PITTSBURGH, July 23, 2015 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported second quarter 2015 results. Net income available to common shareholders for the second quarter of 2015 totaled $38.1 million, or $0.22 per diluted common share. Comparatively, second quarter of 2014 net income totaled $32.8 million, or $0.20 per diluted common share, and first quarter of 2015 net income totaled $38.3 million, or $0.22 per diluted common share. Operating results are presented in the table below.
Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "The quarter's high-quality results include another double-digit increase in operating earnings per share. The earnings growth was highlighted by record total revenue of $165 million and further improvement in our efficiency ratio to 56%. The second quarter reflects our ability to generate positive operating leverage, continued strong organic growth in loans and deposits and positive asset quality results."
Quarterly Results Summary 2Q15 1Q15 2Q14 ---- ---- ---- Reported Results Net income available to common shareholders ($ in millions) $38.1 $38.3 $32.8 Net income per diluted common share $0.22 $0.22 $0.20 Operating Results (Non-GAAP) Operating net income available to common shareholders ($ in millions) $38.4 $38.3 $33.4 Operating net income per diluted common share $0.22 $0.22 $0.20 Average Diluted Shares Outstanding (in 000's) 176,362 175,826 167,868 ----------------------- ------- ------- -------
Second 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.)
-- Total revenue was $165.3 million, an increase of $3.4 million, or 2.1%. -- Organic growth in total average loans and leases was $249 million, or 8.8% annualized, with average commercial loan and lease growth of $151 million, or 9.6% annualized, and average consumer loan growth of $93 million, or 7.6% annualized. -- Organic growth in total average deposits and customer repurchase agreements was $217 million, or 7.0% annualized, with average non-interest demand deposit growth of $140 million, or 21.2% annualized. -- The net interest margin was 3.43%, compared to 3.48%. -- The efficiency ratio was 56.0%, improved from both 56.6% in the prior quarter and 57.3% in the second quarter of 2014. -- Credit quality results reflect favorable 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 3 basis points to 1.05% and total originated delinquency was stable at 0.86% at June 30, 2015. Net originated charge-offs were 0.23% annualized of total average originated loans and leases, compared to 0.24% annualized in the first quarter of 2015 and 0.23% annualized in the second quarter of 2014. -- The tangible common equity to tangible assets ratio was 6.93% at June 30, 2015. The tangible book value per share (non-GAAP measure) increased $0.04 to $6.22 at June 30, 2015.
Second Quarter 2015 Results - Comparison to Prior Quarter
(All comparisons refer to the first quarter of 2015, except as noted)
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $125.6 million, increasing $1.9 million, or 1.5%, reflecting strong organic loan growth and one more day in the second quarter. The net interest margin was 3.43%, compared to 3.48% in the prior quarter. Excluding accretable yield adjustments, the second quarter core net interest margin was 3.39%, compared to 3.43%. The net interest margin narrowing reflects lower yields on new loans attributable to the extended low interest rate and competitive environment.
Average loans and leases totaled $11.5 billion, and total average organic loan and lease growth totaled $249 million, or 8.8% annualized. Organic growth in average commercial loans and leases totaled $151 million, or 9.6% annualized, and organic growth in average consumer loans was $93 million, or 7.6% annualized. Commercial and consumer loan growth continued to benefit from an expanded footprint, with solid contributions from both the metropolitan markets of Pittsburgh, Baltimore and Cleveland and the Pennsylvania community markets.
Average deposits and customer repurchase agreements totaled $12.6 billion. On an organic basis, average total deposits and customer repurchase agreements increased $217 million, or 7.0% annualized, led by $140 million of growth in organic average non-interest bearing demand deposits. Average customer repurchase agreements were impacted by a planned migration to a new premium sweep deposit product launched in June, with balances shifting from customer repurchase agreements to premium sweep interest-bearing deposits. On an organic basis, average total transaction deposits and customer repurchase agreements increased $229 million, or 9.4% annualized, reflecting seasonally higher average balances for business deposits and growth in total average savings balances. Total loans as a percentage of deposits and customer repurchase agreements was 92% at June 30, 2015.
Non-Interest Income
Non-interest income totaled $39.8 million, increasing $1.6 million, or 4.1%. The second quarter included continued positive results from mortgage banking, wealth management and higher service charges, which were partially offset by seasonally lower insurance revenue. Mortgage banking results reflect record origination volume, stronger purchase activity and successful cross-selling efforts. Wealth management revenues (trust income and securities commissions) increased $0.8 million, reflecting incremental lift from the Cleveland and Baltimore markets and continued organic growth across the footprint. Non-interest income represents 24% of total revenue, consistent with the prior quarter.
Non-Interest Expense
Non-interest expense totaled $96.5 million, increasing $1.8 million, or 1.9%, reflecting a $1.2 million increase in salaries and benefits due to higher accruals for variable performance-based incentive compensation, $0.7 million higher OREO expense, and higher expense levels for marketing and outside professional services. These items were partially offset by lower FDIC insurance expense and seasonally lower occupancy expense. The efficiency ratio was 56.0%, compared to 56.6%.
Credit Quality
Credit quality metrics reflect a slight improvement in the ratio of non-performing loans and OREO to total loans and leases and OREO of 1 basis point to 0.93% at June 30, 2015, and 3 basis points for the originated portfolio to 1.05%. Delinquency remained stable at 0.86% at June 30, 2015.
Net charge-offs for the second quarter totaled $6.2 million, or 0.22% annualized of total average loans and leases, compared to $5.6 million, or 0.20% annualized. For the originated portfolio, net charge-offs as a percentage of average originated loans and leases were 0.23% annualized, compared to 0.24% annualized. For the originated portfolio, the allowance for credit losses to total originated loans and leases was 1.21%, compared to 1.22%. The ratio of the allowance for credit losses to total loans and leases remained flat at 1.13%. The provision for credit losses increased $0.7 million to $8.9 million, due to the difference in provision related to acquired loans. The ratio of the allowance for credit losses to total non-performing loans increased to 182.0%, compared to 180.8%.
Year-to-Date 2015 Results - Comparison to Prior Year-to-Date Period
(All comparisons refer to the first half 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 $249.3 million, increasing $23.8 million, or 10.6%, primarily due to strong organic growth and the benefit from OBAF and BSCB acquired balances. The net interest margin was 3.46%, compared to 3.61%. Excluding accretable yield adjustments, the core net interest margin was 3.41%, compared to 3.59%. The net interest margin narrowing reflects lower yields on new loans attributable to the extended low interest rate and competitive environment. Average earning assets grew $1.9 billion, or 15.3%, through consistent organic loan growth and the addition of OBAF and BCSB.
Average loans and leases totaled $11.4 billion, representing an increase of $1.5 billion, or 15.2%, reflecting strong organic average loan and lease growth of $1.1 billion, or 11.3%, and the full benefit of loans added with OBAF and BCSB. Average organic commercial loans and leases increased $560 million, or 10.0%, and average organic consumer loans increased $568 million, or 13.2%.
Average deposits and customer repurchase agreements totaled $12.5 billion, an increase of $0.9 billion, or 7.9%, including average organic growth of $471 million, or 4.0%. Organic growth in low-cost transaction deposit accounts and customer repurchase agreements was $738 million, or 8.3%, led by strong organic growth in average non-interest bearing demand deposits of $344 million, or 14.9%.
Non-Interest Income
Non-interest income totaled $77.9 million, decreasing $3.3 million, or 4.1%, with the first half of 2014 including higher gains on the sale of securities of $10.2 million. Excluding securities gains, non-interest income increased $6.9 million, or 9.7%, due to organic growth across several fee-based businesses. Mortgage banking revenues increased $3.2 million due to record high origination volume in 2015 and enhanced business development efforts. Wealth management revenues (trust income and securities commissions) increased $2.2 million, or 14.8%, reflecting organic sales growth and incremental lift from the two metro markets of Baltimore and Cleveland. Customer swap fee revenue increased by $0.7 million, reflecting higher volume due to the increased number of opportunities from the expanded presence in the metro markets.
Non-Interest Expense
Non-interest expense totaled $191.2 million, increasing $4.4 million, or 2.4%. Excluding merger, acquisition and severance costs, non-interest expense increased $12.1 million, or 6.8%, due to the addition of the full operating costs of BCSB and OBAF. The efficiency ratio improved to 56.3% from 58.1%.
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 23 basis points to 0.93%, and for the originated portfolio, the ratio of non-performing loans and OREO to total loans and leases and OREO improved 31 basis points to 1.05%. Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans and leases, improved 27 basis points to 0.86% at June 30, 2015, reflecting an $11.8 million, or 11.9%, reduction in total originated delinquency.
Net charge-offs totaled $11.8 million, or 0.21% annualized of total average loans and leases, compared to $11.4 million, or 0.23% annualized. For the originated portfolio, net charge-offs were $11.6 million, or 0.24% annualized of total average originated loans and leases, compared to $10.5 million, or 0.25% annualized. The ratio of the allowance for credit losses to total originated loans and leases was 1.21% at June 30, 2015, compared to 1.26%, with the change directionally consistent with the performance of the portfolio. The provision for credit losses totaled $17.0 million, compared to $17.4 million in the prior-year period.
Capital Position
The tangible common equity to tangible assets ratio (non-GAAP measure) was 6.93%, compared to 7.01% and 6.73% at March 31, 2015, and June 30, 2014, respectively. The tangible book value per common share (non-GAAP measure) increased to $6.22, from $6.18 and $5.73 at March 31, 2015, and June 30, 2014, respectively. The common dividend payout ratio for the second quarter of 2015 was 55.5%.
Conference Call
F.N.B. Corporation will host a conference call to discuss second quarter 2015 financial results on Thursday, July 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, July 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 10067258. 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. F.N.B. has total assets of $16.6 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. F.N.B. also operates Regency Finance Company, which has more than 70 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee. The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor's SmallCap 600 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation web site at www.fnbcorporation.com.
Non-GAAP Financial Measures
F.N.B. Corporation uses certain non-GAAP financial measures, such as operating net income available to common shareholders, operating net income per diluted common share, net interest income on a fully taxable equivalent (FTE), tangible book value per common share, and the ratio of tangible common equity to tangible assets, in addition to 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 "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, DFAST and Basel III initiatives. -- Impact on business and operating results of any costs associated with obtaining rights in intellectual property, the adequacy of our intellectual property protection in general and our operational or security systems or infrastructure, or those of third-party vendors or other service providers, and rapid technological developments and changes. -- Business and operating results are affected by judgments and assumptions in our analytical and forecasting models, our reliance on the advice of experienced outside advisors and our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of third-party insurance, derivatives, swaps, and capital management techniques, and to meet evolving regulatory capital standards. -- As demonstrated by our acquisitions, we grow our business in part by acquiring, from time to time, other financial services companies, financial services assets and related deposits. These acquisitions often present risks and uncertainties, including, the possibility that the transaction cannot be consummated; regulatory issues; cost or difficulties involved in integration and conversion of the acquired businesses after closing; inability to realize expected cost savings, efficiencies and strategic advantages; the extent of credit losses in acquired loan portfolios; the extent of deposit attrition; and the potential dilutive effect to our current shareholders. -- Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Industry restructuring in the current environment could also impact our business and financial performance through changes in counterparty creditworthiness and performance, and the competitive and regulatory landscape. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands. -- Business and operating results can also be affected by widespread disasters, dislocations, terrorist activities, cyber-attacks or international hostilities through their impacts on the economy and financial markets.
We provide greater detail regarding these and other factors in our 2014 Form 10-K, including the Risk Factors section of that report, and our subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.
DATA SHEETS FOLLOW
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data) 2Q15 - 2Q15 - 2015 2014 1Q15 2Q14 ---- ---- Second First Second Percent Percent Statement of earnings Quarter Quarter Quarter Variance Variance --------------------- ------- Interest income $135,448 $133,369 $124,440 1.6 8.8 Interest expense 11,681 11,448 10,248 2.0 14.0 Net interest income 123,767 121,921 114,192 1.5 8.4 Taxable equivalent adjustment 1,805 1,783 1,691 1.2 6.8 Net interest income (FTE) (1) 125,572 123,704 115,883 1.5 8.4 Provision for credit losses 8,864 8,136 10,405 8.9 -14.8 Net interest income after provision (FTE) 116,708 115,568 105,478 1.0 10.6 Service charges 17,514 15,817 17,441 10.7 0.4 Trust income 5,432 5,161 4,862 5.2 11.7 Insurance commissions and fees 3,559 4,369 3,691 -18.5 -3.6 Securities commissions and fees 3,597 3,057 3,002 17.6 19.8 Mortgage banking operations 2,516 1,799 928 39.9 171.3 Gain (loss) on sale of securities 14 (9) 776 n/m n/m Other 7,120 7,988 8,491 -10.9 -16.2 Total non-interest income 39,752 38,182 39,190 4.1 1.4 Salaries and employee benefits 50,431 49,269 48,465 2.4 4.1 Occupancy and equipment 16,170 16,624 15,245 -2.7 6.1 FDIC insurance 2,783 3,689 3,399 -24.6 -18.1 Amortization of intangibles 1,999 2,115 2,461 -5.5 -18.8 Other real estate owned 1,580 909 922 73.9 71.3 Merger, acquisition and severance-related 371 0 832 n/m n/m Other 23,165 22,049 21,260 5.1 9.0 Total non-interest expense 96,499 94,655 92,584 1.9 4.2 Income before income taxes 59,961 59,095 52,084 1.5 15.1 Taxable equivalent adjustment 1,805 1,783 1,691 1.2 6.8 Income taxes 18,025 16,969 15,562 6.2 15.8 Net income 40,131 40,343 34,831 -0.5 15.2 Preferred stock dividends 2,010 2,010 2,010 Net income available to common stockholders $38,121 $38,333 $32,821 -0.6 16.1 ======= ======= ======= Earnings per common share: Basic $0.22 $0.22 $0.20 0.0 10.0 Diluted $0.22 $0.22 $0.20 0.0 10.0 Non-GAAP Operating Results: --------------------------- Operating net income available to common stockholders: Net income available to common stockholders $38,121 38,333 $32,821 Net gain on sale of pooled TPS and other securities, net of tax 0 0 0 Merger, acquisition and severance costs, net of tax 241 0 541 --- --- --- Operating net income available to common stockholders $38,362 38,333 $33,362 0.1 15.0 ======= ====== ======= Operating diluted earnings per common share: Diluted earnings per common share $0.22 $0.22 $0.20 Effect of net gain on sale of pooled TPS and other securities, net of tax 0.00 0.00 0.00 Effect of merger, acquisition and severance costs, net of tax 0.00 0.00 0.00 ---- ---- ---- Operating diluted earnings per common share $0.22 $0.22 $0.20 0.0 10.0 ===== ===== =====
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data) For the Six Months Ended June 30, Percent -------------- Statement of earnings 2015 2014 Variance --------------------- ---- Interest income $268,817 $242,319 10.9 Interest expense 23,129 20,303 13.9 ------ ------ Net interest income 245,688 222,016 10.7 Taxable equivalent adjustment 3,588 3,413 5.1 ----- ----- Net interest income (FTE) (1) 249,276 225,429 10.6 Provision for credit losses 17,000 17,411 -2.4 ------ Net interest income after provision (FTE) 232,276 208,018 11.7 Service charges 33,331 32,710 1.9 Trust income 10,593 9,625 10.0 Insurance commissions and fees 7,928 8,635 -8.2 Securities commissions and fees 6,654 5,394 23.4 Mortgage banking operations 4,315 1,141 278.1 Gain (loss) on sale of securities 5 10,237 n/m Other 15,108 13,518 11.8 ------ Total non-interest income 77,934 81,260 -4.1 Salaries and employee benefits 99,700 95,489 4.4 Occupancy and equipment 32,794 30,626 7.1 FDIC insurance 6,472 6,392 1.2 Amortization of intangibles 4,114 4,744 -13.3 Other real estate owned 2,489 1,702 46.2 Merger, acquisition and severance-related 371 8,080 n/m Other 45,214 39,718 13.8 Total non-interest expense 191,154 186,751 2.4 Income before income taxes 119,056 102,528 16.1 Taxable equivalent adjustment 3,588 3,413 5.1 Income taxes 34,994 29,761 17.6 ------ ------ Net income 80,474 69,354 16.0 Preferred stock dividends 4,020 4,332 ----- ----- Net income available to common stockholders $76,454 $65,022 17.6 ======= ======= Earnings per common share: Basic $0.44 $0.40 10.0 Diluted $0.43 $0.39 10.3 Non-GAAP Operating Results: --------------------------- Operating net income available to common stockholders: Net income available to common stockholders $76,454 $65,022 Net gain on sale of pooled TPS and other securities, net of tax 0 (6,150) Merger, acquisition and severance costs, net of tax 241 5,252 --- ----- Operating net income available to common stockholders $76,695 $64,125 19.6 ======= ======= Operating diluted earnings per common share: Diluted earnings per common share $0.43 $0.39 Effect of net gain on sale of pooled TPS and other securities, net of tax 0.00 (0.04) Effect of merger, acquisition and severance costs, net of tax 0.00 0.03 ---- ---- Operating diluted earnings per common share $0.44 $0.39 13.2 ===== =====
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) 2Q15 - 2Q15 - 2015 2014 1Q15 2Q14 ---- ---- Second First Second Percent Percent Balance Sheet (at period end) Quarter Quarter Quarter Variance Variance ---------------------------- ------- Assets Cash and due from banks $196,189 $191,347 $250,954 2.5 -21.8 Interest bearing deposits with banks 41,290 42,899 19,766 -3.8 108.9 ------ ------ ------ Cash and cash equivalents 237,479 234,246 270,720 1.4 -12.3 Securities available for sale 1,618,620 1,537,080 1,384,273 5.3 16.9 Securities held to maturity 1,518,060 1,513,204 1,427,852 0.3 6.3 Residential mortgage loans held for sale 6,711 4,621 2,705 45.2 148.1 Loans and leases, net of unearned income 11,626,787 11,404,099 10,333,873 2.0 12.5 Allowance for credit losses (131,141) (128,499) (116,748) 2.1 12.3 -------- -------- -------- Net loans and leases 11,495,646 11,275,600 10,217,125 2.0 12.5 Premises and equipment, net 167,010 169,859 162,383 -1.7 2.8 Goodwill 831,333 829,726 805,514 0.2 3.2 Core deposit and other intangible assets, net 45,057 45,520 48,292 -1.0 -6.7 Bank owned life insurance 304,318 303,102 309,750 0.4 -1.8 Other assets 374,367 365,890 390,633 2.3 -4.2 ------- Total Assets $16,598,601 $16,278,848 $15,019,247 2.0 10.5 =========== =========== =========== Liabilities Deposits: Non-interest bearing demand $2,813,488 $2,728,599 $2,429,120 3.1 15.8 Interest bearing demand 5,226,703 4,724,985 4,354,333 10.6 20.0 Savings 1,730,359 1,763,275 1,576,480 -1.9 9.8 Certificates and other time deposits 2,587,577 2,589,184 2,697,837 -0.1 -4.1 --------- --------- --------- Total Deposits 12,358,127 11,806,043 11,057,770 4.7 11.8 Short-term borrowings 1,507,582 1,740,500 1,504,510 -13.4 0.2 Long-term borrowings 542,578 541,474 394,074 0.2 37.7 Other liabilities 124,543 135,555 154,816 -8.1 -19.6 ------- ------- ------- Total Liabilities 14,532,830 14,223,572 13,111,170 2.2 10.8 Stockholders' Equity Preferred Stock 106,882 106,882 106,882 0.0 0.0 Common stock 1,765 1,763 1,673 0.1 5.5 Additional paid-in capital 1,803,347 1,805,991 1,700,220 -0.1 6.1 Retained earnings 210,422 193,461 146,542 8.8 43.6 Accumulated other comprehensive income (43,953) (34,980) (36,559) 25.7 20.2 Treasury stock (12,692) (17,841) (10,681) -28.9 18.8 ------- Total Stockholders' Equity 2,065,771 2,055,276 1,908,077 0.5 8.3 --------- --------- --------- Total Liabilities and Stockholders' Equity $16,598,601 $16,278,848 $15,019,247 2.0 10.5 =========== =========== =========== Selected average balances ------------------------- Total assets $16,457,166 $16,147,232 $14,710,831 1.9 11.9 Earning assets 14,661,142 14,347,872 12,909,262 2.2 13.6 Interest bearing deposits with banks 75,955 75,707 45,725 0.3 66.1 Securities 3,045,009 2,983,753 2,751,703 2.1 10.7 Residential mortgage loans held for sale 8,049 4,833 2,752 66.5 192.4 Loans and leases, net of unearned income 11,532,129 11,283,579 10,109,082 2.2 14.1 Allowance for credit losses 131,431 128,697 113,009 2.1 16.3 Goodwill and intangibles 875,314 876,196 854,760 -0.1 2.4 Deposits and customer repurchase agreements (6) 12,579,811 12,362,558 11,786,281 1.8 6.7 Short-term borrowings 1,127,376 1,053,938 551,633 7.0 104.4 Long-term borrowings 541,992 541,549 325,818 0.1 66.3 Total stockholders' equity 2,066,024 2,040,261 1,900,751 1.3 8.7 Preferred stockholders' equity 106,882 106,882 106,882 0.0 0.0 Common stock data ----------------- Average diluted shares outstanding 176,361,840 175,825,976 167,867,608 0.3 5.1 Period end shares outstanding 175,286,980 174,691,702 166,559,258 0.3 5.2 Book value per common share $11.18 $11.15 $10.81 0.2 3.3 Tangible book value per common share (4) $6.22 $6.18 $5.73 0.6 8.5 Dividend payout ratio (common) 55.51% 54.76% 61.26%
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) For the Six Months Ended June 30, Percent -------------- Balance Sheet (at period end) 2015 2014 Variance ---------------------------- ---- Assets Cash and due from banks $196,189 $250,954 -21.8 Interest bearing deposits with banks 41,290 19,766 108.9 ------ ------ Cash and cash equivalents 237,479 270,720 -12.3 Securities available for sale 1,618,620 1,384,273 16.9 Securities held to maturity 1,518,060 1,427,852 6.3 Residential mortgage loans held for sale 6,711 2,705 148.1 Loans and leases, net of unearned income 11,626,787 10,333,873 12.5 Allowance for credit losses (131,141) (116,748) 12.3 -------- -------- Net loans and leases 11,495,646 10,217,125 12.5 Premises and equipment, net 167,010 162,383 2.8 Goodwill 831,333 805,514 3.2 Core deposit and other intangible assets, net 45,057 48,292 -6.7 Bank owned life insurance 304,318 309,750 -1.8 Other assets 374,367 390,633 -4.2 Total Assets $16,598,601 $15,019,247 10.5 =========== =========== Liabilities Deposits: Non-interest bearing demand $2,813,488 $2,429,120 15.8 Interest bearing demand 5,226,703 4,354,333 20.0 Savings 1,730,359 1,576,480 9.8 Certificates and other time deposits 2,587,577 2,697,837 -4.1 --------- --------- Total Deposits 12,358,127 11,057,770 11.8 Short-term borrowings 1,507,582 1,504,510 0.2 Long-term borrowings 542,578 394,074 37.7 Other liabilities 124,543 154,816 -19.6 ------- ------- Total Liabilities 14,532,830 13,111,170 10.8 Stockholders' Equity Preferred Stock 106,882 106,882 0.0 Common stock 1,765 1,673 5.5 Additional paid-in capital 1,803,347 1,700,220 6.1 Retained earnings 210,422 146,542 43.6 Accumulated other comprehensive income (43,953) (36,559) 20.2 Treasury stock (12,692) (10,681) 18.8 Total Stockholders' Equity 2,065,771 1,908,077 8.3 --------- --------- Total Liabilities and Stockholders' Equity $16,598,601 $15,019,247 10.5 =========== =========== Selected average balances ------------------------- Total assets $16,303,055 $14,352,061 13.6 Earning assets 14,505,373 12,578,070 15.3 Interest bearing deposits with banks 75,832 45,958 65.0 Securities 3,014,550 2,624,766 14.9 Residential mortgage loans held for sale 6,450 3,792 70.1 Loans and leases, net of unearned income 11,408,541 9,903,554 15.2 Allowance for credit losses 130,071 111,704 16.4 Goodwill and intangibles 875,753 844,950 3.6 Deposits and customer repurchase agreements (6) 12,471,785 11,563,899 7.9 Short-term borrowings 1,090,860 471,614 131.3 Long-term borrowings 541,771 309,968 74.8 Total stockholders' equity 2,053,214 1,865,373 10.1 Preferred stockholders' equity 106,882 106,882 0.0 Common stock data ----------------- Average diluted shares outstanding 176,096,195 165,928,360 6.1 Period end shares outstanding 175,286,980 166,559,258 5.2 Book value per common share $11.18 $10.81 3.3 Tangible book value per common share (4) $6.22 $5.73 8.5 Dividend payout ratio (common) 55.13% 61.71%
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) 2Q15 - 2Q15 - 2015 2014 1Q15 2Q14 ---- ---- Second First Second Percent Percent Quarter Quarter Quarter Variance Variance ------- ------- ------- -------- -------- Performance ratios ------------------ Return on average equity 7.79% 8.02% 7.35% Return on average tangible equity (2) (4) 13.87% 14.45% 13.88% Return on average tangible common equity (2) (4) 14.49% 15.13% 14.59% Return on average assets 0.98% 1.01% 0.95% Return on average tangible assets (3) (4) 1.07% 1.11% 1.05% Net interest margin (FTE) (1) 3.43% 3.48% 3.60% Yield on earning assets (FTE) (1) 3.75% 3.81% 3.92% Cost of interest-bearing liabilities 0.41% 0.41% 0.40% Cost of funds 0.33% 0.33% 0.32% Efficiency ratio (FTE) (1) (5) 55.99% 56.60% 57.27% Effective tax rate 30.99% 29.61% 30.88% Capital ratios -------------- Equity / assets (period end) 12.45% 12.63% 12.70% Leverage ratio 8.24% 8.29% 8.44% Tangible equity / tangible assets (period end) (4) 7.61% 7.70% 7.49% Tangible common equity / tangible assets (period end) (4) 6.93% 7.01% 6.73% Balances at period end ---------------------- Loans and Leases: ----------------- Commercial real estate $3,852,607 $3,817,189 $3,577,933 0.9 7.7 Commercial and industrial 2,453,868 2,397,731 2,103,896 2.3 16.6 Commercial leases 190,881 180,207 164,676 5.9 15.9 ------- ------- ------- Commercial loans and leases 6,497,356 6,395,127 5,846,505 1.6 11.1 Direct installment 1,676,349 1,653,621 1,512,149 1.4 10.9 Residential mortgages 1,350,502 1,299,097 1,145,286 4.0 17.9 Indirect installment 942,801 905,204 729,513 4.2 29.2 Consumer LOC 1,118,970 1,108,418 1,037,519 1.0 7.9 Other 40,809 42,632 62,901 -4.3 -35.1 Total loans and leases $11,626,787 $11,404,099 $10,333,873 2.0 12.5 =========== =========== =========== Deposits: --------- Non-interest bearing deposits $2,813,488 $2,728,599 $2,429,120 3.1 15.8 Interest bearing demand 5,226,703 4,724,985 4,354,333 10.6 20.0 Savings 1,730,359 1,763,275 1,576,480 -1.9 9.8 Certificates of deposit and other time deposits 2,587,577 2,589,184 2,697,837 -0.1 -4.1 Total deposits 12,358,127 11,806,043 11,057,770 4.7 11.8 Customer repurchase agreements (6) 212,380 757,279 751,066 -72.0 -71.7 Total deposits and customer repurchase agreements (6) $12,570,507 $12,563,322 $11,808,836 0.1 6.5 Average balances ---------------- Loans and Leases: ----------------- Commercial real estate $3,855,761 $3,781,741 $3,515,115 2.0 9.7 Commercial and industrial 2,425,800 2,357,873 2,034,481 2.9 19.2 Commercial leases 186,918 177,922 163,720 5.1 14.2 ------- ------- ------- Commercial loans and leases 6,468,479 6,317,536 5,713,316 2.4 13.2 Direct installment 1,665,245 1,647,348 1,484,698 1.1 12.2 Residential mortgages 1,313,181 1,271,336 1,134,820 3.3 15.7 Indirect installment 924,463 894,709 702,257 3.3 31.6 Consumer LOC 1,113,621 1,109,672 1,023,963 0.4 8.8 Other 47,140 42,978 50,028 9.7 -5.8 Total loans and leases $11,532,129 $11,283,579 $10,109,082 2.2 14.1 Deposits: --------- Non-interest bearing deposits $2,776,955 $2,637,405 $2,374,516 5.3 16.9 Interest bearing demand 4,746,091 4,677,671 4,301,667 1.5 10.3 Savings 1,744,837 1,616,284 1,575,453 8.0 10.8 Certificates of deposit and other time deposits 2,588,778 2,600,551 2,736,294 -0.5 -5.4 Total deposits 11,856,661 11,531,911 10,987,930 2.8 7.9 Customer repurchase agreements (6) 723,150 830,647 798,351 -12.9 -9.4 Total deposits and customer repurchase agreements (6) $12,579,811 $12,362,558 $11,786,281 1.8 6.7 =========== =========== ===========
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) For the Six Months Ended June 30, Percent -------------- 2015 2014 Variance ---- ---- -------- Performance ratios ------------------ Return on average equity 7.90% 7.50% Return on average tangible equity (2) (4) 14.16% 14.21% Return on average tangible common equity (2) (4) 14.81% 14.91% Return on average assets 1.00% 0.97% Return on average tangible assets (3) (4) 1.09% 1.08% Net interest margin (FTE) (1) 3.46% 3.61% Yield on earning assets (FTE) (1) 3.78% 3.93% Cost of interest-bearing liabilities 0.41% 0.41% Cost of funds 0.33% 0.33% Efficiency ratio (FTE) (1) (5) 56.29% 58.10% Effective tax rate 30.31% 30.03% Capital ratios -------------- Equity / assets (period end) 12.45% 12.70% Leverage ratio 8.24% 8.44% Tangible equity / tangible assets (period end) (4) 7.61% 7.49% Tangible common equity / tangible assets (period end) (4) 6.93% 6.73% Balances at period end ---------------------- Loans and Leases: ----------------- Commercial real estate $3,852,607 $3,577,933 7.7 Commercial and industrial 2,453,868 2,103,896 16.6 Commercial leases 190,881 164,676 15.9 ------- ------- Commercial loans and leases 6,497,356 5,846,505 11.1 Direct installment 1,676,349 1,512,149 10.9 Residential mortgages 1,350,502 1,145,286 17.9 Indirect installment 942,801 729,513 29.2 Consumer LOC 1,118,970 1,037,519 7.9 Other 40,809 62,901 -35.1 Total loans and leases $11,626,787 $10,333,873 12.5 Deposits: --------- Non-interest bearing deposits $2,813,488 $2,429,120 15.8 Interest bearing demand 5,226,703 4,354,333 20.0 Savings 1,730,359 1,576,480 9.8 Certificates of deposit and other time deposits 2,587,577 2,697,837 -4.1 Total deposits 12,358,127 11,057,770 11.8 Customer repurchase agreements (6) 212,380 751,066 -71.7 Total deposits and customer repurchase agreements (6) $12,570,507 $11,808,836 6.5 Average balances ---------------- Loans and Leases: ----------------- Commercial real estate $3,821,108 $3,424,421 11.6 Commercial and industrial 2,389,871 1,983,478 20.5 Commercial leases 182,445 162,053 12.6 ------- ------- Commercial loans and leases 6,393,424 5,569,952 14.8 Direct installment 1,656,346 1,475,595 12.2 Residential mortgages 1,292,374 1,121,161 15.3 Indirect installment 909,668 684,235 32.9 Consumer LOC 1,111,657 1,005,735 10.5 Other 45,072 46,876 -3.8 Total loans and leases $11,408,541 $9,903,554 15.2 Deposits: --------- Non-interest bearing deposits $2,707,566 $2,299,070 17.8 Interest bearing demand 4,712,070 4,200,940 12.2 Savings 1,680,916 1,535,075 9.5 Certificates of deposit and other time deposits 2,594,632 2,715,794 -4.5 Total deposits 11,695,184 10,750,879 8.8 Customer repurchase agreements (6) 776,601 813,020 -4.5 Total deposits and customer repurchase agreements (6) $12,471,785 $11,563,899 7.9 =========== ===========
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) 2Q15 - 2Q15 - 2015 2014 1Q15 2Q14 ---- ---- Second First Second Percent Percent Asset Quality Data Quarter Quarter Quarter Variance Variance ------------------ ------- Non-Performing Assets --------------------- Non-performing loans (7) Non-accrual loans $45,332 $45,029 $59,549 0.7 -23.9 Restructured loans 22,916 22,022 20,485 4.1 11.9 ------ ------ ------ Non-performing loans 68,248 67,051 80,034 1.8 -14.7 Other real estate owned (8) 40,190 40,796 40,268 -1.5 -0.2 ------ ------ ------ Total non-performing assets $108,438 $107,847 $120,302 0.5 -9.9 ======== ======== ======== Non-performing loans / total loans and leases 0.59% 0.59% 0.77% Non-performing loans / total originated loans and and leases (9) 0.67% 0.68% 0.91% Non-performing loans + OREO / total loans and leases + OREO 0.93% 0.94% 1.16% Non-performing loans + OREO / total originated loans and leases + OREO (9) 1.05% 1.08% 1.36% Non-performing assets / total assets 0.65% 0.66% 0.80% Allowance Rollforward --------------------- Allowance for credit losses (originated portfolio) (9) Balance at beginning of period $121,248 $117,952 $107,123 2.8 13.2 Provision for credit losses 8,743 9,067 8,900 -3.6 -1.8 Net loan charge-offs (5,795) (5,771) (4,835) 0.4 19.9 Allowance for credit losses (originated portfolio) (9) 124,196 121,248 111,188 2.4 11.7 Allowance for credit losses (acquired portfolio) (10) Balance at beginning of period 7,251 7,974 5,096 Provision for credit losses 121 (931) 1,505 Net loan charge-offs (427) 208 (1,041) ---- --- ------ Allowance for credit losses (acquired portfolio) (10) 6,945 7,251 5,560 -4.2 24.9 Total allowance for credit losses $131,141 $128,499 $116,748 2.1 12.3 ======== ======== ======== Allowance for credit losses / total loans and leases 1.13% 1.13% 1.13% Allowance for credit losses (originated loans and leases) / total originated loans and leases (9) 1.21% 1.22% 1.26% Allowance for credit losses (originated loans and leases) / total non-performing loans (7) 181.98% 180.83% 138.93% Net loan charge-offs (annualized) / total average loans and leases 0.22% 0.20% 0.23% Net loan charge-offs on originated loans and leases (annualized) / total average originated loans and leases (9) 0.23% 0.24% 0.23% Delinquency - Originated Portfolio (9) ------------------------------------- Loans 30-89 days past due $36,581 $34,042 $33,821 7.5 8.2 Loans 90+ days past due 5,917 6,543 6,282 -9.6 -5.8 Non-accrual loans 45,332 45,029 59,549 0.7 -23.9 ------ ------ ------ Total past due and non-accrual loans $87,830 $85,614 $99,652 2.6 -11.9 ======= ======= ======= Total past due and non-accrual loans / total originated loans 0.86% 0.86% 1.13% Memo item: Delinquency - Acquired Portfolio (10) (11) ----------------------------------------- Loans 30-89 days past due $20,838 $19,854 $30,657 5.0 -32.0 Loans 90+ days past due 30,154 35,906 58,636 -16.0 -48.6 Non-accrual loans 0 0 0 0.0 0.0 --- --- --- Total past due and non-accrual loans $50,992 $55,760 $89,293 -8.6 -42.9 ======= ======= =======
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) For the Six Months Ended June 30, Percent -------------- Asset Quality Data 2015 2014 Variance ------------------ ---- Non-Performing Assets --------------------- Non-performing loans (7) Non-accrual loans $45,332 $59,549 -23.9 Restructured loans 22,916 20,485 11.9 Non-performing loans 68,248 80,034 -14.7 Other real estate owned (8) 40,190 40,268 -0.2 Total non-performing assets $108,438 $120,302 -9.9 Non-performing loans / total loans and leases 0.59% 0.77% Non-performing loans / total originated loans and and leases (9) 0.67% 0.91% Non-performing loans + OREO / total loans and leases + OREO 0.93% 1.16% Non-performing loans + OREO / total originated loans and leases + OREO (9) 1.05% 1.36% Non-performing assets / total assets 0.65% 0.80% Allowance Rollforward --------------------- Allowance for credit losses (originated portfolio) (9) Balance at beginning of period $117,952 $104,884 12.5 Provision for credit losses 17,810 16,756 6.3 Net loan charge-offs (11,566) (10,452) 10.7 Allowance for credit losses (originated portfolio) (9) 124,196 111,188 11.7 Allowance for credit losses (acquired portfolio) (10) Balance at beginning of period 7,974 5,900 Provision for credit losses (810) 655 Net loan charge-offs (219) (995) ---- ---- Allowance for credit losses (acquired portfolio) (10) 6,945 5,560 24.9 Total allowance for credit losses $131,141 $116,748 12.3 ======== ======== Allowance for credit losses / total loans and leases 1.13% 1.13% Allowance for credit losses (originated loans and leases) / total originated loans and leases (9) 1.21% 1.26% Allowance for credit losses (originated loans and leases) / total non-performing loans (7) 181.98% 138.93% Net loan charge-offs (annualized) / total average loans and leases 0.21% 0.23% Net loan charge-offs on originated loans and leases (annualized) / total average originated loans and leases (9) 0.24% 0.25% Delinquency - Originated Portfolio (9) ------------------------------------- Loans 30-89 days past due $36,581 $33,821 8.2 Loans 90+ days past due 5,917 6,282 -5.8 Non-accrual loans 45,332 59,549 -23.9 Total past due and non-accrual loans $87,830 $99,652 -11.9 ======= ======= Total past due and non-accrual loans / total originated loans 0.86% 1.13% Memo item: Delinquency - Acquired Portfolio (10) (11) ----------------------------------------- Loans 30-89 days past due $20,838 $30,657 -32.0 Loans 90+ days past due 30,154 58,636 -48.6 Non-accrual loans 0 0 0.0 Total past due and non-accrual loans $50,992 $89,293 -42.9 ======= =======
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data) 2015 ---- Second Quarter First 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 $75,955 $28 0.15% $75,707 $32 0.17% Taxable investment securities (12) 2,855,637 14,467 2.03% 2,815,252 14,214 2.02% Non-taxable investment securities (13) 189,372 2,283 4.82% 168,501 2,116 5.02% Residential mortgage loans held for sale 8,049 119 5.93% 4,833 63 5.22% Loans and leases (13) (14) 11,532,129 120,356 4.19% 11,283,579 118,727 4.26% Total Interest Earning Assets (13) 14,661,142 137,253 3.75% 14,347,872 135,152 3.81% Cash and due from banks 192,987 194,598 Allowance for loan losses (131,431) (128,697) Premises and equipment 169,098 168,586 Other assets 1,565,370 1,564,873 Total Assets $16,457,166 $16,147,232 Liabilities Deposits: Interest-bearing demand $4,746,091 1,946 0.16% $4,677,671 1,894 0.16% Savings 1,744,837 193 0.04% 1,616,284 173 0.04% Certificates and other time 2,588,778 5,497 0.85% 2,600,551 5,382 0.84% Customer repurchase agreements 723,150 391 0.21% 830,646 456 0.22% Other short-term borrowings 1,127,376 1,403 0.50% 1,053,939 1,312 0.50% Long-term borrowings 541,992 2,251 1.67% 541,549 2,231 1.67% Total Interest Bearing Liabilities (13) 11,472,224 11,681 0.41% 11,320,640 11,448 0.41% Non-interest bearing demand deposits 2,776,955 2,637,405 Other liabilities 141,963 148,926 Total Liabilities 14,391,142 14,106,971 Stockholders' equity 2,066,024 2,040,261 Total Liabilities and Stockholders' Equity $16,457,166 $16,147,232 Net Interest Earning Assets $3,188,918 $3,027,232 ========== ========== Net Interest Income (FTE) 125,572 123,704 Tax Equivalent Adjustment (1,805) (1,783) ------ ------ Net Interest Income $123,767 $121,921 ======== ======== Net Interest Spread 3.34% 3.40% ==== ==== Net Interest Margin (13) 3.43% 3.48% ==== ====
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data) 2014 ---- Second Quarter Interest Average Average Earned Yield Outstanding or Paid or Rate Assets Interest bearing deposits with banks $45,725 $21 0.18% Taxable investment securities (12) 2,600,855 13,578 2.09% Non-taxable investment securities (13) 150,848 1,987 5.27% Residential mortgage loans held for sale 2,751 90 13.08% Loans and leases (13) (14) 10,109,083 110,455 4.38% Total Interest Earning Assets (13) 12,909,262 126,131 3.92% Cash and due from banks 193,670 Allowance for loan losses (113,009) Premises and equipment 164,063 Other assets 1,556,845 Total Assets $14,710,831 Liabilities Deposits: Interest-bearing demand $4,301,667 1,665 0.16% Savings 1,575,453 182 0.05% Certificates and other time 2,736,294 5,614 0.82% Customer repurchase agreements 798,351 439 0.22% Other short-term borrowings 551,633 894 0.65% Long-term borrowings 325,818 1,454 1.79% Total Interest Bearing Liabilities (13) 10,289,216 10,248 0.40% Non-interest bearing demand deposits 2,374,516 Other liabilities 146,348 Total Liabilities 12,810,080 Stockholders' equity 1,900,751 Total Liabilities and Stockholders' Equity $14,710,831 Net Interest Earning Assets $2,620,046 ========== Net Interest Income (FTE) 115,883 Tax Equivalent Adjustment (1,691) ------ Net Interest Income $114,192 ======== Net Interest Spread 3.52% ==== Net Interest Margin (13) 3.60% ====
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data) For the Six Months Ended June 30, --------------------------------- 2015 2014 Interest Average Interest Average Average Earned Yield Average Earned Yield Outstanding or Paid or Rate Outstanding or Paid or Rate Assets Interest bearing deposits with banks $75,832 $60 0.16% $45,958 $47 0.21% Taxable investment securities (12) 2,835,555 28,680 2.02% 2,474,533 26,028 2.11% Non-taxable investment securities (13) 178,995 4,400 4.92% 150,233 3,983 5.30% Residential mortgage loans held for sale 6,450 182 5.66% 3,792 225 11.88% Loans and leases (13) (14) 11,408,541 239,083 4.22% 9,903,554 215,450 4.38% Total Interest Earning Assets (13) 14,505,373 272,405 3.78% 12,578,070 245,733 3.93% ---------- ---------- Cash and due from banks 193,788 191,655 Allowance for loan losses (130,072) (111,704) Premises and equipment 168,844 162,098 Other assets 1,565,122 1,531,942 Total Assets $16,303,055 $14,352,061 Liabilities Deposits: Interest-bearing demand $4,712,070 3,842 0.16% $4,200,940 3,180 0.15% Savings 1,680,916 365 0.04% 1,535,075 353 0.05% Certificates and other time 2,594,632 10,878 0.85% 2,715,794 11,077 0.82% Customer repurchase agreements 776,601 847 0.22% 813,020 902 0.22% Other short-term borrowings 1,090,860 2,715 0.50% 471,614 1,650 0.70% Long-term borrowings 541,771 4,482 1.67% 309,968 3,141 2.04% Total Interest Bearing Liabilities (13) 11,396,850 23,129 0.41% 10,046,411 20,303 0.41% Non-interest bearing demand deposits 2,707,566 2,299,070 Other liabilities 145,425 141,207 Total Liabilities 14,249,841 12,486,688 Stockholders' equity 2,053,214 1,865,373 Total Liabilities and Stockholders' Equity $16,303,055 $14,352,061 Net Interest Earning Assets $3,108,523 $2,531,659 ========== ========== Net Interest Income (FTE) 249,276 225,430 Tax Equivalent Adjustment (3,588) (3,413) ------ ------ Net Interest Income $245,688 $222,017 ======== ======== Net Interest Spread 3.37% 3.52% ==== ==== Net Interest Margin (13) 3.46% 3.61% ==== ====
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data) NON-GAAP FINANCIAL MEASURES --------------------------- We believe the following non-GAAP financial measures used by F.N.B. Corporation provide information useful to investors in understanding F.N.B. Corporation's operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation's peers. The non-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, F.N.B. Corporation's reported results prepared in accordance with U.S. GAAP. The following tables summarize the non-GAAP financial measures included in this press release and derived from amounts reported in F.N.B. Corporation's financial statements. 2015 2014 ---- ---- Second First Second Quarter Quarter Quarter ------- ------- ------- Return on average tangible equity (2): -------------------------------------- Net income (annualized) $160,966 $163,614 $139,709 Amortization of intangibles, net of tax (annualized) 5,212 5,576 6,416 ----- ----- ----- 166,178 169,190 146,125 Average total shareholders' equity 2,066,024 2,040,261 1,900,751 Less: Average intangibles (868,133) (869,286) (847,815) -------- -------- -------- 1,197,891 1,170,975 1,052,936 Return on average tangible equity (2) 13.87% 14.45% 13.88% ===== ===== ===== Return on average tangible common equity (2): --------------------------------------------- Net income available to common stockholders (annualized) $152,903 $155,461 $131,646 Amortization of intangibles, net of tax (annualized) 5,212 5,576 6,416 ----- ----- ----- 158,115 161,037 138,062 Average total stockholders' equity 2,066,024 2,040,261 1,900,751 Less: Average preferred stockholders' equity (106,882) (106,882) (106,882) Less: Average intangibles (868,133) (869,286) (847,815) -------- -------- -------- 1,091,009 1,064,093 946,054 Return on average tangible common equity (2) 14.49% 15.13% 14.59% ===== ===== ===== Return on average tangible assets (3): -------------------------------------- Net income (annualized) $160,966 $163,614 $139,709 Amortization of intangibles, net of tax (annualized) 5,212 5,576 6,416 ----- ----- ----- 166,178 169,190 146,125 Average total assets 16,457,166 16,147,232 14,710,831 Less: Average intangibles (868,133) (869,286) (847,815) -------- -------- -------- 15,589,033 15,277,946 13,863,016 Return on average tangible assets (3) 1.07% 1.11% 1.05% ==== ==== ==== Tangible book value per share: ------------------------------ Total shareholders' equity $2,065,771 $2,055,276 $1,908,077 Less: preferred shareholders' equity (106,882) (106,882) (106,882) Less: intangibles (869,052) (868,257) (846,830) -------- -------- -------- 1,089,837 1,080,137 954,365 Ending shares outstanding 175,286,980 174,691,702 166,559,258 Tangible book value per share $6.22 $6.18 $5.73 ===== ===== =====
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data) For the Six Months Ended June 30, -------------- 2015 2014 ---- ---- Return on average tangible equity (2): --------------------------------- Net income (annualized) $162,283 $139,858 Amortization of intangibles, net of tax (annualized) 5,392 6,219 ----- ----- 167,675 146,077 Average total shareholders' equity 2,053,214 1,865,373 Less: Average intangibles (868,707) (837,636) -------- -------- 1,184,507 1,027,737 Return on average tangible equity (2) 14.16% 14.21% ===== ===== Return on average tangible common equity (2): --------------------------------- Net income available to common stockholders (annualized) $154,175 $131,122 Amortization of intangibles, net of tax (annualized) 5,392 6,219 ----- ----- 159,567 137,341 Average total stockholders' equity 2,053,214 1,865,373 Less: Average preferred stockholders' equity (106,882) (106,882) Less: Average intangibles (868,707) (837,636) -------- -------- 1,077,625 920,855 Return on average tangible common equity (2) 14.81% 14.91% ===== ===== Return on average tangible assets (3): --------------------------------- Net income (annualized) $162,283 $139,858 Amortization of intangibles, net of tax (annualized) 5,392 6,219 ----- ----- 167,675 146,077 Average total assets 16,303,055 14,352,061 Less: Average intangibles (868,707) (837,636) -------- -------- 15,434,348 13,514,425 Return on average tangible assets (3) 1.09% 1.08% ==== ==== Tangible book value per share: ------------------------------ Total shareholders' equity $2,065,771 $1,908,077 Less: preferred shareholders' equity (106,882) (106,882) Less: intangibles (869,052) (846,830) -------- -------- 1,089,837 954,365 Ending shares outstanding 175,286,980 166,559,258 Tangible book value per share $6.22 $5.73 ===== =====
F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) 2015 2014 ---- ---- Second First Second Quarter Quarter Quarter ------- Tangible equity / tangible assets (period end): ----------------------------------------------- Total shareholders' equity $2,065,771 $2,055,276 $1,908,077 Less: intangibles (869,052) (868,257) (846,830) -------- -------- -------- 1,196,719 1,187,019 1,061,247 Total assets 16,598,601 16,278,848 15,019,247 Less: intangibles (869,052) (868,257) (846,830) -------- -------- -------- 15,729,549 15,410,591 14,172,417 Tangible equity / tangible assets (period end) 7.61% 7.70% 7.49% ==== ==== ==== Tangible common equity / tangible assets (period end): ------------------------------------------------------ Total stockholders' equity $2,065,771 $2,055,276 $1,908,077 Less: preferred stockholders' equity (106,882) (106,882) (106,882) Less: intangibles (869,052) (868,257) (846,830) -------- -------- -------- 1,089,837 1,080,137 954,365 Total assets 16,598,601 16,278,848 15,019,247 Less: intangibles (869,052) (868,257) (846,830) -------- -------- -------- 15,729,549 15,410,591 14,172,417 Tangible equity / tangible assets (period end) 6.93% 7.01% 6.73% ==== ==== ====
(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, acquisition and severance costs by the sum of net interest income on a fully taxable equivalent basis plus non-interest income less securities gains. (6) Customer repos are included in short-term borrowings on the balance sheet. (7) Does not include loans acquired at fair value ("acquired portfolio"). (8) Includes all other real estate owned, including those balances acquired through business combinations that have been in acquired loans prior to foreclosure. (9) "Originated Portfolio" or "Originated Loans and Leases" equals loans and leases not included by definition in the Acquired Portfolio. (10) "Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805 which was effective January 1, 2009. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting and then to any allowance for loan losses recognized subsequent to acquisition. (11) Represents contractual balances. (12) The average balances and yields earned on taxable investment securities are based on historical cost. (13) The interest income amounts are reflected on a FTE basis, which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35% for each period presented. The yields on earning assets and the net interest margin are presented on an FTE and annualized basis. The rates paid on interest-bearing liabilities are also presented on an annualized basis. (14) Average balances for loans include non-accrual loans. Loans and leases consist of average total loans and leases less average unearned income. The amount of loan fees included in interest income is immaterial.
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SOURCE F.N.B. Corporation