F.N.B. Corporation Reports Full Year and Fourth Quarter 2013 Results

Jan 21, 2014, 16:15 ET from F.N.B. Corporation

HERMITAGE, Pa., Jan. 21, 2014 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported full year and fourth quarter of 2013 results.  Net income available to common shareholders for the full year of 2013 totaled $117.8 million, or $0.80 per diluted common share, compared to net income of $110.4 million, or $0.79 per diluted common share in 2012.  On an operating basis[1], net income available to common shareholders for the full year of 2013 totaled $123.5 million, or $0.84 per diluted common share, compared to full year 2012 net income of $117.8 million, or $0.84 per diluted common share. 

Fourth quarter of 2013 net income available to common shareholders totaled $28.4 million, or $0.18 per diluted common share, compared to third quarter of 2013 net income of $31.6 million, or $0.22 per diluted common share and fourth quarter of 2012 net income of $29.0 million, or $0.21 per diluted common share.  On an operating basis1, fourth quarter of 2013 operating net income available to common shareholders was $32.5 million, or $0.21 per diluted common share, compared to third quarter of 2013 operating net income of $32.2 million, or $0.22 per diluted common share, and fourth quarter of 2012 operating net income of $32.1 million or $0.23 per diluted common share.

Vincent J. Delie, President and Chief Executive Officer, commented, "FNB has completed another year highlighted by growth and success.  We maintained a high-quality earnings stream, despite significant regulatory-related revenue impacts and expense burden, and achieved several strategic company milestones.  These accomplishments will mark 2013 as a transformational year.  As we enter 2014, we have an expanded footprint in Baltimore, Maryland and Cleveland, Ohio and we are excited about our future potential in these dynamic markets.  We are also very optimistic about our prospects across our core markets.  Our capital structure is strengthened following the actions undertaken during the year and we continue to attract some of the most talented bankers in our markets.  We believe FNB is better positioned than ever for the future." 

 

Full Year Results Summary

2013

2012

Reported Results

Net income available to common shareholders ($ in millions)

$117.8

$110.4

Net income per diluted common share

$0.80

$0.79

Operating Results (Non-GAAP)1

Net income available to common shareholders ($ in millions)

$123.5

$117.8

Net income per diluted common share

$0.84

$0.84

Average Diluted Shares Outstanding (in 000's)

147,810

140,640

 

Quarterly Results Summary

4Q13

3Q13

4Q12

Reported Results

Net income available to common shareholders ($ in millions)

$28.4

$31.6

$29.0

Net income per diluted common share

$0.18

$0.22

$0.21

Operating Results (Non-GAAP)1

Net income available to common shareholders ($ in millions)

$32.5

$32.2

$32.1

Net income per diluted common share

$0.21

$0.22

$0.23

Average Diluted Shares Outstanding (in 000's)

157,858

146,446

140,923

 

Fourth Quarter 2013 Highlights

  • Loan growth momentum continued, with annualized average organic loan growth on a linked-quarter basis of $129 million or 5.9% annualized.  
  • Average transaction deposits and customer repurchase agreements grew organically on a linked-quarter basis by $138 million or 6.8% annualized.  Transaction deposits and customer repurchase agreements improved to 76% of total deposits and customer repurchase agreements at December 31, 2013, up from 74% at December 31, 2012.
  • The net interest margin expanded to 3.67% from 3.64% in the prior quarter. 
  • Credit quality metrics improved and reflect continued solid performance.  For the originated portfolio, non-performing loans and OREO to total loans and OREO improved 5 basis points to 1.44%, reflecting a $6.7 million, or 10.2%, reduction in non-accrual loan levels.  Net charge-offs were 0.30% annualized of total average originated loans, compared to 0.26% annualized in the prior quarter.
  • The PVF Capital Corp. (PVFC) acquisition was completed on October 12, 2013.
  • F.N.B. Corporation completed a capital offering, raising net proceeds of $161.3 million by issuing preferred and common equity through a comprehensive capital action plan to proactively position F.N.B. for Basel III implementation, including the redemption of certain trust preferred securities, and to support future growth opportunities.

Fourth Quarter 2013 Results – Comparison to Prior Quarter (All comparisons refer to the third quarter of 2013, except as noted)

Net Interest Income/Loans/Deposits Net interest income on a fully taxable equivalent basis totaled $108.7 million, increasing $7.6 million or 7.5%.  The net interest margin of 3.67% improved 3 basis points from the prior quarter and included a $1.7 million, or 6 basis point, benefit from additional accretable yield resulting from better than expected cash flows on acquired loans.  The October 2013 capital raise resulted in a temporary increase in short-term interest bearing cash balances, narrowing the fourth quarter net interest margin by 3 basis points.  The majority of these cash balances were deployed by December 31, 2013 for the redemption of $115 million in trust preferred securities.

Average loans totaled $9.3 billion and increased $593 million, or 6.8%, reflecting loans acquired from the PVFC acquisition ($463 million) and annualized organic loan growth of $129 million or 5.9%.  The fourth quarter marks the eighteenth consecutive linked-quarter of organic growth in total loans.  Organic growth in average loans reflects continued positive results in both the commercial and consumer portfolios, with organic growth in the commercial portfolio of $52.6 million, or 4.4% annualized, and consumer loan organic growth (consisting of direct, consumer lines of credit and indirect loans) of $99.6 million or 13.8% annualized.  The primary contributor to the organic consumer loan growth was $74.4 million of growth in home equity-related loans (direct and consumer lines of credit loans), of which 69% of the new loan volume represents a first lien position.

Average deposits and customer repurchase agreements totaled $11.1 billion and increased $710 million, or 6.8%, due to deposits acquired from the PVFC acquisition ($639 million) and annualized organic growth of $71.3 million or 2.7%.  Organic growth in lower-cost transaction deposit accounts and customer repurchase agreements continued as these average balances grew $137.7 million or 6.8% annualized.  Partially offsetting the transaction deposit growth was a continuation of the planned decline in time deposits due to FNB's liquidity position.  In addition, FNB's funding remains predominantly customer-based, with total customer-based funding representing 97% of total deposits and borrowings.  Loans as a percentage of total deposits and customer repurchase agreements were 86%.

Non-Interest Income Non-interest income totaled $32.7 million, decreasing $0.2 million, or 0.5%, reflecting consistent results across most fee income categories which was offset by lower mortgage banking income.  Wealth management revenues increased $0.5 million, or 7.3%, due to continued organic growth given heightened cross-selling efforts and improved market conditions.  Non-interest income was 23% of total revenue.

Non-Interest Expense Non-interest expense totaled $92.1 million, and included merger-related costs of $4.0 million and a loss on the early extinguishment of debt with trust preferred securities redemption costs of $2.2 million.  When excluding these non-operating costs and the $0.9 million in merger costs in the prior quarter, non-interest expense increased $3.6 million or 4.4%.  The increase primarily reflects the additional operating costs of PVFC during the fourth quarter.  In addition, salaries and employee benefits included higher employee medical insurance of $1.1 million due to elevated claims experienced during the quarter, other real estate owned (OREO) expense was elevated by $1.7 million primarily due to the write-down of one property and amortization of intangibles increased following the addition of PVFC.  The efficiency ratio was improved to 57.8% from 59.7%.

Credit Quality Overall credit quality metrics improved and reflect continued solid performance.  The ratio of non-performing loans and OREO to total loans and OREO improved 9 basis points to 1.24%. For the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO was 1.44%, a 5 basis point improvement reflecting a $6.7 million, or 10.2%, reduction of non-accrual loans.  The positive movement in non-accrual levels contributed to a $9.6 million, or 16 basis point, improvement in total originated delinquency (total past due and non-accrual loans) to total originated loans, which was 1.28% at December 31, 2013.

The provision for loan losses totaled $8.4 million, compared to $7.3 million in the prior quarter.  The increase reflects lower provision for loan losses for the originated portfolio given the continued improvement in credit quality offset by an increased provision in the acquired portfolio related to certain small business pools and the exit of lower-quality credits.  Net charge-offs for the fourth quarter totaled $7.6 million, or 0.32% annualized, compared to $5.5 million or 0.25% annualized. For the originated portfolio, net charge-offs were 0.30% annualized compared to 0.26% annualized of average originated loans.  Full year 2013 net charges-offs improved 7 basis points to 0.28% of total average loans for the full year of 2012.  The ratio of the allowance for loan losses to total originated loans was 1.29% at December 31, 2013, compared to 1.34% at September 30, 2013, with the change directionally consistent with the improved performance of the originated portfolio.  The ratio of the allowance for loan losses to total non-performing loans was 135.42%, compared to 127.37%.

Fourth Quarter 2013 Results – Comparison to Prior-Year Quarter (All comparisons refer to the fourth quarter of 2012, except as noted)

Fourth quarter of 2013 results include the impact from the Annapolis Bancorp, Inc. (ANNB) and PVFC acquisitions completed on April 6, 2013 and October 12, 2013, respectively.

Net Interest Income/Loans/Deposits Net interest income on a fully taxable equivalent basis totaled $108.7 million, increasing $12.9 million or 13.5%. The net interest margin expanded 1 basis point to 3.67%, reflecting solid loan and lower-cost transaction deposit growth.  Average earning assets grew $1.4 billion, or 13.0%, through solid organic loan growth and the addition of ANNB and PVFC.

Average loans totaled $9.3 billion and increased $1.3 billion, or 16.1%, reflecting organic loan growth of $572 million, or 7.1%, and loans added in the ANNB and PVFC acquisitions.  Growth in the commercial portfolio continued, with these average balances increasing organically $282.7 million or 6.5%. Average organic consumer loan growth (consisting of direct, consumer lines of credit and indirect loans) was also strong with these balances increasing $384.8 million, or 15.2%, driven by growth in home equity-related loans originated across FNB's footprint.

Total average deposits and customer repurchase agreements totaled $11.1 billion and increased $1.1 billion, or 11.4%, reflecting organic growth of $141.3, or 1.4%, and balances added in the ANNB and PVFC acquisitions.  Organic growth in lower cost transaction deposit accounts and customer repurchase agreements was strong, growing $461.1 million, or 6.2%, through new account acquisition and customers maintaining higher average balances.  Average non-interest bearing deposits grew organically $259.5 million or 14.9%.

Non-Interest Income Non-interest income totaled $32.7 million, increasing $0.6 million, or 1.8%, reflecting the benefit of the ANNB and PVFC acquisitions and solid organic growth in fee-based business units. Securities commissions and fees increased $0.7 million, or 29.7%, and trust income increased $0.4 million or 11.4%.  The fourth quarter of 2013 was negatively impacted by $2.7 million in lower customer-related interchange service charges due to the Durbin Amendment restrictions.  The prior-year quarter included a $1.7 million non-recurring accrual for expected losses on asset disposals related to branch consolidations. 

Non-Interest Expense Non-interest expense totaled $92.1 million, increasing $15.5 million or 20.3%.  The fourth quarter of 2013 included merger-related costs of $4.0 million and trust preferred securities redemption costs of $2.2 million.  The fourth quarter of 2012 included $3.0 million in litigation costs to establish a settlement fund.  Absent these items, the year-over-year increase in non-interest expense primarily reflects the additional operating costs related to the ANNB and PVFC acquisitions.

Credit Quality Credit quality results reflect improvement over the prior-year quarter.  The ratio of non-performing loans and OREO to total loans and OREO improved 18 basis points to 1.24%.  For the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO was 1.44%, a 16 basis point improvement, reflecting the 11.0% reduction in non-accrual loans.  Total delinquency (total past due and non-accrual loans) improved $14.8 million or 36 basis points to 1.28% at December 31, 2013.

The provision for loan losses totaled $8.4 million, compared to $9.3 million in the prior-year quarter.  Net charge-offs for the fourth quarter totaled $7.6 million, or 0.32% annualized of total average loans, compared to $7.6 million or 0.38% annualized.  For the originated portfolio, net charge-offs of $6.1 million improved by $1.6 million, or 15 basis points, to 0.30% annualized of total average originated loans.  The ratio of the allowance for loan losses to total originated loans was 1.29% at December 31, 2013, compared to 1.38% at December 31, 2012, with the change directionally consistent with the improved performance of the portfolio.

Full Year 2013 Results (All comparisons refer to the prior full year, except as noted)

Full year 2013 results include the impact from the ANNB and PVFC acquisitions completed on April 6, 2013 and October 12, 2013, respectively

Net interest income on a fully taxable equivalent basis totaled $403.0 million and grew $22.8 million or 6.0%.  The net interest margin of 3.65% compares to 3.73%, with 3 basis points of the narrowing due to $2.6 million higher additional accretable yield on acquired loans in the prior year.  The remaining narrowing primarily reflects lower yields on earning assets in response to the extended low interest rate environment.  This is partially offset by the benefits to the net interest margin from strong growth in average loans, as well as lower cost transaction deposits and customer repurchase agreements and a lower cost of funds.  Average earning assets grew $842.5 million, or 8.3%, reflecting strong organic loan growth and the ANNB and PVFC acquisitions.

Average loans totaled $8.7 billion and increased $807.8 million, or 10.3%, reflecting solid organic loan growth of $498.9 million, or 6.3%, and loans added in the ANNB and PVFC acquisitions.  Total average deposits and customer repurchase agreements totaled $10.5 billion and increased $659.7 million, or 6.7%, reflecting organic growth and balances added in the ANNB and PVFC acquisitions.  Organic growth in lower cost transaction deposit accounts and customer repurchase agreements was strong, growing $562.2 million or 7.9%.  Growth in non-interest bearing deposits was a significant contributor, with average organic growth of $273.2 million or 16.9%.

Non-interest income totaled $135.8 million, increasing $4.5 million or 3.4%.  Full-year 2013 non-interest income was negatively impacted by the $5.3 million in lower customer-related service charges attributable to the Durbin Amendment restrictions that became effective for FNB on July 1, 2013.  Non-interest income benefited from the acquisitions and positive results from improved organic revenue growth results across several business lines, including wealth management and insurance, due to the implementation of revenue-enhancing strategies and initiatives.  Wealth management revenue increased $4.4 million, or 18.6%, driven by cross-selling efforts with internal business partners, added sales professionals and improved market conditions.  The 2013 fiscal year also included a $1.6 million gain on the extinguishment of debt, while the 2012 fiscal year included a $1.4 million gain on the sale of a building.

Non-interest expense totaled $338.2 million, an increase of $19.6 million, or 6.1%, primarily due to adding ANNB and PVFC operating costs and higher FDIC insurance expense of $2.1 million or 26.2%.

Credit quality results for full year of 2013 continued to trend positively resulting in year-over-year improvements.  Full year net charge-offs totaled $24.7 million, or 0.28% annualized, improved from $27.6 million or 0.35% annualized.  The full year provision for loan losses of $31.1 million was consistent with the prior-year level.

Income Taxes The effective tax rate for the full year 2013 reflects the benefit of $1.4 million of tax credits realized on the prior-year income tax return.

Capital Position Capital levels at December 31, 2013 are strengthened following the capital actions during the fourth quarter of 2013.  During the fourth quarter, the Corporation raised $161.3 million in capital, through the issuance of 4.7 million shares of common stock ($54.4 million in net proceeds) and 4.4 million depository shares of non-cumulative perpetual preferred stock ($106.9 million in net proceeds).  A portion of the proceeds were deployed during the quarter to redeem $115.0 million in trust preferred securities, with an additional $16.5 million expected to be redeemed in the first quarter of 2014.

The Corporation's capital levels at December 31, 2013 continue to exceed federal bank regulatory agency "well capitalized" thresholds. At December 31, 2013, the estimated total risk-based capital ratio was 12.2%, the estimated tier 1 risk-based capital ratio was 10.8% and the estimated leverage ratio was 8.8%.

At December 31, 2013, the tangible common equity to tangible assets ratio (non-GAAP measure) increased to 6.71% compared to 6.09% at September 30, 2013 and the tangible common book value per share (non-GAAP measure) increased to $5.38 from $5.04 at September 30, 2013.  The dividend payout ratios for the fourth quarter of 2013 and full year of 2013 were 68% and 60%, respectively.

Conference Call F.N.B. Corporation will host its quarterly conference call to discuss fourth quarter and full year 2013 financial results on Wednesday, January 22, 2014 at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (888) 500-6950 or (719) 325-2491 for international callers; the confirmation number is 3658778.  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 from 1:00 p.m. Eastern Time the day of the call until midnight Eastern Time on Wednesday, January 29, 2014.  The replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for international callers; the confirmation number is 3658778. The call transcript and Webcast will be available on the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at www.fnbcorporation.com.

About F.N.B. Corporation F.N.B. Corporation (NYSE: FNB), headquartered in Hermitage, Pennsylvania, is a regional diversified financial services company operating in six states and three major metropolitan areas including Pittsburgh, PA, where it holds the number three retail deposit market share, Baltimore, MD and Cleveland, OH. The Company has total assets of $13.6 billion and more than 265 banking offices throughout Pennsylvania, Ohio, West Virginia and Maryland. 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. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, asset based lending, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. F.N.B.'s wealth management services include asset management, private banking and insurance. The Company also operates Regency Finance Company, which has more than 70 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee.

The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor's SmallCap 600 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation web site at www.fnbcorporation.com.

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

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

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

  • Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following:
    • Changes in interest rates and valuations in debt, equity and other financial markets.
    • Disruptions in the liquidity and other functioning of U.S. and global financial markets.
    • The impact on federal regulated agencies that have oversight or review of F.N.B. Corporation's business and securities activities.
    • Actions by the Federal Reserve, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates.
    • Changes in customers', suppliers' and other counterparties' performance and creditworthiness which adversely affect loan utilization rates, delinquencies, defaults and counterparty ability to meet credit and other obligations.
    • Slowing or reversal of the current moderate economic recovery and persistence or worsening levels of unemployment.
    • 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. 
    • The impact on fee income opportunities resulting from the limit imposed under the Durbin Amendment of the Dodd-Frank Act on the maximum permissible interchange fee that banks may collect from merchants for debit card transactions and federal court determinations that may impose further restrictions on interchange fee opportunities.
    • Changes to regulations governing bank capital and liquidity standards, including due to the Dodd-Frank Act, Volcker rule and Basel III initiatives. 
    • Impact on business and operating results of any costs associated with obtaining rights in intellectual property, the adequacy of our intellectual property protection in general and rapid technological developments and changes. 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 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.
  • Increased competition, whether due to consolidation among financial institutions; realignments or consolidation of branch offices, legal and regulatory developments, industry restructuring or other causes, 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.
  • As demonstrated by our Annapolis Bancorp, Inc. and PVF Capital Corp. acquisitions and the pending acquisition of BCSB Bancorp, Inc., we grow our business in part by acquiring from time to time other financial services companies, financial services assets and related deposits.  These acquisitions often present risks and uncertainties, including, the possibility that the transaction cannot be consummated; regulatory issues; cost, or difficulties, involved in integration and conversion of the acquired businesses after closing; inability to realize expected cost savings, efficiencies and strategic advantages; the extent of credit losses in acquired loan portfolios and extent of deposit attrition; and the potential dilutive effect to our current shareholders.  In addition, with respect to the acquisition of Annapolis Bancorp, Inc. and PVF Capital Corp., and the pending acquisition of and BCSB Bancorp, Inc., F.N.B. Corporation may experience difficulties in expanding into a new market area, including retention of customers and key personnel of Annapolis Bancorp, Inc., PVF Capital Corp., Inc. and BCSB Bancorp, Inc.
  • Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues.  Industry restructuring in the current environment could also impact our business and financial performance through changes in counterparty creditworthiness and performance and the competitive and regulatory landscape.  Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.
  • Business and operating results can also be affected by widespread disasters, dislocations, terrorist activities, cyber-attacks or international hostilities through their impacts on the economy and financial markets.

We provide greater detail regarding some of these factors in our 2012 Form 10-K and 2013 Form 10-Qs, including the Risk Factors section of those reports, and our subsequent SEC filings.  Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com.  We have included these web addresses as inactive textual references only.  Information on these websites is not part of this document.

1 Non-GAAP measures, refer to Non-GAAP Disclosures and detail in the accompanying data tables.

DATA SHEETS FOLLOW

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

4Q13 -

4Q13 -

2013

2012

3Q13

4Q12

Fourth

Third

Fourth

Percent

Percent

Statement of earnings

Quarter

Quarter

Quarter

Variance

Variance

Interest income 

$117,637

$109,790

$107,578

7.1

9.4

Interest expense

10,691

10,536

13,660

1.5

-21.7

   Net interest income

106,946

99,254

93,918

7.8

13.9

Taxable equivalent adjustment

1,704

1,781

1,798

-4.3

-5.2

   Net interest income (FTE) (1)

108,650

101,035

95,716

7.5

13.5

Provision for loan losses

8,366

7,280

9,274

14.9

-9.8

   Net interest income after provision (FTE)

100,284

93,755

86,442

7.0

16.0

Impairment losses on securities

(27)

0

(186)

n/m

n/m

Non-credit related losses on securities not

   expected to be sold (recognized in other

   comprehensive income)

0

0

93

n/m

n/m

Net impairment losses on securities

(27)

0

(93)

n/m

n/m

Service charges

16,805

16,427

17,517

2.3

-4.1

Trust income

4,323

4,176

3,880

3.5

11.4

Insurance commissions and fees

3,979

4,088

3,794

-2.7

4.9

Securities commissions and fees

2,921

2,575

2,252

13.4

29.7

Mortgage banking

370

885

1,257

-58.2

-70.6

Gain (loss) on sale of securities

51

5

3

n/m

n/m

Other

4,237

4,654

3,457

-9.0

22.5

   Total non-interest income

32,659

32,810

32,067

-0.5

1.8

Salaries and employee benefits

47,710

45,155

40,964

5.7

16.5

Occupancy and equipment

14,006

12,547

11,676

11.6

20.0

FDIC insurance

1,995

3,161

1,905

-36.9

4.7

Amortization of intangibles

2,344

2,067

2,183

13.4

7.4

Other real estate owned

1,927

277

(631)

596.8

-405.1

Merger-related

3,999

913

(5)

n/m

n/m

Other

20,087

19,053

20,440

5.4

-1.7

   Total non-interest expense

92,068

83,173

76,532

10.7

20.3

Income before income taxes

40,875

43,392

41,977

-5.8

-2.6

Taxable equivalent adjustment

1,704

1,781

1,798

-4.3

-5.2

Income taxes

10,732

9,977

11,224

7.6

-4.4

   Net income

28,439

31,634

28,955

-10.1

-1.8

   Preferred stock dividends

0

0

0

   Net income available to common stockholders

$28,439

$31,634

$28,955

-10.1

-1.8

Earnings per common share:

   Basic

$0.18

$0.22

$0.21

-18.2

-14.3

   Diluted

$0.18

$0.22

$0.21

-18.2

-14.3

Non-GAAP Operating Results

Operating net income available to common stockholders:

  Net income available to common stockholders

$28,439

$31,634

$28,955

  (Gain) loss on extinguishment of debt, net of tax

1,412

0

0

  Gain on sale of acquired building, net of tax

0

0

0

  Branch consolidation costs, net of tax

0

0

1,214

  Litigation settlement accrual, net of tax

0

0

1,950

  Merger and severance costs, net of tax

2,599

594

(3)

  Operating net income available to common stockholders

$32,450

$32,228

$32,116

0.7

1.0

Operating diluted earnings per common share:

  Diluted earnings per common share

$0.18

$0.22

$0.21

  Effect of (gain) loss on extinguishment of debt, net of tax

0.01

0.00

0.00

  Effect of gain on sale of acquired building, net of tax

0.00

0.00

0.00

  Effect of branch consolidation costs, net of tax

0.00

0.00

0.01

  Effect of litigation settlement accrual, net of tax

0.00

0.00

0.01

  Effect of merger and severance costs, net of tax

0.02

0.00

(0.00)

  Operating diluted earnings per common share

$0.21

$0.22

$0.23

-4.5

-8.7

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

For the Year Ended

December 31,

Percent

Statement of earnings

2013

2012

Variance

Interest income 

$440,386

$431,906

2.0

Interest expense

44,344

59,055

-24.9

   Net interest income

396,042

372,851

6.2

Taxable equivalent adjustment

6,969

7,382

-5.6

   Net interest income (FTE) (1)

403,011

380,233

6.0

Provision for loan losses

31,090

31,302

-0.7

   Net interest income after provision (FTE)

371,921

348,931

6.6

Impairment losses on securities

(27)

(626)

n/m

Non-credit related losses on securities not

   expected to be sold (recognized in other

   comprehensive income)

0

414

n/m

Net impairment losses on securities

(27)

(212)

n/m

Service charges

68,221

69,546

-1.9

Trust income

16,751

15,239

9.9

Insurance commissions and fees

16,598

16,426

1.0

Securities commissions and fees

11,286

8,395

34.4

Mortgage banking

3,452

4,153

-16.9

Gain (loss) on sale of securities

808

305

n/m

Other

18,689

17,400

7.4

   Total non-interest income

135,778

131,252

3.4

Salaries and employee benefits

179,971

168,219

7.0

Occupancy and equipment

51,688

46,898

10.2

FDIC insurance

10,192

8,077

26.2

Amortization of intangibles

8,407

8,924

-5.8

Other real estate owned

3,215

3,268

-1.6

Merger-related

8,210

7,394

11.0

Other

76,487

75,838

0.9

   Total non-interest expense

338,170

318,618

6.1

Income before income taxes

169,529

161,565

4.9

Taxable equivalent adjustment

6,969

7,382

-5.6

Income taxes

44,756

43,773

2.2

   Net income

117,804

110,410

6.7

   Preferred stock dividends

0

0

   Net income available to common stockholders

$117,804

$110,410

6.7

Earnings per common share:

   Basic

$0.81

$0.79

2.5

   Diluted

$0.80

$0.79

1.3

Non-GAAP Operating Results

Operating net income available to common stockholders:

  Net income available to common stockholders

$117,804

$110,410

  (Gain) loss on extinguishment of debt, net of tax

399

0

  Gain on sale of acquired building, net of tax

0

(942)

  Branch consolidation costs, net of tax

0

1,214

  Litigation settlement accrual, net of tax

0

1,950

  Merger and severance costs, net of tax

5,337

5,203

  Operating net income available to common stockholders

$123,540

$117,835

4.8

Operating diluted earnings per common share:

  Diluted earnings per common share

$0.80

$0.79

  Effect of (gain) loss on extinguishment of debt, net of tax

0.00

0.00

  Effect of gain on sale of acquired building, net of tax

0.00

(0.01)

  Effect of branch consolidation costs, net of tax

0.00

0.01

  Effect of litigation settlement accrual, net of tax

0.00

0.01

  Effect of merger and severance costs, net of tax

0.04

0.04

  Operating diluted earnings per common share

$0.84

$0.84

0.0

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

4Q13 -

4Q13 -

2013

2012

3Q13

4Q12

Fourth

Third

Fourth

Percent

Percent

Balance Sheet (at period end)

Quarter

Quarter

Quarter

Variance

Variance

Assets

Cash and due from banks

$197,534

$234,746

$216,233

-15.9

-8.6

Interest bearing deposits with banks

16,447

48,763

22,811

-66.3

-27.9

   Cash and cash equivalents

213,981

283,509

239,044

-24.5

-10.5

Securities available for sale

1,141,650

1,115,558

1,172,683

2.3

-2.6

Securities held to maturity

1,199,169

1,180,992

1,106,563

1.5

8.4

Residential mortgage loans held for sale

7,138

8,105

27,751

-11.9

-74.3

Loans, net of unearned income

9,506,094

8,836,905

8,137,719

7.6

16.8

Allowance for loan losses

(110,784)

(110,052)

(104,374)

0.7

6.1

   Net loans

9,395,310

8,726,853

8,033,345

7.7

17.0

Premises and equipment, net

154,032

147,406

140,367

4.5

9.7

Goodwill

764,248

713,509

675,555

7.1

13.1

Core deposit and other intangible assets, net

47,608

35,400

37,851

34.5

25.8

Bank owned life insurance

289,402

263,781

246,088

9.7

17.6

Other assets

350,867

315,166

344,729

11.3

1.8

Total Assets

$13,563,405

$12,790,279

$12,023,976

6.0

12.8

Liabilities

Deposits:

   Non-interest bearing demand

$2,200,081

$2,115,813

$1,738,195

4.0

26.6

   Savings and NOW

5,392,078

5,247,922

4,808,121

2.7

12.1

   Certificates and other time deposits

2,606,073

2,359,636

2,535,858

10.4

2.8

      Total Deposits

10,198,232

9,723,371

9,082,174

4.9

12.3

Other liabilities

130,418

133,061

163,151

-2.0

-20.1

Short-term borrowings

1,241,239

1,166,180

1,083,138

6.4

14.6

Long-term debt

143,928

91,807

89,425

56.8

60.9

Junior subordinated debt

75,205

194,213

204,019

-61.3

-63.1

   Total Liabilities

11,789,022

11,308,632

10,621,907

4.2

11.0

Stockholders' Equity

Preferred stock

106,882

0

0

    n/m

   n/m

Common stock

1,592

1,455

1,398

9.4

13.9

Additional paid-in capital

1,608,117

1,440,779

1,376,601

11.6

16.8

Retained earnings

121,870

112,649

75,312

8.2

61.8

Accumulated other comprehensive income

(56,924)

(66,171)

(46,224)

-14.0

23.1

Treasury stock

(7,154)

(7,065)

(5,018)

1.2

42.6

   Total Stockholders' Equity

1,774,383

1,481,647

1,402,069

19.8

26.6

Total Liabilities and Stockholders' Equity

$13,563,405

$12,790,279

$12,023,976

6.0

12.8

Selected average balances

Total assets

$13,456,936

$12,615,338

$11,988,283

6.7

12.3

Earning assets 

11,774,690

11,047,767

10,420,397

6.6

13.0

Interest bearing deposits with banks

130,027

30,224

116,885

330.2

11.2

Securities

2,315,793

2,275,473

2,255,702

1.8

2.7

Residential mortgage loans held for sale

6,128

12,060

18,945

-49.2

-67.7

Loans, net of unearned income

9,322,742

8,730,010

8,028,865

6.8

16.1

Allowance for loan losses

111,654

110,463

104,453

1.1

6.9

Goodwill and intangibles

804,098

748,592

715,962

7.4

12.3

Deposits and customer repurchase agreements (6)

11,113,386

10,402,935

9,974,646

6.8

11.4

Short-term borrowings

173,405

318,023

156,197

-45.5

11.0

Long-term debt

138,631

91,659

88,956

51.2

55.8

Trust preferred securities

192,533

194,206

204,012

-0.9

-5.6

Total stockholders' equity 

1,694,669

1,475,751

1,400,430

14.8

21.0

Preferred stockholders' equity

71,126

0

0

   n/m

   n/m

Common stock data

Average diluted shares outstanding

157,858,351

146,446,442

140,923,088

7.8

12.0

Period end shares outstanding

158,967,211

145,263,435

139,929,242

9.4

13.6

Book value per common share

$10.49

$10.20

$10.02

2.8

4.7

Tangible book value per common share (4)

$5.38

$5.04

$4.92

6.7

9.4

Dividend payout ratio (common)

67.58%

55.51%

58.51%

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Year Ended

December 31,

Percent

Balance Sheet (at period end)

2013

2012

Variance

Assets

Cash and due from banks

$197,534

$216,233

-8.6

Interest bearing deposits with banks

16,447

22,811

-27.9

   Cash and cash equivalents

213,981

239,044

-10.5

Securities available for sale

1,141,650

1,172,683

-2.6

Securities held to maturity

1,199,169

1,106,563

8.4

Residential mortgage loans held for sale

7,138

27,751

-74.3

Loans, net of unearned income

9,506,094

8,137,719

16.8

Allowance for loan losses

(110,784)

(104,374)

6.1

   Net loans

9,395,310

8,033,345

17.0

Premises and equipment, net

154,032

140,367

9.7

Goodwill

764,248

675,555

13.1

Core deposit and other intangible assets, net

47,608

37,851

25.8

Bank owned life insurance

289,402

246,088

17.6

Other assets

350,867

344,729

1.8

Total Assets

$13,563,405

$12,023,976

12.8

Liabilities

Deposits:

   Non-interest bearing demand

$2,200,081

$1,738,195

26.6

   Savings and NOW

5,392,078

4,808,121

12.1

   Certificates and other time deposits

2,606,073

2,535,858

2.8

      Total Deposits

10,198,232

9,082,174

12.3

Other liabilities

130,418

163,151

-20.1

Short-term borrowings

1,241,239

1,083,138

14.6

Long-term debt

143,928

89,425

60.9

Junior subordinated debt

75,205

204,019

-63.1

   Total Liabilities

11,789,022

10,621,907

11.0

Stockholders' Equity

Preferred stock

106,882

0

   n/m

Common stock

1,592

1,398

13.9

Additional paid-in capital

1,608,117

1,376,601

16.8

Retained earnings

121,870

75,312

61.8

Accumulated other comprehensive income

(56,924)

(46,224)

23.1

Treasury stock

(7,154)

(5,018)

42.6

   Total Stockholders' Equity

1,774,383

1,402,069

26.6

Total Liabilities and Stockholders' Equity

$13,563,405

$12,023,976

12.8

Selected average balances

Total assets

$12,640,685

$11,782,821

7.3

Earning assets 

11,049,009

10,206,464

8.3

Interest bearing deposits with banks

57,605

94,719

-39.2

Securities

2,285,602

2,214,846

3.2

Residential mortgage loans held for sale

17,772

16,645

6.8

Loans, net of unearned income

8,688,030

7,880,254

10.3

Allowance for loan losses

109,050

103,589

5.3

Goodwill and intangibles

752,894

717,031

5.0

Deposits and customer repurchase agreements (6)

10,450,247

9,790,571

6.7

Short-term borrowings

231,326

158,875

45.6

Long-term debt

103,772

90,652

14.5

Trust preferred securities

199,296

203,471

-2.1

Total stockholders' equity 

1,514,471

1,376,493

10.0

Preferred stockholders' equity

17,928

0

   n/m

Common stock data

Average diluted shares outstanding

147,809,504

140,640,165

5.1

Period end shares outstanding

158,967,211

139,929,242

13.6

Book value per common share

$10.49

$10.02

4.7

Tangible book value per common share (4)

$5.38

$4.92

9.4

Dividend payout ratio (common)

60.48%

61.27%

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

4Q13 -

4Q13 -

2013

2012

3Q13

4Q12

Fourth

Third

Fourth

Percent

Percent

Quarter

Quarter

Quarter

Variance

Variance

Performance ratios

Return on average equity

6.66%

8.50%

8.23%

Return on average tangible equity (2) (4)

13.35%

17.99%

17.65%

Return on average tangible common equity (2) (4)

14.51%

17.99%

17.65%

Return on average assets

0.84%

0.99%

0.96%

Return on average tangible assets (3) (4)

0.94%

1.10%

1.07%

Net interest margin (FTE) (1) 

3.67%

3.64%

3.66%

Yield on earning assets (FTE) (1)

4.03%

4.01%

4.18%

Cost of funds

0.45%

0.47%

0.63%

Efficiency ratio (FTE) (1) (5)

57.77%

59.71%

55.43%

Effective tax rate

27.40%

23.98%

27.94%

Capital ratios

Equity / assets (period end)

13.08%

11.58%

11.66%

Leverage ratio

8.80%

8.42%

8.29%

Tangible equity / tangible assets (period end) (4)

7.55%

6.09%

6.09%

Tangible common equity / tangible assets (period end) (4)

6.71%

6.09%

6.09%

Tangible common equity, excluding AOCI / tangible

   assets (period end) (4) (7)

7.16%

6.63%

6.50%

Balances at period end

Loans:

Commercial real estate 

$3,245,209

$2,920,808

$2,707,046

11.1

19.9

Commercial and industrial

1,881,474

1,755,235

1,602,314

7.2

17.4

Commercial leases

158,895

141,714

130,133

12.1

22.1

   Commercial loans and leases

5,285,578

4,817,757

4,439,493

9.7

19.1

Direct installment

1,467,236

1,408,539

1,178,530

4.2

24.5

Residential mortgages

1,086,739

1,031,805

1,092,228

5.3

-0.5

Indirect installment

655,587

638,312

582,037

2.7

12.6

Consumer LOC

965,771

887,981

805,494

8.8

19.9

Other

45,183

52,511

39,937

-14.0

13.1

   Total loans

$9,506,094

$8,836,905

$8,137,719

7.6

16.8

Deposits:

Non-interest bearing deposits

$2,200,081

$2,115,813

$1,738,195

4.0

26.6

Savings and NOW

5,392,078

5,247,922

4,808,121

2.7

12.1

Certificates of deposit and other time deposits

2,606,073

2,359,636

2,535,858

10.4

2.8

   Total deposits

10,198,232

9,723,371

9,082,174

4.9

12.3

Customer repurchase agreements (6)

841,741

834,610

807,820

0.9

4.2

   Total deposits and customer repurchase agreements (6)

$11,039,973

$10,557,981

$9,889,994

4.6

11.6

Average balances

Loans:

Commercial real estate 

$3,184,720

$2,891,354

$2,657,325

10.1

19.8

Commercial and industrial

1,818,355

1,753,053

1,567,340

3.7

16.0

Commercial leases

150,308

138,441

128,535

8.6

16.9

   Commercial loans and leases

5,153,383

4,782,848

4,353,200

7.7

18.4

Direct installment

1,452,597

1,362,881

1,157,480

6.6

25.5

Residential mortgages

1,085,465

1,043,349

1,103,713

4.0

-1.7

Indirect installment

646,876

621,705

581,748

4.0

11.2

Consumer LOC

939,646

875,239

793,496

7.4

18.4

Other

44,775

43,988

39,228

1.8

14.1

   Total loans

$9,322,742

$8,730,010

$8,028,865

6.8

16.1

Deposits:

Non-interest bearing deposits

$2,168,847

$2,033,370

$1,742,328

6.7

24.5

Savings and NOW

5,468,290

5,229,488

4,786,688

4.6

14.2

Certificates of deposit and other time deposits

2,609,294

2,391,828

2,578,226

9.1

1.2

   Total deposits

10,246,431

9,654,686

9,107,242

6.1

12.5

Customer repurchase agreements (6)

866,955

748,249

867,404

15.9

-0.1

   Total deposits and customer repurchase agreements (6)

$11,113,386

$10,402,935

$9,974,646

6.8

11.4

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Year Ended

December 31,

Percent

2013

2012

Variance

Performance ratios

Return on average equity

7.78%

8.02%

Return on average tangible equity (2) (4)

16.19%

17.62%

Return on average tangible common equity (2) (4)

16.58%

17.62%

Return on average assets

0.93%

0.94%

Return on average tangible assets (3) (4)

1.04%

1.05%

Net interest margin (FTE) (1) 

3.65%

3.73%

Yield on earning assets (FTE) (1)

4.05%

4.30%

Cost of funds

0.49%

0.68%

Efficiency ratio (FTE) (1) (5)

58.94%

58.32%

Effective tax rate

27.53%

28.39%

Capital ratios

Equity / assets (period end)

13.08%

11.66%

Leverage ratio

8.80%

8.29%

Tangible equity / tangible assets (period end) (4)

7.55%

6.09%

Tangible common equity / tangible assets (period end) (4)

6.71%

6.09%

Tangible common equity, excluding AOCI / tangible

   assets (period end) (4) (7)

7.16%

6.50%

Balances at period end

Loans:

Commercial real estate 

$3,245,209

$2,707,046

19.9

Commercial and industrial

1,881,474

1,602,314

17.4

Commercial leases

158,895

130,133

22.1

   Commercial loans and leases

5,285,578

4,439,493

19.1

Direct installment

1,467,236

1,178,530

24.5

Residential mortgages

1,086,739

1,092,228

-0.5

Indirect installment

655,587

582,037

12.6

Consumer LOC

965,771

805,494

19.9

Other

45,183

39,937

13.1

   Total loans

$9,506,094

$8,137,719

16.8

Deposits:

Non-interest bearing deposits

$2,200,081

$1,738,195

26.6

Savings and NOW

5,392,078

4,808,121

12.1

Certificates of deposit and other time deposits

2,606,073

2,535,858

2.8

   Total deposits

10,198,232

9,082,174

12.3

Customer repurchase agreements (6)

841,741

807,820

4.2

   Total deposits and customer repurchase agreements (6)

$11,039,973

$9,889,993

11.6

Average balances

Loans:

Commercial real estate 

$2,908,164

$2,643,867

10.0

Commercial and industrial

1,740,138

1,488,579

16.9

Commercial leases

138,214

122,129

13.2

   Commercial loans and leases

4,786,516

4,254,575

12.5

Direct installment

1,311,441

1,115,355

17.6

Residential mortgages

1,068,130

1,154,837

-7.5

Indirect installment

608,430

571,844

6.4

Consumer LOC

871,083

743,214

17.2

Other

42,430

40,429

4.9

   Total loans

$8,688,030

$7,880,254

10.3

Deposits:

Non-interest bearing deposits

$1,963,431

$1,615,419

21.5

Savings and NOW

5,203,251

4,691,424

10.9

Certificates of deposit and other time deposits

2,489,129

2,691,597

-7.5

   Total deposits

9,655,811

8,998,440

7.3

Customer repurchase agreements (6)

794,436

792,131

0.3

   Total deposits and customer repurchase agreements (6)

$10,450,247

$9,790,571

6.7

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

4Q13 -

4Q13 -

2013

2012

3Q13

4Q12

Fourth

Third

Fourth

Percent

Percent

Asset Quality Data

Quarter

Quarter

Quarter

Variance

Variance

Non-Performing Assets

Non-performing loans (8)

   Non-accrual loans

$58,755

$65,451

$66,004

-10.2

-11.0

   Restructured loans

18,698

17,252

14,876

8.4

25.7

      Non-performing loans

77,453

82,703

80,880

-6.3

-4.2

Other real estate owned (9)

40,681

35,144

35,257

15.8

15.4

   Non-performing loans and OREO

118,134

117,847

116,137

0.2

1.7

Non-performing investments 

797

733

2,809

8.7

-71.6

   Total non-performing assets

$118,931

$118,580

$118,946

0.3

0.0

Non-performing loans / total loans

0.81%

0.94%

0.99%

Non-performing loans / total originated loans (10)

0.95%

1.05%

1.12%

Non-performing loans + OREO / total loans + OREO

1.24%

1.33%

1.42%

Non-performing loans + OREO / total originated 

   loans + OREO (10)

1.44%

1.49%

1.60%

Non-performing assets / total assets

0.88%

0.93%

0.99%

Allowance Rollforward

Allowance for loan losses (originated portfolio) (10)

   Balance at beginning of period

$105,336

$102,849

$99,725

2.4

5.6

   Provision for loan losses

5,653

7,505

8,144

-24.7

-30.6

   Net loan charge-offs

(6,105)

(5,018)

(7,675)

21.7

-20.5

   Allowance for loan losses (originated portfolio) (10)

104,884

105,336

100,194

-0.4

4.7

Allowance for loan losses (acquired portfolio) (11)

   Balance at beginning of period

4,716

5,431

2,989

   Provision for loan losses 

2,713

(226)

1,130

   Net loan charge-offs

(1,529)

(489)

61

   Allowance for loan losses (acquired portfolio) (11)

5,900

4,716

4,180

25.1

41.1

      Total allowance for loan losses

$110,784

$110,052

$104,374

0.7

6.1

Allowance for loan losses / total loans

1.17%

1.25%

1.28%

Allowance for loan losses (originated loans) / total

   originated loans (10)

1.29%

1.34%

1.38%

Allowance for loan losses (originated loans) / total

   non-performing loans  (8)

135.42%

127.37%

123.88%

Net loan charge-offs (annualized) / total average loans

0.32%

0.25%

0.38%

Net loan charge-offs on originated loans (annualized) / 

   total average originated loans (10)

0.30%

0.26%

0.45%

Delinquency - Originated Portfolio (10)

Loans 30-89 days past due

$37,342

$41,212

$46,205

-9.4

-19.2

Loans 90+ days past due

7,971

7,018

6,706

13.6

18.9

Non-accrual loans

58,755

65,451

66,004

-10.2

-11.0

   Total past due and non-accrual loans

$104,068

$113,681

$118,915

-8.5

-12.5

Total past due and non-accrual loans / total originated loans

1.28%

1.44%

1.64%

Memo item:

Delinquency - Acquired Portfolio (11) (12)

Loans 30-89 days past due

$30,205

$16,968

$22,799

78.0

32.5

Loans 90+ days past due

45,823

41,458

36,585

10.5

25.3

Non-accrual loans

0

0

0

0.0

0.0

   Total past due and non-accrual loans

$76,028

$58,426

$59,384

30.1

28.0

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Year Ended

December 31,

Percent

Asset Quality Data

2013

2012

Variance

Non-Performing Assets

Non-performing loans (8)

   Non-accrual loans

$58,755

$66,004

-11.0

   Restructured loans

18,698

14,876

25.7

      Non-performing loans

77,453

80,880

-4.2

Other real estate owned (9)

40,681

35,257

15.4

   Non-performing loans and OREO

118,134

116,137

1.7

Non-performing investments 

797

2,809

-71.6

   Total non-performing assets

$118,931

$118,946

0.0

Non-performing loans / total loans

0.81%

0.99%

Non-performing loans / total originated loans (10)

0.95%

1.12%

Non-performing loans + OREO / total loans + OREO

1.24%

1.42%

Non-performing loans + OREO / total originated 

   loans + OREO (10)

1.44%

1.60%

Non-performing assets / total assets

0.88%

0.99%

Allowance Rollforward

Allowance for loan losses (originated portfolio) (10)

   Balance at beginning of period

$100,194

$100,662

-0.5

   Provision for loan losses

26,165

27,183

-3.7

   Net loan charge-offs

(21,475)

(27,651)

-22.3

   Allowance for loan losses (originated portfolio) (10)

104,884

100,194

4.7

Allowance for loan losses (acquired portfolio) (11)

   Balance at beginning of period

4,180

0

   Provision for loan losses 

4,924

4,119

   Net loan charge-offs

(3,204)

61

   Allowance for loan losses (acquired portfolio) (11)

5,900

4,180

41.1

      Total allowance for loan losses

$110,784

$104,374

6.1

Allowance for loan losses / total loans

1.17%

1.28%

Allowance for loan losses (originated loans) / total

   originated loans (10)

1.29%

1.38%

Allowance for loan losses (originated loans) / total

   non-performing loans  (8)

135.42%

123.88%

Net loan charge-offs (annualized) / total average loans

0.28%

0.35%

Net loan charge-offs on originated loans (annualized) / 

   total average originated loans (10)

0.28%

0.41%

Delinquency - Originated Portfolio (10)

Loans 30-89 days past due

$37,342

$46,205

-19.2

Loans 90+ days past due

7,971

6,706

18.9

Non-accrual loans

58,755

66,004

-11.0

   Total past due and non-accrual loans

$104,068

$118,915

-12.5

Total past due and non-accrual loans / total originated loans

1.28%

1.64%

Memo item:

Delinquency - Acquired Portfolio (11) (12)

Loans 30-89 days past due

$30,205

$22,799

32.5

Loans 90+ days past due

45,823

36,585

25.3

Non-accrual loans

0

0

0.0

   Total past due and non-accrual loans

$76,028

$59,384

28.0

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

2013

Fourth Quarter

Third 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

$130,027

$84

0.25%

$30,224

$13

0.17%

Taxable investment securities  (13)

2,162,444

11,381

2.06%

2,117,849

10,889

2.01%

Non-taxable investment securities  (14)

153,349

2,054

5.36%

157,624

2,122

5.39%

Residential mortgage loans held for sale

6,128

103

6.73%

12,060

134

4.45%

Loans  (14) (15)

9,322,742

105,719

4.51%

8,730,010

98,413

4.48%

   Total Interest Earning Assets  (14)

11,774,690

119,341

4.03%

11,047,767

111,571

4.01%

Cash and due from banks

199,986

185,419

Allowance for loan losses

(111,654)

(110,463)

Premises and equipment

155,310

147,804

Other assets

1,438,604

1,344,811

Total Assets

$13,456,936

$12,615,338

Liabilities

Deposits:

   Interest-bearing demand

$4,054,525

1,500

0.15%

$3,841,619

1,391

0.14%

   Savings

1,413,765

164

0.05%

1,387,869

162

0.05%

   Certificates and other time

2,609,294

5,274

0.80%

2,391,828

5,342

0.89%

Customer repurchase agreements

866,955

510

0.23%

748,249

419

0.22%

Other short-term borrowings

173,405

609

1.37%

318,024

703

0.86%

Long-term debt 

138,631

847

2.42%

91,659

719

3.11%

Junior subordinated debt

192,533

1,787

3.68%

194,206

1,800

3.68%

      Total Interest Bearing Liabilities  (14)

9,449,108

10,691

0.45%

8,973,454

10,536

0.47%

Non-interest bearing demand deposits

2,168,847

2,033,370

Other liabilities

144,312

132,763

Total Liabilities

11,762,267

11,139,587

Stockholders' equity

1,694,669

1,475,751

Total Liabilities and Stockholders' Equity

$13,456,936

$12,615,338

Net Interest Earning Assets

$2,325,582

$2,074,313

Net Interest Income (FTE)

108,650

101,035

Tax Equivalent Adjustment

(1,704)

(1,781)

Net Interest Income

$106,946

$99,254

Net Interest Spread

3.58%

3.55%

Net Interest Margin  (14)

3.67%

3.64%

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

2012

Fourth Quarter

Interest

Average

Average

Earned

Yield

Outstanding

or Paid

or Rate

Assets

Interest bearing deposits with banks

$116,885

$68

0.23%

Taxable investment securities  (13)

2,076,440

10,817

2.03%

Non-taxable investment securities  (14)

179,262

2,455

5.48%

Residential mortgage loans held for sale

18,945

181

3.83%

Loans  (14) (15)

8,028,865

95,855

4.75%

   Total Interest Earning Assets  (14)

10,420,397

109,376

4.18%

Cash and due from banks

199,451

Allowance for loan losses

(104,453)

Premises and equipment

144,702

Other assets

1,328,185

Total Assets

$11,988,282

Liabilities

Deposits:

   Interest-bearing demand

$3,578,072

1,834

0.21%

   Savings

1,208,616

253

0.08%

   Certificates and other time

2,578,226

7,650

1.18%

Customer repurchase agreements

867,404

603

0.27%

Other short-term borrowings

156,197

597

1.50%

Long-term debt 

88,956

791

3.54%

Junior subordinated debt

204,012

1,932

3.77%

      Total Interest Bearing Liabilities  (14)

8,681,483

13,660

0.63%

Non-interest bearing demand deposits

1,742,328

Other liabilities

164,042

Total Liabilities

10,587,853

Stockholders' equity

1,400,429

Total Liabilities and Stockholders' Equity

$11,988,282

Net Interest Earning Assets

$1,738,914

Net Interest Income (FTE)

95,716

Tax Equivalent Adjustment

(1,798)

Net Interest Income

$93,918

Net Interest Spread

3.56%

Net Interest Margin  (14)

3.66%

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

For the Year Ended December 31, 

2013

2012

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

$57,605

$129

0.22%

$94,719

$210

0.22%

Taxable investment securities  (13)

2,125,001

43,551

2.00%

2,031,289

47,161

2.27%

Non-taxable investment securities  (14)

160,601

8,737

5.44%

183,558

10,253

5.59%

Residential mortgage loans held for sale

17,772

720

4.05%

16,645

713

4.28%

Loans  (14) (15)

8,688,030

394,218

4.54%

7,880,254

380,951

4.83%

   Total Interest Earning Assets  (14)

11,049,009

447,355

4.05%

10,206,465

439,288

4.30%

Cash and due from banks

183,656

187,095

Allowance for loan losses

(109,050)

(103,590)

Premises and equipment

147,009

146,757

Other assets

1,370,061

1,346,094

Total Assets

$12,640,685

$11,782,821

Liabilities

Deposits:

   Interest-bearing demand

$3,844,865

5,825

0.15%

$3,497,352

7,636

0.22%

   Savings

1,358,386

656

0.05%

1,194,071

1,124

0.09%

   Certificates and other time

2,489,129

22,960

0.92%

2,691,597

33,753

1.25%

Customer repurchase agreements

794,436

1,850

0.23%

792,131

2,506

0.31%

Other short-term borrowings

231,326

2,573

1.10%

158,875

2,656

1.64%

Long-term debt 

103,772

3,115

3.00%

90,652

3,492

3.85%

Junior subordinated debt

199,296

7,365

3.70%

203,471

7,888

3.88%

      Total Interest Bearing Liabilities  (14)

9,021,210

44,344

0.49%

8,628,149

59,055

0.68%

Non-interest bearing demand deposits

1,963,431

1,615,419

Other liabilities

141,573

162,759

Total Liabilities

11,126,214

10,406,327

Stockholders' equity

1,514,471

1,376,494

Total Liabilities and Stockholders' Equity

$12,640,685

$11,782,821

Net Interest Earning Assets

$2,027,799

$1,578,316

Net Interest Income (FTE)

403,011

380,233

Tax Equivalent Adjustment

(6,969)

(7,382)

Net Interest Income

$396,042

$372,851

Net Interest Spread

3.56%

3.62%

Net Interest Margin  (14)

3.65%

3.73%

 

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.

2013

2012

Fourth

Third

Fourth

Quarter

Quarter

Quarter

Return on average tangible equity (2):

Net income (annualized)

$112,828

$125,505

$115,189

Amortization of intangibles, net of tax (annualized)

6,045

5,331

5,645

118,873

130,836

120,834

Average total stockholders' equity

1,694,669

1,475,751

1,400,430

Less:  Average intangibles

(804,098)

(748,592)

(715,962)

890,571

727,159

684,468

Return on average tangible equity (2)

13.35%

17.99%

17.65%

Return on average tangible common equity (2):

Net income available to common stockholders (annualized)

$112,828

$125,505

$115,189

Amortization of intangibles, net of tax (annualized)

6,045

5,331

5,645

118,873

130,836

120,834

Average total stockholders' equity

1,694,669

1,475,751

1,400,430

Less:  Average preferred stockholders' equity

(71,126)

0

0

Less:  Average intangibles

(804,098)

(748,592)

(715,962)

819,445

727,159

684,468

Return on average tangible common equity (2)

14.51%

17.99%

17.65%

Return on average tangible assets (3):

Net income (annualized)

$112,828

$125,505

$115,189

Amortization of intangibles, net of tax (annualized)

6,045

5,331

5,645

118,873

130,836

120,834

Average total assets

13,456,936

12,615,338

11,988,283

Less:  Average intangibles

(804,098)

(748,592)

(715,962)

12,652,838

11,866,746

11,272,321

Return on average tangible assets (3)

0.94%

1.10%

1.07%

Tangible book value per common share:

Total stockholders' equity

$1,774,383

$1,481,647

$1,402,069

Less:  preferred stockholders' equity

(106,882)

0

0

Less:  intangibles

(811,856)

(748,909)

(713,405)

855,645

732,738

688,664

Ending shares outstanding

158,967,211

145,263,435

139,929,242

Tangible book value per share

$5.38

$5.04

$4.92

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

For the Year Ended

December 31,

2013

2012

Return on average tangible equity (2):

Net income (annualized)

$117,804

$110,410

Amortization of intangibles, net of tax (annualized)

5,465

5,801

123,268

116,210

Average total stockholders' equity

1,514,471

1,376,493

Less:  Average intangibles

(752,894)

(717,031)

761,578

659,462

Return on average tangible equity (2)

16.19%

17.62%

Return on average tangible common equity (2):

Net income available to common stockholders (annualized)

$117,804

$110,410

Amortization of intangibles, net of tax (annualized)

5,465

5,801

123,268

116,210

Average total stockholders' equity

1,514,471

1,376,493

Less:  Average preferred stockholders' equity

(17,928)

0

Less:  Average intangibles

(752,894)

(717,031)

743,649

659,462

Return on average tangible common equity (2)

16.58%

17.62%

Return on average tangible assets (3):

Net income (annualized)

$117,804

$110,410

Amortization of intangibles, net of tax (annualized)

5,465

5,801

123,268

116,210

Average total assets

12,640,685

11,782,821

Less:  Average intangibles

(752,894)

(717,031)

11,887,792

11,065,789

Return on average tangible assets (3)

1.04%

1.05%

Tangible book value per common share:

Total stockholders' equity

$1,774,383

$1,402,069

Less:  preferred stockholders' equity

(106,882)

0

Less:  intangibles

(811,856)

(713,405)

855,645

688,664

Ending shares outstanding

158,967,211

139,929,242

Tangible book value per share

$5.38

$4.92

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

2013

2012

Fourth

Third

Fourth

Quarter

Quarter

Quarter

Tangible equity / tangible assets (period end):

Total stockholders' equity

$1,774,383

$1,481,647

$1,402,069

Less:  intangibles

(811,856)

(748,909)

(713,405)

962,527

732,738

688,664

Total assets

13,563,405

12,790,279

12,023,976

Less:  intangibles

(811,856)

(748,909)

(713,405)

12,751,549

12,041,370

11,310,571

Tangible equity / tangible assets (period end)

7.55%

6.09%

6.09%

Tangible common equity / tangible assets (period end):

Total stockholders' equity

$1,774,383

$1,481,647

$1,402,069

Less:  preferred stockholders' equity

(106,882)

0

0

Less:  intangibles

(811,856)

(748,909)

(713,405)

855,645

732,738

688,664

Total assets

13,563,405

12,790,279

12,023,976

Less:  intangibles

(811,856)

(748,909)

(713,405)

12,751,549

12,041,370

11,310,571

Tangible equity / tangible assets (period end)

6.71%

6.09%

6.09%

Tangible common equity, excluding AOCI / tangible

   assets (period end) (7):

Total stockholders' equity

$1,774,383

$1,481,647

$1,402,069

Less:  preferred stockholders' equity

(106,882)

0

0

Less:  intangibles

(811,856)

(748,909)

(713,405)

Less:  AOCI

56,924

66,171

46,224

912,569

798,909

734,888

Total assets

13,563,405

12,790,279

12,023,976

Less:  intangibles

(811,856)

(748,909)

(713,405)

12,751,549

12,041,370

11,310,571

Tangible equity, excluding AOCI / tangible

   assets (period end) (7)

7.16%

6.63%

6.50%

(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, FHLB prepayment

penalties, litigation settlement accrual, branch consolidation costs, loss on extinguishment of debt and merger costs by the sum of net interest income on 

a fully taxable equivalent basis plus non-interest income less gain on sale of an acquired building, gain on extinguishment of debt, securities gains and net 

impairment losses on securities plus losses on asset disposals related to the branch consolidation project.

(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, unrealized losses on derivative instruments and unrecognized pension and postretirement obligations.

(8)

Does not include loans acquired at fair value ("acquired portfolio").

(9)

Includes all other real estate owned, including those balances acquired through business combinations that have been in acquired loans prior to foreclosure.

(10)

"Originated Portfolio" or "Originated Loans" equals loans and leases not included by definition in the Acquired Portfolio.

(11)

"Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805 which was effective January 1, 2009.

The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered

accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their

expected cash flows.  Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first

applied against the non-accretable difference established in purchase accounting and then to any allowance for loan losses recognized subsequent to acquisition.

(12)

Represents contractual balances.

(13)

The average balances and yields earned on taxable investment securities are based on historical cost.

(14)

The interest income amounts are reflected on a FTE basis, which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the

federal statutory tax rate of 35% for each period presented.  The yields on earning assets and the net interest margin are presented on an FTE and annualized

basis.  The rates paid on interest-bearing liabilities are also presented on an annualized basis.

(15)

Average balances for loans include non-accrual loans.  Loans consist of average total loans less average unearned income.  The amount of loan fees

included in interest income is immaterial.

 

SOURCE F.N.B. Corporation



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