F.N.B. Corporation : Reports First Quarter 2012 Results
04/23/2012| 04:40pm US/Eastern
Recommend:
HERMITAGE, Pa., April 23, 2012 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported first quarter 2012 financial results. Net income for the first quarter of 2012 was $21.6 million, or $0.15 per diluted share, compared with first quarter of 2011 net income of $17.2 million, or $0.14 per diluted share and fourth quarter of 2011 net income of $23.7 million, or $0.19 per diluted share. The first quarter of 2012 included merger and severance costs of $4.8 million (after-tax), which decreased net income by $0.04 per diluted share, and the first quarter of 2011 included merger and severance costs of $2.7 million (after-tax) which decreased net income by $0.02 per diluted share.
"Results for the first quarter reflect the continuation of several positive key trends for our company and our successful completion of the Parkvale acquisition," said Vincent J. Delie, Jr., President and Chief Executive Officer. "Organic loan growth was achieved for the eleventh consecutive quarter, driven by market share gains in the Pennsylvania commercial portfolio. Growth in relationship-based deposits and customer repurchase agreements also remained strong. Additionally, credit quality results continue to reflect consistent, solid performance. We are pleased with these achievements and the strong momentum we have established."
First Quarter 2012 Highlights
-- First quarter net income was $0.19 per diluted share, when excluding
merger and severance costs (non-GAAP measure).
-- The net interest margin was 3.74%.
-- Organic loan growth was 5.3% annualized for the Pennsylvania commercial
portfolio, resulting in the twelfth consecutive linked-quarter growth
for this portfolio.
-- Organic transaction deposit and customer repurchase agreement growth was
8.9% annualized.
-- The efficiency ratio was 61%.
-- Net charge-offs totaled $5.1 million or 0.32% annualized of average
originated loans.
-- The allowance for loan losses was 1.55% of total originated loans.
Mr. Delie continued, "The Parkvale acquisition closed on January 1, 2012. This strategic acquisition allows us to leverage our existing strength in the Pittsburgh metropolitan area, one of the nation's 25 largest MSA's based on population, where we now hold the number three retail deposit market share position. Our enhanced presence and strengthened position will enable us to build on our past successes achieved in the Pittsburgh market."
F.N.B. Corporation's performance ratios for the first quarter of 2012 were as follows: return on average tangible equity (non-GAAP measure) was 14.65%; return on average equity was 6.42%; return on average tangible assets (non-GAAP measure) was 0.86% and return on average assets was 0.75%. A reconciliation of GAAP measures to non-GAAP measures is included in the tables that accompany this press release.
First Quarter 2012 Results
(All comparisons refer to the fourth quarter of 2011, except as noted)
Net Interest Income
Net interest income on a fully taxable equivalent basis totaled $92.8 million in the first quarter of 2012, increasing 13.1% from $82.1 million in the prior quarter. The first quarter net interest margin of 3.74% narrowed from 3.79% as expected, primarily reflecting the addition of Parkvale Financial Corporation (Parkvale) on January 1, 2012 and the impact of the current low interest rate environment. During the first quarter, continued improvements in the cost of funds largely offset the decline in the yield on earning assets.
Average loans totaled $7.8 billion and increased 13.8% reflecting loans added in the Parkvale acquisition ($925 million) and organic growth. Organic growth was driven by continued market share gains in the Pennsylvania commercial portfolio with these average balances increasing $48.6 million, or 5.3% annualized, the twelfth consecutive linked-quarter of organic growth for this portfolio. First quarter results for consumer loans were impacted by normal seasonally lower demand and elevated levels of pay downs experienced early in the quarter, with total consumer loans (excluding residential mortgages) declining $15.3 million or 3.9% annualized on an organic basis. Recent activity for consumer loans has exhibited increased demand and stronger volumes aided by promotional campaigns for these products resulting in a significantly improved pipeline for consumer loans at the end of the first quarter.
Total average deposits and customer repurchase agreements totaled $9.6 billion and increased 19.3% due to deposits added in the Parkvale acquisition ($1.6 billion) and organic growth. Organic growth in lower cost transaction accounts and customer repurchase agreements continued, increasing $129.5 million, or 8.9% annualized, as a result of new client acquisition and customers holding higher average balances. This growth was partially offset by a continued planned decline in time deposits. As of March 31, 2012, FNB's total customer-based funding was 97.9% of total deposits and borrowings, compared to 96.8%, and loans as a percentage of total deposits and customer repurchase agreements was 79.7%, compared to 86.4%.
Non-Interest Income
Non-interest income totaled $31.7 million in the first quarter of 2012 and decreased 2.6%. Non-interest income excluding gains on the sale of securities increased $2.6 million, or 8.8%, reflecting the addition of Parkvale and improvements in insurance and wealth management revenue. During the first quarter, fee revenue from service charges increased 8.4% primarily as a result of the addition of Parkvale. Insurance commissions and fees increased 23.7% reflecting seasonally higher contingent fee revenue. Wealth management revenue (securities commissions and fees and trust income) increased 11.3% as a result of improved market conditions and the addition of Parkvale.
Non-Interest Expense
Non-interest expense totaled $86.7 million in the first quarter of 2012, increasing $15.1 million, or 21.1%. Contributing to the increase were $7.6 million in merger and severance costs in the first quarter of 2012, partially offset by $3.3 million in FHLB prepayment charges and $0.4 million in merger and severance costs incurred in the fourth quarter of 2011. Excluding these items from each period, non-interest expense increased $11.2 million, or 16.5%, primarily due to the addition of Parkvale's operating costs. Additionally, higher personnel costs reflecting normal seasonal increases in employee benefits also contributed to the increase. The efficiency ratio for the first quarter was 61%.
Credit Quality
"Credit quality metrics reflect consistent, solid performance and our focus on sound risk management practices," remarked Mr. Delie. "We are pleased with the first quarter results. Additionally, the impact of the Parkvale acquired portfolio on overall credit quality was in line with our original estimates."
The provision for loan losses equaled $6.6 million for the first quarter of 2012, a $1.7 million reduction with improvements seen in all portfolios. Net loan charge-offs for the first quarter totaled $5.1 million or 0.32% annualized of average originated loans. The ratio of the allowance for loan losses to total originated loans was 1.55%, consistent with 1.54% for this ratio at December 31, 2011. At March 31, 2012, the ratio of the allowance for loan losses to total loans was 1.31%, compared to 1.47% at December 31, 2011, with the decline reflecting the addition of the Parkvale portfolio. The ratio of non-performing loans and OREO to total originated loans and OREO was 2.22% and increased slightly compared to 2.15% at December 31, 2011, primarily as a result of the addition of $6.1 million in OREO from the Parkvale acquisition. Excluding the addition to OREO related to the acquisition, non-performing loans and OREO to total originated loans and OREO would have improved by two basis points.
The Pennsylvania loan portfolio's credit quality metrics for the first quarter of 2012 continue to reflect very solid performance. The Pennsylvania loan portfolio totaled $7.5 billion at March 31, 2012, representing 96% of the total loan portfolio. Charge-off performance continues to be very good, with net charge-offs for the first quarter totaling $3.7 million or 0.20% annualized of average loans, compared to 0.29% of average loans for the full year of 2011. The portfolio continues to be well reserved, with a 1.31% ratio of the allowance for loan losses to total originated loans, consistent with 1.30% for this ratio at December 31, 2011.
The Florida loan portfolio totaled $135.5 million, decreasing $18.5 million, or 12.0%, primarily reflecting principal payoffs. There were no charge-offs or provisions for loan losses for this portfolio in the first quarter of 2012. This portfolio now represents only 1.7% of the total loan portfolio.
Capital Position
The Corporation's capital levels at March 31, 2012 continue to exceed federal bank regulatory agency "well capitalized" thresholds. The lower levels compared to the prior quarter are the result of the Parkvale acquisition completed on January 1, 2012. The Parkvale acquisition resulted in total consideration of $138 million and a preliminary addition to goodwill of $102 million during the first quarter of 2012.
At March 31, 2012, the estimated total risk-based capital ratio was 12.2% compared to 13.4% at December 31, 2011, the estimated tier 1 risk-based capital ratio was 10.7% compared to 11.8% at December 31, 2011, and the leverage ratio was 8.14% compared to 9.15%. At March 31, 2012 the tangible equity to tangible assets ratio (non-GAAP measure) was 5.82% compared to 6.65% and the tangible book value per share (non-GAAP measure) was $4.59 compared to $4.80.
The dividend payout ratio for the first quarter of 2012 was 78%.
Conference Call
F.N.B. Corporation will host its quarterly conference call to discuss first quarter 2012 financial results on Tuesday, April 24, 2012 at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (800) 967-7141 or (719) 325-2106 for international callers; the confirmation number is 2173145. The audio-only Webcast may be accessed through the "Shareholder and Investor Relations" section of the Corporation's Web site at www.fnbcorporation.com.
A replay of the call will be available from 1:00 p.m. Eastern Time the day of the call until midnight Eastern Time on Tuesday, May 1, 2012. The replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for international callers; the confirmation number is 2173145. The call transcript and Webcast will be available on the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $11.7 billion. F.N.B. Corporation is a leading provider of commercial and retail banking, leasing, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania, Ohio and West Virginia, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, F.N.B. Capital Corporation, LLC, Regency Finance Company and F.N.B. Commercial Leasing. It also operates consumer finance offices in Kentucky and Tennessee.
Cautionary Statement Regarding Forward-looking Information
We make statements in this news release and 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.
-- Actions by the Federal Reserve, U.S. Treasury and other government
agencies, including those that impact money supply and market
interest rates.
-- Changes in customers', suppliers' and other counterparties'
performance and creditworthiness.
-- Slowing or failure of the current moderate economic recovery.
-- Continued effects of the aftermath of recessionary conditions and
uneven spread of positive impacts of recovery on the economy and our
counterparties, including adverse impacts on levels of unemployment,
loan utilization rates, delinquencies, defaults and counterparty
ability to meet credit and other obligations.
-- Changes in customer preferences and behavior, whether due to
changing business and economic conditions, legislative and
regulatory initiatives, or other factors.
-- Our forward-looking financial statements are subject to the risk that
economic and financial market conditions will be substantially different
than we are currently expecting. These statements are based on our
current view that the modest economic expansion will persist in 2012 and
interest rates will remain very low.
-- Legal and regulatory developments could have an impact on 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 and
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.
-- Changes to regulations governing bank capital and liquidity
standards, including due to the Dodd-Frank Act and to Basel III
initiatives.
-- Results of regulatory examination and the supervision process.
-- Impact on business and operating results of any costs associated
with obtaining rights in intellectual property claimed by others and
of adequacy of our intellectual property protection in general.
-- Business and operating results are affected by 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. In particular, our results
currently depend on our ability to manage elevated levels of impacted
assets.
-- Our acquisition of Parkvale presents us with risk and uncertainties
related both to the acquisition transaction itself and its integration
into F.N.B. Corporation after closing, including:
-- Anticipated benefits, including cost savings and strategic gains,
may be significantly harder or take longer to achieve than expected
or may not be achieved in their entirety as a result of unexpected
factors or events.
-- Our ability to achieve anticipated results from this transaction is
dependent also on the extent of credit losses in the acquired loan
portfolios and the extent of deposit attrition, in part related to
the state of the economy and financial markets. Also, litigation
and governmental investigations that may be filed or commenced, as a
result of this transaction or otherwise, could impact the timing or
realization of anticipated benefits to F.N.B. Corporation.
-- Full integration of Parkvale's business and operations into F.N.B.
Corporation, which includes conversion of F.N.B. Corporations'
different systems and procedures, may take longer than anticipated
or be more costly than anticipated or have unanticipated adverse
results relating to Parkvale's existing businesses.
-- In addition to the Parkvale acquisition, we grow our business in party
by acquiring from time to time other financial services companies,
financial services assets and related deposits. These other
acquisitions often present risks and uncertainties analogous to those
presented by the Parkvale transaction. Acquisition risks include those
presented by the nature of the business acquired, as well as risks and
uncertainties related to the acquisition transactions themselves,
regulatory issues, and the integration of the acquired businesses into
F.N.B. Corporation after closing.
-- 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 or international
hostilities through impacts on the economy and financial markets
generally or on us or our counterparties specifically.
We provide greater detail regarding some of these factors in our 2011 Form 10-K and 2011 Form 10-Qs, including Risk Factors and Risk Management sections of those reports, 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)
1st Qtr 2012 - 1st Qtr 2012 -
2012 2011 4th Qtr 2011 1st Qtr 2011
First Fourth First Percent Percent
Statement of earnings Quarter Quarter Quarter Variance Variance
---------------------
Interest income $107,287 $96,897 $97,371 10.7 10.2
Interest expense 16,366 16,768 20,088 -2.4 -18.5
Net interest income 90,921 80,129 77,283 13.5 17.6
Taxable equivalent adjustment 1,901 1,922 1,965 -1.1 -3.3
Net interest income (FTE) (1) 92,822 82,051 79,248 13.1 17.1
Provision for loan losses 6,572 8,289 8,228 -20.7 -20.1
Net interest income after
provision (FTE) 86,250 73,762 71,020 16.9 21.4
Impairment losses on securities 0 (422) 0 n/m n/m
Non-credit related losses on
securities not
expected to be sold (recognized in
other
comprehensive income) 0 393 0 n/m n/m
--- --- ---
Net impairment losses on
securities 0 (29) 0 n/m n/m
Service charges 17,165 15,833 14,335 8.4 19.7
Insurance commissions and fees 4,172 3,373 4,146 23.7 0.6
Securities commissions and fees 2,011 1,602 1,972 25.5 2.0
Trust income 3,734 3,560 3,710 4.9 0.7
Gain on sale of securities 108 3,511 54 -96.9 100.8
Gain on sale of loans 809 968 767 -16.4 5.4
Other 3,746 3,780 3,448 -0.9 8.6
Total non-interest income 31,745 32,598 28,432 -2.6 11.7
Salaries and employee benefits 44,606 37,758 38,382 18.1 16.2
Occupancy and equipment 11,792 10,205 10,385 15.6 13.5
Amortization of intangibles 2,281 1,819 1,796 25.4 27.0
Other real estate owned 1,636 231 1,579 607.2 3.6
FHLB prepayment penalty 0 3,328 0 n/m n/m
Other 26,358 18,250 22,415 44.4 17.6
Total non-interest expense 86,673 71,591 74,557 21.1 16.2
Income before income taxes 31,322 34,769 24,895 -9.9 25.8
Taxable equivalent adjustment 1,901 1,922 1,965 -1.1 -3.3
Income taxes 7,839 9,110 5,755 -14.0 36.2
Net income $21,582 $23,737 $17,175 -9.1 25.7
Earnings per share:
Basic $0.16 $0.19 $0.14 -15.8 14.3
Diluted $0.15 $0.19 $0.14 -21.1 7.1
Performance ratios
------------------
Return on average equity 6.42% 7.72% 6.17%
Return on average tangible equity
(2) (4) 14.65% 15.94% 13.93%
Return on average assets 0.75% 0.95% 0.72%
Return on average tangible assets
(3) (4) 0.86% 1.06% 0.82%
Net interest margin (FTE) (1) 3.74% 3.79% 3.81%
Yield on earning assets (FTE) (1) 4.40% 4.56% 4.77%
Cost of funds 0.77% 0.92% 1.12%
Efficiency ratio (FTE) (1) (5) 60.91% 59.27% 62.31%
Effective tax rate 26.64% 27.73% 25.10%
Common stock data
-----------------
Average basic shares outstanding 138,898,581 126,566,483 120,193,233 9.7 15.6
Average diluted shares outstanding 140,386,625 127,615,744 120,956,346 10.0 16.1
Ending shares outstanding 139,501,039 127,220,759 120,871,383 9.7 15.4
Book value per share $9.71 $9.51 $9.34 2.1 4.0
Tangible book value per share (4) $4.59 $4.80 $4.36 -4.4 5.3
Dividend payout ratio 78.11% 65.60% 83.86%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
1st Qtr 2012 - 1st Qtr 2012 -
2012 2011 4th Qtr 2011 1st Qtr 2011
First Fourth First Percent Percent
Balance Sheet (at period end) Quarter Quarter Quarter Variance Variance
----------------------------
Assets
Cash and due from banks $192,346 $197,349 $157,568 -2.5 22.1
Interest bearing deposits with
banks 72,376 11,604 132,340 523.7 -45.3
------ ------ -------
Cash and cash equivalents 264,722 208,953 289,908 26.7 -8.7
Securities available for sale 1,097,801 640,571 804,242 71.4 36.5
Securities held to maturity 1,178,558 917,212 956,693 28.5 23.2
Residential mortgage loans held
for sale 11,618 14,275 6,254 -18.6 85.8
Loans, net of unearned income 7,802,792 6,856,667 6,559,952 13.8 18.9
Allowance for loan losses (102,093) (100,662) (107,612) 1.4 -5.1
-------- -------- --------
Net loans 7,700,699 6,756,005 6,452,340 14.0 19.3
Premises and equipment, net 146,406 130,043 125,067 12.6 17.1
Goodwill 670,519 568,462 565,090 18.0 18.7
Core deposit and other intangible
assets, net 43,657 30,953 36,385 41.0 20.0
Bank owned life insurance 236,753 208,927 208,720 13.3 13.4
Other assets 375,330 311,082 310,582 20.7 20.8
------- ------- -------
Total Assets $11,726,063 $9,786,483 $9,755,281 19.8 20.2
=========== ========== ==========
Liabilities
Deposits:
Non-interest bearing demand $1,579,340 $1,340,465 $1,223,720 17.8 29.1
Savings and NOW 4,706,748 3,790,863 3,831,735 24.2 22.8
Certificates and other time
deposits 2,769,066 2,158,440 2,334,856 28.3 18.6
--------- --------- ---------
Total Deposits 9,055,154 7,289,768 7,390,311 24.2 22.5
Other liabilities 144,094 143,239 94,975 0.6 51.7
Short-term borrowings 877,828 851,294 738,520 3.1 18.9
Long-term debt 90,308 88,016 199,134 2.6 -54.6
Junior subordinated debt 203,980 203,967 203,927 0.0 0.0
------- ------- -------
Total Liabilities 10,371,364 8,576,284 8,626,867 20.9 20.2
Stockholders' Equity
Common stock 1,393 1,268 1,205 9.8 15.6
Additional paid-in capital 1,363,956 1,224,572 1,154,953 11.4 18.1
Retained earnings 37,272 32,925 9,336 13.2 299.2
Accumulated other comprehensive
income (43,735) (45,148) (33,679) -3.1 29.9
Treasury stock (4,187) (3,418) (3,401) 22.5 23.1
------ ------ ------
Total Stockholders' Equity 1,354,699 1,210,199 1,128,414 11.9 20.1
--------- --------- ---------
Total Liabilities and
Stockholders' Equity $11,726,063 $9,786,483 $9,755,281 19.8 20.2
=========== ========== ==========
Selected average balances
-------------------------
Total assets $11,563,665 $9,947,884 $9,695,015 16.2 19.3
Earning assets 9,970,829 8,619,185 8,409,212 15.7 18.6
Securities 2,094,803 1,713,209 1,731,714 22.3 21.0
Interest bearing deposits with
banks 98,265 69,713 137,281 41.0 -28.4
Loans, net of unearned income 7,777,761 6,836,263 6,540,217 13.8 18.9
Allowance for loan losses 102,519 109,588 108,259 -6.5 -5.3
Goodwill and intangibles 719,195 599,352 595,436 20.0 20.8
Deposits and customer repos (6) 9,600,217 8,048,276 7,916,046 19.3 21.3
Short-term borrowings 152,977 171,555 143,531 -10.8 6.6
Long-term debt 92,288 174,220 199,047 -47.0 -53.6
Trust preferred securities 201,876 203,960 203,961 -1.0 -1.0
Shareholders' equity 1,352,569 1,219,575 1,129,622 10.9 19.7
Capital ratios
--------------
Equity / assets (period end) 11.55% 12.37% 11.57%
Leverage ratio 8.14% 9.15% 8.36%
Tangible equity /tangible assets
(period end) (4) 5.82% 6.65% 5.76%
Tangible equity, excluding AOCI /
tangible
assets (period end) (4) (7) 6.21% 7.14% 6.12%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
1st Qtr 2012 - 1st Qtr 2012 -
2012 2011 4th Qtr 2011 1st Qtr 2011
First Fourth First Percent Percent
Balances at period end Quarter Quarter Quarter Variance Variance
----------------------
Loans:
------
Commercial real estate $2,521,571 $2,341,646 $2,427,609 7.7 3.9
Commercial real estate - FL 135,547 154,081 185,148 -12.0 -26.8
Commercial and industrial 1,451,144 1,363,692 1,076,910 6.4 34.8
Commercial leases 118,050 110,795 87,916 6.5 34.3
------- ------- ------
Commercial loans and leases 4,226,312 3,970,214 3,777,583 6.5 11.9
Direct installment 1,082,964 1,029,187 1,036,213 5.2 4.5
Residential mortgages 1,187,448 670,936 673,152 77.0 76.4
Indirect installment 563,929 540,789 522,634 4.3 7.9
Consumer LOC 704,773 607,280 511,329 16.1 37.8
Other 37,366 38,261 39,041 -2.3 -4.3
Total loans $7,802,792 $6,856,667 $6,559,952 13.8 18.9
Deposits:
---------
Non-interest bearing deposits $1,579,340 $1,340,465 $1,223,720 17.8 29.1
Savings and NOW 4,706,748 3,790,863 3,831,735 24.2 22.8
Certificates of deposit and other
time deposits 2,769,066 2,158,440 2,334,856 28.3 18.6
Total deposits 9,055,154 7,289,768 7,390,311 24.2 22.5
Customer repos (6) 729,987 646,660 592,643 12.9 23.2
Total deposits and customer repos
(6) $9,785,141 $7,936,428 $7,982,954 23.3 22.6
Average balances
----------------
Loans:
------
Commercial real estate $2,509,031 $2,355,663 $2,385,097 6.5 5.2
Commercial real estate - FL 144,814 165,330 190,215 -12.4 -23.9
Commercial and industrial 1,407,418 1,311,648 1,079,251 7.3 30.4
Commercial leases 113,235 106,160 84,196 6.7 34.5
------- ------- ------
Commercial loans and leases 4,174,499 3,938,800 3,738,759 6.0 11.7
Direct installment 1,091,931 1,032,022 1,046,249 5.8 4.4
Residential mortgages 1,222,620 691,839 689,679 76.7 77.3
Indirect installment 552,337 538,283 518,168 2.6 6.6
Consumer LOC 695,197 594,070 507,405 17.0 37.0
Other 41,177 41,249 39,957 -0.2 3.1
Total loans $7,777,761 $6,836,263 $6,540,217 13.8 18.9
Deposits:
---------
Non-interest bearing deposits $1,470,648 $1,339,484 $1,176,031 9.8 25.1
Savings and NOW 4,591,590 3,809,265 3,753,938 20.5 22.3
Certificates of deposit and other
time deposits 2,813,898 2,202,129 2,340,149 27.8 20.2
Total deposits 8,876,136 7,350,878 7,270,118 20.7 22.1
Customer repos (6) 724,081 697,398 645,928 3.8 12.1
Total deposits and customer repos
(6) $9,600,217 $8,048,276 $7,916,046 19.3 21.3
========== ========== ==========
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
1st Qtr 2012 - 1st Qtr 2012 -
2012 2011 4th Qtr 2011 1st Qtr 2011
First Fourth First Percent Percent
Asset Quality Data Quarter Quarter Quarter Variance Variance
------------------
Non-Performing Assets
---------------------
Non-performing loans (8)
Non-accrual loans $98,418 $94,335 $108,080 4.3 -8.9
Restructured loans 11,416 11,893 21,577 -4.0 -47.1
------ ------ ------
Non-performing loans 109,834 106,228 129,657 3.4 -15.3
Other real estate owned (9) 36,958 34,719 38,101 6.4 -3.0
------ ------ ------
Non-performing loans and OREO 146,792 140,947 167,758 4.1 -12.5
Non-performing investments 3,478 8,972 6,204 -61.2 -43.9
----- ----- -----
Total non-performing assets $150,270 $149,919 $173,962 0.2 -13.6
======== ======== ========
Non-performing loans / total loans 1.41% 1.55% 1.98%
Non-performing loans /total
originated loans (10) 1.67% 1.63% 2.11%
Non-performing loans + OREO /
total loans + OREO 1.87% 2.05% 2.54%
Non-performing loans + OREO /
total originated
loans + OREO (10) 2.22% 2.15% 2.71%
Non-performing assets /total
assets 1.28% 1.53% 1.78%
Allowance Rollforward
---------------------
Allowance for loan losses
(originated portfolio) (10)
Balance at beginning of period $100,662 $108,813 $106,120 -7.5 -5.1
Provision for loan losses 6,572 8,289 8,228 -20.7 -20.1
Net loan charge-offs (5,141) (16,440) (6,736) -68.7 -23.7
Allowance for loan losses
(originated portfolio) 102,093 100,662 107,612 1.4 -5.1
Allowance for loan losses
(acquired portfolio) (11) 0 0 0 0.0 0.0
--- --- ---
Total allowance for loan losses $102,093 $100,662 $107,612 1.4 -5.1
======== ======== ========
Allowance for loan losses /total
loans 1.31% 1.47% 1.64%
Allowance for loan losses
(originated loans) /total
originated loans (10) 1.55% 1.54% 1.75%
Allowance for loan losses /total
non-performing loans (8) 92.95% 94.76% 83.00%
Net loan charge-offs (annualized)
/total average loans 0.27% 0.95% 0.42%
Net loan charge-offs on
originated loans (annualized) /
total average originated loans
(10) 0.32% 1.01% 0.45%
Delinquency -Originated Portfolio
(10)
---------------------------------
Loans 30-89 days past due $28,123 $33,978 $45,176 -17.2 -37.7
Loans 90+ days past due 7,325 7,016 7,684 4.4 -4.7
Non-accrual loans 98,418 94,335 108,080 4.3 -8.9
------ ------ -------
Total past due and non-accrual
loans $133,866 $135,329 $160,940 -1.1 -16.8
======== ======== ========
Total past due and non-accrual
loans /total originated loans 2.03% 2.08% 2.62%
Memo item:
Delinquency -Acquired Portfolio
(11) (12)
-------------------------------
Loans 30-89 days past due $20,694 $12,195 $10,018 69.7 106.6
Loans 90+ days past due 40,190 11,115 8,399 261.6 378.5
Non-accrual loans 0 0 0 0.0 0.0
--- --- ---
Total past due and non-accrual
loans $60,884 $23,310 $18,417 161.2 230.6
======= ======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
1st Qtr 2012 - 1st Qtr 2012 -
2012 2011 4th Qtr 2011 1st Qtr 2011
First Fourth First Percent Percent
Supplemental Asset Quality
Information: Quarter Quarter Quarter Variance Variance
--------------------------
Portfolio Detail
----------------
Total Loans
-----------
Bank - PA $7,509,361 $6,538,730 $6,216,969 14.8 20.8
Bank - FL 135,547 154,081 185,148 -12.0 -26.8
Regency 157,885 163,856 157,835 -3.6 0.0
------- ------- -------
Total loans $7,802,792 $6,856,667 $6,559,952 13.8 18.9
========== ========== ==========
Non-Performing Loans and Other
Real Estate Owned
------------------------------
Non-performing loans (includes
non-performing TDRs)
------------------------------
Bank - PA $63,833 $60,720 $74,292 5.1 -14.1
Bank - FL 39,021 39,122 46,701 -0.3 -16.4
Regency 6,980 6,386 8,664 9.3 -19.4
----- ----- -----
Total non-performing loans $109,834 $106,228 $129,657 3.4 -15.3
======== ======== ========
Other real estate owned
-----------------------
Bank - PA $17,585 $13,216 $12,044 33.1 46.0
Bank - FL 18,097 19,921 24,502 -9.2 -26.1
Regency 1,276 1,582 1,555 -19.3 -17.9
----- ----- -----
Total other real estate owned $36,958 $34,719 $38,101 6.4 -3.0
======= ======= =======
Non-performing loans + OREO
---------------------------
Bank - PA $81,418 $73,936 $86,336 10.1 -5.7
Bank - FL 57,118 59,043 71,203 -3.3 -19.8
Regency 8,256 7,968 10,219 3.6 -19.2
----- ----- ------
Total non-performing loans + OREO $146,792 $140,947 $167,758 4.1 -12.5
======== ======== ========
Non-Performing Loans + OREO /
Total Loans + OREO
-----------------------------
Bank - PA 1.08% 1.13% 1.39%
Bank - FL 37.18% 33.93% 33.96%
Regency 5.19% 4.82% 6.41%
---- ---- ----
Total non-performing loans + OREO
/total loans + OREO 1.87% 2.05% 2.54%
==== ==== ====
Provision for Loan Losses
-------------------------
Bank - PA $5,406 $4,194 $5,300 28.9 2.0
Bank - FL 0 2,280 1,600 -100.0 -100.0
Regency 1,166 1,815 1,328 -35.8 -12.2
----- ----- -----
Total provision for loan losses $6,572 $8,289 $8,228 -20.7 -20.1
====== ====== ======
Net Loan Charge-Offs
--------------------
Bank - PA $3,733 $4,898 $4,053 -23.8 -7.9
Bank - FL (9) 9,812 1,147 -100.1 -100.8
Regency 1,417 1,730 1,536 -18.1 -7.7
----- ----- -----
Total net loan charge-offs $5,141 $16,440 $6,736 -68.7 -23.7
====== ======= ======
Allowance for Loan Losses
-------------------------
Bank - PA $82,507 $80,834 $83,044 2.1 -0.6
Bank - FL 12,955 12,946 17,938 0.1 -27.8
Regency 6,631 6,882 6,630 -3.6 0.0
----- ----- -----
Total allowance for loan losses $102,093 $100,662 $107,612 1.4 -5.1
======== ======== ========
Allowance for Loan Losses /Total
Loans
--------------------------------
Bank - PA 1.10% 1.24% 1.34%
Bank - FL 9.56% 8.40% 9.69%
Regency 4.20% 4.20% 4.20%
---- ---- ----
Allowance for loan losses /total
loans
1.31% 1.47% 1.64%
==== ==== ====
Net Loan Charge-Offs (annualized)
/Total Average Loans
---------------------------------
Bank - PA 0.20% 0.30% 0.27%
Bank - FL -0.02% 23.55% 2.45%
Regency 3.56% 4.21% 3.90%
---- ---- ----
Net loan charge-offs (annualized)
/average loans 0.27% 0.95% 0.42%
==== ==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
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.
2012 2011
First Fourth First
Quarter Quarter Quarter
Adjusted
net
income:
--------
Net
income $21,582 $23,737 $17,175
Merger
and
severance
costs,
net of
tax 4,943 255 2,695
----- --- -----
Adjusted
net
income $26,524 $23,992 $19,870
======= ======= =======
Adjusted
diluted
earnings
per
share:
--------
Diluted
earnings
per
share $0.15 $0.19 $0.14
Effect
of
merger
and
severance
costs,
net of
tax 0.04 0.00 0.02
---- ---- ----
Adjusted
diluted
earnings
per
share $0.19 $0.19 $0.16
===== ===== =====
Return
on
average
tangible
equity
(2):
---------
Net
income
(annualized) $86,801 $94,175 $69,653
Amortization
of
intangibles,
net
of
tax
(annualized) 5,964 4,692 4,734
----- ----- -----
92,765 98,867 74,387
Average
total
shareholders'
equity 1,352,569 1,219,575 1,129,622
Less:
Average
intangibles (719,195) (599,352) (595,436)
-------- -------- --------
633,374 620,223 534,186
Return
on
average
tangible
equity
(2) 14.65% 15.94% 13.93%
===== ===== =====
Return
on
average
tangible
assets
(3):
---------
Net
income
(annualized) $86,801 $94,175 $69,653
Amortization
of
intangibles,
net
of
tax
(annualized) 5,964 4,692 4,734
----- ----- -----
92,765 98,867 74,387
Average
total
assets 11,563,665 9,947,884 9,695,015
Less:
Average
intangibles (719,195) (599,352) (595,436)
-------- -------- --------
10,844,470 9,348,532 9,099,579
Return
on
average
tangible
assets
(3) 0.86% 1.06% 0.82%
==== ==== ====
Tangible
book
value
per
share:
--------
Total
shareholders'
equity $1,354,699 $1,210,199 $1,128,414
Less:
intangibles (714,177) (599,414) (601,475)
-------- -------- --------
640,522 610,785 526,939
Ending
shares
outstanding 139,501,039 127,220,759 120,871,383
Tangible
book
value
per
share $4.59 $4.80 $4.36
===== ===== =====
F.N.B.
CORPORATION
------------
(Unaudited)
(Dollars
in
thousands)
2012 2011
First Fourth First
Quarter Quarter Quarter
Tangible
equity
/
tangible
assets
(period
end):
--------
Total
shareholders'
equity $1,354,699 $1,210,199 $1,128,414
Less:
intangibles (714,177) (599,414) (601,475)
-------- -------- --------
640,522 610,785 526,939
Total
assets 11,726,063 9,786,483 9,755,281
Less:
intangibles (714,177) (599,414) (601,475)
-------- -------- --------
11,011,886 9,187,069 9,153,806
Tangible
equity
/
tangible
assets
(period
end) 5.82% 6.65% 5.76%
==== ==== ====
Tangible
equity,
excluding
AOCI
/
tangible
---------
assets
(period
end)
(7):
--------
Total
shareholders'
equity $1,354,699 $1,210,199 $1,128,414
Less:
intangibles (714,177) (599,414) (601,475)
Less:
AOCI 43,735 45,148 33,679
------ ------ ------
684,257 655,933 560,618
Total
assets 11,726,063 9,786,483 9,755,281
Less:
intangibles (714,177) (599,414) (601,475)
-------- -------- --------
11,011,886 9,187,069 9,153,806
Tangible
equity,
excluding
AOCI
/
tangible
assets
(period
end)
(7) 6.21% 7.14% 6.12%
==== ==== ====
(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 less
amortization of intangibles by average
equity less average
intangibles.
(3) Return on average tangible assets is
calculated by dividing net income less
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,
FHLB prepayment penalties and merger costs
by the sum of net interest income on a
fully taxable equivalent basis plus non-
interest
income less securities gains and net
impairment losses on securities.
(6) Customer repos are included in short-term
borrowings on the balance sheet.
(7) Accumulated other comprehensive income
(AOCI) is comprised of unrealized losses
on securities, non-credit impairment
losses on
other-than-temporarily impaired
securities and unrecognized pension and
postretirement obligations.
(8) Does not include loans acquired at fair
value and purchased impaired loans
("acquired portfolio").
(9) Includes all other real estate owned,
including those balances acquired through
business combinations that have been in
acquired
loans prior to foreclosure.
(10) "Originated Portfolio" or "Originated
Loans" equals loans and leases not
included by definition in the Acquired
Portfolio.
(11) "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
for loan losses recognized subsequent to
acquisition.
(12) Represents contractual balances.
SOURCE F.N.B. Corporation
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