FNB Corp. Reports $37.1M Fourth-Quarter Net Income

PITTSBURGH – F.N.B. Corp., holding company of First National Bank of Pennsylvania, Thursday reported fourth-quarter net income available to common shareholders of $37.1 million, or 21 cents per diluted common share, and full-year 2014 net income of $151.6 million, or 86 cents per share.

This compares to fourth-quarter 2014 net income available to common shareholders of $37.3 million, or 21 cents a share, and third-quarter 2014 income of $38.0 million, or 22 cents a share.

Full-year 2014 net income available to common shareholders was $135.7 million, or 80 cents a share.

The president and CEO of F.N.B., Vincent J. Delie Jr., said he is pleased with the results for the quarter and declared 2015 “another tremendous year.”

Among the highlights the company cited for the quarter:

• Organic growth in total average loans was $250 million, or 8.4% annualized, with average commercial loan growth of $174 million, or 10.5% annualized, and average consumer loan growth of $79 million, or 6.1% annualized.
• On an organic basis, average total deposits and customer repurchase agreements grew $284 million, or 8.8% annualized, while average transaction deposits and customer repurchase agreements grew $360 million, or 14% annualized.

Key performance ratios for the full years 2015 and 2014:

• Return on average equity, 7.70%, 7.50%.
• Return on average assets, 0.96%, 0.96%.
• Net interest margin, 3.42%, 3.59%.
• Efficiency ratio, 56.12%, 57.21%.

Key performance ratios for the quarters ended Dec. 31 and Sept. 30, 2015, and Dec. 31, 2014:

• Return on average equity, 7.39%, 7.63%, 7.71%.
• Return on average assets, 0.91%, 0.95%, 0.98%.
• Net interest margin, 3.38%, 3.39%, 3.54%.
• Efficiency ratio, 56.32%, 55.59%, 56.05%.

Net interest income after the provision for loan losses was $465.42 million for 2015 compared to $434.55 million the year before while noninterest income was $162.41 million compared to $158.27 million in 2014.

Total noninterest expense (such as salaries, rents, technology, marketing, Federal Deposit Insurance Corp. premiums and merger-and-acquisitions) was $390.55 million compared to $379.25 million in 2014.

Salaries and employee benefits rose nearly $10 million during 2015, $201.97 million versus $192.48 million the year before. FDIC premiums fell to $12.89 million from $13.26 million. Merger and acquisition expense (includes severance pay) was $3.03 million in 2015 compared to $12.15 million the year before.

F.N.B. said its credit quality improved in 2015 as reflected by the ratio of nonperforming loans and repossessed real estate to total loans and repossessed real estate falling 0.06% to 0.91%.

F.N.B. charged off $24.4 million during the quarter, or 0.21% annualized, of total average loans compared to $23.5 million the year-ago quarter, or 0.23% annualized. The company set aside $40.4 million to cover loan losses compared to $38.6 million the last quarter of 2014.

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