Regulatory Matters

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Regulatory Matters

21.    Regulatory Matters

The Corporation and FNBPA are subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulators to ensure capital adequacy require the Corporation and FNBPA to maintain minimum amounts and ratios of total and tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of leverage ratio (as defined). Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions, by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements, dividends and future merger and acquisition activity. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and FNBPA must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s and FNBPA’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Corporation’s management believes that, as of December 31, 2014 and 2013, the Corporation and FNBPA met all “well capitalized” requirements to which either of them was subject.

As of December 31, 2014, the most recent notification from the federal banking agencies categorized the Corporation and FNBPA as “well-capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since the notification which management believes have changed this categorization.

During 2014 and 2013, the Corporation redeemed $33,000 and $130,000, respectively, of the Corporation-issued TPS, primarily using proceeds from the November 2013 capital raise. The regulatory capital ratios at December 31, 2014 reflect these decreases in TPS, with remaining TPS included in tier 1 capital totaling $57,500. Additionally, during 2014, the Corporation strategically sold its entire portfolio of pooled TPS, which strengthened the risk profile of its investment portfolio, improved its capital levels due to lowered risk-weighted assets and generated capital to support future growth.

Following are the capital ratios as of December 31, 2014 and 2013 for the Corporation and FNBPA (dollars in thousands):

	Actual					Well-Capitalized Requirements					Minimum Capital Requirements
December 31, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
F.N.B. Corporation:
Total capital to risk-weighted assets	$	1,417,369		12.4	%	$	1,146,556		10.0	%	$	917,245		8.0	%
Tier 1 capital to risk-weighted assets		1,269,033		11.1			687,934		6.0			458,623		4.0
Leverage ratio		1,269,033		8.4			752,593		5.0			602,074		4.0
FNBPA:
Total capital to risk-weighted assets		1,321,433		11.5			1,147,427		10.0			917,941		8.0
Tier 1 capital to risk-weighted assets		1,200,776		10.5			688,456		6.0			458,971		4.0
Leverage ratio		1,200,776		8.1			744,235		5.0			595,388		4.0
December 31, 2013
F.N.B. Corporation:
Total capital to risk-weighted assets	$	1,258,312		12.5	%	$	1,009,952		10.0	%	$	807,962		8.0	%
Tier 1 capital to risk-weighted assets		1,117,956		11.1			605,971		6.0			403,981		4.0
Leverage ratio		1,117,956		8.8			634,527		5.0			507,622		4.0
FNBPA:
Total capital to risk-weighted assets		1,144,510		11.5			995,524		10.0			796,419		8.0
Tier 1 capital to risk-weighted assets		1,035,659		10.4			597,314		6.0			398,210		4.0
Leverage ratio		1,035,659		8.3			623,921		5.0			499,137		4.0

FNBPA was required to maintain aggregate cash reserves with the FRB amounting to $7,497 at December 31, 2014. The Corporation also maintains deposits for various services such as check clearing.

Certain limitations exist under applicable law and regulations by regulatory agencies regarding dividend distributions to a parent by its subsidiaries. As of December 31, 2014, the Corporation’s subsidiaries had $146,257 of retained earnings available for distribution to the Corporation without prior regulatory approval.

Under current FRB regulations, FNBPA is limited in the amount it may lend to non-bank affiliates, including the Corporation. Such loans must be secured by specified collateral. In addition, any such loans to a non-bank affiliate may not exceed 10% of FNBPA’s capital and surplus and the aggregate of loans to all such affiliates may not exceed 20% of FNBPA’s capital and surplus. The maximum amount that may be borrowed by the Corporation under these provisions was $217,698 at December 31, 2014.