FNB Reports Record Revenues, Net Income

PITTSBURGH – F.N.B. Corp., parent of First National Bank of Pennsylvania, reported second-quarter net income available to common shareholders of $38.12 million, or 22 cents per common share. Total net income was $40.13 million.

This compares to net income available to holders of common shares of $38.33 million the first quarter, or 22 cents a share, and $32.82 million, or 20 cents a common share the year-ago quarter.

Among the highlights FNB cited in its earnings release:

  • Total revenues were $165.32 million, up 2.1% from the $162.89 reported for the first quarter and $155.07 million reported for the year-ago quarter.
  • Organic growth in total average deposits and customer repurchase agreements was $217 million, or 7.0)% annualized, with average noninterest demand deposit growth of $140 million, or 21.2% annualized.

In a prepared statement, the president and CEO, Vincent J. Delie Jr. said, “The quarter’s high-quality results include another double-digit increase in operating earnings per share. … The second quarter reflects our ability to generate positive operating leverage, continued strong organic growth in loans and deposits and positive asset quality results.”

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2014:

  • Return on average equity, 7.79%, 8.02%, 7.35%.
  • Return on average assets, 0.98%, 1.10%, 0.95%.
  • Net interest margin, 3.43%, 3.48%, 3.60%.
  • Efficiency ratio, 55.99%, 56.60%, 57.27%.

Net interest income after a provision for credit losses was $116.71 million, up from $115.57 million the preceding quarter and $105.49 million the year ago quarter.

Noninterest income (includes service charges, trust fees, insurance commissions and fees, from mortgage banking operations) was $39.75 million compared to $38,18 million the first quarter and $39.19 the second quarter of 2014.

Noninterest expense (includes wages and benefits, rents and equipment, marketing and Federal Deposit Insurance Corp. premiums) was $96.50 million, up from the $94.66 million the quarter before and the $92.59 million the quarter a year ago.

“Credit-quality results reflect overall improvement from the prior-year period,” F.N.B. said. “The ratio of nonperforming loans [those 90 days past due] and OREO [repossessed real estate] to total loans and leases and OREO improved 23 basis points [0.23%] to 0.93% and for the originated [loans] portfolio, the ratio of nonperforming loans and OREO improved 31 basis points to 1.05%.

“Net charge-offs totaled $11.8 million, or 0.21% annualized of total loans and leases, compared to $11.4 million, or 0.23% annualized” the first quarter.

Net loans and leases were $11.496 billion at June 30, $11.276 billion at March 31.

Total assets increased to $16.599 billion during the quarter from $16.279 billion at March 31. They stood at just above $15 billion a year ago.

Total deposits were $12.358 billion at the end of the quarter, up from $11.806 billion March 31 and slightly more than $11 billion a year ago.

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

SOURCE: F.N.B. Corporation.

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