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F.N.B. Reports Record First-Quarter Net Income
HERMITAGE, Pa. – F.N.B. Corp., parent of First National Bank of Pennsylvania, reported net income Tuesday of $28.54 million, or 20 cents per share, for the quarter ended March 31. This is a first-quarter record for F.N.B., it said, and a 5% increase in adjusted earnings per diluted share compared to the same quarter in 2012.
By comparison, F.N.B. reported net income of $28.96 million, or 21 cents a share, the last quarter of 2012 and first-quarter 2012 net income of $21.58 million, or 16 cents a share.
In a prepared statement, the president and CEO, Vincent J. Delie Jr., said, “F.N.B. had a very productive quarter and a great start to the new year. Favorable first-quarter operating trends include continued growth in loans and low-cost transaction deposits, a stable net interest margin and very good credit-quality results. Average loan growth of 7% annualized reflects contributions from both the commercial and consumer portfolios, with overall results drive by C&I lending. …
“In addition to delivering solid performance, our team is engaged in a variety of initiatives that strengthen F.N.B.’s positioning for the future. Our focus on executing an electronic delivery strategy has enabled us to provide our clients with leading-edge mobile and online banking capabilities. The most recent enhancements to our suite of electronic banking options include mobile remote deposit and comprehensive online budgeting tools, both of which have been met with very positive [reaction] from our clients. Over 40,000 customers currently use the F.N.B. mobile app and we expect continued growth throughout the year.”
Other highlights F.N.B. cited:
- The net interest margin of 3.66% is unchanged from the previous quarter.
- Loan growth continued, total loans increasing to $8.209 billion, compared to $8.138 billion at Dec. 31 and $7.803 billion at March 31, 2012.
- Commercial loans and leases stood at $4.521 billion at March 31 compared to $4.439 billion last Dec. 31 and $4.226 billion March 31, 2012.
- The commercial and industrial (C&I) portfolio was $1.711 billion compared to $1.602 billion at year-end and $1.451 billion a year ago.
- Average consumer loans for the quarter were $812.26 million compared to $793.50 million the fourth quarter of 2012 and $695.20 million the same quarter a year ago.
- Credit quality remained strong as nonperforming loans (those 90 days past due) and other real estate owned (OREO or repossessed properties) fell to 1.59% of total loans, or $118 million. Nonperforming loans and OREO stood at $116.14 million at Dec. 31 and $146.79 million at March 31, 2012.
- Net interest income was $93.10 million compared to $93.92 million at Dec. 31 and the net interest margin remained unchanged at 3.66%.
- Noninterest income (such as fees, trust income) was $33.67 million compared to $32.13 million the previous quarter and $31.75 million the first quarter of 2012.
- Noninterest expense (wages and benefits, rents, OREO administration, Federal Deposit Insurance Corp. premiums) was $78.86 million compared to $76.59 million the last quarter of 2012 and $86.67 million the first quarter a year ago.
Key performance ratios for the quarters ended March 31, Dec. 31 and March 31, 2012:
- Return on average equity, 8.20%, 8.23%, 6.42%.
- Return on average assets, 0.96%, 0.96%, 0.75%.
- Efficiency ratio, 59.76%, 55.45%, 60.42%.
- Capital ratios for the same periods:
- Equity/assets, 11.78%, 11.66%, 11.55%.
- Leverage, 8.40%, 8.29%, 8.06%.
- Tangible equity/tangible assets, 6.22%, 6.09%, 5.82%.
F.N.B. released its earnings after markets closed yesterday. Shares closed at $11.47, up 19 cents from Monday on a volume of 345,185, well below its average daily volume of 627,930.
Through its subsidiaries in Pennsylvania, Ohio, West Virginia, Maryland, Kentucky, Tennessee and Florida, F.N.B., which has assets of $12.4 billion, engages in commercial, consumer and mortgage banking and provides trust, wealth management, leasing, merchant banking, consumer finance and insurance services.
Published by The Business Journal, Youngstown, Ohio.
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