F.N.B. CORPORATION PITTSBURGH, Jan. 18, 2017 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) reported earnings for the fourth quarter of 2016 with net income available to common stockholders of $49.3 million, or $0.23 per diluted common share, including $0.01 per share in merger expense. Comparatively, third quarter of 2016 net income available to common stockholders totaled $50.2 million, or $0.24 per diluted common share, and fourth quarter of 2015 net income available to common stockholders totaled $37.1 million, or $0.21 per diluted common share. Net income available to common stockholders for the full year of 2016 totaled $162.9 million, or $0.78 per diluted common share, including $0.12 per share in merger expense, compared to net income available to common stockholders of $151.6 million, or $0.86 per diluted common share in 2015, including $0.01 per share in merger expense. Quarterly and full-year operating results are presented in the tables below.
Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "We are pleased with the quarter's results and another outstanding year at FNB. Fourth quarter operating net income per diluted common share was $0.24 per share and increased 10% from the year-ago quarter. Full-year operating net income per diluted common share increased to $0.90 and we successfully integrated Metro Bancorp, Inc. and 17 Fifth Third branches during 2016. Our financial performance was highlighted by high-single digit organic loan and deposit growth, solid asset quality and continued growth in our fee-based businesses. These ongoing trends led to an outstanding year, as the full-year efficiency ratio improved 76 basis points to 55.4% compared to 2015."
Quarterly Results Summary 4Q16 3Q16 4Q15
---- ---- ----
Reported Results
Net income available to common
stockholders ($ in millions) $49.3 $50.2 $37.1
Net income per diluted common
share $0.23 $0.24 $0.21
Common equity to total assets
(period-end) 11.28% 11.41% 11.33%
Book value per common share
(period-end) $11.68 $11.72 $11.34
Operating Results (non-GAAP)
Operating net income available
to common stockholders ($ in
millions) $50.6 $50.4 $38.1
Operating net income per
diluted common share $0.24 $0.24 $0.22
Tangible common equity to
tangible assets (period-end) 6.64% 6.69% 6.71%
Tangible book value per common
share (period-end) $6.53 $6.53 $6.38
Average Diluted Common Shares
Outstanding (in 000's) 212,748 211,791 176,907
----------------------------- ------- ------- -------
Full Year Results Summary 2016 2015
---- ----
Reported Results
Net income available to common stockholders
($ in millions) $162.9 $151.6
Net income per diluted common share $0.78 $0.86
Operating Results (non-GAAP)
Operating net income available to common
stockholders ($ in millions) $187.7 $153.7
Operating net income per diluted common
share $0.90 $0.87
Average Diluted Common Shares Outstanding
(in 000's) 207,769 176,339
----------------------------------------- ------- -------
Operating net income is a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. See the Data Sheets included with the release for "Non-GAAP Financial Measures and Key Performance Indicators" and additional information.
Fourth Quarter 2016 Highlights
(All comparisons refer to the third quarter of 2016, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances from acquisitions.)
-- Organic growth in total average loans was $179 million, or 4.9%
annualized, with average consumer loan growth of $154 million, or 10.3%
annualized (including residential mortgage, direct and indirect
installment and home-equity related products), and average commercial
loan growth of $26 million, or 1.2% annualized
-- On an organic basis, average total deposits increased $296 million, or
7.5% annualized, with organic growth in average non-interest bearing
deposits of $103 million, or 10.1% annualized.
-- The reported net interest margin (FTE) (non-GAAP) narrowed 1 basis point
to 3.35%, compared to 3.36% in the prior quarter. The core net interest
margin (FTE) (non-GAAP) was stable at 3.32% due to $1.5 million of
accretable yield benefit, compared to 3.32% and $1.9 million of benefit
in the prior quarter.
-- The efficiency ratio on an operating basis (non-GAAP) was 55.4%,
compared to 54.4% in the prior quarter and 56.3% in the year-ago
quarter.
-- Credit quality results reflect improved non-performing asset levels and
slightly increased total delinquency levels. Net originated charge-offs
were 0.38% annualized of total average originated loans, compared to
0.41% annualized in the third quarter of 2016 and 0.25% annualized in
the year-ago quarter.
-- The tangible common equity to tangible assets ratio (non-GAAP) was 6.64%
at December 31, 2016, compared to 6.69% at September 30, 2016. The
tangible book value per common share (non-GAAP) was $6.53 at December
31, 2016, which was the same at September 30, 2016.
Fourth Quarter 2016 Results - Comparison to Prior Quarter
(All comparisons refer to the third quarter of 2016, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances from acquisitions.)
Net Interest Income/Loans/Deposits
Net interest income totaled $159.3 million, increasing $1.8 million or 1.1%. The reported net interest margin (FTE) (non-GAAP) narrowed one basis point to 3.35%, compared to 3.36%. The core net interest margin (FTE) (non-GAAP) remained stable at 3.32%, as asset yields and cost of funds remained at the same levels as the prior quarter. Total average earning assets increased $254 million or 1.3%, due to continued loan growth of $179 million and $123 million of growth in the securities portfolio.
Average loans totaled $14.8 billion and increased $179 million, or 4.9% annualized, due to growth in the consumer and commercial portfolios. Average consumer loan growth was $154 million, or 10.3% annualized, led by strong demand and increased origination volume in residential mortgage and indirect auto loans. Average commercial loan growth totaled $26 million or 1.2% annualized, as growth in originated commercial loans was offset by pre-payment activity in the acquired portfolio.
Average deposits totaled $16.0 billion and increased $296 million, or 7.5% annualized. The deposit growth was led by growth in total interest checking and money market accounts and growth in low-cost non-interest bearing deposit accounts of $103 million, or 10.1% annualized, due to seasonally higher balances.
Non-Interest Income
Non-interest income totaled $51.1 million, decreasing $2.2 million, or 4.1%. The decrease in non-interest income was due mainly to lower bank-owned life insurance income of $1.1 million and $0.4 million lower insurance commissions as the third quarter had higher seasonal revenues related to the timing of renewals. This was partially offset by solid performance in mortgage banking and capital markets (defined as swap income, international banking income and syndications income). The increase in mortgage banking income was attributable to the increased production volume. Capital Markets' solid performance was due to deepening relationships with commercial customers across the entire footprint. Non-interest income equaled 24% of total revenue.
Non-Interest Expense
Non-interest expense totaled $123.8 million, increasing $2.8 million, or 2.3%, and included a $1.4 million increase in merger expense compared to $0.3 million in the prior quarter, and a $1.2 million increase in other real estate owned expense due to higher write-downs. Excluding merger expenses, adjusted non-interest expense would have increased $1.4 million, or 1.2%. The $3.0 million increase in other expense was attributable to seasonally higher marketing costs and higher outside service expense, which was partially offset by a $2.0 million decrease in amortization of intangibles. The efficiency ratio (non-GAAP) was 55.4%, compared to 54.4% in the prior quarter.
Credit Quality
Credit quality results remain satisfactory with improved non-performing asset levels. The ratio of non-performing loans and OREO to total loans and OREO improved 13 basis points to 0.79% and, for the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO improved 17 basis points to 0.91%. Total delinquency levels increased slightly, and total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans, increased 4 basis points to 1.04%, compared to 1.00% at September 30, 2016.
Net charge-offs totaled $11.5 million, or 0.31% annualized of total average loans compared to $12.1 million, or 0.33% annualized. For the originated portfolio, net charge-offs were $11.8 million, or 0.38% annualized of total average originated loans, compared to $12.3 million or 0.41% annualized. The ratio of the allowance for loan losses to total originated loans decreased 3 basis points from September 30, 2016 to 1.20% at December 31, 2016, reflecting utilization of previously-established reserves. The total provision for loan losses totaled $12.7 million, compared to $14.6 million in the prior quarter.
Full Year 2016 Results - Comparison to Prior Year
(All comparisons refer to the full year of 2015, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances from acquisitions.)
Results include the impact from the acquisition of 17 Fifth Third Bank branches (Fifth Third) on April 22, 2016, Metro Bancorp, Inc. (METR) on February 13, 2016, and five Bank of America branches (BofA) on September 19, 2015.
Net Interest Income/Loans/Deposits
Net interest income totaled $611.5 million, increasing $113.3 million, or 22.7%, reflecting average earning asset growth of $3.6 billion, or 24.6%. The net interest margin (FTE) (non-GAAP) was 3.38%, compared to 3.42%. The core net interest margin (FTE) (non-GAAP) narrowed 5 basis points to 3.34%, reflecting $1.7 million of greater accretable yield benefit. The core net interest margin (FTE) (non-GAAP) narrowing reflects the lower interest rate environment for the full year of 2016 and competitive landscape for earning assets.
Average loans totaled $14.3 billion, an increase of $2.6 billion, or 22.4%, due to the benefit from continued organic loan growth and the previously mentioned acquired balances. Organic growth in total average loans equaled $929 million, or 8.0%. Organic growth in average commercial loans totaled $485 million, or 7.4%, and organic growth in average consumer loans was $437 million, or 8.6%. Total organic commercial loan growth was led by the Pittsburgh, Baltimore and Cleveland markets. The increased number of opportunities concentrated in Baltimore and Cleveland led to market share gains within these regions. Total average consumer loan growth was led by strong growth in residential mortgage and indirect auto loans, as well as solid growth in home-equity related loans. Average deposits totaled $15.4 billion and increased $3.2 billion, or 26.5%, due to average organic growth of $887 million or 7.2%, and the benefit from acquired balances. On an organic basis, average total transaction deposits increased $1.0 billion or 10.5%. Total loans as a percentage of deposits was 92.7% at December 31, 2016.
Non-Interest Income
Non-interest income totaled $201.8 million, increasing $39.4 million or 24.2%. Non-interest income reflects the benefit of the previously mentioned acquisitions and continued organic growth from capital markets, mortgage banking and insurance.
Non-Interest Expense
Non-interest expense totaled $511.1 million, increasing $120.6 million, or 30.9%. Full year 2016 included merger expenses of $37.4 million and a $2.6 million impairment charge on acquired other assets. Absent these items and merger expenses of $3.0 million in 2015, total adjusted non-interest expense increased $83.6 million, or 21.6%, compared to 2015, with the increase primarily attributable to the expanded operations from the previously mentioned acquisitions. The efficiency ratio (non-GAAP) was 55.4%, improved from 56.1% in 2015.
Credit Quality
Credit quality results continued to reflect solid performance with improvement in total non-performing loan trends. For the originated portfolio, non-performing loans and OREO to total loans and OREO was 0.91%, compared to 0.99%. Total originated delinquency increased 11 basis points to 1.04% at December 31, 2016.
Net charge-offs for the full year of 2016 totaled $39.7 million, or 0.28% of total average loans, compared to 0.21% in the prior year. Net originated charge-offs were 0.34% of total average originated loans, compared to 0.24%. For the originated portfolio, the allowance for loan losses to total originated loans was 1.20%, compared to 1.23% at December 31, 2015. The ratio of the allowance for loan losses to total loans decreased 10 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 total provision for loan losses was $55.8 million, compared to $40.4 million in the prior year, reflecting the increase in net charge-offs and strong originated loan growth.
Capital Position
The tangible common equity to tangible assets ratio (non-GAAP) was 6.64%, compared to 6.69% at September 30, 2016. Book value per common share decreased to $11.68, from $11.72 at September 30, 2016. Tangible book value per common share (non-GAAP) was $6.53, the same as September 30, 2016, and increased $0.15 from $6.38 at December 31, 2015. The common dividend payout ratio for the full year of 2016 was 62.4%.
Non-GAAP Financial Measures and Key Performance Indicators
We use non-GAAP financial measures, such as operating net income available to common stockholders, operating net income per diluted common share, return on average tangible common equity, return on average tangible assets, tangible book value per common share, the ratio of tangible common equity to tangible assets, efficiency ratio, net interest margin and core net interest margin to provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. The Data Sheets appended to this release contain the Non-GAAP measures under the sub-heading, "Non-GAAP Financial Measures and Key Performance Indicators." Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends.
Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Reconciliations of GAAP to non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption "Non-GAAP Financial Measures and Key Performance Indicators."
Operating net income available to common stockholders is a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. See the Data Sheets that follow for additional information.
We believe merger expenses are not organic costs to run our operations and facilities. These charges represent expenses to satisfy contractual obligations of acquired entities without any useful benefit to us and to convert and consolidate the entity's records onto our platforms. These costs are specific to each individual transaction and may vary significantly based on the size and complexity of the transaction.
For the calculation of net interest margin and the efficiency ratio, net interest income amounts are reflected on a fully taxable equivalent (FTE) basis which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35.0% for each period presented. We use these measures to provide an economic view believed to be the preferred industry measurement for these items and provides relevant comparison between taxable and non-taxable amounts.
Conference Call
The Company's President and Chief Executive Officer, Vincent J. Delie, Jr., Chief Financial Officer, Vincent J. Calabrese, Jr., and Chief Credit Officer, Gary L. Guerrieri, will host a conference call to discuss the Company's financial results on Thursday, January 19, 2017, at 10:30 AM ET.
Participants are encouraged to pre-register for the conference call at http://dpregister.com/10098259. Callers who pre-register will be provided a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
Dial-in Access: The conference call may be accessed 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.
Webcast Access: The audio-only call and related presentation materials may be accessed via webcast through the "Shareholder and Investor Relations" section of the Corporation's website at www.fnbcorporation.com. Access to the live webcast will begin approximately 30 minutes prior to the start of the call.
Presentation Materials: Presentation slides and the earnings release will also be available on the Corporation's website on the "About Us" section of our corporate website at www.fnbcorporation.com.
A replay of the call will be available shortly after the completion of the call until midnight ET on Thursday, January 26, 2017. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10098259. Following the call, a transcript and the related presentation materials will be posted to the "Shareholder and Investor Relations" section of F.N.B. Corporation's website 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. On a combined, pro forma basis, giving effect to the proposed acquisition of Yadkin Financial Corporation (Yadkin), FNB will operate in eight states and seven major metropolitan areas. FNB holds a significant retail deposit market share in Pittsburgh, Pennsylvania; Baltimore, Maryland; and Cleveland, Ohio; and, assuming the Yadkin acquisition is completed, will add Charlotte, Raleigh-Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina. If the proposed Yadkin acquisition is completed (the proposed Transaction), the Company will have total pro forma assets of nearly $30 billion, and more than 400 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina and South Carolina.
Completion of the proposed Transaction is subject to regulatory approval and satisfaction of customary closing conditions. FNB 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. FNB's wealth management services include asset management, private banking and insurance. The Company also operates Regency Finance Company, which has more than 75 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 website at www.fnbcorporation.com.
Additional Information About the Proposed Transaction and Where to Find It
Communications in this document do not constitute an offer to sell or the solicitation of an offer to buy any securities. In connection with the proposed Transaction with Yadkin Financial Corporation, F.N.B. Corporation has filed with the SEC a Registration Statement on Form S-4 (File No. 333-213776) and other relevant documents concerning the proposed Transaction.
SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS CONTAINED THEREIN REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
The Registration Statement and other relevant materials, and any other documents F.N.B. and Yadkin have filed with the SEC, may be obtained free of charge at the SEC's internet site, http://www.sec.gov. Copies of the documents F.N.B. has filed with the SEC may be obtained, free of charge, by contacting James G. Orie, Chief Legal Officer, F.N.B. Corporation, One F.N.B. Boulevard, Hermitage, PA 16148, telephone: (724) 983-3317; and copies of the documents Yadkin has filed with the SEC may be obtained free of charge at Yadkin's website at www.yadkinbank.com.
Cautionary Statement Regarding Forward-Looking Information
This document contains forward-looking statements which may contain FNB's expectations or predictions of future financial or business performance or conditions, or otherwise anticipate the closing date of the proposed Transaction. This document/communication/information may also contain certain forward-looking statements, including certain plans, goals, projections and statements about the proposed Transaction, plans relative to the proposed Transaction, objectives, expectations and intentions regarding the proposed Transaction, the expected timing of the completion of the proposed Transaction, and other statements that are not historical facts. Forward-looking statements, that do not describe historical or current facts, typically are 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 are subject to numerous assumptions, risks and uncertainties. The forward-looking statements are intended to be subject to the safe harbor provided under Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Act of 1995.
In addition to factors previously disclosed in FNB's reports filed with the Securities and Exchange Commission (SEC), the following risk factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: potential risks and challenges attendant to the successful conversions of core data systems; difficulties and delays in successfully integrating the FNB and Yadkin businesses or fully realizing cost savings and other benefits; business disruption following the completion of the transaction; changes in asset quality and credit risk; changes in general economic, political or industry conditions; uncertainty in U.S. fiscal policy and monetary policy, including interest rate policies of the Federal Reserve Board (FRB); the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of FNB products and services; potential difficulties encountered by FNB in expanding into a new and remote geographic market; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; the impact, extent and timing of technological changes, capital management activities, competitive pressures on product pricing and services; ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; success, impact and timing of FNB's business strategies, including market acceptance of any new products or services; and implementation of FNB's banking culture, philosophy and strategies.
Additional risks include the nature, extent, timing and results of governmental and regulatory actions, examinations, reviews, reforms, regulations and interpretations, including those related to the Dodd-Frank Wall Street Reform Act and Consumer Protection Act and Basel III regulatory or capital reforms (including DFAST stress-testing protocols), as well as those involving the Office of the Comptroller of the Currency (OCC), FRB, Federal Deposit Insurance Corporation (FDIC), and Consumer Financial Protection Board (CFPB); the possibility that the proposed Transaction does not close when expected or at all because required regulatory or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; the possibility that the anticipated benefits of the proposed Transaction are not realized when expected or at all, or the transaction is delayed or does not close due to unanticipated circumstances, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the economic conditions and competitive factors in the areas where FNB does business; the possibility that the proposed Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed Transaction; and other factors that may affect future results of FNB. There is no assurance that any of the risks, uncertainties or risk factors identified herein is complete and actual results or events may differ materially from those expressed or implied in the forward-looking statements contained in this document.
Additional factors that could cause results to differ materially from those described above can be found in FNB's Annual Report on Form 10-K for the year ended December 31, 2015, and in its subsequent Quarterly Reports on Form 10-Q, including for the quarters ended March 31, June 30 and September 30, 2016, each of which is on file with the SEC and available in the "Investor Relations & Shareholder Services" section of FNB's website, www.fnbcorporation.com, under the heading "Reports and Filings" and in other documents FNB files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. FNB assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
Percent Variance
----------------
4Q16 - 4Q16 -
Statement of earnings 4Q16 3Q16 4Q15 3Q16 4Q15
--------------------- ---- ----
Interest income $177,168 $175,110 $140,781 1.2 25.8
Interest expense 17,885 17,604 13,448 1.6 33.0
Net interest income 159,283 157,506 127,333 1.1 25.1
Provision for credit losses 12,705 14,639 12,664 -13.2 0.3
Net interest income after provision 146,578 142,867 114,669 2.6 27.8
Service charges 25,605 25,756 18,739 -0.6 36.6
Trust income 5,218 5,268 5,131 -0.9 1.7
Insurance commissions and fees 4,436 4,866 3,919 -8.8 13.2
Securities commissions and fees 3,068 3,404 3,684 -9.9 -16.7
Mortgage banking operations 4,194 3,564 1,880 17.7 123.2
Net securities gains 116 299 503 n/m n/m
Other 8,429 10,083 9,261 -16.4 -9.0
Total non-interest income 51,066 53,240 43,117 -4.1 18.4
Salaries and employee benefits 61,117 60,927 50,509 0.3 21.0
Occupancy and equipment 19,736 20,367 16,551 -3.1 19.2
FDIC insurance 4,858 5,274 3,258 -7.9 49.1
Amortization of intangibles 1,602 3,571 2,157 -55.1 -25.7
Other real estate owned 2,401 1,172 849 104.8 182.6
Merger, acquisition and severance-related 1,649 299 1,350 n/m n/m
Other 32,443 29,440 26,572 10.2 22.1
Total non-interest expense 123,806 121,050 101,246 2.3 22.3
Income before income taxes 73,838 75,057 56,540 -1.6 30.6
Income taxes 22,547 22,889 17,418 -1.5 29.4
Net income 51,291 52,168 39,122 -1.7 31.1
Preferred stock dividends 2,011 2,010 2,011
Net income available to common stockholders $49,280 $50,158 $37,111 -1.8 32.8
======= ======= =======
Earnings per common share:
Basic $0.23 $0.24 $0.21 -4.2 9.5
Diluted $0.23 $0.24 $0.21 -4.2 9.5
Reconciliation of Operating Net Income (non-GAAP):
--------------------------------------------------
Net income available to common stockholders $49,280 $50,158 $37,111
Merger, acquisition and severance costs 1,649 299 1,350
Tax benefit of merger, acquisition and severance costs (341) (105) (359)
---- ---- ----
Operating net income available to common stockholders (non-GAAP) $50,588 $50,352 $38,102 0.5 32.8
======= ======= =======
Net income per diluted common share $0.23 $0.24 $0.21
Effect of merger, acquisition and severance costs 0.01 0.00 0.01
Tax benefit of merger, acquisition and severance costs (0.00) (0.00) (0.00)
----- ----- -----
Operating net income per diluted common share (non-GAAP) $0.24 $0.24 $0.22 0.0 9.1
===== ===== =====
Common stock data
-----------------
Average diluted shares outstanding 212,748,337 211,790,730 176,906,938 0.5 20.3
Period end shares outstanding 211,059,547 210,224,194 175,441,670 0.4 20.3
Book value per common share $11.68 $11.72 $11.34 -0.4 3.0
Tangible book value per common share (1) $6.53 $6.53 $6.38 0.1 2.4
Dividend payout ratio (common) 51.82% 50.69% 57.08%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year
Ended December 31, Percent
------------------
Statement of earnings 2016 2015 Variance
--------------------- ----
Interest income $678,963 $546,795 24.2
Interest expense 67,451 48,573 38.9
------ ------
Net interest income 611,512 498,222 22.7
Provision for credit losses 55,752 40,441 37.9
------
Net interest income after provision 555,760 457,781 21.4
Service charges 99,033 70,698 40.1
Trust income 21,173 20,934 1.1
Insurance commissions and fees 18,328 16,270 12.6
Securities commissions and fees 13,468 13,642 -1.3
Mortgage banking operations 12,106 8,619 40.5
Net securities gains 712 822 n/m
Other 36,941 31,425 17.6
------
Total non-interest income 201,761 162,410 24.2
Salaries and employee benefits 239,798 201,968 18.7
Occupancy and equipment 78,132 65,539 19.2
FDIC insurance 19,203 12,888 49.0
Amortization of intangibles 11,210 8,305 35.0
Other real estate owned 5,154 4,637 11.1
Merger, acquisition and severance-related 37,439 3,033 n/m
Other 120,197 94,179 27.6
Total non-interest expense 511,133 390,549 30.9
Income before income taxes 246,388 229,642 7.3
Income taxes 75,497 69,993 7.9
------ ------
Net income 170,891 159,649 7.0
Preferred stock dividends 8,041 8,041
----- -----
Net income available to common stockholders $162,850 $151,608 7.4
======== ========
Earnings per common share:
Basic $0.79 $0.87 -9.2
Diluted $0.78 $0.86 -9.3
Reconciliation of Operating Net Income (non-GAAP):
--------------------------------------------------
Net income available to common stockholders $162,850 $151,608
Merger, acquisition and severance costs 37,439 3,033
Tax benefit of merger, acquisition and severance costs (12,550) (948)
------- ----
Operating net income available to common stockholders (non-GAAP) $187,739 $153,693 22.2
======== ========
Net income per diluted common share $0.78 $0.86
Effect of merger, acquisition and severance costs 0.18 0.02
Tax benefit of merger, acquisition and severance costs (0.06) (0.01)
----- -----
Operating net income per diluted common share (non-GAAP) $0.90 $0.87 3.4
===== =====
Common stock data
-----------------
Average diluted shares outstanding 207,768,609 176,338,953 17.8
Period end shares outstanding 211,059,547 175,441,670 20.3
Book value per common share $11.68 $11.34 3.0
Tangible book value per common share (1) $6.53 $6.38 2.4
Dividend payout ratio (common) 62.43% 55.74%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
Percent Variance
----------------
4Q16 - 4Q16 -
Balance Sheet (at period end) 4Q16 3Q16 4Q15 3Q16 4Q15
---------------------------- ---- ----
Assets
Cash and due from banks $303,526 $326,599 $207,399 -7.1 46.3
Interest bearing deposits with banks 67,881 118,651 281,720 -42.8 -75.9
------ ------- -------
Cash and cash equivalents 371,407 445,250 489,119 -16.6 -24.1
Securities available for sale 2,231,987 2,077,616 1,630,567 7.4 36.9
Securities held to maturity 2,337,342 2,249,245 1,637,061 3.9 42.8
Residential mortgage loans held for sale 11,908 17,862 4,781 -33.3 149.1
Loans and leases, net of unearned income 14,896,943 14,773,446 12,190,440 0.8 22.2
Allowance for credit losses (158,059) (156,894) (142,012) 0.7 11.3
-------- -------- --------
Net loans and leases 14,738,884 14,616,552 12,048,428 0.8 22.3
Premises and equipment, net 243,956 228,622 159,080 6.7 53.4
Goodwill 1,032,129 1,022,006 833,086 1.0 23.9
Core deposit and other intangible assets, net 67,327 81,646 45,644 -17.5 47.5
Bank owned life insurance 330,152 327,874 308,192 0.7 7.1
Other assets 479,725 517,241 401,704 -7.3 19.4
Total Assets $21,844,817 $21,583,914 $17,557,662 1.2 24.4
=========== =========== ===========
Liabilities
Deposits:
Non-interest bearing demand $4,205,337 $4,082,145 $3,059,949 3.0 37.4
Interest bearing demand 6,931,381 7,032,744 5,311,589 -1.4 30.5
Savings 2,352,434 2,299,408 1,786,459 2.3 31.7
Certificates and other time deposits 2,576,495 2,562,587 2,465,466 0.5 4.5
--------- --------- ---------
Total Deposits 16,065,647 15,976,884 12,623,463 0.6 27.3
Short-term borrowings 2,503,010 2,236,105 2,048,896 11.9 22.2
Long-term borrowings 539,494 587,500 641,480 -8.2 -15.9
Other liabilities 165,049 212,845 147,641 -22.5 11.8
------- ------- -------
Total Liabilities 19,273,200 19,013,334 15,461,480 1.4 24.7
Stockholders' Equity
Preferred Stock 106,882 106,882 106,882 0.0 0.0
Common stock 2,125 2,117 1,766 0.4 20.3
Additional paid-in capital 2,234,366 2,223,530 1,808,210 0.5 23.6
Retained earnings 304,397 280,654 243,217 8.5 25.2
Accumulated other comprehensive loss (61,369) (27,852) (51,133) 120.3 20.0
Treasury stock (14,784) (14,751) (12,760) 0.2 15.9
Total Stockholders' Equity 2,571,617 2,570,580 2,096,182 0.0 22.7
--------- --------- ---------
Total Liabilities and Stockholders' Equity $21,844,817 $21,583,914 $17,557,662 1.2 24.4
=========== =========== ===========
Selected average balances
-------------------------
Total assets $21,609,635 $21,386,156 $17,076,285 1.0 26.5
Earning assets 19,299,292 19,045,481 15,232,868 1.3 26.7
Interest bearing deposits with banks 93,481 140,713 53,777 -33.6 73.8
Securities 4,363,935 4,240,563 3,155,624 2.9 38.3
Residential mortgage loans held for sale 21,639 22,476 9,182 -3.7 135.7
Loans and leases, net of unearned income 14,820,237 14,641,729 12,014,285 1.2 23.4
Allowance for credit losses 158,542 158,901 139,571 -0.2 13.6
Goodwill and intangibles 1,101,797 1,104,328 879,039 -0.2 25.3
Deposits 15,967,990 15,671,857 12,787,550 1.9 24.9
Short-term borrowings 2,316,169 2,303,389 1,382,073 0.6 67.6
Long-term borrowings 544,236 616,141 640,573 -11.7 -15.0
Total stockholders' equity 2,573,768 2,562,693 2,099,591 0.4 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 Year
Ended December 31, Percent
------------------
Balance
Sheet
(at
period
end) 2016 2015 Variance
------- ----
Assets
Cash
and
due
from
banks $303,526 $207,399 46.3
Interest
bearing
deposits
with
banks 67,881 281,720 -75.9
------ -------
Cash
and
cash
equivalents 371,407 489,119 -24.1
Securities
available
for
sale 2,231,987 1,630,567 36.9
Securities
held
to
maturity 2,337,342 1,637,061 42.8
Residential
mortgage
loans
held
for
sale 11,908 4,781 149.1
Loans
and
leases,
net
of
unearned
income 14,896,943 12,190,440 22.2
Allowance
for
credit
losses (158,059) (142,012) 11.3
-------- --------
Net
loans
and
leases 14,738,884 12,048,428 22.3
Premises
and
equipment,
net 243,956 159,080 53.4
Goodwill 1,032,129 833,086 23.9
Core
deposit
and
other
intangible
assets,
net 67,327 45,644 47.5
Bank
owned
life
insurance 330,152 308,192 7.1
Other
assets 479,725 401,704 19.4
Total
Assets $21,844,817 $17,557,662 24.4
=========== ===========
Liabilities
Deposits:
Non-
interest
bearing
demand $4,205,337 $3,059,949 37.4
Interest
bearing
demand 6,931,381 5,311,589 30.5
Savings 2,352,434 1,786,459 31.7
Certificates
and
other
time
deposits 2,576,495 2,465,466 4.5
--------- ---------
Total
Deposits 16,065,647 12,623,463 27.3
Short-
term
borrowings 2,503,010 2,048,896 22.2
Long-
term
borrowings 539,494 641,480 -15.9
Other
liabilities 165,049 147,641 11.8
------- -------
Total
Liabilities 19,273,200 15,461,480 24.7
Stockholders'
Equity
Preferred
Stock 106,882 106,882 0.0
Common
stock 2,125 1,766 20.3
Additional
paid-
in
capital 2,234,366 1,808,210 23.6
Retained
earnings 304,397 243,217 25.2
Accumulated
other
comprehensive
loss (61,369) (51,133) 20.0
Treasury
stock (14,784) (12,760) 15.9
Total
Stockholders'
Equity 2,571,617 2,096,182 22.7
--------- ---------
Total
Liabilities
and
Stockholders'
Equity $21,844,817 $17,557,662 24.4
=========== ===========
Selected
average
balances
--------
Total
assets $20,677,717 $16,606,147 24.5
Earning
assets 18,438,962 14,797,502 24.6
Interest
bearing
deposits
with
banks 116,769 70,116 66.5
Securities 4,040,636 3,068,871 31.7
Residential
mortgage
loans
held
for
sale 16,525 7,773 112.6
Loans
and
leases,
net
of
unearned
income 14,265,032 11,650,742 22.4
Allowance
for
credit
losses 152,751 133,508 14.4
Goodwill
and
intangibles 1,070,411 876,773 22.1
Deposits 15,375,254 12,153,608 26.5
Short-
term
borrowings 1,975,742 1,664,143 18.7
Long-
term
borrowings 616,283 566,914 8.7
Total
stockholders'
equity 2,499,976 2,072,170 20.6
Preferred
stockholders'
equity 106,882 106,882 0.0
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
Percent Variance
----------------
4Q16 - 4Q16 -
4Q16 3Q16 4Q15 3Q16 4Q15
---- ---- ---- ---- ----
Performance ratios
------------------
Return on average equity 7.93% 8.10% 7.39%
Return on average tangible equity (1) 14.14% 14.87% 13.20%
Return on average tangible common equity (1) 14.66% 15.45% 13.75%
Return on average assets 0.94% 0.97% 0.91%
Return on average tangible assets (1) 1.02% 1.08% 1.00%
Net interest margin (FTE) (1) (2) 3.35% 3.36% 3.38%
Yield on earning assets (FTE) (1) (2) 3.72% 3.72% 3.73%
Cost of interest-bearing liabilities 0.48% 0.48% 0.45%
Cost of funds 0.38% 0.38% 0.36%
Efficiency ratio (1) 55.38% 54.38% 56.32%
Effective tax rate 30.54% 30.50% 30.81%
Capital ratios
--------------
Equity / assets (period end) 11.77% 11.91% 11.94%
Common equity / assets (period end) 11.28% 11.41% 11.33%
Leverage ratio 7.70% 7.63% 8.14%
Tangible equity / tangible assets (period end) (1) 7.16% 7.22% 7.35%
Tangible common equity / tangible assets (period end) (1) 6.64% 6.69% 6.71%
Balances at period end
----------------------
Loans and Leases:
-----------------
Commercial real estate $5,435,162 $5,367,291 $4,109,056 1.3 32.3
Commercial and industrial 3,042,781 3,088,405 2,601,722 -1.5 17.0
Commercial leases 196,636 195,271 204,553 0.7 -3.9
------- ------- -------
Commercial loans and leases 8,674,579 8,650,967 6,915,331 0.3 25.4
Direct installment 1,844,399 1,837,395 1,706,636 0.4 8.1
Residential mortgages 1,844,574 1,779,867 1,395,971 3.6 32.1
Indirect installment 1,196,313 1,150,812 996,729 4.0 20.0
Consumer LOC 1,301,200 1,303,223 1,137,255 -0.2 14.4
Other 35,878 51,182 38,518 -29.9 -6.9
Total loans and leases $14,896,943 $14,773,446 $12,190,440 0.8 22.2
=========== ===========
Deposits:
---------
Non-interest bearing deposits $4,205,337 $4,082,145 $3,059,949 3.0 37.4
Interest bearing demand 6,931,381 7,032,744 5,311,589 -1.4 30.5
Savings 2,352,434 2,299,408 1,786,459 2.3 31.7
Certificates of deposit and other time deposits 2,576,495 2,562,587 2,465,466 0.5 4.5
Total deposits $16,065,647 $15,976,884 $12,623,463 0.6 27.3
Average balances
----------------
Loans and Leases:
-----------------
Commercial real estate $5,390,877 $5,343,485 $4,007,628 0.9 34.5
Commercial and industrial 3,065,593 3,084,005 2,546,539 -0.6 20.4
Commercial leases 194,111 196,600 201,201 -1.3 -3.5
------- ------- -------
Commercial loans and leases 8,650,581 8,624,090 6,755,368 0.3 28.1
Direct installment 1,837,505 1,834,558 1,702,617 0.2 7.9
Residential mortgages 1,807,086 1,721,162 1,393,416 5.0 29.7
Indirect installment 1,169,559 1,109,047 983,028 5.5 19.0
Consumer LOC 1,299,832 1,295,035 1,134,005 0.4 14.6
Other 55,674 57,837 45,851 -3.7 21.4
Total loans and leases $14,820,237 $14,641,729 $12,014,285 1.2 23.4
Deposits:
---------
Non-interest bearing deposits $4,123,539 $4,021,023 $3,025,773 2.5 36.3
Interest bearing demand 6,972,890 6,772,963 5,486,974 3.0 27.1
Savings 2,310,901 2,289,836 1,764,600 0.9 31.0
Certificates of deposit and other time deposits 2,560,660 2,588,035 2,510,203 -1.1 2.0
Total deposits $15,967,990 $15,671,857 $12,787,550 1.9 24.9
F.N.B.
CORPORATION
------------
(Unaudited)
(Dollars
in
thousands)
For the Year
Ended December 31, Percent
------------------
2016 2015 Variance
---- ---- --------
Performance
ratios
-----------
Return on
average
equity 6.84% 7.70%
Return on
average
tangible
equity
(1) 12.49% 13.84%
Return on
average
tangible
common
equity
(1) 12.89% 14.46%
Return on
average
assets 0.83% 0.96%
Return on
average
tangible
assets
(1) 0.92% 1.06%
Net
interest
margin
(FTE)
(1) (2) 3.38% 3.42%
Yield on
earning
assets
(FTE)
(1) (2) 3.74% 3.75%
Cost of
interest-
bearing
liabilities 0.48% 0.42%
Cost of
funds 0.37% 0.34%
Efficiency
ratio
(1) 55.36% 56.12%
Effective
tax rate 30.64% 30.48%
Capital
ratios
-------
Equity /
assets
(period
end) 11.77% 11.94%
Common
equity /
assets
(period
end) 11.28% 11.33%
Leverage
ratio 7.70% 8.14%
Tangible
equity /
tangible
assets
(period
end) (1) 7.16% 7.35%
Tangible
common
equity /
tangible
assets
(period
end) (1) 6.64% 6.71%
Balances
at
period
end
--------
Loans and
Leases:
---------
Commercial
real
estate $5,435,162 $4,109,056 32.3
Commercial
and
industrial 3,042,781 2,601,722 17.0
Commercial
leases 196,636 204,553 -3.9
------- -------
Commercial
loans
and
leases 8,674,579 6,915,331 25.4
Direct
installment 1,844,399 1,706,636 8.1
Residential
mortgages 1,844,574 1,395,971 32.1
Indirect
installment 1,196,313 996,729 20.0
Consumer
LOC 1,301,200 1,137,255 14.4
Other 35,878 38,518 -6.9
Total
loans
and
leases $14,896,943 $12,190,440 22.2
Deposits:
---------
Non-
interest
bearing
deposits $4,205,337 $3,059,949 37.4
Interest
bearing
demand 6,931,381 5,311,589 30.5
Savings 2,352,434 1,786,459 31.7
Certificates
of
deposit
and
other
time
deposits 2,576,495 2,465,466 4.5
Total
deposits $16,065,647 $12,623,463 27.3
Average
balances
---------
Loans and
Leases:
---------
Commercial
real
estate $5,229,327 $3,888,261 34.5
Commercial
and
industrial 2,971,756 2,452,538 21.2
Commercial
leases 199,083 191,070 4.2
------- -------
Commercial
loans
and
leases 8,400,166 6,531,869 28.6
Direct
installment 1,807,024 1,675,856 7.8
Residential
mortgages 1,651,143 1,336,212 23.6
Indirect
installment 1,082,915 940,834 15.1
Consumer
LOC 1,270,713 1,119,719 13.5
Other 53,071 46,252 14.7
Total
loans
and
leases $14,265,032 $11,650,742 22.4
Deposits:
---------
Non-
interest
bearing
deposits $3,884,941 $2,832,982 37.1
Interest
bearing
demand 6,652,953 5,040,102 32.0
Savings 2,237,020 1,714,587 30.5
Certificates
of
deposit
and
other
time
deposits 2,600,341 2,565,937 1.3
Total
deposits $15,375,254 $12,153,608 26.5
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
Percent Variance
----------------
4Q16 - 4Q16 -
Asset Quality Data 4Q16 3Q16 4Q15 3Q16 4Q15
------------------ ---- ----
Non-Performing Assets
---------------------
Non-performing loans (3)
Non-accrual loans $65,479 $74,828 $49,897 -12.5 31.2
Restructured loans 20,428 20,638 22,028 -1.0 -7.3
------ ------ ------
Non-performing loans 85,907 95,466 71,925 -10.0 19.4
Other real estate owned (OREO) (4) 32,490 40,523 38,918 -19.8 -16.5
------ ------ ------
Total non-performing assets $118,397 $135,989 $110,843 -12.9 6.8
======== ======== ========
Non-performing loans / total loans and leases 0.58% 0.65% 0.59%
Non-performing loans / total originated loans and leases (5) 0.66% 0.76% 0.64%
Non-performing loans + OREO / total loans and leases + OREO 0.79% 0.92% 0.91%
Non-performing loans + OREO / total originated loans and
leases + OREO (5) 0.91% 1.08% 0.99%
Non-performing assets / total assets 0.54% 0.63% 0.63%
Allowance Rollforward
---------------------
Allowance for credit losses (originated portfolio) (5)
Balance at beginning of period $150,514 $148,719 $129,619 1.2 16.1
Provision for credit losses 12,126 14,072 12,387 -13.8 -2.1
Net loan charge-offs (11,848) (12,277) (6,721) -3.5 76.3
Allowance for credit losses (originated portfolio) (5) 150,792 150,514 135,285 0.2 11.5
Allowance for credit losses (acquired portfolio) (6)
Balance at beginning of period 6,380 5,650 6,564 12.9 -2.8
Provision for credit losses 579 567 277 2.1 109.0
Net loan (charge-offs)/recoveries 308 163 (114) 89.0 -370.2
--- --- ----
Allowance for credit losses (acquired portfolio) (6) 7,267 6,380 6,727 13.9 8.0
Total allowance for credit losses $158,059 $156,894 $142,012 0.7 11.3
======== ======== ========
Allowance for credit losses / total loans and leases 1.06% 1.06% 1.16%
Allowance for credit losses (originated loans and leases) /
total originated loans and leases (5) 1.20% 1.23% 1.23%
Allowance for credit losses (originated loans and leases) /
total non-performing loans (3) 182.75% 163.36% 190.64%
Net loan charge-offs (annualized) / total average loans and leases 0.31% 0.33% 0.23%
Net loan charge-offs on originated loans and leases
(annualized) / total average originated loans and leases (5) 0.38% 0.41% 0.25%
Delinquency - Originated Portfolio (5)
-------------------------------------
Loans 30-89 days past due $59,850 $43,071 $46,683 39.0 28.2
Loans 90+ days past due 9,113 6,906 6,864 32.0 32.8
Non-accrual loans 62,083 71,498 48,934 -13.2 26.9
------ ------ ------
Total past due and non-accrual loans $131,046 $121,475 $102,481 7.9 27.9
======== ======== ========
Total past due and non-accrual loans / total originated loans 1.04% 1.00% 0.93%
Memo item:
Delinquency - Acquired Portfolio (6) (7)
---------------------------------------
Loans 30-89 days past due $24,210 $29,087 $15,034 -16.8 61.0
Loans 90+ days past due 40,524 42,584 29,878 -4.8 35.6
Non-accrual loans 3,396 3,330 963 n/m n/m
----- -----
Total past due and non-accrual loans $68,130 $75,001 $45,875 -9.2 48.5
======= ======= =======
F.N.B.
CORPORATION
------------
(Unaudited)
(Dollars
in
thousands)
For the Year
Ended December 31, Percent
------------------
Asset
Quality
Data 2016 2015 Variance
-------- ----
Non-
Performing
Assets
-----------
Non-
performing
loans
(3)
Non-
accrual
loans $65,479 $49,897 31.2
Restructured
loans 20,428 22,028 -7.3
Non-
performing
loans 85,907 71,925 19.4
Other
real
estate
owned
(OREO)
(4) 32,490 38,918 -16.5
Non-
performing
loans
and
OREO 118,397 110,843 6.8
Non-
performing
investments 0 0 n/m
Total
non-
performing
assets $118,397 $110,843 6.8
Non-
performing
loans /
total
loans
and
leases 0.58% 0.59%
Non-
performing
loans /
total
originated
loans
and
leases
(5) 0.66% 0.64%
Non-
performing
loans +
OREO /
total
loans
and
leases
+ OREO 0.79% 0.91%
Non-
performing
loans +
OREO /
total
originated
loans
and
leases
+ OREO
(5) 0.91% 0.99%
Non-
performing
assets
/total
assets 0.54% 0.63%
Allowance
Rollforward
-----------
Allowance
for
credit
losses
(originated
portfolio)
(5)
Balance
at
beginning
of
period $135,285 $117,952 14.7
Provision
for
credit
losses 55,422 41,484 33.6
Net loan
charge-
offs (39,915) (24,151) 65.3
Allowance
for
credit
losses
(originated
portfolio)
(5) 150,792 135,285 11.5
Allowance
for
credit
losses
(acquired
portfolio)
(6)
Balance
at
beginning
of
period 6,727 7,974 -15.6
Provision
for
credit
losses 330 (1,043) -131.6
Net loan
(charge-
offs)/recoveries 210 (204) -202.9
--- ----
Allowance
for
credit
losses
(acquired
portfolio)
(6) 7,267 6,727 8.0
Total
allowance
for
credit
losses $158,059 $142,012 11.3
======== ========
Allowance
for
credit
losses
/total
loans
and
leases 1.06% 1.16%
Allowance
for
credit
losses
(originated
loans
and
leases)
/
total
originated
loans
and
leases
(5) 1.20% 1.23%
Allowance
for
credit
losses
(originated
loans
and
leases)
/
total
non-
performing
loans
(3) 182.75% 190.64%
Net loan
charge-
offs
(annualized)
/total
average
loans
and
leases 0.28% 0.21%
Net loan
charge-
offs on
originated
loans
and
leases
(annualized)
/total
average
originated
loans
and
leases
(5) 0.34% 0.24%
Delinquency
-
Originated
Portfolio
(5)
-----------
Loans
30-89
days
past
due $59,850 $46,683 28.2
Loans
90+
days
past
due 9,113 6,864 32.8
Non-
accrual
loans 62,083 48,934 26.9
Total
past
due and
non-
accrual
loans $131,046 $102,481 27.9
======== ========
Total
past
due and
non-
accrual
loans /
total
originated
loans 1.04% 0.93%
Memo
item:
Delinquency
-
Acquired
Portfolio
(6) (7)
-----------
Loans
30-89
days
past
due $24,210 $15,034 61.0
Loans
90+
days
past
due 40,524 29,878 35.6
Non-
accrual
loans 3,396 963 n/m
Total
past
due and
non-
accrual
loans $68,130 $45,875 48.5
======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
4Q16 3Q16
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 $93,481 $87 0.37% $140,713 $143 0.40%
Taxable investment securities (8) 3,975,670 18,952 1.91% 3,919,203 18,432 1.88%
Non-taxable investment securities (2) 388,265 4,000 4.12% 321,360 3,456 4.30%
Residential mortgage loans held for sale 21,639 222 4.10% 22,476 235 4.19%
Loans and leases (2) (9) 14,821,237 157,006 4.22% 14,641,729 155,739 4.23%
Total Interest Earning Assets (2) 19,300,292 180,267 3.72% 19,045,481 178,005 3.72%
----------
Cash and due from banks 281,314 287,208
Allowance for loan losses (158,542) (158,901)
Premises and equipment 234,783 229,133
Other assets 1,952,788 1,983,235
Total Assets $21,610,635 $21,386,156
Liabilities
Deposits:
Interest-bearing demand $6,972,890 4,429 0.25% $6,772,963 4,094 0.24%
Savings 2,310,901 434 0.07% 2,289,836 449 0.08%
Certificates and other time 2,560,660 5,989 0.93% 2,588,035 5,934 0.91%
Short-term borrowings 2,316,169 3,656 0.63% 2,303,389 3,607 0.62%
Long-term borrowings 544,236 3,377 2.47% 616,141 3,520 2.27%
Total Interest Bearing Liabilities 14,704,856 17,885 0.48% 14,570,364 17,604 0.48%
----------
Non-interest bearing demand deposits 4,123,539 4,021,023
Other liabilities 207,472 232,076
Total Liabilities 19,035,867 18,823,463
Stockholders' equity 2,573,768 2,562,693
Total Liabilities and Stockholders' Equity $21,609,635 $21,386,156
Net Interest Earning Assets $4,595,436 $4,475,117
========== ==========
Net Interest Income (FTE) (2) 162,382 160,401
Tax Equivalent Adjustment (3,099) (2,895)
------ ------
Net Interest Income $159,283 $157,506
======== ========
Net Interest Spread 3.24% 3.24%
==== ====
Net Interest Margin (2) 3.35% 3.36%
==== ====
F.N.B.
CORPORATION
------------
(Unaudited)
(Dollars
in
thousands,
except
per
share
data)
4Q15
Interest Average
Average Earned Yield
Outstanding or Paid or Rate
Assets
Interest
bearing
deposits
with
banks $53,777 $27 0.20%
Taxable
investment
securities
(8) 2,916,736 14,891 2.04%
Non-
taxable
investment
securities
(2) 238,888 2,830 4.74%
Residential
mortgage
loans
held
for
sale 9,182 125 5.47%
Loans
and
leases
(2) (9) 12,014,285 125,005 4.14%
Total
Interest
Earning
Assets
(2) 15,232,868 142,878 3.73%
----------
Cash and
due
from
banks 239,159
Allowance
for
loan
losses (139,571)
Premises
and
equipment 161,338
Other
assets 1,582,491
Total
Assets $17,076,285
Liabilities
Deposits:
Interest-
bearing
demand $5,486,974 2,480 0.18%
Savings 1,764,600 224 0.05%
Certificates
and
other
time 2,510,203 5,470 0.86%
Short-
term
borrowings 1,382,073 1,726 0.50%
Long-
term
borrowings 640,573 3,548 2.20%
Total
Interest
Bearing
Liabilities 11,784,423 13,448 0.45%
----------
Non-
interest
bearing
demand
deposits 3,025,773
Other
liabilities 166,498
Total
Liabilities 14,976,694
Stockholders'
equity 2,099,591
Total
Liabilities
and
Stockholders'
Equity $17,076,285
Net
Interest
Earning
Assets $3,448,445
==========
Net
Interest
Income
(FTE)
(2) 129,430
Tax
Equivalent
Adjustment (2,097)
------
Net
Interest
Income $127,333
========
Net
Interest
Spread 3.28%
====
Net
Interest
Margin
(2) 3.38%
====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year Ended December 31,
-------------------------------
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 $116,769 $444 0.38% $70,116 $117 0.17%
Taxable investment securities (8) 3,720,800 71,853 1.93% 2,864,795 58,148 2.03%
Non-taxable investment securities (2) 319,836 13,815 4.32% 204,076 9,853 4.83%
Residential mortgage loans held for sale 16,525 726 4.39% 7,773 382 4.91%
Loans and leases (2) (9) 14,265,032 603,373 4.23% 11,650,742 485,930 4.17%
Total Interest Earning Assets (2) 18,438,962 690,211 3.74% 14,797,502 554,430 3.75%
---------- ----------
Cash and due from banks 275,432 206,566
Allowance for loan losses (152,751) (133,508)
Premises and equipment 219,192 165,253
Other assets 1,896,882 1,570,334
Total Assets $20,677,717 $16,606,147
Liabilities
Deposits:
Interest-bearing demand $6,652,953 16,029 0.24% $5,040,102 8,562 0.17%
Savings 2,237,020 1,712 0.08% 1,714,587 787 0.05%
Certificates and other time 2,600,340 23,498 0.90% 2,565,937 21,858 0.85%
Short-term borrowings 1,975,742 12,183 0.62% 1,664,143 7,075 0.43%
Long-term borrowings 616,283 14,029 2.28% 566,914 10,291 1.82%
Total Interest Bearing Liabilities 14,082,338 67,451 0.48% 11,551,683 48,573 0.42%
---------- ----------
Non-interest bearing demand deposits 3,884,941 2,832,982
Other liabilities 210,462 149,312
Total Liabilities 18,177,741 14,533,977
Stockholders' equity 2,499,976 2,072,170
Total Liabilities and Stockholders' Equity $20,677,717 $16,606,147
Net Interest Earning Assets $4,356,624 $3,245,819
========== ==========
Net Interest Income (FTE) (2) 622,760 505,857
Tax Equivalent Adjustment (11,248) (7,635)
------- ------
Net Interest Income $611,512 $498,222
======== ========
Net Interest Spread 3.26% 3.33%
==== ====
Net Interest Margin (2) 3.38% 3.42%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS
----------------------------------------------------------
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.
4Q16 3Q16 4Q15
---- ---- ----
Return on average tangible equity:
----------------------------------
Net income (annualized) $204,050 $207,540 $155,211
Amortization of intangibles, net of tax (annualized) 5,857 10,970 6,965
----- ------ -----
Tangible net income (annualized) 209,907 218,510 162,176
Average total stockholders' equity 2,573,768 2,562,693 2,099,591
Less: Average intangibles (1,089,216) (1,093,378) (870,842)
---------- ---------- --------
Average tangible stockholders' equity 1,484,552 1,469,315 1,228,749
Return on average tangible equity (non-GAAP) 14.14% 14.87% 13.20%
===== ===== =====
Return on average tangible common equity:
-----------------------------------------
Net income available to common stockholders (annualized) $196,049 $199,543 $147,235
Amortization of intangibles, net of tax (annualized) 5,857 10,970 6,965
----- ------ -----
Tangible net income available to common stockholders (annualized) 201,906 210,513 154,200
Average total stockholders' equity 2,573,768 2,562,693 2,099,591
Less: Average preferred stockholders' equity (106,882) (106,882) (106,882)
Less: Average intangibles (1,089,216) (1,093,378) (870,842)
---------- ---------- --------
Average tangible common equity 1,377,670 1,362,433 1,121,867
Return on average tangible common equity (non-GAAP) 14.66% 15.45% 13.74%
===== ===== =====
Return on average tangible assets:
----------------------------------
Net income (annualized) $204,050 $207,540 $155,211
Amortization of intangibles, net of tax (annualized) 5,857 10,970 6,965
----- ------ -----
Tangible net income (annualized) 209,907 218,510 162,176
Average total assets 21,609,635 21,386,156 17,076,285
Less: Average intangibles (1,089,216) (1,093,378) (870,842)
---------- ---------- --------
Average tangible assets 20,520,419 20,292,778 16,205,443
Return on average tangible assets (non-GAAP) 1.02% 1.08% 1.00%
==== ==== ====
Tangible book value per common share:
-------------------------------------
Total stockholders' equity $2,571,617 $2,570,580 $2,096,182
Less: preferred stockholders' equity (106,882) (106,882) (106,882)
Less: intangibles (1,085,935) (1,091,876) (869,809)
---------- ---------- --------
Tangible common equity 1,378,800 1,371,822 1,119,491
Ending common shares outstanding 211,059,547 210,224,194 175,441,670
Tangible book value per common share (non-GAAP) $6.53 $6.53 $6.38
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per
share data)
For the Year
Ended December 31,
------------------
2016 2015
---- ----
Return on average tangible equity:
----------------------------------
Net income (annualized) $170,891 $159,649
Amortization of intangibles, net of
tax (annualized) 8,943 6,861
----- -----
Tangible net income (annualized) 179,834 166,511
Average total stockholders' equity 2,499,976 2,072,170
Less: Average intangibles (1,059,856) (869,347)
---------- --------
Average tangible stockholders' equity 1,440,120 1,202,823
Return on average tangible equity
(non-GAAP) 12.49% 13.84%
===== =====
Return on average tangible common
equity:
---------------------------------
Net income available to common
stockholders (annualized) $162,850 $151,608
Amortization of intangibles, net of
tax (annualized) 8,943 6,861
----- -----
Tangible net income available to
common stockholders (annualized) 171,793 158,469
Average total stockholders' equity 2,499,976 2,072,170
Less: Average preferred
stockholders' equity (106,882) (106,882)
Less: Average intangibles (1,059,856) (869,347)
---------- --------
Average tangible common equity 1,333,238 1,095,941
Return on average tangible common
equity (non-GAAP) 12.89% 14.46%
===== =====
Return on average tangible assets:
----------------------------------
Net income (annualized) $170,891 $159,649
Amortization of intangibles, net of
tax (annualized) 8,943 6,861
----- -----
Tangible net income (annualized) 179,834 166,511
Average total assets 20,677,717 16,606,147
Less: Average intangibles (1,059,856) (869,347)
---------- --------
Average tangible assets 19,617,861 15,736,800
Return on average tangible assets
(non-GAAP) 0.92% 1.06%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q16 3Q16 4Q15
---- ----
Tangible equity / tangible assets (period end):
-----------------------------------------------
Total shareholders' equity $2,571,617 $2,570,580 $2,096,182
Less: intangibles (1,085,935) (1,091,876) (869,809)
---------- ---------- --------
Tangible equity 1,485,682 1,478,704 1,226,373
Total assets 21,844,817 21,583,914 17,557,662
Less: intangibles (1,085,935) (1,091,876) (869,809)
---------- ---------- --------
Tangible assets 20,758,882 20,492,038 16,687,853
Tangible equity / tangible assets (period end) (non-GAAP) 7.16% 7.22% 7.35%
==== ==== ====
Tangible common equity / tangible assets (period end):
------------------------------------------------------
Total stockholders' equity $2,571,617 $2,570,580 $2,096,182
Less: preferred stockholders' equity (106,882) (106,882) (106,882)
Less: intangibles (1,085,935) (1,091,876) (869,809)
---------- ---------- --------
Tangible common equity 1,378,800 1,371,822 1,119,491
Total assets 21,844,817 21,583,914 17,557,662
Less: intangibles (1,085,935) (1,091,876) (869,809)
---------- ---------- --------
Tangible assets 20,758,882 20,492,038 16,687,853
Tangible common equity / tangible assets (period end) (non-GAAP) 6.64% 6.69% 6.71%
==== ==== ====
KEY PERFORMANCE INDICATORS
--------------------------
Efficiency Ratio (FTE):
-----------------------
Total non-interest expense $123,806 $121,050 $101,246
Less: amortization of intangibles (1,602) (3,571) (2,157)
Less: OREO expense (2,401) (1,172) (849)
Less: merger costs (1,649) (299) (1,350)
Less: impairment charge on other assets 0 0 0
--- --- ---
Adjusted non-interest expense 118,154 116,008 96,889
Net interest income 159,283 157,506 127,333
Taxable equivalent adjustment 3,099 2,895 2,097
Non-interest income 51,066 53,240 43,117
Less: net securities gains (116) (299) (503)
Less: gain on redemption of trust preferred securities 0 0 0
--- --- ---
Adjusted net interest income (FTE) + non-interest income 213,332 213,342 172,045
Efficiency ratio (FTE) (non-GAAP) 55.38% 54.38% 56.32%
===== ===== =====
Core Net Interest Margin:
-------------------------
Net interest margin (FTE) (non-GAAP) (2) 3.35% 3.36% 3.38%
Accretable yield adjustment -0.03% -0.04% -0.03%
----- ----- -----
Core net interest margin (FTE) (non-GAAP) (2) 3.32% 3.32% 3.35%
==== ==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31,
------------------
2016 2015
---- ----
KEY PERFORMANCE INDICATORS
--------------------------
Efficiency Ratio (FTE):
-----------------------
Total non-interest expense $511,133 $390,549
Less: amortization of intangibles (11,210) (8,305)
Less: OREO expense (5,154) (4,637)
Less: merger costs (37,439) (3,033)
Less: impairment charge on other
assets (2,585) 0
------ ---
Adjusted non-interest expense 454,745 374,574
Net interest income 611,512 498,222
Taxable equivalent adjustment 11,248 7,636
Non-interest income 201,761 162,410
Less: net securities gains (712) (822)
Less: gain on redemption of trust
preferred securities (2,422) 0
------ ---
Adjusted net interest income (FTE) +
non-interest income 821,387 667,447
Efficiency ratio (FTE) (non-GAAP) 55.36% 56.12%
===== =====
Core Net Interest Margin:
-------------------------
Net interest margin (FTE) (non-GAAP)
(2) 3.38% 3.42%
Accretable yield adjustment -0.04% -0.03%
----- -----
Core net interest margin (FTE) (non-
GAAP) (2) 3.34% 3.39%
==== ====
(1) See non-GAAP
financial
measures
section of
this Press
Release for
additional
information
relating to
the
calculation
of this
item.
(2) The net
interest
margin, core
net interest
margin and
yield on
earning
assets (all
non-GAAP
measures)
are
presented on
a fully
taxable
equivalent
(FTE) basis,
which
adjusts for
the tax
benefit of
income on
certain tax-
exempt loans
and
investments
using the
federal
statutory
tax rate of
35% for each
period
presented.
(3) Does not
include
loans
acquired at
fair value
("acquired
portfolio").
(4) Includes all
other real
estate
owned,
including
those
balances
acquired
through
business
combinations
that have
been in
acquired
loans prior
to
foreclosure.
(5) "Originated
Portfolio"
or
"Originated
Loans and
Leases"
equals loans
and leases
not included
by
definition
in the
Acquired
Portfolio.
(6) "Acquired
Portfolio"
or "Acquired
Loans"
equals loans
acquired at
fair value,
accounted
for in
accordance
with ASC 805
which was
effective
January 1,
2009. 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
accruing as
the
Corporation
primarily
recognizes
interest
income
through
accretion of
the
difference
between the
carrying
value of
these loans
and their
expected
cash flows.
Because
acquired
loans are
initially
recorded at
an amount
estimated to
be
collectible,
losses on
such loans,
when
incurred,
are first
applied
against the
non-
accretable
difference
established
in purchase
accounting
and then to
any
allowance
for loan
losses
recognized
subsequent
to
acquisition.
(7) Represents
contractual
balances.
(8) The average
balances and
yields
earned on
taxable
investment
securities
are based on
historical
cost.
(9) Average
balances for
loans
include non-
accrual
loans.
Loans and
leases
consist of
average
total loans
and leases
less average
unearned
income. The
amount of
loan fees
included in
interest
income is
immaterial.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnb-corporation-reports-fourth-quarter-and-full-year-2016-earnings-300393090.html
SOURCE F.N.B. Corporation
