F.N.B. CORPORATION PITTSBURGH, April 23, 2015 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported first quarter 2015 results. Net income available to common shareholders for the first quarter of 2015 totaled $38.3 million, or $0.22 per diluted common share. Comparatively, first quarter of 2014 net income totaled $32.2 million, or $0.20 per diluted common share, and fourth quarter of 2014 net income totaled $37.3 million, or $0.21 per diluted common share. Operating results are presented in the table below.
Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "The high-quality results, which include a 16% increase in operating earnings per share, demonstrate the successful execution of our organic and acquisition growth strategy. During the first quarter, we continued to grow revenue, loans, deposits and fee-based income with solid asset quality results. As we move forward throughout 2015, our strengthened capital levels and balance sheet position enable the organization to support our long-term organic growth objectives."
Quarterly Results Summary 1Q15 4Q14 1Q14
---- ---- ----
Reported Results
Net income available to common
shareholders ($ in millions) $38.3 $37.3 $32.2
Net income per diluted common
share $0.22 $0.21 $0.20
Operating Results (Non-GAAP)
Operating net income available
to common shareholders ($ in
millions) $38.3 $36.4 $30.8
Operating net income per diluted
common share $0.22 $0.21 $0.19
Average Diluted Shares
Outstanding (in 000's) 175,826 175,630 163,967
----------------------- ------- ------- -------
First Quarter 2015 Highlights
(All comparisons are to the prior quarter, except as noted; Organic growth in loans and leases and deposits refers to growth excluding the benefit of initial balances obtained via acquisitions.)
-- Organic growth in total average loans and leases was $194 million, or
7.1% annualized, with average commercial loan and lease growth of $81
million, or 5.2% annualized, and average consumer loan growth
(consisting of direct loans, consumer lines of credit, indirect
installment and residential loans) of $119 million, or 10.1% annualized.
-- On an organic basis, average total deposits and customer repurchase
agreements declined slightly by $30 million, or 1.0% annualized, due to
the impact of seasonally lower customer repurchase agreement balances.
Period-end total deposits and customer repurchase agreements grew
organically by $298 million, or 9.9% annualized.
-- The net interest margin was 3.48%, compared to 3.54%, with the narrowing
reflecting the continued low interest rate environment.
-- The efficiency ratio was 56.6%, compared to 56.1% in the prior quarter
and 59.0% in the first quarter of 2014.
-- Credit quality results reflect further improvement in non-performing
loan and delinquency levels. For the originated portfolio,
non-performing loans and other real estate owned (OREO) to total loans
and leases and OREO improved 5 basis points to 1.08% and total
originated delinquency improved 13 basis points to 0.86% at March 31,
2015. Net originated charge-offs were 0.24% annualized of total average
originated loans and leases, compared to 0.17% annualized in the fourth
quarter of 2014 and 0.28% annualized in the year-ago quarter.
-- The tangible common equity to tangible assets ratio increased 18 basis
points to 7.01% at March 31, 2015. The tangible book value per share
(non-GAAP measure) increased $0.19 to $6.18 at March 31, 2015.
First Quarter 2015 Results - Comparison to Prior-Year Quarter
(All comparisons refer to the first quarter of 2014, except as noted)
Results include the impact from the OBA Financial Services, Inc. (OBAF) acquisition on September 19, 2014, and the BCSB Bancorp, Inc. (BCSB) acquisition on February 15, 2014.
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $123.7 million, increasing $14.2 million, or 12.9%, primarily due to strong organic growth and the benefit from a full quarter of BCSB and OBAF. The net interest margin was 3.48%, compared to 3.62%, with the narrowing primarily attributable to the continued low interest rate environment and a competitive lending environment. Average earning assets grew $2.1 billion, or 17.2%, through consistent organic loan growth and the benefit of acquisition-related growth.
Average loans and leases totaled $11.3 billion representing an increase of $1.6 billion, or 16.4%, reflecting strong organic average loan and lease growth of $1.1 billion, or 11.5%, and loans added with the BCSB and OBAF acquisitions. Average organic commercial loan and lease growth was strong, increasing $575 million or 10.4%. Average organic consumer loan growth (consisting of direct loans, consumer lines of credit, indirect installment and residential loans) was also strong, increasing $556 million, or 13.0%. Organic growth results reflect the benefit of the increased number of prospects in the greater Pittsburgh, Baltimore and Cleveland metropolitan markets and continued successful sales management.
Average deposits and customer repurchase agreements totaled $12.4 billion, an increase of $1.0 billion, or 9.0%, including average organic growth of $454 million, or 3.9%. Organic growth in low-cost transaction deposit accounts and customer repurchase agreements was $755 million, or 8.6%, led by strong organic growth in average non-interest bearing deposits of $339 million, or 15.1%.
Non-Interest Income
Non-interest income totaled $38.2 million, decreasing $3.9 million, or 9.2%, with the first quarter of 2014 including higher gains on the sale of securities of $9.5 million. Excluding securities gains, non-interest income increased $5.6 million, or 17.1%, due to organic growth across several fee-based businesses and acquisition-related growth. Mortgage banking revenues increased $1.6 million, due mainly to higher origination volume and successful cross-selling efforts. Wealth management revenues, which includes trust income and securities commissions, increased $1.1 million, or 14.9%, reflecting organic sales growth and added benefit from the BCSB and OBAF acquisitions. Customer swap fee revenue increased by $1.6 million, reflecting solid organic commercial loan growth during the quarter and demand for these products given the potential for interest rate increases in the current interest rate environment.
Non-Interest Expense
Non-interest expense totaled $94.7 million, increasing $0.5 million, or 0.5%. Excluding merger and severance costs of $7.2 million in the first quarter of 2014, non-interest expense increased $7.7 million, or 8.9%, primarily attributable to the additional operating costs related to a full quarter of BCSB and OBAF. The efficiency ratio improved to 56.6% from 59.0%.
Credit Quality
Credit quality results reflect overall improvement from the prior-year period. The ratio of non-performing loans and OREO to total loans and leases and OREO improved 29 basis points to 0.94%, and for the originated portfolio, the ratio of non-performing loans and OREO to total loans and leases and OREO improved 38 basis points to 1.08%. Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans and leases, improved 31 basis points to 0.86% at March 31, 2015, reflecting a $12.4 million, or 12.6%, reduction in total originated delinquency.
Net charge-offs totaled $5.6 million, or 0.20% annualized of total average loans and leases, compared to $5.6 million, or 0.23% annualized. For the originated portfolio, net charge-offs were $5.8 million, or 0.24% annualized of total average originated loans and leases, compared to $5.6 million, or 0.28% annualized. The ratio of the allowance for credit losses to total originated loans and leases was 1.22% at March 31, 2015, compared to 1.28%, with the change directionally consistent with the performance of the portfolio. The provision for credit losses totaled $8.1 million, compared to $7.0 million in the prior-year period primarily due to the strong organic loan and lease growth.
First Quarter 2015 Results - Comparison to Prior Quarter
(All comparisons refer to the fourth quarter of 2014, except as noted)
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $123.7 million, decreasing $1.7 million, or 1.3%, reflecting two fewer days in the quarter and a continued low interest rate environment. The net interest margin was 3.48%, compared to 3.54% in the prior quarter. Excluding accretable yield adjustments, the first quarter core net interest margin was 3.43%, compared to 3.49%. The narrowing in the net interest margin reflects the continued low interest rate environment and a competitive lending environment.
Average loans and leases totaled $11.3 billion, and total average organic loan and lease growth totaled $194 million, or 7.1% annualized. Organic growth in average commercial loans and leases totaled $81 million, or 5.2% annualized, and organic growth in average consumer loans (consisting of direct loans, consumer lines of credit, indirect installment and residential loans) was $119 million, or 10.1% annualized. Commercial and consumer loan growth continued to benefit from the increased number of lending opportunities in the greater Pittsburgh, Baltimore and Cleveland metropolitan markets.
Average deposits and customer repurchase agreements totaled $12.4 billion. On an organic basis, average total deposits and customer repurchase agreements decreased slightly by $30 million, or 1.0% annualized, reflecting the timing of seasonally lower average customer repurchase agreements. On a period-end basis, organic growth in total deposits and customer repurchase agreements was strong at $298 million, or 9.9% annualized. On an organic basis, average total transaction deposits and customer repurchase agreements increased $10 million, or 0.4% annualized, reflecting seasonally lower business deposits and customer repurchase agreement balances. On a period-end basis, organic growth in transaction deposits and customer repurchase agreements was strong at $320 million, or 13.5% annualized. Total loans as a percentage of deposits and customer repurchase agreements was 91% at March 31, 2015.
Non-Interest Income
Non-interest income totaled $38.2 million, decreasing $1.3 million, or 3.2%. Excluding a non-recurring $2.7 million gain in the fourth quarter of 2014, non-interest income increased $1.4 million, or 3.9%. The first quarter included positive results from mortgage banking, wealth management and higher swap fee revenue, offset by a seasonal decline in service charges. Mortgage banking results reflect successful cross-selling efforts, higher purchase volume and slightly increased refinance activity in 2015. Non-interest income represents 24% of total revenue.
Non-Interest Expense
Non-interest expense totaled $94.7 million, decreasing $2.0 million, or 2.1%. Excluding $1.6 million of merger and severance costs in the fourth quarter of 2014, non-interest expense decreased $0.4 million, or 0.5%, in the first quarter of 2015, reflecting a $1.0 million decrease in OREO expense, seasonally lower marketing costs and lower professional services fees. The $1.1 million increase in weather-related occupancy and equipment costs partially offset these items. The efficiency ratio was 56.6%, compared to 56.1%.
Credit Quality
Credit quality metrics reflect an improvement in the ratio of non-performing loans and OREO to total loans and leases and OREO of 3 basis points to 0.94% at March 31, 2015, and 5 basis points for the originated portfolio to 1.08%. Delinquency improved 13 basis points to 0.86% at March 31, 2015.
Net charge-offs for the first quarter totaled $5.6 million, or 0.20% annualized of total average loans and leases, compared to $4.7 million, or 0.17% annualized, in the prior quarter. For the originated portfolio, net charge-offs as a percentage of average originated loans and leases were 0.24% annualized, compared to 0.17% annualized in the prior quarter. For the originated portfolio, the allowance for credit losses to total originated loans and leases was flat at 1.22%, compared to December 31, 2014. The ratio of the allowance for credit losses to total loans and leases increased slightly to 1.13%, compared to 1.12%. The provision for credit losses decreased $1.9 million to $8.1 million. The ratio of the allowance for credit losses to total non-performing loans increased to 180.8%, compared to 172.1%.
Capital Position
The tangible common equity to tangible assets ratio (non-GAAP measure) was 7.01%, compared to 6.83% and 6.81% at December 31, 2014 and March 31, 2014, respectively. The tangible book value per common share (non-GAAP measure) increased to $6.18, from $5.99 and $5.58 at December 31, 2014 and March 31, 2014, respectively. The common dividend payout ratio for the first quarter of 2015 was 54.8%.
Conference Call
F.N.B. Corporation will host a conference call to discuss first quarter 2015 financial results on Thursday, April 23, 2015, at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (866) 652-5200 or (412) 317-6060 for international callers. Participants should ask to be joined into the F.N.B. Corporation call. The Webcast and presentation materials may be accessed through the "Shareholder and Investor Relations" section of the Corporation's Web site at www.fnbcorporation.com.
A replay of the call will be available shortly after the completion of the call on the day of the call until midnight ET on Thursday, April 30, 2015. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10062662. Following the call, a transcript of the call and the related presentation materials will be posted to 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,including 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 $16.3 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.
Non-GAAP Financial Measures
F.N.B. Corporation uses certain non-GAAP financial measures, such as operating net income available to common shareholders, operating net income per diluted common share, tangible book value per common share, tangible common equity to tangible assets ratio and capital ratios defined by banking regulators, to 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. Reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures are included in the tables at the end of this release under the caption "Reconciliation of Non-GAAP Financial Measures."
Cautionary Statement Regarding Forward-looking Information
We make statements in this press release and the related conference call, and may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, capital levels, liquidity levels, asset levels, asset quality and other matters regarding or affecting F.N.B. Corporation and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance.
Our forward-looking statements are subject to the following principal risks and uncertainties:
-- Our businesses, financial results and balance sheet values are affected
by business and economic conditions, including the following:
-- Changes in interest rates and valuations in debt, equity and other
financial markets.
-- Disruptions in the liquidity and other functioning of U.S. and
global financial markets.
-- The impact of federal regulatory agencies that have oversight or
review of F.N.B. Corporation's business and securities activities.
-- 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 rate of growth in the economy and
employment levels and other economic factors that affect our
liquidity and the performance of our loan portfolio, particularly in
the markets in which we operate.
-- Changes in customer preferences and behavior, whether due to
changing business and economic conditions, legislative and
regulatory initiatives, or other factors.
-- Legal and regulatory developments could affect our ability to operate
our businesses, financial condition, results of operations, competitive
position, reputation, or pursuit of attractive acquisition
opportunities. Reputational impacts could affect matters such as
business generation and retention, liquidity, funding, and ability to
attract and retain management. These developments could include:
-- Changes resulting from legislative and regulatory reforms, including
broad-based restructuring of financial industry regulation; changes
to laws and regulations involving tax, pension, bankruptcy, consumer
protection, and other industry aspects; and changes in accounting
policies and principles. We will continue to be impacted by
extensive reforms provided for in the Dodd-Frank Wall Street Reform
and Consumer Protection Act and otherwise growing out of the recent
financial crisis, the precise nature, extent and timing of which,
and their impact on us, remains uncertain.
-- Results of the regulatory examination and supervisory process.
-- Changes to regulations governing bank capital and liquidity
standards, including 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 our operational or
security systems or infrastructure, or those of third-party vendors
or other service providers, and rapid technological developments and
changes.
-- Business and operating results are affected by judgments and assumptions
in our analytical and forecasting models, our reliance on the advice of
experienced outside advisors and our ability to identify and effectively
manage risks inherent in our businesses, including, where appropriate,
through effective use of third-party insurance, derivatives, swaps, and
capital management techniques, and to meet evolving regulatory capital
standards.
-- As demonstrated by our acquisitions, we grow our business in part by
acquiring, from time to time, other financial services companies,
financial services assets and related deposits. These acquisitions
often present risks and uncertainties, including, the possibility that
the transaction cannot be consummated; regulatory issues; cost or
difficulties involved in integration and conversion of the acquired
businesses after closing; inability to realize expected cost savings,
efficiencies and strategic advantages; the extent of credit losses in
acquired loan portfolios; the extent of deposit attrition; and the
potential dilutive effect to our current shareholders.
-- Competition can have an impact on customer acquisition, growth and
retention and on credit spreads and product pricing, which can affect
market share, deposits and revenues. Industry restructuring in the
current environment could also impact our business and financial
performance through changes in counterparty creditworthiness and
performance, and the competitive and regulatory landscape. Our ability
to anticipate and respond to technological changes can also impact our
ability to respond to customer needs and meet competitive demands.
-- Business and operating results can also be affected by widespread
disasters, dislocations, terrorist activities, cyber-attacks or
international hostilities through their impacts on the economy and
financial markets.
We provide greater detail regarding some of these factors in our 2014 Form 10-K, 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)
1Q15 - 1Q15 -
2015 2014 4Q14 1Q14
----
First Fourth First Percent Percent
Statement of earnings Quarter Quarter Quarter Variance Variance
---------------------
Interest income $133,369 $135,097 $117,880 -1.3 13.1
Interest expense 11,448 11,436 10,055 0.1 13.9
Net interest income 121,921 123,661 107,825 -1.4 13.1
Taxable equivalent
adjustment 1,783 1,696 1,722 5.2 3.6
Net interest income
(FTE) (1) 123,704 125,357 109,547 -1.3 12.9
Provision for credit
losses 8,136 10,040 7,006 -19.0 16.1
Net interest income
after provision (FTE) 115,568 115,317 102,541 0.2 12.7
Service charges 15,817 17,815 15,269 -11.2 3.6
Trust income 5,161 4,871 4,764 5.9 8.3
Insurance commissions
and fees 4,369 3,953 4,945 10.5 -11.6
Securities commissions
and fees 3,057 2,928 2,391 4.4 27.8
Mortgage banking
operations 1,799 1,485 214 21.1 741.7
Gain (loss) on sale of
securities (9) 302 9,461 n/m n/m
Other 7,988 8,108 5,027 -1.5 58.9
Total non-interest
income 38,182 39,462 42,069 -3.2 -9.2
Salaries and employee
benefits 49,269 48,008 47,023 2.6 4.8
Occupancy and equipment 16,624 15,541 15,381 7.0 8.1
FDIC insurance 3,689 3,659 2,994 0.8 23.2
Amortization of
intangibles 2,115 2,518 2,283 -16.0 -7.4
Other real estate owned 909 1,883 779 -51.7 16.6
Merger and severance-
related 0 1,557 7,248 n/m n/m
Other 22,049 23,490 18,457 -6.1 19.5
Total non-interest
expense 94,655 96,656 94,166 -2.1 0.5
Income before income
taxes 59,095 58,123 50,445 1.7 17.1
Taxable equivalent
adjustment 1,783 1,696 1,722 5.2 3.6
Income taxes 16,969 17,123 14,199 -0.9 19.5
Net income 40,343 39,304 34,524 2.6 16.9
Preferred stock
dividends 2,010 2,010 2,322
Net income available to
common stockholders $38,333 $37,294 $32,202 2.8 19.0
======= ======= =======
Earnings per common
share:
Basic $0.22 $0.21 $0.20 4.8 10.0
Diluted $0.22 $0.21 $0.20 4.8 10.0
Non-GAAP Operating
Results:
------------------
Operating net income
available to common
stockholders:
Net income available to
common stockholders 38,333 $37,294 $32,202
Net gain on sale of
pooled TPS and other
securities, net of tax 0 0 (6,150)
Merger and severance
costs, net of tax 0 1,012 4,711
Other net non-recurring
items 0 (1,889) 0
--- ------ ---
Operating net income
available to common
stockholders 38,333 $36,417 $30,763 5.3 24.6
====== ======= =======
Operating diluted
earnings per common
share:
Diluted earnings per
common share $0.22 $0.21 $0.20
Effect of net gain on
sale of pooled TPS and
other securities,
net of tax 0.00 0.00 (0.04)
Effect of merger and
severance costs, net of
tax 0.00 0.01 0.03
Effect of other net non-
recurring items 0.00 (0.01) 0.00
---- ----- ----
Operating diluted
earnings per common
share $0.22 $0.21 $0.19 4.8 15.8
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
1Q15 - 1Q15 -
2015 2014 4Q14 1Q14
----
First Fourth First Percent Percent
Balance Sheet (at period end) Quarter Quarter Quarter Variance Variance
----------------------------
Assets
Cash and due from banks $191,347 $196,240 $221,615 -2.5 -13.7
Interest bearing deposits with banks 42,899 91,153 24,638 -52.9 74.1
------ ------ ------
Cash and cash equivalents 234,246 287,393 246,253 -18.5 -4.9
Securities available for sale 1,537,080 1,534,065 1,274,070 0.2 20.6
Securities held to maturity 1,513,204 1,453,355 1,420,446 4.1 6.5
Residential mortgage loans held for sale 4,621 6,180 3,940 -25.2 17.3
Loans and leases, net of unearned income 11,404,099 11,247,038 9,943,136 1.4 14.7
Allowance for credit losses (128,499) (125,926) (112,219) 2.0 14.5
-------- -------- --------
Net loans and leases 11,275,600 11,121,112 9,830,917 1.4 14.7
Premises and equipment, net 169,859 168,756 165,603 0.7 2.6
Goodwill 829,726 832,213 805,788 -0.3 3.0
Core deposit and other intangible assets, net 45,520 47,504 51,024 -4.2 -10.8
Bank owned life insurance 303,102 301,771 307,872 0.4 -1.5
Other assets 365,890 374,741 370,597 -2.4 -1.3
------- -------
Total Assets $16,278,848 $16,127,090 $14,476,510 0.9 12.5
=========== =========== ===========
Liabilities
Deposits:
Non-interest bearing demand $2,728,599 $2,647,623 $2,353,444 3.1 15.9
Interest bearing demand 4,724,985 4,547,628 4,238,715 3.9 11.5
Savings 1,763,275 1,575,922 1,569,090 11.9 12.4
Certificates and other time deposits 2,589,184 2,611,035 2,777,487 -0.8 -6.8
--------- --------- ---------
Total Deposits 11,806,043 11,382,208 10,938,736 3.7 7.9
Short-term borrowings 1,740,500 2,041,658 1,216,624 -14.8 43.1
Long-term borrowings 541,474 541,443 304,269 0.0 78.0
Other liabilities 135,555 140,325 131,894 -3.4 2.8
------- ------- -------
Total Liabilities 14,223,572 14,105,634 12,591,523 0.8 13.0
Stockholders' Equity
Preferred Stock 106,882 106,882 106,882 0.0 0.0
Common stock 1,763 1,754 1,671 0.6 5.5
Additional paid-in capital 1,805,991 1,798,984 1,697,177 0.4 6.4
Retained earnings 193,461 176,120 133,828 9.8 44.6
Accumulated other comprehensive income (34,980) (46,003) (44,041) -24.0 -20.6
Treasury stock (17,841) (16,281) (10,530) 9.6 69.4
------- -------
Total Stockholders' Equity 2,055,276 2,021,456 1,884,987 1.7 9.0
--------- --------- ---------
Total Liabilities and Stockholders' Equity $16,278,848 $16,127,090 $14,476,510 0.9 12.5
=========== =========== ===========
Selected average balances
-------------------------
Total assets $16,147,232 $15,906,850 $13,989,304 1.5 15.4
Earning assets 14,347,872 14,088,224 12,243,198 1.8 17.2
Interest bearing deposits with banks 75,707 57,976 46,193 30.6 63.9
Securities 2,983,753 2,935,551 2,496,419 1.6 19.5
Residential mortgage loans held for sale 4,833 4,811 4,844 0.5 -0.2
Loans and leases, net of unearned income 11,283,579 11,089,886 9,695,742 1.7 16.4
Allowance for credit losses 128,697 124,300 110,385 3.5 16.6
Goodwill and intangibles 876,196 880,984 835,031 -0.5 4.9
Deposits and customer repurchase agreements (6) 12,362,558 12,392,431 11,339,046 -0.2 9.0
Short-term borrowings 1,053,938 795,857 390,706 32.4 169.8
Long-term borrowings 541,549 541,564 293,942 0.0 84.2
Total stockholders' equity 2,040,261 2,021,493 1,829,601 0.9 11.5
Preferred stockholders' equity 106,882 106,882 106,882 0.0 0.0
Common stock data
-----------------
Average diluted shares outstanding 175,825,976 175,629,620 163,967,246 0.1 7.2
Period end shares outstanding 174,691,702 173,992,258 166,377,327 0.4 5.0
Book value per common share $11.15 $11.00 $10.69 1.4 4.4
Tangible book value per common share (4) $6.18 $5.99 $5.58 3.3 10.8
Dividend payout ratio (common) 54.76% 56.27% 62.16%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
1Q15 - 1Q15 -
2015 2014 4Q14 1Q14
----
First Fourth First Percent Percent
Quarter Quarter Quarter Variance Variance
------- ------- ------- -------- --------
Performance ratios
------------------
Return on average equity 8.02% 7.71% 7.65%
Return on average tangible equity (2) (4) 14.45% 14.16% 14.57%
Return on average tangible common equity (2) (4) 15.13% 14.85% 15.26%
Return on average assets 1.01% 0.98% 1.00%
Return on average tangible assets (3) (4) 1.11% 1.08% 1.11%
Net interest margin (FTE) (1) 3.48% 3.54% 3.62%
Yield on earning assets (FTE) (1) 3.81% 3.86% 3.95%
Cost of interest-bearing liabilities 0.41% 0.41% 0.42%
Cost of funds 0.33% 0.33% 0.34%
Efficiency ratio (FTE) (1) (5) 56.60% 56.05% 58.99%
Effective tax rate 29.61% 30.34% 29.14%
Capital ratios
--------------
Equity / assets (period end) 12.63% 12.53% 13.02%
Leverage ratio 8.19% 8.43% 8.84%
Tangible equity / tangible assets (period end) (4) 7.70% 7.53% 7.60%
Tangible common equity / tangible assets (period end) (4) 7.01% 6.83% 6.81%
Balances at period end
----------------------
Loans and Leases:
-----------------
Commercial real estate $3,817,189 $3,815,708 $3,464,598 0.0 10.2
Commercial and industrial 2,397,731 2,318,015 1,965,065 3.4 22.0
Commercial leases 180,207 177,824 161,494 1.3 11.6
------- ------- -------
Commercial loans and leases 6,395,127 6,311,547 5,591,157 1.3 14.4
Direct installment 1,653,621 1,644,621 1,467,558 0.5 12.7
Residential mortgages 1,299,097 1,263,053 1,135,790 2.9 14.4
Indirect installment 905,204 875,551 678,918 3.4 33.3
Consumer LOC 1,108,418 1,110,976 1,010,501 -0.2 9.7
Other 42,632 41,290 59,212 3.2 -28.0
Total loans and leases $11,404,099 $11,247,038 $9,943,136 1.4 14.7
===========
Deposits:
---------
Non-interest bearing deposits $2,728,599 $2,647,623 $2,353,444 3.1 15.9
Interest bearing demand 4,724,985 4,547,628 4,238,715 3.9 11.5
Savings 1,763,275 1,575,922 1,569,090 11.9 12.4
Certificates of deposit and other time deposits 2,589,184 2,611,035 2,777,487 -0.8 -6.8
Total deposits 11,806,043 11,382,208 10,938,736 3.7 7.9
Customer repurchase agreements (6) 757,279 882,696 787,712 -14.2 -3.9
Total deposits and customer repurchase agreements (6) $12,563,322 $12,264,904 $11,726,448 2.4 7.1
Average balances
----------------
Loans and Leases:
-----------------
Commercial real estate $3,781,741 $3,779,619 $3,341,359 0.1 13.2
Commercial and industrial 2,357,873 2,282,810 1,923,270 3.3 22.6
Commercial leases 177,922 174,379 160,367 2.0 10.9
------- ------- -------
Commercial loans and leases 6,317,536 6,236,808 5,424,996 1.3 16.5
Direct installment 1,647,348 1,614,300 1,466,392 2.0 12.3
Residential mortgages 1,271,336 1,242,479 1,107,349 2.3 14.8
Indirect installment 894,709 846,708 666,012 5.7 34.3
Consumer LOC 1,109,672 1,100,432 987,304 0.8 12.4
Other 42,978 49,159 43,689 -12.6 -1.6
Total loans and leases $11,283,579 $11,089,886 $9,695,742 1.7 16.4
Deposits:
---------
Non-interest bearing deposits $2,637,405 $2,666,600 $2,222,786 -1.1 18.7
Interest bearing demand 4,677,671 4,602,828 4,099,093 1.6 14.1
Savings 1,616,284 1,577,553 1,494,249 2.5 8.2
Certificates of deposit and other time deposits 2,600,551 2,640,227 2,695,067 -1.5 -3.5
Total deposits 11,531,911 11,487,208 10,511,195 0.4 9.7
Customer repurchase agreements (6) 830,647 905,223 827,851 -8.2 0.3
Total deposits and customer repurchase agreements (6) $12,362,558 $12,392,431 $11,339,046 -0.2 9.0
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
1Q15 - 1Q15 -
2015 2014 4Q14 1Q14
----
First Fourth First Percent Percent
Asset Quality Data Quarter Quarter Quarter Variance Variance
------------------
Non-Performing Assets
---------------------
Non-performing loans (7)
Non-accrual loans $45,029 $45,113 $60,039 -0.2 -25.0
Restructured loans 22,022 23,439 19,384 -6.0 13.6
------ ------ ------
Non-performing loans 67,051 68,552 79,423 -2.2 -15.6
Other real estate owned (8) 40,796 41,466 43,216 -1.6 -5.6
------ ------ ------
Total non-performing assets $107,847 $110,018 $122,639 -2.0 -12.1
======== ======== ========
Non-performing loans /total loans
and leases 0.59% 0.61% 0.80%
Non-performing loans /total
originated loans and
and leases (9) 0.68% 0.71% 0.95%
Non-performing loans + OREO /
total loans and
leases + OREO 0.94% 0.97% 1.23%
Non-performing loans + OREO /
total originated
loans and leases + OREO (9) 1.08% 1.13% 1.46%
Non-performing assets /total
assets 0.66% 0.68% 0.85%
Allowance Rollforward
---------------------
Allowance for credit losses
(originated portfolio) (9)
Balance at beginning of period $117,952 $114,569 $104,884 3.0 12.5
Provision for credit losses 9,067 7,478 7,856 21.2 15.4
Net loan charge-offs (5,771) (4,095) (5,617) 40.9 2.7
Allowance for credit losses
(originated portfolio) (9) 121,248 117,952 107,123 2.8 13.2
Allowance for credit losses
(acquired portfolio) (10)
Balance at beginning of period 7,974 6,032 5,900
Provision for credit losses (931) 2,562 (850)
Net loan charge-offs 208 (620) 46
--- ---- ---
Allowance for credit losses
(acquired portfolio) (10) 7,251 7,974 5,096 -9.1 42.3
Total allowance for credit losses $128,499 $125,926 $112,219 2.0 14.5
======== ======== ========
Allowance for credit losses /total
loans and leases 1.13% 1.12% 1.13%
Allowance for credit losses
(originated loans and leases) /
total originated loans and leases
(9) 1.22% 1.22% 1.28%
Allowance for credit losses
(originated loans and leases) /
total non-performing loans (7) 180.83% 172.06% 134.88%
Net loan charge-offs (annualized)
/total average loans
and leases 0.20% 0.17% 0.23%
Net loan charge-offs on originated
loans and leases
(annualized) /total average
originated loans and leases (9) 0.24% 0.17% 0.28%
Delinquency -Originated Portfolio
(9)
---------------------------------
Loans 30-89 days past due $34,042 $41,275 $32,489 -17.5 4.8
Loans 90+ days past due 6,543 9,248 5,467 -29.2 19.7
Non-accrual loans 45,029 45,113 60,039 -0.2 -25.0
------ ------ ------
Total past due and non-accrual
loans $85,614 $95,636 $97,995 -10.5 -12.6
======= ======= =======
Total past due and non-accrual
loans /total originated loans 0.86% 0.99% 1.17%
Memo item:
Delinquency -Acquired Portfolio
(10) (11)
-------------------------------
Loans 30-89 days past due $19,854 $24,678 $34,668 -19.5 -42.7
Loans 90+ days past due 35,906 38,024 61,629 -5.6 -41.7
Non-accrual loans 0 0 0 0.0 0.0
--- --- ---
Total past due and non-accrual
loans $55,760 $62,702 $96,297 -11.1 -42.1
======= ======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per
share data)
2015 2014
---- ----
First Quarter Fourth 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 $75,707 $32 0.17% $57,976 $24 0.17%
Taxable investment securities (12) 2,815,252 14,214 2.02% 2,773,557 14,320 2.07%
Non-taxable investment securities
(13) 168,501 2,116 5.02% 161,994 2,077 5.13%
Residential mortgage loans held for
sale 4,833 63 5.22% 4,811 68 5.62%
Loans and leases (13) (14) 11,283,579 118,727 4.26% 11,089,886 120,304 4.31%
Total Interest Earning Assets (13) 14,347,872 135,152 3.81% 14,088,224 136,793 3.86%
Cash and due from banks 194,598 206,190
Allowance for loan losses (128,697) (124,300)
Premises and equipment 168,586 168,317
Other assets 1,564,873 1,568,419
Total Assets $16,147,232 $15,906,850
Liabilities
Deposits:
Interest-bearing demand $4,677,671 1,894 0.16% $4,602,828 1,881 0.16%
Savings 1,616,284 173 0.04% 1,577,553 171 0.04%
Certificates and other time 2,600,551 5,382 0.84% 2,640,227 5,484 0.82%
Customer repurchase agreements 830,646 456 0.22% 905,222 501 0.22%
Other short-term borrowings 1,053,939 1,312 0.50% 795,858 1,126 0.56%
Long-term borrowings 541,549 2,231 1.67% 541,564 2,273 1.67%
Total Interest Bearing Liabilities
(13) 11,320,640 11,448 0.41% 11,063,252 11,436 0.41%
Non-interest bearing demand
deposits 2,637,405 2,666,600
Other liabilities 148,926 155,505
Total Liabilities 14,106,971 13,885,357
Stockholders' equity 2,040,261 2,021,493
Total Liabilities and Stockholders'
Equity $16,147,232 $15,906,850
Net Interest Earning Assets $3,027,232 $3,024,972
========== ==========
Net Interest Income (FTE) 123,704 125,357
Tax Equivalent Adjustment (1,783) (1,696)
------ ------
Net Interest Income $121,921 $123,661
======== ========
Net Interest Spread 3.40% 3.45%
==== ====
Net Interest Margin (13) 3.48% 3.54%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in
thousands, except
per share data)
2014
----
First Quarter
Interest Average
Average Earned Yield
Outstanding or Paid or Rate
Assets
Interest bearing
deposits with
banks $46,193 $26 0.23%
Taxable investment
securities (12) 2,346,808 12,450 2.13%
Non-taxable
investment
securities (13) 149,611 1,996 5.34%
Residential
mortgage loans
held for sale 4,844 136 11.16%
Loans and leases
(13) (14) 9,695,742 104,994 4.39%
Total Interest
Earning Assets
(13) 12,243,198 119,602 3.95%
Cash and due from
banks 189,619
Allowance for loan
losses (110,385)
Premises and
equipment 160,111
Other assets 1,506,761
Total Assets $13,989,304
Liabilities
Deposits:
Interest-bearing
demand $4,099,093 1,515 0.15%
Savings 1,494,248 172 0.05%
Certificates and
other time 2,695,067 5,462 0.82%
Customer
repurchase
agreements 827,851 462 0.22%
Other short-term
borrowings 390,707 757 0.78%
Long-term
borrowings 293,942 1,687 2.33%
Total Interest
Bearing
Liabilities (13) 9,800,908 10,055 0.42%
Non-interest
bearing demand
deposits 2,222,786
Other liabilities 136,009
Total Liabilities 12,159,703
Stockholders'
equity 1,829,601
Total Liabilities
and Stockholders'
Equity $13,989,304
Net Interest
Earning Assets $2,442,290
==========
Net Interest
Income (FTE) 109,547
Tax Equivalent
Adjustment (1,722)
------
Net Interest
Income $107,825
========
Net Interest
Spread 3.53%
====
Net Interest
Margin (13) 3.62%
====
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
2015 2014
----
First Fourth First
Quarter Quarter Quarter
------- ------- -------
Return on average tangible equity
(2):
---------------------------------
Net income (annualized) $163,614 $155,933 $140,013
Amortization of intangibles, net of
tax (annualized) 5,576 6,495 6,019
----- ----- -----
169,190 162,428 146,032
Average total shareholders' equity 2,040,261 2,021,493 1,829,601
Less: Average intangibles (869,286) (874,159) (827,344)
-------- -------- --------
1,170,975 1,147,334 1,002,257
Return on average tangible equity
(2) 14.45% 14.16% 14.57%
===== ===== =====
Return on average tangible common
equity (2):
---------------------------------
Net income available to common
stockholders (annualized) $155,461 $147,961 $130,597
Amortization of intangibles, net of
tax (annualized) 5,576 6,495 6,019
----- ----- -----
161,037 154,456 136,616
Average total stockholders' equity 2,040,261 2,021,493 1,829,601
Less: Average preferred
stockholders' equity (106,882) (106,882) (106,882)
Less: Average intangibles (869,286) (874,159) (827,344)
-------- -------- --------
1,064,093 1,040,452 895,375
Return on average tangible common
equity (2) 15.13% 14.85% 15.26%
===== ===== =====
Return on average tangible assets
(3):
---------------------------------
Net income (annualized) $163,614 $155,933 $140,013
Amortization of intangibles, net of
tax (annualized) 5,576 6,495 6,019
----- ----- -----
169,190 162,428 146,032
Average total assets 16,147,232 15,906,850 13,989,304
Less: Average intangibles (869,286) (874,159) (827,344)
-------- -------- --------
15,277,946 15,032,691 13,161,960
Return on average tangible assets
(3) 1.11% 1.08% 1.11%
==== ==== ====
Tangible book value per share:
------------------------------
Total shareholders' equity $2,055,276 $2,021,456 $1,884,987
Less: preferred shareholders'
equity (106,882) (106,882) (106,882)
Less: intangibles (868,257) (872,859) (849,563)
-------- -------- --------
1,080,137 1,041,715 928,542
Ending shares outstanding 174,691,702 173,992,258 166,377,327
Tangible book value per share $6.18 $5.99 $5.58
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
2015 2014
----
First Fourth First
Quarter Quarter Quarter
Tangible equity /tangible assets
(period end):
--------------------------------
Total shareholders' equity $2,055,276 $2,021,456 $1,884,987
Less: intangibles (868,257) (872,859) (849,563)
-------- -------- --------
1,187,019 1,148,597 1,035,424
Total assets 16,278,848 16,127,090 14,476,510
Less: intangibles (868,257) (872,859) (849,563)
-------- -------- --------
15,410,591 15,254,231 13,626,947
Tangible equity /tangible assets
(period end) 7.70% 7.53% 7.60%
==== ==== ====
Tangible common equity /tangible
assets (period end):
--------------------------------
Total stockholders' equity $2,055,276 $2,021,456 $1,884,987
Less: preferred stockholders'
equity (106,882) (106,882) (106,882)
Less: intangibles (868,257) (872,859) (849,563)
-------- -------- --------
1,080,137 1,041,715 928,542
Total assets 16,278,848 16,127,090 14,476,510
Less: intangibles (868,257) (872,859) (849,563)
-------- -------- --------
15,410,591 15,254,231 13,626,947
Tangible equity /tangible assets
(period end) 7.01% 6.83% 6.81%
==== ==== ====
(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) Does not
include
loans
acquired at
fair value
("acquired
portfolio").
(8) Includes all
other real
estate
owned,
including
those
balances
acquired
through
business
combinations
that have
been in
acquired
loans prior
to
foreclosure.
(9) "Originated
Portfolio"
or
"Originated
Loans and
Leases"
equals loans
and leases
not included
by
definition
in the
Acquired
Portfolio.
(10) "Acquired
Portfolio"
or "Acquired
Loans"
equals loans
acquired at
fair value,
accounted
for in
accordance
with ASC 805
which was
effective
January 1,
2009. The
risk of
credit loss
on these
loans has
been
considered
by virtue of
the
Corporation's
estimate of
acquisition-
date fair
value and
these loans
are
considered
accruing as
the
Corporation
primarily
recognizes
interest
income
through
accretion of
the
difference
between the
carrying
value of
these loans
and their
expected
cash flows.
Because
acquired
loans are
initially
recorded at
an amount
estimated to
be
collectible,
losses on
such loans,
when
incurred,
are first
applied
against the
non-
accretable
difference
established
in purchase
accounting
and then to
any
allowance
for loan
losses
recognized
subsequent
to
acquisition.
(11) Represents
contractual
balances.
(12) The average
balances and
yields
earned on
taxable
investment
securities
are based on
historical
cost.
(13) The interest
income
amounts are
reflected on
a FTE basis,
which
adjusts for
the tax
benefit of
income on
certain tax-
exempt loans
and
investments
using the
federal
statutory
tax rate of
35% for each
period
presented.
The yields
on earning
assets and
the net
interest
margin are
presented on
an FTE and
annualized
basis. The
rates paid
on interest-
bearing
liabilities
are also
presented on
an
annualized
basis.
(14) Average
balances for
loans
include non-
accrual
loans.
Loans and
leases
consist of
average
total loans
and leases
less average
unearned
income. The
amount of
loan fees
included in
interest
income is
immaterial.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnb-corporation-reports-record-net-income-and-16-increase-in-operating-earnings-per-common-share-300070652.html
SOURCE F.N.B. Corporation
