F.N.B. CORPORATION PITTSBURGH, Oct. 22, 2014 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported third quarter of 2014 results. Net income available to common shareholders for the third quarter of 2014 totaled $33.4 million or $0.20 per diluted common share. Comparatively, second quarter of 2014 net income totaled $32.8 million, or $0.20 per diluted common share, and third quarter of 2013 net income totaled $31.6 million or $0.22 per diluted common share. Operating([1]) results are presented in the table below, "Quarterly Results Summary".
Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "This was another very good quarter with record net income. We remain focused on building long-term value for our shareholders as we continue to successfully manage through the current regulatory and economic environment. Operating highlights include expanded revenue, loan and deposit growth, positive asset quality trends and increased capital levels. We are also pleased to have completed the OBA Financial Services acquisition, another milestone in building our presence in the Maryland market. Our expansion into the metropolitan markets of Baltimore, Maryland and Cleveland, Ohio continues to gain momentum and contribute to FNB's results."
Quarterly Results Summary 3Q14 2Q14 3Q13
---- ---- ----
Reported Results
Net income ($ in millions) $35.4 $34.8 $31.6
Preferred stock dividend expense
($ in millions) $2.0 $2.0 -
Net income available to common
shareholders ($ in millions) $33.4 $32.8 $31.6
Net income per diluted common
share $0.20 $0.20 $0.22
Operating Results (Non-GAAP)(1)
Operating net income ($ in
millions) $37.0 $35.4 $32.2
Preferred stock dividend expense
($ in millions) $2.0 $2.0 -
Operating net income available
to common shareholders ($ in
millions) $35.0 $33.4 $32.2
Operating net income per diluted
common share $0.21 $0.20 $0.22
Average Diluted Shares
Outstanding (in 000's) 168,884 167,868 146,466
----------------------- ------- ------- -------
[1] Non-GAAP measures, refer to
Non-GAAP Disclosures and detail
in the accompanying data tables.
Third Quarter 2014 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 $400 million, or 15.7%
annualized, led by organic average commercial loan growth of $221
million or 15.3% annualized. Average consumer loans grew organically
$153 million or 18.9% annualized.
-- On an organic basis, average total deposits and customer repurchase
agreements grew $102 million or 3.4% annualized. Average transaction
deposits and customer repurchase agreements grew organically $195
million, or 8.6% annualized, primarily due to organic growth in average
non-interest bearing deposits of $144 million or 24% annualized.
-- The net interest margin expanded to 3.63%, compared to 3.60% in the
prior quarter, reflecting higher accretable yield adjustments.
-- The efficiency ratio improved to 56.7%, from 57.3% in the prior quarter
and 59.7% in the year-ago quarter, reflecting continued revenue growth
and expense control.
-- Credit quality results reflect improved non-performing loan and
delinquency levels. For the originated portfolio, non-performing loans
and OREO to total loans and OREO improved 11 basis points to 1.25% and
total originated delinquency improved 7 basis points to 1.06% at
September 30, 2014. Net charge-offs were 0.29% annualized of total
average originated loans.
-- The tangible common equity to tangible assets ratio was 6.89% at
September 30, 2014, an increase of 16 basis points from 6.73% at June
30, 2014 and 80 bps from 6.09% at September 30, 2013. The tangible book
value per share increased $0.18 to $5.91 at September 30, 2014. The
linked-quarter increases reflect the benefit of the completion of the
OBA Financial Services Inc. (OBAF) acquisition on September 19, 2014.
Third Quarter 2014 Results - Comparison to Prior Quarter
(All comparisons refer to the second quarter of 2014, except as noted)
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $122.4 million, increasing $6.5 million, or 5.6%, as a result of average earning asset growth of $489 million, or 3.8%, and the benefit of higher accretable yield adjustments of $4.1 million. The net interest margin was 3.63% compared to 3.60% in the prior quarter, with the increase due to the higher accretable yield adjustments, partially offset by narrowed spreads on new loan volume reflective of the current competitive and interest rate environment.
Average loans totaled $10.5 billion and increased $436 million, or 17.1% annualized, and included average organic loan growth of $400 million or 15.7% annualized. Organic growth in average commercial loans totaled $221 million, or 15.3% annualized, and organic growth in average consumer loans (consisting of direct, consumer lines of credit and indirect loans) was $153 million or 18.9% annualized. The quarter's loan growth is footprint wide with significant contributions from the metropolitan markets of Pittsburgh, PA, Baltimore, MD and Cleveland, OH.
Average deposits and customer repurchase agreements totaled $11.9 billion and increased $139 million, or 4.7% annualized, and included average organic growth of $102 million or 3.4% 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 $195 million or 8.6% annualized. Organic growth in average non-interest bearing deposits was $144 million or 24% annualized, primarily reflecting growth in non-interest bearing business accounts and the benefit of seasonally higher balances. Total loans as a percentage of deposits and customer repurchase agreements was 89% at September 30, 2014.
Non-Interest Income
Non-interest income totaled $37.6 million, decreasing $1.6 million or 4.2%. Results for the quarter reflect consistent results from service charges and the fee-based business units of wealth management and insurance, offset by lower other non-interest income primarily due to the higher swap fee revenues in the prior quarter.
Non-Interest Expense
Non-interest expense totaled $95.8 million, increasing $3.3 million, or 3.5%, and included $1.7 million higher merger and severance costs. Excluding merger and severance costs, non-interest expense increased $1.6 million, or 1.7%, as a result of increased accruals for performance-based compensation and seasonally higher marketing expense. The efficiency ratio improved to 56.7%, compared to 57.3% in the second quarter of 2014.
Credit Quality
Credit quality metrics reflect an improvement in the ratio of non-performing loans and OREO to total loans and OREO of 11 basis points to 1.05% at September 30, 2014 and 11 basis points for the originated portfolio to 1.25%. Delinquency, defined as total originated past due and non-accrual loans as a percentage of total originated loans, improved 7 basis points to 1.06% at September 30, 2014.
Net charge-offs for the third quarter totaled $7.3 million, or 0.28% annualized of total average loans, compared to $5.9 million or 0.23% annualized in the prior quarter. For the originated portfolio, net charge-offs as a percentage of average originated loans were 0.29% annualized, compared to 0.23% annualized in the prior quarter. The ratio of the allowance for loan losses to total loans was 1.10%, compared to 1.13%, with the slight decrease primarily reflecting the addition of OBAF. For the originated portfolio, the allowance for loan losses to total originated loans was 1.24%, compared to 1.26% at June 30, 2014, with the slight decline directionally consistent with the quarter's credit quality performance. The provision for loan losses increased $0.8 million to $11.2 million primarily due to the organic loan growth during the third quarter of 2014. The ratio of the allowance for loan losses to total non-performing loans increased to 149.0%, compared to 138.9%.
Year-to-Date 2014 Results - Comparison to Prior Year-to-Date
(All comparisons refer to the third quarter 2013 year-to-date, except as noted)
Results include the impact from the completion of the OBAF acquisition completed on September 19, 2014, BCSB Bancorp, Inc. (BCSB) acquisition completed on February 15, 2014, PVF Capital Corp. (PVFC) on October 12, 2013 and Annapolis Bancorp, Inc. (ANNB) on April 6, 2013.
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $347.8 million, increasing $53.5 million or 18.2%. The net interest margin was 3.62% compared to 3.64% in the prior year-to-date period. Average earning assets grew $2.1 billion, or 19.0%, through consistent organic loan growth and the benefit of acquisition-related growth.
Average loans totaled $10.1 billion and increased $1.6 billion, or 19.4%, reflecting strong organic average loan growth of $850 million, or 10.2%, and loans added in the acquisitions. Growth in the commercial portfolio continued during the first nine months of 2014, with average balances growing organically $495 million or 10.9%. Average organic consumer loan growth (consisting of direct, consumer lines of credit and indirect loans) was $393 million or 14.7%. Organic growth results reflect the benefit of the expanded banking footprint and successful sales management.
Total average deposits and customer repurchase agreements totaled $11.7 billion and increased $1.5 billion or 14.3%, including average organic growth of $348 million or 3.5%. Organic growth in lower-cost transaction deposit accounts and customer repurchase agreements was $576 million, or 7.6%, and was primarily driven by organic growth in average non-interest bearing deposits of $333 million or 18.0%.
Non-Interest Income
Non-interest income totaled $118.8 million, increasing $15.7 million, or 15.2%, with the first nine months of 2014 including a $9.5 million (pre-tax) net gain from the sale of certain securities, including the entire pooled trust preferred securities portfolio. Organic and acquisition-related growth in service charges was offset by $5.1 million in lower customer-related interchange service charges due to the Durbin Amendment. Additionally, the first nine months of 2014 included positive results in the fee-based units, with wealth management revenue (trust income and securities commissions) increasing $2.2 million, or 10.7%, while mortgage banking revenue declined consistent with industry trends. Included in other non-interest income was increased swap fee revenue of $2.8 million.
Non-Interest Expense
Non-interest expense totaled $282.6 million, increasing $36.5 million or 14.8%. The first nine months of 2014 included merger and severance costs of $10.6 million, compared to $4.2 million in the prior year-to-date period. Absent these items, non-interest expense increased $30.1 million or 12.4%, and primarily reflects the additional operating costs related to the expanded operations from acquisitions. The efficiency ratio improved to 57.6% from 59.4%.
Credit Quality
Credit quality results reflect improvement over the prior-year period. The ratio of non-performing loans and OREO to total loans and OREO improved 28 basis points to 1.05%, and for the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO improved 24 basis points to 1.25%. Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans, improved 38 basis points to 1.06% at September 30, 2014, reflecting a $15.6 million, or 13.7%, reduction in total delinquency.
Net charge-offs totaled $18.8 million, or 0.25% annualized of total average loans, compared to $17.0 million or 0.27% annualized. For the originated portfolio, net charge-offs were $16.9 million or 0.27% annualized of total average originated loans, compared to $15.4 million or 0.27% annualized. The ratio of the allowance for loan losses to total originated loans was 1.24% at September 30, 2014, compared to 1.34% at September 30, 2013, with the change directionally consistent with the performance of the portfolio. The provision for loan losses totaled $28.6 million, compared to $22.7 million in the prior-year period primarily due to the strong organic loan growth.
Capital Position
September 30, 2014 capital ratios reflect the benefit from the completion of the OBAF acquisition. The tangible common equity to tangible assets ratio (non-GAAP measure) was 6.89%, compared to 6.73% and 6.09% at June 30, 2014 and September 30, 2013, respectively. The tangible common book value per share (non-GAAP measure) increased to $5.91 from $5.73 and $5.04 at June 30, 2014 and September 30, 2013, respectively. The common dividend payout ratio for the third quarter of 2014 was 60.25%.
The Corporation's capital levels at September 30, 2014 continue to exceed federal bank regulatory agency "well capitalized" thresholds as the estimated total risk-based capital ratio was 12.4%, the estimated tier 1 risk-based capital ratio was 11.0% and the estimated leverage ratio was 8.7%.
Conference Call
F.N.B. Corporation will host a conference call to discuss third quarter 2014 financial results on Wednesday, October 22, 2014 at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (877) 407-0613 or (201) 689-8051 for international callers. The Webcast and presentation materials 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 until Thursday, October 30, 2014 and may be accessed by dialing (877) 660-6853 or (201) 612-7415 for international callers; the conference identification number is 13592444. 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 (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in six states and three major metropolitan areas. It holds a top retail deposit market share in Pittsburgh, PA, Baltimore, MD, and Cleveland, OH. The Company has total assets of $15.8 billion and more than 280 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. The Company 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.
Cautionary Statement Regarding Forward-looking Information
We make statements in this press 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.
-- The impact of federal regulated agencies that have oversight or
review of F.N.B. Corporation's business and securities activities.
-- 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 which adversely affect loan
utilization rates, delinquencies, defaults and counterparty ability
to meet credit and other obligations.
-- Slowing or reversal of the current moderate economic recovery.
-- 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.
-- Changes to regulations governing bank capital and liquidity
standards, including due to the Dodd-Frank Act, Volcker rule 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 rapid technological
developments and changes.
-- 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.
-- 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 and 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 some of these factors in our 2013 Form 10-K and 2014 Form 10-Q's, including the Risk Factors section 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)
3Q14 - 3Q14 -
2014 2013 2Q14 3Q13
---- ----
Third Second Third Percent Percent
Statement of earnings Quarter Quarter Quarter Variance Variance
--------------------- ------- -------
Interest income $131,566 $124,440 $109,790 5.7 19.8
Interest expense 10,947 10,248 10,536 6.8 3.9
Net interest income 120,619 114,192 99,254 5.6 21.5
Taxable equivalent adjustment 1,790 1,691 1,781 5.8 0.5
Net interest income (FTE) (1) 122,409 115,883 101,035 5.6 21.2
Provision for loan losses 11,197 10,405 7,280 7.6 53.8
Net interest income after provision (FTE) 111,212 105,478 93,755 5.4 18.6
Service charges 17,742 17,441 16,427 1.7 8.0
Trust income 4,868 4,862 4,176 0.1 16.6
Insurance commissions and fees 4,169 3,691 4,088 13.0 2.0
Securities commissions and fees 3,132 3,002 2,575 4.3 21.6
Mortgage banking 1,078 928 885 16.2 21.8
Gain on sale of securities 1,178 776 5 n/m n/m
Other 5,385 8,490 4,654 -36.6 15.7
Total non-interest income 37,552 39,190 32,810 -4.2 14.5
Salaries and employee benefits 48,981 48,465 45,155 1.1 8.5
Occupancy and equipment 15,359 15,245 12,547 0.8 22.4
FDIC insurance 3,206 3,399 3,161 -5.7 1.4
Amortization of intangibles 2,455 2,461 2,067 -0.2 18.8
Other real estate owned 816 922 277 -11.6 195.0
Merger and severance-related 2,513 832 913 n/m n/m
Other 22,517 21,260 19,053 5.9 18.2
Total non-interest expense 95,847 92,584 83,173 3.5 15.2
Income before income taxes 52,917 52,084 43,392 1.6 22.0
Taxable equivalent adjustment 1,790 1,691 1,781 5.8 0.5
Income taxes 15,736 15,562 9,977 1.1 57.7
Net income 35,391 34,831 31,634 1.6 11.9
Preferred stock dividends 2,010 2,010 0
Net income available to common stockholders $33,381 $32,821 $31,634 1.7 5.5
======= ======= =======
Earnings per common share:
Basic $0.20 $0.20 $0.22 0.0 -9.1
Diluted $0.20 $0.20 $0.22 0.0 -9.1
Non-GAAP Operating Results:
---------------------------
Operating net income available to common stockholders:
Net income available to common stockholders $33,381 $32,821 $31,634
Net gain on sale of pooled TPS and other securities, net of tax 0 0 0
(Gain) loss on extinguishment of debt, net of tax 0 0 0
Merger and severance costs, net of tax 1,633 541 594
----- --- ---
Operating net income available to common stockholders $35,014 $33,362 $32,228 5.0 8.6
======= ======= =======
Operating diluted earnings per common share:
Diluted earnings per common share $0.20 $0.20 $0.22
Effect of net gain on sale of pooled TPS and other securities, net of tax 0.00 0.00 0.00
Effect of (gain) loss on extinguishment of debt, net of tax 0.00 0.00 0.00
Effect of merger and severance costs, net of tax 0.01 0.00 0.00
---- ---- ----
Operating diluted earnings per common share $0.21 $0.20 $0.22 5.0 0.0
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Nine Months Ended
September 30, Percent
-------------
Statement of earnings 2014 2013 Variance
--------------------- ----
Interest income $373,886 $322,749 15.8
Interest expense 31,250 33,653 -7.1
------ ------
Net interest income 342,636 289,096 18.5
Taxable equivalent adjustment 5,203 5,265 -1.2
----- -----
Net interest income (FTE) (1) 347,839 294,361 18.2
Provision for loan losses 28,608 22,724 25.9
------
Net interest income after provision (FTE) 319,231 271,637 17.5
Service charges 50,452 51,416 -1.9
Trust income 14,494 12,428 16.6
Insurance commissions and fees 12,805 12,619 1.5
Securities commissions and fees 8,525 8,365 1.9
Mortgage banking 2,220 3,083 -28.0
Gain on sale of securities 11,415 757 n/m
Other 18,901 14,451 30.8
------
Total non-interest income 118,812 103,119 15.2
Salaries and employee benefits 144,469 132,261 9.2
Occupancy and equipment 45,985 37,682 22.0
FDIC insurance 9,599 8,197 17.1
Amortization of intangibles 7,199 6,063 18.7
Other real estate owned 2,517 1,289 95.3
Merger and severance-related 10,593 4,211 151.6
Other 62,235 56,399 10.3
Total non-interest expense 282,597 246,102 14.8
Income before income taxes 155,446 128,654 20.8
Taxable equivalent adjustment 5,203 5,265 -1.2
Income taxes 45,497 34,024 33.7
------ ------
Net income 104,746 89,365 17.2
Preferred stock dividends 6,342 0
----- ---
Net income available to common stockholders $98,404 $89,365 10.1
======= =======
Earnings per common share:
Basic $0.60 $0.63 -4.8
Diluted $0.59 $0.62 -4.8
Non-GAAP Operating Results:
---------------------------
Operating net income available to common stockholders:
Net income available to common stockholders $98,404 $89,365
Net gain on sale of pooled TPS and other securities, net of tax (6,150) 0
(Gain) loss on extinguishment of debt, net of tax 0 (1,013)
Merger and severance costs, net of tax 6,885 2,738
----- -----
Operating net income available to common stockholders $99,139 $91,089 8.8
======= =======
Operating diluted earnings per common share:
Diluted earnings per common share $0.59 $0.62
Effect of net gain on sale of pooled TPS and other securities, net of tax (0.04) 0.00
Effect of (gain) loss on extinguishment of debt, net of tax 0.00 (0.01)
Effect of merger and severance costs, net of tax 0.04 0.02
---- ----
Operating diluted earnings per common share $0.59 $0.63 -6.3
===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
3Q14 - 3Q14 -
2014 2013 2Q14 3Q13
---- ----
Third Second Third Percent Percent
Balance Sheet (at period end) Quarter Quarter Quarter Variance Variance
---------------------------- ------- -------
Assets
Cash and due from banks $205,062 $250,954 $234,746 -18.3 -12.6
Interest bearing deposits with banks 32,906 19,766 48,763 66.5 -32.5
------ ------ ------
Cash and cash equivalents 237,968 270,720 283,509 -12.1 -16.1
Securities available for sale 1,439,735 1,384,273 1,115,558 4.0 29.1
Securities held to maturity 1,475,552 1,427,852 1,180,992 3.3 24.9
Residential mortgage loans held for sale 4,431 2,705 8,105 63.8 -45.3
Loans, net of unearned income 10,967,860 10,333,873 8,836,905 6.1 24.1
Allowance for loan losses (120,601) (116,748) (110,052) 3.3 9.6
-------- -------- --------
Net loans 10,847,259 10,217,125 8,726,853 6.2 24.3
Premises and equipment, net 166,661 162,383 147,406 2.6 13.1
Goodwill 829,271 805,514 713,509 2.9 16.2
Core deposit and other intangible assets, net 50,017 48,292 35,400 3.6 41.3
Bank owned life insurance 299,828 309,750 263,781 -3.2 13.7
Other assets 406,323 390,633 315,166 4.0 28.9
-------
Total Assets $15,757,045 $15,019,247 $12,790,279 4.9 23.2
=========== =========== ===========
Liabilities
Deposits:
Non-interest bearing demand $2,647,081 $2,429,120 $2,115,813 9.0 25.1
Interest bearing demand 4,551,241 4,354,333 3,869,971 4.5 17.6
Savings 1,574,187 1,576,480 1,377,951 -0.1 14.2
Certificates and other time deposits 2,679,584 2,697,837 2,359,636 -0.7 13.6
--------- --------- ---------
Total Deposits 11,452,093 11,057,770 9,723,371 3.6 17.8
Other liabilities 157,230 154,816 133,061 1.6 18.2
Short-term borrowings 1,601,167 1,504,510 1,166,180 6.4 37.3
Long-term debt 483,189 335,854 91,807 43.9 426.3
Junior subordinated debt 58,233 58,220 194,213 0.0 -70.0
------ ------ -------
Total Liabilities 13,751,912 13,111,170 11,308,632 4.9 21.6
Stockholders' Equity
Preferred Stock 106,882 106,882 0 n/m n/m
Common stock 1,747 1,673 1,455 4.4 20.1
Additional paid-in capital 1,791,674 1,700,220 1,440,779 5.4 24.4
Retained earnings 159,812 146,542 112,649 9.1 41.9
Accumulated other comprehensive income (40,451) (36,559) (66,171) 10.6 -38.9
Treasury stock (14,531) (10,681) (7,065) 36.0 105.7
------
Total Stockholders' Equity 2,005,133 1,908,077 1,481,647 5.1 35.3
--------- --------- ---------
Total Liabilities and Stockholders' Equity $15,757,045 $15,019,247 $12,790,279 4.9 23.2
=========== =========== ===========
Selected average balances
-------------------------
Total assets $15,217,695 $14,710,831 $12,615,338 3.4 20.6
Earning assets 13,398,703 12,909,262 11,047,767 3.8 21.3
Interest bearing deposits with banks 54,223 45,725 30,224 18.6 79.4
Securities 2,796,369 2,751,703 2,275,473 1.6 22.9
Residential mortgage loans held for sale 3,330 2,751 12,060 21.0 -72.4
Loans, net of unearned income 10,544,781 10,109,083 8,730,010 4.3 20.8
Allowance for loan losses 120,226 113,009 110,463 6.4 8.8
Goodwill and intangibles 856,795 854,760 748,592 0.2 14.5
Deposits and customer repurchase agreements (6) 11,925,256 11,786,281 10,402,935 1.2 14.6
Short-term borrowings 723,048 551,633 318,023 31.1 127.4
Long-term debt 422,698 266,925 91,659 58.4 361.2
Trust preferred securities 58,226 58,893 194,206 -1.1 -70.0
Total stockholders' equity 1,927,727 1,900,751 1,475,751 1.4 30.6
Preferred stockholders' equity 106,882 106,882 0 0.0 n/m
Common stock data
-----------------
Average diluted shares outstanding 168,884,127 167,867,608 146,446,442 0.6 15.3
Period end shares outstanding 173,495,767 166,559,258 145,263,435 4.2 19.4
Book value per common share $10.94 $10.81 $10.20 1.2 7.3
Tangible book value per common share (4) $5.91 $5.73 $5.04 3.2 17.2
Dividend payout ratio (common) 60.25% 61.26% 55.51%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Nine Months Ended
September 30, Percent
-------------
Balance Sheet (at period end) 2014 2013 Variance
---------------------------- ----
Assets
Cash and due from banks $205,062 $234,746 -12.6
Interest bearing deposits with banks 32,906 48,763 -32.5
------ ------
Cash and cash equivalents 237,968 283,509 -16.1
Securities available for sale 1,439,735 1,115,558 29.1
Securities held to maturity 1,475,552 1,180,992 24.9
Residential mortgage loans held for sale 4,431 8,105 -45.3
Loans, net of unearned income 10,967,860 8,836,905 24.1
Allowance for loan losses (120,601) (110,052) 9.6
-------- --------
Net loans 10,847,259 8,726,853 24.3
Premises and equipment, net 166,661 147,406 13.1
Goodwill 829,271 713,509 16.2
Core deposit and other intangible assets, net 50,017 35,400 41.3
Bank owned life insurance 299,828 263,781 13.7
Other assets 406,323 315,166 28.9
Total Assets $15,757,045 $12,790,279 23.2
=========== ===========
Liabilities
Deposits:
Non-interest bearing demand $2,647,081 $2,115,813 25.1
Interest bearing demand 4,551,241 3,869,971 17.6
Savings 1,574,187 1,377,951 14.2
Certificates and other time deposits 2,679,584 2,359,636 13.6
--------- ---------
Total Deposits 11,452,093 9,723,371 17.8
Other liabilities 157,230 133,061 18.2
Short-term borrowings 1,601,167 1,166,180 37.3
Long-term debt 483,189 91,807 426.3
Junior subordinated debt 58,233 194,213 -70.0
------ -------
Total Liabilities 13,751,912 11,308,632 21.6
Stockholders' Equity
Preferred Stock 106,882 0 n/m
Common stock 1,747 1,455 20.1
Additional paid-in capital 1,791,674 1,440,779 24.4
Retained earnings 159,812 112,649 41.9
Accumulated other comprehensive income (40,451) (66,171) -38.9
Treasury stock (14,531) (7,065) 105.7
Total Stockholders' Equity 2,005,133 1,481,647 35.3
--------- ---------
Total Liabilities and Stockholders' Equity $15,757,045 $12,790,279 23.2
=========== ===========
Selected average balances
-------------------------
Total assets $14,643,776 $12,365,612 18.4
Earning assets 12,854,620 10,804,457 19.0
Interest bearing deposits with banks 48,743 33,199 46.8
Securities 2,682,596 2,275,427 17.9
Residential mortgage loans held for sale 3,636 21,696 -83.2
Loans, net of unearned income 10,119,645 8,474,134 19.4
Allowance for loan losses 114,576 108,173 5.9
Goodwill and intangibles 848,942 735,638 15.4
Deposits and customer repurchase agreements (6) 11,685,675 10,226,771 14.3
Short-term borrowings 556,347 250,845 121.8
Long-term debt 303,256 92,024 229.5
Trust preferred securities 64,324 201,575 -68.1
Total stockholders' equity 1,886,386 1,453,746 29.8
Preferred stockholders' equity 106,882 0 n/m
Common stock data
-----------------
Average diluted shares outstanding 166,924,843 144,469,817 15.5
Period end shares outstanding 173,495,767 145,263,435 19.4
Book value per common share $10.94 $10.20 7.3
Tangible book value per common share (4) $5.91 $5.04 17.2
Dividend payout ratio (common) 61.21% 58.22%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
3Q14 - 3Q14 -
2014 2013 2Q14 3Q13
---- ----
Third Second Third Percent Percent
Quarter Quarter Quarter Variance Variance
------- ------- ------- -------- --------
Performance ratios
------------------
Return on average equity 7.28% 7.35% 8.50%
Return on average tangible equity (2) (4) 13.61% 13.88% 17.99%
Return on average tangible common equity (2) (4) 14.29% 14.59% 17.99%
Return on average assets 0.92% 0.95% 0.99%
Return on average tangible assets (3) (4) 1.02% 1.05% 1.10%
Net interest margin (FTE) (1) 3.63% 3.60% 3.64%
Yield on earning assets (FTE) (1) 3.96% 3.92% 4.01%
Cost of funds 0.41% 0.40% 0.47%
Efficiency ratio (FTE) (1) (5) 56.72% 57.27% 59.71%
Effective tax rate 30.78% 30.88% 23.98%
Capital ratios
--------------
Equity / assets (period end) 12.73% 12.70% 11.58%
Leverage ratio 8.69% 8.44% 8.42%
Tangible equity / tangible assets (period end) (4) 7.61% 7.49% 6.09%
Tangible common equity / tangible assets (period end) (4) 6.89% 6.73% 6.09%
Tangible equity, excluding AOCI / tangible assets (period end) (4) (7) 7.16% 6.99% 6.63%
Balances at period end
----------------------
Loans:
------
Commercial real estate $3,790,164 $3,577,933 $2,920,808 5.9 29.8
Commercial and industrial 2,247,605 2,103,896 1,755,235 6.8 28.1
Commercial leases 171,615 164,676 141,714 4.2 21.1
------- ------- -------
Commercial loans and leases 6,209,384 5,846,505 4,817,757 6.2 28.9
Direct installment 1,579,312 1,512,149 1,408,539 4.4 12.1
Residential mortgages 1,231,796 1,145,286 1,031,805 7.6 19.4
Indirect installment 805,836 729,513 638,312 10.5 26.2
Consumer LOC 1,087,271 1,037,519 887,981 4.8 22.4
Other 54,261 62,901 52,511 -13.7 3.3
Total loans $10,967,860 $10,333,873 $8,836,905 6.1 24.1
=========== ===========
Deposits:
---------
Non-interest bearing deposits $2,647,081 $2,429,120 $2,115,813 9.0 25.1
Interest bearing demand 4,551,241 4,354,333 3,869,971 4.5 17.6
Savings 1,574,187 1,576,480 1,377,951 -0.1 14.2
Certificates of deposit and other time deposits 2,679,584 2,697,837 2,359,636 -0.7 13.6
Total deposits 11,452,093 11,057,770 9,723,371 3.6 17.8
Customer repurchase agreements (6) 857,217 751,066 834,610 14.1 2.7
Total deposits and customer repurchase agreements (6) $12,309,310 $11,808,836 $10,557,981 4.2 16.6
Average balances
----------------
Loans:
------
Commercial real estate $3,614,717 $3,515,115 $2,891,354 2.8 25.0
Commercial and industrial 2,175,751 2,034,481 1,753,053 6.9 24.1
Commercial leases 168,865 163,720 138,441 3.1 22.0
------- ------- -------
Commercial loans and leases 5,959,333 5,713,316 4,782,848 4.3 24.6
Direct installment 1,548,224 1,484,698 1,362,881 4.3 13.6
Residential mortgages 1,160,826 1,134,820 1,043,349 2.3 11.3
Indirect installment 764,585 702,257 621,705 8.9 23.0
Consumer LOC 1,053,739 1,023,963 875,239 2.9 20.4
Other 58,074 50,028 43,988 16.1 32.0
Total loans $10,544,781 $10,109,082 $8,730,010 4.3 20.8
Deposits:
---------
Non-interest bearing deposits $2,524,568 $2,374,516 $2,033,370 6.3 24.2
Interest bearing demand 4,398,565 4,301,667 3,841,619 2.3 14.5
Savings 1,575,775 1,575,453 1,387,869 0.0 13.5
Certificates of deposit and other time deposits 2,653,535 2,736,294 2,391,828 -3.0 10.9
Total deposits 11,152,443 10,987,930 9,654,686 1.5 15.5
Customer repurchase agreements (6) 772,813 798,351 748,249 -3.2 3.3
Total deposits and customer repurchase agreements (6) $11,925,256 $11,786,281 $10,402,935 1.2 14.6
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Nine Months Ended
September 30, Percent
-------------
2014 2013 Variance
---- ---- --------
Performance ratios
------------------
Return on average equity 7.42% 8.22%
Return on average tangible equity (2) (4) 14.01% 17.37%
Return on average tangible common equity (2) (4) 14.70% 17.37%
Return on average assets 0.96% 0.97%
Return on average tangible assets (3) (4) 1.06% 1.07%
Net interest margin (FTE) (1) 3.62% 3.64%
Yield on earning assets (FTE) (1) 3.94% 4.06%
Cost of funds 0.41% 0.51%
Efficiency ratio (FTE) (1) (5) 57.62% 59.35%
Effective tax rate 30.28% 27.57%
Capital ratios
--------------
Equity / assets (period end) 12.73% 11.58%
Leverage ratio 8.69% 8.42%
Tangible equity / tangible assets (period end) (4) 7.61% 6.09%
Tangible common equity / tangible assets (period end) (4) 6.89% 6.09%
Tangible equity, excluding AOCI / tangible assets (period end) (4) (7) 7.16% 6.63%
Balances at period end
----------------------
Loans:
------
Commercial real estate $3,790,164 $2,920,808 29.8
Commercial and industrial 2,247,605 1,755,235 28.1
Commercial leases 171,615 141,714 21.1
------- -------
Commercial loans and leases 6,209,384 4,817,757 28.9
Direct installment 1,579,312 1,408,539 12.1
Residential mortgages 1,231,796 1,031,805 19.4
Indirect installment 805,836 638,312 26.2
Consumer LOC 1,087,271 887,981 22.4
Other 54,261 52,511 3.3
Total loans $10,967,859 $8,836,905 24.1
Deposits:
---------
Non-interest bearing deposits $2,647,081 $2,115,813 25.1
Interest bearing demand 4,551,241 3,869,971 17.6
Savings 1,574,187 1,377,951 14.2
Certificates of deposit and other time deposits 2,679,584 2,359,636 13.6
Total deposits 11,452,093 9,723,371 17.8
Customer repurchase agreements (6) 857,217 834,610 2.7
Total deposits and customer repurchase agreements (6) $12,309,310 $10,557,981 16.6
Average balances
----------------
Loans:
------
Commercial real estate $3,487,313 $2,823,940 23.5
Commercial and industrial 2,049,510 1,704,804 20.2
Commercial leases 164,349 134,138 22.5
------- -------
Commercial loans and leases 5,701,172 4,662,882 22.3
Direct installment 1,500,070 1,263,872 18.7
Residential mortgages 1,134,528 1,062,288 6.8
Indirect installment 711,313 595,474 19.5
Consumer LOC 1,021,912 847,978 20.5
Other 50,650 41,640 21.6
Total loans $10,119,645 $8,474,134 19.4
Deposits:
---------
Non-interest bearing deposits $2,375,062 $1,894,206 25.4
Interest bearing demand 4,267,539 3,774,211 13.1
Savings 1,548,791 1,339,723 15.6
Certificates of deposit and other time deposits 2,694,813 2,448,634 10.1
Total deposits 10,886,205 9,456,774 15.1
Customer repurchase agreements (6) 799,470 769,997 3.8
Total deposits and customer repurchase agreements (6) $11,685,675 $10,226,771 14.3
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
3Q14 - 3Q14 -
2014 2013 2Q14 3Q13
---- ----
Third Second Third Percent Percent
Asset Quality Data Quarter Quarter Quarter Variance Variance
------------------ ------- -------
Non-Performing Assets
---------------------
Non-performing loans (8)
Non-accrual loans $55,095 $59,549 $65,451 -7.5 -15.8
Restructured loans 21,797 20,485 17,252 6.4 26.3
------ ------ ------
Non-performing loans 76,892 80,034 82,703 -3.9 -7.0
Other real estate owned (9) 39,040 40,268 35,144 -3.0 11.1
------ ------ ------
Non-performing loans and OREO 115,932 120,302 117,847 -3.6 -1.6
Non-performing investments 0 0 733 n/m n/m
--- --- ---
Total non-performing assets $115,932 $120,302 $118,580 -3.6 -2.2
======== ======== ========
Non-performing loans / total loans 0.70% 0.77% 0.94%
Non-performing loans / total originated loans (10) 0.83% 0.91% 1.05%
Non-performing loans + OREO / total loans + OREO 1.05% 1.16% 1.33%
Non-performing loans + OREO / total originated loans + OREO (10) 1.25% 1.36% 1.49%
Non-performing assets / total assets 0.74% 0.80% 0.93%
Allowance Rollforward
---------------------
Allowance for loan losses (originated portfolio) (10)
Balance at beginning of period $111,188 $107,123 $102,849 3.8 8.1
Provision for loan losses 9,860 8,900 7,505 10.8 31.4
Net loan charge-offs (6,479) (4,835) (5,018) 34.0 29.1
Allowance for loan losses (originated portfolio) (10) 114,569 111,188 105,336 3.0 8.8
Allowance for loan losses (acquired portfolio) (11)
Balance at beginning of period 5,560 5,096 5,431
Provision for loan losses 1,337 1,505 (226)
Net loan charge-offs (865) (1,041) (489)
---- ------ ----
Allowance for loan losses (acquired portfolio) (11) 6,032 5,560 4,716 8.5 27.9
Total allowance for loan losses $120,601 $116,748 $110,052 3.3 9.6
======== ======== ========
Allowance for loan losses / total loans 1.10% 1.13% 1.25%
Allowance for loan losses (originated loans) / total originated loans (10) 1.24% 1.26% 1.34%
Allowance for loan losses (originated loans) / total non-performing loans (8) 149.00% 138.93% 127.37%
Net loan charge-offs (annualized) / total average loans 0.28% 0.23% 0.25%
Net loan charge-offs on originated loans (annualized) / total average originated loans (10) 0.29% 0.23% 0.26%
Delinquency - Originated Portfolio (10)
--------------------------------------
Loans 30-89 days past due $35,899 $33,821 $41,212 6.1 -12.9
Loans 90+ days past due 7,085 6,282 7,018 12.8 1.0
Non-accrual loans 55,095 59,549 65,451 -7.5 -15.8
------ ------ ------
Total past due and non-accrual loans $98,079 $99,652 $113,681 -1.6 -13.7
======= ======= ========
Total past due and non-accrual loans / total originated loans 1.06% 1.13% 1.44%
Memo item:
Delinquency - Acquired Portfolio (11) (12)
-----------------------------------------
Loans 30-89 days past due $29,191 $30,657 $16,968 -4.8 72.0
Loans 90+ days past due 39,236 58,636 41,458 -33.1 -5.4
Non-accrual loans 0 0 0 0.0 0.0
--- --- ---
Total past due and non-accrual loans $68,427 $89,293 $58,426 -23.4 17.1
======= ======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Nine Months Ended
September 30, Percent
-------------
Asset Quality Data 2014 2013 Variance
------------------ ----
Non-Performing Assets
---------------------
Non-performing loans (8)
Non-accrual loans $55,095 $65,451 -15.8
Restructured loans 21,797 17,252 26.3
Non-performing loans 76,892 82,703 -7.0
Other real estate owned (9) 39,040 35,144 11.1
Non-performing loans and OREO 115,932 117,847 -1.6
Non-performing investments 0 733 n/m
Total non-performing assets $115,932 $118,580 -2.2
Non-performing loans / total loans 0.70% 0.94%
Non-performing loans / total originated loans (10) 0.83% 1.05%
Non-performing loans + OREO / total loans + OREO 1.05% 1.33%
Non-performing loans + OREO / total originated loans + OREO (10) 1.25% 1.49%
Non-performing assets / total assets 0.74% 0.93%
Allowance Rollforward
---------------------
Allowance for loan losses (originated portfolio) (10)
Balance at beginning of period $104,884 $100,194 4.7
Provision for loan losses 26,616 20,513 29.8
Net loan charge-offs (16,931) (15,370) 10.2
Allowance for loan losses (originated portfolio) (10) 114,569 105,337 8.8
Allowance for loan losses (acquired portfolio) (11)
Balance at beginning of period 5,900 4,180
Provision for loan losses 1,992 2,211
Net loan charge-offs (1,860) (1,675)
------ ------
Allowance for loan losses (acquired portfolio) (11) 6,032 4,716 27.9
Total allowance for loan losses $120,601 $110,053 9.6
======== ========
Allowance for loan losses / total loans 1.10% 1.25%
Allowance for loan losses (originated loans) / total originated loans (10) 1.24% 1.34%
Allowance for loan losses (originated loans) / total non-performing loans (8) 149.00% 127.37%
Net loan charge-offs (annualized) / total average loans 0.25% 0.27%
Net loan charge-offs on originated loans (annualized) / total average originated loans (10) 0.27% 0.27%
Delinquency - Originated Portfolio (10)
--------------------------------------
Loans 30-89 days past due $35,899 $41,212 -12.9
Loans 90+ days past due 7,085 7,018 1.0
Non-accrual loans 55,095 65,451 -15.8
Total past due and non-accrual loans $98,079 $113,681 -13.7
======= ========
Total past due and non-accrual loans / total originated loans 1.06% 1.44%
Memo item:
Delinquency - Acquired Portfolio (11) (12)
-----------------------------------------
Loans 30-89 days past due $29,191 $16,968 72.0
Loans 90+ days past due 39,236 41,458 -5.4
Non-accrual loans 0 0 0.0
Total past due and non-accrual loans $68,427 $58,426 17.1
======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2014
----
Third Quarter Second 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 $54,223 $23 0.17% $45,725 $21 0.18%
Taxable investment securities (13) 2,636,572 13,711 2.08% 2,600,855 13,578 2.04%
Non-taxable investment securities (14) 159,797 2,086 5.22% 150,848 1,987 5.27%
Residential mortgage loans held for sale 3,330 62 7.44% 2,751 90 13.08%
Loans (14) (15) 10,544,781 117,474 4.43% 10,109,083 110,455 4.38%
Total Interest Earning Assets (14) 13,398,703 133,356 3.96% 12,909,262 126,131 3.92%
Cash and due from banks 199,157 193,670
Allowance for loan losses (120,226) (113,009)
Premises and equipment 163,368 164,063
Other assets 1,576,693 1,556,845
Total Assets $15,217,695 $14,710,831
Liabilities
Deposits:
Interest-bearing demand $4,398,565 1,752 0.16% $4,301,667 1,665 0.16%
Savings 1,575,775 172 0.04% 1,575,453 182 0.05%
Certificates and other time 2,653,535 5,533 0.83% 2,736,294 5,614 0.82%
Customer repurchase agreements 772,812 413 0.21% 798,351 439 0.22%
Other short-term borrowings 723,049 1,046 0.57% 551,633 870 0.62%
Long-term debt 422,698 1,692 1.59% 266,925 1,136 1.71%
Junior subordinated debt 58,226 339 2.31% 58,893 342 2.33%
Total Interest Bearing Liabilities (14) 10,604,660 10,947 0.41% 10,289,216 10,248 0.40%
Non-interest bearing demand deposits 2,524,568 2,374,516
Other liabilities 160,740 146,348
Total Liabilities 13,289,968 12,810,080
Stockholders' equity 1,927,727 1,900,751
Total Liabilities and Stockholders' Equity $15,217,695 $14,710,831
Net Interest Earning Assets $2,794,043 $2,620,046
========== ==========
Net Interest Income (FTE) 122,409 115,883
Tax Equivalent Adjustment (1,790) (1,691)
------ ------
Net Interest Income $120,619 $114,192
======== ========
Net Interest Spread 3.55% 3.52%
==== ====
Net Interest Margin (14) 3.63% 3.60%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2013
----
Third Quarter
Interest Average
Average Earned Yield
Outstanding or Paid or Rate
Assets
Interest bearing deposits with banks $30,224 $13 0.17%
Taxable investment securities (13) 2,117,849 10,889 2.06%
Non-taxable investment securities (14) 157,624 2,122 5.38%
Residential mortgage loans held for sale 12,060 134 4.45%
Loans (14) (15) 8,730,010 98,413 4.48%
Total Interest Earning Assets (14) 11,047,767 111,571 4.01%
Cash and due from banks 185,419
Allowance for loan losses (110,463)
Premises and equipment 147,804
Other assets 1,344,811
Total Assets $12,615,338
Liabilities
Deposits:
Interest-bearing demand $3,841,619 1,391 0.14%
Savings 1,387,869 162 0.05%
Certificates and other time 2,391,828 5,342 0.89%
Customer repurchase agreements 748,249 419 0.22%
Other short-term borrowings 318,024 703 0.87%
Long-term debt 91,659 719 3.11%
Junior subordinated debt 194,206 1,800 3.68%
Total Interest Bearing Liabilities (14) 8,973,454 10,536 0.47%
Non-interest bearing demand deposits 2,033,370
Other liabilities 132,763
Total Liabilities 11,139,587
Stockholders' equity 1,475,751
Total Liabilities and Stockholders' Equity $12,615,338
Net Interest Earning Assets $2,074,313
==========
Net Interest Income (FTE) 101,035
Tax Equivalent Adjustment (1,781)
------
Net Interest Income $99,254
=======
Net Interest Spread 3.55%
====
Net Interest Margin (14) 3.64%
====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Nine Months Ended September 30,
---------------------------------------
2014 2013
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 $48,743 $70 0.19% $33,199 $45 0.18%
Taxable investment securities (13) 2,529,140 39,739 2.10% 2,112,382 32,170 2.03%
Non-taxable investment securities (14) 153,456 6,072 5.28% 163,045 6,682 5.46%
Residential mortgage loans held for sale 3,636 287 10.53% 21,696 617 3.79%
Loans (14) (15) 10,119,645 332,921 4.40% 8,474,135 288,500 4.55%
Total Interest Earning Assets (14) 12,854,620 379,089 3.94% 10,804,457 328,014 4.06%
---------- ----------
Cash and due from banks 184,184 178,154
Allowance for loan losses (114,576) (108,173)
Premises and equipment 162,526 144,212
Other assets 1,547,022 1,346,962
Total Assets $14,633,776 $12,365,612
Liabilities
Deposits:
Interest-bearing demand $4,267,539 4,932 0.15% $3,774,211 4,326 0.15%
Savings 1,548,791 526 0.05% 1,339,723 491 0.05%
Certificates and other time 2,694,813 16,609 0.82% 2,448,634 17,686 0.97%
Customer repurchase agreements 799,470 1,315 0.22% 769,997 1,340 0.23%
Other short-term borrowings 556,347 2,696 0.65% 250,846 1,964 1.04%
Long-term debt 303,255 3,850 1.70% 92,024 2,268 3.30%
Junior subordinated debt 64,324 1,322 2.75% 201,575 5,578 3.70%
Total Interest Bearing Liabilities (14) 10,234,539 31,250 0.41% 8,877,010 33,653 0.51%
Non-interest bearing demand deposits 2,375,062 1,894,206
Other liabilities 147,789 140,650
Total Liabilities 12,757,390 10,911,866
Stockholders' equity 1,886,386 1,453,746
Total Liabilities and Stockholders' Equity $14,643,776 $12,365,612
Net Interest Earning Assets $2,620,081 $1,927,447
========== ==========
Net Interest Income (FTE) 347,839 294,361
Tax Equivalent Adjustment (5,203) (5,265)
------ ------
Net Interest Income $342,636 $289,096
======== ========
Net Interest Spread 3.53% 3.55%
==== ====
Net Interest Margin (14) 3.62% 3.64%
==== ====
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.
2014 2013
---- ----
Third Second Third
Quarter Quarter Quarter
------- ------- -------
Return on average tangible equity (2):
--------------------------------------
Net income (annualized) $140,408 $139,709 $125,505
Amortization of intangibles, net of tax (annualized) 6,332 6,417 5,331
----- ----- -----
146,740 146,126 130,836
Average total shareholders' equity 1,927,727 1,900,751 1,475,751
Less: Average intangibles (849,902) (847,815) (748,592)
-------- -------- --------
1,077,825 1,052,936 727,159
Return on average tangible equity (2) 13.61% 13.88% 17.99%
===== ===== =====
Return on average tangible common equity (2):
---------------------------------------------
Net income available to common stockholders (annualized) $132,437 $131,646 $125,505
Amortization of intangibles, net of tax (annualized) 6,332 6,417 5,331
----- ----- -----
138,769 138,063 130,836
Average total stockholders' equity 1,927,727 1,900,751 1,475,751
Less: Average preferred stockholders' equity (106,882) (106,882) 0
Less: Average intangibles (849,902) (847,815) (748,592)
-------- -------- --------
970,943 946,054 727,159
Return on average tangible common equity (2) 14.29% 14.59% 17.99%
===== ===== =====
Return on average tangible assets (3):
--------------------------------------
Net income (annualized) $140,408 $139,709 $125,505
Amortization of intangibles, net of tax (annualized) 6,332 6,417 5,331
----- ----- -----
146,740 146,126 130,836
Average total assets 15,217,695 14,710,831 12,615,338
Less: Average intangibles (849,902) (847,815) (748,592)
-------- -------- --------
14,367,793 13,863,016 11,866,746
Return on average tangible assets (3) 1.02% 1.05% 1.10%
==== ==== ====
Tangible book value per share:
------------------------------
Total shareholders' equity $2,005,133 $1,908,077 $1,481,647
Less: preferred shareholders' equity (106,882) (106,882) 0
Less: intangibles (872,479) (846,830) (748,909)
-------- -------- --------
1,025,772 954,365 732,738
Ending shares outstanding 173,495,767 166,559,258 145,263,435
Tangible book value per share $5.91 $5.73 $5.04
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per
share data)
For the Nine Months Ended
September 30,
-------------
2014 2013
---- ----
Return on average tangible equity
(2):
---------------------------------
Net income (annualized) $140,045 $119,480
Amortization of intangibles, net
of tax (annualized) 6,257 5,269
----- -----
146,302 124,749
Average total shareholders'
equity 1,886,386 1,453,746
Less: Average
intangibles (841,770) (735,638)
-------- --------
1,044,616 718,108
Return on average tangible equity
(2) 14.01% 17.37%
===== =====
Return on average tangible common
equity (2):
---------------------------------
Net income available to common
stockholders (annualized) $131,565 $119,480
Amortization of intangibles, net
of tax (annualized) 6,257 5,269
----- -----
137,822 124,749
Average total stockholders'
equity 1,886,386 1,453,746
Less: Average preferred
stockholders' equity (106,882) 0
Less: Average
intangibles (841,770) (735,638)
-------- --------
937,734 718,108
Return on average tangible common
equity (2) 14.70% 17.37%
===== =====
Return on average tangible assets
(3):
---------------------------------
Net income (annualized) $140,045 $119,480
Amortization of intangibles, net
of tax (annualized) 6,257 5,269
----- -----
146,302 124,749
Average total assets 14,643,776 12,365,612
Less: Average
intangibles (841,770) (735,638)
-------- --------
13,802,006 11,629,974
Return on average tangible assets
(3) 1.06% 1.07%
==== ====
Tangible book value per share:
------------------------------
Total shareholders'
equity $2,005,133 $1,481,647
Less: preferred shareholders'
equity (106,882) 0
Less:
intangibles (872,479) (748,909)
-------- --------
1,025,772 732,737
Ending shares
outstanding 173,495,767 145,263,435
Tangible book value per
share $5.91 $5.04
===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
2014 2013
---- ----
Third Second Third
Quarter Quarter Quarter
------- -------
Tangible equity / tangible assets (period end):
-----------------------------------------------
Total shareholders' equity $2,005,133 $1,908,077 $1,481,647
Less: intangibles (872,479) (846,830) (748,909)
-------- -------- --------
1,132,654 1,061,247 732,738
Total assets 15,757,045 15,019,247 12,790,279
Less: intangibles (872,479) (846,830) (748,909)
-------- -------- --------
14,884,566 14,172,417 12,041,370
Tangible equity / tangible assets (period end) 7.61% 7.49% 6.09%
==== ==== ====
Tangible common equity / tangible assets (period end):
------------------------------------------------------
Total stockholders' equity $2,005,133 $1,908,077 $1,481,647
Less: preferred stockholders' equity (106,882) (106,882) 0
Less: intangibles (872,479) (846,830) (748,909)
-------- -------- --------
1,025,772 954,365 732,738
Total assets 15,757,045 15,019,247 12,790,279
Less: intangibles (872,479) (846,830) (748,909)
-------- -------- --------
14,884,566 14,172,417 12,041,370
Tangible equity / tangible assets (period end) 6.89% 6.73% 6.09%
==== ==== ====
Tangible equity, excluding AOCI / tangible
------------------------------------------
assets (period end) (7):
------------------------
Total shareholders' equity $2,005,133 $1,908,077 $1,481,647
Less: preferred shareholders' equity (106,882) (106,882) 0
Less: intangibles (872,479) (846,830) (748,909)
Less: AOCI 40,451 36,559 66,171
------ ------ ------
1,066,223 990,924 798,909
Total assets 15,757,045 15,019,247 12,790,279
Less: intangibles (872,479) (846,830) (748,909)
-------- -------- --------
14,884,566 14,172,417 12,041,370
Tangible equity, excluding AOCI / tangible
assets (period end) (7) 7.16% 6.99% 6.63%
==== ==== ====
(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.
(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 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) Accumulated other comprehensive income (AOCI) is comprised of
unrealized losses on securities, unrealized losses on
derivative instruments and unrecognized unrecognized pension
and postretirement obligations.
(8) Does not include loans acquired at fair value
("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 loan losses recognized subsequent to
acquisition.
(12) Represents contractual balances.
(13) The average balances and yields earned on taxable investment
securities are based on historical cost.
(14) 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.
(15) Average balances for loans include non-accrual loans. Loans
consist of average total loans 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-continued-revenue-growth-and-record-net-income-590943725.html
SOURCE F.N.B. Corporation
