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F.N.B. Corporation Reports Third Quarter 2016 Earnings

Mittwoch, 19.10.2016 23:15 von

PR Newswire

PITTSBURGH, Oct. 19, 2016 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) reported earnings for the third quarter of 2016 with net income available to common stockholders of $50.2 million, or $0.24 per diluted common share. Comparatively, second quarter of 2016 net income available to common stockholders totaled $39.3 million, or $0.19 per share, including $0.03 per share in merger expense, and third quarter of 2015 net income available to common stockholders totaled $38.0 million, or $0.22 per share. Quarterly results are summarized in the table below.

Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "FNB delivered another strong performance with operating net income per diluted common share increasing 9% compared to the prior quarter and record operating net income of $50.4 million.  The third quarter's performance was also highlighted by record levels of revenue and an improved efficiency ratio.  Additionally, our results reflect the full realization of cost savings from the Metro and Fifth Third branch acquisitions.  The continued improvement in our efficiency ratio coupled with our revenue and earnings growth are additional proof points of successfully executing our organic growth and acquisition strategy."

Quarterly Results Summary

3Q16

2Q16

3Q15





Reported Results


Net income available to common stockholders ($ in millions)

$50.2

$39.3

$38.0

Net income per diluted common share

$0.24

$0.19

$0.22


Operating Results (non-GAAP)

Operating net income available to common stockholders ($ in millions)

$50.4

$46.1

$38.9

Operating net income per diluted common share

$0.24

$0.22

$0.22


Average Diluted Shares Outstanding (in 000's)

211,791

211,675

176,513


 

Operating net income is a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. See the Data Sheets that follow for additional information.

Third Quarter 2016 Highlights
(All comparisons refer to the second quarter of 2016, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances from acquisitions.)

Results include the impact from the acquisition of Fifth Third Bank Branches (5/3) on April 22, 2016.

  • Organic growth in total average loans was $274 million, or 7.6% annualized, with average commercial loan growth of $80 million, or 3.7% annualized, and average consumer loan growth of $191 million, or 13.1% annualized (includes residential mortgage, direct and indirect installment and home-equity related products).
  • On an organic basis, average total deposits declined $57 million, or 1.4% annualized, with organic growth in average non-interest bearing deposits of $69 million, or 6.9% annualized, offset by an expected decline in time deposits.
  • The reported net interest margin (non-GAAP) decreased five basis points to 3.36%, compared to 3.41% in the prior quarter. The core net interest margin (non-GAAP) narrowed three basis points to 3.32%, compared to 3.35% in the prior quarter.
  • The efficiency ratio (non-GAAP) of 54.4% continued to improve from 55.4% in the prior quarter and 55.6% in the year-ago quarter.
  • Credit quality results reflect stable non-performing asset levels and slightly decreased total delinquency levels. Non-performing loans and other real estate owned (OREO) to total originated loans and OREO was 1.08%, improving 7 basis points from 1.15% in the prior quarter, and total originated delinquency decreased 2 basis points to 1.00% at September 30, 2016. Net originated charge-offs were 0.41% annualized of total average originated loans, compared to 0.35% annualized in the second quarter of 2016 and 0.22% annualized in the year-ago quarter.
  • The tangible common equity to tangible assets ratio (non-GAAP) was 6.69% at September 30, 2016, compared to 6.68% at June 30, 2016, reflecting retained earnings of $24.8 million supporting strong loan growth and the addition of Fifth Third Bank branches and related balances. The tangible book value per common share (non-GAAP) increased $0.13 to $6.53 at September 30, 2016, reflecting net income of $50.2 million, which translates into retained earnings of $24.8 million after paying out $25.4 million in quarterly common dividends.

Third Quarter 2016 Results – Comparison to Prior Quarter
(All comparisons refer to the second quarter of 2016, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances from acquisitions.)

Results include the impact from the acquisition of Fifth Third Bank branches (5/3) on April 22, 2016.

Net Interest Income/Loans/Deposits
Net interest income totaled $157.5 million, increasing $3.1 million or 2.0%. The reported net interest margin (non-GAAP) decreased to 3.36%, compared to 3.41%.  The core net interest margin (non-GAAP) narrowed 3 basis points to 3.32%, reflecting the extended low interest rate environment that continues to pressure new earning asset yields.  Total average earning assets increased $0.5 billion or 3.0%, due to continued organic loan growth and modest growth in the securities portfolio.

Average loans totaled $14.6 billion and increased $297 million, or 8.2% annualized, primarily attributable to organic average loan growth of $274 million, or 7.6% annualized.  Average organic consumer loan growth was $191 million, or 13.1% annualized, led by strong demand and increased origination volume in residential mortgage and indirect auto loans.

Total average deposits totaled $15.7 billion and increased $16 million, or 0.4% annualized.  Organic growth in low-cost non-interest bearing deposit accounts was $69 million, or 6.9% annualized, which was due mainly to seasonally higher business DDA balances.  On an organic basis, growth in average non-interest bearing deposits was offset by an expected decline in time deposits of $97 million, or 14.4% annualized.

Non-Interest Income
Non-interest income totaled $53.2 million, increasing $1.8 million, or 3.6%. The increase in non-interest income was supported by strong performance in our fee-based businesses, notably mortgage banking, capital markets (defined as swap income, international banking and syndications) and insurance.  Commercial loan interest rate swaps had increased demand across the footprint resulting in increased fee income.  Mortgage banking income increased $0.8 million to $3.6 million, reflecting higher overall production levels.  Insurance revenues increased $0.8 million to $4.9 million, reflecting new client acquisition and seasonally higher commissions.  Non-interest income equaled 25% of total revenue.

Non-Interest Expense
Non-interest expense totaled $121.1 million, decreasing $8.6 million, or 6.6%, and included a $10.3 million decrease in merger expense to $0.3 million, compared to $10.6 million in the prior quarter.  Absent these merger expenses, non-interest expense would have increased $1.7 million, or 1.4%.  The efficiency ratio (non-GAAP) improved to 54.4%, compared to 55.4% in the prior quarter, reflecting the full realization of cost savings from the Metro merger.

Credit Quality
Credit quality results continued to reflect solid performance and stable non-performing asset and total delinquency levels.  The ratio of non-performing loans and OREO to total loans and OREO improved 3 basis points to 0.92%, and for the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO decreased 7 basis points to 1.08%. Total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans, decreased 2 basis points to 1.00%, compared to 1.02% at June 30, 2016.

Net charge-offs totaled $12.1 million, or 0.33% annualized of total average loans, compared to $10.1 million, or 0.28% annualized in the prior quarter.  For the originated portfolio, net charge-offs were $12.3 million, or 0.41% annualized of total average originated loans, compared to $9.9 million or 0.35% annualized.  The increase in net charge-offs during the quarter was primarily due to the successful exit of some rated credits at slightly better than positioned levels. The ratio of the allowance for loan losses to total originated loans decreased by 3 basis points from June 30, 2016 to 1.23% at September 30, 2016, reflecting the utilization of previously-established reserves. The provision for loan losses totaled $14.6 million, compared to $16.6 million in the prior quarter.

September 2016 Year-To-Date Results – Comparison to Prior Year-To-Date Period
(All comparisons refer to the first nine months of 2015, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances from acquisitions.)

Results include the impact from the acquisition of Fifth Third Bank branches (5/3) on April 22, 2016, Metro Bancorp, Inc. (METR) on February 13, 2016, and the acquisition of five Bank of America branches (BofA) on September 19, 2015.

Net Interest Income/Loans/Deposits
Net interest income totaled $452.2 million, increasing $81.3 million, or 21.9%, reflecting average earning asset growth of $3.5 billion, or 23.9%. The reported net interest margin (non-GAAP) was 3.39%, compared to 3.43%. The core net interest margin (non-GAAP) narrowed 5 basis points to 3.36%, due to the extended low interest rate environment as origination yields on new earning assets remain pressured.

Average loans totaled $14.1 billion and increased $2.6 billion, or 22.1%, due to the benefit from continued organic loan growth and the acquired METR, 5/3 and BofA balances. Organic growth in total average loans equaled $957 million, or 8.3%. Organic growth in average commercial loans totaled $547 million, or 8.5%, and organic growth in average consumer loans was $404 million or 8.0%. Total organic commercial loan growth was led by the incremental lift from more commercial lending opportunities concentrated in the metropolitan markets of Pittsburgh, Baltimore and Cleveland.  Total average consumer loan growth was broad-based with good performance across residential mortgage, indirect auto and home-equity related products.

Average deposits totaled $15.2 billion and increased $3.2 billion, or 27.1%, due to average organic growth of $1.0 billion or 8.3%, and the benefit from acquired METR, 5/3 and BofA balances. On an organic basis, average total transaction deposits increased $1.1 billion or 11.9%. Total loans as a percentage of deposits was 92.5% at September 30, 2016.

Non-Interest Income
Non-interest income totaled $150.7 million, increasing $31.4 million or 26.3%.  Non-interest income reflects the benefit of the METR, 5/3 and BofA acquisitions and strong organic growth from capital markets, mortgage banking, wealth management and insurance.

Non-Interest Expense
Non-interest expense totaled $387.3 million, increasing $98.0 million, or 33.9%. The first nine months of 2016 included merger expenses of $35.8 million and a $2.6 million impairment charge on acquired other assets.  Absent these items and merger expenses of $1.7 million in the first nine months of 2015, total non-interest expense increased $61.3 million, or 21.3%, compared to the first nine months of 2015, with the increase primarily attributable to the expanded operations from the acquisitions of METR, 5/3 and BofA. The efficiency ratio (non-GAAP) was 55.4%, improved from 56.1% in the first nine months of 2015 due to increased scale including the benefit from new customers gained in expanded markets.

Credit Quality
Credit quality results continued to reflect solid performance with modest increases in non-performing loan and total delinquency levels.  For the originated portfolio, non-performing loans and OREO to total loans and OREO was 1.08%, compared to 0.99%, and total originated delinquency increased 11 basis points to 1.00% at September 30, 2016.

Net charge-offs for the first nine months totaled $28.2 million, or 0.27% annualized of total average loans, compared to 0.20% annualized in the prior-year period.  Net originated charge- offs were 0.32% annualized of total average originated loans, compared to 0.23% annualized. For the originated portfolio, the allowance for loan losses to total originated loans was 1.23%, compared to 1.22% at September 30, 2015. The ratio of the allowance for loan losses to total loans decreased 9 basis points to 1.06%, with the movement due to additional loan balances from acquisitions without a corresponding allowance for loan losses in accordance with accounting for business combinations. The provision for loan losses was $43.0 million, compared to $27.8 million in the prior-year period. The increase is attributable to strong originated loan growth and limited credit migration.

Capital Position
The tangible common equity to tangible assets ratio (non-GAAP) was 6.69%, compared to 6.68% at June 30, 2016.  Book value per common share increased to $11.72, from $11.61 at June 30, 2016.  Tangible book value per common share (non-GAAP) increased to $6.53, from $6.40 at June 30, 2016.  The common dividend payout ratio for the third quarter of 2016 was 50.7%, reflecting net income of $50.2 million, which translates into retained earnings of $24.8 million after paying out $25.4 million in quarterly common and preferred dividends.

Non-GAAP Financial Measures and Key Performance Indicators
F.N.B. Corporation uses non-GAAP financial measures, such as operating net income available to common stockholders, operating net income per diluted common share, tangible book value per common share, the ratio of tangible common equity to tangible assets, efficiency ratio, net interest margin and core net interest margin to provide information useful to investors in understanding F.N.B. Corporation's operating performance and trends, and to facilitate comparisons with the performance of F.N.B. Corporation's peers. Management uses these measures internally to assess performance in operating the business and to better understand the underlying business performance and trends related to core business activities.  The non-GAAP financial measures and key performance indicators used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, F.N.B. Corporation's reported results prepared in accordance with U.S. GAAP.  Reconciliations of GAAP to non-GAAP operating measures to the most directly comparable U.S. GAAP financial measures are included in the tables at the end of this release under the caption "Non- GAAP Financial Measures and Key Performance Indicators."

Operating net income is a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. See the Data Sheets that follow for additional information.

We believe merger expenses are not organic costs to run our operations and facilities. These charges represent expenses to either satisfy contractual obligations of acquired entities without any useful benefit to F.N.B Corporation or to convert and consolidate customer records onto the F.N.B. platforms. These costs are unique to each transaction based on the contracts in existence at the merger date.

For the calculation of net interest margin and the efficiency ratio, interest income amounts are reflected on a fully taxable equivalent (FTE) basis which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35.0% for each period presented. The Corporation uses these measures to provide an economic view believed to be the preferred industry measurement for these items and provides relevant comparison between taxable and non-taxable amounts.

Conference Call
The Company's President and Chief Executive Officer, Vincent J. Delie, Jr., Chief Financial Officer, Vincent J. Calabrese, Jr., and Chief Credit Officer, Gary L. Guerrieri, will host a conference call to discuss the Company's financial results on Thursday, October 20, 2016, at 10:30 AM ET.

Participants are encouraged to pre-register for the conference call at http://dpregister.com/10094097.  Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator.  Participants may pre-register at any time, including up to and after the call start time.

Dial-in Access (those who did not pre-register): The conference call may be accessed by dialing (844) 802-2440 or (412) 317-5133 for international callers. Participants should ask to be joined into the F.N.B. Corporation call.

Webcast Access: The audio-only call and related presentation materials may be accessed via webcast through the "Shareholder and Investor Relations" section of the Corporation's web site at www.fnbcorporation.com. Access to the live webcast will begin approximately 30 minutes prior to the start of the call.

Presentation Materials: Presentation slides and the earnings release will also be available on the Corporation's web site at www.fnbcorporation.com.
A replay of the call will be available shortly after the completion of the call on the day of the call until midnight ET on Thursday, October 27, 2016. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10094097. Following the call, a transcript of the call and the related presentation materials will be posted to the "Shareholder and Investor Relations" section of F.N.B. Corporation's web site at www.fnbcorporation.com.

About F.N.B. Corporation
F.N.B. Corporation (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company. On a combined, pro forma basis, including the proposed acquisition of Yadkin Financial Corporation (Yadkin), FNB will operate in eight states and seven major metropolitan areas. FNB holds a significant retail deposit market share in Pittsburgh, Pennsylvania, Baltimore, Maryland, and Cleveland, Ohio, and, assuming the Yadkin acquisition is completed, will add Charlotte, Raleigh-Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina. If the proposed Yadkin acquisition is completed (Transaction), the Company will have total combined, pro forma assets of nearly $30 billion, and more than 400 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina and South Carolina. FNB provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network which is led by its largest affiliate, First National Bank of Pennsylvania, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, international banking, business credit, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. FNB's wealth management services include asset management, private banking and insurance. The Company also operates Regency Finance Company, which has more than 75 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee. The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor's MidCap 400 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation web site at http://www.fnbcorporation.com.

Cautionary Statement Regarding Forward-Looking Information
This document/communication/information contains forward looking statements which may contain FNB's expectations or predictions of future financial or business performance or conditions. This document/communication/information may also contain certain forward-looking statements, including certain plans, goals, projections and statements about the proposed Transaction, plans relative to the proposed Transaction, objectives, expectations and intentions regarding the proposed Transaction, the expected timing of the completion of the proposed Transaction, and other statements that are not historical facts. Forward-looking statements, that do not describe historical or current facts, typically are identified by words such as, "believe", "plan", "expect", "anticipate", "intend", "outlook", "estimate", "forecast", "will", "should", "project", "goal", and other similar words and expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. The forward-looking statements are intended to be subject to the safe harbor provided under Section 27A of the Securities Act of 1933, Section 27E of the Securities Exchange Act of 1934, and the Private Securities Litigation Act of 1995.

In addition to factors previously disclosed in FNB's and Yadkin's reports filed with the Securities and Exchange Commission (SEC), the following risk factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to obtain all regulatory approvals and meet other closing conditions to the proposed Transaction between FNB and Yadkin, including approval by the shareholders of FNB and Yadkin, respectively, on the expected terms and time schedule; delay in closing the proposed Transaction; potential risks and challenges attendant to the successful conversions of core data systems; difficulties and delays in integrating the FNB and Yadkin businesses or fully realizing cost savings and other benefits; business disruption following the merger; changes in asset quality and credit risk; changes in general economic, political or industry conditions; uncertainty in U.S. fiscal policy and monetary policy, including interest rate policies of the Federal Reserve Board (FRB); the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of FNB products and services; potential difficulties encountered by FNB in expanding into a new and remote geographic market; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures;  the impact, extent and timing of technological changes, capital management activities, competitive pressures on product pricing and services; ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; success, impact and timing of FNB's and Yadkin's respective business strategies, including market acceptance of any new products or services; and implementing FNB's banking philosophy and strategies.  Additional risks include  the nature, extent, timing and results of governmental and regulatory actions, examinations, reviews, reforms, regulations and interpretations, including those related to the Dodd-Frank Wall Street Reform Act and Consumer Protection Act and Basel III regulatory or capital reforms (including DFAST stress-testing protocols), as well as those involving the Office of the Comptroller of the Currency (OCC), FRB, Federal Deposit Insurance Corporation (FDIC), and Consumer Financial Protection Board (CFPB), and the regulatory approval process associated with the proposed Transaction; the possibility that the proposed Transaction does not close when expected or at all because required regulatory or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; the possibility that the anticipated benefits of the proposed Transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where FNB and Yadkin do business; the possibility that the proposed Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed Transaction; FNB's ability to complete the acquisition and integration of Yadkin successfully; and other factors that may affect future results of FNB and Yadkin.  There is no assurance that any of the risks, uncertainties or risk factors identified herein is complete and actual results or events may differ materially from those expressed or implied in the forward-looking statements contained in this document/communication/information.

Additional factors that could cause results to differ materially from those described above can be found in FNB's Annual Report on Form 10-K for the year ended December 31, 2015, and in its subsequent Quarterly Reports on Form 10-Q, including quarters ended March 31 and June 30, 2016, each of which is on file with the SEC and available in the "Investor Relations & Shareholder Services" section of FNB's website, http://www.fnbcorporation.com, under the heading "Reports and Filings" and in other documents FNB files with the SEC, and in Yadkin's Annual Report on Form 10-K for the year ended December 31, 2015, and in its subsequent Quarterly Reports on Form 10-Q, including the quarters ended March 31 and June 30, 2016, each of which is on file with the SEC and available in the "Investor Relations" section of Yadkin's website,  http://www.yadkinbank.com, under the heading "Documents" and in other documents Yadkin files with the SEC.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither FNB nor Yadkin assumes any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

Additional Information About the Merger and Where to Find It
Communications in this document do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, FNB has filed with the SEC a Registration Statement on Form S-4 that includes a Joint Proxy Statement of FNB and Yadkin and a Prospectus of FNB, as well as other relevant documents concerning the proposed Transaction.

SHAREHOLDERS OF F.N.B. CORPORATION AND YADKIN FINANCIAL CORPORATION ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

The Joint Proxy Statement/Prospectus and other relevant materials, and any other documents FNB and Yadkin have filed with the SEC, may be obtained free of charge at the SEC's internet site, http://www.sec.gov.  Copies of the documents FNB has filed with the SEC may be obtained, free of charge, by contacting James G. Orie, Chief Legal Officer, F.N.B. Corporation, One F.N.B. Boulevard, Hermitage, PA 16148, telephone: (724) 983-3317; and copies of the documents Yadkin has filed with the SEC may be obtained free of charge at Yadkin's website at http://www.yadkinbank.com.

FNB and Yadkin and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Yadkin and F.N.B. in connection with the proposed Transaction. Information concerning such participants' interests in the proposed transaction are set forth in the Joint Proxy Statement/Prospectus.

 


F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)



Percent Variance


3Q16 -


3Q16 -

Statement of earnings

3Q16


2Q16


3Q15


2Q16


3Q15

Interest income

$175,110


$170,931


$137,197


2.4


27.6

Interest expense

17,604


16,562


11,996


6.3


46.7

   Net interest income

157,506


154,369


125,201


2.0


25.8

Provision for credit losses

14,639


16,640


10,777


-12.0


35.8

   Net interest income after provision

142,867


137,729


114,424


3.7


24.9


Service charges

25,756


26,396


18,628


-2.4


38.3

Trust income

5,268


5,405


5,210


-2.5


1.1

Insurance commissions and fees

4,866


4,105


4,423


18.5


10.0

Securities commissions and fees

3,404


3,622


3,304


-6.0


3.0

Mortgage banking operations

3,564


2,753


2,424


29.5


47.0

Net securities gains

299


226


314


n/m


n/m

Other

10,083


8,904


7,056


13.2


42.9

   Total non-interest income

53,240


51,411


41,359


3.6


28.7


Salaries and employee benefits

60,927


61,329


51,759


-0.7


17.7

Occupancy and equipment

20,367


20,207


16,194


0.8


25.8

FDIC insurance

5,274


5,103


3,158


3.4


67.0

Amortization of intangibles

3,571


3,388


2,034


5.4


75.5

Other real estate owned

1,172


172


1,299


582.6


-9.8

Merger, acquisition and severance-related

299


10,551


1,312


n/m


n/m

Other

29,440


28,879


22,393


1.9


31.5

   Total non-interest expense

121,050


129,629


98,149


-6.6


23.3


Income before income taxes

75,057


59,511


57,634


26.1


30.2

Income taxes

22,889


18,211


17,581


25.7


30.2

   Net income

52,168


41,300


40,053


26.3


30.2

   Preferred stock dividends

2,010


2,010


2,010





   Net income available to common stockholders

$50,158


$39,290


$38,043


27.7


31.8


Earnings per common share:

   Basic

$0.24


$0.19


$0.22


26.3


9.1

   Diluted

$0.24


$0.19


$0.22


26.3


9.1


Reconciliation of Operating Net Income (non-GAAP):

Net income available to common stockholders

$50,158


$39,290


$38,043





Merger, acquisition and severance costs

299


10,551


1,312





Tax benefit of merger, acquisition and severance costs

(105)


(3,693)


(459)





Operating net income available to common stockholders

$50,352


$46,148


$38,896


9.1


29.5


Net income per diluted common share

$0.24


$0.19


$0.22





Effect of merger, acquisition and severance costs

0.00


0.05


0.01





Tax benefit of merger, acquisition and severance costs

(0.00)


(0.02)


(0.00)





Operating net income per diluted common share

$0.24


$0.22


$0.22


9.1


9.1


Common stock data

Average diluted shares outstanding

211,790,730


211,675,449


176,512,832


0.1


20.0

Period end shares outstanding

210,224,194


210,120,601


175,363,439


0.0


19.9

Book value per common share

$11.72


$11.61


$11.34


1.0


3.4

Tangible book value per common share (1)

$6.53


$6.40


$6.36


2.0


2.7

Dividend payout ratio (common)

50.69%


64.68%


55.67%





 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)



For the Nine Months




Ended September 30,


Percent

Statement of earnings

2016


2015


Variance

Interest income

$501,795


$406,014


23.6

Interest expense

49,566


35,125


41.1

   Net interest income

452,229


370,889


21.9

Provision for credit losses

43,047


27,777


55.0

   Net interest income after provision

409,182


343,112


19.3


Service charges

73,428


51,959


41.3

Trust income

15,955


15,803


1.0

Insurance commissions and fees

13,892


12,351


12.5

Securities commissions and fees

10,400


9,958


4.4

Mortgage banking operations

7,912


6,739


17.4

Net securities gains

596


319


n/m

Other

28,512


22,164


28.6

   Total non-interest income

150,695


119,293


26.3


Salaries and employee benefits

178,681


151,459


18.0

Occupancy and equipment

58,396


48,988


19.2

FDIC insurance

14,345


9,630


49.0

Amortization of intangibles

9,608


6,148


56.3

Other real estate owned

2,752


3,788


-27.3

Merger, acquisition and severance-related

35,790


1,683


n/m

Other

87,755


67,607


29.8

   Total non-interest expense

387,327


289,303


33.9


Income before income taxes

172,550


173,102


-0.3

Income taxes

52,950


52,575


0.7

   Net income

119,600


120,527


-0.8

   Preferred stock dividends

6,030


6,030



   Net income available to common stockholders

$113,570


$114,497


-0.8


Earnings per common share:

   Basic

$0.55


$0.65


-15.4

   Diluted

$0.55


$0.65


-15.4


Reconciliation of Operating Net Income (non-GAAP):

Net income available to common stockholders

$113,570


$114,497



Merger, acquisition and severance costs

35,790


1,683



Tax benefit of merger, acquisition and severance costs

(12,209)


(589)



Operating net income available to common stockholders

$137,151


$115,591


18.7


Net income per diluted common share

$0.55


$0.65



Effect of merger, acquisition and severance costs

0.18


0.01



Tax benefit of merger, acquisition and severance costs

(0.06)


(0.00)



Operating net income per diluted common share

$0.67


$0.66


1.5


Common stock data

Average diluted shares outstanding

206,133,740


176,200,142


17.0

Period end shares outstanding

210,224,194


175,363,439


19.9

Book value per common share

$11.72


$11.34


3.4

Tangible book value per common share (1)

$6.53


$6.36


2.7

Dividend payout ratio (common)

67.04%


55.31%



 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)



Percent Variance


3Q16 -


3Q16 -

Balance Sheet (at period end)

3Q16


2Q16


3Q15


2Q16


3Q15

Assets

Cash and due from banks

$326,599


$285,783


$208,560


14.3


56.6

Interest bearing deposits with banks

118,651


113,244


50,206


4.8


136.3

   Cash and cash equivalents

445,250


399,027


258,766


11.6


72.1

Securities available for sale

2,077,616


2,133,662


1,578,526


-2.6


31.6

Securities held to maturity

2,249,245


2,064,305


1,526,290


9.0


47.4

Residential mortgage loans held for sale

17,862


12,062


3,575


48.1


399.6

Loans and leases, net of unearned income

14,773,446


14,563,128


11,873,645


1.4


24.4

Allowance for credit losses

(156,894)


(154,369)


(136,183)


1.6


15.2

   Net loans and leases

14,616,552


14,408,759


11,737,462


1.4


24.5

Premises and equipment, net

228,622


224,805


161,689


1.7


41.4

Goodwill

1,022,006


1,021,247


834,141


0.1


22.5

Core deposit and other intangible assets, net

81,646


83,744


46,417


-2.5


75.9

Bank owned life insurance

327,874


328,127


306,061


-0.1


7.1

Other assets

517,241


539,229


383,146


-4.1


35.0

Total Assets

$21,583,914


$21,214,967


$16,836,073


1.7


28.2


Liabilities

Deposits:

   Non-interest bearing demand

$4,082,145


$3,969,115


$2,911,435


2.8


40.2

   Interest bearing demand

7,032,744


6,657,651


5,558,322


5.6


26.5

   Savings

2,299,408


2,284,159


1,736,350


0.7


32.4

   Certificates and other time deposits

2,562,587


2,617,637


2,553,629


-2.1


0.4

      Total Deposits

15,976,884


15,528,561


12,759,736


2.9


25.2

Short-term borrowings

2,236,105


2,260,411


1,287,302


-1.1


73.7

Long-term borrowings

587,500


656,844


542,653


-10.6


8.3

Other liabilities

212,845


223,813


151,633


-4.9


40.4

   Total Liabilities

19,013,334


18,669,630


14,741,324


1.8


29.0


Stockholders' Equity

Preferred Stock

106,882


106,882


106,882


0.0


0.0

Common stock

2,117


2,116


1,766


0.1


19.9

Additional paid-in capital

2,223,530


2,220,243


1,805,926


0.1


23.1

Retained earnings

280,654


255,921


227,287


9.7


23.5

Accumulated other comprehensive loss

(27,852)


(25,459)


(34,397)


9.4


-19.0

Treasury stock

(14,751)


(14,366)


(12,715)


2.7


16.0

   Total Stockholders' Equity

2,570,580


2,545,337


2,094,749


1.0


22.7

Total Liabilities and Stockholders' Equity

$21,583,914


$21,214,967


$16,836,073


1.7


28.2


Selected average balances

Total assets

$21,386,156


$20,780,413


$16,732,310


2.9


27.8

Earning assets

19,045,481


18,496,395


14,936,867


3.0


27.5

Interest bearing deposits with banks

140,713


109,432


75,208


28.6


87.1

Securities

4,240,563


4,026,101


3,088,987


5.3


37.3

Residential mortgage loans held for sale

22,476


15,734


8,967


42.9


150.6

Loans and leases, net of unearned income

14,641,729


14,345,128


11,763,705


2.1


24.5

Allowance for credit losses

158,901


150,487


134,206


5.6


18.4

Goodwill and intangibles

1,104,328


1,100,129


876,513


0.4


26.0

Deposits

15,671,857


15,655,637


12,421,564


0.1


26.2

Short-term borrowings

2,303,389


1,716,565


1,546,209


34.2


49.0

Long-term borrowings

616,141


657,059


542,720


-6.2


13.5

Total stockholders' equity

2,562,693


2,532,226


2,082,043


1.2


23.1

Preferred stockholders' equity

106,882


106,882


106,882


0.0


0.0

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)



For the Nine Months




Ended September 30,


Percent

Balance Sheet (at period end)

2016


2015


Variance

Assets

Cash and due from banks

$326,599


$208,560


56.6

Interest bearing deposits with banks

118,651


50,206


136.3

   Cash and cash equivalents

445,250


258,766


72.1

Securities available for sale

2,077,616


1,578,526


31.6

Securities held to maturity

2,249,245


1,526,290


47.4

Residential mortgage loans held for sale

17,862


3,575


399.6

Loans and leases, net of unearned income

14,773,446


11,873,645


24.4

Allowance for credit losses

(156,894)


(136,183)


15.2

   Net loans and leases

14,616,552


11,737,462


24.5

Premises and equipment, net

228,622


161,689


41.4

Goodwill

1,022,006


834,141


22.5

Core deposit and other intangible assets, net

81,646


46,417


75.9

Bank owned life insurance

327,874


306,061


7.1

Other assets

517,241


383,146


35.0

Total Assets

$21,583,914


$16,836,073


28.2


Liabilities

Deposits:

   Non-interest bearing demand

$4,082,145


$2,911,435


40.2

   Interest bearing demand

7,032,744


5,558,322


26.5

   Savings

2,299,408


1,736,350


32.4

   Certificates and other time deposits

2,562,587


2,553,629


0.4

      Total Deposits

15,976,884


12,759,736


25.2

Short-term borrowings

2,236,105


1,287,302


73.7

Long-term borrowings

587,500


542,653


8.3

Other liabilities

212,845


151,633


40.4

   Total Liabilities

19,013,334


14,741,324


29.0


Stockholders' Equity

Preferred Stock

106,882


106,882


0.0

Common stock

2,117


1,766


19.9

Additional paid-in capital

2,223,530


1,805,926


23.1

Retained earnings

280,654


227,287


23.5

Accumulated other comprehensive loss

(27,852)


(34,397)


-19.0

Treasury stock

(14,751)


(12,715)


16.0

   Total Stockholders' Equity

2,570,580


2,094,749


22.7

Total Liabilities and Stockholders' Equity

$21,583,914


$16,836,073


28.2


Selected average balances

Total assets

$20,364,810


$16,447,712


23.8

Earning assets

18,150,092


14,650,785


23.9

Interest bearing deposits with banks

124,589


75,622


64.8

Securities

3,932,084


3,039,635


29.4

Residential mortgage loans held for sale

14,807


7,298


102.9

Loans and leases, net of unearned income

14,078,612


11,528,230


22.1

Allowance for credit losses

150,807


131,465


14.7

Goodwill and intangibles

1,059,873


876,009


21.0

Deposits

15,176,234


11,939,971


27.1

Short-term borrowings

1,861,438


1,759,200


5.8

Long-term borrowings

640,474


542,091


18.1

Total stockholders' equity

2,475,198


2,062,929


20.0

Preferred stockholders' equity

106,882


106,882


0.0

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)



Percent Variance


3Q16 -


3Q16 -


3Q16


2Q16


3Q15


2Q16


3Q15

Performance ratios

Return on average equity

8.10%


6.56%


7.63%


Return on average tangible equity (1)

14.87%


12.25%


13.65%


Return on average tangible common equity (1)

15.45%


12.63%


14.25%


Return on average assets

0.97%


0.80%


0.95%


Return on average tangible assets (1)

1.08%


0.90%


1.04%


Net interest margin (FTE) (1) (2)

3.36%


3.41%


3.39%


Yield on earning assets (FTE) (1) (2)

3.72%


3.77%


3.70%


Cost of interest-bearing liabilities

0.48%


0.47%


0.41%


Cost of funds

0.38%


0.37%


0.33%


Efficiency ratio (1)

54.38%


55.45%


55.59%


Effective tax rate

30.50%


30.60%


30.50%



Capital ratios

Equity / assets (period end)

11.91%


12.00%


12.44%


Leverage ratio

7.64%


7.73%


8.20%


Tangible equity / tangible assets (period end) (1)

7.22%


7.21%


7.65%


Tangible common equity / tangible assets (period end) (1)

6.69%


6.68%


6.98%



Balances at period end

Loans and Leases:

Commercial real estate

$5,367,291


$5,355,625


$3,949,246


0.2


35.9

Commercial and industrial

3,088,405


3,079,605


2,491,355


0.3


24.0

Commercial leases

195,271


200,350


199,130


-2.5


-1.9

   Commercial loans and leases

8,650,967


8,635,580


6,639,731


0.2


30.3

Direct installment

1,837,395


1,830,206


1,692,638


0.4


8.6

Residential mortgages

1,779,867


1,678,646


1,386,386


6.0


28.4

Indirect installment

1,150,812


1,076,817


974,028


6.9


18.1

Consumer LOC

1,303,223


1,290,053


1,127,002


1.0


15.6

Other

51,182


51,826


53,860


-1.2


-5.0

   Total loans and leases

$14,773,446


$14,563,128


$11,873,645


1.4


24.4


Deposits:

Non-interest bearing deposits

$4,082,145


$3,969,115


$2,911,435


2.8


40.2

Interest bearing demand

7,032,744


6,657,651


5,558,322


5.6


26.5

Savings

2,299,408


2,284,159


1,736,350


0.7


32.4

Certificates of deposit and other time deposits

2,562,587


2,617,637


2,553,629


-2.1


0.4

   Total deposits

$15,976,884


$15,528,562


$12,759,736


2.9


25.2


Average balances

Loans and Leases:

Commercial real estate

$5,343,485


$5,276,960


$3,910,226


1.3


36.7

Commercial and industrial

3,084,005


3,062,936


2,472,612


0.7


24.7

Commercial leases

196,600


201,481


197,907


-2.4


-0.7

   Commercial loans and leases

8,624,090


8,541,377


6,580,745


1.0


31.1

Direct installment

1,834,558


1,807,048


1,687,477


1.5


8.7

Residential mortgages

1,721,162


1,615,438


1,365,253


6.5


26.1

Indirect installment

1,109,047


1,044,870


959,954


6.1


15.5

Consumer LOC

1,295,035


1,281,636


1,121,294


1.0


15.5

Other

57,837


54,759


48,982


5.6


18.1

   Total loans and leases

$14,641,729


$14,345,128


$11,763,705


2.1


24.5


Deposits:

Non-interest bearing deposits

$4,021,023


$3,941,857


$2,886,933


2.0


39.3

Interest bearing demand

6,772,963


6,744,744


5,238,598


0.4


29.3

Savings

2,289,836


2,292,185


1,730,818


-0.1


32.3

Certificates of deposit and other time deposits

2,588,035


2,676,851


2,565,215


-3.3


0.9

   Total deposits

$15,671,857


$15,655,637


$12,421,564


0.1


26.2

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)



For the Nine Months




Ended September 30,


Percent


2016


2015


Variance

Performance ratios





Return on average equity

6.45%


7.81%


Return on average tangible equity (1)

11.91%


14.07%


Return on average tangible common equity (1)

12.26%


14.71%


Return on average assets

0.78%


0.98%


Return on average tangible assets (1)

0.88%


1.08%


Net interest margin (FTE) (1) (2)

3.39%


3.43%


Yield on earning assets (FTE) (1) (2)

3.75%


3.75%


Cost of interest-bearing liabilities

0.48%


0.41%


Cost of funds

0.37%


0.33%


Efficiency ratio (1)

55.36%


56.05%


Effective tax rate

30.69%


30.37%



Capital ratios

Equity / assets (period end)

11.91%


12.44%


Leverage ratio

7.64%


8.20%


Tangible equity / tangible assets (period end) (1)

7.22%


7.65%


Tangible common equity / tangible assets (period end) (1)

6.69%


6.98%



Balances at period end

Loans and Leases:






Commercial real estate

$5,367,291


$3,949,246


35.9

Commercial and industrial

3,088,405


2,491,355


24.0

Commercial leases

195,271


199,130


-1.9

   Commercial loans and leases

8,650,967


6,639,732


30.3

Direct installment

1,837,395


1,692,638


8.6

Residential mortgages

1,779,867


1,386,386


28.4

Indirect installment

1,150,812


974,028


18.1

Consumer LOC

1,303,223


1,127,002


15.6

Other

51,182


53,860


-5.0

   Total loans and leases

$14,773,446


$11,873,646


24.4


Deposits:

Non-interest bearing deposits

$4,082,145


$2,911,435


40.2

Interest bearing demand

7,032,744


5,558,322


26.5

Savings

2,299,408


1,736,350


32.4

Certificates of deposit and other time deposits

2,562,587


2,553,629


0.4

   Total deposits

$15,976,884


$12,759,736


25.2


Average balances

Loans and Leases:

Commercial real estate

$5,161,333


$3,853,653


33.9

Commercial and industrial

2,954,000


2,415,242


22.3

Commercial leases

200,752


187,656


7.0

   Commercial loans and leases

8,316,085


6,456,551


28.8

Direct installment

1,796,790


1,666,837


7.8

Residential mortgages

1,598,782


1,316,934


21.4

Indirect installment

1,053,822


926,614


13.7

Consumer LOC

1,260,936


1,114,905


13.1

Other

52,197


46,389


12.5

   Total loans and leases

$14,078,612


$11,528,230


22.1


Deposits:

Non-interest bearing deposits

$3,804,828


$2,768,012


37.5

Interest bearing demand

6,545,529


4,889,508


33.9

Savings

2,212,213


1,697,732


30.3

Certificates of deposit and other time deposits

2,613,664


2,584,719


1.1

   Total deposits

$15,176,234


$11,939,971


27.1

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)



Percent Variance


3Q16 -


3Q16 -

Asset Quality Data

3Q16


2Q16


3Q15


2Q16


3Q15

Non-Performing Assets

Non-performing loans (3)

   Non-accrual loans

$74,828


$67,475


$47,298


10.9


58.2

   Restructured loans

20,638


22,542


21,221


-8.4


-2.7

      Non-performing loans

95,466


90,017


68,519


6.1


39.3

Other real estate owned (OREO) (4)

40,523


48,344


38,931


-16.2


4.1

   Total non-performing assets

$135,989


$138,361


$107,450


-1.7


26.6


Non-performing loans / total loans and leases

0.65%


0.62%


0.58%


Non-performing loans / total originated loans and

   and leases (5)

0.76%


0.74%


0.63%


Non-performing loans + OREO / total loans and

   leases + OREO

0.92%


0.95%


0.90%


Non-performing loans + OREO / total originated

   loans and leases + OREO (5)

1.08%


1.15%


0.99%


Non-performing assets / total assets

0.63%


0.65%


0.64%



Allowance Rollforward

Allowance for credit losses (originated portfolio) (5)

   Balance at beginning of period

$148,719


$142,220


$124,196


4.6


19.7

   Provision for credit losses

14,072


16,384


11,287


-14.1


24.7

   Net loan charge-offs

(12,277)


(9,885)


(5,864)


24.2


109.4

   Allowance for credit losses (originated portfolio) (5)

150,514


148,719


129,619


1.2


16.1


Allowance for credit losses (acquired portfolio) (6)

   Balance at beginning of period

5,650


5,580


6,945


1.3


-18.6

   Provision for credit losses

567


256


(510)


121.5


-211.2

   Net loan charge-offs

163


(186)


129


-187.6


26.4

   Allowance for credit losses (acquired portfolio) (6)

6,380


5,650


6,564


12.9


-2.8


      Total allowance for credit losses

$156,894


$154,369


$136,183


1.6


15.2


Allowance for credit losses / total loans and leases

1.06%


1.06%


1.15%


Allowance for credit losses (originated loans and leases) /

   total originated loans and leases (5)

1.23%


1.26%


1.22%


Allowance for credit losses (originated loans and leases) /

   total non-performing loans (3)

163.36%


169.89%


194.46%


Net loan charge-offs (annualized) / total average loans

   and leases

0.33%


0.28%


0.19%


Net loan charge-offs on originated loans and leases

   (annualized) / total average originated loans and

   leases (5)

0.41%


0.35%


0.22%



Delinquency - Originated Portfolio (5)

Loans 30-89 days past due

$43,071


$48,706


$43,330


-11.6


-0.6

Loans 90+ days past due

6,906


6,186


6,000


11.6


15.1

Non-accrual loans

71,498


64,998


45,436


10.0


57.4

   Total past due and non-accrual loans

$121,475


$119,890


$94,766


1.3


28.2


Total past due and non-accrual loans / total originated loans

1.00%


1.02%


0.89%



Memo item:

Delinquency - Acquired Portfolio (6) (7)

Loans 30-89 days past due

$29,087


$42,939


$21,604


-32.3


34.6

Loans 90+ days past due

42,584


47,085


28,551


-9.6


49.2

Non-accrual loans

3,330


2,477


1,862


n/m


n/m

   Total past due and non-accrual loans

$75,001


$92,501


$52,017


-18.9


44.2

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)



For the Nine Months




Ended September 30,


Percent

Asset Quality Data

2016


2015


Variance

Non-Performing Assets

Non-performing loans (3)

   Non-accrual loans

$74,828


$47,298


58.2

   Restructured loans

20,638


21,221


-2.7

      Non-performing loans

95,466


68,519


39.3

Other real estate owned (OREO) (4)

40,523


38,931


4.1

   Non-performing loans and OREO

135,989


107,450


26.6

Non-performing investments

0


0


n/m

   Total non-performing assets

$135,989


$107,450


26.6






Non-performing loans / total loans and leases

0.65%


0.58%


Non-performing loans / total originated loans and

   and leases (5)

0.76%


0.63%


Non-performing loans + OREO / total loans and

   leases + OREO

0.92%


0.90%


Non-performing loans + OREO / total originated

   loans and leases + OREO (5)

1.08%


0.99%


Non-performing assets / total assets

0.63%


0.64%



Allowance Rollforward

Allowance for credit losses (originated portfolio) (5)

   Balance at beginning of period

$135,285


$117,952


14.7

   Provision for credit losses

43,296


29,097


48.8

   Net loan charge-offs

(28,067)


(17,430)


61.0

   Allowance for credit losses (originated portfolio) (5)

150,514


129,619


16.1


Allowance for credit losses (acquired portfolio) (6)

   Balance at beginning of period

6,727


7,974


-15.6

   Provision for credit losses

(249)


(1,320)


-81.1

   Net loan charge-offs

(98)


(90)


8.9

   Allowance for credit losses (acquired portfolio) (6)

6,380


6,564


-2.8


      Total allowance for credit losses

$156,894


$136,183


15.2


Allowance for credit losses / total loans and leases

1.06%


1.15%


Allowance for credit losses (originated loans and leases) /

   total originated loans and leases (5)

1.23%


1.22%


Allowance for credit losses (originated loans and leases) /

   total non-performing loans (3)

163.36%


194.46%


Net loan charge-offs (annualized) / total average loans

   and leases

0.27%


0.20%


Net loan charge-offs on originated loans and leases

   (annualized) / total average originated loans and





   leases (5)

0.32%


0.23%



Delinquency - Originated Portfolio (5)

Loans 30-89 days past due

$43,071


$43,330


-0.6

Loans 90+ days past due

6,906


6,000


15.1

Non-accrual loans

71,498


45,436


57.4

   Total past due and non-accrual loans

$121,475


$94,766


28.2


Total past due and non-accrual loans / total originated loans

1.00%


0.89%



Memo item:

Delinquency - Acquired Portfolio (6) (7)

Loans 30-89 days past due

$29,087


$21,604


34.6

Loans 90+ days past due

42,584


28,551


49.2

Non-accrual loans

3,330


1,862


n/m

   Total past due and non-accrual loans

$75,001


$52,017


44.2

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)













3Q16


2Q16








Interest


Average




Interest


Average






Average


Earned


Yield


Average


Earned


Yield






Outstanding


or Paid


or Rate


Outstanding


or Paid


or Rate

Assets















Interest bearing deposits with banks

$140,713


$143


0.40%


$109,432


$97


0.36%

Taxable investment securities  (8)

3,919,203


18,432


1.88%


3,728,873


17,977


1.93%

Non-taxable investment securities  (2)

321,360


3,456


4.30%


297,228


3,266


4.40%

Residential mortgage loans held for sale

22,476


235


4.19%


15,734


191


4.86%

Loans and leases  (2) (9)

14,641,729


155,739


4.23%


14,345,128


152,191


4.27%

   Total Interest Earning Assets  (2)

19,045,481


178,005


3.72%


18,496,395


173,722


3.77%

Cash and due from banks

287,208






284,061





Allowance for loan losses

(158,901)






(150,487)





Premises and equipment

229,133






221,030





Other assets

1,983,235






1,929,414





Total Assets

$21,386,156






$20,780,413





















Liabilities












Deposits:












   Interest-bearing demand

$6,772,963


4,094


0.24%


$6,744,744


4,051


0.24%

   Savings

2,289,836


449


0.08%


2,292,185


465


0.08%

   Certificates and other time

2,588,035


5,934


0.91%


2,676,851


5,908


0.89%

Short-term borrowings

2,303,389


3,607


0.62%


1,716,565


2,559


0.60%

Long-term borrowings

616,141


3,520


2.27%


657,059


3,579


2.19%

      Total Interest Bearing Liabilities  (2)

14,570,364


17,604


0.48%


14,087,404


16,562


0.47%

Non-interest bearing demand deposits

4,021,023






3,941,857





Other liabilities

232,076






218,926





Total Liabilities

18,823,463






18,248,187





Stockholders' equity

2,562,693






2,532,226





Total Liabilities and Stockholders' Equity

$21,386,156






$20,780,413





















Net Interest Earning Assets

$4,475,117






$4,408,991





















Net Interest Income (FTE)



160,401






157,160



Tax Equivalent Adjustment



(2,895)






(2,791)



Net Interest Income



$157,506






$154,369



















Net Interest Spread





3.24%






3.30%

Net Interest Margin  (2)





3.36%






3.41%

 

 

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)




3Q15


Interest


Average


Average


Earned


Yield


Outstanding


or Paid


or Rate

Assets

Interest bearing deposits with banks

$75,208


$30


0.16%

Taxable investment securities  (8)

2,870,378


14,577


2.03%

Non-taxable investment securities  (2)

218,609


2,624


4.80%

Residential mortgage loans held for sale

8,967


74


3.30%

Loans and leases  (2) (9)

11,763,705


121,842


4.11%

   Total Interest Earning Assets  (2)

14,936,867


139,147


3.70%

Cash and due from banks

199,115





Allowance for loan losses

(134,206)





Premises and equipment

162,103





Other assets

1,568,431





Total Assets

$16,732,310






Liabilities

Deposits:

   Interest-bearing demand

$5,238,598


2,241


0.17%

   Savings

1,730,818


198


0.05%

   Certificates and other time

2,565,215


5,509


0.85%

Short-term borrowings

1,546,209


1,786


0.46%

Long-term borrowings

542,720


2,262


1.66%

      Total Interest Bearing Liabilities  (2)

11,623,560


11,996


0.41%

Non-interest bearing demand deposits

2,886,933





Other liabilities

139,774





Total Liabilities

14,650,267





Stockholders' equity

2,082,043





Total Liabilities and Stockholders' Equity

$16,732,310






Net Interest Earning Assets

$3,313,307



Net Interest Income (FTE)

127,151


Tax Equivalent Adjustment

(1,950)


Net Interest Income

$125,201



Net Interest Spread

3.29%

Net Interest Margin  (2)

3.39%

 

 

F.N.B. CORPORATION













(Unaudited)















(Dollars in thousands, except per share data)































For the Nine Months Ended September 30,






2016


2015








Interest


Average




Interest


Average






Average


Earned


Yield


Average


Earned


Yield






Outstanding


or Paid


or Rate


Outstanding


or Paid


or Rate

Assets















Interest bearing deposits with banks

$124,589


$357


0.38%


$75,622


$90


0.16%

Taxable investment securities  (8)

3,635,224


52,901


1.94%


2,847,290


43,257


2.03%

Non-taxable investment securities  (2)

296,860


9,815


4.41%


192,345


7,024


4.87%

Residential mortgage loans held for sale

14,807


504


4.54%


7,298


256


4.68%

Loans and leases (2) (9)

14,078,612


446,366


4.23%


11,528,230


360,925


4.19%

   Total Interest Earning Assets  (2)

18,150,092


509,943


3.75%


14,650,785


411,552


3.75%

Cash and due from banks

273,457






195,583





Allowance for loan losses

(150,807)






(131,465)





Premises and equipment

213,957






166,572





Other assets

1,878,111






1,566,238





Total Assets

$20,364,810






$16,447,713





















Liabilities















Deposits:















   Interest-bearing demand

$6,545,529


11,600


0.24%


$4,889,508


6,082


0.17%

   Savings

2,212,213


1,278


0.08%


1,697,732


563


0.04%

   Certificates and other time

2,613,664


17,509


0.89%


2,584,719


16,388


0.85%

Short-term borrowings

1,861,438


8,527


0.61%


1,759,200


5,348


0.41%

Long-term borrowings

640,474


10,652


2.22%


542,091


6,744


1.66%

      Total Interest Bearing Liabilities  (2)

13,873,318


49,566


0.48%


11,473,250


35,125


0.41%

Non-interest bearing demand deposits

3,804,828






2,768,012





Other liabilities

211,466






143,521





Total Liabilities

17,889,612






14,384,783





Stockholders' equity

2,475,198






2,062,930





Total Liabilities and Stockholders' Equity

$20,364,810






$16,447,713





















Net Interest Earning Assets

$4,276,774






$3,177,535





















Net Interest Income (FTE)



460,377






376,427



Tax Equivalent Adjustment



(8,148)






(5,538)



Net Interest Income



$452,229






$370,889



















Net Interest Spread





3.27%






3.34%

Net Interest Margin  (2)





3.39%






3.43%

 

 

F.N.B. CORPORATION











(Unaudited)













(Dollars in thousands, except per share data)






















NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS






We believe the following non-GAAP financial measures used by F.N.B. Corporation provide information useful to investors in understanding 

F.N.B. Corporation's operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation's peers.  The 

non-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use 

to measure their results of operations.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, F.N.B.

Corporation's reported results prepared in accordance with U.S. GAAP.  The following tables summarize the non-GAAP financial measures 

included in this press release and derived from amounts reported in F.N.B. Corporation's financial statements.
















































3Q16


2Q16


3Q15





Return on average tangible equity:









Net income (annualized)

$207,540


$166,106


$158,907





Amortization of intangibles, net of tax (annualized)

10,970


10,551


6,711










218,510


176,657


165,618



















Average total shareholders' equity

2,562,693


2,532,226


2,082,043





Less:  Average intangibles

(1,093,378)


(1,090,542)


(869,110)










1,469,315


1,441,684


1,212,933



















Return on average tangible equity 

14.87%


12.25%


13.65%



















Return on average tangible common equity:










Net income available to common stockholders (annualized)

$199,543


$158,025


$150,932





Amortization of intangibles, net of tax (annualized)

10,970


10,551


6,711










210,513


168,576


157,643



















Average total stockholders' equity

2,562,693


2,532,226


2,082,043





Less:  Average preferred stockholders' equity

(106,882)


(106,882)


(106,882)





Less:  Average intangibles

(1,093,378)


(1,090,542)


(869,110)










1,362,433


1,334,802


1,106,051



















Return on average tangible common equity

15.45%


12.63%


14.25%



















Return on average tangible assets:










Net income (annualized)

$207,540


$166,106


$158,907





Amortization of intangibles, net of tax (annualized)

10,970


10,551


6,711










218,510


176,657


165,618



















Average total assets

21,386,156


20,780,413


16,732,310





Less:  Average intangibles

(1,093,378)


(1,090,542)


(869,110)










20,292,778


19,689,871


15,863,200



















Return on average tangible assets

1.08%


0.90%


1.04%



















Tangible book value per common share:










Total shareholders' equity

$2,570,580


$2,545,337


$2,094,749





Less:  preferred shareholders' equity

(106,882)


(106,882)


(106,882)





Less:  intangibles

(1,091,876)


(1,094,687)


(873,102)










1,371,822


1,343,768


1,114,765



















Ending shares outstanding

210,224,194


210,120,601


175,363,439



















Tangible book value per common share

$6.53


$6.40


$6.36





 

 

F.N.B. CORPORATION






(Unaudited)







(Dollars in thousands, except per share data)

















For the Nine Months






Ended September 30,






2016


2015

Return on average tangible equity:





Net income (annualized)

$159,757


$161,144

Amortization of intangibles, net of tax (annualized)

9,978


6,826






169,735


167,970









Average total shareholders' equity

2,475,198


2,062,929

Less:  Average intangibles

(1,049,998)


(868,843)






1,425,200


1,194,086









Return on average tangible equity

11.91%


14.07%









Return on average tangible common equity:




Net income available to common stockholders (annualized)

$151,703


$153,082

Amortization of intangibles, net of tax (annualized)

9,978


6,826






161,681


159,908









Average total stockholders' equity

2,475,198


2,062,929

Less:  Average preferred stockholders' equity

(106,882)


(106,882)

Less:  Average intangibles

(1,049,998)


(868,843)






1,318,318


1,087,204









Return on average tangible common equity

12.26%


14.71%









Return on average tangible assets:




Net income (annualized)



$159,757


$161,144

Amortization of intangibles, net of tax (annualized)

9,978


6,826






169,735


167,970









Average total assets

20,364,810


16,447,712

Less:  Average intangibles

(1,049,998)


(868,843)






19,314,812


15,578,869









Return on average tangible assets

0.88%


1.08%









Tangible book value per common share:




Total shareholders' equity

$2,570,580


$2,094,749

Less:  preferred shareholders' equity

(106,882)


(106,882)

Less:  intangibles

(1,091,876)


(873,102)






1,371,822


1,114,765









Ending shares outstanding

210,224,194


175,363,439









Tangible book value per common share

$6.53


$6.36

 

 

F.N.B. CORPORATION








(Unaudited)









(Dollars in thousands)











































3Q16


2Q16


3Q15

Tangible equity / tangible assets (period end):






Total shareholders' equity

$2,570,580


$2,545,337


$2,094,749

Less:  intangibles

(1,091,876)


(1,094,687)


(873,102)






1,478,704


1,450,650


1,221,647











Total assets

21,583,914


21,214,967


16,836,073

Less:  intangibles

(1,091,876)


(1,094,687)


(873,102)






20,492,038


20,120,280


15,962,971











Tangible equity / tangible assets (period end)

7.22%


7.21%


7.65%











Tangible common equity / tangible assets (period end):






Total stockholders' equity

$2,570,580


$2,545,337


$2,094,749

Less:  preferred stockholders' equity

(106,882)


(106,882)


(106,882)

Less:  intangibles

(1,091,876)


(1,094,687)


(873,102)






1,371,822


1,343,768


1,114,765











Total assets

21,583,914


21,214,967


16,836,073

Less:  intangibles

(1,091,876)


(1,094,687)


(873,102)






20,492,038


20,120,280


15,962,971











Tangible common equity / tangible assets (period end)

6.69%


6.68%


6.98%











KEY PERFORMANCE INDICATORS

















Efficiency Ratio (FTE):








Total non-interest expense

$121,050


$129,629


$98,149

Less:  amortization of intangibles

(3,571)


(3,388)


(2,034)

Less:  OREO expense

(1,172)


(172)


(1,299)

Less:  merger costs

(299)


(10,551)


(1,312)

Less:  impairment charge on other assets

0


0


0

  Adjusted non-interest expense

116,008


115,520


93,503











Net interest income

157,506


154,369


125,201

Taxable equivalent adjustment

2,895


2,791


1,950

Non-interest income

53,240


51,411


41,359

Less:  net securities gains

(299)


(226)


(314)

Less:  gain on redemption of trust preferred securities

0


0


0

  Adjusted net interest income + non-interest income

213,342


208,344


168,197











Efficiency ratio (FTE)

54.38%


55.45%


55.59%











Core Net Interest Margin:








Net interest margin (FTE) (2)

3.36%


3.41%


3.39%

Accretable yield adjustment

-0.04%


-0.06%


-0.01%

Core net interest margin (FTE) (2)

3.32%


3.35%


3.38%

 

 

F.N.B. CORPORATION














(Unaudited)

(Dollars in thousands)
























For the Nine Months
















Ended September 30,
















2016


2015











KEY PERFORMANCE INDICATORS































Efficiency Ratio (FTE):














Total non-interest expense

$387,327


$289,303











Less:  amortization of intangibles

(9,608)


(6,148)











Less:  OREO expense

(2,752)


(3,788)











Less:  merger costs

(35,790)


(1,683)











Less:  impairment charge on other assets

(2,585)


0











  Adjusted non-interest expense

336,592


277,684





























Net interest income

452,229


370,889











Taxable equivalent adjustment

8,148


5,539











Non-interest income

150,695


119,293











Less:  net securities gains

(596)


(319)











Less:  OTTI

0


0











Less:  gain on redemption of trust preferred securities

(2,422)


0











  Adjusted net interest income + non-interest income

608,054


495,402





























Efficiency ratio (FTE)

55.36%


56.05%





























Core Net Interest Margin:














Net interest margin (FTE) (2)

3.39%


3.43%











Accretable yield adjustment

-0.03%


-0.02%











Core net interest margin (FTE) (2)

3.36%


3.41%





























(1)

See non-GAAP financial measures section of this Press Release for additional information relating to the calculation of this item.

(2)

The net interest margin, core net interest margin and yield on earning assets (all non-GAAP measures) are presented on a fully taxable equivalent (FTE) basis,
which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35% for each period presented. 

(3)

Does not include loans acquired at fair value ("acquired portfolio").

(4)

Includes all other real estate owned, including those balances acquired through business combinations that have been in acquired loans prior to foreclosure.

(5)

"Originated Portfolio" or "Originated Loans and Leases" equals loans and leases not included by definition in the Acquired Portfolio.

(6)

"Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805 which was effective January 1, 2009.


The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered


accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their


expected cash flows.  Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first


applied against the non-accretable difference established in purchase accounting and then to any allowance for loan losses recognized subsequent to acquisition.

(7)

Represents contractual balances.

(8)

The average balances and yields earned on taxable investment securities are based on historical cost.

(9)

Average balances for loans include non-accrual loans.  Loans and leases consist of average total loans and leases less average unearned income.  The amount 


of loan fees included in interest income is immaterial.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnb-corporation-reports-third-quarter-2016-earnings-300347880.html

SOURCE F.N.B. Corporation