F.N.B. CORPORATION 
By HERMITAGE, Pa., Jan. 21, 2014 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) today reported full year and fourth quarter of 2013 results. Net income available to common shareholders for the full year of 2013 totaled $117.8 million, or $0.80 per diluted common share, compared to net income of $110.4 million, or $0.79 per diluted common share in 2012. On an operating basis[1], net income available to common shareholders for the full year of 2013 totaled $123.5 million, or $0.84 per diluted common share, compared to full year 2012 net income of $117.8 million, or $0.84 per diluted common share.
Fourth quarter of 2013 net income available to common shareholders totaled $28.4 million, or $0.18 per diluted common share, compared to third quarter of 2013 net income of $31.6 million, or $0.22 per diluted common share and fourth quarter of 2012 net income of $29.0 million, or $0.21 per diluted common share. On an operating basis(1), fourth quarter of 2013 operating net income available to common shareholders was $32.5 million, or $0.21 per diluted common share, compared to third quarter of 2013 operating net income of $32.2 million, or $0.22 per diluted common share, and fourth quarter of 2012 operating net income of $32.1 million or $0.23 per diluted common share.
Vincent J. Delie, President and Chief Executive Officer, commented, "FNB has completed another year highlighted by growth and success. We maintained a high-quality earnings stream, despite significant regulatory-related revenue impacts and expense burden, and achieved several strategic company milestones. These accomplishments will mark 2013 as a transformational year. As we enter 2014, we have an expanded footprint in Baltimore, Maryland and Cleveland, Ohio and we are excited about our future potential in these dynamic markets. We are also very optimistic about our prospects across our core markets. Our capital structure is strengthened following the actions undertaken during the year and we continue to attract some of the most talented bankers in our markets. We believe FNB is better positioned than ever for the future."
Full Year Results Summary 2013 2012
---- ----
Reported Results
Net income available to
common shareholders ($ in
millions) $117.8 $110.4
Net income per diluted
common share $0.80 $0.79
Operating Results (Non-
GAAP)(1)
Net income available to
common shareholders ($ in
millions) $123.5 $117.8
Net income per diluted
common share $0.84 $0.84
Average Diluted Shares
Outstanding (in 000's) 147,810 140,640
----------------------- ------- -------
Quarterly Results Summary 4Q13 3Q13 4Q12
---- ---- ----
Reported Results
Net income available to
common shareholders ($ in
millions) $28.4 $31.6 $29.0
Net income per diluted
common share $0.18 $0.22 $0.21
Operating Results (Non-
GAAP)(1)
Net income available to
common shareholders ($ in
millions) $32.5 $32.2 $32.1
Net income per diluted
common share $0.21 $0.22 $0.23
Average Diluted Shares
Outstanding (in 000's) 157,858 146,446 140,923
----------------------- ------- ------- -------
Fourth Quarter 2013 Highlights
-- Loan growth momentum continued, with annualized average organic loan
growth on a linked-quarter basis of $129 million or 5.9% annualized.
-- Average transaction deposits and customer repurchase agreements grew
organically on a linked-quarter basis by $138 million or 6.8%
annualized. Transaction deposits and customer repurchase agreements
improved to 76% of total deposits and customer repurchase agreements at
December 31, 2013, up from 74% at December 31, 2012.
-- The net interest margin expanded to 3.67% from 3.64% in the prior
quarter.
-- Credit quality metrics improved and reflect continued solid performance.
For the originated portfolio, non-performing loans and OREO to total
loans and OREO improved 5 basis points to 1.44%, reflecting a $6.7
million, or 10.2%, reduction in non-accrual loan levels. Net
charge-offs were 0.30% annualized of total average originated loans,
compared to 0.26% annualized in the prior quarter.
-- The PVF Capital Corp. (PVFC) acquisition was completed on October 12,
2013.
-- F.N.B. Corporation completed a capital offering, raising net proceeds of
$161.3 million by issuing preferred and common equity through a
comprehensive capital action plan to proactively position F.N.B. for
Basel III implementation, including the redemption of certain trust
preferred securities, and to support future growth opportunities.
Fourth Quarter 2013 Results - Comparison to Prior Quarter
(All comparisons refer to the third quarter of 2013, except as noted)
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $108.7 million, increasing $7.6 million or 7.5%. The net interest margin of 3.67% improved 3 basis points from the prior quarter and included a $1.7 million, or 6 basis point, benefit from additional accretable yield resulting from better than expected cash flows on acquired loans. The October 2013 capital raise resulted in a temporary increase in short-term interest bearing cash balances, narrowing the fourth quarter net interest margin by 3 basis points. The majority of these cash balances were deployed by December 31, 2013 for the redemption of $115 million in trust preferred securities.
Average loans totaled $9.3 billion and increased $593 million, or 6.8%, reflecting loans acquired from the PVFC acquisition ($463 million) and annualized organic loan growth of $129 million or 5.9%. The fourth quarter marks the eighteenth consecutive linked-quarter of organic growth in total loans. Organic growth in average loans reflects continued positive results in both the commercial and consumer portfolios, with organic growth in the commercial portfolio of $52.6 million, or 4.4% annualized, and consumer loan organic growth (consisting of direct, consumer lines of credit and indirect loans) of $99.6 million or 13.8% annualized. The primary contributor to the organic consumer loan growth was $74.4 million of growth in home equity-related loans (direct and consumer lines of credit loans), of which 69% of the new loan volume represents a first lien position.
Average deposits and customer repurchase agreements totaled $11.1 billion and increased $710 million, or 6.8%, due to deposits acquired from the PVFC acquisition ($639 million) and annualized organic growth of $71.3 million or 2.7%. Organic growth in lower-cost transaction deposit accounts and customer repurchase agreements continued as these average balances grew $137.7 million or 6.8% annualized. Partially offsetting the transaction deposit growth was a continuation of the planned decline in time deposits due to FNB's liquidity position. In addition, FNB's funding remains predominantly customer-based, with total customer-based funding representing 97% of total deposits and borrowings. Loans as a percentage of total deposits and customer repurchase agreements were 86%.
Non-Interest Income
Non-interest income totaled $32.7 million, decreasing $0.2 million, or 0.5%, reflecting consistent results across most fee income categories which was offset by lower mortgage banking income. Wealth management revenues increased $0.5 million, or 7.3%, due to continued organic growth given heightened cross-selling efforts and improved market conditions. Non-interest income was 23% of total revenue.
Non-Interest Expense
Non-interest expense totaled $92.1 million, and included merger-related costs of $4.0 million and a loss on the early extinguishment of debt with trust preferred securities redemption costs of $2.2 million. When excluding these non-operating costs and the $0.9 million in merger costs in the prior quarter, non-interest expense increased $3.6 million or 4.4%. The increase primarily reflects the additional operating costs of PVFC during the fourth quarter. In addition, salaries and employee benefits included higher employee medical insurance of $1.1 million due to elevated claims experienced during the quarter, other real estate owned (OREO) expense was elevated by $1.7 million primarily due to the write-down of one property and amortization of intangibles increased following the addition of PVFC. The efficiency ratio was improved to 57.8% from 59.7%.
Credit Quality
Overall credit quality metrics improved and reflect continued solid performance. The ratio of non-performing loans and OREO to total loans and OREO improved 9 basis points to 1.24%. For the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO was 1.44%, a 5 basis point improvement reflecting a $6.7 million, or 10.2%, reduction of non-accrual loans. The positive movement in non-accrual levels contributed to a $9.6 million, or 16 basis point, improvement in total originated delinquency (total past due and non-accrual loans) to total originated loans, which was 1.28% at December 31, 2013.
The provision for loan losses totaled $8.4 million, compared to $7.3 million in the prior quarter. The increase reflects lower provision for loan losses for the originated portfolio given the continued improvement in credit quality offset by an increased provision in the acquired portfolio related to certain small business pools and the exit of lower-quality credits. Net charge-offs for the fourth quarter totaled $7.6 million, or 0.32% annualized, compared to $5.5 million or 0.25% annualized. For the originated portfolio, net charge-offs were 0.30% annualized compared to 0.26% annualized of average originated loans. Full year 2013 net charges-offs improved 7 basis points to 0.28% of total average loans for the full year of 2012. The ratio of the allowance for loan losses to total originated loans was 1.29% at December 31, 2013, compared to 1.34% at September 30, 2013, with the change directionally consistent with the improved performance of the originated portfolio. The ratio of the allowance for loan losses to total non-performing loans was 135.42%, compared to 127.37%.
Fourth Quarter 2013 Results - Comparison to Prior-Year Quarter
(All comparisons refer to the fourth quarter of 2012, except as noted)
Fourth quarter of 2013 results include the impact from the Annapolis Bancorp, Inc. (ANNB) and PVFC acquisitions completed on April 6, 2013 and October 12, 2013, respectively.
Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $108.7 million, increasing $12.9 million or 13.5%. The net interest margin expanded 1 basis point to 3.67%, reflecting solid loan and lower-cost transaction deposit growth. Average earning assets grew $1.4 billion, or 13.0%, through solid organic loan growth and the addition of ANNB and PVFC.
Average loans totaled $9.3 billion and increased $1.3 billion, or 16.1%, reflecting organic loan growth of $572 million, or 7.1%, and loans added in the ANNB and PVFC acquisitions. Growth in the commercial portfolio continued, with these average balances increasing organically $282.7 million or 6.5%. Average organic consumer loan growth (consisting of direct, consumer lines of credit and indirect loans) was also strong with these balances increasing $384.8 million, or 15.2%, driven by growth in home equity-related loans originated across FNB's footprint.
Total average deposits and customer repurchase agreements totaled $11.1 billion and increased $1.1 billion, or 11.4%, reflecting organic growth of $141.3, or 1.4%, and balances added in the ANNB and PVFC acquisitions. Organic growth in lower cost transaction deposit accounts and customer repurchase agreements was strong, growing $461.1 million, or 6.2%, through new account acquisition and customers maintaining higher average balances. Average non-interest bearing deposits grew organically $259.5 million or 14.9%.
Non-Interest Income
Non-interest income totaled $32.7 million, increasing $0.6 million, or 1.8%, reflecting the benefit of the ANNB and PVFC acquisitions and solid organic growth in fee-based business units. Securities commissions and fees increased $0.7 million, or 29.7%, and trust income increased $0.4 million or 11.4%. The fourth quarter of 2013 was negatively impacted by $2.7 million in lower customer-related interchange service charges due to the Durbin Amendment restrictions. The prior-year quarter included a $1.7 million non-recurring accrual for expected losses on asset disposals related to branch consolidations.
Non-Interest Expense
Non-interest expense totaled $92.1 million, increasing $15.5 million or 20.3%. The fourth quarter of 2013 included merger-related costs of $4.0 million and trust preferred securities redemption costs of $2.2 million. The fourth quarter of 2012 included $3.0 million in litigation costs to establish a settlement fund. Absent these items, the year-over-year increase in non-interest expense primarily reflects the additional operating costs related to the ANNB and PVFC acquisitions.
Credit Quality
Credit quality results reflect improvement over the prior-year quarter. The ratio of non-performing loans and OREO to total loans and OREO improved 18 basis points to 1.24%. For the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO was 1.44%, a 16 basis point improvement, reflecting the 11.0% reduction in non-accrual loans. Total delinquency (total past due and non-accrual loans) improved $14.8 million or 36 basis points to 1.28% at December 31, 2013.
The provision for loan losses totaled $8.4 million, compared to $9.3 million in the prior-year quarter. Net charge-offs for the fourth quarter totaled $7.6 million, or 0.32% annualized of total average loans, compared to $7.6 million or 0.38% annualized. For the originated portfolio, net charge-offs of $6.1 million improved by $1.6 million, or 15 basis points, to 0.30% annualized of total average originated loans. The ratio of the allowance for loan losses to total originated loans was 1.29% at December 31, 2013, compared to 1.38% at December 31, 2012, with the change directionally consistent with the improved performance of the portfolio.
Full Year 2013 Results
(All comparisons refer to the prior full year, except as noted)
Full year 2013 results include the impact from the ANNB and PVFC acquisitions completed on April 6, 2013 and October 12, 2013, respectively
Net interest income on a fully taxable equivalent basis totaled $403.0 million and grew $22.8 million or 6.0%. The net interest margin of 3.65% compares to 3.73%, with 3 basis points of the narrowing due to $2.6 million higher additional accretable yield on acquired loans in the prior year. The remaining narrowing primarily reflects lower yields on earning assets in response to the extended low interest rate environment. This is partially offset by the benefits to the net interest margin from strong growth in average loans, as well as lower cost transaction deposits and customer repurchase agreements and a lower cost of funds. Average earning assets grew $842.5 million, or 8.3%, reflecting strong organic loan growth and the ANNB and PVFC acquisitions.
Average loans totaled $8.7 billion and increased $807.8 million, or 10.3%, reflecting solid organic loan growth of $498.9 million, or 6.3%, and loans added in the ANNB and PVFC acquisitions. Total average deposits and customer repurchase agreements totaled $10.5 billion and increased $659.7 million, or 6.7%, reflecting organic growth and balances added in the ANNB and PVFC acquisitions. Organic growth in lower cost transaction deposit accounts and customer repurchase agreements was strong, growing $562.2 million or 7.9%. Growth in non-interest bearing deposits was a significant contributor, with average organic growth of $273.2 million or 16.9%.
Non-interest income totaled $135.8 million, increasing $4.5 million or 3.4%. Full-year 2013 non-interest income was negatively impacted by the $5.3 million in lower customer-related service charges attributable to the Durbin Amendment restrictions that became effective for FNB on July 1, 2013. Non-interest income benefited from the acquisitions and positive results from improved organic revenue growth results across several business lines, including wealth management and insurance, due to the implementation of revenue-enhancing strategies and initiatives. Wealth management revenue increased $4.4 million, or 18.6%, driven by cross-selling efforts with internal business partners, added sales professionals and improved market conditions. The 2013 fiscal year also included a $1.6 million gain on the extinguishment of debt, while the 2012 fiscal year included a $1.4 million gain on the sale of a building.
Non-interest expense totaled $338.2 million, an increase of $19.6 million, or 6.1%, primarily due to adding ANNB and PVFC operating costs and higher FDIC insurance expense of $2.1 million or 26.2%.
Credit quality results for full year of 2013 continued to trend positively resulting in year-over-year improvements. Full year net charge-offs totaled $24.7 million, or 0.28% annualized, improved from $27.6 million or 0.35% annualized. The full year provision for loan losses of $31.1 million was consistent with the prior-year level.
Income Taxes
The effective tax rate for the full year 2013 reflects the benefit of $1.4 million of tax credits realized on the prior-year income tax return.
Capital Position
Capital levels at December 31, 2013 are strengthened following the capital actions during the fourth quarter of 2013. During the fourth quarter, the Corporation raised $161.3 million in capital, through the issuance of 4.7 million shares of common stock ($54.4 million in net proceeds) and 4.4 million depository shares of non-cumulative perpetual preferred stock ($106.9 million in net proceeds). A portion of the proceeds were deployed during the quarter to redeem $115.0 million in trust preferred securities, with an additional $16.5 million expected to be redeemed in the first quarter of 2014.
The Corporation's capital levels at December 31, 2013 continue to exceed federal bank regulatory agency "well capitalized" thresholds. At December 31, 2013, the estimated total risk-based capital ratio was 12.2%, the estimated tier 1 risk-based capital ratio was 10.8% and the estimated leverage ratio was 8.8%.
At December 31, 2013, the tangible common equity to tangible assets ratio (non-GAAP measure) increased to 6.71% compared to 6.09% at September 30, 2013 and the tangible common book value per share (non-GAAP measure) increased to $5.38 from $5.04 at September 30, 2013. The dividend payout ratios for the fourth quarter of 2013 and full year of 2013 were 68% and 60%, respectively.
Conference Call
F.N.B. Corporation will host its quarterly conference call to discuss fourth quarter and full year 2013 financial results on Wednesday, January 22, 2014 at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (888) 500-6950 or (719) 325-2491 for international callers; the confirmation number is 3658778. The Webcast and presentation materials may be accessed through the "Shareholder and Investor Relations" section of the Corporation's Web site at www.fnbcorporation.com.
A replay of the call will be available from 1:00 p.m. Eastern Time the day of the call until midnight Eastern Time on Wednesday, January 29, 2014. The replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for international callers; the confirmation number is 3658778. The call transcript and Webcast will be available on the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation (NYSE: FNB), headquartered in Hermitage, Pennsylvania, is a regional diversified financial services company operating in six states and three major metropolitan areas including Pittsburgh, PA, where it holds the number three retail deposit market share, Baltimore, MD and Cleveland, OH. The Company has total assets of $13.6 billion and more than 265 banking offices throughout Pennsylvania, Ohio, West Virginia and Maryland. F.N.B. provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network, which is led by its largest affiliate, First National Bank of Pennsylvania. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, asset based lending, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. F.N.B.'s wealth management services include asset management, private banking and insurance. The Company also operates Regency Finance Company, which has more than 70 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee.
The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor's SmallCap 600 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation web site at www.fnbcorporation.com.
Cautionary Statement Regarding Forward-looking Information
We make statements in this press release and related conference call, and may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, capital levels, liquidity levels, asset levels, asset quality and other matters regarding or affecting F.N.B. Corporation and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance.
Our forward-looking statements are subject to the following principal risks and uncertainties:
-- Our businesses, financial results and balance sheet values are affected
by business and economic conditions, including the following:
-- Changes in interest rates and valuations in debt, equity and other
financial markets.
-- Disruptions in the liquidity and other functioning of U.S. and
global financial markets.
-- The impact on federal regulated agencies that have oversight or
review of F.N.B. Corporation's business and securities activities.
-- Actions by the Federal Reserve, U.S. Treasury and other government
agencies, including those that impact money supply and market
interest rates.
-- Changes in customers', suppliers' and other counterparties'
performance and creditworthiness which adversely affect loan
utilization rates, delinquencies, defaults and counterparty ability
to meet credit and other obligations.
-- Slowing or reversal of the current moderate economic recovery and
persistence or worsening levels of unemployment.
-- Changes in customer preferences and behavior, whether due to
changing business and economic conditions, legislative and
regulatory initiatives, or other factors.
-- Legal and regulatory developments could affect our ability to operate
our businesses, financial condition, results of operations, competitive
position, reputation, or pursuit of attractive acquisition
opportunities. Reputational impacts could affect matters such as
business generation and retention, liquidity, funding, and ability to
attract and retain management. These developments could include:
-- Changes resulting from legislative and regulatory reforms, including
broad-based restructuring of financial industry regulation; changes
to laws and regulations involving tax, pension, bankruptcy, consumer
protection, and other industry aspects; and changes in accounting
policies and principles. We will continue to be impacted by
extensive reforms provided for in the Dodd-Frank Wall Street Reform
and Consumer Protection Act and otherwise growing out of the recent
financial crisis, the precise nature, extent and timing of which,
and their impact on us, remains uncertain.
-- The impact on fee income opportunities resulting from the limit
imposed under the Durbin Amendment of the Dodd-Frank Act on the
maximum permissible interchange fee that banks may collect from
merchants for debit card transactions and federal court
determinations that may impose further restrictions on interchange
fee opportunities.
-- Changes to regulations governing bank capital and liquidity
standards, including due to the Dodd-Frank Act, Volcker rule and
Basel III initiatives.
-- Impact on business and operating results of any costs associated
with obtaining rights in intellectual property, the adequacy of our
intellectual property protection in general and rapid technological
developments and changes. Our ability to anticipate and respond to
technological changes can also impact our ability to respond to
customer needs and meet competitive demands.
-- Business and operating results are affected by our ability to identify
and effectively manage risks inherent in our businesses, including,
where appropriate, through effective use of third-party insurance,
derivatives, swaps, and capital management techniques, and to meet
evolving regulatory capital standards.
-- Increased competition, whether due to consolidation among financial
institutions; realignments or consolidation of branch offices, legal and
regulatory developments, industry restructuring or other causes, can
have an impact on customer acquisition, growth and retention and on
credit spreads and product pricing, which can affect market share,
deposits and revenues.
-- As demonstrated by our Annapolis Bancorp, Inc. and PVF Capital Corp.
acquisitions and the pending acquisition of BCSB Bancorp, Inc., we grow
our business in part by acquiring from time to time other financial
services companies, financial services assets and related deposits.
These acquisitions often present risks and uncertainties, including, the
possibility that the transaction cannot be consummated; regulatory
issues; cost, or difficulties, involved in integration and conversion of
the acquired businesses after closing; inability to realize expected
cost savings, efficiencies and strategic advantages; the extent of
credit losses in acquired loan portfolios and extent of deposit
attrition; and the potential dilutive effect to our current
shareholders. In addition, with respect to the acquisition of Annapolis
Bancorp, Inc. and PVF Capital Corp., and the pending acquisition of and
BCSB Bancorp, Inc., F.N.B. Corporation may experience difficulties in
expanding into a new market area, including retention of customers and
key personnel of Annapolis Bancorp, Inc., PVF Capital Corp., Inc. and
BCSB Bancorp, Inc.
-- Competition can have an impact on customer acquisition, growth and
retention and on credit spreads and product pricing, which can affect
market share, deposits and revenues. Industry restructuring in the
current environment could also impact our business and financial
performance through changes in counterparty creditworthiness and
performance and the competitive and regulatory landscape. Our ability
to anticipate and respond to technological changes can also impact our
ability to respond to customer needs and meet competitive demands.
-- Business and operating results can also be affected by widespread
disasters, dislocations, terrorist activities, cyber-attacks or
international hostilities through their impacts on the economy and
financial markets.
We provide greater detail regarding some of these factors in our 2012 Form 10-K and 2013 Form 10-Qs, including the Risk Factors section of those reports, and our subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.fnbcorporation.com. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.
(1) Non-GAAP measures, refer to Non-GAAP Disclosures and detail in the accompanying data tables.
DATA SHEETS FOLLOW
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
4Q13 - 4Q13 -
2013 2012 3Q13 4Q12
Fourth Third Fourth Percent Percent
Statement of earnings Quarter Quarter Quarter Variance Variance
--------------------- ------- -------
Interest income $117,637 $109,790 $107,578 7.1 9.4
Interest expense 10,691 10,536 13,660 1.5 -21.7
Net interest income 106,946 99,254 93,918 7.8 13.9
Taxable equivalent adjustment 1,704 1,781 1,798 -4.3 -5.2
Net interest income (FTE) (1) 108,650 101,035 95,716 7.5 13.5
Provision for loan losses 8,366 7,280 9,274 14.9 -9.8
Net interest income after provision
(FTE) 100,284 93,755 86,442 7.0 16.0
Impairment losses on securities (27) 0 (186) n/m n/m
Non-credit related losses on
securities not
expected to be sold (recognized in
other
comprehensive income) 0 0 93 n/m n/m
--- --- ---
Net impairment losses on securities (27) 0 (93) n/m n/m
Service charges 16,805 16,427 17,517 2.3 -4.1
Trust income 4,323 4,176 3,880 3.5 11.4
Insurance commissions and fees 3,979 4,088 3,794 -2.7 4.9
Securities commissions and fees 2,921 2,575 2,252 13.4 29.7
Mortgage banking 370 885 1,257 -58.2 -70.6
Gain (loss) on sale of securities 51 5 3 n/m n/m
Other 4,237 4,654 3,457 -9.0 22.5
Total non-interest income 32,659 32,810 32,067 -0.5 1.8
Salaries and employee benefits 47,710 45,155 40,964 5.7 16.5
Occupancy and equipment 14,006 12,547 11,676 11.6 20.0
FDIC insurance 1,995 3,161 1,905 -36.9 4.7
Amortization of intangibles 2,344 2,067 2,183 13.4 7.4
Other real estate owned 1,927 277 (631) 596.8 -405.1
Merger-related 3,999 913 (5) n/m n/m
Other 20,087 19,053 20,440 5.4 -1.7
Total non-interest expense 92,068 83,173 76,532 10.7 20.3
Income before income taxes 40,875 43,392 41,977 -5.8 -2.6
Taxable equivalent adjustment 1,704 1,781 1,798 -4.3 -5.2
Income taxes 10,732 9,977 11,224 7.6 -4.4
Net income 28,439 31,634 28,955 -10.1 -1.8
Preferred stock dividends 0 0 0
--- --- ---
Net income available to common
stockholders $28,439 $31,634 $28,955 -10.1 -1.8
Earnings per common share:
Basic $0.18 $0.22 $0.21 -18.2 -14.3
Diluted $0.18 $0.22 $0.21 -18.2 -14.3
Non-GAAP Operating Results
--------------------------
Operating net income available to
common stockholders:
Net income available to common
stockholders $28,439 $31,634 $28,955
(Gain) loss on extinguishment of debt,
net of tax 1,412 0 0
Gain on sale of acquired building, net
of tax 0 0 0
Branch consolidation costs, net of tax 0 0 1,214
Litigation settlement accrual, net of
tax 0 0 1,950
Merger and severance costs, net of tax 2,599 594 (3)
----- --- ---
Operating net income available to
common stockholders $32,450 $32,228 $32,116 0.7 1.0
======= ======= =======
Operating diluted earnings per common
share:
Diluted earnings per common share $0.18 $0.22 $0.21
Effect of (gain) loss on
extinguishment of debt, net of tax 0.01 0.00 0.00
Effect of gain on sale of acquired
building, net of tax 0.00 0.00 0.00
Effect of branch consolidation costs,
net of tax 0.00 0.00 0.01
Effect of litigation settlement
accrual, net of tax 0.00 0.00 0.01
Effect of merger and severance costs,
net of tax 0.02 0.00 (0.00)
---- ---- -----
Operating diluted earnings per common
share $0.21 $0.22 $0.23 -4.5 -8.7
===== ===== =====
F.N.B.
CORPORATION
------------
(Unaudited)
(Dollars
in
thousands,
except
per
share
data)
For the Year
Ended
December 31, Percent
------------
Statement
of
earnings 2013 2012 Variance
---------
Interest
income $440,386 $431,906 2.0
Interest
expense 44,344 59,055 -24.9
Net
interest
income 396,042 372,851 6.2
Taxable
equivalent
adjustment 6,969 7,382 -5.6
Net
interest
income
(FTE)
(1) 403,011 380,233 6.0
Provision
for
loan
losses 31,090 31,302 -0.7
Net
interest
income
after
provision
(FTE) 371,921 348,931 6.6
Impairment
losses
on
securities (27) (626) n/m
Non-
credit
related
losses
on
securities
not
expected
to be
sold
(recognized
in
other
comprehensive
income) 0 414 n/m
--- ---
Net
impairment
losses
on
securities (27) (212) n/m
Service
charges 68,221 69,546 -1.9
Trust
income 16,751 15,239 9.9
Insurance
commissions
and
fees 16,598 16,426 1.0
Securities
commissions
and
fees 11,286 8,395 34.4
Mortgage
banking 3,452 4,153 -16.9
Gain
(loss)
on
sale
of
securities 808 305 n/m
Other 18,689 17,400 7.4
------
Total
non-
interest
income 135,778 131,252 3.4
Salaries
and
employee
benefits 179,971 168,219 7.0
Occupancy
and
equipment 51,688 46,898 10.2
FDIC
insurance 10,192 8,077 26.2
Amortization
of
intangibles 8,407 8,924 -5.8
Other
real
estate
owned 3,215 3,268 -1.6
Merger-
related 8,210 7,394 11.0
Other 76,487 75,838 0.9
------
Total
non-
interest
expense 338,170 318,618 6.1
Income
before
income
taxes 169,529 161,565 4.9
Taxable
equivalent
adjustment 6,969 7,382 -5.6
Income
taxes 44,756 43,773 2.2
------
Net
income 117,804 110,410 6.7
Preferred
stock
dividends 0 0
--- ---
Net
income
available
to
common
stockholders $117,804 $110,410 6.7
Earnings
per
common
share:
Basic $0.81 $0.79 2.5
Diluted $0.80 $0.79 1.3
Non-
GAAP
Operating
Results
----------
Operating
net
income
available
to
common
stockholders:
Net
income
available
to
common
stockholders $117,804 $110,410
(Gain)
loss
on
extinguishment
of
debt,
net of
tax 399 0
Gain on
sale
of
acquired
building,
net of
tax 0 (942)
Branch
consolidation
costs,
net of
tax 0 1,214
Litigation
settlement
accrual,
net of
tax 0 1,950
Merger
and
severance
costs,
net of
tax 5,337 5,203
----- -----
Operating
net
income
available
to
common
stockholders $123,540 $117,835 4.8
======== ========
Operating
diluted
earnings
per
common
share:
Diluted
earnings
per
common
share $0.80 $0.79
Effect
of
(gain)
loss
on
extinguishment
of
debt,
net of
tax 0.00 0.00
Effect
of
gain
on
sale
of
acquired
building,
net of
tax 0.00 (0.01)
Effect
of
branch
consolidation
costs,
net of
tax 0.00 0.01
Effect
of
litigation
settlement
accrual,
net of
tax 0.00 0.01
Effect
of
merger
and
severance
costs,
net of
tax 0.04 0.04
---- ----
Operating
diluted
earnings
per
common
share $0.84 $0.84 0.0
===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q13 - 4Q13 -
2013 2012 3Q13 4Q12
Fourth Third Fourth Percent Percent
Balance Sheet (at period end) Quarter Quarter Quarter Variance Variance
---------------------------- ------- -------
Assets
Cash and due from banks $197,534 $234,746 $216,233 -15.9 -8.6
Interest bearing deposits with banks 16,447 48,763 22,811 -66.3 -27.9
------ ------ ------
Cash and cash equivalents 213,981 283,509 239,044 -24.5 -10.5
Securities available for sale 1,141,650 1,115,558 1,172,683 2.3 -2.6
Securities held to maturity 1,199,169 1,180,992 1,106,563 1.5 8.4
Residential mortgage loans held for sale 7,138 8,105 27,751 -11.9 -74.3
Loans, net of unearned income 9,506,094 8,836,905 8,137,719 7.6 16.8
Allowance for loan losses (110,784) (110,052) (104,374) 0.7 6.1
-------- -------- --------
Net loans 9,395,310 8,726,853 8,033,345 7.7 17.0
Premises and equipment, net 154,032 147,406 140,367 4.5 9.7
Goodwill 764,248 713,509 675,555 7.1 13.1
Core deposit and other intangible assets, net 47,608 35,400 37,851 34.5 25.8
Bank owned life insurance 289,402 263,781 246,088 9.7 17.6
Other assets 350,867 315,166 344,729 11.3 1.8
------- ------- -------
Total Assets $13,563,405 $12,790,279 $12,023,976 6.0 12.8
=========== =========== ===========
Liabilities
Deposits:
Non-interest bearing demand $2,200,081 $2,115,813 $1,738,195 4.0 26.6
Savings and NOW 5,392,078 5,247,922 4,808,121 2.7 12.1
Certificates and other time deposits 2,606,073 2,359,636 2,535,858 10.4 2.8
--------- --------- ---------
Total Deposits 10,198,232 9,723,371 9,082,174 4.9 12.3
Other liabilities 130,418 133,061 163,151 -2.0 -20.1
Short-term borrowings 1,241,239 1,166,180 1,083,138 6.4 14.6
Long-term debt 143,928 91,807 89,425 56.8 60.9
Junior subordinated debt 75,205 194,213 204,019 -61.3 -63.1
------ ------- -------
Total Liabilities 11,789,022 11,308,632 10,621,907 4.2 11.0
Stockholders' Equity
Preferred stock 106,882 0 0 n/m n/m
Common stock 1,592 1,455 1,398 9.4 13.9
Additional paid-in capital 1,608,117 1,440,779 1,376,601 11.6 16.8
Retained earnings 121,870 112,649 75,312 8.2 61.8
Accumulated other comprehensive income (56,924) (66,171) (46,224) -14.0 23.1
Treasury stock (7,154) (7,065) (5,018) 1.2 42.6
------ ------ ------
Total Stockholders' Equity 1,774,383 1,481,647 1,402,069 19.8 26.6
--------- --------- ---------
Total Liabilities and Stockholders' Equity $13,563,405 $12,790,279 $12,023,976 6.0 12.8
=========== =========== ===========
Selected average balances
-------------------------
Total assets $13,456,936 $12,615,338 $11,988,283 6.7 12.3
Earning assets 11,774,690 11,047,767 10,420,397 6.6 13.0
Interest bearing deposits with banks 130,027 30,224 116,885 330.2 11.2
Securities 2,315,793 2,275,473 2,255,702 1.8 2.7
Residential mortgage loans held for sale 6,128 12,060 18,945 -49.2 -67.7
Loans, net of unearned income 9,322,742 8,730,010 8,028,865 6.8 16.1
Allowance for loan losses 111,654 110,463 104,453 1.1 6.9
Goodwill and intangibles 804,098 748,592 715,962 7.4 12.3
Deposits and customer repurchase agreements (6) 11,113,386 10,402,935 9,974,646 6.8 11.4
Short-term borrowings 173,405 318,023 156,197 -45.5 11.0
Long-term debt 138,631 91,659 88,956 51.2 55.8
Trust preferred securities 192,533 194,206 204,012 -0.9 -5.6
Total stockholders' equity 1,694,669 1,475,751 1,400,430 14.8 21.0
Preferred stockholders' equity 71,126 0 0 n/m n/m
Common stock data
-----------------
Average diluted shares outstanding 157,858,351 146,446,442 140,923,088 7.8 12.0
Period end shares outstanding 158,967,211 145,263,435 139,929,242 9.4 13.6
Book value per common share $10.49 $10.20 $10.02 2.8 4.7
Tangible book value per common share (4) $5.38 $5.04 $4.92 6.7 9.4
Dividend payout ratio (common) 67.58% 55.51% 58.51%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year Ended
December 31, Percent
------------
Balance Sheet (at period
end) 2013 2012 Variance
------------------------
Assets
Cash and due from banks $197,534 $216,233 -8.6
Interest bearing
deposits with banks 16,447 22,811 -27.9
------ ------
Cash and cash
equivalents 213,981 239,044 -10.5
Securities available for
sale 1,141,650 1,172,683 -2.6
Securities held to
maturity 1,199,169 1,106,563 8.4
Residential mortgage
loans held for sale 7,138 27,751 -74.3
Loans, net of unearned
income 9,506,094 8,137,719 16.8
Allowance for loan
losses (110,784) (104,374) 6.1
-------- --------
Net loans 9,395,310 8,033,345 17.0
Premises and equipment,
net 154,032 140,367 9.7
Goodwill 764,248 675,555 13.1
Core deposit and other
intangible assets, net 47,608 37,851 25.8
Bank owned life
insurance 289,402 246,088 17.6
Other assets 350,867 344,729 1.8
Total Assets $13,563,405 $12,023,976 12.8
=========== ===========
Liabilities
Deposits:
Non-interest bearing
demand $2,200,081 $1,738,195 26.6
Savings and NOW 5,392,078 4,808,121 12.1
Certificates and other
time deposits 2,606,073 2,535,858 2.8
--------- ---------
Total Deposits 10,198,232 9,082,174 12.3
Other liabilities 130,418 163,151 -20.1
Short-term borrowings 1,241,239 1,083,138 14.6
Long-term debt 143,928 89,425 60.9
Junior subordinated debt 75,205 204,019 -63.1
------ -------
Total Liabilities 11,789,022 10,621,907 11.0
Stockholders' Equity
Preferred stock 106,882 0 n/m
Common stock 1,592 1,398 13.9
Additional paid-in
capital 1,608,117 1,376,601 16.8
Retained earnings 121,870 75,312 61.8
Accumulated other
comprehensive income (56,924) (46,224) 23.1
Treasury stock (7,154) (5,018) 42.6
Total Stockholders'
Equity 1,774,383 1,402,069 26.6
--------- ---------
Total Liabilities and
Stockholders' Equity $13,563,405 $12,023,976 12.8
=========== ===========
Selected average
balances
----------------
Total assets $12,640,685 $11,782,821 7.3
Earning assets 11,049,009 10,206,464 8.3
Interest bearing
deposits with banks 57,605 94,719 -39.2
Securities 2,285,602 2,214,846 3.2
Residential mortgage
loans held for sale 17,772 16,645 6.8
Loans, net of unearned
income 8,688,030 7,880,254 10.3
Allowance for loan
losses 109,050 103,589 5.3
Goodwill and intangibles 752,894 717,031 5.0
Deposits and customer
repurchase agreements
(6) 10,450,247 9,790,571 6.7
Short-term borrowings 231,326 158,875 45.6
Long-term debt 103,772 90,652 14.5
Trust preferred
securities 199,296 203,471 -2.1
Total stockholders'
equity 1,514,471 1,376,493 10.0
Preferred stockholders'
equity 17,928 0 n/m
Common stock data
-----------------
Average diluted shares
outstanding 147,809,504 140,640,165 5.1
Period end shares
outstanding 158,967,211 139,929,242 13.6
Book value per common
share $10.49 $10.02 4.7
Tangible book value per
common share (4) $5.38 $4.92 9.4
Dividend payout ratio
(common) 60.48% 61.27%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q13 - 4Q13 -
2013 2012 3Q13 4Q12
Fourth Third Fourth Percent Percent
Quarter Quarter Quarter Variance Variance
------- -------
Performance ratios
------------------
Return on average equity 6.66% 8.50% 8.23%
Return on average tangible equity
(2) (4) 13.35% 17.99% 17.65%
Return on average tangible common
equity (2) (4) 14.51% 17.99% 17.65%
Return on average assets 0.84% 0.99% 0.96%
Return on average tangible assets
(3) (4) 0.94% 1.10% 1.07%
Net interest margin (FTE) (1) 3.67% 3.64% 3.66%
Yield on earning assets (FTE) (1) 4.03% 4.01% 4.18%
Cost of funds 0.45% 0.47% 0.63%
Efficiency ratio (FTE) (1) (5) 57.77% 59.71% 55.43%
Effective tax rate 27.40% 23.98% 27.94%
Capital ratios
--------------
Equity / assets (period end) 13.08% 11.58% 11.66%
Leverage ratio 8.80% 8.42% 8.29%
Tangible equity /tangible assets
(period end) (4) 7.55% 6.09% 6.09%
Tangible common equity /tangible
assets (period end) (4) 6.71% 6.09% 6.09%
Tangible common equity, excluding
AOCI /tangible
assets (period end) (4) (7) 7.16% 6.63% 6.50%
Balances at period end
----------------------
Loans:
------
Commercial real estate $3,245,209 $2,920,808 $2,707,046 11.1 19.9
Commercial and industrial 1,881,474 1,755,235 1,602,314 7.2 17.4
Commercial leases 158,895 141,714 130,133 12.1 22.1
------- ------- -------
Commercial loans and leases 5,285,578 4,817,757 4,439,493 9.7 19.1
Direct installment 1,467,236 1,408,539 1,178,530 4.2 24.5
Residential mortgages 1,086,739 1,031,805 1,092,228 5.3 -0.5
Indirect installment 655,587 638,312 582,037 2.7 12.6
Consumer LOC 965,771 887,981 805,494 8.8 19.9
Other 45,183 52,511 39,937 -14.0 13.1
Total loans $9,506,094 $8,836,905 $8,137,719 7.6 16.8
Deposits:
---------
Non-interest bearing deposits $2,200,081 $2,115,813 $1,738,195 4.0 26.6
Savings and NOW 5,392,078 5,247,922 4,808,121 2.7 12.1
Certificates of deposit and other
time deposits 2,606,073 2,359,636 2,535,858 10.4 2.8
Total deposits 10,198,232 9,723,371 9,082,174 4.9 12.3
Customer repurchase agreements (6) 841,741 834,610 807,820 0.9 4.2
Total deposits and customer
repurchase agreements (6) $11,039,973 $10,557,981 $9,889,994 4.6 11.6
Average balances
----------------
Loans:
------
Commercial real estate $3,184,720 $2,891,354 $2,657,325 10.1 19.8
Commercial and industrial 1,818,355 1,753,053 1,567,340 3.7 16.0
Commercial leases 150,308 138,441 128,535 8.6 16.9
------- ------- -------
Commercial loans and leases 5,153,383 4,782,848 4,353,200 7.7 18.4
Direct installment 1,452,597 1,362,881 1,157,480 6.6 25.5
Residential mortgages 1,085,465 1,043,349 1,103,713 4.0 -1.7
Indirect installment 646,876 621,705 581,748 4.0 11.2
Consumer LOC 939,646 875,239 793,496 7.4 18.4
Other 44,775 43,988 39,228 1.8 14.1
Total loans $9,322,742 $8,730,010 $8,028,865 6.8 16.1
Deposits:
---------
Non-interest bearing deposits $2,168,847 $2,033,370 $1,742,328 6.7 24.5
Savings and NOW 5,468,290 5,229,488 4,786,688 4.6 14.2
Certificates of deposit and other
time deposits 2,609,294 2,391,828 2,578,226 9.1 1.2
Total deposits 10,246,431 9,654,686 9,107,242 6.1 12.5
Customer repurchase agreements (6) 866,955 748,249 867,404 15.9 -0.1
Total deposits and customer
repurchase agreements (6) $11,113,386 $10,402,935 $9,974,646 6.8 11.4
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year Ended
December 31, Percent
------------
2013 2012 Variance
Performance ratios
------------------
Return on average equity 7.78% 8.02%
Return on average
tangible equity (2) (4) 16.19% 17.62%
Return on average
tangible common equity
(2) (4) 16.58% 17.62%
Return on average assets 0.93% 0.94%
Return on average
tangible assets (3) (4) 1.04% 1.05%
Net interest margin
(FTE) (1) 3.65% 3.73%
Yield on earning assets
(FTE) (1) 4.05% 4.30%
Cost of funds 0.49% 0.68%
Efficiency ratio (FTE)
(1) (5) 58.94% 58.32%
Effective tax rate 27.53% 28.39%
Capital ratios
--------------
Equity /assets (period
end) 13.08% 11.66%
Leverage ratio 8.80% 8.29%
Tangible equity /
tangible assets (period
end) (4) 7.55% 6.09%
Tangible common equity /
tangible assets (period
end) (4) 6.71% 6.09%
Tangible common equity,
excluding AOCI /
tangible
assets (period end) (4)
(7) 7.16% 6.50%
Balances at period end
----------------------
Loans:
------
Commercial real estate $3,245,209 $2,707,046 19.9
Commercial and
industrial 1,881,474 1,602,314 17.4
Commercial leases 158,895 130,133 22.1
------- -------
Commercial loans and
leases 5,285,578 4,439,493 19.1
Direct installment 1,467,236 1,178,530 24.5
Residential mortgages 1,086,739 1,092,228 -0.5
Indirect installment 655,587 582,037 12.6
Consumer LOC 965,771 805,494 19.9
Other 45,183 39,937 13.1
Total loans $9,506,094 $8,137,719 16.8
Deposits:
---------
Non-interest bearing
deposits $2,200,081 $1,738,195 26.6
Savings and NOW 5,392,078 4,808,121 12.1
Certificates of deposit
and other time deposits 2,606,073 2,535,858 2.8
Total deposits 10,198,232 9,082,174 12.3
Customer repurchase
agreements (6) 841,741 807,820 4.2
Total deposits and
customer repurchase
agreements (6) $11,039,973 $9,889,993 11.6
Average balances
----------------
Loans:
------
Commercial real estate $2,908,164 $2,643,867 10.0
Commercial and
industrial 1,740,138 1,488,579 16.9
Commercial leases 138,214 122,129 13.2
------- -------
Commercial loans and
leases 4,786,516 4,254,575 12.5
Direct installment 1,311,441 1,115,355 17.6
Residential mortgages 1,068,130 1,154,837 -7.5
Indirect installment 608,430 571,844 6.4
Consumer LOC 871,083 743,214 17.2
Other 42,430 40,429 4.9
Total loans $8,688,030 $7,880,254 10.3
Deposits:
---------
Non-interest bearing
deposits $1,963,431 $1,615,419 21.5
Savings and NOW 5,203,251 4,691,424 10.9
Certificates of deposit
and other time deposits 2,489,129 2,691,597 -7.5
Total deposits 9,655,811 8,998,440 7.3
Customer repurchase
agreements (6) 794,436 792,131 0.3
Total deposits and
customer repurchase
agreements (6) $10,450,247 $9,790,571 6.7
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
4Q13 - 4Q13 -
2013 2012 3Q13 4Q12
Fourth Third Fourth Percent Percent
Asset Quality Data Quarter Quarter Quarter Variance Variance
------------------ ------- -------
Non-Performing Assets
---------------------
Non-performing loans (8)
Non-accrual loans $58,755 $65,451 $66,004 -10.2 -11.0
Restructured loans 18,698 17,252 14,876 8.4 25.7
------ ------ ------
Non-performing loans 77,453 82,703 80,880 -6.3 -4.2
Other real estate owned (9) 40,681 35,144 35,257 15.8 15.4
------ ------ ------
Non-performing loans and
OREO 118,134 117,847 116,137 0.2 1.7
Non-performing investments 797 733 2,809 8.7 -71.6
--- --- -----
Total non-performing assets $118,931 $118,580 $118,946 0.3 0.0
======== ======== ========
Non-performing loans /
total loans 0.81% 0.94% 0.99%
Non-performing loans /
total originated loans (10) 0.95% 1.05% 1.12%
Non-performing loans + OREO
/total loans + OREO 1.24% 1.33% 1.42%
Non-performing loans + OREO
/total originated
loans + OREO (10) 1.44% 1.49% 1.60%
Non-performing assets /
total assets 0.88% 0.93% 0.99%
Allowance Rollforward
---------------------
Allowance for loan losses
(originated portfolio) (10)
Balance at beginning of
period $105,336 $102,849 $99,725 2.4 5.6
Provision for loan losses 5,653 7,505 8,144 -24.7 -30.6
Net loan charge-offs (6,105) (5,018) (7,675) 21.7 -20.5
Allowance for loan losses
(originated portfolio) (10) 104,884 105,336 100,194 -0.4 4.7
Allowance for loan losses
(acquired portfolio) (11)
Balance at beginning of
period 4,716 5,431 2,989
Provision for loan losses 2,713 (226) 1,130
Net loan charge-offs (1,529) (489) 61
------ ---- ---
Allowance for loan losses
(acquired portfolio) (11) 5,900 4,716 4,180 25.1 41.1
Total allowance for loan
losses $110,784 $110,052 $104,374 0.7 6.1
======== ======== ========
Allowance for loan losses /
total loans 1.17% 1.25% 1.28%
Allowance for loan losses
(originated loans) /total
originated loans (10) 1.29% 1.34% 1.38%
Allowance for loan losses
(originated loans) /total
non-performing loans (8) 135.42% 127.37% 123.88%
Net loan charge-offs
(annualized) /total
average loans 0.32% 0.25% 0.38%
Net loan charge-offs on
originated loans
(annualized) /
total average originated
loans (10) 0.30% 0.26% 0.45%
Delinquency -Originated
Portfolio (10)
-----------------------
Loans 30-89 days past due $37,342 $41,212 $46,205 -9.4 -19.2
Loans 90+ days past due 7,971 7,018 6,706 13.6 18.9
Non-accrual loans 58,755 65,451 66,004 -10.2 -11.0
------ ------ ------
Total past due and non-
accrual loans $104,068 $113,681 $118,915 -8.5 -12.5
======== ======== ========
Total past due and non-
accrual loans /total
originated loans 1.28% 1.44% 1.64%
Memo item:
Delinquency -Acquired
Portfolio (11) (12)
---------------------
Loans 30-89 days past due $30,205 $16,968 $22,799 78.0 32.5
Loans 90+ days past due 45,823 41,458 36,585 10.5 25.3
Non-accrual loans 0 0 0 0.0 0.0
--- --- ---
Total past due and non-
accrual loans $76,028 $58,426 $59,384 30.1 28.0
======= ======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended
December 31, Percent
------------
Asset Quality Data 2013 2012 Variance
------------------
Non-Performing Assets
---------------------
Non-performing loans (8)
Non-accrual loans $58,755 $66,004 -11.0
Restructured loans 18,698 14,876 25.7
Non-performing loans 77,453 80,880 -4.2
Other real estate owned
(9) 40,681 35,257 15.4
Non-performing loans
and OREO 118,134 116,137 1.7
Non-performing
investments 797 2,809 -71.6
Total non-performing
assets $118,931 $118,946 0.0
Non-performing loans /
total loans 0.81% 0.99%
Non-performing loans /
total originated loans
(10) 0.95% 1.12%
Non-performing loans +
OREO /total loans +
OREO 1.24% 1.42%
Non-performing loans +
OREO /total originated
loans + OREO (10) 1.44% 1.60%
Non-performing assets /
total assets 0.88% 0.99%
Allowance Rollforward
---------------------
Allowance for loan
losses (originated
portfolio) (10)
Balance at beginning of
period $100,194 $100,662 -0.5
Provision for loan
losses 26,165 27,183 -3.7
Net loan charge-offs (21,475) (27,651) -22.3
Allowance for loan
losses (originated
portfolio) (10) 104,884 100,194 4.7
Allowance for loan
losses (acquired
portfolio) (11)
Balance at beginning of
period 4,180 0
Provision for loan
losses 4,924 4,119
Net loan charge-offs (3,204) 61
------ ---
Allowance for loan
losses (acquired
portfolio) (11) 5,900 4,180 41.1
Total allowance for loan
losses $110,784 $104,374 6.1
======== ========
Allowance for loan
losses /total loans 1.17% 1.28%
Allowance for loan
losses (originated
loans) /total
originated loans (10) 1.29% 1.38%
Allowance for loan
losses (originated
loans) /total
non-performing loans
(8) 135.42% 123.88%
Net loan charge-offs
(annualized) /total
average loans 0.28% 0.35%
Net loan charge-offs on
originated loans
(annualized) /
total average originated
loans (10) 0.28% 0.41%
Delinquency -Originated
Portfolio (10)
-----------------------
Loans 30-89 days past
due $37,342 $46,205 -19.2
Loans 90+ days past due 7,971 6,706 18.9
Non-accrual loans 58,755 66,004 -11.0
Total past due and non-
accrual loans $104,068 $118,915 -12.5
======== ========
Total past due and non-
accrual loans /total
originated loans 1.28% 1.64%
Memo item:
Delinquency -Acquired
Portfolio (11) (12)
---------------------
Loans 30-89 days past
due $30,205 $22,799 32.5
Loans 90+ days past due 45,823 36,585 25.3
Non-accrual loans 0 0 0.0
Total past due and non-
accrual loans $76,028 $59,384 28.0
======= =======
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2013
----
Fourth Quarter Third Quarter
Interest Average Interest Average
Average Earned Yield Average Earned Yield
Outstanding or Paid or Rate Outstanding or Paid or Rate
Assets
Interest bearing
deposits with
banks $130,027 $84 0.25% $30,224 $13 0.17%
Taxable
investment
securities (13) 2,162,444 11,381 2.06% 2,117,849 10,889 2.01%
Non-taxable
investment
securities (14) 153,349 2,054 5.36% 157,624 2,122 5.39%
Residential
mortgage loans
held for sale 6,128 103 6.73% 12,060 134 4.45%
Loans (14) (15) 9,322,742 105,719 4.51% 8,730,010 98,413 4.48%
Total Interest
Earning Assets
(14) 11,774,690 119,341 4.03% 11,047,767 111,571 4.01%
Cash and due from
banks 199,986 185,419
Allowance for
loan losses (111,654) (110,463)
Premises and
equipment 155,310 147,804
Other assets 1,438,604 1,344,811
Total Assets $13,456,936 $12,615,338
Liabilities
Deposits:
Interest-bearing
demand $4,054,525 1,500 0.15% $3,841,619 1,391 0.14%
Savings 1,413,765 164 0.05% 1,387,869 162 0.05%
Certificates and
other time 2,609,294 5,274 0.80% 2,391,828 5,342 0.89%
Customer
repurchase
agreements 866,955 510 0.23% 748,249 419 0.22%
Other short-term
borrowings 173,405 609 1.37% 318,024 703 0.86%
Long-term debt 138,631 847 2.42% 91,659 719 3.11%
Junior
subordinated
debt 192,533 1,787 3.68% 194,206 1,800 3.68%
Total Interest
Bearing
Liabilities
(14) 9,449,108 10,691 0.45% 8,973,454 10,536 0.47%
Non-interest
bearing demand
deposits 2,168,847 2,033,370
Other liabilities 144,312 132,763
Total Liabilities 11,762,267 11,139,587
Stockholders'
equity 1,694,669 1,475,751
Total Liabilities
and
Stockholders'
Equity $13,456,936 $12,615,338
Net Interest
Earning Assets $2,325,582 $2,074,313
========== ==========
Net Interest
Income (FTE) 108,650 101,035
Tax Equivalent
Adjustment (1,704) (1,781)
------ ------
Net Interest
Income $106,946 $99,254
======== =======
Net Interest
Spread 3.58% 3.55%
==== ====
Net Interest
Margin (14) 3.67% 3.64%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands,
except per share data)
2012
----
Fourth Quarter
Interest Average
Average Earned Yield
Outstanding or Paid or Rate
Assets
Interest bearing
deposits with banks $116,885 $68 0.23%
Taxable investment
securities (13) 2,076,440 10,817 2.03%
Non-taxable investment
securities (14) 179,262 2,455 5.48%
Residential mortgage
loans held for sale 18,945 181 3.83%
Loans (14) (15) 8,028,865 95,855 4.75%
Total Interest Earning
Assets (14) 10,420,397 109,376 4.18%
Cash and due from banks 199,451
Allowance for loan
losses (104,453)
Premises and equipment 144,702
Other assets 1,328,185
Total Assets $11,988,282
Liabilities
Deposits:
Interest-bearing demand $3,578,072 1,834 0.21%
Savings 1,208,616 253 0.08%
Certificates and other
time 2,578,226 7,650 1.18%
Customer repurchase
agreements 867,404 603 0.27%
Other short-term
borrowings 156,197 597 1.50%
Long-term debt 88,956 791 3.54%
Junior subordinated debt 204,012 1,932 3.77%
Total Interest Bearing
Liabilities (14) 8,681,483 13,660 0.63%
Non-interest bearing
demand deposits 1,742,328
Other liabilities 164,042
Total Liabilities 10,587,853
Stockholders' equity 1,400,429
Total Liabilities and
Stockholders' Equity $11,988,282
Net Interest Earning
Assets $1,738,914
==========
Net Interest Income
(FTE) 95,716
Tax Equivalent
Adjustment (1,798)
------
Net Interest Income $93,918
=======
Net Interest Spread 3.56%
====
Net Interest Margin
(14) 3.66%
====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year Ended December 31,
-------------------------------
2013 2012
Interest Average Interest Average
Average Earned Yield Average Earned Yield
Outstanding or Paid or Rate Outstanding or Paid or Rate
Assets
Interest bearing
deposits with
banks $57,605 $129 0.22% $94,719 $210 0.22%
Taxable
investment
securities (13) 2,125,001 43,551 2.00% 2,031,289 47,161 2.27%
Non-taxable
investment
securities (14) 160,601 8,737 5.44% 183,558 10,253 5.59%
Residential
mortgage loans
held for sale 17,772 720 4.05% 16,645 713 4.28%
Loans (14) (15) 8,688,030 394,218 4.54% 7,880,254 380,951 4.83%
Total Interest
Earning Assets
(14) 11,049,009 447,355 4.05% 10,206,465 439,288 4.30%
Cash and due from
banks 183,656 187,095
Allowance for
loan losses (109,050) (103,590)
Premises and
equipment 147,009 146,757
Other assets 1,370,061 1,346,094
Total Assets $12,640,685 $11,782,821
Liabilities
Deposits:
Interest-bearing
demand $3,844,865 5,825 0.15% $3,497,352 7,636 0.22%
Savings 1,358,386 656 0.05% 1,194,071 1,124 0.09%
Certificates and
other time 2,489,129 22,960 0.92% 2,691,597 33,753 1.25%
Customer
repurchase
agreements 794,436 1,850 0.23% 792,131 2,506 0.31%
Other short-term
borrowings 231,326 2,573 1.10% 158,875 2,656 1.64%
Long-term debt 103,772 3,115 3.00% 90,652 3,492 3.85%
Junior
subordinated
debt 199,296 7,365 3.70% 203,471 7,888 3.88%
Total Interest
Bearing
Liabilities
(14) 9,021,210 44,344 0.49% 8,628,149 59,055 0.68%
Non-interest
bearing demand
deposits 1,963,431 1,615,419
Other liabilities 141,573 162,759
Total Liabilities 11,126,214 10,406,327
Stockholders'
equity 1,514,471 1,376,494
Total Liabilities
and
Stockholders'
Equity $12,640,685 $11,782,821
Net Interest
Earning Assets $2,027,799 $1,578,316
========== ==========
Net Interest
Income (FTE) 403,011 380,233
Tax Equivalent
Adjustment (6,969) (7,382)
------ ------
Net Interest
Income $396,042 $372,851
======== ========
Net Interest
Spread 3.56% 3.62%
==== ====
Net Interest
Margin (14) 3.65% 3.73%
==== ====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES
---------------------------
We believe the following non-GAAP financial measures used by F.N.B. Corporation provide information useful to investors in understanding F.N.B. Corporation's
operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation's peers. The non-GAAP financial measures used by
F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative for, F.N.B. Corporation's reported results prepared in accordance with U.S. GAAP. The
following tables summarize the non-GAAP financial measures included in this press release and derived from amounts reported in F.N.B. Corporation's financial
statements.
2013 2012
Fourth Third Fourth
Quarter Quarter Quarter
------- -------
Return on average tangible equity (2):
--------------------------------------
Net income (annualized) $112,828 $125,505 $115,189
Amortization of intangibles, net of tax (annualized) 6,045 5,331 5,645
----- ----- -----
118,873 130,836 120,834
Average total stockholders' equity 1,694,669 1,475,751 1,400,430
Less: Average intangibles (804,098) (748,592) (715,962)
-------- -------- --------
890,571 727,159 684,468
Return on average tangible equity (2) 13.35% 17.99% 17.65%
===== ===== =====
Return on average tangible common equity (2):
---------------------------------------------
Net income available to common stockholders (annualized) $112,828 $125,505 $115,189
Amortization of intangibles, net of tax (annualized) 6,045 5,331 5,645
----- ----- -----
118,873 130,836 120,834
Average total stockholders' equity 1,694,669 1,475,751 1,400,430
Less: Average preferred stockholders' equity (71,126) 0 0
Less: Average intangibles (804,098) (748,592) (715,962)
-------- -------- --------
819,445 727,159 684,468
Return on average tangible common equity (2) 14.51% 17.99% 17.65%
===== ===== =====
Return on average tangible assets (3):
--------------------------------------
Net income (annualized) $112,828 $125,505 $115,189
Amortization of intangibles, net of tax (annualized) 6,045 5,331 5,645
----- ----- -----
118,873 130,836 120,834
Average total assets 13,456,936 12,615,338 11,988,283
Less: Average intangibles (804,098) (748,592) (715,962)
-------- -------- --------
12,652,838 11,866,746 11,272,321
Return on average tangible assets (3) 0.94% 1.10% 1.07%
==== ==== ====
Tangible book value per common share:
-------------------------------------
Total stockholders' equity $1,774,383 $1,481,647 $1,402,069
Less: preferred stockholders' equity (106,882) 0 0
Less: intangibles (811,856) (748,909) (713,405)
-------- -------- --------
855,645 732,738 688,664
Ending shares outstanding 158,967,211 145,263,435 139,929,242
Tangible book value per share $5.38 $5.04 $4.92
===== ===== =====
F.N.B.
CORPORATION
------------
(Unaudited)
(Dollars
in
thousands,
except
per
share
data)
For the Year Ended
December 31,
------------
2013 2012
Return
on
average
tangible
equity
(2):
---------
Net
income
(annualized) $117,804 $110,410
Amortization
of
intangibles,
net of
tax
(annualized) 5,465 5,801
----- -----
123,268 116,210
Average
total
stockholders'
equity 1,514,471 1,376,493
Less:
Average
intangibles (752,894) (717,031)
-------- --------
761,578 659,462
Return
on
average
tangible
equity
(2) 16.19% 17.62%
===== =====
Return
on
average
tangible
common
equity
(2):
---------
Net
income
available
to
common
stockholders
(annualized) $117,804 $110,410
Amortization
of
intangibles,
net of
tax
(annualized) 5,465 5,801
----- -----
123,268 116,210
Average
total
stockholders'
equity 1,514,471 1,376,493
Less:
Average
preferred
stockholders'
equity (17,928) 0
Less:
Average
intangibles (752,894) (717,031)
-------- --------
743,649 659,462
Return
on
average
tangible
common
equity
(2) 16.58% 17.62%
===== =====
Return
on
average
tangible
assets
(3):
---------
Net
income
(annualized) $117,804 $110,410
Amortization
of
intangibles,
net of
tax
(annualized) 5,465 5,801
----- -----
123,268 116,210
Average
total
assets 12,640,685 11,782,821
Less:
Average
intangibles (752,894) (717,031)
-------- --------
11,887,792 11,065,789
Return
on
average
tangible
assets
(3) 1.04% 1.05%
==== ====
Tangible
book
value
per
common
share:
--------
Total
stockholders'
equity $1,774,383 $1,402,069
Less:
preferred
stockholders'
equity (106,882) 0
Less:
intangibles (811,856) (713,405)
-------- --------
855,645 688,664
Ending
shares
outstanding 158,967,211 139,929,242
Tangible
book
value
per
share $5.38 $4.92
===== =====
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in
thousands)
2013 2012
Fourth Third Fourth
Quarter Quarter Quarter
------- -------
Tangible equity /
tangible assets
(period end):
-----------------
Total
stockholders'
equity $1,774,383 $1,481,647 $1,402,069
Less: intangibles (811,856) (748,909) (713,405)
-------- -------- --------
962,527 732,738 688,664
Total assets 13,563,405 12,790,279 12,023,976
Less: intangibles (811,856) (748,909) (713,405)
-------- -------- --------
12,751,549 12,041,370 11,310,571
Tangible equity /
tangible assets
(period end) 7.55% 6.09% 6.09%
==== ==== ====
Tangible common
equity /tangible
assets (period
end):
-----------------
Total
stockholders'
equity $1,774,383 $1,481,647 $1,402,069
Less: preferred
stockholders'
equity (106,882) 0 0
Less: intangibles (811,856) (748,909) (713,405)
-------- -------- --------
855,645 732,738 688,664
Total assets 13,563,405 12,790,279 12,023,976
Less: intangibles (811,856) (748,909) (713,405)
-------- -------- --------
12,751,549 12,041,370 11,310,571
Tangible equity /
tangible assets
(period end) 6.71% 6.09% 6.09%
==== ==== ====
Tangible common
equity, excluding
AOCI /tangible
------------------
assets (period
end) (7):
--------------
Total
stockholders'
equity $1,774,383 $1,481,647 $1,402,069
Less: preferred
stockholders'
equity (106,882) 0 0
Less: intangibles (811,856) (748,909) (713,405)
Less: AOCI 56,924 66,171 46,224
------ ------ ------
912,569 798,909 734,888
Total assets 13,563,405 12,790,279 12,023,976
Less: intangibles (811,856) (748,909) (713,405)
-------- -------- --------
12,751,549 12,041,370 11,310,571
Tangible equity,
excluding AOCI /
tangible
assets (period
end) (7) 7.16% 6.63% 6.50%
==== ==== ====
(1) Net interest income is also presented on a fully taxable equivalent (FTE) basis, as the Corporation believes this non-GAAP
measure is the preferred
industry measurement for this item.
(2) Return on average tangible equity is calculated by dividing net income excluding amortization of intangibles by average equity
less average intangibles.
(3) Return on average tangible assets is calculated by dividing net income excluding amortization of intangibles by average assets
less average intangibles.
(4) See non-GAAP financial measures for additional information relating to the calculation of this item.
(5) The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles, other real estate owned
expense, FHLB prepayment
penalties, litigation settlement accrual, branch consolidation costs, loss on extinguishment of debt and merger costs by the sum
of net interest income on
a fully taxable equivalent basis plus non-interest income less gain on sale of an acquired building, gain on extinguishment of
debt, securities gains and net
impairment losses on securities plus losses on asset disposals related to the branch consolidation project.
(6) Customer repos are included in short-term borrowings on the balance sheet.
(7) Accumulated other comprehensive income (AOCI) is comprised of unrealized losses on securities, non-credit impairment losses on
other-than-temporarily
impaired securities, unrealized losses on derivative instruments and unrecognized pension and postretirement obligations.
(8) Does not include loans acquired at fair value ("acquired portfolio").
(9) Includes all other real estate owned, including those balances acquired through business combinations that have been in acquired
loans prior to foreclosure.
(10) "Originated Portfolio" or "Originated Loans" equals loans and leases not included by definition in the Acquired Portfolio.
(11) "Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805 which was
effective January 1, 2009.
The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair
value and these loans are considered
accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value
of these loans and their
expected cash flows. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such
loans, when incurred, are first
applied against the non-accretable difference established in purchase accounting and then to any allowance for loan losses
recognized subsequent to acquisition.
(12) Represents contractual balances.
(13) The average balances and yields earned on taxable investment securities are based on historical cost.
(14) The interest income amounts are reflected on a FTE basis, which adjusts for the tax benefit of income on certain tax-exempt
loans and investments using the
federal statutory tax rate of 35% for each period presented. The yields on earning assets and the net interest margin are
presented on an FTE and annualized
basis. The rates paid on interest-bearing liabilities are also presented on an annualized basis.
(15) Average balances for loans include non-accrual loans. Loans consist of average total loans less average unearned income. The
amount of loan fees
included in interest income is immaterial.
SOURCE F.N.B. Corporation
