F.N.B. Reports Record Third-Quarter Net Income
HERMITAGE, Pa. -- F.N.B. Corp., parent of First National Bank of Pennsylvania, Thursday reported record third-quarter net income of $31.63 million, or 22 cents a share.
This compares to second-quarter net income of $29.19 million, or 20 cents a share, and year-ago third-quarter net income of $30.74 million, or 22 cents a share.
The company also announced that its board of directors declared a quarterly cash dividend of 12 cents a share on its common stock payable Dec. 15 to shareholders of record Dec. 2.
Highlights F.N.B. pointed to in its earnings release:
- Loan growth momentum continued with total average loan growth of $200.2 million, or 9.3% annualized, linked-quarter. Total loans at Sept. 30 were $8.837 billion compared to $8.637 billion at June 30 and $7.979 billion Sept. 30, 2012.
- Deposit mix further strengthened through continued growth in transaction deposits and customer repurchase agreements. Average transaction deposits and customer repurchase agreements grew $138.6 million or 7.0% annualized.
- Net interest margin rose one basis point (0.01%) to 3.64%.
- “Credit quality metrics were at very good levels,” F.N.B. said, “and reflected consistent results. Net charge-offs were low at 0.26% annualized of total average originated loans compared to 0.33% in the prior quarter.”
Key ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2012.
- Return on average equity, 8.50%, 7.94%, 8.83%.
- Return on average assets, 0.99%, 0.94%, 1.03%.
- Net interest margin, 3.64%, 3.63%, 3.70%.
- Efficiency ratio, 59.72%, 58.63%, 57.40%.
In a prepared statement, the president and CEO of F.N.B. Vincent J. Delie Jr., said, “We continue to be pleased with the strong results achieved companywide. The balance sheet further expanded through annualized loan growth of 9% and we continued to attract new deposit relationships, with total transaction deposits growing 7% annualized. Our success [in] growing loans and deposits supports the net interest margin, which expanded slightly during the quarter. Asset quality remained very good and net charge-offs were at very low levels. Growth realized across our diverse business lines drives results and delivers solid profitability.”
Net interest income on a fully taxable equivalent basis was $101.04 million compared to $98.49 million the previous quarter and $95.38 million the third quarter of 2012. Average earning assets increased by $161.6 million, or 5.9% annualized as a result of growth in total average loans of $200.2 million, F.N.B. said.
Noninterest income -- fees, insurance commissions, trust income and gains on sales of securities and loans – was $32.86 million, down from $36.75 million the previous quarter and the $34.81 million reported a year ago.
Noninterest expense -- wages and benefits, rents, Federal Deposit Insurance Corp. premiums, advertising, administered repossessed real estate, and acquisition-related costs -- was $83.22 million for the quarter compared to $84.18 million the three months before and $77.08 million the third quarter of 2012.
Total nonperforming assets, which included nonperforming loans and repossessed real estate, were $118.58 million at Sept. 30, down from $122.50 million at June 30 and $121.31 million at Sept. 30, 2012. The ratio of nonperforming assets to total assets continued to improve with figures of 0.93%, 0.97$% and 1.01% respectively.
Total allowance for loan losses grew because of acquisitions that were completed over the past year. At Sept. 30, the figure was $110.05 million; at June 30, $108.28 million; and at Sept. 30, 2012, $102.71 million.
Because of acquisitions as well as internal growth, total assets stood at $12.615 billion at Sept. 30.
Through its subsidiaries in Pennsylvania, Ohio, West Virginia, Maryland, Kentucky, Tennessee and Florida, F.N.B. engages in commercial, consumer, mortgage and merchant banking and provides trust, wealth management, investment banking, insurance and consumer finance services.
Published by The Business Journal, Youngstown, Ohio.
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