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F.N.B. CORP (FNB)

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F.N.B. Corporation : Reports First Quarter 2012 Results

04/23/2012 | 04:40pm US/Eastern

HERMITAGE, Pa., April 23, 2012 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported first quarter 2012 financial results. Net income for the first quarter of 2012 was $21.6 million, or $0.15 per diluted share, compared with first quarter of 2011 net income of $17.2 million, or $0.14 per diluted share and fourth quarter of 2011 net income of $23.7 million, or $0.19 per diluted share. The first quarter of 2012 included merger and severance costs of $4.8 million (after-tax), which decreased net income by $0.04 per diluted share, and the first quarter of 2011 included merger and severance costs of $2.7 million (after-tax) which decreased net income by $0.02 per diluted share.

"Results for the first quarter reflect the continuation of several positive key trends for our company and our successful completion of the Parkvale acquisition," said Vincent J. Delie, Jr., President and Chief Executive Officer. "Organic loan growth was achieved for the eleventh consecutive quarter, driven by market share gains in the Pennsylvania commercial portfolio. Growth in relationship-based deposits and customer repurchase agreements also remained strong. Additionally, credit quality results continue to reflect consistent, solid performance. We are pleased with these achievements and the strong momentum we have established."

First Quarter 2012 Highlights

    --  First quarter net income was $0.19 per diluted share, when excluding
        merger and severance costs (non-GAAP measure).
    --  The net interest margin was 3.74%.
    --  Organic loan growth was 5.3% annualized for the Pennsylvania commercial
        portfolio, resulting in the twelfth consecutive linked-quarter growth
        for this portfolio.
    --  Organic transaction deposit and customer repurchase agreement growth was
        8.9% annualized.
    --  The efficiency ratio was 61%.
    --  Net charge-offs totaled $5.1 million or 0.32% annualized of average
        originated loans.
    --  The allowance for loan losses was 1.55% of total originated loans.

Mr. Delie continued, "The Parkvale acquisition closed on January 1, 2012. This strategic acquisition allows us to leverage our existing strength in the Pittsburgh metropolitan area, one of the nation's 25 largest MSA's based on population, where we now hold the number three retail deposit market share position. Our enhanced presence and strengthened position will enable us to build on our past successes achieved in the Pittsburgh market."

F.N.B. Corporation's performance ratios for the first quarter of 2012 were as follows: return on average tangible equity (non-GAAP measure) was 14.65%; return on average equity was 6.42%; return on average tangible assets (non-GAAP measure) was 0.86% and return on average assets was 0.75%. A reconciliation of GAAP measures to non-GAAP measures is included in the tables that accompany this press release.

First Quarter 2012 Results
(All comparisons refer to the fourth quarter of 2011, except as noted)

Net Interest Income

Net interest income on a fully taxable equivalent basis totaled $92.8 million in the first quarter of 2012, increasing 13.1% from $82.1 million in the prior quarter. The first quarter net interest margin of 3.74% narrowed from 3.79% as expected, primarily reflecting the addition of Parkvale Financial Corporation (Parkvale) on January 1, 2012 and the impact of the current low interest rate environment. During the first quarter, continued improvements in the cost of funds largely offset the decline in the yield on earning assets.

Average loans totaled $7.8 billion and increased 13.8% reflecting loans added in the Parkvale acquisition ($925 million) and organic growth. Organic growth was driven by continued market share gains in the Pennsylvania commercial portfolio with these average balances increasing $48.6 million, or 5.3% annualized, the twelfth consecutive linked-quarter of organic growth for this portfolio. First quarter results for consumer loans were impacted by normal seasonally lower demand and elevated levels of pay downs experienced early in the quarter, with total consumer loans (excluding residential mortgages) declining $15.3 million or 3.9% annualized on an organic basis. Recent activity for consumer loans has exhibited increased demand and stronger volumes aided by promotional campaigns for these products resulting in a significantly improved pipeline for consumer loans at the end of the first quarter.

Total average deposits and customer repurchase agreements totaled $9.6 billion and increased 19.3% due to deposits added in the Parkvale acquisition ($1.6 billion) and organic growth. Organic growth in lower cost transaction accounts and customer repurchase agreements continued, increasing $129.5 million, or 8.9% annualized, as a result of new client acquisition and customers holding higher average balances. This growth was partially offset by a continued planned decline in time deposits. As of March 31, 2012, FNB's total customer-based funding was 97.9% of total deposits and borrowings, compared to 96.8%, and loans as a percentage of total deposits and customer repurchase agreements was 79.7%, compared to 86.4%.

Non-Interest Income

Non-interest income totaled $31.7 million in the first quarter of 2012 and decreased 2.6%. Non-interest income excluding gains on the sale of securities increased $2.6 million, or 8.8%, reflecting the addition of Parkvale and improvements in insurance and wealth management revenue. During the first quarter, fee revenue from service charges increased 8.4% primarily as a result of the addition of Parkvale. Insurance commissions and fees increased 23.7% reflecting seasonally higher contingent fee revenue. Wealth management revenue (securities commissions and fees and trust income) increased 11.3% as a result of improved market conditions and the addition of Parkvale.

Non-Interest Expense

Non-interest expense totaled $86.7 million in the first quarter of 2012, increasing $15.1 million, or 21.1%. Contributing to the increase were $7.6 million in merger and severance costs in the first quarter of 2012, partially offset by $3.3 million in FHLB prepayment charges and $0.4 million in merger and severance costs incurred in the fourth quarter of 2011. Excluding these items from each period, non-interest expense increased $11.2 million, or 16.5%, primarily due to the addition of Parkvale's operating costs. Additionally, higher personnel costs reflecting normal seasonal increases in employee benefits also contributed to the increase. The efficiency ratio for the first quarter was 61%.

Credit Quality

"Credit quality metrics reflect consistent, solid performance and our focus on sound risk management practices," remarked Mr. Delie. "We are pleased with the first quarter results. Additionally, the impact of the Parkvale acquired portfolio on overall credit quality was in line with our original estimates."

The provision for loan losses equaled $6.6 million for the first quarter of 2012, a $1.7 million reduction with improvements seen in all portfolios. Net loan charge-offs for the first quarter totaled $5.1 million or 0.32% annualized of average originated loans. The ratio of the allowance for loan losses to total originated loans was 1.55%, consistent with 1.54% for this ratio at December 31, 2011. At March 31, 2012, the ratio of the allowance for loan losses to total loans was 1.31%, compared to 1.47% at December 31, 2011, with the decline reflecting the addition of the Parkvale portfolio. The ratio of non-performing loans and OREO to total originated loans and OREO was 2.22% and increased slightly compared to 2.15% at December 31, 2011, primarily as a result of the addition of $6.1 million in OREO from the Parkvale acquisition. Excluding the addition to OREO related to the acquisition, non-performing loans and OREO to total originated loans and OREO would have improved by two basis points.

The Pennsylvania loan portfolio's credit quality metrics for the first quarter of 2012 continue to reflect very solid performance. The Pennsylvania loan portfolio totaled $7.5 billion at March 31, 2012, representing 96% of the total loan portfolio. Charge-off performance continues to be very good, with net charge-offs for the first quarter totaling $3.7 million or 0.20% annualized of average loans, compared to 0.29% of average loans for the full year of 2011. The portfolio continues to be well reserved, with a 1.31% ratio of the allowance for loan losses to total originated loans, consistent with 1.30% for this ratio at December 31, 2011.

The Florida loan portfolio totaled $135.5 million, decreasing $18.5 million, or 12.0%, primarily reflecting principal payoffs. There were no charge-offs or provisions for loan losses for this portfolio in the first quarter of 2012. This portfolio now represents only 1.7% of the total loan portfolio.

Capital Position

The Corporation's capital levels at March 31, 2012 continue to exceed federal bank regulatory agency "well capitalized" thresholds. The lower levels compared to the prior quarter are the result of the Parkvale acquisition completed on January 1, 2012. The Parkvale acquisition resulted in total consideration of $138 million and a preliminary addition to goodwill of $102 million during the first quarter of 2012.

At March 31, 2012, the estimated total risk-based capital ratio was 12.2% compared to 13.4% at December 31, 2011, the estimated tier 1 risk-based capital ratio was 10.7% compared to 11.8% at December 31, 2011, and the leverage ratio was 8.14% compared to 9.15%. At March 31, 2012 the tangible equity to tangible assets ratio (non-GAAP measure) was 5.82% compared to 6.65% and the tangible book value per share (non-GAAP measure) was $4.59 compared to $4.80.

The dividend payout ratio for the first quarter of 2012 was 78%.

Conference Call

F.N.B. Corporation will host its quarterly conference call to discuss first quarter 2012 financial results on Tuesday, April 24, 2012 at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (800) 967-7141 or (719) 325-2106 for international callers; the confirmation number is 2173145. The audio-only Webcast may be accessed through the "Shareholder and Investor Relations" section of the Corporation's Web site at www.fnbcorporation.com.

A replay of the call will be available from 1:00 p.m. Eastern Time the day of the call until midnight Eastern Time on Tuesday, May 1, 2012. The replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for international callers; the confirmation number is 2173145. The call transcript and Webcast will be available on the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at www.fnbcorporation.com.

About F.N.B. Corporation

F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $11.7 billion. F.N.B. Corporation is a leading provider of commercial and retail banking, leasing, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania, Ohio and West Virginia, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, F.N.B. Capital Corporation, LLC, Regency Finance Company and F.N.B. Commercial Leasing. It also operates consumer finance offices in Kentucky and Tennessee.

Cautionary Statement Regarding Forward-looking Information

We make statements in this news release and related conference call, and may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, capital levels, liquidity levels, asset levels, asset quality and other matters regarding or affecting F.N.B. Corporation and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.

Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance.

Our forward-looking statements are subject to the following principal risks and uncertainties:

    --  Our businesses, financial results and balance sheet values are affected
        by business and economic conditions, including the following:
        --  Changes in interest rates and valuations in debt, equity and other
            financial markets.
        --  Disruptions in the liquidity and other functioning of U.S. and
            global financial markets.
        --  Actions by the Federal Reserve, U.S. Treasury and other government
            agencies, including those that impact money supply and market
            interest rates.
        --  Changes in customers', suppliers' and other counterparties'
            performance and creditworthiness.
        --  Slowing or failure of the current moderate economic recovery.
        --  Continued effects of the aftermath of recessionary conditions and
            uneven spread of positive impacts of recovery on the economy and our
            counterparties, including adverse impacts on levels of unemployment,
            loan utilization rates, delinquencies, defaults and counterparty
            ability to meet credit and other obligations.
        --  Changes in customer preferences and behavior, whether due to
            changing business and economic conditions, legislative and
            regulatory initiatives, or other factors.
    --  Our forward-looking financial statements are subject to the risk that
        economic and financial market conditions will be substantially different
        than we are currently expecting.  These statements are based on our
        current view that the modest economic expansion will persist in 2012 and
        interest rates will remain very low.
    --  Legal and regulatory developments could have an impact on our ability to
        operate our businesses, financial condition, results of operations,
        competitive position, reputation, or pursuit of attractive acquisition
        opportunities.  Reputational impacts could affect matters such as
        business generation and retention, liquidity, funding, and ability to
        attract and retain management.  These developments could include:
        --  Changes resulting from legislative and regulatory reforms, including
            broad-based restructuring of financial industry regulation and
            changes to laws and regulations involving tax, pension, bankruptcy,
            consumer protection, and other industry aspects, and changes in
            accounting policies and principles.  We will continue to be impacted
            by extensive reforms provided for in the Dodd-Frank Wall Street
            Reform and Consumer Protection Act and otherwise growing out of the
            recent financial crisis, the precise nature, extent and timing of
            which, and their impact on us, remains uncertain.
        --  Changes to regulations governing bank capital and liquidity
            standards, including due to the Dodd-Frank Act and to Basel III
            initiatives.
        --  Results of regulatory examination and the supervision process.
        --  Impact on business and operating results of any costs associated
            with obtaining rights in intellectual property claimed by others and
            of adequacy of our intellectual property protection in general.
    --  Business and operating results are affected by our ability to identify
        and effectively manage risks inherent in our businesses, including,
        where appropriate, through effective use of third-party insurance,
        derivatives, swaps, and capital management techniques, and to meet
        evolving regulatory capital standards.  In particular, our results
        currently depend on our ability to manage elevated levels of impacted
        assets.
    --  Our acquisition of Parkvale presents us with risk and uncertainties
        related both to the acquisition transaction itself and its integration
        into F.N.B. Corporation after closing, including:
        --  Anticipated benefits, including cost savings and strategic gains,
            may be significantly harder or take longer to achieve than expected
            or may not be achieved in their entirety as a result of unexpected
            factors or events.
        --  Our ability to achieve anticipated results from this transaction is
            dependent also on the extent of credit losses in the acquired loan
            portfolios and the extent of deposit attrition, in part related to
            the state of the economy and financial markets.  Also, litigation
            and governmental investigations that may be filed or commenced, as a
            result of this transaction or otherwise, could impact the timing or
            realization of anticipated benefits to F.N.B. Corporation.
        --  Full integration of Parkvale's business and operations into F.N.B.
            Corporation, which includes conversion of F.N.B. Corporations'
            different systems and procedures, may take longer than anticipated
            or be more costly than anticipated or have unanticipated adverse
            results relating to Parkvale's existing businesses.
    --  In addition to the Parkvale acquisition, we grow our business in party
        by acquiring from time to time other financial services companies,
        financial services assets and related deposits.  These other
        acquisitions often present risks and uncertainties analogous to those
        presented by the Parkvale transaction.  Acquisition risks include those
        presented by the nature of the business acquired, as well as risks and
        uncertainties related to the acquisition transactions themselves,
        regulatory issues, and the integration of the acquired businesses into
        F.N.B. Corporation after closing.
    --  Competition can have an impact on customer acquisition, growth and
        retention and on credit spreads and product pricing, which can affect
        market share, deposits and revenues.  Industry restructuring in the
        current environment could also impact our business and financial
        performance through changes in counterparty creditworthiness and
        performance and the competitive and regulatory landscape.  Our ability
        to anticipate and respond to technological changes can also impact our
        ability to respond to customer needs and meet competitive demands.
    --  Business and operating results can also be affected by widespread
        disasters, dislocations, terrorist activities or international
        hostilities through impacts on the economy and financial markets
        generally or on us or our counterparties specifically.

We provide greater detail regarding some of these factors in our 2011 Form 10-K and 2011 Form 10-Qs, including Risk Factors and Risk Management sections of those reports, and our subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.

DATA SHEETS FOLLOW

    F.N.B. CORPORATION
    ------------------
    (Unaudited)
    (Dollars in thousands, except per share data)
                                                                                                                     1st Qtr 2012 -        1st Qtr 2012 -
                                                                 2012                 2011  4th Qtr 2011              1st Qtr 2011
                                                   First                Fourth                 First                     Percent               Percent
    Statement of earnings                         Quarter              Quarter                Quarter                   Variance              Variance
    ---------------------
    Interest income                                          $107,287              $96,897                  $97,371                   10.7                  10.2
    Interest expense                                           16,366               16,768                   20,088                   -2.4                 -18.5
       Net interest income                                     90,921               80,129                   77,283                   13.5                  17.6
    Taxable equivalent adjustment                               1,901                1,922                    1,965                   -1.1                  -3.3
       Net interest income (FTE) (1)                           92,822               82,051                   79,248                   13.1                  17.1
    Provision for loan losses                                   6,572                8,289                    8,228                  -20.7                 -20.1
       Net interest income after
        provision (FTE)                                        86,250               73,762                   71,020                   16.9                  21.4

    Impairment losses on securities                                 0                 (422)                       0                    n/m                   n/m
    Non-credit related losses on
     securities not
       expected to be sold (recognized in
        other
       comprehensive income)                                        0                  393                        0                    n/m                   n/m
                                                                  ---                  ---                      ---
    Net impairment losses on
     securities                                                     0                  (29)                       0                    n/m                   n/m

    Service charges                                            17,165               15,833                   14,335                    8.4                  19.7
    Insurance commissions and fees                              4,172                3,373                    4,146                   23.7                   0.6
    Securities commissions and fees                             2,011                1,602                    1,972                   25.5                   2.0
    Trust income                                                3,734                3,560                    3,710                    4.9                   0.7
    Gain on sale of securities                                    108                3,511                       54                  -96.9                 100.8
    Gain on sale of loans                                         809                  968                      767                  -16.4                   5.4
    Other                                                       3,746                3,780                    3,448                   -0.9                   8.6
       Total non-interest income                               31,745               32,598                   28,432                   -2.6                  11.7

    Salaries and employee benefits                             44,606               37,758                   38,382                   18.1                  16.2
    Occupancy and equipment                                    11,792               10,205                   10,385                   15.6                  13.5
    Amortization of intangibles                                 2,281                1,819                    1,796                   25.4                  27.0
    Other real estate owned                                     1,636                  231                    1,579                  607.2                   3.6
    FHLB prepayment penalty                                         0                3,328                        0                    n/m                   n/m
    Other                                                      26,358               18,250                   22,415                   44.4                  17.6
       Total non-interest expense                              86,673               71,591                   74,557                   21.1                  16.2

    Income before income taxes                                 31,322               34,769                   24,895                   -9.9                  25.8
    Taxable equivalent adjustment                               1,901                1,922                    1,965                   -1.1                  -3.3
    Income taxes                                                7,839                9,110                    5,755                  -14.0                  36.2
       Net income                                             $21,582              $23,737                  $17,175                   -9.1                  25.7

    Earnings per share:
       Basic                                                    $0.16                $0.19                    $0.14                  -15.8                  14.3
       Diluted                                                  $0.15                $0.19                    $0.14                  -21.1                   7.1

    Performance ratios
    ------------------
    Return on average equity                                     6.42%                7.72%                    6.17%
    Return on average tangible equity
     (2) (4)                                                    14.65%               15.94%                   13.93%
    Return on average assets                                     0.75%                0.95%                    0.72%
    Return on average tangible assets
     (3) (4)                                                     0.86%                1.06%                    0.82%
    Net interest margin (FTE) (1)                                3.74%                3.79%                    3.81%
    Yield on earning assets (FTE) (1)                            4.40%                4.56%                    4.77%
    Cost of funds                                                0.77%                0.92%                    1.12%
    Efficiency ratio (FTE) (1) (5)                              60.91%               59.27%                   62.31%
    Effective tax rate                                          26.64%               27.73%                   25.10%

    Common stock data
    -----------------
    Average basic shares outstanding                      138,898,581          126,566,483              120,193,233                    9.7                  15.6
    Average diluted shares outstanding                    140,386,625          127,615,744              120,956,346                   10.0                  16.1
    Ending shares outstanding                             139,501,039          127,220,759              120,871,383                    9.7                  15.4
    Book value per share                                        $9.71                $9.51                    $9.34                    2.1                   4.0
    Tangible book value per share (4)                           $4.59                $4.80                    $4.36                   -4.4                   5.3
    Dividend payout ratio                                       78.11%               65.60%                   83.86%


    F.N.B. CORPORATION
    ------------------
    (Unaudited)
    (Dollars in thousands)
                                                                                                                     1st Qtr 2012 -        1st Qtr 2012 -
                                                                 2012                 2011  4th Qtr 2011              1st Qtr 2011
                                                   First                Fourth                 First                     Percent               Percent
    Balance Sheet (at period end)                 Quarter              Quarter                Quarter                   Variance              Variance
    ----------------------------
    Assets
    Cash and due from banks                                  $192,346             $197,349                 $157,568                   -2.5                  22.1
    Interest bearing deposits with
     banks                                                     72,376               11,604                  132,340                  523.7                 -45.3
                                                               ------               ------                  -------
       Cash and cash equivalents                              264,722              208,953                  289,908                   26.7                  -8.7
    Securities available for sale                           1,097,801              640,571                  804,242                   71.4                  36.5
    Securities held to maturity                             1,178,558              917,212                  956,693                   28.5                  23.2
    Residential mortgage loans held
     for sale                                                  11,618               14,275                    6,254                  -18.6                  85.8
    Loans, net of unearned income                           7,802,792            6,856,667                6,559,952                   13.8                  18.9
    Allowance for loan losses                                (102,093)            (100,662)                (107,612)                   1.4                  -5.1
                                                             --------             --------                 --------
       Net loans                                            7,700,699            6,756,005                6,452,340                   14.0                  19.3
    Premises and equipment, net                               146,406              130,043                  125,067                   12.6                  17.1
    Goodwill                                                  670,519              568,462                  565,090                   18.0                  18.7
    Core deposit and other intangible
     assets, net                                               43,657               30,953                   36,385                   41.0                  20.0
    Bank owned life insurance                                 236,753              208,927                  208,720                   13.3                  13.4
    Other assets                                              375,330              311,082                  310,582                   20.7                  20.8
                                                              -------              -------                  -------
    Total Assets                                          $11,726,063           $9,786,483               $9,755,281                   19.8                  20.2
                                                          ===========           ==========               ==========

    Liabilities
    Deposits:
       Non-interest bearing demand                         $1,579,340           $1,340,465               $1,223,720                   17.8                  29.1
       Savings and NOW                                      4,706,748            3,790,863                3,831,735                   24.2                  22.8
       Certificates and other time
        deposits                                            2,769,066            2,158,440                2,334,856                   28.3                  18.6
                                                            ---------            ---------                ---------
          Total Deposits                                    9,055,154            7,289,768                7,390,311                   24.2                  22.5
    Other liabilities                                         144,094              143,239                   94,975                    0.6                  51.7
    Short-term borrowings                                     877,828              851,294                  738,520                    3.1                  18.9
    Long-term debt                                             90,308               88,016                  199,134                    2.6                 -54.6
    Junior subordinated debt                                  203,980              203,967                  203,927                    0.0                   0.0
                                                              -------              -------                  -------
       Total Liabilities                                   10,371,364            8,576,284                8,626,867                   20.9                  20.2

    Stockholders' Equity
    Common stock                                                1,393                1,268                    1,205                    9.8                  15.6
    Additional paid-in capital                              1,363,956            1,224,572                1,154,953                   11.4                  18.1
    Retained earnings                                          37,272               32,925                    9,336                   13.2                 299.2
    Accumulated other comprehensive
     income                                                   (43,735)             (45,148)                 (33,679)                  -3.1                  29.9
    Treasury stock                                             (4,187)              (3,418)                  (3,401)                  22.5                  23.1
                                                               ------               ------                   ------
       Total Stockholders' Equity                           1,354,699            1,210,199                1,128,414                   11.9                  20.1
                                                            ---------            ---------                ---------
    Total Liabilities and
     Stockholders' Equity                                 $11,726,063           $9,786,483               $9,755,281                   19.8                  20.2
                                                          ===========           ==========               ==========

    Selected average balances
    -------------------------
    Total assets                                          $11,563,665           $9,947,884               $9,695,015                   16.2                  19.3
    Earning assets                                          9,970,829            8,619,185                8,409,212                   15.7                  18.6
    Securities                                              2,094,803            1,713,209                1,731,714                   22.3                  21.0
    Interest bearing deposits with
     banks                                                     98,265               69,713                  137,281                   41.0                 -28.4
    Loans, net of unearned income                           7,777,761            6,836,263                6,540,217                   13.8                  18.9
    Allowance for loan losses                                 102,519              109,588                  108,259                   -6.5                  -5.3
    Goodwill and intangibles                                  719,195              599,352                  595,436                   20.0                  20.8
    Deposits and customer repos (6)                         9,600,217            8,048,276                7,916,046                   19.3                  21.3
    Short-term borrowings                                     152,977              171,555                  143,531                  -10.8                   6.6
    Long-term debt                                             92,288              174,220                  199,047                  -47.0                 -53.6
    Trust preferred securities                                201,876              203,960                  203,961                   -1.0                  -1.0
    Shareholders' equity                                    1,352,569            1,219,575                1,129,622                   10.9                  19.7

    Capital ratios
    --------------
    Equity / assets (period end)                                11.55%               12.37%                   11.57%
    Leverage ratio                                               8.14%                9.15%                    8.36%
    Tangible equity /tangible assets
     (period end) (4)                                            5.82%                6.65%                    5.76%
    Tangible equity, excluding AOCI /
     tangible
       assets (period end) (4) (7)                               6.21%                7.14%                    6.12%


    F.N.B. CORPORATION
    ------------------
    (Unaudited)
    (Dollars in thousands)
                                                                                                                     1st Qtr 2012 -        1st Qtr 2012 -
                                                                 2012                 2011  4th Qtr 2011              1st Qtr 2011
                                                   First                Fourth                 First                     Percent               Percent
    Balances at period end                        Quarter              Quarter                Quarter                   Variance              Variance
    ----------------------
    Loans:
    ------
    Commercial real estate                                 $2,521,571           $2,341,646               $2,427,609                    7.7                   3.9
    Commercial real estate - FL                               135,547              154,081                  185,148                  -12.0                 -26.8
    Commercial and industrial                               1,451,144            1,363,692                1,076,910                    6.4                  34.8
    Commercial leases                                         118,050              110,795                   87,916                    6.5                  34.3
                                                              -------              -------                   ------
       Commercial loans and leases                          4,226,312            3,970,214                3,777,583                    6.5                  11.9
    Direct installment                                      1,082,964            1,029,187                1,036,213                    5.2                   4.5
    Residential mortgages                                   1,187,448              670,936                  673,152                   77.0                  76.4
    Indirect installment                                      563,929              540,789                  522,634                    4.3                   7.9
    Consumer LOC                                              704,773              607,280                  511,329                   16.1                  37.8
    Other                                                      37,366               38,261                   39,041                   -2.3                  -4.3
       Total loans                                         $7,802,792           $6,856,667               $6,559,952                   13.8                  18.9

    Deposits:
    ---------
    Non-interest bearing deposits                          $1,579,340           $1,340,465               $1,223,720                   17.8                  29.1
    Savings and NOW                                         4,706,748            3,790,863                3,831,735                   24.2                  22.8
    Certificates of deposit and other
     time deposits                                          2,769,066            2,158,440                2,334,856                   28.3                  18.6
       Total deposits                                       9,055,154            7,289,768                7,390,311                   24.2                  22.5
    Customer repos (6)                                        729,987              646,660                  592,643                   12.9                  23.2
       Total deposits and customer repos
        (6)                                                $9,785,141           $7,936,428               $7,982,954                   23.3                  22.6

    Average balances
    ----------------
    Loans:
    ------
    Commercial real estate                                 $2,509,031           $2,355,663               $2,385,097                    6.5                   5.2
    Commercial real estate - FL                               144,814              165,330                  190,215                  -12.4                 -23.9
    Commercial and industrial                               1,407,418            1,311,648                1,079,251                    7.3                  30.4
    Commercial leases                                         113,235              106,160                   84,196                    6.7                  34.5
                                                              -------              -------                   ------
       Commercial loans and leases                          4,174,499            3,938,800                3,738,759                    6.0                  11.7
    Direct installment                                      1,091,931            1,032,022                1,046,249                    5.8                   4.4
    Residential mortgages                                   1,222,620              691,839                  689,679                   76.7                  77.3
    Indirect installment                                      552,337              538,283                  518,168                    2.6                   6.6
    Consumer LOC                                              695,197              594,070                  507,405                   17.0                  37.0
    Other                                                      41,177               41,249                   39,957                   -0.2                   3.1
       Total loans                                         $7,777,761           $6,836,263               $6,540,217                   13.8                  18.9

    Deposits:
    ---------
    Non-interest bearing deposits                          $1,470,648           $1,339,484               $1,176,031                    9.8                  25.1
    Savings and NOW                                         4,591,590            3,809,265                3,753,938                   20.5                  22.3
    Certificates of deposit and other
     time deposits                                          2,813,898            2,202,129                2,340,149                   27.8                  20.2
       Total deposits                                       8,876,136            7,350,878                7,270,118                   20.7                  22.1
    Customer repos (6)                                        724,081              697,398                  645,928                    3.8                  12.1
       Total deposits and customer repos
        (6)                                                $9,600,217           $8,048,276               $7,916,046                   19.3                  21.3
                                                           ==========           ==========               ==========


    F.N.B. CORPORATION
    ------------------
    (Unaudited)
    (Dollars in thousands)
                                                                                                                     1st Qtr 2012 -        1st Qtr 2012 -
                                                                 2012                 2011  4th Qtr 2011              1st Qtr 2011
                                                   First                Fourth                 First                     Percent               Percent
    Asset Quality Data                            Quarter              Quarter                Quarter                   Variance              Variance
    ------------------
    Non-Performing Assets
    ---------------------
    Non-performing loans (8)
       Non-accrual loans                                      $98,418              $94,335                 $108,080                    4.3                  -8.9
       Restructured loans                                      11,416               11,893                   21,577                   -4.0                 -47.1
                                                               ------               ------                   ------
          Non-performing loans                                109,834              106,228                  129,657                    3.4                 -15.3
    Other real estate owned (9)                                36,958               34,719                   38,101                    6.4                  -3.0
                                                               ------               ------                   ------
       Non-performing loans and OREO                          146,792              140,947                  167,758                    4.1                 -12.5
    Non-performing investments                                  3,478                8,972                    6,204                  -61.2                 -43.9
                                                                -----                -----                    -----
       Total non-performing assets                           $150,270             $149,919                 $173,962                    0.2                 -13.6
                                                             ========             ========                 ========

    Non-performing loans / total loans                           1.41%                1.55%                    1.98%
    Non-performing loans /total
     originated loans (10)                                       1.67%                1.63%                    2.11%
    Non-performing loans + OREO /
     total loans + OREO                                          1.87%                2.05%                    2.54%
    Non-performing loans + OREO /
     total originated
       loans + OREO (10)                                         2.22%                2.15%                    2.71%
    Non-performing assets /total
     assets                                                      1.28%                1.53%                    1.78%

    Allowance Rollforward
    ---------------------
    Allowance for loan losses
     (originated portfolio) (10)
       Balance at beginning of period                        $100,662             $108,813                 $106,120                   -7.5                  -5.1
       Provision for loan losses                                6,572                8,289                    8,228                  -20.7                 -20.1
       Net loan charge-offs                                    (5,141)             (16,440)                  (6,736)                 -68.7                 -23.7
       Allowance for loan losses
        (originated portfolio)                                102,093              100,662                  107,612                    1.4                  -5.1
    Allowance for loan losses
     (acquired portfolio) (11)                                      0                    0                        0                    0.0                   0.0
                                                                  ---                  ---                      ---
       Total allowance for loan losses                       $102,093             $100,662                 $107,612                    1.4                  -5.1
                                                             ========             ========                 ========

    Allowance for loan losses /total
     loans                                                       1.31%                1.47%                    1.64%
    Allowance for loan losses
     (originated loans) /total
       originated loans (10)                                     1.55%                1.54%                    1.75%
    Allowance for loan losses /total
     non-performing loans  (8)                                  92.95%               94.76%                   83.00%

    Net loan charge-offs (annualized)
     /total average loans                                        0.27%                0.95%                    0.42%
    Net loan charge-offs on
     originated loans (annualized) /
       total average originated loans
        (10)                                                     0.32%                1.01%                    0.45%

    Delinquency -Originated Portfolio
     (10)
    ---------------------------------
    Loans 30-89 days past due                                 $28,123              $33,978                  $45,176                  -17.2                 -37.7
    Loans 90+ days past due                                     7,325                7,016                    7,684                    4.4                  -4.7
    Non-accrual loans                                          98,418               94,335                  108,080                    4.3                  -8.9
                                                               ------               ------                  -------
       Total past due and non-accrual
        loans                                                $133,866             $135,329                 $160,940                   -1.1                 -16.8
                                                             ========             ========                 ========

    Total past due and non-accrual
     loans /total originated loans                               2.03%                2.08%                    2.62%

    Memo item:
    Delinquency -Acquired Portfolio
     (11) (12)
    -------------------------------
    Loans 30-89 days past due                                 $20,694              $12,195                  $10,018                   69.7                 106.6
    Loans 90+ days past due                                    40,190               11,115                    8,399                  261.6                 378.5
    Non-accrual loans                                               0                    0                        0                    0.0                   0.0
                                                                  ---                  ---                      ---
       Total past due and non-accrual
        loans                                                 $60,884              $23,310                  $18,417                  161.2                 230.6
                                                              =======              =======                  =======


    F.N.B. CORPORATION
    ------------------
    (Unaudited)
    (Dollars in thousands)
                                                                                                                     1st Qtr 2012 -        1st Qtr 2012 -
                                                                 2012                 2011  4th Qtr 2011              1st Qtr 2011
                                                   First                Fourth                 First                     Percent               Percent
    Supplemental Asset Quality
     Information:                                 Quarter              Quarter                Quarter                   Variance              Variance
    --------------------------
    Portfolio Detail
    ----------------
    Total Loans
    -----------
    Bank - PA                                              $7,509,361           $6,538,730               $6,216,969                   14.8                  20.8
    Bank - FL                                                 135,547              154,081                  185,148                  -12.0                 -26.8
    Regency                                                   157,885              163,856                  157,835                   -3.6                   0.0
                                                              -------              -------                  -------
       Total loans                                         $7,802,792           $6,856,667               $6,559,952                   13.8                  18.9
                                                           ==========           ==========               ==========

    Non-Performing Loans and Other
     Real Estate Owned
    ------------------------------
    Non-performing loans (includes
     non-performing TDRs)
    ------------------------------
    Bank - PA                                                 $63,833              $60,720                  $74,292                    5.1                 -14.1
    Bank - FL                                                  39,021               39,122                   46,701                   -0.3                 -16.4
    Regency                                                     6,980                6,386                    8,664                    9.3                 -19.4
                                                                -----                -----                    -----
       Total non-performing loans                            $109,834             $106,228                 $129,657                    3.4                 -15.3
                                                             ========             ========                 ========

    Other real estate owned
    -----------------------
    Bank - PA                                                 $17,585              $13,216                  $12,044                   33.1                  46.0
    Bank - FL                                                  18,097               19,921                   24,502                   -9.2                 -26.1
    Regency                                                     1,276                1,582                    1,555                  -19.3                 -17.9
                                                                -----                -----                    -----
       Total other real estate owned                          $36,958              $34,719                  $38,101                    6.4                  -3.0
                                                              =======              =======                  =======

    Non-performing loans + OREO
    ---------------------------
    Bank - PA                                                 $81,418              $73,936                  $86,336                   10.1                  -5.7
    Bank - FL                                                  57,118               59,043                   71,203                   -3.3                 -19.8
    Regency                                                     8,256                7,968                   10,219                    3.6                 -19.2
                                                                -----                -----                   ------
       Total non-performing loans + OREO                     $146,792             $140,947                 $167,758                    4.1                 -12.5
                                                             ========             ========                 ========

    Non-Performing Loans + OREO /
     Total Loans + OREO
    -----------------------------
    Bank - PA                                                    1.08%                1.13%                    1.39%
    Bank - FL                                                   37.18%               33.93%                   33.96%
    Regency                                                      5.19%                4.82%                    6.41%
                                                                 ----                 ----                     ----
       Total non-performing loans + OREO
        /total loans + OREO                                      1.87%                2.05%                    2.54%
                                                                 ====                 ====                     ====

    Provision for Loan Losses
    -------------------------
    Bank - PA                                                  $5,406               $4,194                   $5,300                   28.9                   2.0
    Bank - FL                                                       0                2,280                    1,600                 -100.0                -100.0
    Regency                                                     1,166                1,815                    1,328                  -35.8                 -12.2
                                                                -----                -----                    -----
       Total provision for loan losses                         $6,572               $8,289                   $8,228                  -20.7                 -20.1
                                                               ======               ======                   ======

    Net Loan Charge-Offs
    --------------------
    Bank - PA                                                  $3,733               $4,898                   $4,053                  -23.8                  -7.9
    Bank - FL                                                      (9)               9,812                    1,147                 -100.1                -100.8
    Regency                                                     1,417                1,730                    1,536                  -18.1                  -7.7
                                                                -----                -----                    -----
       Total net loan charge-offs                              $5,141              $16,440                   $6,736                  -68.7                 -23.7
                                                               ======              =======                   ======

    Allowance for Loan Losses
    -------------------------
    Bank - PA                                                 $82,507              $80,834                  $83,044                    2.1                  -0.6
    Bank - FL                                                  12,955               12,946                   17,938                    0.1                 -27.8
    Regency                                                     6,631                6,882                    6,630                   -3.6                   0.0
                                                                -----                -----                    -----
       Total allowance for loan losses                       $102,093             $100,662                 $107,612                    1.4                  -5.1
                                                             ========             ========                 ========

    Allowance for Loan Losses /Total
     Loans
    --------------------------------
    Bank - PA                                                    1.10%                1.24%                    1.34%
    Bank - FL                                                    9.56%                8.40%                    9.69%
    Regency                                                      4.20%                4.20%                    4.20%
                                                                 ----                 ----                     ----
       Allowance for loan losses /total
        loans
                                                                 1.31%                1.47%                    1.64%
                                                                 ====                 ====                     ====

    Net Loan Charge-Offs (annualized)
     /Total Average Loans
    ---------------------------------
    Bank - PA                                                    0.20%                0.30%                    0.27%
    Bank - FL                                                   -0.02%               23.55%                    2.45%
    Regency                                                      3.56%                4.21%                    3.90%
                                                                 ----                 ----                     ----
       Net loan charge-offs (annualized)
        /average loans                                           0.27%                0.95%                    0.42%
                                                                 ====                 ====                     ====

    F.N.B. CORPORATION
    ------------------
    (Unaudited)
    (Dollars in thousands)

    NON-GAAP FINANCIAL MEASURES
    ---------------------------
    We believe the following non-GAAP financial measures used by F.N.B.
     Corporation provide information useful to investors in understanding
    F.N.B. Corporation's operating performance and trends, and facilitate
     comparisons with the performance of F.N.B. Corporation's peers.  The
    non-GAAP financial measures used by F.N.B. Corporation may differ
     from the non-GAAP financial measures other financial institutions
     use
    to measure their results of operations.  Non-GAAP financial measures
     should be viewed in addition to, and not as an alternative for,
     F.N.B.
    Corporation's reported results prepared in accordance with U.S. GAAP.
     The following tables summarize the non-GAAP financial measures
    included in this press release and derived from amounts reported in
     F.N.B. Corporation's financial statements.


                                  2012                 2011
                    First                Fourth               First
                   Quarter              Quarter              Quarter
     Adjusted
     net
     income:
     --------
    Net
     income                    $21,582              $23,737              $17,175
    Merger
     and
     severance
     costs,
     net of
     tax                         4,943                  255                2,695
                                 -----                  ---                -----
     Adjusted
     net
     income                    $26,524              $23,992              $19,870
                               =======              =======              =======


     Adjusted
     diluted
     earnings
     per
     share:
     --------
     Diluted
     earnings
     per
     share                       $0.15                $0.19                $0.14
    Effect
     of
     merger
     and
     severance
     costs,
     net of
     tax                          0.04                 0.00                 0.02
                                  ----                 ----                 ----
     Adjusted
     diluted
     earnings
     per
     share                       $0.19                $0.19                $0.16
                                 =====                =====                =====


    Return
     on
     average
     tangible
     equity
     (2):
    ---------
    Net
     income
     (annualized)              $86,801              $94,175              $69,653
     Amortization
     of
     intangibles,
     net
     of
     tax
     (annualized)                5,964                4,692                4,734
                                 -----                -----                -----
                                92,765               98,867               74,387

     Average
     total
     shareholders'
     equity                  1,352,569            1,219,575            1,129,622
    Less:
     Average
     intangibles              (719,195)            (599,352)            (595,436)
                              --------             --------             --------
                               633,374              620,223              534,186

    Return
     on
     average
     tangible
     equity
     (2)                         14.65%               15.94%               13.93%
                                 =====                =====                =====


    Return
     on
     average
     tangible
     assets
     (3):
    ---------
    Net
     income
     (annualized)              $86,801              $94,175              $69,653
     Amortization
     of
     intangibles,
     net
     of
     tax
     (annualized)                5,964                4,692                4,734
                                 -----                -----                -----
                                92,765               98,867               74,387

     Average
     total
     assets                 11,563,665            9,947,884            9,695,015
    Less:
     Average
     intangibles              (719,195)            (599,352)            (595,436)
                              --------             --------             --------
                            10,844,470            9,348,532            9,099,579

    Return
     on
     average
     tangible
     assets
     (3)                          0.86%                1.06%                0.82%
                                  ====                 ====                 ====


     Tangible
     book
     value
     per
     share:
     --------
    Total
     shareholders'
     equity                 $1,354,699           $1,210,199           $1,128,414
    Less:
     intangibles              (714,177)            (599,414)            (601,475)
                              --------             --------             --------
                               640,522              610,785              526,939

    Ending
     shares
     outstanding           139,501,039          127,220,759          120,871,383

     Tangible
     book
     value
     per
     share                       $4.59                $4.80                $4.36
                                 =====                =====                =====


    F.N.B.
     CORPORATION
    ------------
    (Unaudited)
     (Dollars
     in
     thousands)

                                  2012                 2011
                    First                Fourth               First
                   Quarter              Quarter              Quarter
     Tangible
     equity
     /
     tangible
     assets
     (period
     end):
     --------
    Total
     shareholders'
     equity                 $1,354,699           $1,210,199           $1,128,414
    Less:
     intangibles              (714,177)            (599,414)            (601,475)
                              --------             --------             --------
                               640,522              610,785              526,939

    Total
     assets                 11,726,063            9,786,483            9,755,281
    Less:
     intangibles              (714,177)            (599,414)            (601,475)
                              --------             --------             --------
                            11,011,886            9,187,069            9,153,806

     Tangible
     equity
     /
     tangible
     assets
     (period
     end)                         5.82%                6.65%                5.76%
                                  ====                 ====                 ====


     Tangible
     equity,
     excluding
     AOCI
     /
     tangible
     ---------
       assets
        (period
        end)
        (7):
       --------
    Total
     shareholders'
     equity                 $1,354,699           $1,210,199           $1,128,414
    Less:
     intangibles              (714,177)            (599,414)            (601,475)
    Less:
     AOCI                       43,735               45,148               33,679
                                ------               ------               ------
                               684,257              655,933              560,618

    Total
     assets                 11,726,063            9,786,483            9,755,281
    Less:
     intangibles              (714,177)            (599,414)            (601,475)
                              --------             --------             --------
                            11,011,886            9,187,069            9,153,806
     Tangible
     equity,
     excluding
     AOCI
     /
     tangible
       assets
        (period
        end)
        (7)                       6.21%                7.14%                6.12%
                                  ====                 ====                 ====

                (1)   Net interest income is also presented on a
                      fully taxable equivalent (FTE) basis, as
                      the Corporation believes this non-GAAP
                      measure
                      is the preferred industry measurement for
                      this item.
                (2)   Return on average tangible equity is
                      calculated by dividing net income less
                      amortization of intangibles by average
                      equity less average
                     intangibles.
                (3)   Return on average tangible assets is
                      calculated by dividing net income less
                      amortization of intangibles by average
                      assets less average
                     intangibles.
                (4)   See non-GAAP financial measures for
                      additional information relating to the
                      calculation of this item.
                (5)   The efficiency ratio is calculated by
                      dividing non-interest expense less
                      amortization of intangibles, other real
                      estate owned expense,
                      FHLB prepayment penalties and merger costs
                      by the sum of net interest income on a
                      fully taxable equivalent basis plus non-
                      interest
                      income less securities gains and net
                      impairment losses on securities.
                (6)   Customer repos are included in short-term
                      borrowings on the balance sheet.
                (7)   Accumulated other comprehensive income
                      (AOCI) is comprised of unrealized losses
                      on securities, non-credit impairment
                      losses on
                      other-than-temporarily impaired
                      securities and unrecognized pension and
                      postretirement obligations.
                (8)   Does not include loans acquired at fair
                      value and purchased impaired loans
                      ("acquired portfolio").
                (9)   Includes all other real estate owned,
                      including those balances acquired through
                      business combinations that have been in
                      acquired
                     loans prior to foreclosure.
               (10)   "Originated Portfolio" or "Originated
                      Loans" equals loans and leases not
                      included by definition in the Acquired
                      Portfolio.
               (11)   "Acquired Portfolio" or "Acquired Loans"
                      equals loans acquired at fair value,
                      accounted for in accordance with ASC 805
                      which was
                      effective January 1, 2009. The risk of
                      credit loss on these loans has been
                      considered by virtue of the Corporation's
                      estimate of acquisition-date
                      fair value and these loans are considered
                      accruing as the Corporation primarily
                      recognizes interest income through
                      accretion of the difference
                      between the carrying value of these loans
                      and their expected cash flows.  Because
                      acquired loans are initially recorded at
                      an amount estimated
                      to be collectible, losses on such loans,
                      when incurred, are first applied against
                      the non-accretable difference
                      established in purchase
                      accounting and then to any allowance for
                      for loan losses recognized subsequent to
                      acquisition.





    (12)             Represents contractual balances.

SOURCE F.N.B. Corporation

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