Top-News
Donnerstag,
19.10.2017 12:00
von
PR Newswire
| Aufrufe: 140
F.N.B. Corporation Reports Third Quarter 2017 Earnings
Eine Tageszeitung (Symbolbild).
pixabay.com
PR Newswire
PITTSBURGH, Oct. 19, 2017
PITTSBURGH, Oct. 19, 2017 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) reported earnings for the third quarter of 2017 with net income available to common stockholders of $75.7 million, or $0.23 per diluted common share. Comparatively, second quarter of 2017 net income available to common stockholders totaled $72.4 million, or $0.22 per diluted common share, and third quarter of 2016 net income available to common stockholders totaled $50.2 million, or $0.24 per diluted common share.
Third quarter operating net income per diluted common share (non-GAAP) was $0.24, which excludes the after-tax impact of merger-related expenses of $0.9 million. Comparatively, second quarter operating net income per diluted common share was $0.23, excluding the after-tax impact of $0.9 million of merger-related expenses, and third quarter of 2016 operating net income per diluted common share was $0.24, excluding the after-tax impact of $0.2 million of merger-related expenses.
"FNB delivered solid performance in the third quarter resulting in record revenue and record net income," said Vincent J. Delie Jr., President and Chief Executive Officer. "We are pleased with the growth in loans and deposits, as well as our ability to effectively manage expenses. We are also pleased with the results of several of our fee-based businesses and remain focused on our revenue growth initiatives to deliver increased value for our shareholders."
Third Quarter 2017 Highlights
(All comparisons refer to the second quarter of 2017, except as noted)
- Growth in total average loans was $293 million, or 5.7% annualized, with average commercial loan growth of $125 million, or 3.9% annualized, and average consumer loan growth of $178 million, or 9.4% annualized.
- Average total deposits increased $41 million, or 0.8% annualized, including an increase in average non-interest bearing deposits of $61 million, partially offset by a decline in average interest-bearing deposits of $34 million.
- The loan to deposit ratio ended September 30, 2017 at 94.9%, compared to 97.5% at June 30, 2017, primarily due to annualized total deposit growth of 16.5%.
- The net interest margin (FTE) (non-GAAP) expanded 2 basis points to 3.44% from 3.42%, reflecting $1.7 million of increased incremental purchase accounting accretion and $3.2 million of increased cash recoveries relative to the second quarter.
- Total revenue increased 2.4% to $291 million, reflecting a 3.1% increase in net interest income and stable non-interest income.
- Increased non-interest income from mortgage banking, insurance and wealth management was offset by a decrease in capital markets revenue.
- The efficiency ratio on an operating basis (non-GAAP) improved to 53.1%, compared to 54.3% in the prior quarter, due to increased total revenue and flat non-interest expense.
- Annualized net charge-offs were 0.24% of total average loans, compared to 0.23% in the second quarter of 2017, and 0.33% in the year-ago quarter.
The tangible common equity to tangible assets ratio (non-GAAP) increased four basis points to 6.87% at September 30, 2017, compared to 6.83% at June 30, 2017. The tangible book value per common share (non-GAAP) was $6.12 at September 30, 2017, an increase of $0.12 from June 30, 2017.
Non-GAAP measures referenced in this release are 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. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release. "Incremental purchase accounting accretion" refers to the difference between total accretion and the estimated coupon interest income on acquired loans. "Organic growth" refers to growth excluding the benefit of initial balances from acquisitions.
| Quarterly Results Summary | | 3Q17 | | 2Q17 | | 3Q16 | ||||||
| Reported results | | | | | | | ||||||
| Net income available to common stockholders (millions) | | $ | 75.7 | | | $ | 72.4 | | | $ | 50.2 | |
| Net income per diluted common share | | $ | 0.23 | | | $ | 0.22 | | | $ | 0.24 | |
| Book value per common share (period-end) | | $ | 13.39 | | | $ | 13.26 | | | $ | 11.72 | |
| Operating results (non-GAAP) | | | | | | | ||||||
| Operating net income available to common stockholders (millions) | | $ | 76.6 | | | $ | 73.3 | | | $ | 50.4 | |
| Operating net income per diluted common share | | $ | 0.24 | | | $ | 0.23 | | | $ | 0.24 | |
| Tangible common equity to tangible assets (period-end) | | 6.87 | % | | 6.83 | % | | 6.69 | % | |||
| Tangible book value per common share (period-end) | | $ | 6.12 | | | $ | 6.00 | | | $ | 6.53 | |
| Average diluted common shares outstanding (thousands) | | 324,905 | | | 324,868 | | | 211,791 | | |||
| Significant items influencing earnings1 (millions) | | | | | | | ||||||
| Pre-tax merger-related expenses | | $ | (1.4) | | | $ | (1.4) | | | $ | (0.3) | |
| After-tax impact of merger-related expenses | | $ | (0.9) | | | $ | (0.9) | | | $ | (0.2) | |
| (1) Favorable (unfavorable) impact on earnings | ||||||||||||
Third Quarter 2017 Results – Comparison to Prior Quarter
Net interest income totaled $225.2 million, increasing $6.8 million or 3.1%. The net interest margin (FTE) (non-GAAP) expanded two basis points to 3.44% and included $2.2 million of incremental purchase accounting accretion and $4.3 million of cash recoveries, compared to $0.5 million and $1.1 million, respectively, in the prior quarter. Total average earning assets increased $488 million, or 1.9%, due to average loan growth of $293 million and a $118 million increase in average securities.
Average loans totaled $20.7 billion and increased $293 million, or 5.7% annualized, reflecting solid loan growth in the commercial and consumer portfolios. Average commercial loan growth totaled $125 million, or 3.9% annualized, primarily due to origination volume in the Pittsburgh, Baltimore and Cleveland markets. Average consumer loan growth was $178 million, or 9.4% annualized, led by continued growth in indirect auto loans and residential mortgage loans.
Average deposits totaled $21.2 billion and increased $41 million, or 0.8% annualized, due to growth in non-interest bearing deposits, which was partially offset by decreased savings and interest checking balances. The loan to deposit ratio ended September 30, 2017 at 94.9%, compared to 97.5% at June 30, 2017, primarily attributable to growth in customer-based interest checking and time deposit balances. The growth reflects heightened deposit gathering efforts during the third quarter focused on attracting new customer relationships and deepening relationships with existing customers through internal lead generation efforts.
Non-interest income totaled $66.2 million, consistent with the prior quarter, and included increases in mortgage banking, insurance and wealth management, as well as $2.3 million of additional securities gains. The increases were offset by a $2.2 million decrease in capital markets revenue driven by lower activity compared to the prior quarter.
Non-interest expense totaled $163.7 million, essentially flat compared to the prior quarter. Both periods included $1.4 million of merger-related expenses. The $2.5 million decrease in salaries and employee benefits was offset by $1.0 million of higher occupancy and equipment expense, increased outside services and $0.4 million of increased other real estate owned expenses. The efficiency ratio (non-GAAP) improved to 53.1%, compared to 54.3%.
The ratio of non-performing loans and OREO to total loans and OREO improved 8 basis points to 0.70%. For the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO improved 17 basis points to 0.91%. Total delinquency remains at satisfactory levels, and total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans, improved 8 basis points to 0.91%, compared to 0.99% at June 30, 2017.
Net charge-offs totaled $12.5 million, or 0.24% annualized of total average loans, compared to $11.8 million, or 0.23% annualized in the prior quarter. For the originated portfolio, net charge-offs were $13.0 million, or 0.37% annualized of total average originated loans, compared to $12.7 million or 0.38% annualized. The ratio of the allowance for loan losses to total loans and leases increased to 0.82% at September 30, 2017, from 0.81% at June 30, 2017. For the originated portfolio, the allowance for loan losses to total originated loans was 1.12%, compared to 1.15% at June 30, 2017. The total provision for loan losses totaled $16.8 million in both periods.
September 30, 2017 Year-To-Date Results – Comparison to Prior Year-To-Date Period
Net interest income totaled $616.4 million, increasing $164.2 million, or 36.3%, reflecting average earning asset growth of $6.6 billion, or 36.1%, due to organic growth and the benefit of acquisitions. The net interest margin (FTE) (non-GAAP) expanded 2 basis points to 3.41% and included $2.0 million of higher incremental purchase accounting accretion and $0.7 million of higher cash recoveries compared to the first nine months of 2016.
Average loans totaled $19.1 billion, an increase of $5.0 billion, or 35.6%, due to the benefit from continued organic loan growth and acquired balances. Organic growth in total average loans equaled $907 million, or 6.3%. Total average organic consumer loan growth of $618 million, or 10.7%, was led by strong growth in residential mortgage and indirect auto loans. Organic growth in average commercial loans totaled $299 million, or 3.5%. Organic commercial loan growth for the nine months ended September 30, 2017, compared to the year-ago period was impacted by normal attrition related to the acquired commercial portfolio. Average deposits totaled $19.8 billion and increased $4.7 billion, or 30.8%, due to the benefit of acquired balances and average organic growth of $315 million or 2.0%. On an organic basis, average total transaction deposits increased $489 million or 3.8%.
Non-interest income totaled $187.3 million, increasing $36.7 million, or 24.3%. Non-interest income primarily reflects the benefit of acquisitions and continued expansion of our fee-based businesses of capital markets, mortgage banking, wealth management and insurance.
Non-interest expense totaled $515.0 million, increasing $127.7 million, or 33.0%. The first nine months of 2017 included merger-related expenses of $55.5 million, compared to $35.8 million in the first nine months of 2016. Excluding merger-related expenses, total non-interest expense increased $108.0 million, or 30.7%, with the increase primarily attributable to the expanded operations from acquisitions. The efficiency ratio (non-GAAP) was 54.7%, compared to 55.4% in the first nine months of 2016.
Credit quality results remained at satisfactory levels. For the originated portfolio, non-performing loans and OREO to total loans and OREO was 0.91%, compared to 1.08%. Total originated delinquency was 0.91% at September 30, 2017, a decrease of 9 basis points from 1.00% at September 30, 2016.
Net charge-offs for the first nine months of 2017 totaled $32.4 million, or 0.23% annualized of total average loans, compared to 0.27% annualized. Net originated charge-offs were 0.33% annualized of total average originated loans, compared to 0.32% annualized. For the originated portfolio, the allowance for loan losses to total originated loans was 1.12%, compared to 1.23% at September 30, 2016. The ratio of the allowance for loan losses to total loans decreased 24 basis points to 0.82%, with the decline due to acquired loan balances which were initially recorded at fair value without a corresponding allowance for loan losses in accordance with accounting for business combinations. The total provision for loan losses was $44.4 million, compared to $43.0 million in the prior year.
Werbung
Mehr Nachrichten zur FNB Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
-1
Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.
