F.N.B. CORPORATION 
By HERMITAGE, Pa., Jan. 23, 2013 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported fourth quarter and full year 2012 financial results. Net income for the fourth quarter of 2012 was $29.0 million, or $0.21 per diluted share, compared with fourth quarter of 2011 net income of $23.7 million, or $0.19 per diluted share, and third quarter of 2012 net income of $30.7 million, or $0.22 per diluted share. Fourth quarter 2012 net income included litigation settlement costs of $2.0 million (after-tax) and branch consolidation costs of $1.2 million (after-tax), which on a combined basis reduced earnings by $0.02 per diluted share. Third quarter 2012 net income included a gain on the sale of a building of $0.9 million (after-tax) or $0.01 per diluted share.
Net income for the full year of 2012 totaled $110.4 million, or $0.79 per diluted share, compared to $87.0 million, or $0.70 per diluted share, for 2011. Full year 2012 net income included merger and severance costs of $5.2 million (after-tax), litigation settlement costs of $2.0 million (after-tax), branch consolidation costs of $1.2 million (after-tax), and a gain on the sale of a building of $0.9 million (after-tax), which on a combined basis reduced earnings by $0.05 per diluted share. Full year 2011 net income included merger costs of $3.2 million (after-tax), or $0.02 per diluted share. Adjusting for these items, adjusted net income for the full year of 2012 totaled $117.8 million, or $0.84 per diluted share, compared to adjusted net income of $90.3 million, or $0.72 per diluted share, for 2011.
Vincent J. Delie, President and Chief Executive Officer, commented, "The fourth quarter was a great finish to a very successful year. The highlight of our solid operating performance is the consistent growth of our loan portfolios. Through the efforts of our experienced team of bankers, we have accomplished fourteen consecutive quarters of organic total loan growth. Both the commercial and consumer portfolios achieved record fourth quarter loan production levels. We remained focused on gaining market share and attracting customers, while maintaining our high-quality underwriting standards as demonstrated by our solid asset quality results."
Mr. Delie continued, "We are also very pleased to report record net income for the full year of 2012. Revenue growth, profitability and asset quality trends were favorable. This positive momentum and the completion of a number of important strategic accomplishments has FNB well positioned for 2013."
Fourth Quarter 2012 Highlights
-- Adjusted fourth quarter net income was $0.23 per diluted share(([1]))
-- The net interest margin was 3.66%
-- Average total loans grew $119.6 million, or 6.0% annualized,
representing the fourteenth consecutive quarter of organic total loan
growth
-- Average core commercial loans (excluding Florida loans) grew $88.7
million or 8.4% annualized, representing the fifteenth consecutive
linked quarter of organic growth for this portfolio
-- Average consumer loans grew $72.6 million or 11.7% annualized
-- Average transaction deposits and customer repurchase agreements grew
$215.0 million or 11.9% annualized
-- The efficiency ratio was 55.5%
-- Net charge-offs totaled $7.6 million or 0.45% annualized of average
originated loans
-- Non-performing loans and other real estate owned (OREO) as a percentage
of total originated loans and OREO improved 9 basis points to 1.60%
F.N.B. Corporation's performance ratios for the fourth quarter of 2012 were as follows: return on average tangible equity (non-GAAP measure) was 17.68%; return on average equity was 8.23%; return on average tangible assets (non-GAAP measure) was 1.07% and return on average assets was 0.96%. Reconciliations of non-GAAP measures used in this press release to their most directly comparable GAAP measures are included in the tables that accompany this press release.
Fourth Quarter 2012 Results
(All comparisons refer to the third quarter of 2012, except as noted)
Net Interest Income
Net interest income on a fully taxable equivalent basis totaled $95.7 million in the fourth quarter of 2012 compared to $95.4 million in the prior quarter. Both quarters included a benefit from accretable yield resulting from better than expected cash flows on acquired loans totaling $2.6 million in the fourth quarter of 2012 and $1.4 million in the third quarter of 2012. The fourth quarter net interest margin of 3.66% narrowed 4 basis points from 3.70%, reflecting the current interest rate environment and the resulting lower earning asset yields, partially offset by the lower cost of funds and higher accretable yield.
Average loans totaled $8.0 billion and grew $119.6 million or 6.0% annualized. Growth in the core commercial portfolio(([2])) continued, with average balances increasing $88.7 million, or 8.4% annualized, reflecting FNB's consistent ability to build market share as commercial line utilization rates remained consistent with the prior quarter at historically low levels. This represents the fifteenth consecutive quarter of organic growth for this portfolio with an average quarterly organic growth rate of 6.7% over the 15-quarter period. Average consumer loan growth (consisting of direct, consumer lines of credit and indirect loans) was also strong with balances increasing $72.6 million, or 11.7% annualized, driven by growth in home equity-related loans (direct loans and consumer lines of credit) through a continued focus across our branch network to capitalize on consumer preferences for these products.
Total average deposits and customer repurchase agreements totaled $10.0 billion and grew $140.5 million, or 5.7% annualized. Growth in lower cost transaction deposit accounts and customer repurchase agreements remained strong, increasing $215.0 million, or 11.9% annualized, as a result of successful new account acquisition and higher average balances. Growth in transaction accounts and customer repurchase agreements was partially offset by a continued planned decline in time deposits due to the lower offered rate environment. As of December 31, 2012, FNB's total customer-based funding was 97% of total deposits and borrowings, consistent with 98% as of September 30, 2012. Loans as a percentage of total deposits and customer repurchase agreements were 82%, compared to 80% at September 30, 2012. Transaction-based deposits and customer repurchase agreements represent 74% of total deposits and customer repurchase agreements at December 31, 2012.
Non-Interest Income
Non-interest income totaled $32.1 million in the fourth quarter of 2012, decreasing $2.7 million or 7.7%. The decline compared to the prior quarter primarily reflects $1.7 million accrued for expected losses on asset disposals related to the consolidation of twenty branch locations during the fourth quarter and a benefit in the third quarter resulting from a $1.4 million gain on the sale of a building. The previously announced branch consolidation was undertaken as part of an overall branch optimization strategy and going forward is expected to result in annual pre-tax cost savings of approximately $4.0 million. Securities commissions and fees and trust income increased 7.2% and 2.6%, respectively, primarily as a result of increased sales activity. Gains on the sale of loans increased modestly by 1.3% due to increased volume. The decline in insurance commissions and fees reflects normal seasonal trends.
Non-Interest Expense
Non-interest expense totaled $76.6 million in the fourth quarter of 2012, declining $0.5 million, or 0.6%. The fourth quarter included the previously disclosed $3.0 million in litigation costs to establish a settlement fund. Offsetting this item were lower OREO costs due to a $1.5 million recovery on a Florida property sale and lower personnel costs due to favorable medical insurance claims. The efficiency ratio improved to 55.5% from 57.4%.
Credit Quality
Credit quality results for the fourth quarter of 2012 reflect continued solid performance. The provision for loan losses equaled $9.3 million for the fourth quarter of 2012, compared to $8.4 million in the prior quarter, with the increase primarily reflecting reserves to support the strong, high-quality loan growth during the quarter.
The ratio of the allowance for loan losses to total originated loans was 1.39%, compared to 1.43% at September 30, 2012. The ratio of the allowance for loan losses to total non-performing loans increased to 124% compared to 120% at September 30, 2012.
Charge-off performance continued to be good with net charge-offs for the fourth quarter totaling $7.6 million or 0.38% annualized. The ratio of non-performing loans and OREO to total loans and OREO improved 6 basis points over the prior quarter to 1.42% at December 31, 2012. For the originated portfolio, the ratio of non-performing loans and OREO to total originated loans and OREO improved 9 basis points to 1.60% at December 31, 2012. Total delinquency (total past due and non-accrual loans) to total originated loans improved 2 basis points to 1.64% at December 31, 2012.
Capital Position
The Corporation's capital levels at December 31, 2012 continue to exceed federal bank regulatory agency "well capitalized" thresholds. Regulatory capital ratios at December 31, 2012 (estimated) are consistent with September 30, 2012 ratios. At December 31, 2012, the estimated total risk-based capital ratio was unchanged at 12.2%, the estimated tier 1 risk-based capital ratio was 10.7% compared to 10.6%, and the leverage ratio was 8.29% compared to 8.24%.
At December 31, 2012, the tangible equity to tangible assets ratio (non-GAAP measure) increased to 6.09% from 6.01% and the tangible book value per share (non-GAAP measure) increased to $4.92 from $4.85.
The dividend payout ratio for the fourth quarter of 2012 was 59% and 61% for the full year of 2012.
Full Year 2012 Results
(All comparisons refer to the prior full year, except as noted)
Full year 2012 results include the impact from the Parkvale acquisition completed on January 1, 2012.
F.N.B. Corporation's full year net income totaled $110.4 million, or $0.79 per diluted share, improved from $87.0 million, or $0.70 per diluted share. Return on average tangible equity (non-GAAP measure) equaled 17.64% compared to 15.76%, return on average equity was 8.02% compared to 7.36%, return on average tangible assets (non-GAAP measure) was 1.05% compared to 0.99%, and return on average assets was 0.94% compared to 0.88%.
Net interest income on a fully taxable equivalent basis totaled $380.2 million, an increase of $55.8 million or 17.2%, reflecting 19.2% growth in average earning assets and the benefit of $5.9 million in accretable yield, partially offset by a 6 basis point narrowing of the net interest margin. The growth in earning assets reflects a combination of organic growth and the Parkvale acquisition. Average total loans grew 18.1%, with organic total loan growth of 4.3%, reflecting strong organic growth of 8.0% in the core commercial portfolio, as well as organic consumer loan growth of 7.4%. Average deposits and customer repurchase agreements grew 22.1%, with organic growth of 3.1%. Transaction deposits and customer repurchase agreements grew 23.7%, with organic growth of 9.6% representing successful new customer acquisition and higher average balances.
Non-interest income totaled $131.5 million, increasing $11.5 million, or 9.6%. Included in the full year of 2012 was $1.7 million accrued for expected losses on asset disposals related to the consolidation of twenty branch locations during the fourth quarter of 2012 and a $1.4 million gain on the sale of a building. The increase in non-interest income excluding these items primarily reflects the benefit of the Parkvale acquisition and organic revenue growth. Service charges increased $8.2 million, or 13.2%, reflecting higher volume, organic growth and the expanded customer base due to the Parkvale acquisition. Insurance commissions and fees increased $1.2 million, or 8.2%. Wealth management revenue (comprised of securities commissions and fees and trust income) grew $1.3 million or 5.8% as a result of an increased number of sales professionals and higher sales activity, more favorable market conditions and the benefit of the Parkvale acquisition. Gain on the sale of loans increased $1.1 million or 40.4% as a result of increased volume.
Non-interest expense totaled $318.8 million, an increase of $35.1 million, or 12.4%, primarily due to adding Parkvale-related operating costs, a net increase of $3.0 million in merger and severance costs and $3.0 million in litigation costs to establish a settlement fund in accordance with the previously disclosed lawsuit.
Total revenue growth of $67.4 million, or 15.2%, exceeded non-interest expense growth of $35.1 million or 12.4%. F.N.B. Corporation's 2012 efficiency ratio improved to 57.7% compared to 59.7%.
Credit quality results continued to trend positively throughout 2012 and compare favorably to full year 2011, reflecting continued solid performance for all portfolios. Provision for loan losses was $31.3 million, improving $2.3 million primarily due to lower provision in the Florida portfolio partially offset by $4.2 million in provision for the acquired portfolio. Net charge-off results improved 23 basis points to 0.35% of total average loans. The ratio of the allowance for loan losses to total originated loans equaled 1.39% at December 31, 2012, compared to 1.54% at December 31, 2011, with the decline directionally consistent with the overall favorable credit quality performance as well as reserves to support the solid loan growth experienced in 2012.
Conference Call
F.N.B. Corporation will host its quarterly conference call to discuss fourth quarter and full year 2012 financial results on Thursday, January 24, 2013 at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (888) 427-9376 or (719) 325-2435 for international callers; the confirmation number is 4816875. The Webcast and presentation materials may be accessed through the "Shareholder and Investor Relations" section of the Corporation's Web site at www.fnbcorporation.com.
A replay of the call will be available from 1:00 p.m. Eastern Time the day of the call until midnight Eastern Time on Thursday, January 31, 2013. The replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for international callers; the confirmation number is 4816875. The call transcript and Webcast will be available on the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $12.0 billion. F.N.B. Corporation is a leading provider of commercial and retail banking, leasing, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania, Ohio and West Virginia, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, F.N.B. Capital Corporation, LLC, Regency Finance Company and F.N.B. Commercial Leasing. It also operates consumer finance offices in Kentucky and Tennessee.
Cautionary Statement Regarding Forward-looking Information
We make statements in this press release and related conference call, and may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, capital levels, liquidity levels, asset levels, asset quality and other matters regarding or affecting F.N.B. Corporation and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance.
Our forward-looking statements are subject to the following principal risks and uncertainties:
-- Our businesses, financial results and balance sheet values are affected
by business and economic conditions, including the following:
-- Changes in interest rates and valuations in debt, equity and other
financial markets.
-- Disruptions in the liquidity and other functioning of U.S. and
global financial markets.
-- 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 failure of the current moderate economic recovery and
persistence or worsening levels of unemployment.
-- Changes in customer preferences and behavior, whether due to
changing business and economic conditions, legislative and
regulatory initiatives, or other factors.
-- Legal and regulatory developments could affect our ability to operate
our businesses, financial condition, results of operations, competitive
position, reputation, or pursuit of attractive acquisition
opportunities. Reputational impacts could affect matters such as
business generation and retention, liquidity, funding, and ability to
attract and retain management. These developments could include:
-- Changes resulting from legislative and regulatory reforms, including
broad-based restructuring of financial industry regulation; changes
to laws and regulations involving tax, pension, bankruptcy, consumer
protection, and other industry aspects; and changes in accounting
policies and principles. We will continue to be impacted by
extensive reforms provided for in the Dodd-Frank Wall Street Reform
and Consumer Protection Act and otherwise growing out of the recent
financial crisis, the precise nature, extent and timing of which,
and their impact on us, remains uncertain.
-- Changes to regulations governing bank capital and liquidity
standards, including due to the Dodd-Frank Act and to Basel III
initiatives.
-- Impact on business and operating results of any costs associated
with obtaining rights in intellectual property, the adequacy of our
intellectual property protection in general and rapid technological
developments and changes. Our ability to anticipate and respond to
technological changes can also impact our ability to respond to
customer needs and meet competitive demands.
-- Business and operating results are affected by our ability to identify
and effectively manage risks inherent in our businesses, including,
where appropriate, through effective use of third-party insurance,
derivatives, swaps, and capital management techniques, and to meet
evolving regulatory capital standards.
-- Increased competition, whether due to consolidation among financial
institutions; realignments or consolidation of branch offices, legal and
regulatory developments, industry restructuring or other causes, can
have an impact on customer acquisition, growth and retention and on
credit spreads and product pricing, which can affect market share,
deposits and revenues.
-- As demonstrated by our Parkvale and Annapolis Bancorp, Inc.
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 and
extent of deposit attrition; and the potential dilutive effect to our
current shareholders. In addition, with respect to the pending
acquisition of Annapolis Bancorp, Inc., F.N.B. Corporation may
experience difficulties in expanding into a new market area, including
retention of customers and key personnel of Annapolis Bancorp, Inc. and
its subsidiary BankAnnapolis.
-- Competition can have an impact on customer acquisition, growth and
retention and on credit spreads and product pricing, which can affect
market share, deposits and revenues. Industry restructuring in the
current environment could also impact our business and financial
performance through changes in counterparty creditworthiness and
performance and the competitive and regulatory landscape. Our ability
to anticipate and respond to technological changes can also impact our
ability to respond to customer needs and meet competitive demands.
-- Business and operating results can also be affected by widespread
disasters, dislocations, terrorist activities or international
hostilities through their impacts on the economy and financial markets.
We provide greater detail regarding some of these factors in our 2011 Form 10-K and 2012 Form 10-Qs, including the Risk Factors section of those reports, and our subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.
(([1])) Adjusted for litigation settlement costs of $2.0 million (after-tax) and branch consolidation costs of $1.2 million (after-tax).
(([2])) Total commercial loans excluding the Florida portfolio
DATA SHEETS FOLLOW
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
4Q12 - 4Q12 -
2012 2011 3Q12 4Q11
Fourth Third Fourth Percent Percent
Statement of earnings Quarter Quarter Quarter Variance Variance
--------------------- ------- -------
Interest income $107,578 $107,756 $96,897 -0.2 11.0
Interest expense 13,660 14,225 16,768 -4.0 -18.5
Net interest income 93,918 93,531 80,129 0.4 17.2
Taxable equivalent adjustment 1,798 1,852 1,922 -2.9 -6.5
Net interest income (FTE) (1) 95,716 95,383 82,051 0.3 16.7
Provision for loan losses 9,274 8,429 8,289 10.0 11.9
Net interest income after provision (FTE) 86,442 86,954 73,762 -0.6 17.2
Impairment losses on securities (506) (440) (422) n/m n/m
Non-credit related losses on securities
not
expected to be sold (recognized in other
comprehensive income) 413 321 393 n/m n/m
--- --- ---
Net impairment losses on securities (93) (119) (29) n/m n/m
Service charges 17,636 17,666 15,833 -0.2 11.4
Insurance commissions and fees 3,794 4,578 3,373 -17.1 12.5
Securities commissions and fees 2,252 2,102 1,602 7.2 40.6
Trust income 3,880 3,783 3,560 2.6 9.0
Gain on sale of securities 3 (66) 3,511 -104.1 -99.9
Gain on sale of loans 1,191 1,176 968 1.3 23.1
Other 3,464 5,693 3,780 -39.2 -8.4
Total non-interest income 32,127 34,813 32,598 -7.7 -1.4
Salaries and employee benefits 40,964 41,579 37,758 -1.5 8.5
Occupancy and equipment 11,676 11,568 10,205 0.9 14.4
Amortization of intangibles 2,243 2,242 1,819 0.0 23.3
Other real estate owned (631) 796 231 -179.4 -372.9
FHLB prepayment penalty 0 0 3,328 n/m n/m
Other 22,340 20,897 18,250 6.9 22.4
Total non-interest expense 76,592 77,082 71,591 -0.6 7.0
Income before income taxes 41,977 44,685 34,769 -6.1 20.7
Taxable equivalent adjustment 1,798 1,852 1,922 -2.9 -6.5
Income taxes 11,224 12,090 9,110 -7.2 23.2
Net income $28,955 $30,743 $23,737 -5.8 22.0
Earnings per share:
Basic $0.21 $0.22 $0.19 -4.5 10.5
Diluted $0.21 $0.22 $0.19 -4.5 10.5
Performance ratios
------------------
Return on average equity 8.23% 8.83% 7.72%
Return on average tangible equity (2) (4) 17.68% 19.10% 15.94%
Return on average assets 0.96% 1.03% 0.95%
Return on average tangible assets (3) (4) 1.07% 1.15% 1.06%
Net interest margin (FTE) (1) 3.66% 3.70% 3.79%
Yield on earning assets (FTE) (1) 4.18% 4.25% 4.56%
Cost of funds 0.63% 0.66% 0.92%
Efficiency ratio (FTE) (1) (5) 55.45% 57.40% 59.27%
Effective tax rate 27.94% 28.23% 27.73%
Common stock data
-----------------
Average basic shares outstanding 139,317,031 139,228,812 126,566,483 0.1 10.1
Average diluted shares outstanding 140,923,088 140,764,052 127,615,744 0.1 10.4
Ending shares outstanding 139,929,242 139,792,727 127,220,759 0.1 10.0
Book value per share $10.02 $9.98 $9.51 0.4 5.3
Tangible book value per share (4) $4.92 $4.85 $4.80 1.5 2.5
Dividend payout ratio 58.51% 55.07% 65.60%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year
Ended December 31, Percent
------------------
Statement of earnings 2012 2011 Variance
---------------------
Interest income $431,906 $391,125 10.4
Interest expense 59,055 74,617 -20.9
Net interest income 372,851 316,508 17.8
Taxable equivalent adjustment 7,382 7,895 -6.5
Net interest income (FTE) (1) 380,233 324,403 17.2
Provision for loan losses 31,302 33,641 -7.0
Net interest income after provision (FTE) 348,931 290,762 20.0
Impairment losses on securities (946) (895) n/m
Non-credit related losses on securities
not
expected to be sold (recognized in other
comprehensive income) 734 829 n/m
--- ---
Net impairment losses on securities (212) (66) n/m
Service charges 70,055 61,891 13.2
Insurance commissions and fees 16,426 15,185 8.2
Securities commissions and fees 8,395 7,562 11.0
Trust income 15,239 14,782 3.1
Gain on sale of securities 305 3,652 -91.7
Gain on sale of loans 3,887 2,768 40.4
Other 17,368 14,144 22.8
------
Total non-interest income 131,463 119,918 9.6
Salaries and employee benefits 168,219 149,817 12.3
Occupancy and equipment 46,898 40,838 14.8
Amortization of intangibles 9,135 7,228 26.4
Other real estate owned 3,268 5,217 -37.4
FHLB prepayment penalty 0 3,328 0.0
Other 91,309 77,306 18.1
------
Total non-interest expense 318,829 283,734 12.4
Income before income taxes 161,565 126,946 27.3
Taxable equivalent adjustment 7,382 7,895 -6.5
Income taxes 43,773 32,004 36.8
------
Net income $110,410 $87,047 26.8
Earnings per share:
Basic $0.79 $0.70 12.9
Diluted $0.79 $0.70 12.9
Performance ratios
------------------
Return on average equity 8.02% 7.36%
Return on average tangible equity (2) (4) 17.64% 15.76%
Return on average assets 0.94% 0.88%
Return on average tangible assets (3) (4) 1.05% 0.99%
Net interest margin (FTE) (1) 3.73% 3.79%
Yield on earning assets (FTE) (1) 4.30% 4.66%
Cost of funds 0.68% 1.02%
Efficiency ratio (FTE) (1) (5) 57.73% 59.71%
Effective tax rate 28.39% 26.88%
Common stock data
-----------------
Average basic shares outstanding 139,135,272 124,145,924 12.1
Average diluted shares outstanding 140,640,165 125,012,078 12.5
Ending shares outstanding 139,929,242 127,220,759 10.0
Book value per share $10.02 $9.51 5.3
Tangible book value per share (4) $4.92 $4.80 2.5
Dividend payout ratio 61.27% 69.72%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q12 - 4Q12 -
2012 2011 3Q12 4Q11
Fourth Third Fourth Percent Percent
Balance Sheet (at period end) Quarter Quarter Quarter Variance Variance
---------------------------- ------- -------
Assets
Cash and due from banks $216,233 $203,503 $197,349 6.3 9.6
Interest bearing deposits with banks 22,811 164,091 11,604 -86.1 96.6
------ ------- ------
Cash and cash equivalents 239,044 367,594 208,953 -35.0 14.4
Securities available for sale 1,172,683 1,112,839 640,571 5.4 83.1
Securities held to maturity 1,106,563 1,151,743 917,212 -3.9 20.6
Residential mortgage loans held for sale 27,751 21,575 14,275 28.6 94.4
Loans, net of unearned income 8,137,719 7,979,450 6,856,667 2.0 18.7
Allowance for loan losses (104,374) (102,714) (100,662) 1.6 3.7
-------- -------- --------
Net loans 8,033,345 7,876,736 6,756,005 2.0 18.9
Premises and equipment, net 140,367 145,043 130,043 -3.2 7.9
Goodwill 675,555 677,168 568,462 -0.2 18.8
Core deposit and other intangible assets, net 37,851 40,095 30,953 -5.6 22.3
Bank owned life insurance 246,088 239,615 208,927 2.7 17.8
Other assets 344,729 352,483 311,082 -2.2 10.8
------- ------- -------
Total Assets $12,023,976 $11,984,891 $9,786,483 0.3 22.9
=========== =========== ==========
Liabilities
Deposits:
Non-interest bearing demand $1,738,195 $1,735,857 $1,340,465 0.1 29.7
Savings and NOW 4,808,121 4,764,148 3,790,863 0.9 26.8
Certificates and other time deposits 2,535,858 2,625,818 2,158,440 -3.4 17.5
--------- --------- ---------
Total Deposits 9,082,174 9,125,823 7,289,768 -0.5 24.6
Other liabilities 163,151 150,152 143,239 8.7 13.9
Short-term borrowings 1,083,138 1,019,411 851,294 6.3 27.2
Long-term debt 89,425 90,501 88,016 -1.2 1.6
Junior subordinated debt 204,019 204,006 203,967 0.0 0.0
------- ------- -------
Total Liabilities 10,621,907 10,589,893 8,576,284 0.3 23.9
Stockholders' Equity
Common stock 1,398 1,397 1,268 0.1 10.2
Additional paid-in capital 1,376,601 1,374,241 1,224,572 0.2 12.4
Retained earnings 75,312 63,298 32,925 19.0 128.7
Accumulated other comprehensive income (46,224) (38,972) (45,148) 18.6 2.4
Treasury stock (5,018) (4,966) (3,418) 1.0 46.8
------ ------ ------
Total Stockholders' Equity 1,402,069 1,394,998 1,210,199 0.5 15.9
--------- --------- ---------
Total Liabilities and Stockholders' Equity $12,023,976 $11,984,891 $9,786,483 0.3 22.9
=========== =========== ==========
Selected average balances
-------------------------
Total assets $11,988,283 $11,842,204 $9,947,884 1.2 20.5
Earning assets 10,420,397 10,267,435 8,619,185 1.5 20.9
Securities 2,255,702 2,252,760 1,713,209 0.1 31.7
Interest bearing deposits with banks 116,885 86,501 69,713 35.1 67.7
Loans, net of unearned income 8,047,810 7,928,174 6,836,263 1.5 17.7
Allowance for loan losses 104,453 103,757 109,588 0.7 -4.7
Goodwill and intangibles 715,962 714,501 599,352 0.2 19.5
Deposits and customer repurchase agreements (6) 9,974,646 9,834,111 8,048,276 1.4 23.9
Short-term borrowings 156,197 159,843 171,555 -2.3 -9.0
Long-term debt 88,956 90,869 174,220 -2.1 -48.9
Trust preferred securities 204,012 203,999 203,960 0.0 0.0
Shareholders' equity 1,400,430 1,385,282 1,219,575 1.1 14.8
Capital ratios
--------------
Equity / assets (period end) 11.66% 11.64% 12.37%
Leverage ratio 8.29% 8.24% 9.15%
Tangible equity / tangible assets (period end) (4) 6.09% 6.01% 6.65%
Tangible equity, excluding AOCI / tangible
assets (period end) (4) (7) 6.50% 6.36% 7.14%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31, Percent
------------------
Balance Sheet (at period end) 2012 2011 Variance
----------------------------
Assets
Cash and due from banks $216,233 $197,349 9.6
Interest bearing deposits with banks 22,811 11,604 96.6
------ ------
Cash and cash equivalents 239,044 208,953 14.4
Securities available for sale 1,172,683 640,571 83.1
Securities held to maturity 1,106,563 917,212 20.6
Residential mortgage loans held for
sale 27,751 14,275 94.4
Loans, net of unearned income 8,137,719 6,856,667 18.7
Allowance for loan losses (104,374) (100,662) 3.7
-------- --------
Net loans 8,033,345 6,756,005 18.9
Premises and equipment, net 140,367 130,043 7.9
Goodwill 675,555 568,462 18.8
Core deposit and other intangible
assets, net 37,851 30,953 22.3
Bank owned life insurance 246,088 208,927 17.8
Other assets 344,729 311,082 10.8
Total Assets $12,023,976 $9,786,483 22.9
=========== ==========
Liabilities
Deposits:
Non-interest bearing demand $1,738,195 $1,340,465 29.7
Savings and NOW 4,808,121 3,790,863 26.8
Certificates and other time deposits 2,535,858 2,158,440 17.5
--------- ---------
Total Deposits 9,082,174 7,289,768 24.6
Other liabilities 163,151 143,239 13.9
Short-term borrowings 1,083,138 851,294 27.2
Long-term debt 89,425 88,016 1.6
Junior subordinated debt 204,019 203,967 0.0
------- -------
Total Liabilities 10,621,907 8,576,284 23.9
Stockholders' Equity
Common stock 1,398 1,268 10.2
Additional paid-in capital 1,376,601 1,224,572 12.4
Retained earnings 75,312 32,925 128.7
Accumulated other comprehensive income (46,224) (45,148) 2.4
Treasury stock (5,018) (3,418) 46.8
Total Stockholders' Equity 1,402,069 1,210,199 15.9
--------- ---------
Total Liabilities and Stockholders'
Equity $12,023,976 $9,786,483 22.9
=========== ==========
Selected average balances
-------------------------
Total assets $11,782,821 $9,871,164 19.4
Earning assets 10,206,465 8,561,235 19.2
Securities 2,214,847 1,754,136 26.3
Interest bearing deposits with banks 94,719 118,731 -20.2
Loans, net of unearned income 7,896,899 6,688,368 18.1
Allowance for loan losses 103,590 109,754 -5.6
Goodwill and intangibles 717,031 599,851 19.5
Deposits and customer repurchase
agreements (6) 9,790,570 8,017,269 22.1
Short-term borrowings 158,875 154,228 3.0
Long-term debt 90,652 200,158 -54.7
Trust preferred securities 203,471 203,950 -0.2
Shareholders' equity 1,376,494 1,181,941 16.5
Capital ratios
--------------
Equity / assets (period end) 11.66% 12.37%
Leverage ratio 8.29% 9.15%
Tangible equity /tangible assets
(period end) (4) 6.09% 6.65%
Tangible equity, excluding AOCI /
tangible
assets (period end) (4) (7) 6.50% 7.14%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q12 - 4Q12 -
2012 2011 3Q12 4Q11
Fourth Third Fourth Percent Percent
Balances at period end Quarter Quarter Quarter Variance Variance
---------------------- ------- -------
Loans:
------
Commercial real estate $2,707,046 $2,668,916 $2,495,727 1.4 8.5
Commercial and industrial 1,602,314 1,532,366 1,363,692 4.6 17.5
Commercial leases 130,133 127,065 110,795 2.4 17.5
------- ------- -------
Commercial loans and leases 4,439,493 4,328,347 3,970,214 2.6 11.8
Direct installment 1,178,530 1,128,310 1,029,187 4.5 14.5
Residential mortgages 1,092,228 1,121,237 670,936 -2.6 62.8
Indirect installment 582,037 583,939 540,789 -0.3 7.6
Consumer LOC 805,494 780,155 607,280 3.2 32.6
Other 39,937 37,462 38,261 6.6 4.4
Total loans $8,137,719 $7,979,450 $6,856,667 2.0 18.7
Deposits:
---------
Non-interest bearing deposits $1,738,195 $1,735,857 $1,340,465 0.1 29.7
Savings and NOW 4,808,121 4,764,148 3,790,863 0.9 26.8
Certificates of deposit and
other time deposits 2,535,858 2,625,818 2,158,440 -3.4 17.5
Total deposits 9,082,174 9,125,823 7,289,768 -0.5 24.6
Customer repurchase agreements
(6) 807,820 885,749 646,660 -8.8 24.9
Total deposits and customer
repurchase agreements (6) $9,889,994 $10,011,572 $7,936,428 -1.2 24.6
Average balances
----------------
Loans:
------
Commercial real estate $2,657,325 $2,632,843 $2,520,992 0.9 5.4
Commercial and industrial 1,567,340 1,512,872 1,311,648 3.6 19.5
Commercial leases 128,535 125,508 106,160 2.4 21.1
------- ------- -------
Commercial loans and leases 4,353,200 4,271,223 3,938,800 1.9 10.5
Direct installment 1,157,480 1,118,981 1,032,022 3.4 12.2
Residential mortgages 1,122,658 1,156,906 691,839 -3.0 62.3
Indirect installment 581,748 581,315 538,283 0.1 8.1
Consumer LOC 793,496 759,832 594,070 4.4 33.6
Other 39,228 39,917 41,249 -1.7 -4.9
Total loans $8,047,810 $7,928,174 $6,836,263 1.5 17.7
Deposits:
---------
Non-interest bearing deposits $1,742,328 $1,677,578 $1,339,484 3.9 30.1
Savings and NOW 4,786,688 4,700,328 3,809,265 1.8 25.7
Certificates of deposit and
other time deposits 2,578,226 2,652,713 2,202,129 -2.8 17.1
Total deposits 9,107,242 9,030,619 7,350,878 0.8 23.9
Customer repurchase agreements
(6) 867,404 803,492 697,398 8.0 24.4
Total deposits and customer
repurchase agreements (6) $9,974,646 $9,834,111 $8,048,276 1.4 23.9
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31, Percent
------------------
Balances at period end 2012 2011 Variance
----------------------
Loans:
------
Commercial real estate $2,707,046 $2,495,727 8.5
Commercial and industrial 1,602,314 1,363,692 17.5
Commercial leases 130,133 110,795 17.5
------- -------
Commercial loans and leases 4,439,493 3,970,214 11.8
Direct installment 1,178,530 1,029,187 14.5
Residential mortgages 1,092,228 670,936 62.8
Indirect installment 582,037 540,789 7.6
Consumer LOC 805,494 607,280 32.6
Other 39,937 38,261 4.4
Total loans $8,137,719 $6,856,667 18.7
Deposits:
---------
Non-interest bearing deposits $1,738,195 $1,340,465 29.7
Savings and NOW 4,808,121 3,790,863 26.8
Certificates of deposit and other
time deposits 2,535,858 2,158,440 17.5
Total deposits 9,082,174 7,289,768 24.6
Customer repurchase agreements (6) 807,820 646,660 24.9
Total deposits and customer
repurchase agreements (6) $9,889,994 $7,936,428 24.6
Average balances
----------------
Loans:
------
Commercial real estate $2,643,867 $2,571,395 2.8
Commercial and industrial 1,488,579 1,178,653 26.3
Commercial leases 122,129 95,187 28.3
------- ------
Commercial loans and leases 4,254,575 3,845,235 10.6
Direct installment 1,115,355 1,028,388 8.5
Residential mortgages 1,171,482 695,573 68.4
Indirect installment 571,844 530,692 7.8
Consumer LOC 743,214 547,624 35.7
Other 40,429 40,856 -1.0
Total loans $7,896,899 $6,688,368 18.1
Deposits:
---------
Non-interest bearing deposits $1,615,419 $1,266,392 27.6
Savings and NOW 4,691,423 3,835,393 22.3
Certificates of deposit and other
time deposits 2,691,597 2,278,133 18.1
Total deposits 8,998,439 7,379,918 21.9
Customer repurchase agreements (6) 792,131 637,351 24.3
Total deposits and customer
repurchase agreements (6) $9,790,570 $8,017,269 22.1
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q12 - 4Q12 -
2012 2011 3Q12 4Q11
Fourth Third Fourth Percent Percent
Asset Quality Data Quarter Quarter Quarter Variance Variance
------------------ ------- -------
Non-Performing Assets
---------------------
Non-performing loans (8)
Non-accrual loans $66,004 $69,986 $94,335 -5.7 -30.0
Restructured loans 14,876 12,957 11,893 14.8 25.1
------ ------ ------
Non-performing loans 80,880 82,943 106,228 -2.5 -23.9
Other real estate owned (9) 35,257 35,613 34,719 -1.0 1.5
------ ------ ------
Non-performing loans and OREO 116,137 118,556 140,947 -2.0 -17.6
Non-performing investments 2,809 2,754 8,972 2.0 -68.7
----- ----- -----
Total non-performing assets $118,946 $121,310 $149,919 -1.9 -20.7
======== ======== ========
Non-performing loans / total loans 0.99% 1.04% 1.55%
Non-performing loans /total
originated loans (10) 1.12% 1.19% 1.63%
Non-performing loans + OREO /
total loans + OREO 1.42% 1.48% 2.05%
Non-performing loans + OREO /
total originated
loans + OREO (10) 1.60% 1.69% 2.15%
Non-performing assets /total
assets 0.99% 1.01% 1.53%
Allowance Rollforward
---------------------
Allowance for loan losses
(originated portfolio) (10)
Balance at beginning of period $99,725 $100,863 $108,813 -1.1 -8.4
Provision for loan losses 8,083 6,224 8,289 29.9 -2.5
Net loan charge-offs (7,614) (7,362) (16,440) 3.4 -53.7
Allowance for loan losses
(originated portfolio) 100,194 99,725 100,662 0.5 -0.5
Allowance for loan losses (acquired
portfolio) (11)
Balance at beginning of period 2,989 784 0 0.0 0.0
Provision for loan losses (acquired
portfolio) (11) 1,191 2,205 0 0.0 0.0
----- ----- ---
Allowance for loan losses (acquired
portfolio) (11) 4,180 2,989 0 0.0 0.0
Total allowance for loan losses $104,374 $102,714 $100,662 1.6 3.7
======== ======== ========
Allowance for loan losses /total
loans 1.28% 1.29% 1.47%
Allowance for loan losses
(originated loans) /total
originated loans (10) 1.39% 1.43% 1.54%
Allowance for loan losses /total
non-performing loans (8) 123.88% 120.23% 94.76%
Net loan charge-offs (annualized)
/total average loans 0.38% 0.37% 0.95%
Net loan charge-offs on originated
loans (annualized) /
total average originated loans (10) 0.45% 0.42% 1.01%
Delinquency -Originated Portfolio
(10)
---------------------------------
Loans 30-89 days past due $46,205 $39,380 $33,978 17.3 36.0
Loans 90+ days past due 6,706 6,167 7,016 8.7 -4.4
Non-accrual loans 66,004 69,986 94,335 -5.7 -30.0
------ ------ ------
Total past due and non-accrual
loans $118,915 $115,533 $135,329 2.9 -12.1
======== ======== ========
Total past due and non-accrual
loans /total originated loans 1.64% 1.66% 2.08%
Memo item:
Delinquency -Acquired Portfolio
(11) (12)
-------------------------------
Loans 30-89 days past due $22,799 $18,961 $12,195 20.2 87.0
Loans 90+ days past due 36,585 35,605 11,115 2.8 229.1
Non-accrual loans 0 0 0 0.0 0.0
--- --- ---
Total past due and non-accrual
loans $59,384 $54,566 $23,310 8.8 154.8
======= ======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31, Percent
------------------
Asset Quality Data 2012 2011 Variance
------------------
Non-Performing Assets
---------------------
Non-performing loans (8)
Non-accrual loans $66,004 $94,335 -30.0
Restructured loans 14,876 11,893 25.1
Non-performing loans 80,880 106,228 -23.9
Other real estate owned (9) 35,257 34,719 1.5
Non-performing loans and OREO 116,137 140,947 -17.6
Non-performing investments 2,809 8,972 -68.7
Total non-performing assets $118,946 $149,919 -20.7
Non-performing loans / total loans 0.99% 1.55%
Non-performing loans /total originated loans
(10) 1.12% 1.63%
Non-performing loans + OREO / total loans + OREO 1.42% 2.05%
Non-performing loans + OREO / total originated
loans + OREO (10) 1.60% 2.15%
Non-performing assets / total assets 0.99% 1.53%
Allowance Rollforward
---------------------
Allowance for loan losses (originated portfolio)
(10)
Balance at beginning of period $100,662 $106,120 -5.1
Provision for loan losses 27,122 33,641 -19.4
Net loan charge-offs (27,590) (39,099) -29.4
Allowance for loan losses (originated portfolio) 100,194 100,662 -0.5
Allowance for loan losses (acquired portfolio)
(11)
Balance at beginning of period 0 0 0.0
Provision for loan losses (acquired portfolio)
(11) 4,180 0 0.0
----- ---
Allowance for loan losses (acquired portfolio)
(11) 4,180 0 0.0
Total allowance for loan losses $104,374 $100,662 3.7
======== ========
Allowance for loan losses / total loans 1.28% 1.47%
Allowance for loan losses (originated loans) /
total
originated loans (10) 1.39% 1.54%
Allowance for loan losses /total non-performing
loans (8) 123.88% 94.76%
Net loan charge-offs (annualized) /total
average loans 0.35% 0.58%
Net loan charge-offs on originated loans
(annualized) /
total average originated loans (10) 0.41% 0.62%
Delinquency - Originated Portfolio (10)
--------------------------------------
Loans 30-89 days past due $46,205 $33,978 36.0
Loans 90+ days past due 6,706 7,016 -4.4
Non-accrual loans 66,004 94,335 -30.0
Total past due and non-accrual loans $118,915 $135,329 -12.1
======== ========
Total past due and non-accrual loans /total
originated loans 1.64% 2.08%
Memo item:
Delinquency - Acquired Portfolio (11) (12)
-----------------------------------------
Loans 30-89 days past due $22,799 $12,195 87.0
Loans 90+ days past due 36,585 11,115 229.1
Non-accrual loans 0 0 0.0
Total past due and non-accrual loans $59,384 $23,310 154.8
======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2012
----
Fourth Quarter Third Quarter
Interest Average Interest Average
Average Earned Yield Average Earned Yield
Outstanding or Paid or Rate Outstanding or Paid or Rate
Assets
Interest bearing deposits with banks $116,885 $68 0.23% $86,501 $47 0.21%
Taxable investment securities (13) 2,076,440 10,817 2.03% 2,067,146 11,471 2.17%
Non-taxable investment securities (14) 179,262 2,455 5.48% 185,614 2,581 5.56%
Loans (14) (15) 8,047,810 96,036 4.75% 7,928,174 95,509 4.80%
Total Interest Earning Assets (14) 10,420,397 109,376 4.18% 10,267,435 109,608 4.25%
Cash and due from banks 199,451 182,356
Allowance for loan losses (104,453) (103,757)
Premises and equipment 144,702 146,313
Other assets 1,328,186 1,349,857
Total Assets $11,988,283 $11,842,204
Liabilities
Deposits:
Interest-bearing demand $3,578,072 1,834 0.20% $3,489,658 1,764 0.20%
Savings 1,208,616 253 0.08% 1,210,670 252 0.08%
Certificates and other time 2,578,226 7,650 1.18% 2,652,713 8,189 1.23%
Customer repurchase agreements 867,404 603 0.27% 803,492 575 0.28%
Other short-term borrowings 156,197 597 1.50% 159,843 607 1.49%
Long-term debt 88,956 791 3.54% 90,869 860 3.76%
Junior subordinated debt 204,012 1,932 3.77% 203,999 1,978 3.86%
Total Interest Bearing Liabilities (14) 8,681,483 13,660 0.63% 8,611,244 14,225 0.66%
Non-interest bearing demand deposits 1,742,328 1,677,578
Other liabilities 164,042 168,100
Total Liabilities 10,587,853 10,456,922
Stockholders' equity 1,400,430 1,385,282
Total Liabilities and Stockholders' Equity $11,988,283 $11,842,204
Net Interest Earning Assets $1,729,914 $1,656,191
========== ==========
Net Interest Income (FTE) 95,716 95,383
Tax Equivalent Adjustment (1,798) (1,852)
------ ------
Net Interest Income $93,918 $93,531
======= =======
Net Interest Spread 3.56% 3.60%
==== ====
Net Interest Margin (14) 3.66% 3.70%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in
thousands, except
per share data)
2011
----
Fourth Quarter
Interest Average
Average Earned Yield
Outstanding or Paid or Rate
Assets
Interest bearing
deposits with banks $69,713 $37 0.21%
Taxable investment
securities (13) 1,522,572 9,724 2.50%
Non-taxable
investment
securities (14) 190,637 2,742 5.75%
Loans (14)
(15) 6,836,263 86,316 5.01%
Total Interest
Earning Assets (14) 8,619,185 98,819 4.56%
Cash and due from
banks 177,480
Allowance for loan
losses (109,588)
Premises and
equipment 127,872
Other
assets 1,132,935
Total
Assets $9,947,884
Liabilities
Deposits:
Interest-bearing
demand $2,961,513 2,165 0.32%
Savings 847,752 315 0.15%
Certificates and
other time 2,202,129 9,328 1.68%
Customer repurchase
agreements 697,398 744 0.42%
Other short-term
borrowings 171,555 856 1.95%
Long-term
debt 174,220 1,422 3.24%
Junior subordinated
debt 203,960 1,938 3.77%
Total Interest
Bearing Liabilities
(14) 7,258,527 16,768 0.92%
Non-interest bearing
demand deposits 1,339,484
Other
liabilities 130,298
Total
Liabilities 8,728,309
Stockholders' equity 1,219,575
Total Liabilities and
Stockholders' Equity $9,947,884
Net Interest Earning
Assets $1,360,658
==========
Net Interest Income
(FTE) 82,051
Tax Equivalent
Adjustment (1,922)
------
Net Interest Income $80,129
=======
Net Interest Spread 3.64%
====
Net Interest Margin
(14) 3.79%
====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year Ended December 31,
-------------------------------
2012 2011
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 $94,719 $210 0.22% $118,731 $275 0.23%
Taxable investment securities (13) 2,031,289 47,161 2.27% 1,555,939 42,061 2.65%
Non-taxable investment securities (14) 183,558 10,253 5.59% 198,197 11,402 5.75%
Loans (14) (15) 7,896,899 381,664 4.83% 6,688,368 345,282 5.16%
Total Interest Earning Assets (14) 10,206,465 439,288 4.30% 8,561,235 399,020 4.66%
Cash and due from banks 187,095 166,809
Allowance for loan losses (103,590) (109,754)
Premises and equipment 146,757 127,017
Other assets 1,346,094 1,125,857
Total Assets $11,782,821 $9,871,164
Liabilities
Deposits:
Interest-bearing demand $3,497,352 7,636 0.22% $2,889,720 9,912 0.34%
Savings 1,194,071 1,124 0.09% 945,673 1,683 0.18%
Certificates and other time 2,691,597 33,753 1.25% 2,278,133 41,940 1.84%
Customer repurchase agreements 792,131 2,506 0.31% 637,351 3,185 0.49%
Other short-term borrowings 158,875 2,656 1.64% 154,228 3,526 2.26%
Long-term debt 90,652 3,492 3.85% 200,158 6,403 3.20%
Junior subordinated debt 203,471 7,888 3.88% 203,950 7,968 3.91%
Total Interest Bearing Liabilities (14) 8,628,149 59,055 0.68% 7,309,213 74,617 1.02%
Non-interest bearing demand deposits 1,615,419 1,266,392
Other liabilities 162,759 113,618
Total Liabilities 10,406,327 8,689,223
Stockholders' equity 1,376,494 1,181,941
Total Liabilities and Stockholders' Equity $11,782,821 $9,871,164
Net Interest Earning Assets $1,578,316 $1,252,022
========== ==========
Net Interest Income (FTE) 380,233 324,403
Tax Equivalent Adjustment (7,382) (7,895)
------ ------
Net Interest Income $372,851 $316,508
======== ========
Net Interest Spread 3.62% 3.64%
==== ====
Net Interest Margin (14) 3.73% 3.79%
==== ====
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.
2012 2011
Fourth Third Fourth
Quarter Quarter Quarter
------- -------
Adjusted net income:
--------------------
Net income $28,955 $30,743 $23,737
Gain on sale of acquired building, net of tax 0 (942) 0
Branch consolidation costs, net of tax 1,214 0 0
Litigation settlement accrual, net of tax 1,950 0 0
Merger and severance costs, net of tax (3) 57 255
--- --- ---
Adjusted net income $32,116 $29,858 $23,992
======= ======= =======
Adjusted diluted earnings per share:
------------------------------------
Diluted earnings per share $0.21 $0.22 $0.19
Effect of gain on sale of acquired building, net of tax 0.00 (0.01) 0.00
Effect of branch consolidation costs, net of tax 0.01 0.00 0.00
Effect of litigation settlement accrual, net of tax 0.01 0.00 0.00
Effect of merger and severance costs, net of tax (0.00) 0.00 0.00
----- ---- ----
Adjusted diluted earnings per share $0.23 $0.21 $0.19
===== ===== =====
Return on average tangible equity (2):
--------------------------------------
Net income (annualized) $115,189 $122,304 $94,175
Amortization of intangibles, net of tax (annualized) 5,800 5,798 4,692
----- ----- -----
120,989 128,102 98,867
Average total shareholders' equity 1,400,430 1,385,282 1,219,575
Less: Average intangibles (715,962) (714,501) (599,352)
-------- -------- --------
684,468 670,781 620,223
Return on average tangible equity (2) 17.68% 19.10% 15.94%
===== ===== =====
Return on average tangible assets (3):
--------------------------------------
Net income (annualized) $115,189 $122,304 $94,175
Amortization of intangibles, net of tax (annualized) 5,800 5,798 4,692
----- ----- -----
120,989 128,102 98,867
Average total assets 11,988,283 11,842,204 9,947,884
Less: Average intangibles (715,962) (714,501) (599,352)
-------- -------- --------
11,272,321 11,127,703 9,348,532
Return on average tangible assets (3) 1.07% 1.15% 1.06%
==== ==== ====
Tangible book value per share:
------------------------------
Total shareholders' equity $1,402,069 $1,394,998 $1,210,199
Less: intangibles (713,405) (717,263) (599,414)
-------- -------- --------
688,664 677,735 610,785
Ending shares outstanding 139,929,242 139,792,727 127,220,759
Tangible book value per share $4.92 $4.85 $4.80
===== ===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except
per share data)
For the Year
Ended December 31,
------------------
2012 2011
Adjusted net income:
--------------------
Net income $110,410 $87,047
Gain on sale of acquired
building, net of tax (942) 0
Branch consolidation costs,
net of tax 1,214 0
Litigation settlement accrual,
net of tax 1,950 0
Merger and severance costs,
net of tax 5,203 3,238
----- -----
Adjusted net income $117,835 $90,285
======== =======
Adjusted diluted earnings per
share:
-----------------------------
Diluted earnings per share $0.79 $0.70
Effect of gain on sale of
acquired building, net of tax (0.01) 0.00
Effect of branch consolidation
costs, net of tax 0.01 0.00
Effect of litigation
settlement accrual, net of
tax 0.01 0.00
Effect of merger and severance
costs, net of tax 0.04 0.02
---- ----
Adjusted diluted earnings per
share $0.84 $0.72
===== =====
Return on average tangible
equity (2):
--------------------------
Net income (annualized) $110,410 $87,047
Amortization of intangibles,
net of tax (annualized) 5,938 4,698
----- -----
116,348 91,745
Average total shareholders'
equity 1,376,494 1,181,941
Less: Average intangibles (717,031) (599,851)
-------- --------
659,463 582,090
Return on average tangible
equity (2) 17.64% 15.76%
===== =====
Return on average tangible
assets (3):
--------------------------
Net income (annualized) $110,410 $87,047
Amortization of intangibles,
net of tax (annualized) 5,938 4,698
----- -----
116,348 91,745
Average total assets 11,782,821 9,871,164
Less: Average intangibles (717,031) (599,851)
-------- --------
11,065,790 9,271,313
Return on average tangible
assets (3) 1.05% 0.99%
==== ====
Tangible book value per share:
------------------------------
Total shareholders' equity $1,402,069 $1,210,199
Less: intangibles (713,405) (599,414)
-------- --------
688,664 610,785
Ending shares outstanding 139,929,242 127,220,759
Tangible book value per share $4.92 $4.80
===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
2012 2011
Fourth Third Fourth
Quarter Quarter Quarter
------- -------
Tangible equity / tangible assets (period end):
-----------------------------------------------
Total shareholders' equity $1,402,069 $1,394,998 $1,210,199
Less: intangibles (713,405) (717,263) (599,414)
-------- -------- --------
688,664 677,735 610,785
Total assets 12,023,976 11,984,891 9,786,483
Less: intangibles (713,405) (717,263) (599,414)
-------- -------- --------
11,310,570 11,267,628 9,187,069
Tangible equity / tangible assets (period end) 6.09% 6.01% 6.65%
==== ==== ====
Tangible equity, excluding AOCI / tangible
------------------------------------------
assets (period end) (7):
------------------------
Total shareholders' equity $1,402,069 $1,394,998 $1,210,199
Less: intangibles (713,405) (717,263) (599,414)
Less: AOCI 46,224 38,972 45,148
------ ------ ------
734,888 716,707 655,933
Total assets 12,023,976 11,984,891 9,786,483
Less: intangibles (713,405) (717,263) (599,414)
-------- -------- --------
11,310,570 11,267,628 9,187,069
Tangible equity, excluding AOCI / tangible
assets (period end) (7) 6.50% 6.36% 7.14%
==== ==== ====
(1) Net interest income is also presented on a fully taxable
equivalent (FTE) basis, as the Corporation believes this non-
GAAP measure is the preferred industry measurement for this
item.
(2) Return on average tangible equity is calculated by dividing
net income less amortization of intangibles by average equity
less average intangibles.
(3) Return on average tangible assets is calculated by dividing
net income less amortization of intangibles by average assets
less average intangibles.
(4) See non-GAAP financial measures for additional information
relating to the calculation of this item.
The efficiency ratio is calculated by dividing non-interest
expense less amortization of intangibles, other real estate
owned expense, FHLB prepayment penalties, litigation
settlement accrual, branch consolidation costs and merger
costs by the sum of net interest income on a fully taxable
equivalent basis plus non-interest income less gain on sale
of an acquired building, securities gains and net impairment
losses on securities plus losses on asset disposals related
(5) to the branch consolidation project.
(6) Customer repos are included in short-term borrowings on the
balance sheet.
(7) Accumulated other comprehensive income (AOCI) is comprised of
unrealized losses on securities, non-credit impairment
losses on other-than-temporarily impaired securities and
unrecognized pension and postretirement obligations.
(8) Does not include loans acquired at fair value ("acquired
portfolio").
(9) Includes all other real estate owned, including those balances
acquired through business combinations that have been in
acquired loans prior to foreclosure.
(10) "Originated Portfolio" or "Originated Loans" equals loans and
leases not included by definition in the Acquired Portfolio.
(11) "Acquired Portfolio" or "Acquired Loans" equals loans acquired
at fair value, accounted for in accordance with ASC 805 which
was effective January 1, 2009.
The risk of credit loss on these loans has been considered by
virtue of the Corporation's estimate of acquisition-date
fair value and these loans are considered accruing as the
Corporation primarily recognizes interest income through
accretion of the difference between the carrying value of
these loans and their expected cash flows. Because acquired
loans are initially recorded at an amount estimated to be
collectible, losses on such loans, when incurred, are first
applied against the non-accretable difference established in
purchase accounting and then to any allowance for loan losses
recognized subsequent to acquisition.
(12) Represents contractual balances.
(13) The average balances and yields earned on taxable investment
securities are based on historical cost.
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
(14) liabilities are also presented on an annualized basis.
(15) Average balances for loans include non-accrual loans. Loans
consist of average total loans less average unearned income.
The amount of loan fees included in interest income is
immaterial.
SOURCE F.N.B. Corporation
