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F.N.B. Corporation Reports Full Year and Fourth Quarter 2013 Results



     F.N.B. Corporation Reports Full Year and Fourth Quarter 2013 Results

PR Newswire

HERMITAGE, Pa., Jan. 21, 2014

HERMITAGE, Pa., Jan. 21, 2014 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB)
today reported full year and fourth quarter of 2013 results.  Net income
available to common shareholders for the full year of 2013 totaled $117.8
million, or $0.80 per diluted common share, compared to net income of $110.4
million, or $0.79 per diluted common share in 2012.  On an operating basis[1],
net income available to common shareholders for the full year of 2013 totaled
$123.5 million, or $0.84 per diluted common share, compared to full year 2012
net income of $117.8 million, or $0.84 per diluted common share. 

Fourth quarter of 2013 net income available to common shareholders totaled
$28.4 million, or $0.18 per diluted common share, compared to third quarter of
2013 net income of $31.6 million, or $0.22 per diluted common share and fourth
quarter of 2012 net income of $29.0 million, or $0.21 per diluted common
share.  On an operating basis^1, fourth quarter of 2013 operating net income
available to common shareholders was $32.5 million, or $0.21 per diluted
common share, compared to third quarter of 2013 operating net income of $32.2
million, or $0.22 per diluted common share, and fourth quarter of 2012
operating net income of $32.1 million or $0.23 per diluted common share.

Vincent J. Delie, President and Chief Executive Officer, commented, "FNB 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 several strategic company
milestones.  These accomplishments will mark 2013 as a transformational year. 
As we enter 2014, we have an expanded footprint in Baltimore, Maryland 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 FNB is better positioned than
ever for the future." 

 

Full Year Results Summary                                   2013    2012
Reported Results
Net income available to common shareholders ($ in millions) $117.8  $110.4
Net income per diluted common share                         $0.80   $0.79
Operating Results (Non-GAAP)^1
Net income available to common shareholders ($ in millions) $123.5  $117.8
Net income per diluted common share                         $0.84   $0.84
Average Diluted Shares Outstanding (in 000's)               147,810 140,640

 

Quarterly Results Summary                              4Q13    3Q13    4Q12
Reported Results
Net income available to common shareholders ($ in      $28.4   $31.6   $29.0
millions)
Net income per diluted common share                    $0.18   $0.22   $0.21
Operating Results (Non-GAAP)^1
Net income available to common shareholders ($ in      $32.5   $32.2   $32.1
millions)
Net income per diluted common share                    $0.21   $0.22   $0.23
Average Diluted Shares Outstanding (in 000's)          157,858 146,446 140,923

 

Fourth Quarter 2013 Highlights

  o Loan growth momentum continued, with annualized average organic loan
    growth on a linked-quarter basis of $129 million or 5.9% annualized.  
  o 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 December 31, 2013, up
    from 74% at December 31, 2012.
  o The net interest margin expanded to 3.67% from 3.64% in the prior
    quarter. 
  o Credit quality metrics improved and reflect continued solid performance. 
    For the originated portfolio, non-performing loans and OREO to total loans
    and OREO improved 5 basis points to 1.44%, reflecting a $6.7 million, or
    10.2%, reduction in non-accrual loan levels.  Net charge-offs were 0.30%
    annualized of total average originated loans, compared to 0.26% annualized
    in the prior quarter.
  o The PVF Capital Corp. (PVFC) acquisition was completed on October 12,
    2013.
  o F.N.B. Corporation completed a capital offering, raising net proceeds of
    $161.3 million by issuing preferred and common equity through a
    comprehensive capital action plan to proactively position F.N.B. for Basel
    III implementation, including the redemption of certain trust preferred
    securities, and to support future growth opportunities.

Fourth Quarter 2013 Results – Comparison to Prior Quarter
(All comparisons refer to the third quarter of 2013, except as noted)

Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $108.7
million, increasing $7.6 million or 7.5%.  The net interest margin of 3.67%
improved 3 basis points from the prior quarter and included a $1.7 million, or
6 basis point, benefit from additional accretable yield resulting from better
than expected cash flows on acquired loans.  The October 2013 capital raise
resulted in a temporary increase in short-term interest bearing cash balances,
narrowing the fourth quarter net interest margin by 3 basis points.  The
majority of these cash balances were deployed by December 31, 2013 for the
redemption of $115 million in trust preferred securities.

Average loans totaled $9.3 billion and increased $593 million, or 6.8%,
reflecting loans acquired from the PVFC acquisition ($463 million) and
annualized organic loan growth of $129 million or 5.9%.  The fourth quarter
marks the eighteenth consecutive linked-quarter of organic growth in total
loans.  Organic growth in average loans reflects continued positive results in
both the commercial and consumer portfolios, with organic growth in the
commercial portfolio of $52.6 million, or 4.4% annualized, and consumer loan
organic growth (consisting of direct, consumer lines of credit and indirect
loans) of $99.6 million or 13.8% annualized.  The primary contributor to the
organic consumer loan growth was $74.4 million of growth in home
equity-related loans (direct and consumer lines of credit loans), of which 69%
of the new loan volume represents a first lien position.

Average deposits and customer repurchase agreements totaled $11.1 billion and
increased $710 million, or 6.8%, due to deposits acquired from the PVFC
acquisition ($639 million) and annualized organic growth of $71.3 million or
2.7%.  Organic growth in lower-cost transaction deposit accounts and customer
repurchase agreements continued as these average balances grew $137.7 million
or 6.8% annualized.  Partially offsetting the transaction deposit growth was a
continuation of the planned decline in time deposits due to FNB's liquidity
position.  In addition, FNB's funding remains predominantly customer-based,
with total customer-based funding representing 97% of total deposits and
borrowings.  Loans as a percentage of total deposits and customer repurchase
agreements were 86%.

Non-Interest Income
Non-interest income totaled $32.7 million, decreasing $0.2 million, or 0.5%,
reflecting consistent results across most fee income categories which was
offset by lower mortgage banking income.  Wealth management revenues increased
$0.5 million, or 7.3%, due to continued organic growth given heightened
cross-selling efforts and improved market conditions.  Non-interest income was
23% of total revenue.

Non-Interest Expense
Non-interest expense totaled $92.1 million, and included merger-related costs
of $4.0 million and a loss on the early extinguishment of debt with trust
preferred securities redemption costs of $2.2 million.  When excluding these
non-operating costs and the $0.9 million in merger costs in the prior quarter,
non-interest expense increased $3.6 million or 4.4%.  The increase primarily
reflects the additional operating costs of PVFC during the fourth quarter.  In
addition, salaries and employee benefits included higher employee medical
insurance of $1.1 million due to elevated claims experienced during the
quarter, other real estate owned (OREO) expense was elevated by $1.7 million
primarily due to the write-down of one property and amortization of
intangibles increased following the addition of PVFC.  The efficiency ratio
was improved to 57.8% from 59.7%.

Credit Quality
Overall credit quality metrics improved and reflect continued solid
performance.  The ratio of non-performing loans and OREO to total loans and
OREO improved 9 basis points to 1.24%. For the originated portfolio, the ratio
of non-performing loans and OREO to total loans and OREO was 1.44%, a 5 basis
point improvement reflecting a $6.7 million, or 10.2%, reduction of
non-accrual loans.  The positive movement in non-accrual levels contributed to
a $9.6 million, or 16 basis point, improvement in total originated delinquency
(total past due and non-accrual loans) to total originated loans, which was
1.28% at December 31, 2013.

The provision for loan losses totaled $8.4 million, compared to $7.3 million
in the prior quarter.  The increase reflects lower provision for loan losses
for the originated portfolio given the continued improvement in credit quality
offset by an increased provision in the acquired portfolio related to certain
small business pools and the exit of lower-quality credits.  Net charge-offs
for the fourth quarter totaled $7.6 million, or 0.32% annualized, compared to
$5.5 million or 0.25% annualized. For the originated portfolio, net
charge-offs were 0.30% annualized compared to 0.26% annualized of average
originated loans.  Full year 2013 net charges-offs improved 7 basis points to
0.28% of total average loans for the full year of 2012.  The ratio of the
allowance for loan losses to total originated loans was 1.29% at December 31,
2013, compared to 1.34% at September 30, 2013, with the change directionally
consistent with the improved performance of the originated portfolio.  The
ratio of the allowance for loan losses to total non-performing loans was
135.42%, compared to 127.37%.

Fourth Quarter 2013 Results – Comparison to Prior-Year Quarter
(All comparisons refer to the fourth quarter of 2012, except as noted)

Fourth quarter of 2013 results include the impact from the Annapolis Bancorp,
Inc. (ANNB) and PVFC acquisitions completed on April 6, 2013 and October 12,
2013, respectively.

Net Interest Income/Loans/Deposits
Net interest income on a fully taxable equivalent basis totaled $108.7
million, increasing $12.9 million or 13.5%. The net interest margin expanded 1
basis point to 3.67%, reflecting solid loan and lower-cost transaction deposit
growth.  Average earning assets grew $1.4 billion, or 13.0%, through solid
organic loan growth and the addition of ANNB and PVFC.

Average loans totaled $9.3 billion and increased $1.3 billion, or 16.1%,
reflecting organic loan growth of $572 million, or 7.1%, and loans added in
the ANNB and PVFC acquisitions.  Growth in the commercial portfolio continued,
with these average balances increasing organically $282.7 million or 6.5%.
Average organic consumer loan growth (consisting of direct, consumer lines of
credit and indirect loans) was also strong with these balances increasing
$384.8 million, or 15.2%, driven by growth in home equity-related loans
originated across FNB's footprint.

Total average deposits and customer repurchase agreements totaled $11.1
billion and increased $1.1 billion, or 11.4%, reflecting organic growth of
$141.3, or 1.4%, and balances added in the ANNB and PVFC acquisitions.
 Organic growth in lower cost transaction deposit accounts and customer
repurchase agreements was strong, growing $461.1 million, or 6.2%, through new
account acquisition and customers maintaining higher average balances.
 Average non-interest bearing deposits grew organically $259.5 million or
14.9%.

Non-Interest Income
Non-interest income totaled $32.7 million, increasing $0.6 million, or 1.8%,
reflecting the benefit of the ANNB and PVFC acquisitions and solid organic
growth in fee-based business units. Securities commissions and fees increased
$0.7 million, or 29.7%, and trust income increased $0.4 million or 11.4%.  The
fourth quarter of 2013 was negatively impacted by $2.7 million in lower
customer-related interchange service charges due to the Durbin Amendment
restrictions.  The prior-year quarter included a $1.7 million non-recurring
accrual for expected losses on asset disposals related to branch
consolidations. 

Non-Interest Expense
Non-interest expense totaled $92.1 million, increasing $15.5 million or 20.3%.
 The fourth quarter of 2013 included merger-related costs of $4.0 million and
trust preferred securities redemption costs of $2.2 million.  The fourth
quarter of 2012 included $3.0 million in litigation costs to establish a
settlement fund.  Absent these items, the year-over-year increase in
non-interest expense primarily reflects the additional operating costs related
to the ANNB and PVFC acquisitions.

Credit Quality
Credit quality results reflect improvement over the prior-year quarter.  The
ratio of non-performing loans and OREO to total loans and OREO improved 18
basis points to 1.24%.  For the originated portfolio, the ratio of
non-performing loans and OREO to total loans and OREO was 1.44%, a 16 basis
point improvement, reflecting the 11.0% reduction in non-accrual loans.  Total
delinquency (total past due and non-accrual loans) improved $14.8 million or
36 basis points to 1.28% at December 31, 2013.

The provision for loan losses totaled $8.4 million, compared to $9.3 million
in the prior-year quarter.  Net charge-offs for the fourth quarter totaled
$7.6 million, or 0.32% annualized of total average loans, compared to $7.6
million or 0.38% annualized.  For the originated portfolio, net charge-offs of
$6.1 million improved by $1.6 million, or 15 basis points, to 0.30% annualized
of total average originated loans.  The ratio of the allowance for loan losses
to total originated loans was 1.29% at December 31, 2013, compared to 1.38% at
December 31, 2012, with the change directionally consistent with the improved
performance of the portfolio.

Full Year 2013 Results
(All comparisons refer to the prior full year, except as noted)

Full year 2013 results include the impact from the ANNB and PVFC acquisitions
completed on April 6, 2013 and October 12, 2013, respectively

Net interest income on a fully taxable equivalent basis totaled $403.0 million
and grew $22.8 million or 6.0%.  The net interest margin of 3.65% compares to
3.73%, with 3 basis points of the narrowing due to $2.6 million higher
additional accretable yield on acquired loans in the prior year.  The
remaining narrowing primarily reflects lower yields on earning assets in
response to the extended low interest rate environment.  This is partially
offset by the benefits to the net interest margin from strong growth in
average loans, as well as lower cost transaction deposits and customer
repurchase agreements and a lower cost of funds.  Average earning assets grew
$842.5 million, or 8.3%, reflecting strong organic loan growth and the ANNB
and PVFC acquisitions.

Average loans totaled $8.7 billion and increased $807.8 million, or 10.3%,
reflecting solid organic loan growth of $498.9 million, or 6.3%, and loans
added in the ANNB and PVFC acquisitions.  Total average deposits and customer
repurchase agreements totaled $10.5 billion and increased $659.7 million, or
6.7%, reflecting organic growth and balances added in the ANNB and PVFC
acquisitions.  Organic growth in lower cost transaction deposit accounts and
customer repurchase agreements was strong, growing $562.2 million or 7.9%.
 Growth in non-interest bearing deposits was a significant contributor, with
average organic growth of $273.2 million or 16.9%.

Non-interest income totaled $135.8 million, increasing $4.5 million or 3.4%. 
Full-year 2013 non-interest income was negatively impacted by the $5.3 million
in lower customer-related service charges attributable to the Durbin Amendment
restrictions that became effective for FNB on July 1, 2013.  Non-interest
income benefited from the acquisitions and positive results from improved
organic revenue growth results across several business lines, including wealth
management and insurance, due to the implementation of revenue-enhancing
strategies and initiatives.  Wealth management revenue increased $4.4 million,
or 18.6%, driven by cross-selling efforts with internal business partners,
added sales professionals and improved market conditions.  The 2013 fiscal
year also included a $1.6 million gain on the extinguishment of debt, while
the 2012 fiscal year included a $1.4 million gain on the sale of a building.

Non-interest expense totaled $338.2 million, an increase of $19.6 million, or
6.1%, primarily due to adding ANNB and PVFC operating costs and higher FDIC
insurance expense of $2.1 million or 26.2%.

Credit quality results for full year of 2013 continued to trend positively
resulting in year-over-year improvements.  Full year net charge-offs totaled
$24.7 million, or 0.28% annualized, improved from $27.6 million or 0.35%
annualized.  The full year provision for loan losses of $31.1 million was
consistent with the prior-year level.

Income Taxes
The effective tax rate for the full year 2013 reflects the benefit of $1.4
million of tax credits realized on the prior-year income tax return.

Capital Position
Capital levels at December 31, 2013 are strengthened following the capital
actions during the fourth quarter of 2013.  During the fourth quarter, the
Corporation raised $161.3 million in capital, through the issuance of 4.7
million shares of common stock ($54.4 million in net proceeds) and 4.4 million
depository shares of non-cumulative perpetual preferred stock ($106.9 million
in net proceeds).  A portion of the proceeds were deployed during the quarter
to redeem $115.0 million in trust preferred securities, with an additional
$16.5 million expected to be redeemed in the first quarter of 2014.

The Corporation's capital levels at December 31, 2013 continue to exceed
federal bank regulatory agency "well capitalized" thresholds. At December 31,
2013, the estimated total risk-based capital ratio was 12.2%, the estimated
tier 1 risk-based capital ratio was 10.8% and the estimated leverage ratio was
8.8%.

At December 31, 2013, the tangible common equity to tangible assets ratio
(non-GAAP measure) increased to 6.71% compared to 6.09% at September 30, 2013
and the tangible common book value per share (non-GAAP measure) increased to
$5.38 from $5.04 at September 30, 2013.  The dividend payout ratios for the
fourth quarter of 2013 and full year of 2013 were 68% and 60%, respectively.

Conference Call
F.N.B. Corporation will host its quarterly conference call to discuss fourth
quarter and full year 2013 financial results on Wednesday, January 22, 2014 at
10:00 a.m. Eastern Time. Participating callers may access the call by dialing
(888) 500-6950 or (719) 325-2491 for international callers; the confirmation
number is 3658778.  The Webcast and presentation materials may be accessed
through the "Shareholder and Investor Relations" section of the Corporation's
Web site at www.fnbcorporation.com.

A replay of the call will be available from 1:00 p.m. Eastern Time the day of
the call until midnight Eastern Time on Wednesday, January 29, 2014.  The
replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for
international callers; the confirmation number is 3658778. The call transcript
and Webcast will be available on 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 Hermitage, Pennsylvania, is a
regional diversified financial services company operating in six states and
three major metropolitan areas including Pittsburgh, PA, where it holds the
number three retail deposit market share, Baltimore, MD and Cleveland, OH. The
Company has total assets of $13.6 billion and more than 265 banking offices
throughout Pennsylvania, Ohio, West Virginia and Maryland. F.N.B. 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. Commercial banking solutions
include corporate banking, small business banking, investment real estate
financing, asset based lending, 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. F.N.B.'s wealth
management services include asset management, private banking and insurance.
The Company also operates Regency Finance Company, which has more than 70
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 SmallCap 600 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 www.fnbcorporation.com.

Cautionary Statement Regarding Forward-looking Information
We make statements in this press release and related conference call, and may
from time to time make other statements, regarding our outlook for earnings,
revenues, expenses, capital levels, liquidity levels, asset levels, asset
quality and other matters regarding or affecting F.N.B. Corporation and its
future business and operations that are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act.  Forward-looking
statements are typically identified by words such as "believe," "plan,"
"expect," "anticipate," "see," "look," "intend," "outlook," "project,"
"forecast," "estimate," "goal," "will," "should" and other similar words and
expressions.  Forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which change over time. 

Forward-looking statements speak only as of the date made.  We do not assume
any duty and do not undertake to update forward-looking statements.  Actual
results or future events could differ, possibly materially, from those
anticipated in forward-looking statements, as well as from historical
performance.

Our forward-looking statements are subject to the following principal risks
and uncertainties:

  o Our businesses, financial results and balance sheet values are affected by
    business and economic conditions, including the following:

       o Changes in interest rates and valuations in debt, equity and other
         financial markets.
       o Disruptions in the liquidity and other functioning of U.S. and global
         financial markets.
       o The impact on federal regulated agencies that have oversight or
         review of F.N.B. Corporation's business and securities activities.
       o Actions by the Federal Reserve, U.S. Treasury and other government
         agencies, including those that impact money supply and market
         interest rates.
       o Changes in customers', suppliers' and other counterparties'
         performance and creditworthiness which adversely affect loan
         utilization rates, delinquencies, defaults and counterparty ability
         to meet credit and other obligations.
       o Slowing or reversal of the current moderate economic recovery and
         persistence or worsening levels of unemployment.
       o Changes in customer preferences and behavior, whether due to changing
         business and economic conditions, legislative and regulatory
         initiatives, or other factors. 

  o Legal and regulatory developments could affect our ability to operate our
    businesses, financial condition, results of operations, competitive
    position, reputation, or pursuit of attractive acquisition opportunities. 
    Reputational impacts could affect matters such as business generation and
    retention, liquidity, funding, and ability to attract and retain
    management.  These developments could include:

       o Changes resulting from legislative and regulatory reforms, including
         broad-based restructuring of financial industry regulation; changes
         to laws and regulations involving tax, pension, bankruptcy, consumer
         protection, and other industry aspects; and changes in accounting
         policies and principles.  We will continue to be impacted by
         extensive reforms provided for in the Dodd-Frank Wall Street Reform
         and Consumer Protection Act and otherwise growing out of the recent
         financial crisis, the precise nature, extent and timing of which, and
         their impact on us, remains uncertain. 
       o The impact on fee income opportunities resulting from the limit
         imposed under the Durbin Amendment of the Dodd-Frank Act on the
         maximum permissible interchange fee that banks may collect from
         merchants for debit card transactions and federal court
         determinations that may impose further restrictions on interchange
         fee opportunities.
       o Changes to regulations governing bank capital and liquidity
         standards, including due to the Dodd-Frank Act, Volcker rule and
         Basel III initiatives. 
       o Impact on business and operating results of any costs associated with
         obtaining rights in intellectual property, the adequacy of our
         intellectual property protection in general and rapid technological
         developments and changes. Our ability to anticipate and respond to
         technological changes can also impact our ability to respond to
         customer needs and meet competitive demands.

  o Business and operating results are affected by our ability to identify and
    effectively manage risks inherent in our businesses, including, where
    appropriate, through effective use of third-party insurance, derivatives,
    swaps, and capital management techniques, and to meet evolving regulatory
    capital standards.
  o Increased competition, whether due to consolidation among financial
    institutions; realignments or consolidation of branch offices, legal and
    regulatory developments, industry restructuring or other causes, can have
    an impact on customer acquisition, growth and retention and on credit
    spreads and product pricing, which can affect market share, deposits and
    revenues.
  o As demonstrated by our Annapolis Bancorp, Inc. and PVF Capital Corp.
    acquisitions and the pending acquisition of BCSB Bancorp, Inc., we grow
    our business in part by acquiring from time to time other financial
    services companies, financial services assets and related deposits.  These
    acquisitions often present risks and uncertainties, including, the
    possibility that the transaction cannot be consummated; regulatory issues;
    cost, or difficulties, involved in integration and conversion of the
    acquired businesses after closing; inability to realize expected cost
    savings, efficiencies and strategic advantages; the extent of credit
    losses in acquired loan portfolios and extent of deposit attrition; and
    the potential dilutive effect to our current shareholders.  In addition,
    with respect to the acquisition of Annapolis Bancorp, Inc. and PVF Capital
    Corp., and the pending acquisition of and BCSB Bancorp, Inc., F.N.B.
    Corporation may experience difficulties in expanding into a new market
    area, including retention of customers and key personnel of Annapolis
    Bancorp, Inc., PVF Capital Corp., Inc. and BCSB Bancorp, Inc.
  o Competition can have an impact on customer acquisition, growth and
    retention and on credit spreads and product pricing, which can affect
    market share, deposits and revenues.  Industry restructuring in the
    current environment could also impact our business and financial
    performance through changes in counterparty creditworthiness and
    performance and the competitive and regulatory landscape.  Our ability to
    anticipate and respond to technological changes can also impact our
    ability to respond to customer needs and meet competitive demands.
  o Business and operating results can also be affected by widespread
    disasters, dislocations, terrorist activities, cyber-attacks or
    international hostilities through their impacts on the economy and
    financial markets.

We provide greater detail regarding some of these factors in our 2012 Form
10-K and 2013 Form 10-Qs, including the Risk Factors section of those reports,
and our subsequent SEC filings.  Our forward-looking statements may also be
subject to other risks and uncertainties, including those we may discuss
elsewhere in this news release or in SEC filings, accessible on the SEC's
website at www.sec.gov and on our corporate website at
www.fnbcorporation.com.  We have included these web addresses as inactive
textual references only.  Information on these websites is not part of this
document.

^1 Non-GAAP measures, refer to Non-GAAP Disclosures and detail in the
accompanying data tables.

DATA SHEETS FOLLOW

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                            4Q13 -    4Q13 -
                              2013                2012      3Q13      4Q12
                              Fourth    Third     Fourth    Percent   Percent
Statement of earnings         Quarter   Quarter   Quarter   Variance  Variance
Interest income               $117,637  $109,790  $107,578  7.1       9.4
Interest expense              10,691    10,536    13,660    1.5       -21.7
   Net interest income        106,946   99,254    93,918    7.8       13.9
Taxable equivalent            1,704     1,781     1,798     -4.3      -5.2
adjustment
   Net interest income (FTE)  108,650   101,035   95,716    7.5       13.5
(1)
Provision for loan losses     8,366     7,280     9,274     14.9      -9.8
   Net interest income after  100,284   93,755    86,442    7.0       16.0
provision (FTE)
Impairment losses on          (27)      0         (186)     n/m       n/m
securities
Non-credit related losses on
securities not
   expected to be sold
(recognized in other
   comprehensive income)      0         0         93        n/m       n/m
Net impairment losses on      (27)      0         (93)      n/m       n/m
securities
Service charges               16,805    16,427    17,517    2.3       -4.1
Trust income                  4,323     4,176     3,880     3.5       11.4
Insurance commissions and     3,979     4,088     3,794     -2.7      4.9
fees
Securities commissions and    2,921     2,575     2,252     13.4      29.7
fees
Mortgage banking              370       885       1,257     -58.2     -70.6
Gain (loss) on sale of        51        5         3         n/m       n/m
securities
Other                         4,237     4,654     3,457     -9.0      22.5
   Total non-interest income  32,659    32,810    32,067    -0.5      1.8
Salaries and employee         47,710    45,155    40,964    5.7       16.5
benefits
Occupancy and equipment       14,006    12,547    11,676    11.6      20.0
FDIC insurance                1,995     3,161     1,905     -36.9     4.7
Amortization of intangibles   2,344     2,067     2,183     13.4      7.4
Other real estate owned       1,927     277       (631)     596.8     -405.1
Merger-related                3,999     913       (5)       n/m       n/m
Other                         20,087    19,053    20,440    5.4       -1.7
   Total non-interest         92,068    83,173    76,532    10.7      20.3
expense
Income before income taxes    40,875    43,392    41,977    -5.8      -2.6
Taxable equivalent            1,704     1,781     1,798     -4.3      -5.2
adjustment
Income taxes                  10,732    9,977     11,224    7.6       -4.4
   Net income                 28,439    31,634    28,955    -10.1     -1.8
   Preferred stock dividends  0         0         0
   Net income available to    $28,439   $31,634   $28,955   -10.1     -1.8
common stockholders
Earnings per common share:
   Basic                      $0.18     $0.22     $0.21     -18.2     -14.3
   Diluted                    $0.18     $0.22     $0.21     -18.2     -14.3
Non-GAAP Operating Results
Operating net income
available to common
stockholders:
  Net income available to     $28,439   $31,634   $28,955
common stockholders
  (Gain) loss on
extinguishment of debt, net   1,412     0         0
of tax
  Gain on sale of acquired    0         0         0
building, net of tax
  Branch consolidation        0         0         1,214
costs, net of tax
  Litigation settlement       0         0         1,950
accrual, net of tax
  Merger and severance        2,599     594       (3)
costs, net of tax
  Operating net income
available to common           $32,450   $32,228   $32,116   0.7       1.0
stockholders
Operating diluted earnings
per common share:
  Diluted earnings per        $0.18     $0.22     $0.21
common share
  Effect of (gain) loss on
extinguishment of debt, net   0.01      0.00      0.00
of tax
  Effect of gain on sale of
acquired building, net of     0.00      0.00      0.00
tax
  Effect of branch
consolidation costs, net of   0.00      0.00      0.01
tax
  Effect of litigation
settlement accrual, net of    0.00      0.00      0.01
tax
  Effect of merger and        0.02      0.00      (0.00)
severance costs, net of tax
  Operating diluted earnings  $0.21     $0.22     $0.23     -4.5      -8.7
per common share

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                 For the Year Ended
                                                 December 31,        Percent
Statement of earnings                            2013      2012      Variance
Interest income                                  $440,386  $431,906  2.0
Interest expense                                 44,344    59,055    -24.9
   Net interest income                           396,042   372,851   6.2
Taxable equivalent adjustment                    6,969     7,382     -5.6
   Net interest income (FTE) (1)                 403,011   380,233   6.0
Provision for loan losses                        31,090    31,302    -0.7
   Net interest income after provision (FTE)     371,921   348,931   6.6
Impairment losses on securities                  (27)      (626)     n/m
Non-credit related losses on securities not
   expected to be sold (recognized in other
   comprehensive income)                         0         414       n/m
Net impairment losses on securities              (27)      (212)     n/m
Service charges                                  68,221    69,546    -1.9
Trust income                                     16,751    15,239    9.9
Insurance commissions and fees                   16,598    16,426    1.0
Securities commissions and fees                  11,286    8,395     34.4
Mortgage banking                                 3,452     4,153     -16.9
Gain (loss) on sale of securities                808       305       n/m
Other                                            18,689    17,400    7.4
   Total non-interest income                     135,778   131,252   3.4
Salaries and employee benefits                   179,971   168,219   7.0
Occupancy and equipment                          51,688    46,898    10.2
FDIC insurance                                   10,192    8,077     26.2
Amortization of intangibles                      8,407     8,924     -5.8
Other real estate owned                          3,215     3,268     -1.6
Merger-related                                   8,210     7,394     11.0
Other                                            76,487    75,838    0.9
   Total non-interest expense                    338,170   318,618   6.1
Income before income taxes                       169,529   161,565   4.9
Taxable equivalent adjustment                    6,969     7,382     -5.6
Income taxes                                     44,756    43,773    2.2
   Net income                                    117,804   110,410   6.7
   Preferred stock dividends                     0         0
   Net income available to common stockholders   $117,804  $110,410  6.7
Earnings per common share:
   Basic                                         $0.81     $0.79     2.5
   Diluted                                       $0.80     $0.79     1.3
Non-GAAP Operating Results
Operating net income available to common
stockholders:
  Net income available to common stockholders    $117,804  $110,410
  (Gain) loss on extinguishment of debt, net of  399       0
tax
  Gain on sale of acquired building, net of tax  0         (942)
  Branch consolidation costs, net of tax         0         1,214
  Litigation settlement accrual, net of tax      0         1,950
  Merger and severance costs, net of tax         5,337     5,203
  Operating net income available to common       $123,540  $117,835  4.8
stockholders
Operating diluted earnings per common share:
  Diluted earnings per common share              $0.80     $0.79
  Effect of (gain) loss on extinguishment of     0.00      0.00
debt, net of tax
  Effect of gain on sale of acquired building,   0.00      (0.01)
net of tax
  Effect of branch consolidation costs, net of   0.00      0.01
tax
  Effect of litigation settlement accrual, net   0.00      0.01
of tax
  Effect of merger and severance costs, net of   0.04      0.04
tax
  Operating diluted earnings per common share    $0.84     $0.84     0.0

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                            4Q13 -    4Q13 -
                     2013                      2012         3Q13      4Q12
                     Fourth       Third        Fourth       Percent   Percent
Balance Sheet (at    Quarter      Quarter      Quarter      Variance  Variance
period end)
Assets
Cash and due from    $197,534     $234,746     $216,233     -15.9     -8.6
banks
Interest bearing     16,447       48,763       22,811       -66.3     -27.9
deposits with banks
   Cash and cash     213,981      283,509      239,044      -24.5     -10.5
equivalents
Securities           1,141,650    1,115,558    1,172,683    2.3       -2.6
available for sale
Securities held to   1,199,169    1,180,992    1,106,563    1.5       8.4
maturity
Residential
mortgage loans held  7,138        8,105        27,751       -11.9     -74.3
for sale
Loans, net of        9,506,094    8,836,905    8,137,719    7.6       16.8
unearned income
Allowance for loan   (110,784)    (110,052)    (104,374)    0.7       6.1
losses
   Net loans         9,395,310    8,726,853    8,033,345    7.7       17.0
Premises and         154,032      147,406      140,367      4.5       9.7
equipment, net
Goodwill             764,248      713,509      675,555      7.1       13.1
Core deposit and
other intangible     47,608       35,400       37,851       34.5      25.8
assets, net
Bank owned life      289,402      263,781      246,088      9.7       17.6
insurance
Other assets         350,867      315,166      344,729      11.3      1.8
Total Assets         $13,563,405  $12,790,279  $12,023,976  6.0       12.8
Liabilities
Deposits:
   Non-interest      $2,200,081   $2,115,813   $1,738,195   4.0       26.6
bearing demand
   Savings and NOW   5,392,078    5,247,922    4,808,121    2.7       12.1
   Certificates and  2,606,073    2,359,636    2,535,858    10.4      2.8
other time deposits
      Total          10,198,232   9,723,371    9,082,174    4.9       12.3
Deposits
Other liabilities    130,418      133,061      163,151      -2.0      -20.1
Short-term           1,241,239    1,166,180    1,083,138    6.4       14.6
borrowings
Long-term debt       143,928      91,807       89,425       56.8      60.9
Junior subordinated  75,205       194,213      204,019      -61.3     -63.1
debt
   Total             11,789,022   11,308,632   10,621,907   4.2       11.0
Liabilities
Stockholders'
Equity
Preferred stock      106,882      0            0                n/m      n/m
Common stock         1,592        1,455        1,398        9.4       13.9
Additional paid-in   1,608,117    1,440,779    1,376,601    11.6      16.8
capital
Retained earnings    121,870      112,649      75,312       8.2       61.8
Accumulated other
comprehensive        (56,924)     (66,171)     (46,224)     -14.0     23.1
income
Treasury stock       (7,154)      (7,065)      (5,018)      1.2       42.6
   Total
Stockholders'        1,774,383    1,481,647    1,402,069    19.8      26.6
Equity
Total Liabilities
and Stockholders'    $13,563,405  $12,790,279  $12,023,976  6.0       12.8
Equity
Selected average
balances
Total assets         $13,456,936  $12,615,338  $11,988,283  6.7       12.3
Earning assets       11,774,690   11,047,767   10,420,397   6.6       13.0
Interest bearing     130,027      30,224       116,885      330.2     11.2
deposits with banks
Securities           2,315,793    2,275,473    2,255,702    1.8       2.7
Residential
mortgage loans held  6,128        12,060       18,945       -49.2     -67.7
for sale
Loans, net of        9,322,742    8,730,010    8,028,865    6.8       16.1
unearned income
Allowance for loan   111,654      110,463      104,453      1.1       6.9
losses
Goodwill and         804,098      748,592      715,962      7.4       12.3
intangibles
Deposits and
customer repurchase  11,113,386   10,402,935   9,974,646    6.8       11.4
agreements (6)
Short-term           173,405      318,023      156,197      -45.5     11.0
borrowings
Long-term debt       138,631      91,659       88,956       51.2      55.8
Trust preferred      192,533      194,206      204,012      -0.9      -5.6
securities
Total stockholders'  1,694,669    1,475,751    1,400,430    14.8      21.0
equity 
Preferred
stockholders'        71,126       0            0               n/m       n/m
equity
Common stock data
Average diluted      157,858,351  146,446,442  140,923,088  7.8       12.0
shares outstanding
Period end shares    158,967,211  145,263,435  139,929,242  9.4       13.6
outstanding
Book value per       $10.49       $10.20       $10.02       2.8       4.7
common share
Tangible book value
per common share     $5.38        $5.04        $4.92        6.7       9.4
(4)
Dividend payout      67.58%       55.51%       58.51%
ratio (common)

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                            For the Year Ended
                                            December 31,              Percent
Balance Sheet (at period end)               2013         2012         Variance
Assets
Cash and due from banks                     $197,534     $216,233     -8.6
Interest bearing deposits with banks        16,447       22,811       -27.9
   Cash and cash equivalents                213,981      239,044      -10.5
Securities available for sale               1,141,650    1,172,683    -2.6
Securities held to maturity                 1,199,169    1,106,563    8.4
Residential mortgage loans held for sale    7,138        27,751       -74.3
Loans, net of unearned income               9,506,094    8,137,719    16.8
Allowance for loan losses                   (110,784)    (104,374)    6.1
   Net loans                                9,395,310    8,033,345    17.0
Premises and equipment, net                 154,032      140,367      9.7
Goodwill                                    764,248      675,555      13.1
Core deposit and other intangible assets,   47,608       37,851       25.8
net
Bank owned life insurance                   289,402      246,088      17.6
Other assets                                350,867      344,729      1.8
Total Assets                                $13,563,405  $12,023,976  12.8
Liabilities
Deposits:
   Non-interest bearing demand              $2,200,081   $1,738,195   26.6
   Savings and NOW                          5,392,078    4,808,121    12.1
   Certificates and other time deposits     2,606,073    2,535,858    2.8
      Total Deposits                        10,198,232   9,082,174    12.3
Other liabilities                           130,418      163,151      -20.1
Short-term borrowings                       1,241,239    1,083,138    14.6
Long-term debt                              143,928      89,425       60.9
Junior subordinated debt                    75,205       204,019      -63.1
   Total Liabilities                        11,789,022   10,621,907   11.0
Stockholders' Equity
Preferred stock                             106,882      0               n/m
Common stock                                1,592        1,398        13.9
Additional paid-in capital                  1,608,117    1,376,601    16.8
Retained earnings                           121,870      75,312       61.8
Accumulated other comprehensive income      (56,924)     (46,224)     23.1
Treasury stock                              (7,154)      (5,018)      42.6
   Total Stockholders' Equity               1,774,383    1,402,069    26.6
Total Liabilities and Stockholders' Equity  $13,563,405  $12,023,976  12.8
Selected average balances
Total assets                                $12,640,685  $11,782,821  7.3
Earning assets                              11,049,009   10,206,464   8.3
Interest bearing deposits with banks        57,605       94,719       -39.2
Securities                                  2,285,602    2,214,846    3.2
Residential mortgage loans held for sale    17,772       16,645       6.8
Loans, net of unearned income               8,688,030    7,880,254    10.3
Allowance for loan losses                   109,050      103,589      5.3
Goodwill and intangibles                    752,894      717,031      5.0
Deposits and customer repurchase            10,450,247   9,790,571    6.7
agreements (6)
Short-term borrowings                       231,326      158,875      45.6
Long-term debt                              103,772      90,652       14.5
Trust preferred securities                  199,296      203,471      -2.1
Total stockholders' equity                  1,514,471    1,376,493    10.0
Preferred stockholders' equity              17,928       0               n/m
Common stock data
Average diluted shares outstanding          147,809,504  140,640,165  5.1
Period end shares outstanding               158,967,211  139,929,242  13.6
Book value per common share                 $10.49       $10.02       4.7
Tangible book value per common share (4)    $5.38        $4.92        9.4
Dividend payout ratio (common)              60.48%       61.27%

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                            4Q13 -    4Q13 -
                      2013                      2012        3Q13      4Q12
                      Fourth       Third        Fourth      Percent   Percent
                      Quarter      Quarter      Quarter     Variance  Variance
Performance ratios
Return on average     6.66%        8.50%        8.23%
equity
Return on average
tangible equity (2)   13.35%       17.99%       17.65%
(4)
Return on average
tangible common       14.51%       17.99%       17.65%
equity (2) (4)
Return on average     0.84%        0.99%        0.96%
assets
Return on average
tangible assets (3)   0.94%        1.10%        1.07%
(4)
Net interest margin   3.67%        3.64%        3.66%
(FTE) (1) 
Yield on earning      4.03%        4.01%        4.18%
assets (FTE) (1)
Cost of funds         0.45%        0.47%        0.63%
Efficiency ratio      57.77%       59.71%       55.43%
(FTE) (1) (5)
Effective tax rate    27.40%       23.98%       27.94%
Capital ratios
Equity / assets       13.08%       11.58%       11.66%
(period end)
Leverage ratio        8.80%        8.42%        8.29%
Tangible equity /
tangible assets       7.55%        6.09%        6.09%
(period end) (4)
Tangible common
equity / tangible     6.71%        6.09%        6.09%
assets (period end)
(4)
Tangible common
equity, excluding
AOCI / tangible
   assets (period     7.16%        6.63%        6.50%
end) (4) (7)
Balances at period
end
Loans:
Commercial real       $3,245,209   $2,920,808   $2,707,046  11.1      19.9
estate 
Commercial and        1,881,474    1,755,235    1,602,314   7.2       17.4
industrial
Commercial leases     158,895      141,714      130,133     12.1      22.1
   Commercial loans   5,285,578    4,817,757    4,439,493   9.7       19.1
and leases
Direct installment    1,467,236    1,408,539    1,178,530   4.2       24.5
Residential           1,086,739    1,031,805    1,092,228   5.3       -0.5
mortgages
Indirect installment  655,587      638,312      582,037     2.7       12.6
Consumer LOC          965,771      887,981      805,494     8.8       19.9
Other                 45,183       52,511       39,937      -14.0     13.1
   Total loans        $9,506,094   $8,836,905   $8,137,719  7.6       16.8
Deposits:
Non-interest bearing  $2,200,081   $2,115,813   $1,738,195  4.0       26.6
deposits
Savings and NOW       5,392,078    5,247,922    4,808,121   2.7       12.1
Certificates of
deposit and other     2,606,073    2,359,636    2,535,858   10.4      2.8
time deposits
   Total deposits     10,198,232   9,723,371    9,082,174   4.9       12.3
Customer repurchase   841,741      834,610      807,820     0.9       4.2
agreements (6)
   Total deposits
and customer          $11,039,973  $10,557,981  $9,889,994  4.6       11.6
repurchase
agreements (6)
Average balances
Loans:
Commercial real       $3,184,720   $2,891,354   $2,657,325  10.1      19.8
estate 
Commercial and        1,818,355    1,753,053    1,567,340   3.7       16.0
industrial
Commercial leases     150,308      138,441      128,535     8.6       16.9
   Commercial loans   5,153,383    4,782,848    4,353,200   7.7       18.4
and leases
Direct installment    1,452,597    1,362,881    1,157,480   6.6       25.5
Residential           1,085,465    1,043,349    1,103,713   4.0       -1.7
mortgages
Indirect installment  646,876      621,705      581,748     4.0       11.2
Consumer LOC          939,646      875,239      793,496     7.4       18.4
Other                 44,775       43,988       39,228      1.8       14.1
   Total loans        $9,322,742   $8,730,010   $8,028,865  6.8       16.1
Deposits:
Non-interest bearing  $2,168,847   $2,033,370   $1,742,328  6.7       24.5
deposits
Savings and NOW       5,468,290    5,229,488    4,786,688   4.6       14.2
Certificates of
deposit and other     2,609,294    2,391,828    2,578,226   9.1       1.2
time deposits
   Total deposits     10,246,431   9,654,686    9,107,242   6.1       12.5
Customer repurchase   866,955      748,249      867,404     15.9      -0.1
agreements (6)
   Total deposits
and customer          $11,113,386  $10,402,935  $9,974,646  6.8       11.4
repurchase
agreements (6)

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                             For the Year Ended
                                             December 31,             Percent
                                             2013         2012        Variance
Performance ratios
Return on average equity                     7.78%        8.02%
Return on average tangible equity (2) (4)    16.19%       17.62%
Return on average tangible common equity     16.58%       17.62%
(2) (4)
Return on average assets                     0.93%        0.94%
Return on average tangible assets (3) (4)    1.04%        1.05%
Net interest margin (FTE) (1)                3.65%        3.73%
Yield on earning assets (FTE) (1)            4.05%        4.30%
Cost of funds                                0.49%        0.68%
Efficiency ratio (FTE) (1) (5)               58.94%       58.32%
Effective tax rate                           27.53%       28.39%
Capital ratios
Equity / assets (period end)                 13.08%       11.66%
Leverage ratio                               8.80%        8.29%
Tangible equity / tangible assets (period    7.55%        6.09%
end) (4)
Tangible common equity / tangible assets     6.71%        6.09%
(period end) (4)
Tangible common equity, excluding AOCI /
tangible
   assets (period end) (4) (7)               7.16%        6.50%
Balances at period end
Loans:
Commercial real estate                       $3,245,209   $2,707,046  19.9
Commercial and industrial                    1,881,474    1,602,314   17.4
Commercial leases                            158,895      130,133     22.1
   Commercial loans and leases               5,285,578    4,439,493   19.1
Direct installment                           1,467,236    1,178,530   24.5
Residential mortgages                        1,086,739    1,092,228   -0.5
Indirect installment                         655,587      582,037     12.6
Consumer LOC                                 965,771      805,494     19.9
Other                                        45,183       39,937      13.1
   Total loans                               $9,506,094   $8,137,719  16.8
Deposits:
Non-interest bearing deposits                $2,200,081   $1,738,195  26.6
Savings and NOW                              5,392,078    4,808,121   12.1
Certificates of deposit and other time       2,606,073    2,535,858   2.8
deposits
   Total deposits                            10,198,232   9,082,174   12.3
Customer repurchase agreements (6)           841,741      807,820     4.2
   Total deposits and customer repurchase    $11,039,973  $9,889,993  11.6
agreements (6)
Average balances
Loans:
Commercial real estate                       $2,908,164   $2,643,867  10.0
Commercial and industrial                    1,740,138    1,488,579   16.9
Commercial leases                            138,214      122,129     13.2
   Commercial loans and leases               4,786,516    4,254,575   12.5
Direct installment                           1,311,441    1,115,355   17.6
Residential mortgages                        1,068,130    1,154,837   -7.5
Indirect installment                         608,430      571,844     6.4
Consumer LOC                                 871,083      743,214     17.2
Other                                        42,430       40,429      4.9
   Total loans                               $8,688,030   $7,880,254  10.3
Deposits:
Non-interest bearing deposits                $1,963,431   $1,615,419  21.5
Savings and NOW                              5,203,251    4,691,424   10.9
Certificates of deposit and other time       2,489,129    2,691,597   -7.5
deposits
   Total deposits                            9,655,811    8,998,440   7.3
Customer repurchase agreements (6)           794,436      792,131     0.3
   Total deposits and customer repurchase    $10,450,247  $9,790,571  6.7
agreements (6)

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                            4Q13 -    4Q13 -
                              2013                2012      3Q13      4Q12
                              Fourth    Third     Fourth    Percent   Percent
Asset Quality Data            Quarter   Quarter   Quarter   Variance  Variance
Non-Performing Assets
Non-performing loans (8)
   Non-accrual loans          $58,755   $65,451   $66,004   -10.2     -11.0
   Restructured loans         18,698    17,252    14,876    8.4       25.7
      Non-performing loans    77,453    82,703    80,880    -6.3      -4.2
Other real estate owned (9)   40,681    35,144    35,257    15.8      15.4
   Non-performing loans and   118,134   117,847   116,137   0.2       1.7
OREO
Non-performing investments    797       733       2,809     8.7       -71.6
   Total non-performing       $118,931  $118,580  $118,946  0.3       0.0
assets
Non-performing loans / total  0.81%     0.94%     0.99%
loans
Non-performing loans / total  0.95%     1.05%     1.12%
originated loans (10)
Non-performing loans + OREO   1.24%     1.33%     1.42%
/ total loans + OREO
Non-performing loans + OREO
/ total originated 
   loans + OREO (10)          1.44%     1.49%     1.60%
Non-performing assets /       0.88%     0.93%     0.99%
total assets
Allowance Rollforward
Allowance for loan losses
(originated portfolio) (10)
   Balance at beginning of    $105,336  $102,849  $99,725   2.4       5.6
period
   Provision for loan losses  5,653     7,505     8,144     -24.7     -30.6
   Net loan charge-offs       (6,105)   (5,018)   (7,675)   21.7      -20.5
   Allowance for loan losses  104,884   105,336   100,194   -0.4      4.7
(originated portfolio) (10)
Allowance for loan losses
(acquired portfolio) (11)
   Balance at beginning of    4,716     5,431     2,989
period
   Provision for loan         2,713     (226)     1,130
losses 
   Net loan charge-offs       (1,529)   (489)     61
   Allowance for loan losses  5,900     4,716     4,180     25.1      41.1
(acquired portfolio) (11)
      Total allowance for     $110,784  $110,052  $104,374  0.7       6.1
loan losses
Allowance for loan losses /   1.17%     1.25%     1.28%
total loans
Allowance for loan losses
(originated loans) / total
   originated loans (10)      1.29%     1.34%     1.38%
Allowance for loan losses
(originated loans) / total
   non-performing loans  (8)  135.42%   127.37%   123.88%
Net loan charge-offs
(annualized) / total average  0.32%     0.25%     0.38%
loans
Net loan charge-offs on
originated loans
(annualized) / 
   total average originated   0.30%     0.26%     0.45%
loans (10)
Delinquency - Originated
Portfolio (10)
Loans 30-89 days past due     $37,342   $41,212   $46,205   -9.4      -19.2
Loans 90+ days past due       7,971     7,018     6,706     13.6      18.9
Non-accrual loans             58,755    65,451    66,004    -10.2     -11.0
   Total past due and         $104,068  $113,681  $118,915  -8.5      -12.5
non-accrual loans
Total past due and
non-accrual loans / total     1.28%     1.44%     1.64%
originated loans
Memo item:
Delinquency - Acquired
Portfolio (11) (12)
Loans 30-89 days past due     $30,205   $16,968   $22,799   78.0      32.5
Loans 90+ days past due       45,823    41,458    36,585    10.5      25.3
Non-accrual loans             0         0         0         0.0       0.0
   Total past due and         $76,028   $58,426   $59,384   30.1      28.0
non-accrual loans

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                  For the Year Ended
                                                  December 31,        Percent
Asset Quality Data                                2013      2012      Variance
Non-Performing Assets
Non-performing loans (8)
   Non-accrual loans                              $58,755   $66,004   -11.0
   Restructured loans                             18,698    14,876    25.7
      Non-performing loans                        77,453    80,880    -4.2
Other real estate owned (9)                       40,681    35,257    15.4
   Non-performing loans and OREO                  118,134   116,137   1.7
Non-performing investments                        797       2,809     -71.6
   Total non-performing assets                    $118,931  $118,946  0.0
Non-performing loans / total loans                0.81%     0.99%
Non-performing loans / total originated loans     0.95%     1.12%
(10)
Non-performing loans + OREO / total loans + OREO  1.24%     1.42%
Non-performing loans + OREO / total originated 
   loans + OREO (10)                              1.44%     1.60%
Non-performing assets / total assets              0.88%     0.99%
Allowance Rollforward
Allowance for loan losses (originated portfolio)
(10)
   Balance at beginning of period                 $100,194  $100,662  -0.5
   Provision for loan losses                      26,165    27,183    -3.7
   Net loan charge-offs                           (21,475)  (27,651)  -22.3
   Allowance for loan losses (originated          104,884   100,194   4.7
portfolio) (10)
Allowance for loan losses (acquired portfolio)
(11)
   Balance at beginning of period                 4,180     0
   Provision for loan losses                      4,924     4,119
   Net loan charge-offs                           (3,204)   61
   Allowance for loan losses (acquired            5,900     4,180     41.1
portfolio) (11)
      Total allowance for loan losses             $110,784  $104,374  6.1
Allowance for loan losses / total loans           1.17%     1.28%
Allowance for loan losses (originated loans) /
total
   originated loans (10)                          1.29%     1.38%
Allowance for loan losses (originated loans) /
total
   non-performing loans  (8)                      135.42%   123.88%
Net loan charge-offs (annualized) / total         0.28%     0.35%
average loans
Net loan charge-offs on originated loans
(annualized) / 
   total average originated loans (10)            0.28%     0.41%
Delinquency - Originated Portfolio (10)
Loans 30-89 days past due                         $37,342   $46,205   -19.2
Loans 90+ days past due                           7,971     6,706     18.9
Non-accrual loans                                 58,755    66,004    -11.0
   Total past due and non-accrual loans           $104,068  $118,915  -12.5
Total past due and non-accrual loans / total      1.28%     1.64%
originated loans
Memo item:
Delinquency - Acquired Portfolio (11) (12)
Loans 30-89 days past due                         $30,205   $22,799   32.5
Loans 90+ days past due                           45,823    36,585    25.3
Non-accrual loans                                 0         0         0.0
   Total past due and non-accrual loans           $76,028   $59,384   28.0

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                  2013
                  Fourth Quarter                  Third Quarter
                               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     $130,027     $84       0.25%    $30,224      $13       0.17%
banks
Taxable
investment        2,162,444    11,381    2.06%    2,117,849    10,889    2.01%
securities  (13)
Non-taxable
investment        153,349      2,054     5.36%    157,624      2,122     5.39%
securities  (14)
Residential
mortgage loans    6,128        103       6.73%    12,060       134       4.45%
held for sale
Loans  (14) (15)  9,322,742    105,719   4.51%    8,730,010    98,413    4.48%
   Total
Interest Earning  11,774,690   119,341   4.03%    11,047,767   111,571   4.01%
Assets  (14)
Cash and due      199,986                         185,419
from banks
Allowance for     (111,654)                       (110,463)
loan losses
Premises and      155,310                         147,804
equipment
Other assets      1,438,604                       1,344,811
Total Assets      $13,456,936                     $12,615,338
Liabilities
Deposits:
  
Interest-bearing  $4,054,525   1,500     0.15%    $3,841,619   1,391     0.14%
demand
   Savings        1,413,765    164       0.05%    1,387,869    162       0.05%
   Certificates   2,609,294    5,274     0.80%    2,391,828    5,342     0.89%
and other time
Customer
repurchase        866,955      510       0.23%    748,249      419       0.22%
agreements
Other short-term  173,405      609       1.37%    318,024      703       0.86%
borrowings
Long-term debt    138,631      847       2.42%    91,659       719       3.11%
Junior
subordinated      192,533      1,787     3.68%    194,206      1,800     3.68%
debt
      Total
Interest Bearing  9,449,108    10,691    0.45%    8,973,454    10,536    0.47%
Liabilities 
(14)
Non-interest
bearing demand    2,168,847                       2,033,370
deposits
Other             144,312                         132,763
liabilities
Total             11,762,267                      11,139,587
Liabilities
Stockholders'     1,694,669                       1,475,751
equity
Total
Liabilities and   $13,456,936                     $12,615,338
Stockholders'
Equity
Net Interest      $2,325,582                      $2,074,313
Earning Assets
Net Interest                   108,650                         101,035
Income (FTE)
Tax Equivalent                 (1,704)                         (1,781)
Adjustment
Net Interest                   $106,946                        $99,254
Income
Net Interest                             3.58%                           3.55%
Spread
Net Interest                             3.67%                           3.64%
Margin  (14)

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                2012
                                                Fourth Quarter
                                                             Interest  Average
                                                Average      Earned    Yield
                                                Outstanding  or Paid   or Rate
Assets
Interest bearing deposits with banks            $116,885     $68       0.23%
Taxable investment securities  (13)             2,076,440    10,817    2.03%
Non-taxable investment securities  (14)         179,262      2,455     5.48%
Residential mortgage loans held for sale        18,945       181       3.83%
Loans  (14) (15)                                8,028,865    95,855    4.75%
   Total Interest Earning Assets  (14)          10,420,397   109,376   4.18%
Cash and due from banks                         199,451
Allowance for loan losses                       (104,453)
Premises and equipment                          144,702
Other assets                                    1,328,185
Total Assets                                    $11,988,282
Liabilities
Deposits:
   Interest-bearing demand                      $3,578,072   1,834     0.21%
   Savings                                      1,208,616    253       0.08%
   Certificates and other time                  2,578,226    7,650     1.18%
Customer repurchase agreements                  867,404      603       0.27%
Other short-term borrowings                     156,197      597       1.50%
Long-term debt                                  88,956       791       3.54%
Junior subordinated debt                        204,012      1,932     3.77%
      Total Interest Bearing Liabilities  (14)  8,681,483    13,660    0.63%
Non-interest bearing demand deposits            1,742,328
Other liabilities                               164,042
Total Liabilities                               10,587,853
Stockholders' equity                            1,400,429
Total Liabilities and Stockholders' Equity      $11,988,282
Net Interest Earning Assets                     $1,738,914
Net Interest Income (FTE)                                    95,716
Tax Equivalent Adjustment                                    (1,798)
Net Interest Income                                          $93,918
Net Interest Spread                                                    3.56%
Net Interest Margin  (14)                                              3.66%

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share
data)
                  For the Year Ended December 31, 
                  2013                            2012
                               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     $57,605      $129      0.22%    $94,719      $210      0.22%
banks
Taxable
investment        2,125,001    43,551    2.00%    2,031,289    47,161    2.27%
securities  (13)
Non-taxable
investment        160,601      8,737     5.44%    183,558      10,253    5.59%
securities  (14)
Residential
mortgage loans    17,772       720       4.05%    16,645       713       4.28%
held for sale
Loans  (14) (15)  8,688,030    394,218   4.54%    7,880,254    380,951   4.83%
   Total
Interest Earning  11,049,009   447,355   4.05%    10,206,465   439,288   4.30%
Assets  (14)
Cash and due      183,656                         187,095
from banks
Allowance for     (109,050)                       (103,590)
loan losses
Premises and      147,009                         146,757
equipment
Other assets      1,370,061                       1,346,094
Total Assets      $12,640,685                     $11,782,821
Liabilities
Deposits:
  
Interest-bearing  $3,844,865   5,825     0.15%    $3,497,352   7,636     0.22%
demand
   Savings        1,358,386    656       0.05%    1,194,071    1,124     0.09%
   Certificates   2,489,129    22,960    0.92%    2,691,597    33,753    1.25%
and other time
Customer
repurchase        794,436      1,850     0.23%    792,131      2,506     0.31%
agreements
Other short-term  231,326      2,573     1.10%    158,875      2,656     1.64%
borrowings
Long-term debt    103,772      3,115     3.00%    90,652       3,492     3.85%
Junior
subordinated      199,296      7,365     3.70%    203,471      7,888     3.88%
debt
      Total
Interest Bearing  9,021,210    44,344    0.49%    8,628,149    59,055    0.68%
Liabilities 
(14)
Non-interest
bearing demand    1,963,431                       1,615,419
deposits
Other             141,573                         162,759
liabilities
Total             11,126,214                      10,406,327
Liabilities
Stockholders'     1,514,471                       1,376,494
equity
Total
Liabilities and   $12,640,685                     $11,782,821
Stockholders'
Equity
Net Interest      $2,027,799                      $1,578,316
Earning Assets
Net Interest                   403,011                         380,233
Income (FTE)
Tax Equivalent                 (6,969)                         (7,382)
Adjustment
Net Interest                   $396,042                        $372,851
Income
Net Interest                             3.56%                           3.62%
Spread
Net Interest                             3.65%                           3.73%
Margin  (14)

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES
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.
                              2013                          2012
                              Fourth         Third          Fourth
                              Quarter        Quarter        Quarter
Return on average tangible
equity (2):
Net income (annualized)       $112,828       $125,505       $115,189
Amortization of
intangibles, net of tax       6,045          5,331          5,645
(annualized)
                              118,873        130,836        120,834
Average total stockholders'   1,694,669      1,475,751      1,400,430
equity
Less:  Average intangibles    (804,098)      (748,592)      (715,962)
                              890,571        727,159        684,468
Return on average tangible    13.35%         17.99%         17.65%
equity (2)
Return on average tangible
common equity (2):
Net income available to
common stockholders           $112,828       $125,505       $115,189
(annualized)
Amortization of
intangibles, net of tax       6,045          5,331          5,645
(annualized)
                              118,873        130,836        120,834
Average total stockholders'   1,694,669      1,475,751      1,400,430
equity
Less:  Average preferred      (71,126)       0              0
stockholders' equity
Less:  Average                (804,098)      (748,592)      (715,962)
intangibles
                              819,445        727,159        684,468
Return on average tangible    14.51%         17.99%         17.65%
common equity (2)
Return on average tangible
assets (3):
Net income (annualized)       $112,828       $125,505       $115,189
Amortization of
intangibles, net of tax       6,045          5,331          5,645
(annualized)
                              118,873        130,836        120,834
Average total assets          13,456,936     12,615,338     11,988,283
Less:  Average intangibles    (804,098)      (748,592)      (715,962)
                              12,652,838     11,866,746     11,272,321
Return on average tangible    0.94%          1.10%          1.07%
assets (3)
Tangible book value per
common share:
Total stockholders' equity    $1,774,383     $1,481,647     $1,402,069
Less:  preferred              (106,882)      0              0
stockholders' equity
Less:  intangibles            (811,856)      (748,909)      (713,405)
                              855,645        732,738        688,664
Ending shares outstanding     158,967,211    145,263,435    139,929,242
Tangible book value per       $5.38          $5.04          $4.92
share

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                      For the Year Ended
                                                      December 31,
                                                      2013         2012
Return on average tangible equity (2):
Net income (annualized)                               $117,804     $110,410
Amortization of intangibles, net of tax (annualized)  5,465        5,801
                                                      123,268      116,210
Average total stockholders' equity                    1,514,471    1,376,493
Less:  Average intangibles                            (752,894)    (717,031)
                                                      761,578      659,462
Return on average tangible equity (2)                 16.19%       17.62%
Return on average tangible common equity (2):
Net income available to common stockholders           $117,804     $110,410
(annualized)
Amortization of intangibles, net of tax (annualized)  5,465        5,801
                                                      123,268      116,210
Average total stockholders' equity                    1,514,471    1,376,493
Less:  Average preferred stockholders' equity         (17,928)     0
Less:  Average intangibles                            (752,894)    (717,031)
                                                      743,649      659,462
Return on average tangible common equity (2)          16.58%       17.62%
Return on average tangible assets (3):
Net income (annualized)                               $117,804     $110,410
Amortization of intangibles, net of tax (annualized)  5,465        5,801
                                                      123,268      116,210
Average total assets                                  12,640,685   11,782,821
Less:  Average intangibles                            (752,894)    (717,031)
                                                      11,887,792   11,065,789
Return on average tangible assets (3)                 1.04%        1.05%
Tangible book value per common share:
Total stockholders' equity                            $1,774,383   $1,402,069
Less:  preferred stockholders' equity                 (106,882)    0
Less:  intangibles                                    (811,856)    (713,405)
                                                      855,645      688,664
Ending shares outstanding                             158,967,211  139,929,242
Tangible book value per share                         $5.38        $4.92

 

F.N.B. CORPORATION
(Unaudited)
(Dollars in
thousands)
                           2013                        2012
                           Fourth        Third         Fourth
                           Quarter       Quarter       Quarter
Tangible equity /
tangible assets (period
end):
Total stockholders'        $1,774,383    $1,481,647    $1,402,069
equity
Less:  intangibles         (811,856)     (748,909)     (713,405)
                           962,527       732,738       688,664
Total assets               13,563,405    12,790,279    12,023,976
Less:  intangibles         (811,856)     (748,909)     (713,405)
                           12,751,549    12,041,370    11,310,571
Tangible equity /
tangible assets (period    7.55%         6.09%         6.09%
end)
Tangible common equity /
tangible assets (period
end):
Total stockholders'        $1,774,383    $1,481,647    $1,402,069
equity
Less:  preferred           (106,882)     0             0
stockholders' equity
Less:  intangibles         (811,856)     (748,909)     (713,405)
                           855,645       732,738       688,664
Total assets               13,563,405    12,790,279    12,023,976
Less:  intangibles         (811,856)     (748,909)     (713,405)
                           12,751,549    12,041,370    11,310,571
Tangible equity / tangible 6.71%         6.09%         6.09%
assets (period end)
Tangible common equity,
excluding AOCI / tangible
   assets (period end)
(7):
Total stockholders'        $1,774,383    $1,481,647    $1,402,069
equity
Less:  preferred           (106,882)     0             0
stockholders' equity
Less:  intangibles         (811,856)     (748,909)     (713,405)
Less:  AOCI                56,924        66,171        46,224
                           912,569       798,909       734,888
Total assets               13,563,405    12,790,279    12,023,976
Less:  intangibles         (811,856)     (748,909)     (713,405)
                           12,751,549    12,041,370    11,310,571
Tangible equity,
excluding AOCI /
tangible
   assets (period          7.16%         6.63%         6.50%
end) (7)
            Net interest income is also presented on a fully taxable
(1)         equivalent (FTE) basis, as the Corporation believes this non-GAAP
            measure is the preferred
            industry measurement for this item.
            Return on average tangible equity is calculated by dividing net
(2)         income excluding amortization of intangibles by average equity
            less average intangibles.
            Return on average tangible assets is calculated by dividing net
(3)         income excluding amortization of intangibles by average assets
            less average intangibles.
(4)         See non-GAAP financial measures for additional information
            relating to the calculation of this item.
            The efficiency ratio is calculated by dividing non-interest
(5)         expense less amortization of intangibles, other real estate owned
            expense, FHLB prepayment
            penalties, litigation settlement accrual, branch consolidation
            costs, loss on extinguishment of debt and merger costs by the sum
            of net interest income on 
            a fully taxable equivalent basis plus non-interest income less
            gain on sale of an acquired building, gain on extinguishment of
            debt, securities gains and net 
            impairment losses on securities plus losses on asset disposals
            related to the branch consolidation project.
(6)         Customer repos are included in short-term borrowings on the
            balance sheet.
            Accumulated other comprehensive income (AOCI) is comprised of
(7)         unrealized losses on securities, non-credit impairment losses on
            other-than-temporarily
            impaired securities, unrealized losses on derivative instruments
            and unrecognized pension and postretirement obligations.
(8)         Does not include loans acquired at fair value ("acquired
            portfolio").
            Includes all other real estate owned, including those balances
(9)         acquired through business combinations that have been in acquired
            loans prior to foreclosure.
(10)        "Originated Portfolio" or "Originated Loans" equals loans and
            leases not included by definition in the Acquired Portfolio.
            "Acquired Portfolio" or "Acquired Loans" equals loans acquired at
(11)        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.
(12)        Represents contractual balances.
(13)        The average balances and yields earned on taxable investment
            securities are based on historical cost.
            The interest income amounts are reflected on a FTE basis, which
(14)        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.  The
            yields on earning assets and the net interest margin are presented
            on an FTE and annualized
            basis.  The rates paid on interest-bearing liabilities are also
            presented on an annualized basis.
            Average balances for loans include non-accrual loans.  Loans
(15)        consist of average total loans less average unearned income.  The
            amount of loan fees
            included in interest income is immaterial.

 

SOURCE F.N.B. Corporation

Website: http://www.fnbcorporation.com
Contact: Analyst/Institutional Investor, Cynthia Christopher, 724-983-3429,
330-507-8723 (cell), christoc@fnb-corp.com, Media, Jennifer Reel,
724-983-4856, 724-699-6389 (cell), reel@fnb-corp.com
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