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F.N.B. Reports 1st-Quarter Net Income of $21.58M
HERMITAGE, Pa. – F.N.B. Corp., parent of First National Bank of Pennsylvania, Monday reported net income of $21.56 million for the quarter ended March 31, or 15 cents per diluted share.
This compares to net income of $23.74 million, or 18 cents per share, for the quarter ended Dec. 31 and $17.18 million, or 14 cents per share, for the quarter ended March 31, 2011.
First-quarter net income included merger and severance costs of $4.8 million, after taxes, which decreased F.N.B. net income by 4 cents per diluted share. In this figure was $2.7 million, after taxes, related to the acquisition of Parkvale Financial Corp., Pittsburgh, parent of Parkvale Savings Bank, which decreased net income by two cents per diluted share.
Completion of the acquisition raised total assets of F.N.B. to $11.726 billion at March 31 from $9.786 billion at Dec. 31.
In a prepared statement, the president and CEO of F.N.B., Vincent J. Delie Jr., said, “Results reflect the continuation of several positive key trends for our company and our successful completion of the Parkvale acquisition. Organic loan growth was achieved for the 11th consecutive quarter, driven by market share gains in the Pennsylvania commercial portfolio. Growth in relationship deposits and customer repurchase agreements also remained strong. Additionally, credit quality results continue to reflect consistent, solid performance.”
Other first-quarter highlights F.N.B. pointed to:
- Net interest margin of 3.74%.
- Organic loan growth of 5.3% annualized for the Pennsylvania commercial portfolio, resulting in the 12th consecutive linked-quarter for this portfolio.
- The total Pennsylvania loan portfolio of $7.509 billion represents 96% of the total loan portfolio. The Florida bank loans are $135.54 million, down from $154.08 million at Dec. 31 and $185.15 million at March 31, 2011. The consumer finance subsidiary, Regency Finance Co., had $157.89 million in loans, a figure that has held steady over the last year.
- Growth of organic transaction deposits and customer repurchase agreements was 8.9% annualized.
- The efficiency ratio was 60.91% compared to 59.27% the preceding quarter and 62.31% the same quarter in 2011.
- Net charge-offs were $5.14 million compared to $16.44 million the preceding quarter and $6.74 million the first quarter of 2011. Of the fourth-quarter figure, F.N.B. charged off $9.81 million related to its bank in Florida but nothing in the first quarter.
- The allowance for loan losses, $102.09 million, was 1.55% of total loans originated.
Performance ratios for the quarters ended March 31, Dec. 31 and March 31, 2011:
- Return on average equity, 6.42%, 7.72%, 6.17%.
- Return on average tangible equity, 14.65%, 15.94%, 13.93%.
- Return on average assets, 0.75%, 0.95%, 0.72%.
- Return on average tangible assets, 0.86%, 1.06%, 0.82%.
- Net interest margin, 3.74%, 3.79%, 3.81%.
- Cost of funds, 0.77%, 0.92%, 1.12%.
Capital ratios for the same periods:
- Equity/assets, 11.55%, 12.37%, 11.57%.
- Leverage, 8.14%, 9.15%, 8.36%.
The total risk-based capital ratio was 12.2% compared to 13.4% at Dec. 31; the Tier-1 risk-based capital ratio was 10.7% compared to 11.8% at Dec. 31, all figures exceeding the regulatory agencies’ “well-capitalized” thresholds.
Net interest income on a fully taxable equivalent (FTE) basis was $92.82 million, an increase of 13.1% from $82.05 million at Dec. 31 and $79,25 million at March 31, 2011. The provision for loan losses for the same periods was $6.57 million, $8.29 million and $8.23 million
Total noninterest income (such as service charges, fees, commissions and trust income), was $31.75 million, $32.60 million and $28.43 million for the same periods.
Noninterest expense (salaries, benefits, rents, Federal Deposit Insurance Corp. premiums, maintenance of repossessed real estate) for the first quarter was $86.76 million compared to $71.59 million the preceding quarter and $74.56 million the same quarter in 2011.
Nonperforming assets (which include nonperforming loans – those 90 days and longer past due) stood at $150.27 million at March 31 compared to $149.92 million Dec. 31 and $173.96 million March 31, 2011.
Through its subsidiaries in Pennsylvania, Ohio, West Virginia, Tennessee, Kentucky and Florida, F.N.B. engages in commercial, consumer and merchant banking and provides leasing, investment banking, wealth management, trust and consumer finance services.
SOURCE: F.N.B. Corporation.
Published by The Business Journal, Youngstown, Ohio.