HERMITAGE, Pa. -- F.N.B. Corp. reports first quarter 2004 net income of $16.2 million, or 34 cents per diluted share, for the first quarter of 2004. This compares to net income from continuing operations of $14.6 million, or 31 cents per diluted share for the first quarter of 2003 and $6.2 million, or 13 cents per diluted share, for the last quarter of 2003.This year's first quarter earnings include a gain on the previously announced sale of two branches totaling $2.7 million after tax, while the fourth quarter of 2003 included after-tax restructuring charges of $6.1 million, related to the spin-off of the Florida operations."At the end of the first quarter since the spin-off of our Florida operations, we are pleased to be on track to meet the performance goals we set in January," says Stephen J. Gurgovits, president and chief executive officer. "This has been a time of transition during which we've concentrated on the re-establishment of F.N.B.'s strategic focus back to its core markets in western Pennsylvania and eastern Ohio."The strength in the corporation's first quarter 2004 earnings can be found in a stabilized net interest income, solid fee income performance from non- traditional sources, successful execution of an expense reduction plan, and continued strong asset quality, Gurgovits says. Results for the first quarter of 2004 reflect a return on equity of 26.8% and a return on assets of 1.4%.Revenue for the quarter, consisting of tax equivalent net interest income plus non-interest income, totaled $63.6 million compared to $58.1 million last quarter. Net interest income increased, driven by growth in earning assets, and was partially offset by a decline in earning asset yields. The net interest margin for the quarter was 4.04% versus 4.05% last quarter.Non-interest income for the first quarter was $20.8 million, up $5 million from the fourth quarter last year, and includes the $4.1 million gain on the sale of two branches. The corporation's fee income from insurance and wealth management activities increased $1.1 million, or 25%, over the previous quarter. Contingent fee income from insurance operations, unique to the first quarter of each year, contributed $500,000 to this improvement. Increased sales of annuities and mutual funds through the branch network contributed an additional $500,000 to fee income, representing a 52% increase from the last quarter. Trust income rose 10% from the fourth quarter last year and gains on the sale of securities were up $.4 million from the same period."The growth in fee income from such non-traditional sources as insurance and wealth management reflects both a trend in new investment options, as well as strategic sales and marketing efforts by the insurance and wealth management divisions," Gurgovits notes.Loans grew slightly on a linked quarter basis. While commercial loans increased 3%, this growth was offset by a planned 5.9% reduction in the indirect loan and lease portfolios. The sale of the two branches in February reduced deposits $40 million and loans outstanding $8 million. Capital ratios remained strong, well in excess of the measures of capitalization required by regulators.In January, directors and senior management celebrated the listing of the corporation's stock on the New York Stock Exchange by ringing the opening bell. Of special significance to shareholders in February was the declaration by the Board of Directors of a cash dividend of 23 cents per common share in the quarter. "F.N.B.'s dividend yield is among the highest dividend yields for banks our size and represents a payout ratio of 65%," Gurgovits says.In March, Regency Finance, F.N.B.'s consumer finance subsidiary, entered into a definitive agreement to purchase eight consumer finance offices in the greater Columbus, Ohio, region, bringing the total number of Regency offices to 56. The value of the loans purchased is approximately $10 million. This transaction is expected to close on April 30.The corporation will hold its annual meeting at 4 p.m. May 12. in the Howard Miller Student Center at Thiel College in Greenville, Pa. Shareholders of record on March 3 will be entitled to vote at the meeting.F.N.B. Corp. has total assets of $4.6 billion. F.N.B. is a provider of banking, wealth management, insurance, and consumer finance services in western Pennsylvania and eastern Ohio, where it owns and operates First National Bank of Pennsylvania, First National Trust Co., First National Investment Services Co., F.N.B. Investment Advisors Inc., First National Insurance Agency Inc., and Regency Finance Co. F.N.B. also operates consumer finance offices in Tennessee."