F.N.B. Corporation Reports Fourth Quarter and Full Year 2009 Results

Jan 25, 2010, 16:01 ET from F.N.B. Corporation

HERMITAGE, Pa., Jan. 25 /PRNewswire-FirstCall/ -- F.N.B. Corporation (NYSE: FNB) today reported financial results for the fourth quarter and full year ended December 31, 2009.  Net income was $4.6 million, or $0.04 per diluted share, for the fourth quarter of 2009, compared to third quarter of 2009 net income available to common shareholders of $4.8 million, or $0.04 per diluted common share, and a net loss for the fourth quarter of 2008 of $18.9 million, or $0.21 per diluted share.  Full year 2009 net income available to common shareholders totaled $32.8 million, or $0.32 per diluted common share, compared to $35.6 million, or $0.44 per diluted share, for the full year ended December 31, 2008.

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Results for the fourth quarter of 2009 included $2.4 million (after-tax) in non-cash other-than-temporary impairment charges primarily related to pooled trust preferred securities and $0.6 million (after-tax) in litigation settlement costs.  Results for the fourth quarter of 2009 also included a $6.2 million (after-tax) increase in the provision for loan losses, compared to the third quarter of 2009, primarily related to the Florida portfolio.  In total, these charges reduced net income for the fourth quarter of 2009 by $9.2 million or $0.08 per diluted share.

“FNB continues to focus on its organic growth strategy and capitalizing on the opportunities created by the competitive disruption in our Pennsylvania markets,” said Stephen J. Gurgovits, President and Chief Executive Officer of F.N.B. Corporation.  “We are pleased with the operating success we are achieving growing loans and deposits, generating revenue growth and maintaining expense control in a challenging credit environment.”

F.N.B. Corporation’s performance ratios this quarter were as follows: return on average tangible common equity (non-GAAP measure) was 4.66%; return on average equity was 1.72%; return on average tangible assets (non-GAAP measure) was 0.28% and return on average assets was 0.21%.  A reconciliation of GAAP measures to non-GAAP measures is included in the tables that accompany this press release.  

Net Interest Income

Net interest income on a fully taxable equivalent basis for the fourth quarter of 2009 totaled $71.2 million, representing an increase of $2.1 million, or 11.8% annualized, over the third quarter of 2009.  The improvement of net interest income in the fourth quarter reflects a combination of a 7 basis point expansion of the net interest margin and a 4.8% annualized increase in average earning assets.  The fourth quarter net interest margin of 3.85% marked the third consecutive quarter in which the margin has expanded.

Total average loans for the fourth quarter of 2009 were $5.9 billion, representing an increase of $62.5 million, or 4.3% on an annualized basis, compared to the third quarter of 2009.  Average commercial loans in the fourth quarter increased $54.6 million, or 6.8% annualized, compared to the third quarter of 2009, with the average Pennsylvania commercial loan portfolio growing $69.9 million, or 9.5% annualized, and the average Florida portfolio decreasing $15.3 million or 22.2% annualized.

Average consumer loans in the fourth quarter of 2009 were essentially unchanged, with growth of $1.8 million compared to the third quarter of 2009.  This total includes $11.2 million or 3.2% annualized growth in home equity lending (comprised of consumer lines of credit and direct installment loans) through a combination of customer preferences for these products and modest increases in line utilization.  This growth was partially offset by an $8.1 million, or 5.9% annualized, decrease in the average indirect loan portfolio primarily related to seasonally lower auto sales in the fourth quarter of 2009 and the discontinuation of the federal government’s “Cash for Clunkers” program at the end of the third quarter of 2009.

“The growth in the Pennsylvania commercial loan portfolio demonstrates the strength of our commercial lending business as we capitalize on the significant opportunities created by competitor disruption in the marketplace,” noted Mr. Gurgovits.  “We are pleased that our commercial team generated 115 significant new commercial relationships with over $400 million in new commitments during 2009.”

“The momentum to generate strong growth in transaction deposits and treasury management balances also continued in the fourth quarter,” said Mr. Gurgovits.  “We are pleased with these results as we are winning new customer relationships and gaining market share.”

Average transaction deposits in the fourth quarter increased $48.7 million, or 4.8% annualized, compared to the third quarter of 2009.  Average treasury management balances grew $70.9 million, or 60.5% annualized in the fourth quarter of 2009, compared to the third quarter of 2009, due to a combination of new account acquisition and seasonality factors.  Average time deposits decreased $16.6 million, or 3.0% annualized, in the fourth quarter of 2009, compared to the third quarter, as FNB continues to focus its strategy on building transaction accounts.  

Non-Interest Income

Non-interest income increased to $25.4 million in the fourth quarter of 2009, compared to $24.0 million in the third quarter of 2009, due to increases in securities commissions and fees and other non-interest income, which were partially offset by other-than-temporary impairment charges.  

In looking at the major components of the fourth quarter non-interest income, securities commissions and fees increased $0.8 million, or 52.5%, due to a successful fall sales campaign.  Additionally, other non-interest income increased $1.1 million to $4.5 million for the fourth quarter of 2009, reflecting a $0.7 million increase in swap fees earned from commercial customers.  Non-interest income, excluding other-than-temporary impairment charges, represented 29% of revenue for the fourth quarter of 2009, compared to 28% for the third quarter of 2009.  

The impairment losses recognized for the fourth quarter of 2009 totaled $3.7 million, compared to $3.3 million for the third quarter of 2009.  The current quarter impairment charges were primarily related to three pooled trust preferred securities that experienced deterioration in collateral performance and higher levels of future projected defaults.  The pooled trust preferred securities portfolio is comprised of 13 securities with an original cost of $41.3 million.  To date, credit-related impairment charges of $16.1 million have been recognized on this portfolio, which have reduced the carrying value to $25.2 million as of December 31, 2009, with a remaining after-tax unrealized loss of $11.4 million included in accumulated other comprehensive income.

Non-Interest Expense

Non-interest expense totaled $65.8 million in the fourth quarter of 2009, compared to $62.3 million in the third quarter of 2009.  The increased expense is a result of a $2.6 million increase in other real estate owned (OREO) expense (Florida related) and net litigation settlement costs of $1.0 million.  The $1.0 million in litigation costs is comprised of a $1.7 million settlement liability (previously reported in a Form 8-K dated December 29, 2009), net of $0.7 million covered under an insurance policy.

Credit Quality

“We continue to be pleased with the performance of our Pennsylvania and Regency loan portfolios at this point in the economic cycle,” remarked Mr. Gurgovits.  “The duration of the slow economic environment, including high unemployment rates, remains a challenge for businesses and consumers throughout the country.  Regarding our Florida portfolio, we continue to make progress reducing our exposure in the more challenging Florida market.”  

Changes in overall credit quality for the fourth quarter of 2009 were primarily due to the performance of the Florida portfolio.  Non-performing loans and OREO as a percentage of total loans and OREO at December 31, 2009 increased 22 basis points to 2.84% compared to 2.62% at September 30, 2009.  Annualized net charge-offs equaled 1.83% of average loans for the fourth quarter of 2009, primarily driven by increased net charge-offs related to Florida, compared to 0.68% of average loans for the third quarter of 2009.  

At December 31, 2009, the ratio of the allowance for loan losses to total loans equaled 1.79%, compared to 1.81% at September 30, 2009.  As a percentage of non-performing loans, the allowance for loan losses equaled 71.9% at December 31, 2009, compared to 79.1% at September 30, 2009.  The provision for loan losses totaled $25.9 million for the fourth quarter of 2009, which was $9.5 million higher than the third quarter of 2009.

The Pennsylvania loan portfolio totaled $5.4 billion at December 31, 2009 (93.0% of the total loan portfolio) and delivered credit quality metrics reflecting a slow economic environment characterized by a slightly increasing level of non-performing loans and net charge-offs. Pennsylvania non-performing loans and OREO totaled $76.0 million or 1.39% of total loans and OREO at December 31, 2009, compared to $69.5 million or 1.28% at September 30, 2009.  Net loan charge-offs totaled $5.1 million or 0.37% annualized of average loans for the fourth quarter of 2009, up slightly compared to $4.5 million or 0.33% annualized of average loans for the third quarter of 2009.  Total past dues and non-accrual loans were 2.07% of total loans at December 31, 2009, a slight increase compared to 2.02% at September 30, 2009.

The Florida loan portfolio totaled $243.9 million at December 31, 2009 (4.2% of the total loan portfolio) and delivered credit quality metrics reflecting the continued challenging economic environment and weakness in the Florida real estate market.  Florida non-performing loans and OREO totaled $82.1 million or 32.28% of total loans and OREO at December 31, 2009, compared to $76.1 million or 27.22% at September 30, 2009.  Net loan charge-offs totaled $20.3 million for the fourth quarter of 2009, compared to $4.1 million for the third quarter of 2009.  The increased charge-offs were largely a result of declining property values in the Florida market.  

The Regency loan portfolio totaled $162.0 million at December 31, 2009 (2.8% of the total loan portfolio) and continued to deliver good credit quality metrics for a consumer finance company.  Regency non-performing loans and OREO totaled $8.8 million or 5.40% of total loans and OREO at December 31, 2009, compared to $8.0 million or 5.02% at September 30, 2009.  Net loan charge-offs totaled $1.7 million or 4.30% annualized of average loans for the fourth quarter of 2009, compared to $1.5 million or 3.64% annualized of average loans for the third quarter of 2009.  This increase reflects expected fourth quarter seasonality and the low level of charge-offs experienced in this portfolio during the third quarter of 2009.  Total past dues and non-accrual loans were 4.57% of total loans at December 31, 2009, slightly lower than 4.58% at September 30, 2009.

Capital Position

The Corporation’s capital ratios continue to exceed federal bank regulatory agency “well capitalized” thresholds.  As of December 31, 2009, the Corporation’s estimated total risk-based capital ratio was 12.7%, the estimated tier 1 risk-based capital ratio was 11.3% and the leverage capital ratio was 8.7%.  These compare to the same ratios as of September 30, 2009 of 13.0%, 11.5% and 8.7% and as of December 31, 2008 of 11.1%, 9.7% and 7.3%, respectively.    

At December 31, 2009, the tangible common equity to tangible assets ratio (non-GAAP measure) equaled 5.84%, compared to 6.02% at September 30, 2009 and 4.51% at December 31, 2008.  The tangible book value per share (non-GAAP measure) equaled $4.17, compared to $4.24 at September 30, 2009 and $3.92 at December 31, 2008.      

Full Year 2009 Results

For the year ended December 31, 2009, F.N.B. Corporation’s net income available to common shareholders totaled $32.8 million, or $0.32 per diluted common share, compared to $35.6 million, or $0.44 per diluted share, for the year ended December 31, 2008.  For 2009, F.N.B.’s return on average tangible common equity (non-GAAP measure) was 8.74%, return on average equity was 3.87%, return on average tangible assets (non-GAAP measure) was 0.57%, and return on average assets was 0.48%.  

Net interest income on a fully taxable equivalent basis totaled $272.9 million for 2009, representing an increase of $15.1 million or 5.8% over 2008.  The 2009 increased net interest income reflects growth in average earning assets partially offset by a lower net interest margin given the lower interest rate environment compared to 2008.  Average earning assets increased 9.0% in 2009, with average loans increasing 7.8% compared to 2008.  Loan growth occurred in all categories other than direct installments (3.9% decrease), led by 9.6% growth in commercial lending.  Average deposits and treasury management balances increased 13.1%, with average treasury management balances increasing 26.6% and average transaction deposits growing 16.2% compared to 2008.  These increases reflect organic growth and the benefit from acquisitions completed in 2008.  

Non-interest income totaled $106.0 million for 2009, an increase of 23.1% compared to 2008.  Service charges increased 5.6%, insurance commissions increased 7.1%, gain on sale of residential mortgage loans increased 67.8% and other non-interest income increased $6.4 million or 63.4%.  The increase in other non-interest income was largely a result of higher impairment losses in 2008, a gain on the sale of a building in 2009 and higher recoveries on impaired loans acquired through acquisitions.  Results for 2009, compared to 2008, included lower non-cash other-than-temporary impairment charges on securities of $9.3 million, lower securities commissions and fees of 8.2% and lower trust income of 2.3%.  The lower securities commissions and fees and lower trust income are primarily due to the negative effect of the market conditions experienced during late 2008 and 2009.  The higher non-interest income also reflects the benefit from acquisitions completed in 2008.      

Non-interest expense totaled $255.3 million for 2009, an increase of 14.7% compared to 2008.  Other non-interest expense increases for 2009 include higher FDIC insurance premiums of $13.0 million, higher OREO-related expenses of $4.0 million, and higher litigation costs of $1.0 million as compared to 2008, which were partially offset by $4.7 million in merger costs incurred in 2008.  Higher non-interest expense also reflects the effect of the acquisitions in 2008.  As a result of these increases, the efficiency ratio was 65.5% for 2009, compared to 62.9% for 2008.  

The provision for loan losses for 2009 totaled $66.8 million compared to $72.4 million for 2008, a 7.7% decrease.  The provision in each of 2009 and 2008 was substantially higher than historical levels primarily due to the performance of the Florida loan portfolio.

Conference Call

F.N.B. Corporation will host its quarterly conference call to discuss its financial results for the fourth quarter of 2009 on Tuesday, January 26, 2010, at 8:00 AM Eastern Time.  The call can be accessed by dialing (877) 591-4951 or (719) 325-4821 for international callers; the confirmation number is 5204528.

A replay of the call will be available from 11:00 AM Eastern Time on the day of the call until midnight Eastern Time on Tuesday, February 2, 2010.  The replay can be accessed by dialing (888) 203-1112 or (719) 457-0820 for international callers; the confirmation number is 5204528.   A transcript of the call will be posted to the “Shareholder and Investor Relations” section of F.N.B. Corporation’s Web site at www.fnbcorporation.com.

About F.N.B. Corporation

F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $8.7 billion as of December 31, 2009. 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 and Ohio, 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 Bank Capital Services. It also operates consumer finance offices in Tennessee and loan production offices in Pennsylvania and Florida.

Forward-looking Statements

This press release of F.N.B. Corporation and the reports F.N.B. Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of F.N.B. Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause F.N.B. Corporation’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which F.N.B. Corporation is engaged; (6) technological issues which may adversely affect F.N.B. Corporation’s financial operations or customers; (7) changes in the securities markets  (8) risk factors mentioned in the reports and registration statements F.N.B. Corporation files with the Securities and Exchange Commission; (9) housing prices; (10) job market; (11) consumer confidence and spending habits; (12) estimates of fair value of certain F.N.B. Corporation assets and liabilities or (13) various monetary and fiscal policies and regulations of the U.S. Government.  F.N.B. Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

DATA SHEETS FOLLOW

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

4th Qtr 2009 -

4th Qtr 2009 -

2009

2008

3rd Qtr 2009

4th Qtr 2008

Fourth

Third

Fourth

Percent

Percent

Statement of earnings

Quarter

Quarter

Quarter

Variance

Variance

Interest income

$96,053

$96,533

$107,158

-0.5

-10.4

Interest expense

26,468

28,989

38,793

-8.7

-31.8

Net interest income

69,585

67,544

68,365

3.0

1.8

Taxable equivalent adjustment

1,661

1,644

1,597

1.0

4.0

Net interest income (FTE) (1)

71,246

69,188

69,962

3.0

1.8

Provision for loan losses

25,924

16,455

51,298

57.5

-49.5

Net interest income after provision (FTE)

45,322

52,733

18,664

-14.1

142.8

Impairment losses on securities (2)

(9,366)

(14,234)

(16,698)

n/m

n/m

Non-credit related losses on securities not expected

  to be sold (recognized in other comprehensive income)

5,707

10,943

0

n/m

n/m

Net impairment losses on securities

(3,659)

(3,291)

(16,698)

n/m

n/m

Service charges

14,781

14,760

14,643

0.1

0.9

Insurance commissions and fees

3,794

3,960

3,508

-4.2

8.2

Securities commissions and fees

2,213

1,451

2,500

52.5

-11.5

Trust income

3,025

2,856

3,081

5.9

-1.8

Gain on sale of securities

30

154

5

-80.5

554.5

Gain on sale of loans

720

666

366

8.1

96.4

Other

4,483

3,406

853

31.7

425.8

Total non-interest income

25,387

23,962

8,258

5.9

207.4

Salaries and employee benefits

31,769

31,377

29,536

1.2

7.6

Occupancy and equipment

9,443

9,258

9,414

2.0

0.3

Amortization of intangibles

1,728

1,732

1,988

-0.2

-13.0

Other

22,841

19,954

17,478

14.5

30.7

Total non-interest expense

65,781

62,321

58,416

5.6

12.6

Income (loss) before income taxes

4,928

14,374

(31,494)

-65.7

-115.6

Taxable equivalent adjustment

1,661

1,644

1,597

1.0

4.0

Income taxes (benefit)

(1,289)

2,424

(14,185)

-153.2

-90.9

Net income

4,556

10,306

(18,906)

-55.8

-124.1

Preferred stock dividends and discount amortization

0

5,496

0

n/m

n/m

Net income available to common shareholders

$4,556

$4,810

($18,906)

-5.3

-124.1

Earnings (loss) per common share

Basic

$0.04

$0.04

($0.21)

0.0

-119.0

Diluted

$0.04

$0.04

($0.21)

0.0

-119.0

Performance ratios

Return on average equity

1.72%

3.62%

-7.74%

Return on average tangible equity (3) (7)

4.66%

8.13%

-17.67%

Return on average tangible common equity (3) (7)

4.66%

4.85%

-17.67%

Return on average assets

0.21%

0.47%

-0.89%

Return on average tangible assets (4) (7)

0.28%

0.56%

-0.89%

Net interest margin (FTE) (1)

3.85%

3.78%

3.88%

Yield on earning assets (FTE) (1)

5.27%

5.36%

6.02%

Cost of funds

1.60%

1.76%

2.39%

Efficiency ratio (FTE) (1) (5)

66.28%

65.04%

72.14%

Common stock data

Average basic shares outstanding

113,592,665

113,571,703

89,304,839

0.0

27.2

Average diluted shares outstanding

113,966,034

113,869,785

89,588,706

0.1

27.2

Ending shares outstanding

114,111,695

113,990,095

89,700,152

0.1

27.2

Common book value per share

$9.14

$9.23

$10.32

-1.0

-11.4

Tangible common book value per share (7)

$4.17

$4.24

$3.92

-1.7

6.3

Tangible common book value per share

  excluding AOCI (6) (7)

$4.43

$4.50

$4.21

-1.4

5.2

Dividend payout ratio (common)

301.32%

285.14%

-114.06%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

For the Year

Ended December 31,

Percent

Statement of earnings

2009

2008

Variance

Interest income

$387,722

$409,781

-5.4

Interest expense

121,179

157,989

-23.3

Net interest income

266,543

251,792

5.9

Taxable equivalent adjustment

6,350

6,037

5.2

Net interest income (FTE) (1)

272,893

257,829

5.8

Provision for loan losses

66,802

72,371

-7.7

Net interest income after provision (FTE)

206,091

185,458

11.1

Impairment losses on securities (2)

(25,232)

(17,189)

n/m

Non-credit related losses on securities not expected

  to be sold (recognized in other comprehensive income)

17,339

0

n/m

Net impairment losses on securities

(7,893)

(17,189)

n/m

Service charges

57,736

54,691

5.6

Insurance commissions and fees

16,672

15,572

7.1

Securities commissions and fees

7,460

8,128

-8.2

Trust income

11,811

12,095

-2.3

Gain on sale of securities

528

834

-36.7

Gain on sale of loans

3,061

1,824

67.8

Other

16,603

10,160

63.4

Total non-interest income

105,978

86,115

23.1

Salaries and employee benefits

126,865

116,819

8.6

Occupancy and equipment

38,249

34,245

11.7

Amortization of intangibles

7,088

6,442

10.0

Other

83,137

65,198

27.5

Total non-interest expense

255,339

222,704

14.7

Income (loss) before income taxes

56,730

48,869

16.1

Taxable equivalent adjustment

6,350

6,037

5.2

Income taxes (benefit)

9,269

7,237

28.1

Net income

41,111

35,595

15.5

Preferred stock dividends and discount amortization

8,308

0

n/m

Net income available to common shareholders

$32,803

$35,595

-7.8

Earnings (loss) per common share

Basic

$0.32

$0.44

-27.3

Diluted

$0.32

$0.44

-27.3

Performance ratios

Return on average equity

3.87%

4.20%

Return on average tangible equity (3) (7)

9.30%

10.63%

Return on average tangible common equity (3) (7)

8.74%

10.63%

Return on average assets

0.48%

0.46%

Return on average tangible assets (4) (7)

0.57%

0.55%

Net interest margin (FTE) (1)

3.75%

3.88%

Yield on earning assets (FTE) (1)

5.42%

6.25%

Cost of funds

1.86%

2.66%

Efficiency ratio (FTE) (1) (5)

65.52%

62.88%

Common stock data

Average basic shares outstanding

102,580,415

80,654,153

27.2

Average diluted shares outstanding

102,849,334

80,997,987

27.0

Ending shares outstanding

114,111,695

89,700,152

27.2

Common book value per share

$9.14

$10.32

-11.4

Tangible common book value per share (7)

$4.17

$3.92

6.3

Tangible common book value per share

  excluding AOCI (6) (7)

$4.43

$4.21

5.2

Dividend payout ratio (common)

149.50%

219.92%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

4th Qtr 2009 -

4th Qtr 2009 -

2009

2008

3rd Qtr 2009

4th Qtr 2008

Fourth

Third

Fourth

Percent

Percent

Average balances

Quarter

Quarter

Quarter

Variance

Variance

Total assets

$8,681,532

$8,701,853

$8,414,609

-0.2

3.2

Earning assets

7,369,320

7,281,709

7,197,213

1.2

2.4

Securities

1,489,608

1,466,176

1,330,686

1.6

11.9

Short-term investments

3,202

1,520

4,907

110.7

-34.8

Loans, net of unearned income

5,876,510

5,814,013

5,861,620

1.1

0.3

Allowance for loan losses

110,974

103,249

76,400

7.5

45.3

Goodwill and intangibles

568,666

570,705

575,668

-0.4

-1.2

Deposits and treasury management accounts (8)

6,843,748

6,740,656

6,529,246

1.5

4.8

Short-term borrowings

130,430

118,274

128,081

10.3

1.8

Long-term debt

346,819

412,411

494,065

-15.9

-29.8

Trust preferred securities

204,793

204,962

205,468

-0.1

-0.3

Shareholders' equity - common

1,052,483

1,056,171

972,138

-0.3

8.3

Shareholders' equity - preferred

0

72,727

0

-100.0

0.0

Asset quality data

Non-accrual loans

$133,891

$125,630

$139,607

6.6

-4.1

Restructured loans

11,624

8,282

3,872

40.4

200.2

Non-performing loans

145,515

133,912

143,479

8.7

1.4

Other real estate owned

21,367

19,741

9,177

8.2

132.8

Total non-performing loans and OREO

166,882

153,653

152,656

8.6

9.3

Non-performing investments

4,825

5,758

10,456

-16.2

-53.9

Non-performing assets

$171,707

$159,411

$163,112

7.7

5.3

Net loan charge-offs

$27,161

$9,978

$21,148

172.2

28.4

Allowance for loan losses

104,655

105,892

104,730

-1.2

-0.1

Non-performing loans / total loans

2.49%

2.29%

2.47%

Non-performing loans + OREO / total loans + OREO

2.84%

2.62%

2.62%

Allowance for loan losses / total loans

1.79%

1.81%

1.80%

Allowance for loan losses /

   non-performing loans

71.92%

79.08%

72.99%

Net loan charge-offs (annualized) /

   average loans

1.83%

0.68%

1.44%

Balances at period end

Total assets

$8,709,077

$8,595,872

$8,364,811

1.3

4.1

Earning assets

7,358,132

7,357,135

7,160,200

0.0

2.8

Securities

1,490,630

1,497,378

1,326,133

-0.5

12.4

Short-term investments

5,386

3,293

2,978

63.5

80.9

Loans, net of unearned income

5,849,361

5,837,402

5,820,380

0.2

0.5

Goodwill and intangibles

567,851

569,579

574,507

-0.3

-1.2

Deposits and treasury management accounts (8)

6,917,007

6,737,098

6,469,328

2.7

6.9

Short-term borrowings

132,383

128,092

181,558

3.4

-27.1

Long-term debt

324,877

379,257

490,250

-14.3

-33.7

Trust preferred securities

204,711

204,880

205,386

-0.1

-0.3

Shareholders' equity - common

1,043,302

1,052,589

925,984

-0.9

12.7

Shareholders' equity - preferred

0

0

0

0.0

0.0

Capital ratios

Equity/assets (period end)

11.98%

12.25%

11.07%

Leverage ratio

8.68%

8.73%

7.34%

Tangible equity/tangible assets (period end) (7)

5.84%

6.02%

4.51%

Tangible common equity/tangible assets (period end) (6)

5.84%

6.02%

4.51%

Tangible common equity, excluding AOCI/

  tangible assets (period end) (6) (7)

6.22%

6.39%

4.85%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Year

Ended December 31,

Percent

Average balances

2009

2008

Variance

Total assets

$8,606,188

$7,696,895

11.8

Earning assets

7,247,283

6,649,735

9.0

Securities

1,399,444

1,220,772

14.6

Short-term investments

16,663

18,941

-12.0

Loans, net of unearned income

5,831,176

5,410,022

7.8

Allowance for loan losses

107,015

67,962

57.5

Goodwill and intangibles

571,492

473,228

20.8

Deposits and treasury management accounts (8)

6,706,830

5,932,217

13.1

Short-term borrowings

114,341

143,154

-20.1

Long-term debt

419,570

498,262

-15.8

Trust preferred securities

205,045

192,060

6.8

Shareholders' equity - common

999,502

847,417

17.9

Shareholders' equity - preferred

63,602

0

0.0

Asset quality data

Non-accrual loans

$133,891

$139,607

-4.1

Restructured loans

11,624

3,872

200.2

Non-performing loans

145,515

143,479

1.4

Other real estate owned

21,367

9,177

132.8

Total non-performing loans and OREO

166,882

152,656

9.3

Non-performing investments

4,825

10,456

0.0

Non-performing assets

$171,707

$163,112

5.3

Net loan charge-offs

$66,892

$32,596

105.2

Allowance for loan losses

104,655

104,730

-0.1

Non-performing loans / total loans

2.49%

2.47%

Non-performing loans + OREO / total loans + OREO

2.84%

2.62%

Allowance for loan losses / total loans

1.79%

1.80%

Allowance for loan losses /

   non-performing loans

71.92%

72.99%

Net loan charge-offs (annualized) /

   average loans

1.15%

0.60%

Balances at period end

Total assets

$8,709,077

$8,364,811

4.1

Earning assets

7,358,132

7,160,200

2.8

Securities

1,490,630

1,326,133

12.4

Short-term investments

5,386

2,978

80.9

Loans, net of unearned income

5,849,361

5,820,380

0.5

Goodwill and intangibles

567,851

574,507

-1.2

Deposits and treasury management accounts (8)

6,917,007

6,469,328

6.9

Short-term borrowings

132,383

181,558

-27.1

Long-term debt

324,877

490,250

-33.7

Trust preferred securities

204,711

205,386

-0.3

Shareholders' equity - common

1,043,302

925,984

12.7

Shareholders' equity - preferred

0

0

0.0

Capital ratios

Equity/assets (period end)

11.98%

11.07%

Leverage ratio

8.68%

7.34%

Tangible equity/tangible assets (period end) (7)

5.84%

4.51%

Tangible common equity/tangible assets (period end) (6)

5.84%

4.51%

Tangible common equity, excluding AOCI/

  tangible assets (period end) (6) (7)

6.22%

4.85%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

4th Qtr 2009 -

4th Qtr 2009 -

2009

2008

3rd Qtr 2009

4th Qtr 2008

Fourth

Third

Fourth

Percent

Percent

Average balances

Quarter

Quarter

Quarter

Variance

Variance

Loans:

Commercial

$3,250,530

$3,195,950

$3,203,713

1.7

1.5

Direct installment

990,573

997,319

1,083,072

-0.7

-8.5

Residential mortgages

612,146

613,375

651,141

-0.2

-6.0

Indirect installment

535,856

544,002

522,633

-1.5

2.5

Consumer LOC

401,127

383,207

332,983

4.7

20.5

Other

86,278

80,160

68,078

7.6

26.7

  Total loans

$5,876,510

$5,814,013

$5,861,620

1.1

0.3

Deposits:

Non-interest bearing deposits

$978,110

$951,112

$918,143

2.8

6.5

Savings and NOW

3,122,911

3,101,168

2,847,628

0.7

9.7

Certificates of deposit and other time deposits

2,206,537

2,223,126

2,331,236

-0.7

-5.3

  Total deposits

6,307,558

6,275,406

6,097,007

0.5

3.5

Treasury management accounts (8)

536,190

465,250

432,239

15.2

24.0

  Total deposits and treasury management accounts (8)

$6,843,748

$6,740,656

$6,529,246

1.5

4.8

Balances at period end

Loans:

Commercial

$3,234,738

$3,226,720

$3,173,941

0.2

1.9

Direct installment

985,746

993,863

1,070,791

-0.8

-7.9

Residential mortgages

605,219

594,586

638,356

1.8

-5.2

Indirect installment

527,818

544,579

531,430

-3.1

-0.7

Consumer LOC

408,469

395,366

340,750

3.3

19.9

Other

87,371

82,288

65,112

6.2

34.2

  Total loans

$5,849,361

$5,837,402

$5,820,380

0.2

0.5

Deposits:

Non-interest bearing deposits

$992,298

$972,859

$919,539

2.0

7.9

Savings and NOW

3,182,909

3,072,601

2,816,628

3.6

13.0

Certificates of deposit and other time deposits

2,205,016

2,213,323

2,318,456

-0.4

-4.9

  Total deposits

6,380,223

6,258,783

6,054,623

1.9

5.4

Treasury management accounts (8)

536,784

478,315

414,705

12.2

29.4

  Total deposits and treasury management accounts (8)

$6,917,007

$6,737,098

$6,469,328

2.7

6.9

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Year

Ended December 31,

Percent

Average balances

2009

2008

Variance

Loans:

Commercial

$3,204,334

$2,922,869

9.6

Direct installment

1,013,099

1,054,167

-3.9

Residential mortgages

623,736

607,443

2.7

Indirect installment

538,031

472,894

13.8

Consumer LOC

374,164

300,014

24.7

Other

77,812

52,635

47.8

  Total loans

$5,831,176

$5,410,022

7.8

Deposits:

Non-interest bearing deposits

$940,808

$825,083

14.0

Savings and NOW

3,034,843

2,596,378

16.9

Certificates of deposit and other time deposits

2,258,551

2,137,555

5.7

  Total deposits

6,234,202

5,559,016

12.1

Treasury management accounts (8)

472,628

373,201

26.6

  Total deposits and treasury management accounts (8)

$6,706,830

$5,932,217

13.1

Balances at period end

Loans:

Commercial

$3,234,738

$3,173,941

1.9

Direct installment

985,746

1,070,791

-7.9

Residential mortgages

605,219

638,356

-5.2

Indirect installment

527,818

531,430

-0.7

Consumer LOC

408,469

340,750

19.9

Other

87,371

65,112

34.2

  Total loans

$5,849,361

$5,820,380

0.5

Deposits:

Non-interest bearing deposits

$992,298

$919,539

7.9

Savings and NOW

3,182,909

2,816,628

13.0

Certificates of deposit and other time deposits

2,205,016

2,318,456

-4.9

  Total deposits

6,380,223

6,054,623

5.4

Treasury management accounts (8)

536,784

414,705

29.4

  Total deposits and treasury management accounts (8)

$6,917,007

$6,469,328

6.9

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

Fourth Quarter 2009

Bank - PA

Bank - FL

Regency

Total

Asset quality data, by geographic region

Non-accrual loans

$60,166   

$71,737   

$1,988   

$133,891   

Restructured loans

5,994   

0   

5,630   

11,624   

Non-performing loans

66,160   

71,737   

7,618   

145,515   

Other real estate owned

9,836   

10,341   

1,190   

21,367   

Total non-performing loans and OREO

75,996   

82,078   

8,808   

166,882   

Non-performing investments

4,825   

0   

0   

4,825   

Non-performing assets

$80,821   

$82,078   

$8,808   

$171,707   

Net loan charge-offs

$5,122   

$20,301   

$1,738   

$27,161   

Provision for loan losses

10,420   

13,463   

2,041   

25,924   

Allowance for loan losses

78,061   

19,789   

6,805   

104,655   

Loans, net of unearned income

5,443,443   

243,912   

162,006   

5,849,361   

Non-performing loans / total loans

1.22%

29.41%

4.70%

2.49%

Non-performing loans + OREO / total loans + OREO

1.39%

32.28%

5.40%

2.84%

Allowance for loan losses / total loans

1.43%

8.11%

4.20%

1.79%

Allowance for loan losses /

   non-performing loans

117.99%

27.59%

89.33%

71.92%

Net loan charge-offs (annualized) /

   average loans

0.37%

31.25%

4.30%

1.83%

Loans 30 - 89 days past due

$42,642   

$0   

$2,796   

$45,438   

Loans 90+ days past due

9,851   

0   

2,620   

12,471   

Non-accrual loans

60,166   

71,737   

1,988   

133,891   

  Total past due and non-accrual loans

$112,659   

$71,737   

$7,404   

$191,800   

Total past due and non-accrual loans/total loans

2.07%

29.41%

4.57%

3.28%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

Third Quarter 2009

Bank - PA

Bank - FL

Regency

Total

Asset quality data, by geographic region

Non-accrual loans

$55,454

$68,073

$2,103

$125,630

Restructured loans

3,650

0

4,632

8,282

Non-performing loans

59,104

68,073

6,735

133,912

Other real estate owned

10,380

8,067

1,294

19,741

Total non-performing loans and OREO

69,484

76,140

8,029

153,653

Non-performing investments

5,758

0

0

5,758

Non-performing assets

$75,242

$76,140

$8,029

$159,411

Net loan charge-offs

$4,469

$4,059

$1,450

$9,978

Provision for loan losses

7,555

7,379

1,521

16,455

Allowance for loan losses

72,764

26,627

6,501

105,892

Loans, net of unearned income

5,407,215

271,634

158,553

5,837,402

Non-performing loans / total loans

1.09%

25.06%

4.25%

2.29%

Non-performing loans + OREO / total loans + OREO

1.28%

27.22%

5.02%

2.62%

Allowance for loan losses / total loans

1.35%

9.80%

4.10%

1.81%

Allowance for loan losses /

   non-performing loans

123.11%

39.12%

96.53%

79.08%

Net loan charge-offs (annualized) /

   average loans

0.33%

5.90%

3.64%

0.68%

Loans 30 - 89 days past due

$43,140

$2,700

$2,853

$48,693

Loans 90+ days past due

10,827

0

2,298

13,125

Non-accrual loans

55,454

68,073

2,103

125,630

  Total past due and non-accrual loans

$109,421

$70,773

$7,254

$187,448

Total past due and non-accrual loans/total loans

2.02%

26.05%

4.58%

3.21%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

Fourth Quarter 2008

Bank - PA

Bank - FL

Regency

Total

Asset quality data, by geographic region

Non-accrual loans

$45,006

$93,116

$1,485

$139,607

Restructured loans

452

0

3,420

3,872

Non-performing loans

45,458

93,116

4,905

143,479

Other real estate owned

7,054

1,138

985

9,177

Total non-performing loans and OREO

52,512

94,254

5,890

152,656

Non-performing investments

10,456

0

0

10,456

Non-performing assets

$62,968

$94,254

$5,890

$163,112

Net loan charge-offs

$5,759

$13,745

$1,644

$21,148

Provision for loan losses

17,532

32,035

1,731

51,298

Allowance for loan losses

69,745

28,506

6,479

104,730

Loans, net of unearned income

5,368,157

294,202

158,021

5,820,380

Non-performing loans / total loans

0.85%

31.65%

3.10%

2.47%

Non-performing loans + OREO / total loans + OREO

0.98%

31.91%

3.70%

2.62%

Allowance for loan losses / total loans

1.30%

9.69%

4.10%

1.80%

Allowance for loan losses /

   non-performing loans

153.43%

30.61%

132.09%

72.99%

Net loan charge-offs (annualized) /

   average loans

0.42%

18.59%

4.15%

1.44%

Loans 30 - 89 days past due

$40,414

$0

$2,980

$43,394

Loans 90+ days past due

11,044

0

2,633

13,677

Non-accrual loans

45,006

93,116

1,485

139,607

  Total past due and non-accrual loans

$96,464

$93,116

$7,098

$196,678

Total past due and non-accrual loans/total loans

1.80%

31.65%

4.49%

3.38%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

NON-GAAP FINANCIAL MEASURES  

The following non-GAAP financial measures used by the Corporation provide information useful to investors in understanding the Corporation's operating performance and trends, and facilitate comparisons with the performance of the Corporation's peers.  The non-GAAP financial measures used by the Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.  The following tables summarize the non-GAAP financial measures derived from amounts reported in the Corporation's financial statements.

2009

2008

Fourth

Third

Fourth

Quarter

Quarter

Quarter

Return on average tangible equity (3):

Net income (annualized)

$18,077

$40,887

($75,214)

Amortization of intangibles, net of tax (annualized)

4,457

4,467

5,140

22,534

45,354

(70,074)

Average total shareholders' equity

1,052,483

1,128,898

972,138

Less:  Average intangibles

(568,666)

(570,705)

(575,668)

483,817

558,193

396,470

Return on average tangible equity (3)

4.66%

8.13%

-17.67%

Return on average tangible common equity (3):

Net income available to common shareholders (annualized)

$18,077

$19,085

($75,214)

Amortization of intangibles, net of tax (annualized)

4,457

4,467

5,140

22,534

23,552

(70,074)

Average total shareholders' equity

1,052,483

1,128,898

972,138

Less:  Average preferred shareholders' equity

0

(72,727)

0

Less:  Average intangibles

(568,666)

(570,705)

(575,668)

483,817

485,466

396,470

Return on average tangible common equity (3)

4.66%

4.85%

-17.67%

Return on average tangible assets (4):

Net income (annualized)

$18,077

$40,887

($75,214)

Amortization of intangibles, net of tax (annualized)

4,457

4,467

5,140

22,534

45,354

(70,074)

Average total assets

8,681,532

8,701,853

8,414,609

Less:  Average intangibles

(568,666)

(570,705)

(575,668)

8,112,866

8,131,148

7,838,941

Return on average tangible assets (4)

0.28%

0.56%

-0.89%

Tangible common book value per share:

Total shareholders' equity

$1,043,302

$1,052,589

$925,984

Less:  preferred shareholders' equity

0

0

0

Less:  intangibles

(567,851)

(569,579)

(574,507)

475,451

483,010

351,477

Ending shares outstanding

114,111,695

113,990,095

89,700,152

Tangible common book value per share

$4.17

$4.24

$3.92

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Year

Ended December 31,

2009

2008

Return on average tangible equity (3):

Net income (annualized)

$41,111

$35,595

Amortization of intangibles, net of tax (annualized)

4,607

4,187

45,718

39,782

Average total shareholders' equity

1,063,104

847,417

Less:  Average intangibles

(571,492)

(473,228)

491,612

374,189

Return on average tangible equity (3)

9.30%

10.63%

Return on average tangible common equity (3):

Net income available to common shareholders (annualized)

$32,803

$35,595

Amortization of intangibles, net of tax (annualized)

4,607

4,187

37,410

39,782

Average total shareholders' equity

1,063,104

847,417

Less:  Average preferred shareholders' equity

(63,602)

0

Less:  Average intangibles

(571,492)

(473,228)

428,010

374,189

Return on average tangible common equity (3)

8.74%

10.63%

Return on average tangible assets (4):

Net income (annualized)

$41,111

$35,595

Amortization of intangibles, net of tax (annualized)

4,607

4,187

45,718

39,782

Average total assets

8,606,188

7,696,895

Less:  Average intangibles

(571,492)

(473,228)

8,034,696

7,223,667

Return on average tangible assets (4)

0.57%

0.55%

Tangible common book value per share:

Total shareholders' equity

$1,043,302

$925,984

Less:  preferred shareholders' equity

0

0

Less:  intangibles

(567,851)

(574,507)

475,451

351,477

Ending shares outstanding

114,111,695

89,700,152