F.N.B. CORPORATION PITTSBURGH, Jan. 21, 2016 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported results for the fourth quarter and full year of 2015. Net income available to common shareholders for the fourth quarter of 2015 totaled $37.1 million or $0.21 per diluted common share. Comparatively, third quarter of 2015 net income totaled $38.0 million, or $0.22 per diluted common share, and fourth quarter of 2014 net income totaled $37.3 million or $0.21 per diluted common share. Net income available to common shareholders for the full year of 2015 totaled $151.6 million, or $0.86 per diluted common share, compared to net income of $135.7 million, or $0.80 per diluted common share in 2014. Operating results are presented in the tables below.
Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "We are pleased with this quarter's results and another tremendous year. We were able to achieve record operating net income of $154 million, full-year operating earnings per share growth of 9% and significant revenue growth of 8% with strong contributions from our fee-based businesses. Through excellent teamwork from our employees, we delivered outstanding performance in 2015, led by continued growth in loans and low-cost deposits, solid asset quality and further improvement in the efficiency ratio. As we enter 2016, we are well-positioned to realize the benefits of our added scale to continue generating positive operating leverage. I am confident in our team's ability to execute our strategy and deliver long-term success for our employees, customers and shareholders."
Quarterly Results Summary 4Q15 3Q15 4Q14
---- ---- ----
Reported Results
Net income available to common
shareholders ($ in millions) $37.1 $38.0 $37.3
Net income per diluted common
share $0.21 $0.22 $0.21
Operating Results (Non-GAAP)
Operating net income available
to common shareholders ($ in
millions) $38.1 $38.9 $36.4
Operating net income per diluted
common share $0.22 $0.22 $0.21
Average Diluted Shares
Outstanding (in 000's) 176,907 176,513 175,630
----------------------- ------- ------- -------
Full Year Results Summary 2015 2014
---- ----
Reported Results
Net income available to common
shareholders ($ in millions) $151.6 $135.7
Net income per diluted common share $0.86 $0.80
Operating Results (Non-GAAP)
Operating net income available to common
shareholders ($ in millions) $153.7 $135.6
Operating net income per diluted common
share $0.87 $0.80
Average Diluted Shares Outstanding (in
000's) 176,339 169,079
Fourth Quarter 2015 Highlights
(All comparisons to the prior quarter, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances acquired via an acquisition.)
-- Organic growth in total average loans was $250 million, or 8.4%
annualized, with average commercial loan growth of $174 million, or
10.5% annualized, and average consumer loan growth of $79 million, or
6.1% annualized.
-- On an organic basis, average total deposits and customer repurchase
agreements grew $284 million, or 8.8% annualized. Average transaction
deposits and customer repurchase agreements grew organically $360
million, or 14.0% annualized.
-- The net interest margin was stable at 3.38%, compared to 3.39% in the
prior quarter.
-- The efficiency ratio was 56.3%, compared to 55.6% in the prior quarter
and 56.1% in the year-ago quarter.
-- Credit quality results reflect consistent non-performing loan and
delinquency levels. For the originated portfolio, non-performing loans
and other real estate owned (OREO) to total loans and OREO was 0.99%,
the same as the prior quarter, and total originated delinquency
increased 4 basis points to 0.93% at December 31, 2015. Net originated
charge-offs were 0.25% annualized of total average originated loans,
compared to 0.22% annualized in third quarter of 2015 and 0.17%
annualized in the year-ago quarter.
-- The tangible common equity to tangible assets ratio was 6.71% at
December 31, 2015. The tangible book value per share increased $0.02 to
$6.38 at December 31, 2015.
Fourth Quarter 2015 Results - Comparison to Prior Quarter
(All comparisons refer to the third quarter of 2015, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances acquired via an acquisition.)
Results include the impact from the acquisition of five Bank of America branches (BofA) on September 18, 2015.
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis (FTE) totaled $129.4 million, increasing $2.3 million, or 1.8%, reflecting average earning asset growth of $296 million, or 7.9% annualized, and a higher benefit from accretable yield adjustments. The net interest margin was 3.38%, compared to 3.39% in the prior quarter. During the fourth quarter, the core net interest margin was reduced by 3 basis points from the issuance of $100 million in subordinated debt on October 2, 2015, which was issued for general corporate purposes and, among other reasons, to support growth of our principal subsidiary and its businesses. Excluding accretable yield adjustments and the impact of the subordinated debt issuance, the core net interest margin would have remained stable at 3.38%.
Average loans totaled $12.0 billion and increased $251 million, or 8.5% annualized. Organic growth in average commercial loans totaled $174 million, or 10.5% annualized, and growth in average consumer loans was $79 million or 6.1% annualized. Total commercial loan growth was led by strong production from the metropolitan markets of Pittsburgh, Cleveland and Baltimore and total consumer growth was led by nearly equal contributions from the residential, indirect and home equity-related loan portfolios.
Average deposits and customer repurchase agreements totaled $13.1 billion and increased $409 million, or 12.8% annualized, and included average organic growth of $284 million or 8.8% annualized. Consistent with prior quarters, growth in transaction deposits and customer repurchase agreements was partially offset by a decline in time deposits. On an organic basis, average total transaction deposits and customer repurchase agreements increased $360 million or 14.0% annualized. Organic growth in average non-interest bearing deposits was $104 million or 14.2% annualized, primarily reflecting growth in non-interest bearing business accounts and money market balances. Total loans as a percentage of deposits and customer repurchase agreements was 95% at December 31, 2015.
Non-Interest Income
Non-interest income totaled $43.1 million, increasing $1.8 million or 4.3%. Non-interest income was a record high for the quarter, with continued positive results in service charges, wealth management, mortgage banking and capital markets. Non-interest income represented 25% of total revenue.
Non-Interest Expense
Non-interest expense totaled $101.2 million, increasing $3.1 million, or 3.2%, and included $1.4 million of merger costs, compared to $1.3 million of merger costs in the third quarter. The increase in non-interest expense was primarily due to seasonally higher marketing expense and higher outside professional services. The efficiency ratio was 56.3%, compared to 55.6% in the third quarter of 2015.
Credit Quality
Credit quality metrics were generally consistent and the ratio of non-performing loans and OREO to total loans and OREO increased slightly by 1 basis point to 0.91% at December 31, 2015, and was consistent with the third quarter at 0.99% for the originated portfolio. Delinquency, defined as total originated past due and non-accrual loans as a percentage of total originated loans, increased 4 basis points to 0.93% at December 31, 2015.
Net charge-offs for the fourth quarter totaled $6.8 million, or 0.23% annualized of total average loans, compared to $5.7 million, or 0.19% annualized, in the prior quarter. For the originated portfolio, net charge-offs as a percentage of average originated loans were 0.25% annualized, compared to 0.22% annualized in the prior quarter. For the originated portfolio, the allowance for loan losses to total originated loans was 1.23%, compared to 1.22% at September 30, 2015, with the slight increase directionally consistent with the quarter's credit quality performance. The ratio of the allowance for loan losses to total loans increased slightly to 1.16%, compared to 1.15%. The provision for loan losses increased $1.9 million to $12.7 million, attributable to strong originated loan growth and slight credit migration during the quarter. The ratio of the originated allowance for loan losses to originated non-performing loans decreased to 190.6%, compared to 194.5% September 30, 2015.
Full Year 2015 Results - Comparison to Prior Year
(All comparisons refer to full year 2014, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances acquired via acquisitions.)
Results include the impact from the acquisition of five Bank of America branches (BofA) on September 18, 2015, the OBA Financial Services, Inc. (OBAF) acquisition on September 19, 2014, and the BCSB Bancorp, Inc. (BCSB) acquisition on February 15, 2014.
Net Interest Income/Loans/Deposits
Net interest income on a FTE basis totaled $505.9 million, increasing $32.7 million or 6.9%. The net interest margin was 3.42%, compared to 3.59%. Excluding accretable yield adjustments, the 2015 net interest margin would have been 3.39%, compared to 3.54%, reflecting the extended low interest rate and competitive environment. Average earning assets grew $1.6 billion, or 12.4%, through consistent organic loan growth and the benefit of a full year of BCSB and OBAF.
Average loans totaled $11.7 billion and increased $1.3 billion, or 12.4%, reflecting strong organic average loan growth of $1.0 billion, or 9.7%, and the benefit from a full year of the acquired balances. Growth in the commercial portfolio continued throughout 2015, with average balances growing organically $518 million or 8.6%. Average organic consumer loan growth was $517 million or 11.4%. Organic growth results reflect the benefit of the increased number of prospects from an expanded footprint.
Total average deposits and customer repurchase agreements totaled $12.7 billion and increased $805 million or 6.8%, including average organic growth of $477 million or 3.9%. Organic growth in low-cost transaction deposit accounts and customer repurchase agreements was $691 million, or 7.4%, and was largely driven by organic growth in average non-interest bearing deposits of $329 million or 13.2%.
Non-Interest Income
Non-interest income totaled $162.4 million, increasing $4.1 million, or 2.6%, with 2014 including higher gains on the sale of securities of $10.9 million. Excluding securities gains and a non-recurring gain in 2014, total non-interest income would have increased $17.7 million, or 12.3%. Wealth management revenue (trust income and securities commissions) increased $3.8 million, or 12.2%, reflecting positive organic growth results and incremental lift from the Cleveland and Maryland markets. Mortgage banking revenues increased $4.9 million to $8.6 million, representing the benefits from investments made during 2014 to increase the scale of this line of business. Increased capital markets revenue reflect increased swap revenue driven by higher volumes and successful cross-selling efforts for syndications and international banking products and services. Total non-interest income was 24% of total revenue.
Non-Interest Expense
Non-interest expense totaled $390.5 million, increasing $11.3 million, or 3.0%, and included merger and severance costs of $3.0 million, compared to $12.2 million in 2014. Absent these merger and severance costs, non-interest expense would have increased $20.4 million, or 5.6%, primarily attributable to the additional operating costs related to the expanded operations from BCSB, OBAF and the BofA branch acquisition. The efficiency ratio improved to 56.1% from 57.2%.
Credit Quality
Credit quality results reflect improvement over the prior year. The ratio of non-performing loans and OREO to total loans and OREO improved 6 basis points to 0.91%, and for the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO improved 14 basis points to 0.99%. Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans, improved 6 basis points to 0.93% at December 31, 2015.
Net charge-offs totaled $24.4 million, or 0.21% annualized of total average loans, compared to $23.5 million, or 0.23% annualized. For the originated portfolio, net charge-offs were $24.2 million, or 0.23% annualized of total average originated loans, compared to $21.0, million or 0.24% annualized. The ratio of the allowance for loan losses to total originated loans was 1.23% at December 31, 2015, compared to 1.22% at December 31, 2014. The provision for loan losses totaled $40.4 million, compared to $38.6 million in the prior-year period, and is attributable to strong organic loan growth and slight credit migration.
Capital Position
The tangible common equity to tangible assets ratio (non-GAAP measure) was 6.71%, compared to 6.98% and 6.83% at September 30, 2015 and December 31, 2014, respectively. The tangible book value per common share (non-GAAP measure) increased to $6.38, from $6.36 and $5.99 at September 30, 2015 and December 31, 2014, respectively. The common dividend payout ratio for the full year of 2015 was 55.7%.
Conference Call
F.N.B. Corporation will host a conference call to discuss financial results for the fourth quarter and full year of 2015 on Thursday, January 21, 2016, at 10:30 a.m. Eastern Time. Participating callers may access the call by dialing (866) 652-5200 or (412) 317-6060 for international callers. Participants should ask to be joined into the F.N.B. Corporation call. The Webcast and presentation materials may be accessed through the "About Us - Investor Relations & Shareholder Services" section of the Corporation's Web site at www.fnbcorporation.com.
A replay of the call will be available shortly after the completion of the call until midnight ET on Thursday, January 28, 2016. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10077464. Following the call, a transcript and the related presentation materials will be posted to the "About Us - Investor Relations & Shareholder Services" section of F.N.B. Corporation's web site at www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in six states, including three major metropolitan areas. It holds a top retail deposit market share in Pittsburgh, PA, Baltimore, MD, and Cleveland, OH. F.N.B. has total pro-forma assets (with the proposed merger of Metro Bancorp, Inc.) of $20.6 billion and more than 300 banking offices throughout Pennsylvania, Maryland, Ohio and West Virginia. F.N.B. provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network, which is led by its largest affiliate, First National Bank of Pennsylvania, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, international banking, business credit, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. F.N.B.'s wealth management services include asset management, private banking and insurance. F.N.B. also operates Regency Finance Company, which has more than 70 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee. The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor's SmallCap 600 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation web site at www.fnbcorporation.com.
Non-GAAP Financial Measures
F.N.B. Corporation uses certain non-GAAP financial measures, such as operating net income available to common shareholders, operating diluted earnings per common share, net interest income on a fully taxable equivalent basis (FTE), core net interest margin, tangible book value per common share and the ratio of tangible common equity to tangible assets, to provide information useful to investors in understanding F.N.B. Corporation's operating performance and trends, and to facilitate comparisons with the performance of F.N.B. Corporation's peers. The non-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, F.N.B. Corporation's reported results prepared in accordance with U.S. GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures are included in the tables at the end of this release under the caption "Non-GAAP Financial Measures."
Cautionary Statement Regarding Forward-looking Information
We make statements in this press release and the related conference call, and may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, capital levels, liquidity levels, asset levels, asset quality and other matters regarding or affecting F.N.B. Corporation and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance.
Our forward-looking statements are subject to the following principal risks and uncertainties:
-- Our businesses, financial results and balance sheet values are affected
by business and economic conditions, including the following:
-- Changes in interest rates and valuations in debt, equity and other
financial markets.
-- Disruptions in the liquidity and other functioning of U.S. and
global financial markets.
-- The impact of federal regulatory agencies that have oversight or
review of F.N.B. Corporation's business and securities activities,
including the bank regulatory examination and supervisory process.
-- Actions by the Federal Reserve, U.S. Treasury and other government
agencies, including those that impact money supply and market
interest rates.
-- Slowing or reversal of the rate of growth in the economy and
employment levels and other economic factors that affect our
liquidity and the performance of our loan portfolio, particularly in
the markets in which we operate.
-- Changes in customer preferences and behavior, whether due to
changing business and economic conditions, legislative and
regulatory initiatives, or other factors.
-- Legal and regulatory developments could affect our ability to operate
our businesses, financial condition, results of operations, competitive
position, reputation, or pursuit of attractive acquisition
opportunities. Reputational impacts could affect matters such as
business generation and retention, liquidity, funding, and ability to
attract and retain management. These developments could include:
-- Changes resulting from legislative and regulatory reforms, including
broad-based restructuring of financial industry regulation; changes
to laws and regulations involving tax, pension, bankruptcy, consumer
protection, and other industry aspects; and changes in accounting
policies and principles. We will continue to be impacted by
extensive reforms provided for in the Dodd-Frank Wall Street Reform
and Consumer Protection Act and otherwise growing out of the recent
financial crisis, the precise nature, extent and timing of which,
and their impact on us, remains uncertain.
-- Results of the regulatory examination and supervisory process.
-- Changes to regulations governing bank capital and liquidity
standards, including the Dodd-Frank Act, Volcker rule, Dodd-Frank
stress testing rules (DFAST) and Basel III initiatives.
-- Impact on business and operating results of any costs associated
with obtaining rights in intellectual property, the adequacy of our
intellectual property protection in general and our operational or
security systems or infrastructure, or those of third-party vendors
or other service providers, and rapid technological developments and
changes.
-- Business and operating results are affected by judgments and assumptions
in our analytical and forecasting models, our reliance on the advice of
experienced outside advisors and our ability to identify and effectively
manage risks inherent in our businesses, including, where appropriate,
through effective use of third-party insurance, derivatives, swaps, and
capital management techniques, and to meet evolving regulatory capital
standards.
-- As demonstrated by our acquisitions, we grow our business in part by
acquiring, from time to time, other financial services companies,
financial services assets and related deposits. These acquisitions
often present risks and uncertainties, including, the possibility that
the transaction cannot be consummated; regulatory issues; cost or
difficulties involved in integration and conversion of the acquired
businesses after closing; inability to realize expected cost savings,
efficiencies and strategic advantages; the extent of credit losses in
acquired loan portfolios; the extent of deposit attrition; and the
potential dilutive effect to our current shareholders.
-- Competition can have an impact on customer acquisition, growth and
retention and on credit spreads and product pricing, which can affect
market share, deposits and revenues. Industry restructuring in the
current environment could also impact our business and financial
performance through changes in counterparty creditworthiness and
performance, and the competitive and regulatory landscape. Our ability
to anticipate and respond to technological changes can also impact our
ability to respond to customer needs and meet competitive demands.
-- Business and operating results can also be affected by widespread
disasters, dislocations, terrorist activities, cyber-attacks or
international hostilities through their impacts on the economy and
financial markets.
We provide greater detail regarding these and other factors in our 2014 Form 10-K, including the Risk Factors section of that report, and our subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.
DATA SHEETS FOLLOW
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
4Q15 - 4Q15 -
2015 2014 3Q15 4Q14
----
Fourth Third Fourth Percent Percent
Statement of earnings Quarter Quarter Quarter Variance Variance
--------------------- ------- -------
Interest income $140,781 $137,197 $135,097 2.6 4.2
Interest expense 13,448 11,996 11,436 12.1 17.6
Net interest income 127,333 125,201 123,661 1.7 3.0
Taxable equivalent adjustment 2,097 1,950 1,696 7.5 23.7
Net interest income (FTE) (1) 129,430 127,151 125,357 1.8 3.2
Provision for credit losses 12,664 10,777 10,040 17.5 26.1
Net interest income after provision (FTE) 116,766 116,374 115,317 0.3 1.3
Service charges 18,739 18,628 17,815 0.6 5.2
Trust income 5,131 5,210 4,871 -1.5 5.3
Insurance commissions and fees 3,919 4,423 3,953 -11.4 -0.8
Securities commissions and fees 3,684 3,304 2,928 11.5 25.8
Mortgage banking operations 1,880 2,424 1,485 -22.5 26.6
Net securities gains 503 314 302 n/m n/m
Other 9,261 7,056 8,108 31.3 14.2
Total non-interest income 43,117 41,359 39,462 4.3 9.3
Salaries and employee benefits 50,509 51,759 48,008 -2.4 5.2
Occupancy and equipment 16,551 16,194 15,541 2.2 6.5
FDIC insurance 3,258 3,158 3,659 3.2 -11.0
Amortization of intangibles 2,157 2,034 2,518 6.0 -14.4
Other real estate owned 849 1,299 1,884 -34.6 -54.9
Merger, acquisition and severance-related 1,350 1,312 1,557 n/m n/m
Other 26,572 22,393 23,489 18.7 13.1
Total non-interest expense 101,246 98,149 96,656 3.2 4.7
Income before income taxes 58,637 59,584 58,123 -1.6 0.9
Taxable equivalent adjustment 2,097 1,950 1,696 7.5 23.7
Income taxes 17,418 17,581 17,123 -0.9 1.7
Net income 39,122 40,053 39,304 -2.3 -0.5
Preferred stock dividends 2,011 2,010 2,010
Net income available to common stockholders $37,111 $38,043 $37,294 -2.4 -0.5
======= ======= =======
Earnings per common share:
Basic $0.21 $0.22 $0.21 -4.5 0.0
Diluted $0.21 $0.22 $0.21 -4.5 0.0
Non-GAAP Operating Results:
---------------------------
Operating net income available to common stockholders:
Net income available to common stockholders $37,111 $38,043 $37,294
Net gain on sale of pooled TPS and other securities, net of tax 0 0 0
Merger, acquisition and severance costs, net of tax 991 853 1,012
Other net non-recurring items 0 0 (1,889)
--- --- ------
Operating net income available to common stockholders $38,102 $38,896 $36,417 -2.0 4.6
======= ======= =======
Operating diluted earnings per common share:
Diluted earnings per common share $0.21 $0.22 $0.21
Effect of net gain on sale of pooled TPS and other securities, net of tax 0.00 0.00 0.00
Effect of merger, acquisition and severance costs, net of tax 0.01 0.00 0.01
Effect of other net non-recurring items 0.00 0.00 (0.01)
---- ---- -----
Operating diluted earnings per common share $0.22 $0.22 $0.21 0.0 4.8
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year
Ended December 31, Percent
------------------
Statement of earnings 2015 2014 Variance
--------------------- ----
Interest income $546,795 $508,983 7.4
Interest expense 48,573 42,686 13.8
------ ------
Net interest income 498,222 466,297 6.8
Taxable equivalent adjustment 7,635 6,898 10.7
----- -----
Net interest income (FTE) (1) 505,857 473,195 6.9
Provision for credit losses 40,441 38,648 4.6
------
Net interest income after provision (FTE) 465,416 434,547 7.1
Service charges 70,698 68,267 3.6
Trust income 20,934 19,365 8.1
Insurance commissions and fees 16,270 16,758 -2.9
Securities commissions and fees 13,642 11,453 19.1
Mortgage banking operations 8,619 3,705 132.6
Net securities gains 822 11,717 n/m
Other 31,425 27,009 16.4
------
Total non-interest income 162,410 158,274 2.6
Salaries and employee benefits 201,968 192,477 4.9
Occupancy and equipment 65,539 61,526 6.5
FDIC insurance 12,888 13,258 -2.8
Amortization of intangibles 8,305 9,717 -14.5
Other real estate owned 4,637 4,401 5.4
Merger, acquisition and severance-related 3,033 12,150 n/m
Other 94,179 85,724 9.9
Total non-interest expense 390,549 379,253 3.0
Income before income taxes 237,277 213,568 11.1
Taxable equivalent adjustment 7,635 6,898 10.7
Income taxes 69,993 62,620 11.8
------ ------
Net income 159,649 144,050 10.8
Preferred stock dividends 8,041 8,352
----- -----
Net income available to common stockholders $151,608 $135,698 11.7
======== ========
Earnings per common share:
Basic $0.87 $0.81 7.4
Diluted $0.86 $0.80 7.5
Non-GAAP Operating Results:
---------------------------
Operating net income available to common
stockholders:
Net income available to common stockholders $151,608 $135,698
Net gain on sale of pooled TPS and other
securities, net of tax 0 (6,150)
Merger, acquisition and severance costs, net of
tax 2,084 7,897
Other net non-recurring items 0 (1,889)
--- ------
Operating net income available to common
stockholders $153,692 $135,557 13.4
======== ========
Operating diluted earnings per common share:
Diluted earnings per common share $0.86 $0.80
Effect of net gain on sale of pooled TPS and
other securities, net of tax 0.00 (0.04)
Effect of merger, acquisition and severance
costs, net of tax 0.01 0.05
Effect of other net non-recurring items 0.00 (0.01)
---- -----
Operating diluted earnings per common share $0.87 $0.80 8.7
===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
4Q15 - 4Q15 -
2015 2014 3Q15 4Q14
----
Fourth Third Fourth Percent Percent
Balance Sheet (at period end) Quarter Quarter Quarter Variance Variance
---------------------------- ------- -------
Assets
Cash and due from banks $207,399 $208,560 $196,240 -0.6 5.7
Interest bearing deposits with banks 281,720 50,206 91,153 461.1 209.1
------- ------ ------
Cash and cash equivalents 489,119 258,766 287,393 89.0 70.2
Securities available for sale 1,630,567 1,578,526 1,534,065 3.3 6.3
Securities held to maturity 1,637,061 1,526,290 1,453,355 7.3 12.6
Residential mortgage loans held for sale 4,781 3,575 6,180 33.7 -22.6
Loans and leases, net of unearned income 12,190,440 11,873,645 11,247,038 2.7 8.4
Allowance for credit losses (142,012) (136,183) (125,926) 4.3 12.8
-------- -------- --------
Net loans and leases 12,048,428 11,737,462 11,121,112 2.6 8.3
Premises and equipment, net 159,080 161,689 168,756 -1.6 -5.7
Goodwill 833,086 834,141 832,213 -0.1 0.1
Core deposit and other intangible assets, net 45,644 46,417 47,504 -1.7 -3.9
Bank owned life insurance 308,192 306,061 301,771 0.7 2.1
Other assets 401,704 383,146 374,741 4.8 7.2
-------
Total Assets $17,557,662 $16,836,073 $16,127,090 4.3 8.9
=========== =========== ===========
Liabilities
Deposits:
Non-interest bearing demand $3,059,949 $2,911,435 $2,647,623 5.1 15.6
Interest bearing demand 5,311,589 5,558,322 4,547,628 -4.4 16.8
Savings 1,786,459 1,736,350 1,575,922 2.9 13.4
Certificates and other time deposits 2,465,466 2,553,629 2,611,035 -3.5 -5.6
--------- --------- ---------
Total Deposits 12,623,463 12,759,736 11,382,208 -1.1 10.9
Short-term borrowings 2,048,896 1,287,302 2,041,658 59.2 0.4
Long-term borrowings 641,480 542,653 541,443 18.2 18.5
Other liabilities 147,641 151,633 140,325 -2.6 5.2
------- ------- -------
Total Liabilities 15,461,480 14,741,324 14,105,634 4.9 9.6
Stockholders' Equity
Preferred Stock 106,882 106,882 106,882 0.0 0.0
Common stock 1,766 1,766 1,754 0.0 0.7
Additional paid-in capital 1,808,210 1,805,926 1,798,984 0.1 0.5
Retained earnings 243,217 227,287 176,120 7.0 38.1
Accumulated other comprehensive loss (51,133) (34,397) (46,003) 48.7 11.2
Treasury stock (12,760) (12,715) (16,281) 0.3 -21.6
-------
Total Stockholders' Equity 2,096,182 2,094,749 2,021,456 0.1 3.7
--------- --------- ---------
Total Liabilities and Stockholders' Equity $17,557,662 $16,836,073 $16,127,090 4.3 8.9
=========== =========== ===========
Selected average balances
-------------------------
Total assets $17,076,285 $16,732,310 $15,906,850 2.1 7.4
Earning assets 15,232,868 14,936,867 14,088,224 2.0 8.1
Interest bearing deposits with banks 53,777 75,208 57,976 -28.5 -7.2
Securities 3,155,624 3,088,987 2,935,551 2.2 7.5
Residential mortgage loans held for sale 9,182 8,967 4,811 2.4 90.9
Loans and leases, net of unearned income 12,014,285 11,763,705 11,089,886 2.1 8.3
Allowance for credit losses 139,571 134,206 124,300 4.0 12.3
Goodwill and intangibles 879,039 876,513 880,984 0.3 -0.2
Deposits and customer repurchase agreements (6) 13,066,736 12,658,134 12,392,431 3.2 5.4
Short-term borrowings 1,102,887 1,309,639 795,857 -15.8 38.6
Long-term borrowings 640,573 542,720 541,564 18.0 18.3
Total stockholders' equity 2,099,591 2,082,043 2,021,493 0.8 3.9
Preferred stockholders' equity 106,882 106,882 106,882 0.0 0.0
Common stock data
-----------------
Average diluted shares outstanding 176,906,938 176,512,832 175,629,620 0.2 0.7
Period end shares outstanding 175,441,670 175,363,439 173,992,258 0.0 0.8
Book value per common share $11.34 $11.34 $11.00 0.0 3.0
Tangible book value per common share (4) $6.38 $6.36 $5.99 0.4 6.6
Dividend payout ratio (common) 57.08% 55.67% 56.27%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year
Ended December 31, Percent
------------------
Balance Sheet (at period end) 2015 2014 Variance
---------------------------- ----
Assets
Cash and due from banks $207,399 $196,240 5.7
Interest bearing deposits with banks 281,720 91,153 209.1
------- ------
Cash and cash equivalents 489,119 287,393 70.2
Securities available for sale 1,630,567 1,534,065 6.3
Securities held to maturity 1,637,061 1,453,355 12.6
Residential mortgage loans held for sale 4,781 6,180 -22.6
Loans and leases, net of unearned income 12,190,440 11,247,038 8.4
Allowance for credit losses (142,012) (125,926) 12.8
-------- --------
Net loans and leases 12,048,428 11,121,111 8.3
Premises and equipment, net 159,080 168,756 -5.7
Goodwill 833,086 832,213 0.1
Core deposit and other intangible assets, net 45,644 47,504 -3.9
Bank owned life insurance 308,192 301,771 2.1
Other assets 401,704 374,741 7.2
Total Assets $17,557,662 $16,127,089 8.9
=========== ===========
Liabilities
Deposits:
Non-interest bearing demand $3,059,949 $2,647,623 15.6
Interest bearing demand 5,311,589 4,547,628 16.8
Savings 1,786,459 1,575,922 13.4
Certificates and other time deposits 2,465,466 2,611,035 -5.6
--------- ---------
Total Deposits 12,623,463 11,382,207 10.9
Short-term borrowings 2,048,896 2,041,658 0.4
Long-term borrowings 641,480 541,443 18.5
Other liabilities 147,641 140,325 5.2
------- -------
Total Liabilities 15,461,480 14,105,633 9.6
Stockholders' Equity
Preferred Stock 106,882 106,882 0.0
Common stock 1,766 1,754 0.7
Additional paid-in capital 1,808,210 1,798,984 0.5
Retained earnings 243,217 176,120 38.1
Accumulated other comprehensive loss (51,133) (46,003) 11.2
Treasury stock (12,760) (16,281) -21.6
Total Stockholders' Equity 2,096,182 2,021,456 3.7
--------- ---------
Total Liabilities and Stockholders' Equity $17,557,662 $16,127,088 8.9
=========== ===========
Selected average balances
-------------------------
Total assets $16,606,147 $14,962,140 11.0
Earning assets 14,797,502 13,165,555 12.4
Interest bearing deposits with banks 70,116 51,070 37.3
Securities 3,068,871 2,746,354 11.7
Residential mortgage loans held for sale 7,773 3,932 97.7
Loans and leases, net of unearned income 11,650,742 10,364,199 12.4
Allowance for credit losses 133,508 117,027 14.1
Goodwill and intangibles 876,773 857,018 2.3
Deposits and customer repurchase agreements (6) 12,668,716 11,863,816 6.8
Short-term borrowings 1,149,035 616,717 86.3
Long-term borrowings 566,914 411,433 37.8
Total stockholders' equity 2,072,170 1,920,440 7.9
Preferred stockholders' equity 106,882 106,882 0.0
Common stock data
-----------------
Average diluted shares outstanding 176,338,953 169,078,845 4.3
Period end shares outstanding 175,441,670 173,992,258 0.8
Book value per common share $11.34 $11.00 3.0
Tangible book value per common share (4) $6.38 $5.99 6.6
Dividend payout ratio (common) 55.74% 59.85%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q15 - 4Q15 -
2015 2014 3Q15 4Q14
----
Fourth Third Fourth Percent Percent
Quarter Quarter Quarter Variance Variance
------- ------- ------- -------- --------
Performance ratios
------------------
Return on average equity 7.39% 7.63% 7.71%
Return on average tangible equity (2) (4) 13.08% 13.53% 14.16%
Return on average tangible common equity (2) (4) 13.62% 14.12% 14.85%
Return on average assets 0.91% 0.95% 0.98%
Return on average tangible assets (3) (4) 0.99% 1.03% 1.08%
Net interest margin (FTE) (1) 3.38% 3.39% 3.54%
Yield on earning assets (FTE) (1) 3.73% 3.70% 3.86%
Cost of interest-bearing liabilities 0.45% 0.41% 0.41%
Cost of funds 0.36% 0.33% 0.33%
Efficiency ratio (FTE) (1) (5) 56.32% 55.59% 56.05%
Effective tax rate 30.81% 30.50% 30.34%
Capital ratios
--------------
Equity / assets (period end) 11.94% 12.44% 12.53%
Leverage ratio 8.14% 8.20% 8.43%
Tangible equity / tangible assets (period end) (4) 7.35% 7.65% 7.53%
Tangible common equity / tangible assets (period end) (4) 6.71% 6.98% 6.83%
Balances at period end
----------------------
Loans and Leases:
-----------------
Commercial real estate $4,109,056 $3,949,246 $3,815,708 4.0 7.7
Commercial and industrial 2,601,722 2,491,355 2,318,015 4.4 12.2
Commercial leases 204,553 199,130 177,824 2.7 15.0
------- ------- -------
Commercial loans and leases 6,915,331 6,639,731 6,311,547 4.2 9.6
Direct installment 1,706,636 1,692,638 1,644,621 0.8 3.8
Residential mortgages 1,395,971 1,386,386 1,263,053 0.7 10.5
Indirect installment 996,729 974,028 875,551 2.3 13.8
Consumer LOC 1,137,255 1,127,002 1,110,976 0.9 2.4
Other 38,518 53,860 41,290 -28.5 -6.7
Total loans and leases $12,190,440 $11,873,645 $11,247,038 2.7 8.4
=========== ===========
Deposits:
---------
Non-interest bearing deposits $3,059,949 $2,911,435 $2,647,623 5.1 15.6
Interest bearing demand 5,311,589 5,558,322 4,547,628 -4.4 16.8
Savings 1,786,459 1,736,350 1,575,922 2.9 13.4
Certificates of deposit and other time deposits 2,465,466 2,553,629 2,611,035 -3.5 -5.6
Total deposits 12,623,463 12,759,736 11,382,208 -1.1 10.9
Customer repurchase agreements (6) 266,732 256,320 882,696 4.1 -69.8
Total deposits and customer repurchase agreements (6) $12,890,195 $13,016,056 $12,264,904 -1.0 5.1
Average balances
----------------
Loans and Leases:
-----------------
Commercial real estate $4,007,628 $3,910,226 $3,779,619 2.5 6.0
Commercial and industrial 2,546,539 2,472,612 2,282,810 3.0 11.6
Commercial leases 201,201 197,907 174,379 1.7 15.4
------- ------- -------
Commercial loans and leases 6,755,368 6,580,745 6,236,808 2.7 8.3
Direct installment 1,702,617 1,687,477 1,614,300 0.9 5.5
Residential mortgages 1,393,416 1,365,253 1,242,479 2.1 12.1
Indirect installment 983,028 959,954 846,708 2.4 16.1
Consumer LOC 1,134,005 1,121,294 1,100,432 1.1 3.1
Other 45,851 48,982 49,159 -6.4 -6.7
Total loans and leases $12,014,285 $11,763,705 $11,089,886 2.1 8.3
Deposits:
---------
Non-interest bearing deposits $3,025,773 $2,886,933 $2,666,600 4.8 13.5
Interest bearing demand 5,486,974 5,238,598 4,602,828 4.7 19.2
Savings 1,764,600 1,730,818 1,577,553 2.0 11.9
Certificates of deposit and other time deposits 2,510,203 2,565,215 2,640,227 -2.1 -4.9
Total deposits 12,787,550 12,421,564 11,487,208 2.9 11.3
Customer repurchase agreements (6) 279,186 236,570 905,223 18.0 -69.2
Total deposits and customer repurchase agreements (6) $13,066,736 $12,658,134 $12,392,431 3.2 5.4
=========== =========== ===========
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31, Percent
------------------
2015 2014 Variance
---- ---- --------
Performance ratios
------------------
Return on average equity 7.70% 7.50%
Return on average tangible equity (2) (4) 13.72% 14.05%
Return on average tangible common equity (2) (4) 14.33% 14.74%
Return on average assets 0.96% 0.96%
Return on average tangible assets (3) (4) 1.05% 1.07%
Net interest margin (FTE) (1) 3.42% 3.59%
Yield on earning assets (FTE) (1) 3.75% 3.92%
Cost of interest-bearing liabilities 0.42% 0.41%
Cost of funds 0.34% 0.33%
Efficiency ratio (FTE) (1) (5) 56.12% 57.21%
Effective tax rate 30.48% 30.30%
Capital ratios
--------------
Equity / assets (period end) 11.94% 12.53%
Leverage ratio 8.14% 8.43%
Tangible equity / tangible assets (period end) (4) 7.35% 7.53%
Tangible common equity /tangible assets (period
end) (4) 6.71% 6.83%
Balances at period end
----------------------
Loans and Leases:
-----------------
Commercial real estate $4,109,056 $3,815,708 7.7
Commercial and industrial 2,601,722 2,318,015 12.2
Commercial leases 204,553 177,824 15.0
------- -------
Commercial loans and leases 6,915,331 6,311,547 9.6
Direct installment 1,706,636 1,644,621 3.8
Residential mortgages 1,395,971 1,263,053 10.5
Indirect installment 996,729 875,551 13.8
Consumer LOC 1,137,255 1,110,976 2.4
Other 38,518 41,290 -6.7
Total loans and leases $12,190,440 $11,247,038 8.4
Deposits:
---------
Non-interest bearing deposits $3,059,949 $2,647,623 15.6
Interest bearing demand 5,311,589 4,547,628 16.8
Savings 1,786,459 1,575,922 13.4
Certificates of deposit and other time deposits 2,465,466 2,611,035 -5.6
Total deposits 12,623,463 11,382,207 10.9
Customer repurchase agreements (6) 266,732 882,696 -69.8
Total deposits and customer repurchase agreements
(6) $12,890,195 $12,264,903 5.1
Average balances
----------------
Loans and Leases:
-----------------
Commercial real estate $3,888,261 $3,566,094 9.0
Commercial and industrial 2,452,538 2,103,211 16.6
Commercial leases 191,070 166,877 14.5
------- -------
Commercial loans and leases 6,531,869 5,836,182 11.9
Direct installment 1,675,856 1,528,863 9.6
Residential mortgages 1,336,212 1,161,737 15.0
Indirect installment 940,834 745,440 26.2
Consumer LOC 1,119,719 1,041,704 7.5
Other 46,252 50,274 -8.0
Total loans and leases $11,650,742 $10,364,199 12.4
Deposits:
---------
Non-interest bearing deposits $2,832,982 $2,448,546 15.7
Interest bearing demand 5,040,102 4,352,050 15.8
Savings 1,714,587 1,556,041 10.2
Certificates of deposit and other time deposits 2,565,937 2,681,054 -4.3
Total deposits 12,153,608 11,037,690 10.1
Customer repurchase agreements (6) 515,108 826,125 -37.6
Total deposits and customer repurchase agreements
(6) $12,668,716 $11,863,816 6.8
=========== ===========
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q15 - 4Q15 -
2015 2014 3Q15 4Q14
----
Fourth Third Fourth Percent Percent
Asset Quality Data Quarter Quarter Quarter Variance Variance
------------------ ------- -------
Non-Performing Assets
---------------------
Non-performing loans (7)
Non-accrual loans $49,897 $47,298 $45,113 5.5 10.6
Restructured loans 22,028 21,221 23,439 3.8 -6.0
------ ------ ------
Non-performing loans 71,925 68,519 68,552 5.0 4.9
Other real estate owned (8) 38,918 38,931 41,466 0.0 -6.1
------ ------ ------
Total non-performing assets $110,843 $107,450 $110,018 3.2 0.8
======== ======== ========
Non-performing loans / total loans and leases 0.59% 0.58% 0.61%
Non-performing loans / total originated loans and
and leases (9) 0.64% 0.63% 0.71%
Non-performing loans + OREO / total loans and
leases + OREO 0.91% 0.90% 0.97%
Non-performing loans + OREO / total originated
loans and leases + OREO (9) 0.99% 0.99% 1.13%
Non-performing assets / total assets 0.63% 0.64% 0.68%
Allowance Rollforward
---------------------
Allowance for credit losses (originated portfolio) (9)
Balance at beginning of period $129,619 $124,196 $114,569 4.4 13.1
Provision for credit losses 12,387 11,287 7,478 9.7 65.6
Net loan charge-offs (6,722) (5,864) (4,095) 14.6 64.2
Allowance for credit losses (originated portfolio) (9) 135,284 129,619 117,952 4.4 14.7
Allowance for credit losses (acquired portfolio) (10)
Balance at beginning of period 6,564 6,945 6,032
Provision for credit losses 278 (510) 2,562
Net loan charge-offs (114) 129 (620)
---- --- ----
Allowance for credit losses (acquired portfolio) (10) 6,728 6,564 7,974 2.5 -15.6
Total allowance for credit losses $142,012 $136,183 $125,926 4.3 12.8
======== ======== ========
Allowance for credit losses / total loans and leases 1.16% 1.15% 1.12%
Allowance for credit losses (originated loans and leases) /
total originated loans and leases (9) 1.23% 1.22% 1.22%
Allowance for credit losses (originated loans and leases) /
total non-performing loans (7) 190.64% 194.46% 172.06%
Net loan charge-offs (annualized) / total average loans
and leases 0.23% 0.19% 0.17%
Net loan charge-offs on originated loans and leases
(annualized) / total average originated loans and
leases (9) 0.25% 0.22% 0.17%
Delinquency - Originated Portfolio (9)
-------------------------------------
Loans 30-89 days past due $46,683 $43,330 $41,275 7.7 13.1
Loans 90+ days past due 6,864 6,000 9,248 14.4 -25.8
Non-accrual loans 48,934 45,436 45,113 7.7 8.5
------ ------ ------
Total past due and non-accrual loans $102,481 $94,766 $95,636 8.1 7.2
======== ======= =======
Total past due and non-accrual loans / total originated loans 0.93% 0.89% 0.99%
Memo item:
Delinquency - Acquired Portfolio (10) (11)
-----------------------------------------
Loans 30-89 days past due $15,034 $21,604 $24,678 -30.4 -39.1
Loans 90+ days past due 29,878 28,551 38,024 4.6 -21.4
Non-accrual loans 963 1,862 0 n/m n/m
--- -----
Total past due and non-accrual loans $45,875 $52,017 $62,702 -11.8 -26.8
======= ======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31, Percent
------------------
Asset Quality Data 2015 2014 Variance
------------------ ----
Non-Performing Assets
---------------------
Non-performing loans (7)
Non-accrual loans $49,897 $45,113 10.6
Restructured loans 22,028 23,439 -6.0
Non-performing loans 71,925 68,552 4.9
Other real estate owned (8) 38,918 41,466 -6.1
Non-performing loans and OREO 110,843 110,018 0.8
Non-performing investments 0 0 n/m
Total non-performing assets $110,843 $110,018 0.8
Non-performing loans / total loans and leases 0.59% 0.61%
Non-performing loans / total originated loans and
and leases (9) 0.64% 0.71%
Non-performing loans + OREO / total loans and
leases + OREO 0.91% 0.97%
Non-performing loans + OREO / total originated
loans and leases + OREO (9) 0.99% 1.13%
Non-performing assets / total assets 0.63% 0.68%
Allowance Rollforward
---------------------
Allowance for credit losses (originated portfolio)
(9)
Balance at beginning of period $117,952 $104,884 12.5
Provision for credit losses 41,484 34,094 21.7
Net loan charge-offs (24,152) (21,026) 14.9
Allowance for credit losses (originated portfolio)
(9) 135,284 117,952 14.7
Allowance for credit losses (acquired portfolio)
(10)
Balance at beginning of period 7,974 5,900
Provision for credit losses (1,042) 4,554
Net loan charge-offs (204) (2,480)
---- ------
Allowance for credit losses (acquired portfolio)
(10) 6,728 7,974 -15.6
Total allowance for credit losses $142,012 $125,926 12.8
======== ========
Allowance for credit losses /total loans and
leases 1.16% 1.12%
Allowance for credit losses (originated loans and
leases) /
total originated loans and leases (9) 1.23% 1.22%
Allowance for credit losses (originated loans and
leases) /
total non-performing loans (7) 190.64% 172.06%
Net loan charge-offs (annualized) /total average
loans
and leases 0.21% 0.23%
Net loan charge-offs on originated loans and leases
(annualized) /total average originated loans and
leases (9) 0.23% 0.24%
Delinquency - Originated Portfolio (9)
-------------------------------------
Loans 30-89 days past due $46,683 $41,275 13.1
Loans 90+ days past due 6,864 9,248 -25.8
Non-accrual loans 48,934 45,113 8.5
Total past due and non-accrual loans $102,481 $95,636 7.2
======== =======
Total past due and non-accrual loans /total
originated loans 0.93% 0.99%
Memo item:
Delinquency - Acquired Portfolio (10) (11)
-----------------------------------------
Loans 30-89 days past due $15,034 $24,678 -39.1
Loans 90+ days past due 29,878 38,024 -21.4
Non-accrual loans 963 0 n/m
Total past due and non-accrual loans $45,875 $62,702 -26.8
======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2015
----
Fourth Quarter Third Quarter
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 $53,777 $27 0.20% $75,208 $30 0.16%
Taxable investment securities (12) 2,916,736 14,891 2.04% 2,870,378 14,577 2.03%
Non-taxable investment securities (13) 238,888 2,830 4.74% 218,609 2,624 4.80%
Residential mortgage loans held for sale 9,182 125 5.47% 8,967 74 3.30%
Loans and leases (13) (14) 12,014,285 125,005 4.14% 11,763,705 121,842 4.11%
Total Interest Earning Assets (13) 15,232,868 142,878 3.73% 14,936,867 139,147 3.70%
Cash and due from banks 239,159 199,115
Allowance for loan losses (139,571) (134,206)
Premises and equipment 161,338 162,103
Other assets 1,582,491 1,568,431
Total Assets $17,076,285 $16,732,310
Liabilities
Deposits:
Interest-bearing demand $5,486,974 2,480 0.18% $5,238,598 2,241 0.17%
Savings 1,764,600 224 0.05% 1,730,818 198 0.05%
Certificates and other time 2,510,203 5,470 0.86% 2,565,215 5,509 0.85%
Customer repurchase agreements 279,186 133 0.19% 236,570 113 0.19%
Other short-term borrowings 1,102,887 1,593 0.57% 1,309,639 1,673 0.50%
Long-term borrowings 640,573 3,548 2.20% 542,720 2,262 1.65%
Total Interest Bearing Liabilities (13) 11,784,423 13,448 0.45% 11,623,560 11,996 0.41%
Non-interest bearing demand deposits 3,025,773 2,886,933
Other liabilities 166,498 139,774
Total Liabilities 14,976,694 14,650,267
Stockholders' equity 2,099,591 2,082,043
Total Liabilities and Stockholders' Equity $17,076,285 $16,732,310
Net Interest Earning Assets $3,448,445 $3,313,307
========== ==========
Net Interest Income (FTE) 129,430 127,151
Tax Equivalent Adjustment (2,097) (1,950)
------ ------
Net Interest Income $127,333 $125,201
======== ========
Net Interest Spread 3.28% 3.30%
==== ====
Net Interest Margin (13) 3.38% 3.39%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2014
----
Fourth Quarter
Interest Average
Average Earned Yield
Outstanding or Paid or Rate
Assets
Interest bearing deposits with banks $57,976 $24 0.17%
Taxable investment securities (12) 2,773,556 14,320 2.07%
Non-taxable investment securities (13) 161,994 2,077 5.13%
Residential mortgage loans held for sale 4,811 68 5.62%
Loans and leases (13) (14) 11,089,886 120,304 4.31%
Total Interest Earning Assets (13) 14,088,223 136,793 3.86%
Cash and due from banks 206,190
Allowance for loan losses (124,300)
Premises and equipment 168,317
Other assets 1,568,419
Total Assets $15,906,849
Liabilities
Deposits:
Interest-bearing demand $4,602,827 1,881 0.16%
Savings 1,577,553 171 0.04%
Certificates and other time 2,640,227 5,484 0.82%
Customer repurchase agreements 905,222 501 0.22%
Other short-term borrowings 795,858 1,126 0.56%
Long-term borrowings 541,563 2,273 1.67%
Total Interest Bearing Liabilities (13) 11,063,250 11,436 0.41%
Non-interest bearing demand deposits 2,666,600
Other liabilities 1,555,505
Total Liabilities 15,285,355
Stockholders' equity 2,021,493
Total Liabilities and Stockholders' Equity $17,306,848
Net Interest Earning Assets $3,024,973
==========
Net Interest Income (FTE) 125,357
Tax Equivalent Adjustment (1,696)
------
Net Interest Income $123,661
========
Net Interest Spread 3.45%
====
Net Interest Margin (13) 3.54%
====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year Ended December 31,
-------------------------------
2015 2014
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 $70,116 $117 0.17% $51,070 $94 0.18%
Taxable investment securities (12) 2,864,795 58,148 2.03% 2,590,746 54,060 2.09%
Non-taxable investment securities (13) 204,076 9,853 4.83% 155,608 8,148 5.24%
Residential mortgage loans held for sale 7,773 382 4.91% 3,932 355 9.02%
Loans and leases (13) (14) 11,650,742 485,930 4.17% 10,364,199 453,225 4.37%
Total Interest Earning Assets (13) 14,797,502 554,430 3.75% 13,165,555 515,882 3.92%
---------- ----------
Cash and due from banks 206,566 197,210
Allowance for loan losses (133,508) (117,027)
Premises and equipment 165,253 163,986
Other assets 1,570,334 1,552,416
Total Assets $16,606,147 $14,962,140
Liabilities
Deposits:
Interest-bearing demand $5,040,102 8,562 0.17% $4,352,050 6,812 0.16%
Savings 1,714,587 787 0.05% 1,556,040 698 0.04%
Certificates and other time 2,565,937 21,858 0.85% 2,681,055 22,093 0.82%
Customer repurchase agreements 515,108 1,094 0.21% 826,125 1,816 0.22%
Other short-term borrowings 1,149,035 5,981 0.52% 616,717 3,822 0.62%
Long-term borrowings 566,914 10,291 1.82% 411,433 7,445 1.81%
Total Interest Bearing Liabilities (13) 11,551,683 48,573 0.42% 10,443,420 42,686 0.41%
Non-interest bearing demand deposits 2,832,982 2,448,546
Other liabilities 149,312 149,734
Total Liabilities 14,533,977 13,041,700
Stockholders' equity 2,072,170 1,920,440
Total Liabilities and Stockholders' Equity $16,606,147 $14,962,140
Net Interest Earning Assets $3,245,819 $2,722,135
========== ==========
Net Interest Income (FTE) 505,857 473,196
Tax Equivalent Adjustment (7,635) (3,899)
------ ------
Net Interest Income $498,222 $469,297
======== ========
Net Interest Spread 3.33% 3.51%
==== ====
Net Interest Margin (13) 3.42% 3.59%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES
---------------------------
We believe the following non-GAAP financial measures used by F.N.B. Corporation provide information useful to investors in understanding F.N.B. Corporation's operating performance and trends, and facilitate comparisons with the performance of F.N.B.
Corporation's peers. The non-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. Non-GAAP financial measures should be viewed
in addition to, and not as an alternative for, F.N.B. Corporation's reported results prepared in accordance with U.S. GAAP. The following tables summarize the non-GAAP financial measures included in this press release and derived from amounts
reported in F.N.B. Corporation's financial statements.
2015 2014
----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Return on average tangible equity (2):
--------------------------------------
Net income (annualized) $155,211 $158,907 $155,933
Amortization of intangibles, net of tax (annualized) 5,562 5,246 6,495
----- ----- -----
160,773 164,153 162,428
Average total shareholders' equity 2,099,591 2,082,043 2,021,493
Less: Average intangibles (870,842) (869,110) (874,159)
-------- -------- --------
1,228,749 1,212,933 1,147,334
Return on average tangible equity (2) 13.08% 13.53% 14.16%
===== ===== =====
Return on average tangible common equity (2):
---------------------------------------------
Net income available to common stockholders (annualized) $147,235 $150,932 $147,961
Amortization of intangibles, net of tax (annualized) 5,562 5,246 6,495
----- ----- -----
152,797 156,178 154,456
Average total stockholders' equity 2,099,591 2,082,043 2,021,493
Less: Average preferred stockholders' equity (106,882) (106,882) (106,882)
Less: Average intangibles (870,842) (869,110) (874,159)
-------- -------- --------
1,121,867 1,106,051 1,040,452
Return on average tangible common equity (2) 13.62% 14.12% 14.85%
===== ===== =====
Return on average tangible assets (3):
--------------------------------------
Net income (annualized) $155,211 $158,907 $155,933
Amortization of intangibles, net of tax (annualized) 5,562 5,246 6,495
----- ----- -----
160,773 164,153 162,428
Average total assets 17,076,285 16,732,310 15,906,850
Less: Average intangibles (870,842) (869,110) (874,159)
-------- -------- --------
16,205,443 15,863,200 15,032,691
Return on average tangible assets (3) 0.99% 1.03% 1.08%
==== ==== ====
Tangible book value per share:
------------------------------
Total shareholders' equity $2,096,182 $2,094,749 $2,021,456
Less: preferred shareholders' equity (106,882) (106,882) (106,882)
Less: intangibles (869,809) (873,102) (872,859)
-------- -------- --------
1,119,491 1,114,765 1,041,715
Ending shares outstanding 175,441,670 175,363,439 173,992,258
Tangible book value per share $6.38 $6.36 $5.99
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per
share data)
For the Year
Ended December 31,
------------------
2015 2014
---- ----
Return on average tangible equity (2):
--------------------------------------
Net income (annualized) $159,649 $144,050
Amortization of intangibles, net of
tax (annualized) 5,398 6,316
----- -----
165,047 150,366
Average total shareholders' equity 2,072,170 1,920,440
Less: Average intangibles (869,347) (849,934)
-------- --------
1,202,823 1,070,506
Return on average tangible equity (2) 13.72% 14.05%
===== =====
Return on average tangible common
equity (2):
---------------------------------
Net income available to common
stockholders (annualized) $151,608 $135,698
Amortization of intangibles, net of
tax (annualized) 5,398 6,316
----- -----
157,006 142,014
Average total stockholders' equity 2,072,170 1,920,440
Less: Average preferred stockholders'
equity (106,882) (106,882)
Less: Average intangibles (869,347) (849,934)
-------- --------
1,095,941 963,624
Return on average tangible common
equity (2) 14.33% 14.74%
===== =====
Return on average tangible assets (3):
--------------------------------------
Net income (annualized) $159,649 $144,050
Amortization of intangibles, net of
tax (annualized) 5,398 6,316
----- -----
165,047 150,366
Average total assets 16,606,147 14,962,140
Less: Average intangibles (869,347) (849,934)
-------- --------
15,736,800 14,112,206
Return on average tangible assets (3) 1.05% 1.07%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
2015 2014
----
Fourth Third Fourth
Quarter Quarter Quarter
------- -------
Tangible equity / tangible assets (period end):
-----------------------------------------------
Total shareholders' equity $2,096,182 $2,094,749 $2,021,456
Less: intangibles (869,809) (873,102) (872,859)
-------- -------- --------
1,226,373 1,221,647 1,148,597
Total assets 17,557,662 16,836,073 16,127,090
Less: intangibles (869,809) (873,102) (872,859)
-------- -------- --------
16,687,853 15,962,971 15,254,231
Tangible equity / tangible assets (period end) 7.35% 7.65% 7.53%
==== ==== ====
Tangible common equity / tangible assets (period end):
------------------------------------------------------
Total stockholders' equity $2,096,182 $2,094,749 $2,021,456
Less: preferred stockholders' equity (106,882) (106,882) (106,882)
Less: intangibles (869,809) (873,102) (872,859)
-------- -------- --------
1,119,491 1,114,765 1,041,715
Total assets 17,557,662 16,836,073 16,127,090
Less: intangibles (869,809) (873,102) (872,859)
-------- -------- --------
16,687,853 15,962,971 15,254,231
Tangible equity / tangible assets (period end) 6.71% 6.98% 6.83%
==== ==== ====
(1) Net interest income is also presented on a
fully taxable equivalent (FTE) basis, as the
Corporation believes this non-GAAP measure is
the preferred industry measurement for this
item.
(2) Return on average tangible equity is calculated
by dividing net income excluding amortization
of intangibles by average equity less average
intangibles. Return on average tangible common
equity is calculated by dividing net income
available to common shareholders excluding
amortization of intangibles by average
common equity less average intangibles.
(3) Return on average tangible assets is calculated
by dividing net income excluding amortization
of intangibles by average assets less average
intangibles.
(4) See non-GAAP financial measures for
additional information relating to the
calculation of this item.
(5) The efficiency ratio is calculated by dividing
non-interest expense less amortization of
intangibles, other real estate owned expense
and merger, acquisition and severance costs by
the sum of net interest income on a fully
taxable equivalent basis plus non-interest
income less securities gains.
(6) Customer repos are included in
short-term borrowings on the
balance sheet.
(7) Does not include loans acquired
at fair value ("acquired
portfolio").
(8) Includes all other real estate owned, including
those balances acquired through business
combinations that have been in acquired loans
prior to foreclosure.
(9) "Originated Portfolio" or "Originated Loans and
Leases" equals loans and leases not included
by definition in the Acquired Portfolio.
(10) "Acquired Portfolio" or "Acquired Loans" equals
loans acquired at fair value, accounted for in
accordance with ASC 805 which was effective
January 1, 2009.
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.
(11) Represents
contractual
balances.
(12) The average balances and yields earned on
taxable investment securities are based on
historical cost.
(13) The interest income amounts are reflected on a
FTE basis, which adjusts for the tax benefit
of income on certain tax-exempt loans and
investments using the federal statutory tax
rate of 35% for each period presented. The
yields on earning assets and the net interest
margin are presented on an FTE and annualized
basis. The rates paid on interest-bearing
liabilities are also presented on an
annualized basis.
(14) Average balances for loans include non-accrual
loans. Loans and leases consist of average
total loans and leases less average unearned
income. The amount 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-significant-revenue-growth-and-record-2015-net-income-300207537.html
SOURCE F.N.B. Corporation
