FNB Corp. Reports Income of $24.12 Million

PITTSBURGH – F.N.B. Corp., parent of First National Bank of Pennsylvania, Friday reported first-quarter net income available to common shareholders of $24.12 million, or 12 cents a share.

Total net income was $26.13 million.

Income available to common shareholders compares to $37.11 million for the quarter ended Dec. 31, or 21 cents a share, and $38.33 million, of 22 cents a share for the year-ago quarter.

A major reason for the lower earnings was recognition of the expense incurred in acquiring Metro Bancorp, Harrisburg, Feb. 13, the largest acquisition in the history of F.N.B. Corp., the president and CEO, Vincent J. Delie Jr., noted.

Markets greeted the news with shares of F.N.B. trading at $13.51 at 1:30 p.m., after opening at $13.15.

F.N.B. reported merger, acquisition and severance-related expense of $24.94 million compared to $1.35 million the preceding quarter and none the year-ago quarter.

In a prepared statement, Delie said, “We are pleased with the quarter’s results, including the successful integration of Metro Bancorp, [which] positions F.N.B. with another top market share in central Pennsylvania. We achieved record revenue of $186 million and record-setting operating net income of $40.8 million.”

Key performance ratios for the quarters ended March 31 and Dec. 31 and March 31, 2015:

• Return on average equity, 4.51%, 7.39%, 8.02%.
• Return on average assets, 0.63%, 1.00%, 1.12%.
• Net interest margin, 3.40%, 3.38%, 3.48%.
• Efficiency ratio, 56.38%, 56.32%, 56.60%.

With the closing of the Metro acquisition, total assets rose to $18.917 billion, up from $17.076 billion at Dec. 31 and $16.147 billion a year ago.

Total deposits increased to $15.391 billion from $12.624 billion Dec. 31 and $11.806 billion at March 31, 2015.

Total loans and leases were $14.166 billion, up 16.2% from $12.190 billion at year-end and up 24.2% from $11.404 billion a year ago.

“Organic growth in total average loans was $246 million, or 8.2% annualized,” F.N.B. noted, “with average commercial loan growth of $190 million, or 11.3% annualized, and average consumer loan growth of %58 million, or 4.5% annualized.”

Noninterest expense (includes salaries and benefits, rents, marketing, merger and acquisition, Federal Deposit Insurance Corp. premiums) rose to $136.65 million from the $101.25 million reported Dec. 31 and $94.66 million March 31, 2015. Salaries and employee benefits were $56.43 million, $50.51 million and $49.27 million respectively.

“Credit quality results reflect slightly increased nonperforming levels and are generally consistent with total delinquency levels,” F.N.B. said. Some $13 million resulted from acquiring Metro other real-estate loans, or repossessed real estate.

Total nonperforming assets, which includes loans 90 and more days past due, were $135.02 million, up from $110,84 million at Dec. 31 and $107.85 million a year ago. The ratio of nonperforming assets to total assets was 0.66% compared to 0.63% three months earlier and 0.66% a year earlier.

Total past-due and non-accrual loams was $104.83 million, up slightly from $102.48 million the previous quarter and $85.61 million at March 31, 2015.

The allowance to cover credit losses is 170.43% of projected losses. That figure stood at 190.64% a year-end and 180.83% a year ago.

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