F.N.B. Corporation Reports Record Revenue and Operating Net Income

Includes 10% Increase in Earnings Per Share

Jul 23, 2015, 08:27 ET from F.N.B. Corporation

PITTSBURGH, July 23, 2015 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported second quarter 2015 results.  Net income available to common shareholders for the second quarter of 2015 totaled $38.1 million, or $0.22 per diluted common share.  Comparatively, second quarter of 2014 net income totaled $32.8 million, or $0.20 per diluted common share, and first quarter of 2015 net income totaled $38.3 million, or $0.22 per diluted common share.  Operating results are presented in the table below.

Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "The quarter's high-quality results include another double-digit increase in operating earnings per share.  The earnings growth was highlighted by record total revenue of $165 million and further improvement in our efficiency ratio to 56%.  The second quarter reflects our ability to generate positive operating leverage, continued strong organic growth in loans and deposits and positive asset quality results."

Quarterly Results Summary

2Q15

1Q15

2Q14

Reported Results

  Net income available to common shareholders ($ in millions)

$38.1

$38.3

$32.8

  Net income per diluted common share

$0.22

$0.22

$0.20

Operating Results (Non-GAAP)

  Operating net income available to common shareholders ($ in millions)

$38.4

$38.3

$33.4

  Operating net income per diluted common share

$0.22

$0.22

$0.20

Average Diluted Shares Outstanding (in 000's)

176,362

175,826

167,868

Second Quarter 2015 Highlights (All comparisons are to the prior quarter, except as noted; Organic growth in loans and leases and deposits refers to growth excluding the benefit of initial balances obtained via acquisitions.)

  • Total revenue was $165.3 million, an increase of $3.4 million, or 2.1%.
  • Organic growth in total average loans and leases was $249 million, or 8.8% annualized, with average commercial loan and lease growth of $151 million, or 9.6% annualized, and average consumer loan growth of $93 million, or 7.6% annualized.
  • Organic growth in total average deposits and customer repurchase agreements was $217 million, or 7.0% annualized, with average non-interest demand deposit growth of $140 million, or 21.2% annualized.
  • The net interest margin was 3.43%, compared to 3.48%.
  • The efficiency ratio was 56.0%, improved from both 56.6% in the prior quarter and 57.3% in the second quarter of 2014.
  • Credit quality results reflect favorable non-performing loan and delinquency levels.  For the originated portfolio, non-performing loans and other real estate owned (OREO) to total loans and leases and OREO improved 3 basis points to 1.05% and total originated delinquency was stable at 0.86% at June 30, 2015.  Net originated charge-offs were 0.23% annualized of total average originated loans and leases, compared to 0.24% annualized in the first quarter of 2015 and 0.23% annualized in the second quarter of 2014.
  • The tangible common equity to tangible assets ratio was 6.93% at June 30, 2015.  The tangible book value per share (non-GAAP measure) increased $0.04 to $6.22 at June 30, 2015.       

Second Quarter 2015 Results – Comparison to Prior Quarter (All comparisons refer to the first quarter of 2015, except as noted)

Net Interest Income/Loans/Deposits

Net interest income on a fully taxable equivalent basis totaled $125.6 million, increasing $1.9 million, or 1.5%, reflecting strong organic loan growth and one more day in the second quarter.  The net interest margin was 3.43%, compared to 3.48% in the prior quarter.  Excluding accretable yield adjustments, the second quarter core net interest margin was 3.39%, compared to 3.43%.  The net interest margin narrowing reflects lower yields on new loans attributable to the extended low interest rate and competitive environment. 

Average loans and leases totaled $11.5 billion, and total average organic loan and lease growth totaled $249 million, or 8.8% annualized.  Organic growth in average commercial loans and leases totaled $151 million, or 9.6% annualized, and organic growth in average consumer loans was $93 million, or 7.6% annualized.  Commercial and consumer loan growth continued to benefit from an expanded footprint, with solid contributions from both the metropolitan markets of Pittsburgh, Baltimore and Cleveland and the Pennsylvania community markets. 

Average deposits and customer repurchase agreements totaled $12.6 billion.  On an organic basis, average total deposits and customer repurchase agreements increased $217 million, or 7.0% annualized, led by $140 million of growth in organic average non-interest bearing demand deposits.  Average customer repurchase agreements were impacted by a planned migration to a new premium sweep deposit product launched in June, with balances shifting from customer repurchase agreements to premium sweep interest-bearing deposits.  On an organic basis, average total transaction deposits and customer repurchase agreements increased $229 million, or 9.4% annualized, reflecting seasonally higher average balances for business deposits and growth in total average savings balances.  Total loans as a percentage of deposits and customer repurchase agreements was 92% at June 30, 2015.

Non-Interest Income

Non-interest income totaled $39.8 million, increasing $1.6 million, or 4.1%.  The second quarter included continued positive results from mortgage banking, wealth management and higher service charges, which were partially offset by seasonally lower insurance revenue.  Mortgage banking results reflect record origination volume, stronger purchase activity and successful cross-selling efforts.  Wealth management revenues (trust income and securities commissions) increased $0.8 million, reflecting incremental lift from the Cleveland and Baltimore markets and continued organic growth across the footprint.  Non-interest income represents 24% of total revenue, consistent with the prior quarter.

Non-Interest Expense

Non-interest expense totaled $96.5 million, increasing $1.8 million, or 1.9%, reflecting a $1.2 million increase in salaries and benefits due to higher accruals for variable performance-based incentive compensation, $0.7 million higher OREO expense, and higher expense levels for marketing and outside professional services.  These items were partially offset by lower FDIC insurance expense and seasonally lower occupancy expense.  The efficiency ratio was 56.0%, compared to 56.6%.

Credit Quality

Credit quality metrics reflect a slight improvement in the ratio of non-performing loans and OREO to total loans and leases and OREO of 1 basis point to 0.93% at June 30, 2015, and 3 basis points for the originated portfolio to 1.05%.  Delinquency remained stable at 0.86% at June 30, 2015.

Net charge-offs for the second quarter totaled $6.2 million, or 0.22% annualized of total average loans and leases, compared to $5.6 million, or 0.20% annualized.  For the originated portfolio, net charge-offs as a percentage of average originated loans and leases were 0.23% annualized, compared to 0.24% annualized.  For the originated portfolio, the allowance for credit losses to total originated loans and leases was 1.21%, compared to 1.22%.  The ratio of the allowance for credit losses to total loans and leases remained flat at 1.13%.  The provision for credit losses increased $0.7 million to $8.9 million, due to the difference in provision related to acquired loans.  The ratio of the allowance for credit losses to total non-performing loans increased to 182.0%, compared to 180.8%.

Year-to-Date 2015 Results – Comparison to Prior Year-to-Date Period (All comparisons refer to the first half of 2014, except as noted)

Results include the impact from the OBA Financial Services, Inc. (OBAF) acquisition on September 19, 2014, and the BCSB Bancorp, Inc. (BCSB) acquisition on February 15, 2014.

Net Interest Income/Loans/Deposits

Net interest income on a fully taxable equivalent basis totaled $249.3 million, increasing $23.8 million, or 10.6%, primarily due to strong organic growth and the benefit from OBAF and BSCB acquired balances.  The net interest margin was 3.46%, compared to 3.61%.  Excluding accretable yield adjustments, the core net interest margin was 3.41%, compared to 3.59%.  The net interest margin narrowing reflects lower yields on new loans attributable to the extended low interest rate and competitive environment.  Average earning assets grew $1.9 billion, or 15.3%, through consistent organic loan growth and the addition of OBAF and BCSB.

Average loans and leases totaled $11.4 billion, representing an increase of $1.5 billion, or 15.2%, reflecting strong organic average loan and lease growth of $1.1 billion, or 11.3%, and the full benefit of loans added with OBAF and BCSB.  Average organic commercial loans and leases increased $560 million, or 10.0%, and average organic consumer loans increased $568 million, or 13.2%. 

Average deposits and customer repurchase agreements totaled $12.5 billion, an increase of $0.9 billion, or 7.9%, including average organic growth of $471 million, or 4.0%.  Organic growth in low-cost transaction deposit accounts and customer repurchase agreements was $738 million, or 8.3%, led by strong organic growth in average non-interest bearing demand deposits of $344 million, or 14.9%.

Non-Interest Income

Non-interest income totaled $77.9 million, decreasing $3.3 million, or 4.1%, with the first half of 2014 including higher gains on the sale of securities of $10.2 million.  Excluding securities gains, non-interest income increased $6.9 million, or 9.7%, due to organic growth across several fee-based businesses.  Mortgage banking revenues increased $3.2 million due to record high origination volume in 2015 and enhanced business development efforts.  Wealth management revenues (trust income and securities commissions) increased $2.2 million, or 14.8%, reflecting organic sales growth and incremental lift from the two metro markets of Baltimore and Cleveland.  Customer swap fee revenue increased by $0.7 million, reflecting higher volume due to the increased number of opportunities from the expanded presence in the metro markets. 

Non-Interest Expense

Non-interest expense totaled $191.2 million, increasing $4.4 million, or 2.4%.  Excluding merger, acquisition and severance costs, non-interest expense increased $12.1 million, or 6.8%, due to the addition of the full operating costs of BCSB and OBAF.  The efficiency ratio improved to 56.3% from 58.1%.

Credit Quality

Credit quality results reflect overall improvement from the prior-year period.  The ratio of non-performing loans and OREO to total loans and leases and OREO improved 23 basis points to 0.93%, and for the originated portfolio, the ratio of non-performing loans and OREO to total loans and leases and OREO improved 31 basis points to 1.05%.  Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans and leases, improved 27 basis points to 0.86% at June 30, 2015, reflecting an $11.8 million, or 11.9%, reduction in total originated delinquency.

Net charge-offs totaled $11.8 million, or 0.21% annualized of total average loans and leases, compared to $11.4 million, or 0.23% annualized.  For the originated portfolio, net charge-offs were $11.6 million, or 0.24% annualized of total average originated loans and leases, compared to $10.5 million, or 0.25% annualized.  The ratio of the allowance for credit losses to total originated loans and leases was 1.21% at June 30, 2015, compared to 1.26%, with the change directionally consistent with the performance of the portfolio.  The provision for credit losses totaled $17.0 million, compared to $17.4 million in the prior-year period.

Capital Position

The tangible common equity to tangible assets ratio (non-GAAP measure) was 6.93%, compared to 7.01% and 6.73% at March 31, 2015, and June 30, 2014, respectively.  The tangible book value per common share (non-GAAP measure) increased to $6.22, from $6.18 and $5.73 at March 31, 2015, and June 30, 2014, respectively.  The common dividend payout ratio for the second quarter of 2015 was 55.5%.

Conference Call

F.N.B. Corporation will host a conference call to discuss second quarter 2015 financial results on Thursday, July 23, 2015, at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (866) 652-5200 or (412) 317-6060 for international callers. Participants should ask to be joined into the F.N.B. Corporation call. The Webcast and presentation materials may be accessed through the "Shareholder and Investor Relations" section of the Corporation's Web site at www.fnbcorporation.com.

A replay of the call will be available shortly after the completion of the call on the day of the call until midnight ET on Thursday, July 30, 2015. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10067258. Following the call, a transcript of the call and the related presentation materials will be posted to the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at www.fnbcorporation.com.

About F.N.B. Corporation

F.N.B. Corporation (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in six states, including three major metropolitan areas. It holds a top retail deposit market share in Pittsburgh, PA, Baltimore, MD, and Cleveland, OH. F.N.B. has total assets of $16.6 billion and more than 280 banking offices throughout Pennsylvania, Maryland, Ohio and West Virginia. F.N.B. provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network, which is led by its largest affiliate, First National Bank of Pennsylvania, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, international banking, business credit, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. F.N.B.'s wealth management services include asset management, private banking and insurance. F.N.B. also operates Regency Finance Company, which has more than 70 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee. The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor's SmallCap 600 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation web site at www.fnbcorporation.com.

Non-GAAP Financial Measures

F.N.B. Corporation uses certain non-GAAP financial measures, such as operating net income available to common shareholders, operating net income per diluted common share, net interest income on a fully taxable equivalent (FTE), tangible book value per common share, and the ratio of tangible common equity to tangible assets, in addition to capital ratios defined by banking regulators, to provide information useful to investors in understanding F.N.B. Corporation's operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation's peers. The non-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, F.N.B. Corporation's reported results prepared in accordance with U.S. GAAP.  Reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures are included in the tables at the end of this release under the caption "Non-GAAP Financial Measures."

Cautionary Statement Regarding Forward-looking Information

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

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

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

  • Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following:
    • Changes in interest rates and valuations in debt, equity and other financial markets.
    • Disruptions in the liquidity and other functioning of U.S. and global financial markets.
    • The impact of federal regulatory agencies that have oversight or review of F.N.B. Corporation's business and securities activities.
    • Actions by the Federal Reserve, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates.
    • Changes in customers', suppliers' and other counterparties' performance and creditworthiness which adversely affect loan utilization rates, delinquencies, defaults and counterparty ability to meet credit and other obligations.
    • Slowing or reversal of the rate of growth in the economy and employment levels and other economic factors that affect our liquidity and the performance of our loan portfolio, particularly in the markets in which we operate.
    • Changes in customer preferences and behavior, whether due to changing business and economic conditions, legislative and regulatory initiatives, or other factors. 
  • Legal and regulatory developments could affect our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities.  Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain management.  These developments could include:
    • Changes resulting from legislative and regulatory reforms, including broad-based restructuring of financial industry regulation; changes to laws and regulations involving tax, pension, bankruptcy, consumer protection, and other industry aspects; and changes in accounting policies and principles.  We will continue to be impacted by extensive reforms provided for in the Dodd-Frank Wall Street Reform and Consumer Protection Act and otherwise growing out of the recent financial crisis, the precise nature, extent and timing of which, and their impact on us, remains uncertain. 
    • Results of the regulatory examination and supervisory process.
    • Changes to regulations governing bank capital and liquidity standards, including due to the Dodd-Frank Act, Volcker rule, DFAST and Basel III initiatives. 
    • Impact on business and operating results of any costs associated with obtaining rights in intellectual property, the adequacy of our intellectual property protection in general and our operational or security systems or infrastructure, or those of third-party vendors or other service providers, and rapid technological developments and changes.
  • Business and operating results are affected by judgments and assumptions in our analytical and forecasting models, our reliance on the advice of experienced outside advisors and our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of third-party insurance, derivatives, swaps, and capital management techniques, and to meet evolving regulatory capital standards.
  • As demonstrated by our acquisitions, we grow our business in part by acquiring, from time to time, other financial services companies, financial services assets and related deposits.  These acquisitions often present risks and uncertainties, including, the possibility that the transaction cannot be consummated; regulatory issues; cost or difficulties involved in integration and conversion of the acquired businesses after closing; inability to realize expected cost savings, efficiencies and strategic advantages; the extent of credit losses in acquired loan portfolios; the extent of deposit attrition; and the potential dilutive effect to our current shareholders.
  • Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues.  Industry restructuring in the current environment could also impact our business and financial performance through changes in counterparty creditworthiness and performance, and the competitive and regulatory landscape.  Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.
  • Business and operating results can also be affected by widespread disasters, dislocations, terrorist activities, cyber-attacks or international hostilities through their impacts on the economy and financial markets.

We provide greater detail regarding these and other factors in our 2014 Form 10-K, including the Risk Factors section of that report, and our subsequent SEC filings.  Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com.  We have included these web addresses as inactive textual references only.  Information on these websites is not part of this document.

 

DATA SHEETS FOLLOW

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

2Q15 -

2Q15 -

2015

2014

1Q15

2Q14

Second

First

Second

Percent

Percent

Statement of earnings

Quarter

Quarter

Quarter

Variance

Variance

Interest income 

$135,448

$133,369

$124,440

1.6

8.8

Interest expense

11,681

11,448

10,248

2.0

14.0

   Net interest income

123,767

121,921

114,192

1.5

8.4

Taxable equivalent adjustment

1,805

1,783

1,691

1.2

6.8

   Net interest income (FTE) (1)

125,572

123,704

115,883

1.5

8.4

Provision for credit losses

8,864

8,136

10,405

8.9

-14.8

   Net interest income after provision (FTE)

116,708

115,568

105,478

1.0

10.6

Service charges

17,514

15,817

17,441

10.7

0.4

Trust income

5,432

5,161

4,862

5.2

11.7

Insurance commissions and fees

3,559

4,369

3,691

-18.5

-3.6

Securities commissions and fees

3,597

3,057

3,002

17.6

19.8

Mortgage banking operations

2,516

1,799

928

39.9

171.3

Gain (loss) on sale of securities

14

(9)

776

n/m

n/m

Other

7,120

7,988

8,491

-10.9

-16.2

   Total non-interest income

39,752

38,182

39,190

4.1

1.4

Salaries and employee benefits

50,431

49,269

48,465

2.4

4.1

Occupancy and equipment

16,170

16,624

15,245

-2.7

6.1

FDIC insurance

2,783

3,689

3,399

-24.6

-18.1

Amortization of intangibles

1,999

2,115

2,461

-5.5

-18.8

Other real estate owned

1,580

909

922

73.9

71.3

Merger, acquisition and severance-related

371

0

832

n/m

n/m

Other

23,165

22,049

21,260

5.1

9.0

   Total non-interest expense

96,499

94,655

92,584

1.9

4.2

Income before income taxes

59,961

59,095

52,084

1.5

15.1

Taxable equivalent adjustment

1,805

1,783

1,691

1.2

6.8

Income taxes

18,025

16,969

15,562

6.2

15.8

   Net income

40,131

40,343

34,831

-0.5

15.2

   Preferred stock dividends

2,010

2,010

2,010

   Net income available to common stockholders

$38,121

$38,333

$32,821

-0.6

16.1

Earnings per common share:

   Basic

$0.22

$0.22

$0.20

0.0

10.0

   Diluted

$0.22

$0.22

$0.20

0.0

10.0

Non-GAAP Operating Results:

Operating net income available to common stockholders:

  Net income available to common stockholders

$38,121

38,333

$32,821

  Net gain on sale of pooled TPS and other securities, net of tax

0

0

0

  Merger, acquisition and severance costs, net of tax

241

0

541

  Operating net income available to common stockholders

$38,362

38,333

$33,362

0.1

15.0

Operating diluted earnings per common share:

  Diluted earnings per common share

$0.22

$0.22

$0.20

  Effect of net gain on sale of pooled TPS and other securities, 

     net of tax

0.00

0.00

0.00

  Effect of merger, acquisition and severance costs, net of tax

0.00

0.00

0.00

  Operating diluted earnings per common share

$0.22

$0.22

$0.20

0.0

10.0

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

For the Six Months

Ended June 30,

Percent

Statement of earnings

2015

2014

Variance

Interest income 

$268,817

$242,319

10.9

Interest expense

23,129

20,303

13.9

   Net interest income

245,688

222,016

10.7

Taxable equivalent adjustment

3,588

3,413

5.1

   Net interest income (FTE) (1)

249,276

225,429

10.6

Provision for credit losses

17,000

17,411

-2.4

   Net interest income after provision (FTE)

232,276

208,018

11.7

Service charges

33,331

32,710

1.9

Trust income

10,593

9,625

10.0

Insurance commissions and fees

7,928

8,635

-8.2

Securities commissions and fees

6,654

5,394

23.4

Mortgage banking operations

4,315

1,141

278.1

Gain (loss) on sale of securities

5

10,237

n/m

Other

15,108

13,518

11.8

   Total non-interest income

77,934

81,260

-4.1

Salaries and employee benefits

99,700

95,489

4.4

Occupancy and equipment

32,794

30,626

7.1

FDIC insurance

6,472

6,392

1.2

Amortization of intangibles

4,114

4,744

-13.3

Other real estate owned

2,489

1,702

46.2

Merger, acquisition and severance-related

371

8,080

n/m

Other

45,214

39,718

13.8

   Total non-interest expense

191,154

186,751

2.4

Income before income taxes

119,056

102,528

16.1

Taxable equivalent adjustment

3,588

3,413

5.1

Income taxes

34,994

29,761

17.6

   Net income

80,474

69,354

16.0

   Preferred stock dividends

4,020

4,332

   Net income available to common stockholders

$76,454

$65,022

17.6

Earnings per common share:

   Basic

$0.44

$0.40

10.0

   Diluted

$0.43

$0.39

10.3

Non-GAAP Operating Results:

Operating net income available to common stockholders:

  Net income available to common stockholders

$76,454

$65,022

  Net gain on sale of pooled TPS and other securities, net of tax

0

(6,150)

  Merger, acquisition and severance costs, net of tax

241

5,252

  Operating net income available to common stockholders

$76,695

$64,125

19.6

Operating diluted earnings per common share:

  Diluted earnings per common share

$0.43

$0.39

  Effect of net gain on sale of pooled TPS and other securities, 

     net of tax

0.00

(0.04)

  Effect of merger, acquisition and severance costs, net of tax

0.00

0.03

  Operating diluted earnings per common share

$0.44

$0.39

13.2

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

2Q15 -

2Q15 -

2015

2014

1Q15

2Q14

Second

First

Second

Percent

Percent

Balance Sheet (at period end)

Quarter

Quarter

Quarter

Variance

Variance

Assets

Cash and due from banks

$196,189

$191,347

$250,954

2.5

-21.8

Interest bearing deposits with banks

41,290

42,899

19,766

-3.8

108.9

   Cash and cash equivalents

237,479

234,246

270,720

1.4

-12.3

Securities available for sale

1,618,620

1,537,080

1,384,273

5.3

16.9

Securities held to maturity

1,518,060

1,513,204

1,427,852

0.3

6.3

Residential mortgage loans held for sale

6,711

4,621

2,705

45.2

148.1

Loans and leases, net of unearned income

11,626,787

11,404,099

10,333,873

2.0

12.5

Allowance for credit losses

(131,141)

(128,499)

(116,748)

2.1

12.3

   Net loans and leases

11,495,646

11,275,600

10,217,125

2.0

12.5

Premises and equipment, net

167,010

169,859

162,383

-1.7

2.8

Goodwill

831,333

829,726

805,514

0.2

3.2

Core deposit and other intangible assets, net

45,057

45,520

48,292

-1.0

-6.7

Bank owned life insurance

304,318

303,102

309,750

0.4

-1.8

Other assets

374,367

365,890

390,633

2.3

-4.2

Total Assets

$16,598,601

$16,278,848

$15,019,247

2.0

10.5

Liabilities

Deposits:

   Non-interest bearing demand

$2,813,488

$2,728,599

$2,429,120

3.1

15.8

   Interest bearing demand

5,226,703

4,724,985

4,354,333

10.6

20.0

   Savings

1,730,359

1,763,275

1,576,480

-1.9

9.8

   Certificates and other time deposits

2,587,577

2,589,184

2,697,837

-0.1

-4.1

      Total Deposits

12,358,127

11,806,043

11,057,770

4.7

11.8

Short-term borrowings

1,507,582

1,740,500

1,504,510

-13.4

0.2

Long-term borrowings

542,578

541,474

394,074

0.2

37.7

Other liabilities

124,543

135,555

154,816

-8.1

-19.6

   Total Liabilities

14,532,830

14,223,572

13,111,170

2.2

10.8

Stockholders' Equity

Preferred Stock

106,882

106,882

106,882

0.0

0.0

Common stock

1,765

1,763

1,673

0.1

5.5

Additional paid-in capital

1,803,347

1,805,991

1,700,220

-0.1

6.1

Retained earnings

210,422

193,461

146,542

8.8

43.6

Accumulated other comprehensive income

(43,953)

(34,980)

(36,559)

25.7

20.2

Treasury stock

(12,692)

(17,841)

(10,681)

-28.9

18.8

   Total Stockholders' Equity

2,065,771

2,055,276

1,908,077

0.5

8.3

Total Liabilities and Stockholders' Equity

$16,598,601

$16,278,848

$15,019,247

2.0

10.5

Selected average balances

Total assets

$16,457,166

$16,147,232

$14,710,831

1.9

11.9

Earning assets 

14,661,142

14,347,872

12,909,262

2.2

13.6

Interest bearing deposits with banks 

75,955

75,707

45,725

0.3

66.1

Securities

3,045,009

2,983,753

2,751,703

2.1

10.7

Residential mortgage loans held for sale 

8,049

4,833

2,752

66.5

192.4

Loans and leases, net of unearned income

11,532,129

11,283,579

10,109,082

2.2

14.1

Allowance for credit losses

131,431

128,697

113,009

2.1

16.3

Goodwill and intangibles

875,314

876,196

854,760

-0.1

2.4

Deposits and customer repurchase agreements (6)

12,579,811

12,362,558

11,786,281

1.8

6.7

Short-term borrowings

1,127,376

1,053,938

551,633

7.0

104.4

Long-term borrowings

541,992

541,549

325,818

0.1

66.3

Total stockholders' equity

2,066,024

2,040,261

1,900,751

1.3

8.7

Preferred stockholders' equity

106,882

106,882

106,882

0.0

0.0

Common stock data

Average diluted shares outstanding

176,361,840

175,825,976

167,867,608

0.3

5.1

Period end shares outstanding

175,286,980

174,691,702

166,559,258

0.3

5.2

Book value per common share

$11.18

$11.15

$10.81

0.2

3.3

Tangible book value per common share (4)

$6.22

$6.18

$5.73

0.6

8.5

Dividend payout ratio (common)

55.51%

54.76%

61.26%

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Six Months

Ended June 30,

Percent

Balance Sheet (at period end)

2015

2014

Variance

Assets

Cash and due from banks

$196,189

$250,954

-21.8

Interest bearing deposits with banks

41,290

19,766

108.9

   Cash and cash equivalents

237,479

270,720

-12.3

Securities available for sale

1,618,620

1,384,273

16.9

Securities held to maturity

1,518,060

1,427,852

6.3

Residential mortgage loans held for sale

6,711

2,705

148.1

Loans and leases, net of unearned income

11,626,787

10,333,873

12.5

Allowance for credit losses

(131,141)

(116,748)

12.3

   Net loans and leases

11,495,646

10,217,125

12.5

Premises and equipment, net

167,010

162,383

2.8

Goodwill

831,333

805,514

3.2

Core deposit and other intangible assets, net

45,057

48,292

-6.7

Bank owned life insurance

304,318

309,750

-1.8

Other assets

374,367

390,633

-4.2

Total Assets

$16,598,601

$15,019,247

10.5

Liabilities

Deposits:

   Non-interest bearing demand

$2,813,488

$2,429,120

15.8

   Interest bearing demand

5,226,703

4,354,333

20.0

   Savings

1,730,359

1,576,480

9.8

   Certificates and other time deposits

2,587,577

2,697,837

-4.1

      Total Deposits

12,358,127

11,057,770

11.8

Short-term borrowings

1,507,582

1,504,510

0.2

Long-term borrowings

542,578

394,074

37.7

Other liabilities

124,543

154,816

-19.6

   Total Liabilities

14,532,830

13,111,170

10.8

Stockholders' Equity

Preferred Stock

106,882

106,882

0.0

Common stock

1,765

1,673

5.5

Additional paid-in capital

1,803,347

1,700,220

6.1

Retained earnings

210,422

146,542

43.6

Accumulated other comprehensive income

(43,953)

(36,559)

20.2

Treasury stock

(12,692)

(10,681)

18.8

   Total Stockholders' Equity

2,065,771

1,908,077

8.3

Total Liabilities and Stockholders' Equity

$16,598,601

$15,019,247

10.5

Selected average balances

Total assets

$16,303,055

$14,352,061

13.6

Earning assets 

14,505,373

12,578,070

15.3

Interest bearing deposits with banks 

75,832

45,958

65.0

Securities

3,014,550

2,624,766

14.9

Residential mortgage loans held for sale 

6,450

3,792

70.1

Loans and leases, net of unearned income

11,408,541

9,903,554

15.2

Allowance for credit losses

130,071

111,704

16.4

Goodwill and intangibles

875,753

844,950

3.6

Deposits and customer repurchase agreements (6)

12,471,785

11,563,899

7.9

Short-term borrowings

1,090,860

471,614

131.3

Long-term borrowings

541,771

309,968

74.8

Total stockholders' equity

2,053,214

1,865,373

10.1

Preferred stockholders' equity

106,882

106,882

0.0

Common stock data

Average diluted shares outstanding

176,096,195

165,928,360

6.1

Period end shares outstanding

175,286,980

166,559,258

5.2

Book value per common share

$11.18

$10.81

3.3

Tangible book value per common share (4)

$6.22

$5.73

8.5

Dividend payout ratio (common)

55.13%

61.71%

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

2Q15 -

2Q15 -

2015

2014

1Q15

2Q14

Second

First

Second

Percent

Percent

Quarter

Quarter

Quarter

Variance

Variance

Performance ratios

Return on average equity

7.79%

8.02%

7.35%

Return on average tangible equity (2) (4)

13.87%

14.45%

13.88%

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

14.49%

15.13%

14.59%

Return on average assets

0.98%

1.01%

0.95%

Return on average tangible assets (3) (4)

1.07%

1.11%

1.05%

Net interest margin (FTE) (1) 

3.43%

3.48%

3.60%

Yield on earning assets (FTE) (1)

3.75%

3.81%

3.92%

Cost of interest-bearing liabilities

0.41%

0.41%

0.40%

Cost of funds

0.33%

0.33%

0.32%

Efficiency ratio (FTE) (1) (5)

55.99%

56.60%

57.27%

Effective tax rate

30.99%

29.61%

30.88%

Capital ratios

Equity / assets (period end)

12.45%

12.63%

12.70%

Leverage ratio

8.24%

8.29%

8.44%

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

7.61%

7.70%

7.49%

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

6.93%

7.01%

6.73%

Balances at period end

Loans and Leases:

Commercial real estate 

$3,852,607

$3,817,189

$3,577,933

0.9

7.7

Commercial and industrial

2,453,868

2,397,731

2,103,896

2.3

16.6

Commercial leases

190,881

180,207

164,676

5.9

15.9

   Commercial loans and leases

6,497,356

6,395,127

5,846,505

1.6

11.1

Direct installment

1,676,349

1,653,621

1,512,149

1.4

10.9

Residential mortgages

1,350,502

1,299,097

1,145,286

4.0

17.9

Indirect installment

942,801

905,204

729,513

4.2

29.2

Consumer LOC

1,118,970

1,108,418

1,037,519

1.0

7.9

Other

40,809

42,632

62,901

-4.3

-35.1

   Total loans and leases

$11,626,787

$11,404,099

$10,333,873

2.0

12.5

Deposits:

Non-interest bearing deposits

$2,813,488

$2,728,599

$2,429,120

3.1

15.8

Interest bearing demand

5,226,703

4,724,985

4,354,333

10.6

20.0

Savings

1,730,359

1,763,275

1,576,480

-1.9

9.8

Certificates of deposit and other time deposits

2,587,577

2,589,184

2,697,837

-0.1

-4.1

   Total deposits

12,358,127

11,806,043

11,057,770

4.7

11.8

Customer repurchase agreements (6)

212,380

757,279

751,066

-72.0

-71.7

   Total deposits and customer repurchase agreements (6)

$12,570,507

$12,563,322

$11,808,836

0.1

6.5

Average balances

Loans and Leases:

Commercial real estate 

$3,855,761

$3,781,741

$3,515,115

2.0

9.7

Commercial and industrial

2,425,800

2,357,873

2,034,481

2.9

19.2

Commercial leases

186,918

177,922

163,720

5.1

14.2

   Commercial loans and leases

6,468,479

6,317,536

5,713,316

2.4

13.2

Direct installment

1,665,245

1,647,348

1,484,698

1.1

12.2

Residential mortgages

1,313,181

1,271,336

1,134,820

3.3

15.7

Indirect installment

924,463

894,709

702,257

3.3

31.6

Consumer LOC

1,113,621

1,109,672

1,023,963

0.4

8.8

Other

47,140

42,978

50,028

9.7

-5.8

   Total loans and leases

$11,532,129

$11,283,579

$10,109,082

2.2

14.1

Deposits:

Non-interest bearing deposits

$2,776,955

$2,637,405

$2,374,516

5.3

16.9

Interest bearing demand

4,746,091

4,677,671

4,301,667

1.5

10.3

Savings

1,744,837

1,616,284

1,575,453

8.0

10.8

Certificates of deposit and other time deposits

2,588,778

2,600,551

2,736,294

-0.5

-5.4

   Total deposits

11,856,661

11,531,911

10,987,930

2.8

7.9

Customer repurchase agreements (6)

723,150

830,647

798,351

-12.9

-9.4

   Total deposits and customer repurchase agreements (6)

$12,579,811

$12,362,558

$11,786,281

1.8

6.7

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Six Months

Ended June 30,

Percent

2015

2014

Variance

Performance ratios

Return on average equity

7.90%

7.50%

Return on average tangible equity (2) (4)

14.16%

14.21%

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

14.81%

14.91%

Return on average assets

1.00%

0.97%

Return on average tangible assets (3) (4)

1.09%

1.08%

Net interest margin (FTE) (1) 

3.46%

3.61%

Yield on earning assets (FTE) (1)

3.78%

3.93%

Cost of interest-bearing liabilities

0.41%

0.41%

Cost of funds

0.33%

0.33%

Efficiency ratio (FTE) (1) (5)

56.29%

58.10%

Effective tax rate

30.31%

30.03%

Capital ratios

Equity / assets (period end)

12.45%

12.70%

Leverage ratio

8.24%

8.44%

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

7.61%

7.49%

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

6.93%

6.73%

Balances at period end

Loans and Leases:

Commercial real estate 

$3,852,607

$3,577,933

7.7

Commercial and industrial

2,453,868

2,103,896

16.6

Commercial leases

190,881

164,676

15.9

   Commercial loans and leases

6,497,356

5,846,505

11.1

Direct installment

1,676,349

1,512,149

10.9

Residential mortgages

1,350,502

1,145,286

17.9

Indirect installment

942,801

729,513

29.2

Consumer LOC

1,118,970

1,037,519

7.9

Other

40,809

62,901

-35.1

   Total loans and leases

$11,626,787

$10,333,873

12.5

Deposits:

Non-interest bearing deposits

$2,813,488

$2,429,120

15.8

Interest bearing demand

5,226,703

4,354,333

20.0

Savings

1,730,359

1,576,480

9.8

Certificates of deposit and other time deposits

2,587,577

2,697,837

-4.1

   Total deposits

12,358,127

11,057,770

11.8

Customer repurchase agreements (6)

212,380

751,066

-71.7

   Total deposits and customer repurchase agreements (6)

$12,570,507

$11,808,836

6.5

Average balances

Loans and Leases:

Commercial real estate 

$3,821,108

$3,424,421

11.6

Commercial and industrial

2,389,871

1,983,478

20.5

Commercial leases

182,445

162,053

12.6

   Commercial loans and leases

6,393,424

5,569,952

14.8

Direct installment

1,656,346

1,475,595

12.2

Residential mortgages

1,292,374

1,121,161

15.3

Indirect installment

909,668

684,235

32.9

Consumer LOC

1,111,657

1,005,735

10.5

Other

45,072

46,876

-3.8

   Total loans and leases

$11,408,541

$9,903,554

15.2

Deposits:

Non-interest bearing deposits

$2,707,566

$2,299,070

17.8

Interest bearing demand

4,712,070

4,200,940

12.2

Savings

1,680,916

1,535,075

9.5

Certificates of deposit and other time deposits

2,594,632

2,715,794

-4.5

   Total deposits

11,695,184

10,750,879

8.8

Customer repurchase agreements (6)

776,601

813,020

-4.5

   Total deposits and customer repurchase agreements (6)

$12,471,785

$11,563,899

7.9

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

2Q15 -

2Q15 -

2015

2014

1Q15

2Q14

Second

First

Second

Percent

Percent

Asset Quality Data

Quarter

Quarter

Quarter

Variance

Variance

Non-Performing Assets

Non-performing loans (7)

   Non-accrual loans

$45,332

$45,029

$59,549

0.7

-23.9

   Restructured loans

22,916

22,022

20,485

4.1

11.9

      Non-performing loans

68,248

67,051

80,034

1.8

-14.7

Other real estate owned (8)

40,190

40,796

40,268

-1.5

-0.2

   Total non-performing assets

$108,438

$107,847

$120,302

0.5

-9.9

Non-performing loans / total loans and leases

0.59%

0.59%

0.77%

Non-performing loans / total originated loans and 

   and leases (9)

0.67%

0.68%

0.91%

Non-performing loans + OREO / total loans and 

   leases + OREO

0.93%

0.94%

1.16%

Non-performing loans + OREO / total originated 

   loans and leases + OREO (9)

1.05%

1.08%

1.36%

Non-performing assets / total assets

0.65%

0.66%

0.80%

Allowance Rollforward

Allowance for credit losses (originated portfolio) (9)

   Balance at beginning of period

$121,248

$117,952

$107,123

2.8

13.2

   Provision for credit losses

8,743

9,067

8,900

-3.6

-1.8

   Net loan charge-offs

(5,795)

(5,771)

(4,835)

0.4

19.9

   Allowance for credit losses (originated portfolio) (9)

124,196

121,248

111,188

2.4

11.7

Allowance for credit losses (acquired portfolio) (10)

   Balance at beginning of period

7,251

7,974

5,096

   Provision for credit losses 

121

(931)

1,505

   Net loan charge-offs

(427)

208

(1,041)

   Allowance for credit losses (acquired portfolio) (10)

6,945

7,251

5,560

-4.2

24.9

      Total allowance for credit losses

$131,141

$128,499

$116,748

2.1

12.3

Allowance for credit losses / total loans and leases

1.13%

1.13%

1.13%

Allowance for credit losses (originated loans and leases) / 

   total originated loans and leases (9)

1.21%

1.22%

1.26%

Allowance for credit losses (originated loans and leases) / 

   total non-performing loans (7)

181.98%

180.83%

138.93%

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

   and leases

0.22%

0.20%

0.23%

Net loan charge-offs on originated loans and leases 

   (annualized) / total average originated loans and 

   leases (9)

0.23%

0.24%

0.23%

Delinquency - Originated Portfolio (9)

Loans 30-89 days past due

$36,581

$34,042

$33,821

7.5

8.2

Loans 90+ days past due

5,917

6,543

6,282

-9.6

-5.8

Non-accrual loans

45,332

45,029

59,549

0.7

-23.9

   Total past due and non-accrual loans

$87,830

$85,614

$99,652

2.6

-11.9

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

0.86%

0.86%

1.13%

Memo item:

Delinquency - Acquired Portfolio (10) (11)

Loans 30-89 days past due

$20,838

$19,854

$30,657

5.0

-32.0

Loans 90+ days past due

30,154

35,906

58,636

-16.0

-48.6

Non-accrual loans

0

0

0

0.0

0.0

   Total past due and non-accrual loans

$50,992

$55,760

$89,293

-8.6

-42.9

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

For the Six Months

Ended June 30,

Percent

Asset Quality Data

2015

2014

Variance

Non-Performing Assets

Non-performing loans (7)

   Non-accrual loans

$45,332

$59,549

-23.9

   Restructured loans

22,916

20,485

11.9

      Non-performing loans

68,248

80,034

-14.7

Other real estate owned (8)

40,190

40,268

-0.2

   Total non-performing assets

$108,438

$120,302

-9.9

Non-performing loans / total loans and leases

0.59%

0.77%

Non-performing loans / total originated loans and 

   and leases (9)

0.67%

0.91%

Non-performing loans + OREO / total loans and 

   leases + OREO

0.93%

1.16%

Non-performing loans + OREO / total originated 

   loans and leases + OREO (9)

1.05%

1.36%

Non-performing assets / total assets

0.65%

0.80%

Allowance Rollforward

Allowance for credit losses (originated portfolio) (9)

   Balance at beginning of period

$117,952

$104,884

12.5

   Provision for credit losses

17,810

16,756

6.3

   Net loan charge-offs

(11,566)

(10,452)

10.7

   Allowance for credit losses (originated portfolio) (9)

124,196

111,188

11.7

Allowance for credit losses (acquired portfolio) (10)

   Balance at beginning of period

7,974

5,900

   Provision for credit losses 

(810)

655

   Net loan charge-offs

(219)

(995)

   Allowance for credit losses (acquired portfolio) (10)

6,945

5,560

24.9

      Total allowance for credit losses

$131,141

$116,748

12.3

Allowance for credit losses / total loans and leases

1.13%

1.13%

Allowance for credit losses (originated loans and leases) / 

   total originated loans and leases (9)

1.21%

1.26%

Allowance for credit losses (originated loans and leases) / 

   total non-performing loans (7)

181.98%

138.93%

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

   and leases

0.21%

0.23%

Net loan charge-offs on originated loans and leases 

   (annualized) / total average originated loans and 

   leases (9)

0.24%

0.25%

Delinquency - Originated Portfolio (9)

Loans 30-89 days past due

$36,581

$33,821

8.2

Loans 90+ days past due

5,917

6,282

-5.8

Non-accrual loans

45,332

59,549

-23.9

   Total past due and non-accrual loans

$87,830

$99,652

-11.9

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

0.86%

1.13%

Memo item:

Delinquency - Acquired Portfolio (10) (11)

Loans 30-89 days past due

$20,838

$30,657

-32.0

Loans 90+ days past due

30,154

58,636

-48.6

Non-accrual loans

0

0

0.0

   Total past due and non-accrual loans

$50,992

$89,293

-42.9

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

2015

Second Quarter

First Quarter

Interest

Average

Interest

Average

Average

Earned

Yield

Average

Earned

Yield

Outstanding

or Paid

or Rate

Outstanding

or Paid

or Rate

Assets

Interest bearing deposits with banks

$75,955

$28

0.15%

$75,707

$32

0.17%

Taxable investment securities  (12)

2,855,637

14,467

2.03%

2,815,252

14,214

2.02%

Non-taxable investment securities  (13)

189,372

2,283

4.82%

168,501

2,116

5.02%

Residential mortgage loans held for sale

8,049

119

5.93%

4,833

63

5.22%

Loans and leases  (13) (14)

11,532,129

120,356

4.19%

11,283,579

118,727

4.26%

   Total Interest Earning Assets  (13)

14,661,142

137,253

3.75%

14,347,872

135,152

3.81%

Cash and due from banks

192,987

194,598

Allowance for loan losses

(131,431)

(128,697)

Premises and equipment

169,098

168,586

Other assets

1,565,370

1,564,873

Total Assets

$16,457,166

$16,147,232

Liabilities

Deposits:

   Interest-bearing demand

$4,746,091

1,946

0.16%

$4,677,671

1,894

0.16%

   Savings

1,744,837

193

0.04%

1,616,284

173

0.04%

   Certificates and other time

2,588,778

5,497

0.85%

2,600,551

5,382

0.84%

Customer repurchase agreements

723,150

391

0.21%

830,646

456

0.22%

Other short-term borrowings

1,127,376

1,403

0.50%

1,053,939

1,312

0.50%

Long-term borrowings

541,992

2,251

1.67%

541,549

2,231

1.67%

      Total Interest Bearing Liabilities  (13)

11,472,224

11,681

0.41%

11,320,640

11,448

0.41%

Non-interest bearing demand deposits

2,776,955

2,637,405

Other liabilities

141,963

148,926

Total Liabilities

14,391,142

14,106,971

Stockholders' equity

2,066,024

2,040,261

Total Liabilities and Stockholders' Equity

$16,457,166

$16,147,232

Net Interest Earning Assets

$3,188,918

$3,027,232

Net Interest Income (FTE)

125,572

123,704

Tax Equivalent Adjustment

(1,805)

(1,783)

Net Interest Income

$123,767

$121,921

Net Interest Spread

3.34%

3.40%

Net Interest Margin  (13)

3.43%

3.48%

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

2014

Second Quarter

Interest

Average

Average

Earned

Yield

Outstanding

or Paid

or Rate

Assets

Interest bearing deposits with banks

$45,725

$21

0.18%

Taxable investment securities  (12)

2,600,855

13,578

2.09%

Non-taxable investment securities  (13)

150,848

1,987

5.27%

Residential mortgage loans held for sale

2,751

90

13.08%

Loans and leases  (13) (14)

10,109,083

110,455

4.38%

   Total Interest Earning Assets  (13)

12,909,262

126,131

3.92%

Cash and due from banks

193,670

Allowance for loan losses

(113,009)

Premises and equipment

164,063

Other assets

1,556,845

Total Assets

$14,710,831

Liabilities

Deposits:

   Interest-bearing demand

$4,301,667

1,665

0.16%

   Savings

1,575,453

182

0.05%

   Certificates and other time

2,736,294

5,614

0.82%

Customer repurchase agreements

798,351

439

0.22%

Other short-term borrowings

551,633

894

0.65%

Long-term borrowings

325,818

1,454

1.79%

      Total Interest Bearing Liabilities  (13)

10,289,216

10,248

0.40%

Non-interest bearing demand deposits

2,374,516

Other liabilities

146,348

Total Liabilities

12,810,080

Stockholders' equity

1,900,751

Total Liabilities and Stockholders' Equity

$14,710,831

Net Interest Earning Assets

$2,620,046

Net Interest Income (FTE)

115,883

Tax Equivalent Adjustment

(1,691)

Net Interest Income

$114,192

Net Interest Spread

3.52%

Net Interest Margin  (13)

3.60%

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

For the Six Months Ended June 30, 

2015

2014

Interest

Average

Interest

Average

Average

Earned

Yield

Average

Earned

Yield

Outstanding

or Paid

or Rate

Outstanding

or Paid

or Rate

Assets

Interest bearing deposits with banks

$75,832

$60

0.16%

$45,958

$47

0.21%

Taxable investment securities  (12)

2,835,555

28,680

2.02%

2,474,533

26,028

2.11%

Non-taxable investment securities  (13)

178,995

4,400

4.92%

150,233

3,983

5.30%

Residential mortgage loans held for sale

6,450

182

5.66%

3,792

225

11.88%

Loans and leases (13) (14)

11,408,541

239,083

4.22%

9,903,554

215,450

4.38%

   Total Interest Earning Assets  (13)

14,505,373

272,405

3.78%

12,578,070

245,733

3.93%

Cash and due from banks

193,788

191,655

Allowance for loan losses

(130,072)

(111,704)

Premises and equipment

168,844

162,098

Other assets

1,565,122

1,531,942

Total Assets

$16,303,055

$14,352,061

Liabilities

Deposits:

   Interest-bearing demand 

$4,712,070

3,842

0.16%

$4,200,940

3,180

0.15%

   Savings

1,680,916

365

0.04%

1,535,075

353

0.05%

   Certificates and other time

2,594,632

10,878

0.85%

2,715,794

11,077

0.82%

Customer repurchase agreements

776,601

847

0.22%

813,020

902

0.22%

Other short-term borrowings

1,090,860

2,715

0.50%

471,614

1,650

0.70%

Long-term borrowings

541,771

4,482

1.67%

309,968

3,141

2.04%

      Total Interest Bearing Liabilities  (13)

11,396,850

23,129

0.41%

10,046,411

20,303

0.41%

Non-interest bearing demand deposits

2,707,566

2,299,070

Other liabilities

145,425

141,207

Total Liabilities

14,249,841

12,486,688

Stockholders' equity

2,053,214

1,865,373

Total Liabilities and Stockholders' Equity

$16,303,055

$14,352,061

Net Interest Earning Assets

$3,108,523

$2,531,659

Net Interest Income (FTE)

249,276

225,430

Tax Equivalent Adjustment

(3,588)

(3,413)

Net Interest Income

$245,688

$222,017

Net Interest Spread

3.37%

3.52%

Net Interest Margin  (13)

3.46%

3.61%

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

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

2015

2014

Second

First

Second

Quarter

Quarter

Quarter

Return on average tangible equity (2):

Net income (annualized)

$160,966

$163,614

$139,709

Amortization of intangibles, net of tax (annualized)

5,212

5,576

6,416

166,178

169,190

146,125

Average total shareholders' equity

2,066,024

2,040,261

1,900,751

Less:  Average intangibles

(868,133)

(869,286)

(847,815)

1,197,891

1,170,975

1,052,936

Return on average tangible equity (2)

13.87%

14.45%

13.88%

Return on average tangible common equity (2):

Net income available to common stockholders (annualized)

$152,903

$155,461

$131,646

Amortization of intangibles, net of tax (annualized)

5,212

5,576

6,416

158,115

161,037

138,062

Average total stockholders' equity

2,066,024

2,040,261

1,900,751

Less:  Average preferred stockholders' equity

(106,882)

(106,882)

(106,882)

Less:  Average intangibles

(868,133)

(869,286)

(847,815)

1,091,009

1,064,093

946,054

Return on average tangible common equity (2)

14.49%

15.13%

14.59%

Return on average tangible assets (3):

Net income (annualized)

$160,966

$163,614

$139,709

Amortization of intangibles, net of tax (annualized)

5,212

5,576

6,416

166,178

169,190

146,125

Average total assets

16,457,166

16,147,232

14,710,831

Less:  Average intangibles

(868,133)

(869,286)

(847,815)

15,589,033

15,277,946

13,863,016

Return on average tangible assets (3)

1.07%

1.11%

1.05%

Tangible book value per share:

Total shareholders' equity

$2,065,771

$2,055,276

$1,908,077

Less:  preferred shareholders' equity

(106,882)

(106,882)

(106,882)

Less:  intangibles

(869,052)

(868,257)

(846,830)

1,089,837

1,080,137

954,365

Ending shares outstanding

175,286,980

174,691,702

166,559,258

Tangible book value per share

$6.22

$6.18

$5.73

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

For the Six Months

Ended June 30,

2015

2014

Return on average tangible equity (2):

Net income (annualized)

$162,283

$139,858

Amortization of intangibles, net of tax (annualized)

5,392

6,219

167,675

146,077

Average total shareholders' equity

2,053,214

1,865,373

Less:  Average intangibles

(868,707)

(837,636)

1,184,507

1,027,737

Return on average tangible equity (2)

14.16%

14.21%

Return on average tangible common equity (2):

Net income available to common stockholders (annualized)

$154,175

$131,122

Amortization of intangibles, net of tax (annualized)

5,392

6,219

159,567

137,341

Average total stockholders' equity

2,053,214

1,865,373

Less:  Average preferred stockholders' equity

(106,882)

(106,882)

Less:  Average intangibles

(868,707)

(837,636)

1,077,625

920,855

Return on average tangible common equity (2)

14.81%

14.91%

Return on average tangible assets (3):

Net income (annualized)

$162,283

$139,858

Amortization of intangibles, net of tax (annualized)

5,392

6,219

167,675

146,077

Average total assets

16,303,055

14,352,061

Less:  Average intangibles

(868,707)

(837,636)

15,434,348

13,514,425

Return on average tangible assets (3)

1.09%

1.08%

Tangible book value per share:

Total shareholders' equity

$2,065,771

$1,908,077

Less:  preferred shareholders' equity

(106,882)

(106,882)

Less:  intangibles

(869,052)

(846,830)

1,089,837

954,365

Ending shares outstanding

175,286,980

166,559,258

Tangible book value per share

$6.22

$5.73

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

2015

2014

Second

First

Second

Quarter

Quarter

Quarter

Tangible equity / tangible assets (period end):

Total shareholders' equity

$2,065,771

$2,055,276

$1,908,077

Less:  intangibles

(869,052)

(868,257)

(846,830)

1,196,719

1,187,019

1,061,247

Total assets

16,598,601

16,278,848

15,019,247

Less:  intangibles

(869,052)

(868,257)

(846,830)

15,729,549

15,410,591

14,172,417

Tangible equity / tangible assets (period end)

7.61%

7.70%

7.49%

Tangible common equity / tangible assets (period end):

Total stockholders' equity

$2,065,771

$2,055,276

$1,908,077

Less:  preferred stockholders' equity

(106,882)

(106,882)

(106,882)

Less:  intangibles

(869,052)

(868,257)

(846,830)

1,089,837

1,080,137

954,365

Total assets

16,598,601

16,278,848

15,019,247

Less:  intangibles

(869,052)

(868,257)

(846,830)

15,729,549

15,410,591

14,172,417

Tangible equity / tangible assets (period end)

6.93%

7.01%

6.73%

 

(1)

Net interest income is also presented on a fully taxable equivalent (FTE) basis, as the Corporation believes this non-GAAP measure is the preferred industry measurement for this item.

(2)

Return on average tangible equity is calculated by dividing net income excluding amortization of intangibles by average equity less average intangibles.

(3)

Return on average tangible assets is calculated by dividing net income excluding amortization of intangibles by average assets less average intangibles.

(4)

See non-GAAP financial measures for additional information relating to the calculation of this item.

(5)

The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles, other real estate owned expense and merger, acquisition and

severance costs by the sum of net interest income on a fully taxable equivalent basis plus non-interest income less securities gains.

(6)

Customer repos are included in short-term borrowings on the balance sheet.

(7)

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

(8)

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

(9)

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

(10)

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

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

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

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

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

(11)

Represents contractual balances.

(12)

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

(13)

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

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

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

(14)

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

of loan fees included in interest income is immaterial.

 

 

 

SOURCE F.N.B. Corporation



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