FNB Reports Third-Quarter Net Income of $50.16M

PITTSBURGH – F.N.B. Corp., parent of First National Bank of Pennsylvania, Wednesday reported net income of $50.16 million available to common shareholders, or 24 cents per common share.

This compares to second quarter net income of $39.29 million, or 19 cents a share and third-quarter 2015 net income of $38.04 million, or 22 cents a share.

In a prepared statement, the president and CEO, Vincent J. Delie, said, “F.N.B. delivered another strong performance with operating net income per diluted share increasing 9% compared to the prior quarter and record operating net income. The third quarter’s performance was also highlighted by record levels of revenue and an improved efficiency ratio. Our results reflect the full realization of cost savings from the Metro and Fifth Third branch acquisitions.”

The F.N.B. Board of Directors declared a cash dividend of 12 cents a share on common stock payable Dec. 15 to shareholders of record Dec. 1.

They also declared a quarterly cash dividend of $18.13 per preferred share on the corporation’s noncumulative perpetual preferred stock Series E payable Nov. 16 to shareholders of record Oct. 31.

In its earnings release, F.N.B. noted, “Organic growth in total average loans was $274 million, or 7.6% annualized, with average commercial loan growth of $80 million, of 3.7% annualized, and average consumer loan growth of $191 million, or 13.1% annualized (includes residential mortgage, direct and indirect installment and home-equity related products).”

F.N.B. also reported, “On an organic basis, average total deposits declined $57 million, or 1.4% annualized, with organic growth in average noninterest bearing deposits of $69 million, or 6.9% annualized, offset by an expected decline in time deposits.”

Performance ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2015:

• Return on average equity, 8.10%, 6.56%, 7.63%.
• Return on average assets, 0.97%, 0.80%, 0.95%.
• Net interest margin, 3.36%, 3.41%, 3.39%.
• Efficiency ratio, 54.38%, 55.45%, 55.59%.

Net interest income after the provision for credit losses was $142.87 million, up from $137.73 million the second quarter and $114.42 million the year-ago quarter.

Noninterest income (such as service charges, trust income, insurance commissions and fees) was $53.24 million, an increase from $51.41 million reported for the previous quarter and $41.36 million the quarter ended Sept. 30, 2015.

Noninterest expense (salaries and employee benefits, rents, marketing, data processing, merger-related expense and Federal Deposit Insurance Corp. premiums) was $121.05 million, less than $129.63 million in the second quarter. The year-ago quarter expense was $98.15 million.

F.N.B. recognized $299,000 in merger and severance expense in the third quarter compared to $10.55 million in the second and $1.31 million the year-ago quarter.

Nonperforming loans of $95.47 million constituted only 0.65% of total loans. Nonperforming assets of $135.99 million constituted only 0.63% of total assets. The total allowance for credit losses at Sept. 30 was $156.89 million.

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