F.N.B. Corp. Reports Net Income of $32.2 Million
HERMITAGE, Pa. -- F.N.B. Corp., holding company of First National Bank of Pennsylvania, Wednesday reported first-quarter net income available to common shareholders of $32.20 million, or 20 cents per diluted and basic share.
This compares to $28.44 million the preceding quarter, or 18 cents a share, and $28.54 million the first quarter a year ago, or 20 cents a share.
Net income for the three periods was $34.52 million, $28.44 million and $28.54 million respectively.
F.N.B. cited these highlights in its earnings release comparing the first-quarter results to the fourth quarter of 2013:
- Loan-growth momentum continued, with average organic loan growth on a linked quarter basis of $144 million, or 6.2% annualized, led by average organic commercial loan growth of $125 million, or 9.8% annualized. Total loans were just short of $10 billion with a March 31 figure of $9.943 billion, up from $9.506 billion at Dec. 31 and $8.209 billion the first quarter a year ago.
- The net interest margin was 3.62% compared to 3.67%, with four of the five-basis-point difference attributed to higher-than-normal accretable yield benefit in the fourth quarter.
“Credit quality metrics reflect continued solid performance,” F.N.B. said. “For the originated portfolio, nonperforming loans and OREO [repossessed real estate] to total loans and OREO was 1.46% compared to 1.44% and net charge-offs were 0.28% annualized of total originated loans compared to 0.30% annualized in the prior quarter.”
In a prepared statement, the president and CEO, Vincent J. Delie Jr., said, “Our ability to deliver consistent operating performance and high-quality earnings highlights the strength of F.N.B.’s growing franchise. During the first quarter, we continued to grow revenue, loans and deposits, maintain a stable core net interest margin, post consistent asset quality results and control expenses. Additionally, we absorbed the earnings impact from the capital actions taken in the fourth quarter of 2013 that strengthened our capital structure under Basel III provisions.
“At the end of the quarter,” he continued, “F.N.B.’s tangible common equity to tangible assets ratio is the strongest level in the past 10 years and our expansion strategy positions us favorably for the future. In February we completed the integration of BCSB Bancorp Inc. in Baltimore, a market where we have attained a Top-10 deposit market share position in less than one year. On April 8, we announced the pending acquisition of OBA Financial Inc., a transaction that will further strengthen our Maryland presence and enhance capital level and future earnings.”
Key performance ratios for the quarters ended March 31 and Dec. 31 and March 31, 2013:
- Return on average equity, 7.65%, 6.66%, 8.20%.
- Return on average assets, 1.00%, 0.84%, 0.96%.
- Net interest margin, 3.62%, 3.67%, 3.66%.
- Efficiency ratio, 58.99%, 57.77%, 59.74%.
Deposits grew to $10.939 billion from $10.198 billion three months earlier and $9.211billion a year earlier.
Net interest income after deducting the provision for loan losses was $102.54 million compared to $100.28 million at Dec. 31 and $87.30 million at March 31, 2013.
Noninterest income -- includes service charges, commissions and fees and trust income -- was $42.07 million for the quarter compared to $32.66 million the preceding quarter and $33.61 million the first quarter a year ago.
Noninterest expense -- includes salaries and benefits, rents, data processing, advertising and Federal Deposit Insurance Corp. premiums -- was $94.17 million compared to $92.07 million the previous quarter and $78.80 million the first quarter of 2913.
F.N.B. increased its total allowance for loan losses to $112.22 million, of 1.13% of its total loans, up from $110.78 million, or 1.17% of its total loans at Dec. 31, and $107.70 million at March 31, 2013, when that figure was 1.31% of total loans.
In the first quarter, the net loan charge-offs (annualized) were 0.23% of total average loans, a decrease from the 0.32% reported for Dec. 31 but higher than the 0.21% reported for March 31, 2013.
Because of both organic growth and acquisitions, F.N.B. saw its assets reach $14.477 billion at March 31,up from $13.56 billion at Dec. 31 and $12 billion at the end of the first quarter a year ago.
Through its subsidiaries in Pennsylvania, Ohio, West Virginia, Kentucky, Maryland and Florida, F.N.B. engages in commercial, retail, mortgage and investment banking and provides trust, wealth management, insurance, leasing and consumer financial services.
SOURCE: F.N.B. Corporation.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.