F.N.B. Reports Record Net Income of $40.3M

PITTSBURGH – F.N.B. Corp., holding company of First National Bank of Pennsylvania, Thursday reported record first-quarter net income of $40.34 million, $38.33 million of which is available to common shareholders, or 22 cents per common share.

This compares to $39.39 million net income, $37.29 million of which was available to common shareholders, or 21 cents per common share the quarter ended Dec. 31, and $34.52 million the first quarter a year ago, $32.20 million of which was available to common shareholders, or 20 cents per common share.

Highlights the company cited in its earnings report:

• Organic growth in total average loans and leases of $194 million, or 7.1% annualized, with average commercial loans and lease growth of $81 million, or 5.2% annualized, and average consumer-loan growth of $119 million, or 10.1% annualized.
• Organically, average total deposits and customer repurchase agreements declined slightly by $30 million, or 1.0% annualized, the result of seasonally lower customer repurchase agreement balances. Period-end total deposits and customer repurchase agreements grew organically by $298 million, or 9.9% annualized.
• The net interest margin dropped to 3.48% from 3.54%, reflecting “the lower interest-rate environment.
• The efficiency ratio rose to 56.6% from 56.1% recorded in the fourth quarter but was below the 59.0% the first quarter a year ago.
• “Credit quality results reflect further improvement in nonperforming loans (those 90 days past due) and delinquency levels (loans up to 89 days past due).

Said the president and CEO, Vincent J. Delie Jr., in a prepared statement, “The high-quality results, which include a 16% increase in operating earnings per share, demonstrate the successful execution of our organic [internal] and acquisition growth strategy. During the first quarter, we continued to grow revenue, loans, deposits and fee-based income with solid asset-quality results. Our strengthened capital levels and balance sheet position enable the organization to support our long-term organic-growth objectives.”

Key performance ratios for the quarters ended March 31 and Dec. 31 and March 31, 2014:

• Return on average equity, 8.02%, 7.71%, 7.65%.
• Return on average assets, 1.01%, 0.98%, 1.00%.
• Net interest margin, 3.48%, 3.54%, 3.62%.
• Efficiency ratio, 56.60%, 56.05%, 58.99%.

Total loans and leases grew to $11.404 billion at March 31 from $11.247 billion at yearend and $9.943 billion at March 31, 2014.

Total deposits and repurchase agreements were $12.563 billion at March 31, $12.265 at year-end, and $11.726 billion at March 31, 23014.

Total assets grew to $16.279 billion by March 31 from $16.127 billion at Dec. 31. They stood at $14.477 a year ago.

Interest income was $133.37 million for the quarter compared to $135.10 million the preceding quarter and $117.88 million the year-ago quarter. Net interest income was $123.70 million, $125.36 million and $109.54 million respectively.

Noninterest income (fees and commissions) was $38.18 million the quarter ended March 31, 2% less than the $39.46 million for he quarter ended Dec. 31, and less than $42.07 million for the quarter ended March 31, 2014. “Excluding a nonrecurring $2.7 million gain in the fourth quarter,” F.N.B. said, “noninterest income increased $1.4 million, or 3.9%.”

Total noninterest expense (wages and benefits, rents and equipment, data processing, legal, marketing, Federal Deposit Insurance Corp. premiums) fell slightly to $94.66 million from $96.66 million at Dec. 31 but was just above the $94.17 million recorded for March 31, 2014. There was no merger or several-related expense unlike the other two quarters, $1.56 million the fourth and $7.29 million a year ago.

Salaries and benefits rose slightly to $49.27 million from $48.01 million the preceding quarter. First quarter 2014 salaries and benefits were $47.02 million.

As Delie noted, credit quality continued to improve. Total nonperforming assets (loans and repossessed real estate) fell to $107.84 million at March 31, down from $110.02 million at Dec. 31 and $122.64 million at March 31, 2014.

The ratio of nonperforming assets to total assets dropped as well, 0.66% at March 31, 0.68% at Dec. 31, and 0.85% at March 31, 2014.

F.N.B. increased it allowance for bad loans to $128.50 million. It stood at $125.93 million Dec. 31 and $112.22 million a year ago.

Net charge-offs were $5.6 million, or 0.2% of average loans, F.N.B. said, annualized of total average loans and leases compared to $4.7 million, or 0.17% annualized the previous quarter.

Pictured: F.N.B. headquarters on Pittsburgh’s North Shore.

SOURCE: F.N.B. Corp.

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