FNB Corp. Reports 2Q Net Income of $39.29 Million

PITTSBURGH – F.N.B. Corp., holding company of First National Bank of Pennsylvania, Thursday reported net income available to shareholders of $39.29 million, or 19 cents per common share, which includes three cents per share in merger-related costs. Total net income was $41.30 million.

This compares to first-quarter net income available to shareholders of $24.12 million, or 12 cents per common share, and second-quarter 2015 net income available to shareholders of $38.12 million, or 22 cents per share. Preferred dividends were $2.01 million in each period.

Among the highlights F.N.B. cited in its earnings release (includes acquisition of Fifth Third Bank branches in Pittsburgh and Metro Bancorp Inc.):

  • Organic growth in total average loans was $150 million, or 4.3% annualized, with average commercial loans growth of $6 million, or 0.3% annualized, and average consumer loan growth of $133 million, or 9.7% annualized.
  • On an organic basis, average total deposits and customer repurchase agreements grew $149 million, or 3.8% annualized, mostly because of growth in average transaction deposits and customer repurchase agreements. Total deposits at June 30 were $15.529 billion.
  • The efficiency ratio (how much expense was incurred to achieve a dollar in revenues) fell to 55.4% from 56.4% the first quarter and 56.0% the year-ago quarter.

In a brief prepared statement, the president and CEO of F.N.B., Vincent J. Delie Jr., said, “F.N.B. delivered another strong performance, achieving record revenue and operating net income as well as an improved efficiency ratio. Additionally, second-quarter revenue growth was led by a 29% increase in noninterest income compared to the year-ago quarter, attributable to our acquisition strategy and the strategic investments in our high-value fee-based businesses.”

Key performance ratios for the quarters ended June 30, March 31, and June 30, 2015:

  • Return on average tangible equity, 12.25%, 8.32%, 14.00%.
  • Return on average tangible common equity. 12.63%, 8.39%, 14.63%.
  • Return on average tangible assets, 0.90%, 0.63%, 1.08%.
  • Net interest margin, 3.41%, 3.40%, 3.43%.

Net interest income after deducting a provision for credit losses was $140.52 million compared to $131.05 million the preceding quarter and $116.71 million the year-ago quarter.

Noninterest income (such as from trust administration, insurance commissions and fees, mortgage banking servings rights and net securities gains) was $51.41 million, up from $46.04 million the first quarter and $39.75 million the second quarter of 2015.

Second-quarter noninterest expense (includes salaries and benefits, rents, acquisition and severance-related, data processing, marketing, Federal Deposit Insurance Corp. premiums) was $129.63 million, less than the $136.65 million reported for the first quarter but up from the $96.509 million the year-ago quarter. Second-quarter acquisition expense was $10.55 million compared to $29.94 million recognized the first quarter.

Credit quality remains strong. Repossessed real estate fell more than $2 million to $48.34 million from $50.53 million the preceding quarter.

Total nonperforming assets of $138.36 million, more than covered by the $154.37 million provision for credit loses, made up 0.63% of total assets of $21.215 billion.

Total past due and nonaccrual loans were $119.89 million at June 30, or 1.02% of total past due and nonaccrual/total originated loans.

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