |
| 8.24% |
|
|
|
| |
Tangible equity / tangible assets (period end) (4) | 7.21% |
| 7.48% |
| 7.61% |
|
|
| |||||
Tangible common equity / tangible assets (period end) (4) | 6.68% |
| 6.93% |
| 6.93% |
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at period end |
|
|
|
|
|
|
|
|
|
|
| ||
Loans and Leases: |
|
|
|
|
|
|
|
|
|
|
| ||
Commercial real estate |
|
| $5,355,625 |
| $5,253,660 |
| $3,852,607 |
| 1.9 |
| 39.0 | ||
Commercial and industrial |
|
| 3,079,605 |
| 3,046,267 |
| 2,453,868 |
| 1.1 |
| 25.5 | ||
Commercial leases |
|
| 200,350 |
| 202,605 |
| 190,881 |
| -1.1 |
| 5.0 | ||
Commercial loans and leases |
|
| 8,635,580 |
| 8,502,532 |
| 6,497,356 |
| 1.6 |
| 32.9 | ||
Direct installment |
|
|
| 1,830,206 |
| 1,790,802 |
| 1,676,349 |
| 2.2 |
| 9.2 | |
Residential mortgages |
|
| 1,678,646 |
| 1,531,379 |
| 1,350,502 |
| 9.6 |
| 24.3 | ||
Indirect installment |
|
| 1,076,817 |
| 1,025,727 |
| 942,801 |
| 5.0 |
| 14.2 | ||
Consumer LOC |
|
|
| 1,290,053 |
| 1,261,493 |
| 1,118,970 |
| 2.3 |
| 15.3 | |
Other |
|
|
| 51,826 |
| 53,666 |
| 40,809 |
| -3.4 |
| 27.0 | |
Total loans and leases |
|
| $14,563,128 |
| $14,165,599 |
| $11,626,787 |
| 2.8 |
| 25.3 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
| |
Non-interest bearing deposits |
|
| $3,969,115 |
| $3,896,782 |
| $2,813,488 |
| 1.9 |
| 41.1 | ||
Interest bearing demand |
|
| 6,657,651 |
| 6,512,461 |
| 5,226,703 |
| 2.2 |
| 27.4 | ||
Savings |
|
|
| 2,284,159 |
| 2,291,656 |
| 1,730,359 |
| -0.3 |
| 32.0 | |
Certificates of deposit and other time deposits | 2,617,637 |
| 2,689,584 |
| 2,587,577 |
| -2.7 |
| 1.2 | ||||
Total deposits |
|
|
| 15,528,562 |
| 15,390,483 |
| 12,358,127 |
| 0.9 |
| 25.7 | |
Customer repurchase agreements (6) |
| 279,730 |
| 297,562 |
| 212,380 |
| -6.0 |
| 31.7 | |||
Total deposits and customer repurchase agreements (6) | $15,808,292 |
| $15,688,045 |
| $12,570,507 |
| 0.8 |
| 25.8 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balances |
|
|
|
|
|
|
|
|
|
|
| ||
Loans and Leases: |
|
|
|
|
|
|
|
|
|
|
| ||
Commercial real estate |
|
| $5,276,960 |
| $4,751,188 |
| $3,855,761 |
| 11.1 |
| 36.9 | ||
Commercial and industrial |
|
| 3,062,936 |
| 2,823,995 |
| 2,425,800 |
| 8.5 |
| 26.3 | ||
Commercial leases |
|
| 201,481 |
| 204,220 |
| 186,918 |
| -1.3 |
| 7.8 | ||
Commercial loans and leases |
|
| 8,541,377 |
| 7,779,403 |
| 6,468,479 |
| 9.8 |
| 32.0 | ||
Direct installment |
|
|
| 1,807,048 |
| 1,748,350 |
| 1,665,245 |
| 3.4 |
| 8.5 | |
Residential mortgages |
|
| 1,615,438 |
| 1,458,402 |
| 1,313,181 |
| 10.8 |
| 23.0 | ||
Indirect installment |
|
| 1,044,870 |
| 1,006,943 |
| 924,463 |
| 3.8 |
| 13.0 | ||
Consumer LOC |
|
|
| 1,281,636 |
| 1,205,762 |
| 1,113,621 |
| 6.3 |
| 15.1 | |
Other |
|
|
| 54,759 |
| 43,932 |
| 47,140 |
| 24.6 |
| 16.2 | |
Total loans and leases |
|
| $14,345,128 |
| $13,242,792 |
| $11,532,129 |
| 8.3 |
| 24.4 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
| |
Non-interest bearing deposits |
|
| $3,941,857 |
| $3,449,230 |
| $2,776,955 |
| 14.3 |
| 41.9 | ||
Interest bearing demand |
|
| 6,744,744 |
| 6,116,380 |
| 4,746,091 |
| 10.3 |
| 42.1 | ||
Savings |
|
|
| 2,292,185 |
| 2,053,764 |
| 1,744,837 |
| 11.6 |
| 31.4 | |
Certificates of deposit and other time deposits | 2,676,851 |
| 2,576,387 |
| 2,588,778 |
| 3.9 |
| 3.4 | ||||
Total deposits |
|
|
| 15,655,637 |
| 14,195,761 |
| 11,856,661 |
| 10.3 |
| 32.0 | |
Customer repurchase agreements (6) |
| 316,456 |
| 299,038 |
| 723,150 |
| 5.8 |
| -56.2 | |||
Total deposits and customer repurchase agreements (6) | $15,972,093 |
| $14,494,799 |
| $12,579,811 |
| 10.2 |
| 27.0 |
F.N.B. CORPORATION |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
| For the Six Months |
|
| ||
| Ended June 30, |
| Percent | ||
| 2016 |
| 2015 |
| Variance |
Performance ratios |
|
|
|
|
|
Return on average equity | 5.58% |
| 7.90% |
|
|
Return on average tangible equity (2) (4) | 10.34% |
| 14.28% |
|
|
Return on average tangible common equity (2) (4) | 10.57% |
| 14.95% |
|
|
Return on average assets | 0.68% |
| 1.00% |
|
|
Return on average tangible assets (3) (4) | 0.77% |
| 1.10% |
|
|
Net interest margin (FTE) (1) | 3.41% |
| 3.46% |
|
|
Yield on earning assets (FTE) (1) | 3.77% |
| 3.78% |
|
|
Cost of interest-bearing liabilities | 0.47% |
| 0.41% |
|
|
Cost of funds | 0.37% |
| 0.33% |
|
|
Efficiency ratio (FTE) (1) (5) | 55.88% |
| 56.29% |
|
|
Effective tax rate | 30.83% |
| 30.31% |
|
|
|
|
|
|
|
|
Capital ratios |
|
|
|
|
|
Equity / assets (period end) | 12.00% |
| 12.45% |
|
|
Leverage ratio | 7.72% |
| 8.24% |
|
|
Tangible equity / tangible assets (period end) (4) | 7.21% |
| 7.61% |
|
|
Tangible common equity / tangible assets (period end) (4) | 6.68% |
| 6.93% |
|
|
|
|
|
|
|
|
Balances at period end |
|
|
|
|
|
Loans and Leases: |
|
|
|
|
|
Commercial real estate | $5,355,625 |
| $3,852,607 |
| 39.0 |
Commercial and industrial | 3,079,605 |
| 2,453,868 |
| 25.5 |
Commercial leases | 200,350 |
| 190,881 |
| 5.0 |
Commercial loans and leases | 8,635,580 |
| 6,497,356 |
| 32.9 |
Direct installment | 1,830,206 |
| 1,676,349 |
| 9.2 |
Residential mortgages | 1,678,646 |
| 1,350,502 |
| 24.3 |
Indirect installment | 1,076,817 |
| 942,801 |
| 14.2 |
Consumer LOC | 1,290,053 |
| 1,118,970 |
| 15.3 |
Other | 51,826 |
| 40,809 |
| 27.0 |
Total loans and leases | $14,563,128 |
| $11,626,787 |
| 25.3 |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing deposits | $3,969,115 |
| $2,813,488 |
| 41.1 |
Interest bearing demand | 6,657,651 |
| 5,226,703 |
| 27.4 |
Savings | 2,284,159 |
| 1,730,359 |
| 32.0 |
Certificates of deposit and other time deposits | 2,617,637 |
| 2,587,577 |
| 1.2 |
Total deposits | 15,528,562 |
| 12,358,127 |
| 25.7 |
Customer repurchase agreements (6) | 279,730 |
| 212,380 |
| 31.7 |
Total deposits and customer repurchase agreements (6) | $15,808,292 |
| $12,570,507 |
| 25.8 |
|
|
|
|
|
|
Average balances |
|
|
|
|
|
Loans and Leases: |
|
|
|
|
|
Commercial real estate | $5,048,341 |
| $3,821,108 |
| 32.1 |
Commercial and industrial | 2,909,198 |
| 2,389,871 |
| 21.7 |
Commercial leases | 202,851 |
| 182,445 |
| 11.2 |
Commercial loans and leases | 8,160,390 |
| 6,393,424 |
| 27.6 |
Direct installment | 1,777,699 |
| 1,656,346 |
| 7.3 |
Residential mortgages | 1,536,920 |
| 1,292,374 |
| 18.9 |
Indirect installment | 1,025,906 |
| 909,668 |
| 12.8 |
Consumer LOC | 1,243,699 |
| 1,111,657 |
| 11.9 |
Other | 49,346 |
| 45,072 |
| 9.5 |
Total loans and leases | $13,793,960 |
| $11,408,541 |
| 20.9 |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing deposits | $3,695,543 |
| $2,707,566 |
| 36.5 |
Interest bearing demand | 6,430,562 |
| 4,712,070 |
| 36.5 |
Savings | 2,172,975 |
| 1,680,916 |
| 29.3 |
Certificates of deposit and other time deposits | 2,626,619 |
| 2,594,632 |
| 1.2 |
Total deposits | 14,925,699 |
| 11,695,184 |
| 27.6 |
Customer repurchase agreements (6) | 307,747 |
| 776,602 |
| -60.4 |
Total deposits and customer repurchase agreements (6) | $15,233,446 |
| $12,471,785 |
| 22.1 |
F.N.B. CORPORATION |
|
|
|
|
|
|
|
|
|
|
| ||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Percent Variance | ||
|
|
|
|
|
|
|
|
|
|
| 2Q16 - |
| 2Q16 - |
Asset Quality Data |
|
| 2Q16 |
| 1Q16 |
| 2Q15 |
| 1Q16 |
| 2Q15 | ||
Non-Performing Assets |
|
|
|
|
|
|
|
|
|
|
| ||
Non-performing loans (7) |
|
|
|
|
|
|
|
|
|
|
| ||
Non-accrual loans |
|
| $67,475 |
| $63,036 |
| $45,396 |
| 7.0 |
| 48.6 | ||
Restructured loans |
|
| 22,542 |
| 21,453 |
| 22,916 |
| 5.1 |
| -1.6 | ||
Non-performing loans |
|
| 90,017 |
| 84,489 |
| 68,312 |
| 6.5 |
| 31.8 | ||
Other real estate owned (8) |
|
| 48,344 |
| 50,526 |
| 40,190 |
| -4.3 |
| 20.3 | ||
Total non-performing assets |
|
| $138,361 |
| $135,015 |
| $108,502 |
| 2.5 |
| 27.5 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans / total loans and leases |
| 0.62% |
| 0.60% |
| 0.59% |
|
|
|
| |||
Non-performing loans / total originated loans and |
|
|
|
|
| ||||||||
and leases (9) |
|
|
| 0.74% |
| 0.74% |
| 0.67% |
|
|
|
| |
Non-performing loans + OREO / total loans and |
|
|
|
|
| ||||||||
leases + OREO |
|
|
| 0.95% |
| 0.95% |
| 0.93% |
|
|
|
| |
Non-performing loans + OREO / total originated |
|
|
|
|
| ||||||||
loans and leases + OREO (9) |
|
| 1.15% |
| 1.18% |
| 1.05% |
|
|
|
| ||
Non-performing assets / total assets |
| 0.65% |
| 0.66% |
| 0.65% |
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance Rollforward |
|
|
|
|
|
|
|
|
|
|
| ||
Allowance for credit losses (originated portfolio) (9) |
|
|
|
|
| ||||||||
Balance at beginning of period |
| $142,220 |
| $135,285 |
| $121,247 |
| 5.1 |
| 17.3 | |||
Provision for credit losses |
|
| 16,384 |
| 12,840 |
| 8,744 |
| 27.6 |
| 87.4 | ||
Net loan charge-offs |
|
| (9,885) |
| (5,905) |
| (5,795) |
| 67.4 |
| 70.6 | ||
Allowance for credit losses (originated portfolio) (9) | 148,719 |
| 142,220 |
| 124,196 |
| 4.6 |
| 19.7 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses (acquired portfolio) (10) |
|
|
|
|
| ||||||||
Balance at beginning of period |
| 5,580 |
| 6,727 |
| 7,252 |
| -17.1 |
| -23.1 | |||
Provision for credit losses |
|
| 256 |
| (1,072) |
| 120 |
| -123.9 |
| 113.3 | ||
Net loan charge-offs |
|
| (186) |
| (75) |
| (427) |
| 148.0 |
| -56.4 | ||
Allowance for credit losses (acquired portfolio) (10) | 5,650 |
| 5,580 |
| 6,945 |
| 1.3 |
| -18.6 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses |
| $154,369 |
| $147,800 |
| $131,141 |
| 4.4 |
| 17.7 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses / total loans and leases | 1.06% |
| 1.04% |
| 1.13% |
|
|
|
| ||||
Allowance for credit losses (originated loans and leases) / |
|
|
|
|
| ||||||||
total originated loans and leases (9) |
| 1.26% |
| 1.26% |
| 1.21% |
|
|
|
| |||
Allowance for credit losses (originated loans and leases) / |
|
|
|
|
| ||||||||
total non-performing loans (7) |
|
| 169.89% |
| 170.43% |
| 181.81% |
|
|
|
| ||
Net loan charge-offs (annualized) / total average loans |
|
|
|
|
| ||||||||
and leases |
|
|
| 0.28% |
| 0.18% |
| 0.22% |
|
|
|
| |
Net loan charge-offs on originated loans and leases |
|
|
|
|
| ||||||||
(annualized) / total average originated loans and |
|
|
|
|
| ||||||||
leases (9) |
|
|
| 0.35% |
| 0.21% |
| 0.23% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency - Originated Portfolio (9) |
|
|
|
|
|
|
|
|
|
| |||
Loans 30-89 days past due |
|
| $48,706 |
| $36,711 |
| $36,581 |
| 32.7 |
| 33.1 | ||
Loans 90+ days past due |
|
| 6,186 |
| 6,120 |
| 5,917 |
| 1.1 |
| 4.5 | ||
Non-accrual loans |
|
|
| 64,998 |
| 61,997 |
| 45,396 |
| 4.8 |
| 43.2 | |
Total past due and non-accrual loans |
| $119,890 |
| $104,828 |
| $87,894 |
| 14.4 |
| 36.4 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total past due and non-accrual loans / total originated loans | 1.02% |
| 0.93% |
| 0.86% |
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo item: |
|
|
|
|
|
|
|
|
|
|
|
| |
Delinquency - Acquired Portfolio (10) (11) |
|
|
|
|
|
|
|
|
|
| |||
Loans 30-89 days past due |
|
| $42,939 |
| $44,651 |
| $20,838 |
| -3.8 |
| 106.1 | ||
Loans 90+ days past due |
|
| 47,085 |
| 47,913 |
| 30,154 |
| -1.7 |
| 56.1 | ||
Non-accrual loans |
|
|
| 2,477 |
| 1,039 |
| 0 |
| n/m |
| n/m | |
Total past due and non-accrual loans |
| $92,501 |
| $93,603 |
| $50,992 |
| -1.2 |
| 81.4 |
F.N.B. CORPORATION |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
| For the Six Months |
|
| ||
| Ended June 30, |
| Percent | ||
Asset Quality Data | 2016 |
| 2015 |
| Variance |
Non-Performing Assets |
|
|
|
|
|
Non-performing loans (7) |
|
|
|
|
|
Non-accrual loans | $67,475 |
| $45,396 |
| 48.6 |
Restructured loans | 22,542 |
| 22,916 |
| -1.6 |
Non-performing loans | 90,017 |
| 68,312 |
| 31.8 |
Other real estate owned (8) | 48,344 |
| 40,190 |
| 20.3 |
Non-performing loans and OREO | 138,361 |
| 108,502 |
| 27.5 |
Non-performing investments | 0 |
| 0 |
| n/m |
Total non-performing assets | $138,361 |
| $108,502 |
| 27.5 |
|
|
|
|
|
|
Non-performing loans / total loans and leases | 0.62% |
| 0.59% |
|
|
Non-performing loans / total originated loans and |
|
|
|
|
|
and leases (9) | 0.74% |
| 0.67% |
|
|
Non-performing loans + OREO / total loans and |
|
|
|
|
|
leases + OREO | 0.95% |
| 0.93% |
|
|
Non-performing loans + OREO / total originated |
|
|
|
|
|
loans and leases + OREO (9) | 1.15% |
| 1.05% |
|
|
Non-performing assets / total assets | 0.65% |
| 0.65% |
|
|
|
|
|
|
|
|
Allowance Rollforward |
|
|
|
|
|
Allowance for credit losses (originated portfolio) (9) |
|
|
|
|
|
Balance at beginning of period | $135,285 |
| $117,952 |
| 14.7 |
Provision for credit losses | 29,224 |
| 17,810 |
| 64.1 |
Net loan charge-offs | (15,790) |
| (11,566) |
| 36.5 |
Allowance for credit losses (originated portfolio) (9) | 148,719 |
| 124,196 |
| 19.7 |
|
|
|
|
|
|
Allowance for credit losses (acquired portfolio) (10) |
|
|
|
|
|
Balance at beginning of period | 6,727 |
| 7,974 |
| -15.6 |
Provision for credit losses | (816) |
| (810) |
| 0.7 |
Net loan charge-offs | (261) |
| (219) |
| 19.2 |
Allowance for credit losses (acquired portfolio) (10) | 5,650 |
| 6,945 |
| -18.6 |
|
|
|
|
|
|
Total allowance for credit losses | $154,369 |
| $131,141 |
| 17.7 |
|
|
|
|
|
|
Allowance for credit losses / total loans and leases | 1.06% |
| 1.13% |
|
|
Allowance for credit losses (originated loans and leases) / |
|
|
|
|
|
total originated loans and leases (9) | 1.26% |
| 1.21% |
|
|
Allowance for credit losses (originated loans and leases) / |
|
|
|
|
|
total non-performing loans (7) | 169.89% |
| 181.81% |
|
|
Net loan charge-offs (annualized) / total average loans |
|
|
|
|
|
and leases | 0.23% |
| 0.21% |
|
|
Net loan charge-offs on originated loans and leases |
|
|
|
|
|
(annualized) / total average originated loans and |
|
|
|
|
|
leases (9) | 0.28% |
| 0.23% |
|
|
|
|
|
|
|
|
Delinquency - Originated Portfolio (9) |
|
|
|
|
|
Loans 30-89 days past due | $48,706 |
| $36,581 |
| 33.1 |
Loans 90+ days past due | 6,186 |
| 5,917 |
| 4.5 |
Non-accrual loans | 64,998 |
| 45,396 |
| 43.2 |
Total past due and non-accrual loans | $119,890 |
| $87,894 |
| 36.4 |
|
|
|
|
|
|
Total past due and non-accrual loans / total originated loans | 1.02% |
| 0.86% |
|
|
|
|
|
|
|
|
Memo item: |
|
|
|
|
|
Delinquency - Acquired Portfolio (10) (11) |
|
|
|
|
|
Loans 30-89 days past due | $42,939 |
| $20,838 |
| 106.1 |
Loans 90+ days past due | 47,085 |
| 30,154 |
| 56.1 |
Non-accrual loans | 2,477 |
| 0 |
| n/m |
Total past due and non-accrual loans | $92,501 |
| $50,992 |
| 81.4 |
F.N.B. CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2Q16 |
| 1Q16 | ||||||||
|
|
|
|
|
|
| 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 |
| $109,432 |
| $97 |
| 0.36% |
| $123,445 |
| $117 |
| 0.38% | |||
Taxable investment securities (12) |
| 3,728,873 |
| 17,977 |
| 1.93% |
| 3,254,474 |
| 16,493 |
| 2.03% | |||
Non-taxable investment securities (13) |
| 297,228 |
| 3,266 |
| 4.40% |
| 271,724 |
| 3,092 |
| 4.55% | |||
Residential mortgage loans held for sale |
| 15,734 |
| 191 |
| 4.86% |
| 6,128 |
| 77 |
| 5.06% | |||
Loans and leases (13) (14) |
|
| 14,345,128 |
| 152,191 |
| 4.27% |
| 13,242,792 |
| 138,438 |
| 4.20% | ||
Total Interest Earning Assets (13) |
| 18,496,395 |
| 173,722 |
| 3.77% |
| 16,898,563 |
| 158,217 |
| 3.76% | |||
Cash and due from banks |
|
| 284,061 |
|
|
|
|
| 248,949 |
|
|
|
| ||
Allowance for loan losses |
|
| (150,487) |
|
|
|
|
| (142,943) |
|
|
|
| ||
Premises and equipment |
|
| 221,030 |
|
|
|
|
| 191,543 |
|
|
|
| ||
Other assets |
|
|
| 1,929,414 |
|
|
|
|
| 1,720,527 |
|
|
|
| |
Total Assets |
|
|
| $20,780,413 |
|
|
|
|
| $18,916,639 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing demand |
|
| $6,744,744 |
| 4,051 |
| 0.24% |
| $6,116,380 |
| 3,456 |
| 0.23% | ||
Savings |
|
|
| 2,292,185 |
| 465 |
| 0.08% |
| 2,053,764 |
| 364 |
| 0.07% | |
Certificates and other time |
|
| 2,676,851 |
| 5,908 |
| 0.89% |
| 2,576,387 |
| 5,666 |
| 0.88% | ||
Customer repurchase agreements |
| 316,456 |
| 201 |
| 0.25% |
| 299,038 |
| 180 |
| 0.24% | |||
Other short-term borrowings |
|
| 1,400,109 |
| 2,358 |
| 0.67% |
| 1,260,466 |
| 2,181 |
| 0.69% | ||
Long-term borrowings |
|
| 657,059 |
| 3,579 |
| 2.19% |
| 648,490 |
| 3,553 |
| 2.20% | ||
Total Interest Bearing Liabilities (13) |
| 14,087,404 |
| 16,562 |
| 0.47% |
| 12,954,525 |
| 15,400 |
| 0.48% | |||
Non-interest bearing demand deposits |
| 3,941,857 |
|
|
|
|
| 3,449,230 |
|
|
|
| |||
Other liabilities |
|
|
| 218,926 |
|
|
|
|
| 183,169 |
|
|
|
| |
Total Liabilities |
|
|
| 18,248,187 |
|
|
|
|
| 16,586,924 |
|
|
|
| |
Stockholders' equity |
|
| 2,532,226 |
|
|
|
|
| 2,329,715 |
|
|
|
| ||
Total Liabilities and Stockholders' Equity |
| $20,780,413 |
|
|
|
|
| $18,916,639 |
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Earning Assets |
|
| $4,408,991 |
|
|
|
|
| $3,944,038 |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (FTE) |
|
|
|
| 157,160 |
|
|
|
|
| 142,817 |
|
| ||
Tax Equivalent Adjustment |
|
|
|
| (2,791) |
|
|
|
|
| (2,463) |
|
| ||
Net Interest Income |
|
|
|
| $154,369 |
|
|
|
|
| $140,354 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Spread |
|
|
|
|
|
| 3.30% |
|
|
|
|
| 3.28% | ||
Net Interest Margin (13) |
|
|
|
|
|
| 3.41% |
|
|
|
|
| 3.40% |
F.N.B. CORPORATION |
|
|
|
|
|
|
| ||
(Unaudited) |
|
|
|
|
|
|
|
| |
(Dollars in thousands, except per share data) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2Q15 | ||||
|
|
|
|
|
|
| Interest |
| Average |
|
|
|
|
| Average |
| Earned |
| Yield |
|
|
|
|
| Outstanding |
| or Paid |
| or Rate |
Assets |
|
|
|
|
|
|
|
| |
Interest bearing deposits with banks |
| $75,707 |
| $28 |
| 0.15% | |||
Taxable investment securities (12) |
| 2,815,252 |
| 14,467 |
| 2.03% | |||
Non-taxable investment securities (13) |
| 168,501 |
| 2,283 |
| 4.82% | |||
Residential mortgage loans held for sale |
| 4,833 |
| 119 |
| 5.93% | |||
Loans and leases (13) (14) |
|
| 11,283,579 |
| 120,356 |
| 4.19% | ||
Total Interest Earning Assets (13) |
| 14,347,872 |
| 137,253 |
| 3.75% | |||
Cash and due from banks |
|
| 194,598 |
|
|
|
| ||
Allowance for loan losses |
|
| (128,697) |
|
|
|
| ||
Premises and equipment |
|
| 168,586 |
|
|
|
| ||
Other assets |
|
|
| 1,564,873 |
|
|
|
| |
Total Assets |
|
|
| $16,147,232 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
| |
Deposits: |
|
|
|
|
|
|
|
| |
Interest-bearing demand |
|
| $4,677,671 |
| 1,946 |
| 0.16% | ||
Savings |
|
|
| 1,616,284 |
| 193 |
| 0.04% | |
Certificates and other time |
|
| 2,600,551 |
| 5,497 |
| 0.85% | ||
Customer repurchase agreements |
| 830,646 |
| 391 |
| 0.21% | |||
Other short-term borrowings |
|
| 1,053,939 |
| 1,403 |
| 0.50% | ||
Long-term borrowings |
|
| 541,549 |
| 2,251 |
| 1.67% | ||
Total Interest Bearing Liabilities (13) |
| 11,320,640 |
| 11,681 |
| 0.41% | |||
Non-interest bearing demand deposits |
| 2,637,405 |
|
|
|
| |||
Other liabilities |
|
|
| 148,926 |
|
|
|
| |
Total Liabilities |
|
|
| 14,106,971 |
|
|
|
| |
Stockholders' equity |
|
| 2,040,261 |
|
|
|
| ||
Total Liabilities and Stockholders' Equity |
| $16,147,232 |
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
Net Interest Earning Assets |
|
| $3,027,232 |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
Net Interest Income (FTE) |
|
|
|
| 125,572 |
|
| ||
Tax Equivalent Adjustment |
|
|
|
| (1,805) |
|
| ||
Net Interest Income |
|
|
|
| $123,767 |
|
| ||
|
|
|
|
|
|
|
|
|
|
Net Interest Spread |
|
|
|
|
|
| 3.34% | ||
Net Interest Margin (13) |
|
|
|
|
|
| 3.43% |
F.N.B. CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Six Months Ended June 30, | ||||||||||
|
|
|
|
| 2016 |
| 2015 | ||||||||
|
|
|
|
|
|
| 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 |
| $116,439 |
| $214 |
| 0.37% |
| $75,832 |
| $60 |
| 0.16% | |||
Taxable investment securities (12) |
| 3,491,673 |
| 34,469 |
| 1.98% |
| 2,835,555 |
| 28,680 |
| 2.02% | |||
Non-taxable investment securities (13) |
| 284,476 |
| 6,358 |
| 4.47% |
| 178,995 |
| 4,400 |
| 4.92% | |||
Residential mortgage loans held for sale |
| 10,931 |
| 269 |
| 4.92% |
| 6,450 |
| 182 |
| 5.66% | |||
Loans and leases (13) (14) |
|
| 13,793,960 |
| 290,628 |
| 4.24% |
| 11,408,541 |
| 239,083 |
| 4.22% | ||
Total Interest Earning Assets (13) |
| 17,697,479 |
| 331,938 |
| 3.77% |
| 14,505,373 |
| 272,405 |
| 3.78% | |||
Cash and due from banks |
|
| 266,505 |
|
|
|
|
| 193,788 |
|
|
|
| ||
Allowance for loan losses |
|
| (146,715) |
|
|
|
|
| (130,072) |
|
|
|
| ||
Premises and equipment |
|
| 206,286 |
|
|
|
|
| 168,844 |
|
|
|
| ||
Other assets |
|
|
| 1,824,971 |
|
|
|
|
| 1,565,122 |
|
|
|
| |
Total Assets |
|
|
| $19,848,526 |
|
|
|
|
| $16,303,055 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing demand |
|
| $6,430,562 |
| 7,507 |
| 0.23% |
| $4,712,070 |
| 3,842 |
| 0.16% | ||
Savings |
|
|
| 2,172,975 |
| 829 |
| 0.08% |
| 1,680,916 |
| 365 |
| 0.04% | |
Certificates and other time |
|
| 2,626,619 |
| 11,574 |
| 0.89% |
| 2,594,632 |
| 10,878 |
| 0.85% | ||
Customer repurchase agreements |
| 307,747 |
| 380 |
| 0.24% |
| 776,601 |
| 847 |
| 0.22% | |||
Other short-term borrowings |
|
| 1,330,288 |
| 4,540 |
| 0.68% |
| 1,090,860 |
| 2,715 |
| 0.50% | ||
Long-term borrowings |
|
| 652,775 |
| 7,132 |
| 2.20% |
| 541,771 |
| 4,482 |
| 1.67% | ||
Total Interest Bearing Liabilities (13) |
| 13,520,966 |
| 31,962 |
| 0.48% |
| 11,396,850 |
| 23,129 |
| 0.41% | |||
Non-interest bearing demand deposits |
| 3,695,543 |
|
|
|
|
| 2,707,566 |
|
|
|
| |||
Other liabilities |
|
|
| 201,047 |
|
|
|
|
| 145,425 |
|
|
|
| |
Total Liabilities |
|
|
| 17,417,556 |
|
|
|
|
| 14,249,841 |
|
|
|
| |
Stockholders' equity |
|
| 2,430,970 |
|
|
|
|
| 2,053,214 |
|
|
|
| ||
Total Liabilities and Stockholders' Equity |
| $19,848,526 |
|
|
|
|
| $16,303,055 |
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Earning Assets |
|
| $4,176,513 |
|
|
|
|
| $3,108,523 |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (FTE) |
|
|
|
| 299,976 |
|
|
|
|
| 249,276 |
|
| ||
Tax Equivalent Adjustment |
|
|
|
| (5,253) |
|
|
|
|
| (3,588) |
|
| ||
Net Interest Income |
|
|
|
| $294,723 |
|
|
|
|
| $245,688 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Spread |
|
|
|
|
|
| 3.29% |
|
|
|
|
| 3.37% | ||
Net Interest Margin (13) |
|
|
|
|
|
| 3.41% |
|
|
|
|
| 3.46% |
F.N.B. CORPORATION |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
|
|
|
We believe the following non-GAAP financial measures used by F.N.B. Corporation provide information useful to investors in understanding F.N.B. Corporation's operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation's peers. The non-GAAP financial measures used by F.N.B. Corporation 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, F.N.B. Corporation's 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 F.N.B. Corporation's financial statements. | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2Q16 |
| 1Q16 |
| 2Q15 |
Return on average tangible equity (2): |
|
|
|
|
|
Net income (annualized) | $166,106 |
| $105,101 |
| $160,966 |
Amortization of intangibles, net of tax (annualized) | 10,551 |
| 8,404 |
| 6,751 |
| 176,657 |
| 113,505 |
| 167,717 |
|
|
|
|
|
|
Average total shareholders' equity | 2,532,226 |
| 2,329,715 |
| 2,066,024 |
Less: Average intangibles | (1,090,542) |
| (965,595) |
| (868,133) |
| 1,441,684 |
| 1,364,120 |
| 1,197,891 |
|
|
|
|
|
|
Return on average tangible equity (2) | 12.25% |
| 8.32% |
| 14.00% |
|
|
|
|
|
|
Return on average tangible common equity (2): |
|
|
|
|
|
Net income available to common stockholders (annualized) | $158,025 |
| $97,020 |
| $152,903 |
Amortization of intangibles, net of tax (annualized) | 10,551 |
| 8,404 |
| 6,751 |
| 168,576 |
| 105,424 |
| 159,654 |
|
|
|
|
|
|
Average total stockholders' equity | 2,532,226 |
| 2,329,715 |
| 2,066,024 |
Less: Average preferred stockholders' equity | (106,882) |
| (106,882) |
| (106,882) |
Less: Average intangibles | (1,090,542) |
| (965,595) |
| (868,133) |
| 1,334,802 |
| 1,257,238 |
| 1,091,009 |
|
|
|
|
|
|
Return on average tangible common equity (2) | 12.63% |
| 8.39% |
| 14.63% |
|
|
|
|
|
|
Return on average tangible assets (3): |
|
|
|
|
|
Net income (annualized) | $166,106 |
| $105,101 |
| $160,966 |
Amortization of intangibles, net of tax (annualized) | 10,551 |
| 8,404 |
| 6,751 |
| 176,657 |
| 113,505 |
| 167,717 |
|
|
|
|
|
|
Average total assets | 20,780,413 |
| 18,916,639 |
| 16,457,166 |
Less: Average intangibles | (1,090,542) |
| (965,595) |
| (868,133) |
| 19,689,871 |
| 17,951,044 |
| 15,589,033 |
|
|
|
|
|
|
Return on average tangible assets (3) | 0.90% |
| 0.63% |
| 1.08% |
|
|
|
|
|
|
Tangible book value per share: |
|
|
|
|
|
Total shareholders' equity | $2,545,337 |
| $2,518,021 |
| $2,065,771 |
Less: preferred shareholders' equity | (106,882) |
| (106,882) |
| (106,882) |
Less: intangibles | (1,094,687) |
| (1,077,809) |
| (869,052) |
| 1,343,768 |
| 1,333,330 |
| 1,089,837 |
|
|
|
|
|
|
Ending shares outstanding | 210,120,601 |
| 209,733,291 |
| 175,286,980 |
|
|
|
|
|
|
Tangible book value per share | $6.40 |
| $6.36 |
| $6.22 |
F.N.B. CORPORATION |
|
|
|
(Unaudited) |
|
|
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
| For the Six Months | ||
| Ended June 30, | ||
| 2016 |
| 2015 |
Return on average tangible equity (2): |
|
|
|
Net income (annualized) | $135,605 |
| $162,283 |
Amortization of intangibles, net of tax (annualized) | 9,477 |
| 6,885 |
| 145,082 |
| 169,168 |
|
|
|
|
Average total shareholders' equity | 2,430,970 |
| 2,053,214 |
Less: Average intangibles | (1,028,068) |
| (868,707) |
| 1,402,902 |
| 1,184,507 |
|
|
|
|
Return on average tangible equity (2) | 10.34% |
| 14.28% |
|
|
|
|
Return on average tangible common equity (2): |
|
|
|
Net income available to common stockholders (annualized) | $127,520 |
| $154,175 |
Amortization of intangibles, net of tax (annualized) | 9,477 |
| 6,885 |
| 136,997 |
| 161,060 |
|
|
|
|
Average total stockholders' equity | 2,430,970 |
| 2,053,214 |
Less: Average preferred stockholders' equity | (106,882) |
| (106,882) |
Less: Average intangibles | (1,028,068) |
| (868,707) |
| 1,296,020 |
| 1,077,625 |
|
|
|
|
Return on average tangible common equity (2) | 10.57% |
| 14.95% |
|
|
|
|
Return on average tangible assets (3): |
|
|
|
Net income (annualized) | $135,605 |
| $162,283 |
Amortization of intangibles, net of tax (annualized) | 9,477 |
| 6,885 |
| 145,082 |
| 169,168 |
|
|
|
|
Average total assets | 19,848,526 |
| 16,303,055 |
Less: Average intangibles | (1,028,068) |
| (868,707) |
| 18,820,458 |
| 15,434,348 |
|
|
|
|
Return on average tangible assets (3) | 0.77% |
| 1.10% |
F.N.B. CORPORATION |
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|
(Unaudited) |
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|
(Dollars in thousands) |
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| 2Q16 |
| 1Q16 |
| 2Q15 |
Tangible equity / tangible assets (period end): |
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|
Total shareholders' equity | $2,545,337 |
| $2,518,021 |
| $2,065,771 |
Less: intangibles | (1,094,687) |
| (1,077,809) |
| (869,052) |
| 1,450,650 |
| 1,440,212 |
| 1,196,719 |
|
|
|
|
|
|
Total assets | 21,214,967 |
| 20,324,524 |
| 16,598,601 |
Less: intangibles | (1,094,687) |
| (1,077,809) |
| (869,052) |
| 20,120,280 |
| 19,246,713 |
| 15,729,549 |
|
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|
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Tangible equity / tangible assets (period end) | 7.21% |
| 7.48% |
| 7.61% |
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Tangible common equity / tangible assets (period end): |
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Total stockholders' equity | $2,545,337 |
| $2,518,021 |
| $2,065,771 |
Less: preferred stockholders' equity | (106,882) |
| (106,882) |
| (106,882) |
Less: intangibles | (1,094,687) |
| (1,077,809) |
| (869,052) |
| 1,343,768 |
| 1,333,330 |
| 1,089,837 |
|
|
|
|
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|
Total assets | 21,214,967 |
| 20,324,524 |
| 16,598,601 |
Less: intangibles | (1,094,687) |
| (1,077,809) |
| (869,052) |
| 20,120,280 |
| 19,246,715 |
| 15,729,549 |
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Tangible common equity / tangible assets (period end) | 6.68% |
| 6.93% |
| 6.93% |
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Efficiency Ratio: |
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Total non-interest expense | 129,629 |
| 136,648 |
| 96,499 |
Less: amortization of intangibles | (3,388) |
| (2,649) |
| (1,999) |
Less: OREO expense | (172) |
| (1,409) |
| (1,580) |
Less: merger costs | (10,551) |
| (24,940) |
| (371) |
Less: other non-recurring items | 0 |
| (2,585) |
| 0 |
Adjusted non-interest expense | 115,520 |
| 105,065 |
| 92,549 |
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Net interest income (FTE) | 157,160 |
| 142,817 |
| 125,572 |
Non-interest income | 51,411 |
| 46,044 |
| 39,752 |
Less: net securities gains | (226) |
| (71) |
| (14) |
Less: other non-recurring items | 0 |
| (2,422) |
| 0 |
Adjusted net interest income (FTE) + non-interest income | 208,345 |
| 186,368 |
| 165,310 |
|
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Efficiency ratio | 55.45% |
| 56.38% |
| 55.99% |
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Net Interest Margin: |
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Net interest margin (FTE) (13) | 3.41% |
| 3.40% |
| 3.43% |
Accretable yield adjustment | -0.06% |
| -0.02% |
| -0.04% |
Core net interest margin | 3.35% |
| 3.38% |
| 3.39% |
F.N.B. CORPORATION |
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(Unaudited) |
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(Dollars in thousands) |
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| For the Six Months | ||
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| Ended June 30, | ||
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| 2016 |
| 2015 |
Efficiency Ratio: |
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Total non-interest expense |
|
| 266,277 |
| 191,154 | ||
Less: amortization of intangibles |
| (6,037) |
| (4,114) | |||
Less: OREO expense |
|
| (1,580) |
| (2,489) | ||
Less: merger costs |
|
| (35,491) |
| (371) | ||
Less: other non-recurring items |
|
| (2,585) |
| 0 | ||
Adjusted non-interest expense |
|
| 220,583 |
| 184,181 | ||
|
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|
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Net interest income (FTE) |
|
| 299,977 |
| 249,276 | ||
Non-interest income |
|
| 97,455 |
| 77,934 | ||
Less: net securities gains |
|
| (297) |
| (5) | ||
Less: OTTI |
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| 0 |
| 0 | |
Less: other non-recurring items |
|
| (2,422) |
| 0 | ||
Adjusted net interest income (FTE) + non-interest income |
|
| 394,713 |
| 327,205 | ||
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Efficiency ratio |
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| 55.88% |
| 56.29% | |
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Net Interest Margin: |
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Net interest margin (FTE) (13) |
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| 3.41% |
| 3.46% | ||
Accretable yield adjustment |
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| -0.02% |
| -0.03% | ||
Core net interest margin |
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| 3.39% |
| 3.43% | ||
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(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 |
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| industry measurement for this item. |
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(2) | Return on average tangible equity is calculated by dividing net income excluding amortization of intangibles by average equity less average intangibles. Return |
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| on average tangible common equity is calculated by dividing net income available to common shareholders excluding amortization of intangibles by average |
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| common equity less average intangibles. |
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(3) | Return on average tangible assets is calculated by dividing net income excluding amortization of intangibles by average assets less average intangibles. |
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(4) | See non-GAAP financial measures for additional information relating to the calculation of this item. |
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(5) | The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles, other real estate owned expense and merger, acquisition and |
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| severance-related costs by the sum of net interest income on a fully taxable equivalent basis plus non-interest income less securities and non-recurring gains. |
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(6) | Customer repos are included in short-term borrowings on the balance sheet. |
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(7) | Does not include loans acquired at fair value ("acquired portfolio"). |
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(8) | Includes all other real estate owned, including those balances acquired through business combinations that have been in acquired loans prior to foreclosure. |
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(9) | "Originated Portfolio" or "Originated Loans and Leases" equals loans and leases not included by definition in the Acquired Portfolio. |
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(10) | "Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805 which was effective January 1, 2009. |
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| The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered |
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| accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their |
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| expected cash flows. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first |
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| applied against the non-accretable difference established in purchase accounting and then to any allowance for loan losses recognized subsequent to acquisition. |
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(11) | Represents contractual balances. |
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(12) | The average balances and yields earned on taxable investment securities are based on historical cost. |
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(13) | The interest income amounts are reflected on a FTE basis, which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the |
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| federal statutory tax rate of 35% for each period presented. The yields on earning assets and the net interest margin are presented on an FTE and annualized |
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| basis. The rates paid on interest-bearing liabilities are also presented on an annualized basis. |
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(14) | Average balances for loans include non-accrual loans. Loans and leases consist of average total loans and leases less average unearned income. The amount |
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| of loan fees included in interest income is immaterial. |
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CONTACT: Analyst/Institutional Investor Contact: Matthew Lazzaro, 724-983-4254, 412-216-2510 (cell), Lazzaro@fnb-corp.com; Media Contact: Jennifer Reel, 724-983-4856, 724-699-6389 (cell), Reel@fnb-corp.com