F.N.B. CORPORATION PITTSBURGH, July 20, 2017 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) reported earnings for the second quarter of 2017 with net income available to common stockholders of $72.4 million, or $0.22 per diluted common share. Comparatively, first quarter of 2017 reported net income available to common stockholders totaled $21.0 million, or $0.09 per diluted common share, and second quarter of 2016 reported net income available to common stockholders totaled $39.3 million, or $0.19 per diluted common share.
Excluding the after-tax impact of merger-related expenses of approximately $0.9 million, second quarter operating net income per diluted common share was $0.23. Comparatively, excluding the after-tax impact of $35.1 million of merger-related expenses and $1.7 million of merger-related net securities gains, first quarter operating net income per diluted common share was $0.23, and excluding the after-tax impact of $6.9 million of merger-related expenses, second quarter of 2016 operating net income per diluted common share was $0.22.
"FNB delivered solid performance, achieving record revenue and record net income, as well as an improved efficiency ratio," said Vincent J. Delie, Jr., President, and Chief Executive Officer. "We are particularly pleased with the early successes in our new markets and continue to be excited about the potential growth opportunities from the expanded footprint. Across the company, our results reflect success in executing on our key strategic objectives designed to deliver long-term sustainable value for our shareholders."
Second Quarter 2017 Highlights (All comparisons refer to the first quarter of 2017, except as noted)
-- Organic growth in total average loans was $305 million, or 6.1%
annualized, with average commercial loan growth of $129 million or 4.1%
annualized, and average consumer loan growth of $173 million or 9.5%
annualized (including residential mortgage, direct and indirect
installment, and home-equity related products).
-- On an organic basis, average total deposits increased $60 million or
1.1% annualized, including an increase in non-interest bearing deposits
of $106 million, somewhat offset by a decrease in time deposits, led by
a planned decline in higher-cost brokered time deposits.
-- The net interest margin (FTE) (non-GAAP) increased 7 bps to 3.42% from
3.35%, and included 3 basis points of purchase accounting accretion and
cash recoveries, compared to 7 basis points in the first quarter.
-- Non-interest income increased $11.0 million or 19.9%, reflecting
broad-based improvements in fee-related services and expanded
opportunities from the Yadkin acquisition.
-- The efficiency ratio on an operating basis (non-GAAP) was 54.3%,
compared to 57.2% in the prior quarter and 55.4% in the year-ago
quarter.
-- Annualized originated net charge-offs were 0.38% of total average
originated loans, compared to 0.25% annualized in the first quarter of
2017 and 0.35% annualized in the year-ago quarter.
The tangible common equity to tangible assets ratio (non-GAAP) was 6.83% at June 30, 2017, compared to 6.80% at March 31, 2017. The tangible book value per common share (non-GAAP) was $6.00 at June 30, 2017, an increase of $0.14 from March 31, 2017.
Non-GAAP measures referenced in this release are 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. 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. Organic growth refers to growth excluding the benefit of initial balances from acquisitions.
Quarterly Results Summary 2Q17 1Q17 2Q16
---- ---- ----
Reported results
Net income available to common stockholders (millions) $72.4 $21.0 $39.3
Net income per diluted common share $0.22 $0.09 $0.19
Book value per common share (period-end) $13.26 $13.16 $11.61
Operating results (non-GAAP)
Operating net income available to common stockholders (millions) $73.3 $54.4 $46.1
Operating net income per diluted common share $0.23 $0.23 $0.22
Tangible common equity to tangible assets (period-end) 6.83% 6.80% 6.68%
Tangible book value per common share (period-end) $6.00 $5.86 $6.40
Average Diluted Common Shares Outstanding (in 000's) 324,868 239,262 211,675
Significant items influencing earnings(1) (millions)
Pre-tax merger-related expenses $(1.4) $(52.7) $(10.6)
After-tax impact of merger-related expenses $(0.9) $(35.1) $(6.9)
Pre-tax merger-related net securities gains $ - $2.6 $ -
After-tax impact of net merger-related securities gains $ - $1.7 $ -
(1) Favorable (unfavorable) impact on earnings
Second Quarter 2017 Results - Comparison to Prior Quarter
Net interest income totaled $218.4 million, increasing $45.7 million or 26.4%. The net interest margin (FTE) (non-GAAP) increased 7 basis points to 3.42% and included $0.5 million of purchase accounting accretion and $1.1 million of cash recoveries, compared to $3.0 million of purchase accounting accretion and $0.3 million of cash recoveries in the first quarter. Total average earning assets increased $4.9 billion or 22.9%, mostly due to the acquired Yadkin balances, as well as organic loan growth of $305 million and a $627 million increase in the securities portfolio, with the increase in average securities commensurate with the larger combined balance sheet.
Average loans totaled $20.4 billion and increased $4.2 billion, or 25.8%, reflecting the acquired Yadkin balances and organic loan growth in the commercial and consumer portfolios. Average organic commercial loan growth totaled $129 million or 4.1% annualized, led by strong origination volume toward the end of the quarter in the Maryland and Cleveland regions. Average organic consumer loan growth was $173 million, or 9.5% annualized, reflecting our expanded footprint, new dealer relationships for indirect auto loans and continued growth in the residential mortgage portfolio.
Average deposits totaled $21.2 billion and increased $4.0 billion, or 23.5%, primarily reflecting the acquired Yadkin deposits. Organic growth in average noninterest bearing deposits and money market balances was mostly offset by planned declines in higher-cost brokered time deposits.
Non-interest income totaled $66.1 million, increasing $11.0 million, or 19.9%. The increase in non-interest income was due primarily to strong performance in capital markets and higher mortgage banking revenues, as well as growth in service charges reflecting increased transaction volume from the expanded customer base. Interest rate swap activity drove growth in capital markets and benefited from a favorable rate environment in the quarter. Increased mortgage banking revenues from higher loan production volume were somewhat offset by seasonal declines in insurance commissions compared to the first quarter.
Non-interest expense totaled $163.7 million, decreasing $23.8 million and including $1.4 million of merger-related expenses. Excluding merger-related expenses, non-interest expense would have increased $27.5 million primarily related to the expanded operations from Yadkin. The efficiency ratio (non-GAAP) was 54.3%, compared to 57.2%.
Credit quality results remained at satisfactory levels. The ratio of non-performing loans and OREO to total loans and OREO increased 1 basis point to 0.78%. For the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO decreased 4 basis points to 1.08%. Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans, increased 5 basis points to 0.99%, compared to 0.94% at March 31, 2017.
Net charge-offs totaled $11.8 million, or 0.23% annualized of total average loans, compared to $8.1 million, or 0.20% annualized in the first quarter of 2017, and $10.1 million, or 0.28% annualized in the second quarter of 2016. For the originated portfolio, net charge-offs were $12.7 million, or 0.38% annualized of total average originated loans, compared to $7.9 million or 0.25% annualized in the first quarter of 2017, and $9.9 million, or 0.35% annualized in the second quarter of 2016. The ratio of the allowance for loan losses to total loans and leases increased 1 basis point from March 31, 2017, to 0.81% at June 30, 2017. For the originated portfolio, the allowance for loan losses to total originated loans was 1.15%, compared to 1.19% at March 31, 2017, which reflects strong organic loan growth and favorable credit performance in certain portfolios. The total provision for loan losses was $16.8 million, compared to $10.9 million in the prior quarter, and $16.6 million in the year-ago quarter.
June 30, 2017 Year-To-Date Results - Comparison to Prior Year-To-Date Period
Net interest income totaled $391.2 million, increasing $96.4 million, or 32.7%, reflecting average earning asset growth of $6.0 billion, or 34.1%, and including $3.6 million of purchase accounting accretion and $1.5 million of cash recoveries, compared to $2.6 million of purchase accounting accretion and $3.3 million of cash recoveries in the first six months of 2016. The net interest margin (FTE) (non-GAAP) declined 2 basis points to 3.39% and included 4 basis points of purchase accounting accretion and cash recoveries in the first six months of 2017, compared to 7 basis points in the first six months of 2016.
Average loans totaled $18.3 billion, an increase of $4.5 billion, or 32.6%, due to the benefit from continued organic loan growth and acquired balances. Organic growth in total average loans equaled $874 million, or 6.1%. Total average organic consumer loan growth of $616 million, or 10.8%, was led by strong growth in residential mortgage and indirect auto loans. Organic growth in average commercial loans totaled $263 million, or 3.1%. Organic commercial loan growth compared to the year-ago period was somewhat offset by prepayment activity in the total commercial loan portfolio experienced in the second half of 2016. Average deposits totaled $19.2 billion and increased $4.2 billion, or 28.3%, due to the benefit of acquired balances and average organic growth of $294 million or 1.9%. On an organic basis, average total transaction deposits increased $479 million or 3.7%. Total loans as a percentage of total deposits were 97.5% at June 30, 2017
Non-interest income totaled $121.2 million, increasing $23.7 million or 24.4%. Non-interest income reflects the benefit of the Yadkin acquisition and continued expansion of our fee-based businesses of capital markets, wealth management, mortgage banking and insurance for our existing and acquired customer base.
Non-interest expense totaled $351.3 million, increasing $85.0 million, or 31.9%. The first six months of 2017 included merger-related expenses of $54.1 million, compared to $35.5 million. Excluding merger-related expenses, total adjusted non-interest expense increased $66.4 million, or 28.8%, with the increase primarily attributable to the expanded operations from recent acquisitions. The efficiency ratio (non-GAAP) was 55.5%, compared to 55.9%.
Credit quality results remained at satisfactory levels. For the originated portfolio, non-performing loans and OREO to total loans and OREO decreased 7 basis points to 1.08%, compared to 1.15%. Total originated delinquency was 0.99% at June 30, 2017, a 3 basis point decrease from June 30, 2016.
Net charge-offs for the first six months of 2017 totaled $20.0 million, or 0.22% annualized of total average loans, compared to 0.23% annualized. Net originated charge-offs were 0.31% annualized of total average originated loans, compared to 0.28% annualized. For the originated portfolio, the allowance for loan losses to total originated loans decreased 11 basis points to 1.15%, compared to 1.26% at June 30, 2016, reflecting strong organic loan growth and favorable credit performance in certain portfolios. The ratio of the allowance for loan losses to total loans decreased 25 basis points to 0.81%, primarily attributable to additional loan balances from acquisitions that were initially recorded at fair value without a corresponding allowance for loan losses in accordance with accounting for business combinations. The total provision for loan losses was $27.6 million, compared to $28.4 million in the prior period.
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, operating earnings 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, and 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. 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. In the event of such a disclosure or release, the Securities and Exchange Commission's (SEC) Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented 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.
Management believes merger-related expenses are not organic costs attendant to operations and facilities. These charges principally represent expenses to satisfy contractual obligations of the acquired entity without any useful benefit to us, to convert and consolidate the entity's records, systems, and data onto our platforms and professional fees related to the transaction. 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.
Cautionary Statement Regarding Forward-Looking Information
A number of statements (i) in this earnings release, (ii) in our presentations, and (iii) in our responses to questions on our conference call discussing our quarterly results and transactions, strategies and plans may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including our expectations relative to business and financial metrics, the execution of the Yadkin transaction, our outlook regarding revenues, expenses, earnings, liquidity, asset quality and statements regarding the impact of technology enhancements and customer and business process improvements.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. F.N.B. 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.
Such forward-looking statements may be expressed in a variety of ways, including the use of future and present tense language expressing expectations or predictions of future financial or business performance or conditions based on current performance and trends. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "will," "should," "project," "goal," and other similar words and expressions. These forward-looking statements involve certain risks and uncertainties. In addition to factors previously disclosed in F.N.B.'s reports filed with the SEC, the following factors among others, could cause actual results to differ materially from forward-looking statements or historical performance: changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; potential difficulties encountered 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 and technology initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and other actions of the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms.
The forward-looking statements contained in (i) in this earning release, (ii) in our presentations, and (iii) in our responses to questions on our conference call and other "forward-looking statements" contained in other public statements of F.N.B. which make reference to the cautionary factors described in this earnings release are based upon reasonable current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond F.N.B.'s control or influence). Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including but not limited to, the risk factors and other uncertainties described in F.N.B.'s Annual Report Form 10-K for the year ended December 31, 2016, our first quarter 2017 Form 10-Q (including the risk factors and risk management discussions) and F.N.B.'s other subsequent filings with the SEC. Our forward-looking statements may also be subject to other risks and uncertainties, including those we discuss elsewhere in this earnings release or other SEC filings or on our corporate website at https://www.fnb-online.com/about-us/investor-relations-shareholder-services. We have included our web address as an inactive textual reference only. Information on our website is not part of this earnings release. All forward-looking statements in this earnings release or in the presentation made in connection herewith (including responses to questions) speak only to July 20, 2017, and F.N.B. undertakes no obligation to update any such forward-looking statements to reflect events, occurrences or circumstances after that date or to reflect the occurrence of unanticipated events.
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, July 20, 2017, at 10:30 AM ET.
Participants are encouraged to pre-register for the conference call at http://dpregister.com/10108931. 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, July 27, 2017. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10108931. Following the call, 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 operating in eight states. FNB holds a significant retail deposit market share in attractive markets including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; and Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina. The Company has total assets of $31 billion, and more than 400 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina and South Carolina. The Company also operates Regency Finance Company, which has more than 75 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee.
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 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.
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
Percent Variance
----------------
2Q17 - 2Q17 -
Statement of earnings 2Q17 1Q17 2Q16 1Q17 2Q16
--------------------- ---- ----
Interest income $251,034 $194,693 $170,931 28.9 46.9
Interest expense 32,619 21,941 16,562 48.7 96.9
Net interest income 218,415 172,752 154,369 26.4 41.5
Non-interest income:
Service charges 33,389 24,807 25,805 34.6 29.4
Trust income 5,715 5,747 5,405 -0.6 5.7
Insurance commissions and fees 4,347 5,141 4,105 -15.4 5.9
Securities commissions and fees 3,887 3,623 3,622 7.3 7.3
Capital markets income 5,004 3,847 4,147 30.1 20.7
Mortgage banking operations 5,173 3,790 2,753 36.5 87.9
Net securities gains (losses) 493 2,625 226 n/m n/m
Other 8,070 5,536 5,348 45.8 50.9
Total non-interest income 66,078 55,116 51,411 19.9 28.5
Total revenue 284,493 227,868 205,780 24.8 38.3
Provision for credit losses 16,756 10,850 16,640 54.4 0.7
Non-interest expense:
Salaries and employee benefits 84,899 73,578 61,329 15.4 38.4
Occupancy and equipment 26,480 20,979 20,207 26.2 31.0
FDIC insurance 9,376 5,387 5,103 74.0 83.7
Amortization of intangibles 4,813 3,098 3,388 55.4 42.1
Other real estate owned 1,008 983 172 2.6 486.9
Merger-related 1,354 52,724 10,551 n/m n/m
Other 35,784 30,806 28,879 16.2 23.9
Total non-interest expense 163,714 187,555 129,629 -12.7 26.3
Income before income taxes 104,023 29,463 59,511 253.1 74.8
Income taxes 29,617 6,484 18,211 356.8 62.6
Net income 74,406 22,979 41,300 223.8 80.2
Preferred stock dividends 2,010 2,010 2,010
Net income available to common stockholders $72,396 $20,969 $39,290 245.2 84.3
======= ======= =======
Earnings per common share:
Basic $0.22 $0.09 $0.19 144.4 15.8
Diluted $0.22 $0.09 $0.19 144.4 15.8
Reconciliation of Operating Net Income (non-GAAP):
--------------------------------------------------
Net income available to common stockholders $72,396 $20,969 $39,290
Pre-tax merger-related expense 1,354 52,724 10,551
Tax impact of merger-related expense (419) (17,579) (3,693)
Pre-tax merger-related net securities gains 0 (2,609) 0
Tax impact of merger-related net securities gains 0 913 0
--- --- ---
Operating net income available to common stockholders (non-GAAP) $73,331 $54,418 $46,148 34.8 58.9
======= ======= =======
Earnings per diluted common share $0.22 $0.09 $0.19
Effect of pre-tax merger-related expense 0.01 0.22 0.05
Effect of tax impact of merger-related expense (0.00) (0.07) (0.02)
Effect of pre-tax merger-related net securities gains 0.00 (0.01) 0.00
Effect of tax impact of merger-related net securities gains 0.00 0.00 0.00
---- ---- ----
Operating earnings per diluted common share (non-GAAP) $0.23 $0.23 $0.22 0.0 4.5
===== ===== =====
Common stock data
-----------------
Average diluted shares outstanding 324,867,759 239,261,683 211,675,449 35.8 53.5
Period end shares outstanding 323,226,474 322,906,763 210,120,601 0.1 53.8
Book value per common share $13.26 $13.16 $11.61 0.8 14.2
Tangible book value per common share (1) $6.00 $5.86 $6.40 2.4 -6.2
Dividend payout ratio (common) 53.89% 121.83% 64.68%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Six Months
Ended June 30, Percent
--------------
Statement of earnings 2017 2016 Variance
--------------------- ----
Interest income $445,727 $326,685 36.4
Interest expense 54,560 31,962 70.7
------ ------
Net interest income 391,167 294,723 32.7
Service charges 58,196 46,939 24.0
Trust income 11,462 10,687 7.3
Insurance commissions and fees 9,488 9,026 5.1
Securities commissions and fees 7,510 6,996 7.3
Capital markets income 8,851 6,996 26.5
Mortgage banking operations 8,963 4,348 106.1
Net securities gains (losses) 3,118 297 n/m
Other 13,606 12,166 11.8
------
Total non-interest income 121,194 97,455 24.4
Total revenue 512,361 392,178 30.6
Provision for credit losses 27,606 28,408 -2.8
Non-interest expense:
Salaries and employee benefits 158,477 117,754 34.6
Occupancy and equipment 47,459 38,029 24.8
FDIC insurance 14,763 9,071 62.8
Amortization of intangibles 7,911 6,037 31.0
Other real estate owned 1,991 1,581 25.9
Merger-related 54,078 35,491 n/m
Other 66,590 58,314 14.2
Total non-interest expense 351,269 266,277 31.9
Income before income taxes 133,486 97,493 36.9
Income taxes 36,101 30,061 20.1
------ ------
Net income 97,385 67,432 44.4
Preferred stock dividends 4,020 4,020
Net income available to common stockholders $93,365 $63,412 47.2
======= =======
Earnings per common share:
Basic $0.33 $0.31 6.5
Diluted $0.33 $0.31 3.2
Reconciliation of Operating Net Income (non-GAAP):
--------------------------------------------------
Net income available to common stockholders $93,365 $63,412
Pre-tax merger-related expense 54,078 35,491
Tax impact of merger-related expense (17,998) (12,104)
Pre-tax merger-related net securities gains (2,609) 0
Tax impact of merger-related net securities gains 913 0
--- ---
Operating net income available to common stockholders (non-GAAP) $127,749 $86,799 47.2
======== =======
Earnings per diluted common share $0.33 $0.31
Effect of pre-tax merger-related expense 0.19 0.17
Effect of tax impact of merger-related expense (0.06) (0.06)
Effect of pre-tax merger-related net securities gains (0.01) 0.00
Effect of tax impact of merger-related net securities gains 0.00 0.00
---- ----
Operating earnings per diluted common share (non-GAAP) $0.45 $0.43 4.7
===== =====
Common stock data
-----------------
Average diluted shares outstanding 282,285,482 203,271,405 38.9
Period end shares outstanding 323,226,474 210,120,601 53.8
Book value per common share $13.26 $11.61 14.2
Tangible book value per common share (1) $6.00 $6.40 -6.2
Dividend payout ratio (common) 69.15% 79.97%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
Percent Variance
----------------
2Q17 - 2Q17 -
Balance Sheet (at period end) 2Q17 1Q17 2Q16 1Q17 2Q16
---------------------------- ---- ----
Assets
Cash and due from banks $397,482 $381,416 $285,783 4.2 39.1
Interest bearing deposits with banks 125,136 68,967 113,244 81.4 10.5
------- ------ -------
Cash and cash equivalents 522,618 450,383 399,027 16.0 31.0
Securities available for sale 2,593,455 2,638,815 2,133,662 -1.7 21.5
Securities held to maturity 3,075,634 2,922,152 2,064,305 5.3 49.0
Loans held for sale 168,727 75,270 12,062 124.2 1298.8
Loans and leases, net of unearned income 20,533,298 20,177,650 14,563,128 1.8 41.0
Allowance for credit losses (165,699) (160,782) (154,369) 3.1 7.3
-------- -------- --------
Net loans and leases 20,367,599 20,016,868 14,408,759 1.8 41.4
Premises and equipment, net 335,297 355,435 224,805 -5.7 49.2
Goodwill 2,244,972 2,250,305 1,021,247 -0.2 119.8
Core deposit and other intangible assets, net 131,410 134,699 83,744 -2.4 56.9
Bank owned life insurance 476,363 467,457 328,127 1.9 45.2
Other assets 837,651 879,310 539,229 -4.7 55.3
-------
Total Assets $30,753,726 $30,190,695 $21,214,967 1.9 45.0
=========== =========== ===========
Liabilities
Deposits:
Non-interest bearing demand $5,544,753 $5,537,679 $3,969,115 0.1 39.7
Interest bearing demand 9,221,408 9,285,393 6,657,651 -0.7 38.5
Savings 2,562,259 2,623,531 2,284,159 -2.3 12.2
Certificates and other time deposits 3,723,287 3,879,669 2,617,637 -4.0 42.2
--------- --------- ---------
Total Deposits 21,051,707 21,326,272 15,528,562 -1.3 35.6
Short-term borrowings 4,425,967 3,585,963 2,260,411 23.4 95.8
Long-term borrowings 656,883 696,206 656,844 -5.6 0.0
Other liabilities 226,731 226,459 223,813 0.1 1.3
------- ------- -------
Total Liabilities 26,361,288 25,834,900 18,669,630 2.0 41.2
Stockholders' Equity
Preferred Stock 106,882 106,882 106,882 0.0 0.0
Common stock 3,250 3,246 2,116 0.1 53.6
Additional paid-in capital 4,024,576 4,020,527 2,220,243 0.1 81.3
Retained earnings 333,201 299,818 255,921 11.1 30.2
Accumulated other comprehensive loss (56,383) (56,969) (25,459) -1.0 121.5
Treasury stock (19,088) (17,709) (14,366) 7.8 32.9
-------
Total Stockholders' Equity 4,392,438 4,355,795 2,545,337 0.8 72.6
--------- --------- ---------
Total Liabilities and Stockholders' Equity $30,753,726 $30,190,695 $21,214,967 1.9 45.0
=========== =========== ===========
Selected average balances
-------------------------
Total assets $30,364,645 $24,062,099 $20,780,413 26.2 46.1
Earning assets 26,149,066 21,272,715 18,496,395 22.9 41.4
Interest bearing deposits with banks 87,750 90,242 109,432 -2.8 -19.8
Securities 5,606,957 4,979,645 4,026,101 12.6 39.3
Loans held for sale 93,312 12,358 15,734 655.1 493.1
Loans and leases, net of unearned income 20,361,047 16,190,470 14,345,128 25.8 41.9
Allowance for credit losses 165,888 161,371 150,487 2.8 10.2
Goodwill and intangibles 2,377,711 1,398,635 1,100,129 70.0 116.1
Deposits 21,155,452 17,132,627 15,655,637 23.5 35.1
Short-term borrowings 3,886,410 3,202,033 1,716,565 21.4 126.4
Long-term borrowings 680,414 534,762 657,059 27.2 3.6
Total stockholders' equity 4,386,438 3,007,853 2,532,226 45.8 73.2
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) 2017 2016 Variance
---------------------------- ----
Assets
Cash and due from banks $397,482 $285,783 39.1
Interest bearing deposits with banks 125,136 113,244 10.5
------- -------
Cash and cash equivalents 522,618 399,027 31.0
Securities available for sale 2,593,455 2,133,662 21.5
Securities held to maturity 3,075,634 2,064,305 49.0
Loans held for sale 168,727 12,062 1298.8
Loans and leases, net of unearned income 20,533,298 14,563,128 41.0
Allowance for credit losses (165,699) (154,369) 7.3
-------- --------
Net loans and leases 20,367,599 14,408,759 41.4
Premises and equipment, net 335,297 224,805 49.2
Goodwill 2,244,972 1,021,247 119.8
Core deposit and other intangible assets, net 131,410 83,744 56.9
Bank owned life insurance 476,363 328,127 45.2
Other assets 837,651 539,229 55.3
Total Assets $30,753,726 $21,214,967 45.0
=========== ===========
Liabilities
Deposits:
Non-interest bearing demand $5,544,753 $3,969,115 39.7
Interest bearing demand 9,221,408 6,657,651 38.5
Savings 2,562,259 2,284,159 12.2
Certificates and other time deposits 3,723,287 2,617,637 42.2
--------- ---------
Total Deposits 21,051,707 15,528,562 35.6
Short-term borrowings 4,425,967 2,260,411 95.8
Long-term borrowings 656,883 656,844 0.0
Other liabilities 226,731 223,813 1.3
------- -------
Total Liabilities 26,361,288 18,669,630 41.2
Stockholders' Equity
Preferred Stock 106,882 106,882 0.0
Common stock 3,250 2,116 53.6
Additional paid-in capital 4,024,576 2,220,243 81.3
Retained earnings 333,201 255,921 30.2
Accumulated other comprehensive loss (56,383) (25,459) 121.5
Treasury stock (19,088) (14,366) 32.9
Total Stockholders' Equity 4,392,438 2,545,337 72.6
--------- ---------
Total Liabilities and Stockholders' Equity $30,753,726 $21,214,967 45.0
=========== ===========
Selected average balances
-------------------------
Total assets $27,230,782 $19,848,526 37.2
Earning assets 23,724,362 17,697,479 34.1
Interest bearing deposits with banks 88,989 116,439 -23.6
Securities 5,295,034 3,776,149 40.2
Loans held for sale 53,059 10,931 385.4
Loans and leases, net of unearned income 18,287,280 13,793,960 32.6
Allowance for credit losses 163,642 146,715 11.5
Goodwill and intangibles 1,890,878 1,037,401 82.3
Deposits 19,155,152 14,925,699 28.3
Short-term borrowings 3,546,112 1,638,035 116.5
Long-term borrowings 607,991 652,775 -6.9
Total stockholders' equity 3,700,953 2,430,970 52.2
Preferred stockholders' equity 106,882 106,882 0.0
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
Percent Variance
----------------
2Q17 - 2Q17 -
2Q17 1Q17 2Q16 1Q17 2Q16
---- ---- ---- ---- ----
Performance ratios
------------------
Return on average equity 6.80% 3.10% 6.56%
Return on average tangible equity (1) 15.26% 6.23% 12.14%
Return on average tangible common equity (1) 15.69% 6.14% 12.50%
Return on average assets 0.98% 0.39% 0.80%
Return on average tangible assets (1) 1.11% 0.45% 0.89%
Net interest margin (FTE) (1) (2) 3.42% 3.35% 3.41%
Yield on earning assets (FTE) (1) (2) 3.92% 3.77% 3.77%
Cost of interest-bearing liabilities 0.65% 0.54% 0.47%
Cost of funds 0.51% 0.43% 0.37%
Efficiency ratio (1) 54.26% 57.15% 55.45%
Effective tax rate 28.47% 22.01% 30.60%
Capital ratios
--------------
Equity / assets (period end) 14.28% 14.43% 12.00%
Common equity / assets (period end) 13.94% 14.07% 11.49%
Leverage ratio 7.63% 9.64% 7.73%
Tangible equity / tangible assets (period end) (1) 7.20% 7.18% 7.21%
Tangible common equity / tangible assets (period end) (1) 6.83% 6.80% 6.68%
Balances at period end
----------------------
Loans and Leases:
-----------------
Commercial real estate $8,822,929 $8,768,357 $5,355,625 0.6 64.7
Commercial and industrial 3,910,927 3,792,679 3,079,605 3.1 27.0
Commercial leases 226,483 197,071 200,350 14.9 13.0
------- ------- -------
Commercial loans and leases 12,960,339 12,758,107 8,635,580 1.6 50.1
Direct installment 1,949,980 1,965,118 1,830,206 -0.8 6.5
Residential mortgages 2,429,843 2,342,167 1,678,646 3.7 44.8
Indirect installment 1,374,524 1,259,947 1,076,817 9.1 27.6
Consumer LOC 1,788,534 1,805,996 1,290,053 -1.0 38.6
Other 30,079 46,315 51,826 -35.1 -42.0
Total loans and leases $20,533,299 $20,177,650 $14,563,128 1.8 41.0
=========== ===========
Deposits:
---------
Non-interest bearing deposits $5,544,753 $5,537,679 $3,969,115 0.1 39.7
Interest bearing demand 9,221,408 9,285,393 6,657,651 -0.7 38.5
Savings 2,562,259 2,623,531 2,284,159 -2.3 12.2
Certificates of deposit and other time deposits 3,723,287 3,879,669 2,617,637 -4.0 42.2
Total deposits $21,051,707 $21,326,272 $15,528,562 -1.3 35.6
Average balances
----------------
Loans and Leases:
-----------------
Commercial real estate $8,779,618 $6,222,381 $5,276,960 41.1 66.4
Commercial and industrial 3,851,803 3,245,732 3,062,936 18.7 25.8
Commercial leases 199,648 196,159 201,481 1.8 -0.9
------- ------- -------
Commercial loans and leases 12,831,069 9,664,272 8,541,377 32.8 50.2
Direct installment 1,956,027 1,869,218 1,807,048 4.6 8.2
Residential mortgages 2,412,881 1,969,374 1,615,438 22.5 49.4
Indirect installment 1,310,729 1,226,488 1,044,870 6.9 25.4
Consumer LOC 1,797,266 1,416,184 1,281,636 26.9 40.2
Other 53,075 44,934 54,759 18.1 -3.1
Total loans and leases $20,361,047 $16,190,470 $14,345,128 25.8 41.9
Deposits:
---------
Non-interest bearing deposits $5,466,286 $4,414,354 $3,941,857 23.8 38.7
Interest bearing demand 9,297,726 7,416,346 6,744,744 25.4 37.9
Savings 2,592,726 2,412,798 2,292,185 7.5 13.1
Certificates of deposit and other time deposits 3,798,714 2,889,129 2,676,851 31.5 41.9
Total deposits $21,155,452 $17,132,627 $15,655,637 23.5 35.1
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Six Months
Ended June 30, Percent
--------------
2017 2016 Variance
---- ---- --------
Performance ratios
------------------
Return on average equity 5.31% 5.58%
Return on average tangible equity (1) 11.28% 10.23%
Return on average tangible common equity (1) 11.51% 10.45%
Return on average assets 0.72% 0.68%
Return on average tangible assets (1) 0.82% 0.76%
Net interest margin (FTE) (1) (2) 3.39% 3.41%
Yield on earning assets (FTE) (1) (2) 3.85% 3.77%
Cost of interest-bearing liabilities 0.60% 0.47%
Cost of funds 0.47% 0.37%
Efficiency ratio (1) 55.54% 55.88%
Effective tax rate 27.04% 30.83%
Capital ratios
--------------
Equity / assets (period end) 14.28% 12.00%
Common equity / assets (period end) 13.94% 11.49%
Leverage ratio 7.63% 7.73%
Tangible equity / tangible assets (period end) (1) 7.20% 7.21%
Tangible common equity / tangible assets (period end) (1) 6.83% 6.68%
Balances at period end
----------------------
Loans and Leases:
-----------------
Commercial real estate $8,822,929 $5,355,625 64.7
Commercial and industrial 3,910,927 3,079,605 27.0
Commercial leases 226,483 200,350 13.0
------- -------
Commercial loans and leases 12,960,339 8,635,580 50.1
Direct installment 1,949,980 1,830,206 6.5
Residential mortgages 2,429,843 1,678,646 44.8
Indirect installment 1,374,524 1,076,817 27.6
Consumer LOC 1,788,534 1,290,053 38.6
Other 30,079 51,826 -42.0
Total loans and leases $20,533,299 $14,563,128 41.0
Deposits:
---------
Non-interest bearing deposits $5,544,753 $3,969,115 39.7
Interest bearing demand 9,221,408 6,657,651 38.5
Savings 2,562,259 2,284,159 12.2
Certificates of deposit and other time deposits 3,723,287 2,617,637 42.2
Total deposits $21,051,707 $15,528,562 35.6
Average balances
----------------
Loans and Leases:
-----------------
Commercial real estate $7,441,408 $5,048,341 47.4
Commercial and industrial 3,617,098 2,909,198 24.3
Commercial leases 197,913 202,851 -2.4
------- -------
Commercial loans and leases 11,256,419 8,160,390 37.9
Direct installment 1,912,862 1,777,699 7.6
Residential mortgages 2,192,353 1,536,920 42.6
Indirect installment 1,268,841 1,025,906 23.7
Consumer LOC 1,607,778 1,243,699 29.3
Other 49,027 49,346 -0.6
Total loans and leases $18,287,280 $13,793,960 32.6
Deposits:
---------
Non-interest bearing deposits $4,943,226 $3,695,543 33.8
Interest bearing demand 8,362,233 6,430,562 30.0
Savings 2,503,259 2,172,974 15.2
Certificates of deposit and other time deposits 3,346,434 2,626,619 27.4
Total deposits $19,155,152 $14,925,699 28.3
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
Percent Variance
----------------
2Q17 - 2Q17 -
Asset Quality Data 2Q17 1Q17 2Q16 1Q17 2Q16
------------------ ---- ----
Non-Performing Assets
---------------------
Non-performing loans (3)
Non-accrual loans $95,303 $81,390 $67,475 17.1 41.2
Restructured loans 19,487 23,988 22,542 -18.8 -13.6
------ ------ ------
Non-performing loans 114,790 105,378 90,017 8.9 27.5
Other real estate owned (OREO) (4) 45,712 50,088 48,344 -8.7 -5.4
------ ------ ------
Total non-performing assets $160,502 $155,466 $138,361 3.2 16.0
======== ======== ========
Non-performing loans / total loans and leases 0.56% 0.52% 0.62%
Non-performing loans / total originated loans
and leases (5) 0.75% 0.77% 0.74%
Non-performing loans + OREO / total loans and
leases + OREO 0.78% 0.77% 0.95%
Non-performing loans + OREO / total originated
loans and leases + OREO (5) 1.08% 1.12% 1.15%
Non-performing assets / total assets 0.52% 0.51% 0.65%
Allowance Rollforward
---------------------
Allowance for credit losses (originated portfolio) (5)
Balance at beginning of period $154,214 $150,792 $142,220 2.3 8.4
Provision for credit losses 17,538 11,336 16,384 54.7 7.0
Net loan charge-offs (12,660) (7,914) (9,885) 60.0 28.1
Allowance for credit losses (originated portfolio) (5) 159,092 154,214 148,719 3.2 7.0
Allowance for credit losses (acquired portfolio) (6)
Balance at beginning of period 6,568 7,267 5,580 -9.6 17.7
Provision for credit losses (782) (486) 256 60.9 -405.5
Net loan (charge-offs)/recoveries 821 (213) (186) -485.4 -541.4
--- ---- ----
Allowance for credit losses (acquired portfolio) (6) 6,607 6,568 5,650 0.6 16.9
Total allowance for credit losses $165,699 $160,782 $154,369 3.1 7.3
======== ======== ========
Allowance for credit losses / total loans and leases 0.81% 0.80% 1.06%
Allowance for credit losses (originated loans and leases) /
total originated loans and leases (5) 1.15% 1.19% 1.26%
Allowance for credit losses (originated loans and leases) /
total non-performing loans (3) 152.77% 153.78% 169.89%
Net loan charge-offs (annualized) / total average loans
and leases 0.23% 0.20% 0.28%
Net loan charge-offs on originated loans and leases
(annualized) / total average originated loans and
leases (5) 0.38% 0.25% 0.35%
Delinquency - Originated Portfolio (5)
-------------------------------------
Loans 30-89 days past due $43,684 $38,398 $48,706 13.8 -10.3
Loans 90+ days past due 8,448 6,932 6,186 21.9 36.6
Non-accrual loans 84,651 76,294 64,998 11.0 30.2
------ ------ ------
Total past due and non-accrual loans $136,783 $121,624 $119,890 12.5 14.1
======== ======== ========
Total past due and non-accrual loans / total originated loans 0.99% 0.94% 1.02%
Memo item:
Delinquency - Acquired Portfolio (6) (7)
---------------------------------------
Loans 30-89 days past due $86,943 $85,170 $42,939 2.1 102.5
Loans 90+ days past due 61,422 69,213 47,085 -11.3 30.4
Non-accrual loans 10,652 5,096 2,477 n/m n/m
Total past due and non-accrual loans $159,017 $159,479 $92,501 -0.3 71.9
======== ======== =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Six Months
Ended June 30, Percent
--------------
Asset Quality Data 2017 2016 Variance
------------------ ----
Non-Performing Assets
---------------------
Non-performing loans (3)
Non-accrual loans $95,303 $67,475 41.2
Restructured loans 19,487 22,542 -13.6
Non-performing loans 114,790 90,017 27.5
Other real estate owned (OREO) (4) 45,712 48,344 -5.4
Non-performing loans and OREO 160,502 138,361 16.0
Non-performing investments 0 0 n/m
Total non-performing assets $160,502 $138,361 16.0
Non-performing loans / total loans and leases 0.56% 0.62%
Non-performing loans / total originated loans
and leases (5) 0.75% 0.74%
Non-performing loans + OREO / total loans and
leases + OREO 0.78% 0.95%
Non-performing loans + OREO / total originated
loans and leases + OREO (5) 1.08% 1.15%
Non-performing assets / total assets 0.52% 0.65%
Allowance Rollforward
---------------------
Allowance for credit losses (originated portfolio) (5)
Balance at beginning of period $150,792 $135,285 11.5
Provision for credit losses 28,874 29,224 -1.2
Net loan charge-offs (20,574) (15,790) 30.3
Allowance for credit losses (originated portfolio) (5) 159,092 148,719 7.0
Allowance for credit losses (acquired portfolio) (6)
Balance at beginning of period 7,267 6,727 8.0
Provision for credit losses (1,268) (816) 55.4
Net loan (charge-offs)/recoveries 608 (261) -333.0
--- ----
Allowance for credit losses (acquired portfolio) (6) 6,607 5,650 16.9
Total allowance for credit losses $165,699 $154,369 7.3
======== ========
Allowance for credit losses / total loans and leases 0.81% 1.06%
Allowance for credit losses (originated loans and leases) /
total originated loans and leases (5) 1.15% 1.26%
Allowance for credit losses (originated loans and leases) /
total non-performing loans (3) 152.77% 169.89%
Net loan charge-offs (annualized) / total average loans
and leases 0.22% 0.23%
Net loan charge-offs on originated loans and leases
(annualized) / total average originated loans and
leases (5) 0.31% 0.28%
Delinquency - Originated Portfolio (5)
-------------------------------------
Loans 30-89 days past due $43,684 $48,706 -10.3
Loans 90+ days past due 8,448 6,186 36.6
Non-accrual loans 84,651 64,998 30.2
Total past due and non-accrual loans $136,783 $119,890 14.1
======== ========
Total past due and non-accrual loans / total originated loans 0.99% 1.02%
Memo item:
Delinquency - Acquired Portfolio (6) (7)
---------------------------------------
Loans 30-89 days past due $86,943 $42,939 102.5
Loans 90+ days past due 61,422 47,085 30.4
Non-accrual loans 10,652 2,477 n/m
Total past due and non-accrual loans $159,017 $92,501 71.9
======== =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2Q17 1Q17
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 $87,750 $161 0.74% $85,663 $180 0.85%
Federal funds sold 0 0 0.00% 4,579 8 0.72%
Taxable investment securities (8) 4,923,492 25,130 2.04% 4,479,439 22,479 2.01%
Non-taxable investment securities (2) 683,465 7,128 4.17% 500,206 5,190 4.15%
Loans held for sale 93,312 1,702 8.70% 12,358 163 5.61%
Loans and leases (2) (9) 20,361,047 221,387 4.37% 16,190,470 170,195 4.26%
Total Interest Earning Assets (2) 26,149,066 255,508 3.92% 21,272,715 198,215 3.77%
----------
Cash and due from banks 338,752 294,739
Allowance for loan losses (165,888) (161,371)
Premises and equipment 350,255 273,908
Other assets 3,692,460 2,382,108
Total Assets $30,364,645 $24,062,099
Liabilities
Deposits:
Interest-bearing demand $9,297,726 8,256 0.36% $7,416,346 4,831 0.26%
Savings 2,592,726 641 0.10% 2,412,798 521 0.09%
Certificates and other time 3,798,714 7,856 0.83% 2,889,129 6,388 0.90%
Short-term borrowings 3,886,410 10,959 1.13% 3,202,033 6,674 0.84%
Long-term borrowings 680,414 4,907 2.89% 534,762 3,527 2.68%
Total Interest Bearing Liabilities 20,255,990 32,619 0.65% 16,455,068 21,941 0.54%
----------
Non-interest bearing demand deposits 5,466,286 4,414,354
Other liabilities 255,931 184,824
Total Liabilities 25,978,207 21,054,246
Stockholders' equity 4,386,438 3,007,853
Total Liabilities and Stockholders' Equity $30,364,645 $24,062,099
Net Interest Earning Assets $5,893,076 $4,817,647
========== ==========
Net Interest Income (FTE) (2) 222,889 176,274
Tax Equivalent Adjustment (4,474) (3,522)
------ ------
Net Interest Income $218,415 $172,752
======== ========
Net Interest Spread 3.27% 3.23%
==== ====
Net Interest Margin (2) 3.42% 3.35%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2Q16
Interest Average
Average Earned Yield
Outstanding or Paid or Rate
Assets
Interest bearing deposits with banks $109,432 $97 0.36%
Federal funds sold 0 0 0.00%
Taxable investment securities (8) 3,728,873 17,977 1.93%
Non-taxable investment securities (2) 297,228 3,266 4.40%
Loans held for sale 15,734 191 4.86%
Loans and leases (2) (9) 14,345,128 152,191 4.27%
Total Interest Earning Assets (2) 18,496,395 173,722 3.77%
----------
Cash and due from banks 284,061
Allowance for loan losses (150,487)
Premises and equipment 221,030
Other assets 1,929,414
Total Assets $20,780,413
Liabilities
Deposits:
Interest-bearing demand $6,744,744 4,051 0.24%
Savings 2,292,185 465 0.08%
Certificates and other time 2,676,851 5,908 0.89%
Short-term borrowings 1,716,565 2,559 0.59%
Long-term borrowings 657,059 3,579 2.19%
Total Interest Bearing Liabilities 14,087,404 16,562 0.47%
----------
Non-interest bearing demand deposits 3,941,857
Other liabilities 218,926
Total Liabilities 18,248,187
Stockholders' equity 2,532,226
Total Liabilities and Stockholders' Equity $20,780,413
Net Interest Earning Assets $4,408,991
==========
Net Interest Income (FTE) (2) 157,160
Tax Equivalent Adjustment (2,791)
------
Net Interest Income $154,369
========
Net Interest Spread 3.30%
====
Net Interest Margin (2) 3.41%
====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Six Months Ended June 30,
---------------------------------
2017 2016
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 $86,712 $341 0.79% $116,439 $214 0.37%
Federal funds sold 2,277 8 0.72% 0 0 0.00%
Taxable investment securities (8) 4,702,692 47,609 2.02% 3,491,673 34,469 1.98%
Non-taxable investment securities (2) 592,342 12,318 4.16% 284,476 6,358 4.47%
Loans held for sale 53,059 1,868 7.96% 10,931 269 4.92%
Loans and leases (2) (9) 18,287,280 391,579 4.32% 13,793,960 290,628 4.24%
Total Interest Earning Assets (2) 23,724,362 453,723 3.85% 17,697,479 331,938 3.77%
---------- ----------
Cash and due from banks 316,867 266,505
Allowance for loan losses (163,642) (146,715)
Premises and equipment 312,292 206,286
Other assets 3,040,903 1,824,971
Total Assets $27,230,782 $19,848,526
Liabilities
Deposits:
Interest-bearing demand $8,362,233 13,087 0.32% $6,430,562 7,507 0.23%
Savings 2,503,259 1,162 0.09% 2,172,975 829 0.08%
Certificates and other time 3,346,434 14,244 0.86% 2,626,619 11,574 0.89%
Short-term borrowings 3,546,112 17,633 1.00% 1,638,035 4,920 0.60%
Long-term borrowings 607,991 8,434 2.80% 652,775 7,132 2.20%
Total Interest Bearing Liabilities 18,366,029 54,560 0.60% 13,520,966 31,962 0.48%
---------- ----------
Non-interest bearing demand deposits 4,943,226 3,695,543
Other liabilities 220,574 201,047
Total Liabilities 23,529,829 17,417,556
Stockholders' equity 3,700,953 2,430,970
Total Liabilities and Stockholders' Equity $27,230,782 $19,848,526
Net Interest Earning Assets $5,358,333 $4,176,513
========== ==========
Net Interest Income (FTE) (2) 399,163 299,976
Tax Equivalent Adjustment (7,996) (5,253)
------ ------
Net Interest Income $391,167 $294,723
======== ========
Net Interest Spread 3.25% 3.29%
==== ====
Net Interest Margin (2) 3.39% 3.41%
==== ====
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 provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The non-GAAP financial measures we use may differ from the non-GAAP financial measures other financial institutions use to
measure their results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with U.S. GAAP. The following tables summarize the non-GAAP financial measures included in this press release and derived from amounts reported in our
financial statements.
For the Six Months
Ended June 30,
--------------
2Q17 1Q17 2Q16 2017 2016
---- ---- ---- ---- ----
Return on average tangible equity:
----------------------------------
Net income (annualized) $298,443 $93,191 $166,106 $196,384 $135,605
Amortization of intangibles, net of tax (annualized) 12,547 8,166 8,856 10,369 7,891
------ ----- ----- ------ -----
Tangible net income (annualized) 310,990 101,357 174,962 206,753 143,496
Average total stockholders' equity 4,386,438 3,007,853 2,532,226 3,700,953 2,430,970
Less: Average intangibles (2,348,767) (1,381,712) (1,090,542) (1,867,911) (1,028,069)
---------- ---------- ---------- ---------- ----------
Average tangible stockholders' equity 2,037,671 1,626,141 1,441,684 1,833,042 1,402,902
Return on average tangible equity (non-GAAP) 15.26% 6.23% 12.14% 11.28% 10.23%
===== ==== ===== ===== =====
Return on average tangible common equity:
-----------------------------------------
Net income available to common stockholders (annualized) $290,381 $85,042 $158,025 $188,277 $127,520
Amortization of intangibles, net of tax (annualized) 12,547 8,166 8,856 10,369 7,891
------ ----- ----- ------ -----
Tangible net income available to common stockholders (annualized) 302,928 93,209 166,881 198,646 135,411
Average total stockholders' equity 4,386,438 3,007,853 2,532,226 3,700,953 2,430,970
Less: Average preferred stockholders' equity (106,882) (106,882) (106,882) (106,882) (106,882)
Less: Average intangibles (2,348,767) (1,381,712) (1,090,542) (1,867,911) (1,028,069)
---------- ---------- ---------- ---------- ----------
Average tangible common equity 1,930,789 1,519,259 1,334,802 1,726,160 1,296,020
Return on average tangible common equity (non-GAAP) 15.69% 6.14% 12.50% 11.51% 10.45%
===== ==== ===== ===== =====
Return on average tangible assets:
----------------------------------
Net income (annualized) $298,443 $93,191 $166,106 $196,384 $135,605
Amortization of intangibles, net of tax (annualized) 12,547 8,166 8,856 10,369 7,891
------ ----- ----- ------ -----
Tangible net income (annualized) 310,990 101,357 174,962 206,753 143,496
Average total assets 30,364,645 24,062,099 20,780,413 27,230,782 19,848,526
Less: Average intangibles (2,348,767) (1,381,712) (1,090,542) (1,867,911) (1,028,069)
---------- ---------- ---------- ---------- ----------
Average tangible assets 28,015,878 22,680,387 19,689,871 25,362,871 18,820,457
Return on average tangible assets (non-GAAP) 1.11% 0.45% 0.89% 0.82% 0.76%
==== ==== ==== ==== ====
Tangible book value per common share:
-------------------------------------
Total stockholders' equity $4,392,438 $4,355,795 $2,545,337
Less: preferred stockholders' equity (106,882) (106,882) (106,882)
Less: intangibles (2,346,653) (2,356,800) (1,094,687)
---------- ---------- ----------
Tangible common equity 1,938,903 1,892,113 1,343,768
Common shares outstanding 323,226,474 322,906,763 210,120,601
Tangible book value per common share (non-GAAP) $6.00 $5.86 $6.40
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Six Months
Ended June 30,
--------------
2Q17 1Q17 2Q16 2017 2016
---- ---- ----
Tangible equity / tangible assets (period end):
-----------------------------------------------
Total shareholders' equity $4,392,438 $4,355,795 $2,545,337
Less: intangibles (2,346,653) (2,356,800) (1,094,687)
---------- ---------- ----------
Tangible equity 2,045,785 1,998,995 1,450,650
Total assets 30,753,726 30,190,695 21,214,967
Less: intangibles (2,346,653) (2,356,800) (1,094,687)
---------- ---------- ----------
Tangible assets 28,407,073 27,833,895 20,120,280
Tangible equity / tangible assets (period end) (non-GAAP) 7.20% 7.18% 7.21%
==== ==== ====
Tangible common equity / tangible assets (period end):
------------------------------------------------------
Total stockholders' equity $4,392,438 $4,355,795 $2,545,337
Less: preferred stockholders' equity (106,882) (106,882) (106,882)
Less: intangibles (2,346,653) (2,356,800) (1,094,687)
---------- ---------- ----------
Tangible common equity 1,938,903 1,892,113 1,343,768
Total assets 30,753,726 30,190,695 21,214,967
Less: intangibles (2,346,653) (2,356,800) (1,094,687)
---------- ---------- ----------
Tangible assets 28,407,073 27,833,895 20,120,280
Tangible common equity / tangible assets (period end) (non-GAAP) 6.83% 6.80% 6.68%
==== ==== ====
KEY PERFORMANCE INDICATORS
--------------------------
Efficiency Ratio (FTE):
-----------------------
Total non-interest expense $163,714 $187,555 $129,629 $351,269 $266,277
Less: amortization of intangibles (4,813) (3,098) (3,388) (7,911) (6,037)
Less: OREO expense (1,008) (983) (172) (1,991) (1,581)
Less: merger-related expense (1,354) (52,724) (10,551) (54,078) (35,491)
Less: impairment charge on other assets 0 0 0 0 (2,585)
--- --- --- --- ------
Adjusted non-interest expense 156,539 130,750 115,520 287,289 220,582
Net interest income 218,415 172,752 154,369 391,167 294,723
Taxable equivalent adjustment 4,474 3,522 2,791 7,996 5,253
Non-interest income 66,078 55,116 51,411 121,194 97,455
Less: net securities gains (493) (2,625) (226) (3,118) (297)
Less: gain on redemption of trust preferred securities 0 0 0 0 (2,422)
--- --- --- --- ------
Adjusted net interest income (FTE) + non-interest income 288,474 228,765 208,344 517,239 394,712
Efficiency ratio (FTE) (non-GAAP) 54.26% 57.15% 55.45% 55.54% 55.88%
===== ===== ===== ===== =====
(1) See non-GAAP
financial
measures
section of
this Press
Release for
additional
information
relating to
the
calculation
of this
item.
(2) The net
interest
margin and
yield on
earning
assets (all
non-GAAP
measures)
are
presented on
a fully
taxable
equivalent
(FTE) basis,
which
adjusts for
the tax
benefit of
income on
certain tax-
exempt loans
and
investments
using the
federal
statutory
tax rate of
35% for each
period
presented.
Does not
include
loans
acquired at
fair value
("acquired
(3) 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
our estimate
of
acquisition-
date fair
value and
these loans
are
considered
accruing as
we primarily
recognize
interest
income
through
accretion of
the
difference
between the
carrying
value of
these loans
and their
expected
cash flows.
Because
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.
View original content:http://www.prnewswire.com/news-releases/fnb-corporation-reports-second-quarter-2017-earnings-300491341.html
SOURCE F.N.B. Corporation
