F.N.B. Reports Net Income of $117.8M in 2013
HERMITAGE, Pa. -- F.N.B. Corp., whose largest subsidiary is First National Bank of Pennsylvania, reported net income of $117.80 million for 2013, or 80 cents per diluted share, compared to $110.41 million in 2012, or 79 cents per diluted share.
On an operating basis, a non-GAAP measure that F.N.B. management believes “is the preferred industry measurement for this item," net income on a fully taxable equivalent basis was $123.54 million, or 84 cents per diluted common share, compared to full- year 2012 net income of $117.84 million, or 84 cents per diluted common share.
GAAP stands for Generally Accepted Accounting Principles.
Full-year 2013 results include the effect of the completed acquisitions of Annapolis Bancorp Inc. in Maryland and PVF Capital Corp. in Solon, Ohio.
F.N.B. also reported fourth-quarter net income of $28.44 million, or 18 cents per share, compared to third-quarter net income of $31.63 million, or 22 cents a share, and fourth-quarter 2012 net income of $28.96 million, or 21 cents per share.
In a prepared statement, the president and CEO of the holding company and the bank, Vincent J. Delie, commented, “F.N.B. has completed another year highlighted by growth and success. We maintained a high-quality earnings stream despite significant regulatory-related revenue impacts and expense burden and achieved strategic milestones. These accomplishments will mark 2013 as a transformational year. As we enter 2014, we have an expanded footprint in Baltimore, Md., and Cleveland, Ohio, and we are excited about our future potential in these dynamic markets. We are also very optimistic about our prospects across our core markets. Our capital structure is strengthened following the actions undertaken during the year and we continue to attract some of the most talented bankers in our markets. We believe F.N.B. is better positioned than ever for the future.”
In its release, F.N.B. cited these highlights:
- Loan growth continued with annualized average organic loan growth on a linked-quarter basis of $129 million, or 5.9%.
- Average transaction deposits and customer repurchase agreements grew organically on a linked-quarter basis by $138 million or 6.8% annualized. Transaction deposits and customer repurchase agreements improved to 76% of total deposits and customer repurchase agreements at Dec. 31, up from 74% at Dec. 31, 2012. Total deposits and customer repurchase agreements stood at $11.040 billion Dec. 31 compared to $9.890 billion a year earlier.
- The net interest margin expanded to 3.67% from 3.64% the preceding quarter.
- Credit quality metrics improved and reflect continued solid performance.
Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2012; and full years 2013 and 2012:
- Return on average equity, 6.66%, 6.50%, 8.23%; 7.78%, 8.02%.
- Return on average assets, 0.84%, 0.99%, 0.96%; 0.93%, 0.94%.
- Net interest margin, 3.67%, 3.64%, 3.66%; 3.65%, 3.73%.
- Efficiency ratio, 57.77%, 59.71%, 55.43%; 58.94%, 58.32%.
Fourth-quarter noninterest income -- such as service charges and fees, trust income, insurance premiums -- was $32.7 million, down $200,000 or 0.5%. Noninterest income constituted 23% of total revenues, F.N.B. said.
Noninterest expense -- which includes wages and benefits, rents, data processing, maintenance of repossessed real estate, Federal Deposit Insurance Corp. premiums, and acquisition-related expense -- was $92.07 million, nearly $4 million of that sum related to acquisitions. This compares to $83.17 million the third quarter and $76.53 million the quarter ended Dec. 31, 2012.
Credit quality, as Delie noted, remained strong. Nonperforming loans (those 90 days or more past due and include restructured loans) stood at $77.45 million Dec. 31, 0.81% of total loans; at $82.70 million Sept. 30, 0.94% of total loans; and $80.88 million Dec. 31, 2012, 0.99% of total loans.
The provision for loan losses in the fourth quarter, $2.71 million, exceeded the net loan charge-offs, $1.53 million. Repossessed real estate rose to $40.66 during the quarter million because of completion of the acquisition of PVF Capital, roughly $5.5 million higher than the Sept. 30 figure.
At year-end, F.N.B. total assets stood at $13.563 billion, total deposits $10.2 billion and shareholders’ equity at $1.774 billion.
SOURCE: F.N.B. Corp.
Published by The Business Journal, Youngstown, Ohio.
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