F.N.B. Reports 2nd-Quarter Net Income of $29.19M
HERMITAGE, Pa. -- F.N.B. Corp., holding company of First National Bank of Pennsylvania, Tuesday reported second-quarter net income of $$29.19 million, or 20 cents a share.
This compares to first-quarter net income of $28.54 million, or 20 cents a share, and second-quarter 2012 net income of $29.13 million, or 21 cents a share.
Said the president and CEO, Vincent J. Delie in a prepared statement, “Second-quarter results reflect consistent and strong performance across the company. We continue to grow commercial and consumer loans and achieved record-high levels of loan production volume during the quarter. Our ability to attract new clients to F.N.B. contributed to solid growth in low-cost transaction deposits. Additionally, the core net interest margin remained stable and asset quality results reflect our focus on maintaining high-quality credit standards.
“We also further strengthened F.N.B.’s franchise with the recently announced BCSB Bancorp Inc. This expansion of our presence in the Maryland market continues to provide F.N.B. with significant organic growth opportunities and we are pleased with the talented team of bankers we have in place to execute our plans for the Maryland market.”
The provider of financial services cited these highlights:
- Loan growth continued. Total average loans grew, on an organic basis, by $114.6 million, or 5.6% annualized, linked-quarter, and $455.1 million, or 5.8% year-over-year.
- Linked-quarter average organic loan growth: Average organic commercial loan growth was $64.6 million, or 5/8% annualized, driven by growth in the commercial and industrial portfolio. Average organic consumer growth was $75.8 million, or 11.8% annualized. And average residential mortgages fell $30.2%, or 11.2% annualized, reflecting accelerated prepayments and F.N.B.’s strategy of selling the mortgages it originates on the secondary markets.
- F.N.B.’s deposit mix strengthened with continued growth in transaction deposits and customer repurchase agreements.
- The net interest margin was 3.63% compared to 3.66% in the first quarter and 3.80% the second quarter a year ago.
- The efficiency ratio (how much a company spends to earn a dollar of revenue) was 58.6%, slightly improved from 59.76% the first quarter but higher than the 57.74% reported a year ago. The companies described the figure as “a good level given that revenue synergies and costs savings related to the Annapolis Bancorp Inc. acquisition are in the early stages.”
- Credit quality metrics remain “good and reflect overall consistent results,” F.N.B. said. Nonperforming loans (those 90 days past due) and other real estate owned (repossessed real estate) as a percentage of total originated loans and OREO remained at 1.59%. Net charge-offs were 0.33% annualized of total average originated loans, compared to a “very low” 0.22% annualized reported for the quarter ended March 31.
- Results and profitability metrics include the effect of completion of the acquisition of Annapolis Bancorp, F.N.B. said. The addition added approximately $435 million in assets, $259 million in loans and $358 million in deposits and customer repurchase agreements.
F.N.B. announced its intent to acquire Baltimore County Savings Bank June 14. It has $640 million in assets, $320 in loans and 16 offices.
Key ratios for the quarters ended June 30, March 31 and June 30, 2012:
- Return on average equity, 7.94%, 8.20%, 8.57%.
- Return on average assets, 0.94%, 0.96%, 1.00%.
- Yield on earning assets, 4.03%, 4.12%, 4.39%.
Noninterest expense (such as salaries and benefits, rents, marketing, Federal Deposit Insurance Corp. premiums) was $84.18 million (of which $2.95 million was merger-related) compared to $78.86 million ($352,000 merger-related) the previous quarter and $78.48 million ($317,000 merger-related) the second quarter of 2012.
Total nonperforming assets at June 30 were $122.5 million compared to $118.4 at March 31 and $134.6 million at June 30, 2012. The ratio of nonperforming loans to total assets for the same periods was 0.97%, 0.99% and 1.15%.
F.N.B. set aside $1.25 million as a provision for loans losses for the second quarter. This compares to $1.18 million the first quarter and $784,000 a year ago. Net loans charged off during the same periods were $1.02 million, $165,000 and zero.
Through its subsidiaries in Pennsylvania, Ohio, West Virginia, Maryland, Kentucky, Tennessee and Florida, F.N.B. engages in commercial, retail, mortgage and merchant banking and offers leasing, trust, wealth management, insurance and consumer finance services.
Published by The Business Journal, Youngstown, Ohio.
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