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FNB Corp. Reports 4th-Quarter, 2012 Income
HERMITAGE, Pa. – F.N.B. Corp., holding company of First National Bank of Pennsylvania, Wednesday reported fourth-quarter net income of $28.96 million, or 21 cents per diluted share, and full-year 2012 net income of $110.41 million, or 79 cents a share.
Adjusted income for the quarter was 23 cents per share, F.N.B. said, because of litigation settlement costs of $2 million (after-tax) and branch consolidation expense of $1.2 million (after-tax), which reduced earnings 2 cents a share.
The $28.96 million compares to third-quarter net income $30.74 million, or 22 cents per share, and fourth-quarter 2011 net income of $23.74 million, or 19 cents per share. Third-quarter net income included a $900,000 gain on the sale of a building, or a penny a share.
Net income for 2011 was $87.05 million, or 70 cents per share.
Full-year 2012 net income included merger and severance costs, $5.2 million after tax, and litigation settlement expense of $2 million, after tax, and branch consolidation expense of $1.2 million after tax and the referenced gain on the sale of a building, all of which reduced net income by a nickel a share. Excluding these expenses and F.N.B. enjoyed $117.8 million in net income, or 84 cents a share.
In a prepared statement, the president and CEO of F.N.B. Corp. and First National Bank, Vincent J. Delie, said, “The fourth quarter was a great finish to a very successful year. The highlight of our solid operating performance is the consistent growth of our loan portfolios. Through the efforts of our experienced team of bankers, we have accomplished 14 consecutive quarters of organic total loan growth. Both the commercial and consumer portfolios achieved record fourth-quarter loan production levels. We remained focus on gaining market share and attracting customers while maintaining our high-quality underwriting standards as demonstrated by our solid asset-quality results.”
Other fourth-quarter highlights F.N.B. cited:
- Net interest margin, 3.66%.
- Average total loans grew $119.6 million, or 6.0% annualized.
- Average core commercial loans (excluding the Florida portfolio) grew $88.7 million, or 8.4% annualized, making it the 15th consecutive linked quarter of organic growth for this portfolio.
- An efficiency ratio of 55.5%.
- Net charge-offs were $7.6 million, or 0.45% of average originated loans.
- Nonperforming and real estate F.N.B. has repossessed as a percentage of total loans originated improved 0.9% to 1.6%.
Performance ratios for the fourth and third quarters of 2012 and fourth quarter of 2011:
- Return on average equity, 8.23%, 8.83%, 7.72%.
- Return on average assets, 0.96%, 1.03%, 0.95%.
- Net interest margin, 3.66%, 3.70%, 3.79%.
- Cost of funds, 0.63%, 0.66%, 0.92%.
- Efficiency ratio, 55.45%, 57.40%, 59.27%.
Performance ratios for full year 2012 and 2011:
- Return on average equity, 8.02%, 7.36%.
- Return on average assets, 0.94%, 0.88%.
- Net interest margin, 3.73%, 3.79%.
- Cost of funds, 0.68%, 1.02%.
- Efficiency ratio, 57.73%, 59.71%.
Noninterest income for the fourth quarter (such as fees and account service charges) was $32.13 million, F.N.B. said, 7.7% less than $34.81 million in the third quarter.
Noninterest expense (such as salaries and benefits, rents, consulting services, maintaining repossessed real estate, Federal Deposit Insurance Corp. premiums) was $76.59 million, $500,000 less than the third quarter, or 0.6%.
“Credit quality results for the fourth quarter reflect continued solid performance,” F.N.B. reported. “The provision for loan losses equaled $9.3 million compared to $8.4 million the prior quarter [and] the ratio of the allowance fort loan losses to total originated loans was 1.39% compared to 1.43% at Sept. 30.”
Total assets stood at $12.024 billion at Dec. 31 compared to $9.786 billion a year earlier.
Through its subsidiaries in Pennsylvania, Ohio, West Virginia, Kentucky, Tennessee and Florida, F.N.B. engages in commercial and retail banking and provides leasing, wealth management, trust and investment, merchant banking, insurance and consumer financial services.
Published by The Business Journal, Youngstown, Ohio.
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