F.N.B. Corporation Reports Second Quarter 2014 Results

            F.N.B. Corporation Reports Second Quarter 2014 Results  Record High Net Income; Linked-Quarter Revenue Growth of 8.5%  PR Newswire  PITTSBURGH, July 22, 2014  PITTSBURGH, July 22, 2014 /PRNewswire/ --F.N.B. Corporation (NYSE: FNB) today reported second quarter of 2014 results. Net income available to common shareholders for the second quarter of 2014 totaled $32.8 million, or $0.20 per diluted common share. Comparatively, first quarter of 2014 net income totaled $32.2 million, or $0.20 per diluted common share, and second quarter of 2013 net income totaled $29.2 million or $0.20 per diluted common share. Operating[1] results are presented in the table below, "Quarterly Results Summary".  Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "FNB reported another quarter of record net income and quality earnings highlighted by revenue growth, strong loan and deposit growth, a stable core net interest margin, consistent asset quality and diligent expense control. We grew total revenue by 8.5% compared to last quarter and improved our efficiency ratio to 57%."  Mr. Delie added, "We are realizing meaningful benefits from our expansion strategy as the Baltimore, Maryland and Cleveland, Ohio markets are fully staffed and completely integrated. Loan production in these markets has exceeded our initial expectations. Additionally, our presence in Maryland will be expanded with the completion of the OBA Financial acquisition expected to close in September. "  Quarterly Results Summary                              2Q14    1Q14    2Q13 Reported Results  Net income ($ in millions)                         $34.8   $34.5   $29.2  Preferred stock dividend expense ($ in millions)   $2.0    $2.3    -  Net income available to common shareholders ($ in  $32.8   $32.2   $29.2 millions)  Net income per diluted common share                $0.20   $0.20   $0.20 Operating Results (Non-GAAP)^1  Operating net income ($ in millions)               $35.4   $33.1   $30.1  Preferred stock dividend expense ($ in millions)   $2.0    $2.3    -  Operating net income available to common           $33.4   $30.8   $30.1 shareholders ($ in millions)  Operating net income per diluted common share      $0.20   $0.19   $0.21 Average Diluted Shares Outstanding (in 000's)          167,868 163,967 145,844  Second Quarter 2014 Highlights (All comparisons to the prior quarter, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances acquired via an acquisition.)    oTotal revenue (excluding securities gains) was $154.3 million, increasing     $12.1 million or 8.5%.   oLoan growth momentum continued, with average organic loan growth on a     linked-quarter basis of $257 million or 10.5% annualized, led by organic     growth in average commercial loans of $181 million or 13.1% annualized.     Organic growth in total loans on a period-end basis was $391 million or     15.8% annualized.   oOn an organic basis, average transaction deposits and customer repurchase     agreements grew $264 million, or 12.0% annualized, and included continued     solid growth in average non-interest bearing deposits of $130 million or     23.2% annualized. Transaction deposits and customer repurchase agreements     represent 77% of total deposits and customer repurchase agreements at June     30, 2014.   oThe net interest margin was 3.60% compared to 3.62% in the prior quarter.   oThe efficiency ratio improved to 57% from 59% in the prior quarter and the     year ago quarter.   oCredit quality metrics reflect continued solid performance. For the     originated portfolio, non-performing loans and OREO to total loans and     OREO were 1.36% at June 30, 2014, compared to 1.46% at March 31, 2014, and     net charge-offs were 0.23% annualized of total average originated loans,     compared to 0.28% annualized in the prior quarter.   oThe tangible common equity to tangible assets ratio was 6.73% at June 30,     2014, compared to 6.81% at March 31, 2014 and increased from 6.11% at June     30, 2013, reflecting the October 2013 capital raise. The tangible book     value per share increased to $5.73 at June 30, 2014, compared to $5.58 at     March 31, 2014 and $4.97 at June 30, 2013.  Second Quarter 2014 Results – Comparison to Prior Quarter (All comparisons refer to the first quarter of 2014, except as noted)  Net Interest Income/Loans/Deposits Net interest income on a fully taxable equivalent basis totaled $115.9 million, increasing $6.3 million, or 5.8%, primarily as a result of continued organic growth and partially due to the benefit related to the addition of BCSB Bancorp, Inc. (BCSB) in the first quarter of 2014. The net interest margin of 3.60% compares to 3.62% in the prior quarter, with 1 basis point of the narrowing reflecting slightly lower accretable yield adjustments. The growth in loans and lower-cost transaction deposits and customer repurchase agreements continues to support stability in the net interest margin.  Average loans totaled $10.1 billion and increased $413 million, or 17.1% annualized, and included annualized average organic loan growth of $257 million or 10.5%. Organic growth in average commercial loans totaled $181 million, or 13.1% annualized, and organic growth in average consumer loans (consisting of direct, consumer lines of credit and indirect loans) was $71 million or 9.1% annualized. Organic growth was strong on a period-end basis with total loans growing 15.8% annualized. The growth reflects positive results across the footprint, with the metropolitan markets contributing significantly.   Average deposits and customer repurchase agreements totaled $11.8 billion and increased $447 million, or 15.8% annualized, and included annualized average organic growth of $184 million or 6.4% annualized, reflecting growth in transaction deposits and customer repurchase agreements, partially offset by a decline in time deposits. On an organic basis, average total transaction deposits and customer repurchase agreements increased $264 million or 12.0% annualized. Organic growth in average non-interest bearing deposits was $130 million or 23.2% annualized. Total loans as a percentage of deposits and customer repurchase agreements was 88% at June 30, 2014.  Non-Interest Income Non-interest income totaled $39.2 million, decreasing $2.9 million, or 6.8%, as a result of the prior quarter gains on the sale of securities of $9.5 million. Excluding gains on the sale of securities, non-interest income increased $5.8 million, or 17.8%, reflecting revenue from higher service charges, mortgage banking, wealth management (trust income and securities commissions) and other income. Service charges increased $2.2 million, or 14.2%, and reflects seasonally higher volume and the benefit of the BCSB acquisition. Swap fee revenue related to commercial clients totaled a record-high $2.6 million and increased $1.8 million, benefitting from the strong commercial activity during the quarter. While mortgage banking increased $0.7 million from $0.2 million in the prior quarter, overall volume remained low.   Non-Interest Expense Non-interest expense totaled $92.6 million, decreasing $1.6 million, or 1.7%, and included $6.4 million lower merger and severance costs. Excluding merger and severance costs, non-interest expense increased $4.8 million, or 5.6%, and includes additional operating costs related to the BCSB acquisition. Salaries and benefits increased $1.4 million, or 3.1%, reflecting the addition of BCSB and higher performance-based compensation tied to improved production volumes and revenue trends during the second quarter. The efficiency ratio improved to 57.3%, compared to 59.0% in the first quarter of 2014.  Credit Quality Credit quality metrics reflect continued solid performance. The ratio of non-performing loans and OREO to total loans and OREO improved 7 basis points to 1.16%, and for the originated portfolio, the improvement was 10 basis points to 1.36%. Delinquency (total past due and non-accrual loans as a percentage of total originated loans) improved 4 basis points to 1.13%.  Net charge-offs for the second quarter totaled $5.9 million, or 0.23% annualized, consistent with $5.6 million or 0.23% annualized in the prior quarter. For the originated portfolio, net charge-offs were also 0.23% annualized, improved from 0.28% annualized of average originated loans. The ratio of the allowance for loan losses to total loans remained stable at 1.13%, and for the originated portfolio, the allowance for loan losses to total originated loans was 1.26%, compared to 1.28% at March 31, 2014. The provision for loan losses totaled $10.4 million, compared to $7.0 million in the prior quarter, with the increase primarily related to the strong organic loan growth during the second quarter of 2014 in the originated portfolio and an increase in the acquired portfolio primarily related to the exit of lower-quality credit. The ratio of the allowance for loan losses to total non-performing loans was 138.9%, compared to 134.9%.  Year-to-Date 2014 Results – Comparison to Prior Year-to-Date (All comparisons refer to the second quarter 2013 year-to-date, except as noted)  Results include the impact from the completion of the BCSB Bancorp Inc. (BCSB) acquisition completed on February 15, 2014, PVF Capital Corp (PVFC) on October 12, 2013 and Annapolis Bancorp, Inc. (ANNB) on April 6, 2013.  Net Interest Income/Loans/Deposits Net interest income on a fully taxable equivalent basis totaled $225.4 million, increasing $32.1 million or 16.6%. The net interest margin was 3.61%, compared to 3.64%, with 2 basis points of the 3 basis point narrowing attributable to lower accretable yield benefit on acquired loans. Average earning assets grew $1.9 billion, or 17.8%, through consistent organic loan growth and the benefit of acquisition-related growth.  Average loans totaled $9.9 billion and increased $1.6 billion, or 18.7%, reflecting strong organic average loan growth of $653 million, or 7.7%, and loans added in the acquisitions. Growth in the commercial portfolio continued, with average balances growing organically $345 million or 7.3%. Average organic consumer loan growth (consisting of direct, consumer lines of credit and indirect loans) was also solid at $387 million or 14.6%, reflecting successful sales management and the benefit of the expanded banking footprint.  Total average deposits and customer repurchase agreements totaled $11.6 billion and increased $1.4 billion or 14.1%. Organic growth in lower-cost transaction deposit accounts and customer repurchase agreements was strong, growing $438 million, or 5.6%, with growth in average non-interest bearing deposits of $307 million or 16.5%.  Non-Interest Income Non-interest income totaled $81.3 million, increasing $11.0 million, or 15.6%, with the first six months of 2014 including a $9.5 million (pre-tax) net gain related to the sale of certain securities, including the pooled trust preferred securities portfolio. Organic and acquisition-related growth in service charges was offset by $5.1 million in lower customer-related interchange service charges due to the Durbin Amendment. Additionally, the first six months of 2014 included solid growth in the fee-based units, increased swap fee revenue and lower net mortgage banking revenue consistent with industry trends.  Non-Interest Expense Non-interest expense totaled $186.8 million, increasing $23.8 million or 14.6%. The first six months of 2014 included merger and severance costs of $8.1 million, compared to $3.3 million in the prior year-to-date period. Absent these items, non-interest expense increased $19.0 million or 11.9%, and primarily reflects the additional operating costs related to the expanded operations from acquisitions. The efficiency ratio was 58.1%, compared to 59.2%.  Credit Quality Credit quality results reflect improvement over the prior-year period. The ratio of non-performing loans and OREO to total loans and OREO improved 24 basis points to 1.16%. For the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO improved 23 basis points to 1.36%. Total delinquency (total past due and non-accrual loans as a percentage of total originated loans) was 1.13% at June 30, 2014, a 31 basis point improvement reflecting a $10.2 million, or 9.3%, reduction in total delinquency.  Net charge-offs totaled $11.4 million, or 0.23% annualized of total average loans, compared to $11.5 million or 0.28% annualized. For the originated portfolio, net charge-offs were $10.5 million or 0.25% annualized of total average originated loans, compared to $10.4 million or 0.28% annualized. The ratio of the allowance for loan losses to total originated loans was 1.26% at June 30, 2014, compared to 1.35% at June 30, 2013, with the change directionally consistent with the performance of the portfolio. The provision for loan losses totaled $17.4 million, compared to $15.4 million in the prior-year period.  Capital Position At June 30, 2014, the tangible common equity to tangible assets ratio (non-GAAP measure) was 6.73%, compared to 6.81% and 6.11% at March 31, 2014 and June 30, 2013, respectively. The tangible common book value per share (non-GAAP measure) increased to $5.73 from $5.58 and $4.97 at March 31, 2014 and June 30, 2013, respectively. The common dividend payout ratio for the second quarter of 2014 was 61.3%.  The Corporation's capital levels at June 30, 2014 continue to exceed federal bank regulatory agency "well capitalized" thresholds and the estimated total risk-based capital ratio was 12.2%, the estimated tier 1 risk-based capital ratio was 10.9% and the estimated leverage ratio was 8.4%.  Conference Call F.N.B. Corporation will host a conference call to discuss second quarter 2014 financial results on Wednesday, July 23, 2014 at 10:00 a.m. Eastern Time. Participating callers may access the call by dialing (877) 485-3103 or (201) 689-8890 for international callers. 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 until Thursday, July 31, 2014 by dialing (877) 660-6853 or (201) 612-7415 for international callers; the confirmation number is 13586798. 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 Pittsburgh, Pennsylvania, is a diversified financial services company operating in six states and three major metropolitan areas. It holds atop retail deposit market share in Pittsburgh, Baltimore, MD, and Cleveland, OH. The Company has total assets of $15.0 billion and more than 280 banking offices throughout Pennsylvania, Ohio, West Virginia and Maryland and provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network which is led by its largest affiliate, First National Bank of Pennsylvania, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, international banking, business credit, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. 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:    oOur businesses, financial results and balance sheet values are affected by     business and economic conditions, including the following:         oChanges in interest rates and valuations in debt, equity and other          financial markets.        oDisruptions in the liquidity and other functioning of U.S. and global          financial markets.        oThe impact on federal regulated agencies that have oversight or          review of F.N.B. Corporation's business and securities activities.        oActions by the Federal Reserve, U.S. Treasury and other government          agencies, including those that impact money supply and market          interest rates.        oChanges 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.        oSlowing or reversal of the current moderate economic recovery.        oChanges in customer preferences and behavior, whether due to changing          business and economic conditions, legislative and regulatory          initiatives, or other factors.    oLegal 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:         oChanges 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.        oChanges to regulations governing bank capital and liquidity          standards, including due to the Dodd-Frank Act, Volcker rule and          Basel III initiatives.        oImpact 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.    oBusiness 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.   oIncreased 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.   oAs demonstrated by our acquisitions and the pending acquisition of OBA     Financial Services 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.   oCompetition 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.   oBusiness 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 2013 Form 10-K and March 31, 2014 Form 10-Q, 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.  DATA SHEETS FOLLOW  [1] Non-GAAP measures, refer to Non-GAAP Disclosures and detail in the accompanying data tables.  F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data)                                                             2Q14 -    2Q14 -                               2014                2013      1Q14      2Q13                               Second    First     Second    Percent   Percent Statement of earnings         Quarter   Quarter   Quarter   Variance  Variance Interest income              $124,440  $117,880  $107,841  5.6       15.4 Interest expense              10,248    10,055    11,095    1.9       -7.6  Net interest income        114,192   107,825   96,746    5.9       18.0 Taxable equivalent adjustment 1,691     1,722     1,743     -1.8      -3.0  Net interest income (FTE)  115,883   109,547   98,489    5.8       17.7 (1) Provision for loan losses     10,405    7,006     7,903     48.5      31.7  Net interest income after  105,478   102,541   90,586    2.9       16.4 provision (FTE) Service charges               17,441    15,269    18,564    14.2      -6.0 Trust income                  4,862     4,764     4,167     2.1       16.7 Insurance commissions and     3,691     4,945     4,101     -25.4     -10.0 fees Securities commissions and    3,002     2,391     2,867     25.6      4.7 fees Mortgage banking              928       214       1,114     333.1     -16.6 Gain on sale of securities    776       9,461     68        n/m       n/m Other                         8,490     5,026     5,816     68.9      46.0  Total non-interest income  39,190    42,070    36,697    -6.8      6.8 Salaries and employee         48,465    47,023    43,201    3.1       12.2 benefits Occupancy and equipment       15,245    15,381    12,945    -0.9      17.8 FDIC insurance                3,400     2,994     2,672     13.6      27.2 Amortization of intangibles   2,461     2,283     2,071     7.8       18.8 Other real estate owned       922       779       820       18.3      12.4 Merger and severance-related  832       7,248     2,946     n/m       n/m Other                         21,259    18,458    19,472    15.2      9.2  Total non-interest expense 92,584    94,166    84,127    -1.7      10.1 Income before income taxes    52,084    50,445    43,156    3.2       20.7 Taxable equivalent adjustment 1,691     1,722     1,743     -1.8      -3.0 Income taxes                  15,562    14,199    12,220    9.6       27.3  Net income                 34,831    34,524    29,193    0.9       19.3  Preferred stock dividends  2,010     2,322     0  Net income available to    $32,821   $32,202   $29,193   1.9       12.4 common stockholders Earnings per common share:  Basic                      $0.20     $0.20     $0.20     0.0       0.0  Diluted                    $0.20     $0.20     $0.20     0.0       0.0 Non-GAAP Operating Results: Operating net income available to common stockholders:  Net income available to     $32,821   32,202    $29,193 common stockholders  Net gain on sale of pooled TPS and other securities, net 0         (6,150)   0 of tax  (Gain) loss on extinguishment of debt, net   0         0         (1,013) of tax  Merger and severance costs, 541       4,711     1,915 net of tax  Operating net income available to common           $33,362   $30,763   $30,095   8.5       10.9 stockholders Operating diluted earnings per common share:  Diluted earnings per common $0.20     $0.20     $0.20 share  Effect of net gain on sale of pooled TPS and other       0.00      (0.04)    0.00 securities, net of tax  Effect of (gain) loss on extinguishment of debt, net   0.00      0.00      (0.01) of tax  Effect of merger and        0.00      0.03      0.01 severance costs, net of tax  Operating diluted earnings  $0.20     $0.19     $0.21     0.0       -0.1 per common share      F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data)                                             For the Six Months Ended                                             June 30,                  Percent Statement of earnings                       2014          2013        Variance Interest income                            $242,320      $212,959    13.8 Interest expense                            20,303        23,117      -12.2  Net interest income                      222,017       189,842     16.9 Taxable equivalent adjustment               3,413         3,484       -2.1  Net interest income (FTE) (1)            225,430       193,326     16.6 Provision for loan losses                   17,411        15,444      12.7  Net interest income after provision      208,019       177,882     16.9 (FTE) Service charges                             32,710        34,989      -6.5 Trust income                                9,626         8,252       16.7 Insurance commissions and fees              8,636         8,531       1.2 Securities commissions and fees             5,393         5,790       -6.9 Mortgage banking                            1,142         2,198       -48.1 Gain on sale of securities                  10,237        752         n/m Other                                       13,516        9,797       38.0  Total non-interest income                81,260        70,309      15.6 Salaries and employee benefits              95,488        87,106      9.6 Occupancy and equipment                     30,626        25,135      21.8 FDIC insurance                              6,393         5,036       27.0 Amortization of intangibles                 4,744         3,996       18.7 Other real estate owned                     1,702         1,012       68.1 Merger and severance-related                8,080         3,298       145.0 Other                                       39,717        37,346      6.3  Total non-interest expense               186,750       162,929     14.6 Income before income taxes                  102,529       85,262      20.3 Taxable equivalent adjustment               3,413         3,484       -2.1 Income taxes                                29,761        24,047      23.8  Net income                               69,355        57,731      20.1  Preferred stock dividends                4,332         0  Net income available to common           $65,023       $57,731     12.6 stockholders Earnings per common share:  Basic                                    $0.40         $0.41       -2.4  Diluted                                  $0.39         $0.40       -2.5 Non-GAAP Operating Results: Operating net income available to common stockholders:  Net income available to common            $65,023       $57,731 stockholders  Net gain on sale of pooled TPS and other  (6,150)       0 securities, net of tax  (Gain) loss on extinguishment of debt,    0             (1,013) net of tax  Merger and severance costs, net of tax    5,252         2,144  Operating net income available to common  $64,125       $58,862     8.9 stockholders Operating diluted earnings per common share:  Diluted earnings per common share         $0.39         $0.40  Effect of net gain on sale of pooled TPS  (0.04)        0.00 and other securities, net of tax  Effect of (gain) loss on extinguishment   0.00          (0.01) of debt, net of tax  Effect of merger and severance costs, net 0.03          0.01 of tax  Operating diluted earnings per common     $0.39         $0.41       -7.3 share      F.N.B. CORPORATION (Unaudited) (Dollars in thousands)                                                             2Q14 -    2Q14 -                      2014                      2013         1Q14      2Q13                      Second       First        Second       Percent   Percent Balance Sheet (at    Quarter      Quarter      Quarter      Variance  Variance period end) Assets Cash and due from    $250,954     $221,615     $197,879     13.2      26.8 banks Interest bearing     19,766       24,638       32,223       -19.8     -38.7 deposits with banks  Cash and cash     270,720      246,253      230,102      9.9       17.7 equivalents Securities available 1,384,273    1,274,070    1,164,903    8.6       18.8 for sale Securities held to   1,427,852    1,420,446    1,149,481    0.5       24.2 maturity Residential mortgage 2,705        3,940        19,614       -31.3     -86.2 loans held for sale Loans, net of        10,333,873   9,943,136    8,637,089    3.9       19.6 unearned income Allowance for loan   (116,748)    (112,219)    (108,280)    4.0       7.8 losses  Net loans         10,217,125   9,830,917    8,528,809    3.9       19.8 Premises and         162,383      165,603      145,833      -1.9      11.3 equipment, net Goodwill             805,514      805,788      709,477      0.0       13.5 Core deposit and other intangible     48,292       51,024       37,503       -5.4      28.8 assets, net Bank owned life      309,750      307,872      262,877      0.6       17.8 insurance Other assets         390,633      370,597      324,792      5.4       20.3 Total Assets         $15,019,247  $14,476,510  $12,573,391  3.7       19.5 Liabilities Deposits:  Non-interest      $2,429,120   $2,353,444   $1,974,415   3.2       23.0 bearing demand  Interest bearing  4,354,333    4,238,715    3,848,733    2.7       13.1 demand  Savings           1,576,480    1,569,090    1,395,013    0.5       13.0  Certificates and  2,697,837    2,777,487    2,428,037    -2.9      11.1 other time deposits  Total Deposits 11,057,770   10,938,736   9,646,198    1.1       14.6 Other liabilities    154,816      131,894      140,958      17.4      9.8 Short-term           1,504,510    1,216,624    1,030,617    23.7      46.0 borrowings Long-term debt       335,854      235,752      92,420       42.5      263.4 Junior subordinated  58,220       68,517       194,200      -15.0     -70.0 debt  Total Liabilities 13,111,170   12,591,523   11,104,393   4.1       18.1 Stockholders' Equity Preferred Stock      106,882      106,882      0            n/m       n/m Common stock         1,673        1,671        1,454        0.1       15.1 Additional paid-in   1,700,220    1,697,177    1,438,008    0.2       18.2 capital Retained earnings    146,542      133,828      98,575       9.5       48.7 Accumulated other    (36,559)     (44,041)     (62,077)     -17.0     -41.1 comprehensive income Treasury stock       (10,681)     (10,530)     (6,962)      1.4       53.4  Total             1,908,077    1,884,987    1,468,998    1.2       29.9 Stockholders' Equity Total Liabilities and Stockholders'    $15,019,247  $14,476,510  $12,573,391  3.7       19.5 Equity Selected average balances Total assets         $14,710,831  $13,989,304  $12,470,029  5.2       18.0 Earning assets      12,909,262   12,243,198   10,886,197   5.4       18.6 Interest bearing     45,725       46,193       39,302       -1.0      16.3 deposits with banks Securities           2,751,703    2,496,419    2,296,190    10.2      19.8 Residential mortgage 2,751        4,844        20,896       -43.2     -86.8 loans held for sale Loans, net of        10,109,083   9,695,742    8,529,810    4.3       18.5 unearned income Allowance for loan   113,009      110,385      109,156      2.4       3.5 losses Goodwill and         854,760      835,031      745,458      2.4       14.7 intangibles Deposits and customer repurchase  11,786,281   11,339,046   10,333,999   3.9       14.1 agreements (6) Short-term           551,633      390,706      224,769      41.2      145.4 borrowings Long-term debt       266,925      217,894      93,273       22.5      186.2 Trust preferred      58,893       76,048       206,602      -22.6     -71.5 securities Total stockholders'  1,900,751    1,829,601    1,473,945    3.9       29.0 equity Preferred            106,882      106,882      0            0.0       n/m stockholders' equity Common stock data Average diluted      167,867,608  163,967,246  145,844,164  2.4       15.1 shares outstanding Period end shares    166,559,258  166,377,327  145,151,279  0.1       14.7 outstanding Book value per       $10.81       $10.69       $10.12       1.2       6.9 common share Tangible book value  $5.73        $5.58        $4.97        2.7       15.2 per common share (4) Dividend payout      61.26%       62.16%       60.08% ratio (common)      F.N.B. CORPORATION (Unaudited) (Dollars in thousands)                                             For the Six Months Ended                                             June 30,                  Percent Balance Sheet (at period end)               2014         2013         Variance Assets Cash and due from banks                     $250,954     $197,879     26.8 Interest bearing deposits with banks        19,766       32,223       -38.7  Cash and cash equivalents                270,720      230,102      17.7 Securities available for sale               1,384,273    1,164,903    18.8 Securities held to maturity                 1,427,852    1,149,481    24.2 Residential mortgage loans held for sale    2,705        19,614       -86.2 Loans, net of unearned income               10,333,873   8,637,089    19.6 Allowance for loan losses                   (116,748)    (108,280)    7.8  Net loans                                10,217,125   8,528,809    19.8 Premises and equipment, net                 162,383      145,833      11.3 Goodwill                                    805,514      709,477      13.5 Core deposit and other intangible assets,   48,292       37,503       28.8 net Bank owned life insurance                   309,750      262,877      17.8 Other assets                                390,633      324,792      20.3 Total Assets                                $15,019,247  $12,573,391  19.5 Liabilities Deposits:  Non-interest bearing demand              $2,429,120   $1,974,415   23.0  Interest bearing demand                  4,354,333    3,848,733    13.1  Savings                                  1,576,480    1,395,013    13.0  Certificates and other time deposits     2,697,837    2,428,037    11.1  Total Deposits                        11,057,770   9,646,198    14.6 Other liabilities                           154,816      140,958      9.8 Short-term borrowings                       1,504,510    1,030,617    46.0 Long-term debt                              335,854      92,420       263.4 Junior subordinated debt                    58,220       194,200      -70.0  Total Liabilities                        13,111,170   11,104,393   18.1 Stockholders' Equity Preferred Stock                             106,882      0            n/m Common stock                                1,673        1,454        15.1 Additional paid-in capital                  1,700,220    1,438,008    18.2 Retained earnings                           146,542      98,575       48.7 Accumulated other comprehensive income      (36,559)     (62,077)     -41.1 Treasury stock                              (10,681)     (6,962)      53.4  Total Stockholders' Equity               1,908,077    1,468,998    29.9 Total Liabilities and Stockholders' Equity  $15,019,247  $12,573,391  19.5 Selected average balances Total assets                                $14,352,061  $12,238,679  17.3 Earning assets                             12,578,070   10,680,786   17.8 Interest bearing deposits with banks       45,958       34,712       32.4 Securities                                  2,624,766    2,275,404    15.4 Residential mortgage loans held for sale   3,792        26,595       -85.7 Loans, net of unearned income               9,903,554    8,344,076    18.7 Allowance for loan losses                   111,704      107,009      4.4 Goodwill and intangibles                    844,951      729,054      15.9 Deposits and customer repurchase agreements 11,563,899   10,137,229   14.1 (6) Short-term borrowings                       471,614      216,700      117.6 Long-term debt                              242,545      93,280       160.0 Trust preferred securities                  67,423       205,321      -67.2 Total stockholders' equity                  1,865,373    1,442,561    29.3 Preferred stockholders' equity              106,882      0            n/m Common stock data Average diluted shares outstanding          165,928,360  143,465,670  15.7 Period end shares outstanding               166,559,258  145,151,279  14.7 Book value per common share                 $10.81       $10.12       6.9 Tangible book value per common share (4)    $5.73        $4.97        15.2 Dividend payout ratio (common)              61.71%       59.70%      F.N.B. CORPORATION (Unaudited) (Dollars in thousands)                                                             2Q14 -    2Q14 -                      2014                      2013         1Q14      2Q13                      Second       First        Second       Percent   Percent                      Quarter      Quarter      Quarter      Variance  Variance Performance ratios Return on average    7.35%        7.65%        7.94% equity Return on average tangible equity (2)  13.88%       14.57%       16.81% (4) Return on average tangible common      14.59%       15.26%       16.81% equity (2) (4) Return on average    0.95%        1.00%        0.94% assets Return on average tangible assets (3)  1.05%        1.11%        1.04% (4) Net interest margin  3.60%        3.62%        3.63% (FTE) (1) Yield on earning     3.92%        3.95%        4.03% assets (FTE) (1) Cost of funds        0.40%        0.42%        0.50% Efficiency ratio     57.27%       58.99%       58.62% (FTE) (1) (5) Effective tax rate   30.88%       29.14%       29.51% Capital ratios Equity / assets      12.70%       13.02%       11.68% (period end) Leverage ratio       8.44%        8.84%        8.42% Tangible equity / tangible assets      7.49%        7.60%        6.11% (period end) (4) Tangible common equity / tangible    6.73%        6.81%        6.11% assets (period end) (4) Tangible equity, excluding AOCI / tangible  assets (period    6.99%        7.14%        6.63% end) (4) (7) Balances at period end Loans: Commercial real      $3,577,933   $3,464,598   $2,866,536   3.3       24.8 estate Commercial and       2,103,896    1,965,065    1,750,870    7.1       20.2 industrial Commercial leases    164,676      161,494      136,268      2.0       20.8  Commercial loans  5,846,505    5,591,157    4,753,674    4.6       23.0 and leases Direct installment   1,512,149    1,467,558    1,301,891    3.0       16.2 Residential          1,145,286    1,135,790    1,059,644    0.8       8.1 mortgages Indirect installment 729,513      678,918      607,958      7.5       20.0 Consumer LOC         1,037,519    1,010,501    868,992      2.7       19.4 Other                62,901       59,212       44,930       6.2       40.0  Total loans       $10,333,873  $9,943,136   $8,637,089   3.9       19.6 Deposits: Non-interest bearing $2,429,120   $2,353,444   $1,974,415   3.2       23.0 deposits Interest bearing     4,354,333    4,238,715    3,848,733    2.7       13.1 demand Savings              1,576,480    1,569,090    1,395,013    0.5       13.0 Certificates of deposit and other    2,697,837    2,777,487    2,428,037    -2.9      11.1 time deposits  Total deposits    11,057,770   10,938,736   9,646,198    1.1       14.6 Customer repurchase  751,066      787,712      714,540      -4.7      5.1 agreements (6)  Total deposits and customer         $11,808,836  $11,726,448  $10,360,738  0.7       14.0 repurchase agreements (6) Average balances Loans: Commercial real      $3,515,115   $3,341,359   $2,868,973   5.2       22.5 estate Commercial and       2,034,481    1,923,270    1,730,834    5.8       17.5 industrial Commercial leases    163,720      160,367      133,446      2.1       22.7  Commercial loans  5,713,316    5,424,996    4,733,253    5.3       20.7 and leases Direct installment   1,484,698    1,466,392    1,245,030    1.2       19.2 Residential          1,134,820    1,107,349    1,065,577    2.5       6.5 mortgages Indirect installment 702,257      666,012      587,537      5.4       19.5 Consumer LOC         1,023,963    987,304      855,741      3.7       19.7 Other                50,028       43,689       42,672       14.5      17.2  Total loans       $10,109,082  $9,695,742   $8,529,810   4.3       18.5 Deposits: Non-interest bearing $2,374,516   $2,222,786   $1,901,610   6.8       24.9 deposits Interest bearing     4,301,667    4,099,093    3,829,847    4.9       12.3 demand Savings              1,575,453    1,494,248    1,385,472    5.4       13.7 Certificates of deposit and other    2,736,294    2,695,067    2,461,490    1.5       11.2 time deposits  Total deposits    10,987,930   10,511,194   9,578,419    4.5       14.7 Customer repurchase  798,351      827,851      755,580      -3.6      5.7 agreements (6)  Total deposits and customer         $11,786,281  $11,339,045  $10,333,999  3.9       14.1 repurchase agreements (6)      F.N.B. CORPORATION (Unaudited) (Dollars in thousands)                                             For the Six Months Ended                                             June 30,                  Percent                                             2014         2013         Variance Performance ratios Return on average equity                    7.50%        8.07% Return on average tangible equity (2) (4)   14.22%       17.05% Return on average tangible common equity    14.92%       17.05% (2) (4) Return on average assets                    0.97%        0.95% Return on average tangible assets (3) (4)   1.08%        1.06% Net interest margin (FTE) (1)              3.61%        3.64% Yield on earning assets (FTE) (1)           3.93%        4.08% Cost of funds                               0.41%        0.53% Efficiency ratio (FTE) (1) (5)              58.10%       59.17% Effective tax rate                          30.03%       29.41% Capital ratios Equity / assets (period end)                12.70%       11.68% Leverage ratio                              8.44%        8.42% Tangible equity / tangible assets (period   7.49%        6.11% end) (4) Tangible common equity / tangible assets    6.73%        6.11% (period end) (4) Tangible equity, excluding AOCI / tangible  assets (period end) (4) (7)              6.99%        6.63% Balances at period end Loans: Commercial real estate                     $3,577,933   $2,866,536   24.8 Commercial and industrial                   2,103,896    1,750,870    20.2 Commercial leases                           164,676      136,268      20.8  Commercial loans and leases              5,846,505    4,753,673    23.0 Direct installment                          1,512,149    1,301,891    16.2 Residential mortgages                       1,145,286    1,059,644    8.1 Indirect installment                        729,513      607,958      20.0 Consumer LOC                                1,037,519    868,992      19.4 Other                                       62,901       44,930       40.0  Total loans                              $10,333,873  $8,637,089   19.6 Deposits: Non-interest bearing deposits               $2,429,120   $1,974,415   23.0 Interest bearing demand                     4,354,333    3,848,733    13.1 Savings                                     1,576,480    1,395,013    13.0 Certificates of deposit and other time      2,697,837    2,428,037    11.1 deposits  Total deposits                           11,057,770   9,646,198    14.6 Customer repurchase agreements (6)          751,066      714,540      5.1  Total deposits and customer repurchase   $11,808,836  $10,360,738  14.0 agreements (6) Average balances Loans: Commercial real estate                     $3,424,421   $2,781,961   23.1 Commercial and industrial                   1,983,478    1,687,994    17.5 Commercial leases                           162,053      131,951      22.8  Commercial loans and leases              5,569,952    4,601,905    21.0 Direct installment                          1,475,595    1,213,547    21.6 Residential mortgages                       1,121,161    1,071,915    4.6 Indirect installment                        684,235      582,140      17.5 Consumer LOC                                1,005,735    834,122      20.6 Other                                       46,876       40,446       15.9  Total loans                              $9,903,554   $8,344,076   18.7 Deposits: Non-interest bearing deposits               $2,299,070   $1,823,471   26.1 Interest bearing demand                     4,200,940    3,739,948    12.3 Savings                                     1,535,075    1,315,251    16.7 Certificates of deposit and other time      2,715,794    2,477,507    9.6 deposits  Total deposits                           10,750,879   9,356,177    14.9 Customer repurchase agreements (6)          813,020      781,052      4.1  Total deposits and customer repurchase   $11,563,899  $10,137,229  14.1 agreements (6)      F.N.B. CORPORATION (Unaudited) (Dollars in thousands)                                                             2Q14 -    2Q14 -                               2014                2013      1Q14      2Q13                               Second    First     Second    Percent   Percent Asset Quality Data            Quarter   Quarter   Quarter   Variance  Variance Non-Performing Assets Non-performing loans (8)  Non-accrual loans          $59,549   $60,039   $67,034   -0.8      -11.2  Restructured loans         20,485    19,384    17,488    5.7       17.1  Non-performing loans    80,034    79,423    84,522    0.8       -5.3 Other real estate owned (9)   40,268    43,216    37,370    -6.8      7.8  Non-performing loans and   120,302   122,639   121,892   -1.9      -1.3 OREO Non-performing investments   0         0         610       n/m       n/m  Total non-performing       $120,302  $122,639  $122,502  -1.9      -1.8 assets Non-performing loans / total  0.77%     0.80%     0.98% loans Non-performing loans / total  0.91%     0.95%     1.11% originated loans (10) Non-performing loans + OREO / 1.16%     1.23%     1.40% total loans + OREO Non-performing loans + OREO / total originated  loans + OREO (10)          1.36%     1.46%     1.59% Non-performing assets / total 0.80%     0.85%     0.97% assets Allowance Rollforward Allowance for loan losses (originated portfolio) (10)  Balance at beginning of    $107,123  $104,884  $102,504  2.1       4.5 period  Provision for loan losses  8,900     7,856     6,649     13.3      33.8  Net loan charge-offs       (4,835)   (5,617)   (6,304)   -13.9     -23.3  Allowance for loan losses  111,188   107,123   102,849   3.8       8.1 (originated portfolio) (10) Allowance for loan losses (acquired portfolio) (11)  Balance at beginning of    5,096     5,900     5,198 period  Provision for loan losses 1,505     (850)     1,254  Net loan charge-offs       (1,041)   46        (1,021)  Allowance for loan losses  5,560     5,096     5,431     9.1       2.4 (acquired portfolio) (11)  Total allowance for     $116,748  $112,219  $108,280  4.0       7.8 loan losses Allowance for loan losses /   1.13%     1.13%     1.25% total loans Allowance for loan losses (originated loans) / total  originated loans (10)      1.26%     1.28%     1.35% Allowance for loan losses (originated loans) / total  non-performing loans (8)  138.93%   134.88%   121.68% Net loan charge-offs (annualized) / total average  0.23%     0.23%     0.34% loans Net loan charge-offs on originated loans (annualized) /  total average originated   0.23%     0.28%     0.33% loans (10) Delinquency - Originated Portfolio (10) Loans 30-89 days past due     $33,822   $32,490   $37,478   4.1       -9.8 Loans 90+ days past due       6,281     5,467     5,377     14.9      16.8 Non-accrual loans             59,549    60,039    67,034    -0.8      -11.2  Total past due and         $99,652   $97,996   $109,889  1.7       -9.3 non-accrual loans Total past due and non-accrual loans / total     1.13%     1.17%     1.44% originated loans Memo item: Delinquency - Acquired Portfolio (11) (12) Loans 30-89 days past due     $30,656   $34,668   $25,218   -11.6     21.6 Loans 90+ days past due       58,636    61,629    45,653    -4.9      28.4 Non-accrual loans             0         0         0         0.0       0.0  Total past due and         $89,292   $96,297   $70,871   -7.3      26.0 non-accrual loans      F.N.B. CORPORATION (Unaudited) (Dollars in thousands)                                             For the Six Months Ended                                             June 30,                  Percent Asset Quality Data                          2014          2013        Variance Non-Performing Assets Non-performing loans (8)  Non-accrual loans                        $59,549       $67,034     -11.2  Restructured loans                       20,485        17,488      17.1  Non-performing loans                  80,034        84,522      -5.3 Other real estate owned (9)                 40,268        37,370      7.8  Non-performing loans and OREO            120,302       121,892     -1.3 Non-performing investments                 0             610         n/m  Total non-performing assets              $120,302      $122,502    -1.8 Non-performing loans / total loans          0.77%         0.98% Non-performing loans / total originated     0.91%         1.11% loans (10) Non-performing loans + OREO / total loans + 1.16%         1.40% OREO Non-performing loans + OREO / total originated  loans + OREO (10)                        1.36%         1.59% Non-performing assets / total assets        0.80%         0.97% Allowance Rollforward Allowance for loan losses (originated portfolio) (10)  Balance at beginning of period           $104,884      $100,194    4.7  Provision for loan losses                16,756        13,007      28.8  Net loan charge-offs                     (10,452)      (10,352)    1.0  Allowance for loan losses (originated    111,188       102,849     8.1 portfolio) (10) Allowance for loan losses (acquired portfolio) (11)  Balance at beginning of period           5,900         4,180  Provision for loan losses               655           2,437  Net loan charge-offs                     (995)         (1,186)  Allowance for loan losses (acquired      5,560         5,431       2.4 portfolio) (11)  Total allowance for loan losses       $116,748      $108,280    7.8 Allowance for loan losses / total loans     1.13%         1.25% Allowance for loan losses (originated loans) / total  originated loans (10)                    1.26%         1.35% Allowance for loan losses (originated loans) / total  non-performing loans (8)                138.93%       121.68% Net loan charge-offs (annualized) / total   0.23%         0.28% average loans Net loan charge-offs on originated loans (annualized) /  total average originated loans (10)      0.25%         0.28% Delinquency - Originated Portfolio (10) Loans 30-89 days past due                   $33,822       $37,478     -9.8 Loans 90+ days past due                     6,281         5,377       16.8 Non-accrual loans                           59,549        67,034      -11.2  Total past due and non-accrual loans     $99,652       $109,889    -9.3 Total past due and non-accrual loans /      1.13%         1.44% total originated loans Memo item: Delinquency - Acquired Portfolio (11) (12) Loans 30-89 days past due                   $30,656       $25,218     21.6 Loans 90+ days past due                     58,636        45,653      28.4 Non-accrual loans                           0             0           0.0  Total past due and non-accrual loans     $89,292       $70,871     26.0      F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data)                  2014                  Second Quarter                  First 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    $45,725      $21       0.18%    $46,193      $26       0.23% banks Taxable investment       2,600,855    13,578    2.04%    2,346,808    12,450    2.07% securities (13) Non-taxable investment       150,848      1,987     5.27%    149,611      1,996     5.34% securities (14) Residential mortgage loans   2,751        90        13.08%   4,844        136       11.16% held for sale Loans (14) (15) 10,109,083   110,455   4.38%    9,695,742    104,994   4.39%  Total Interest Earning 12,909,262   126,131   3.92%    12,243,198   119,602   3.95% Assets (14) Cash and due     193,670                         189,619 from banks Allowance for    (113,009)                       (110,385) loan losses Premises and     164,063                         160,111 equipment Other assets     1,556,845                       1,506,761 Total Assets     $14,710,831                     $13,989,304 Liabilities Deposits:  Interest-bearing $4,301,667   1,665     0.16%    $4,099,093   1,515     0.15% demand  Savings       1,575,453    182       0.05%    1,494,248    172       0.05%  Certificates  2,736,294    5,614     0.82%    2,695,067    5,462     0.82% and other time Customer repurchase       798,351      439       0.22%    827,851      462       0.22% agreements Other short-term 551,633      870       0.62%    390,707      757       0.75% borrowings Long-term debt  266,925      1,136     1.71%    217,894      1,046     1.99% Junior subordinated     58,893       342       2.33%    76,048       641       3.42% debt  Total Interest Bearing 10,289,216   10,248    0.40%    9,800,908    10,055    0.42% Liabilities (14) Non-interest bearing demand   2,374,516                       2,222,786 deposits Other            146,348                         136,009 liabilities Total            12,810,080                      12,159,703 Liabilities Stockholders'    1,900,751                       1,829,601 equity Total Liabilities and  $14,710,831                     $13,989,304 Stockholders' Equity Net Interest     $2,620,046                      $2,442,290 Earning Assets Net Interest                  115,883                         109,547 Income (FTE) Tax Equivalent                (1,691)                         (1,722) Adjustment Net Interest                  $114,192                        $107,825 Income Net Interest                            3.52%                           3.53% Spread Net Interest                            3.60%                           3.62% Margin (14)      F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data)                                                 2013                                                 Second Quarter                                                              Interest  Average                                                 Average      Earned    Yield                                                 Outstanding  or Paid   or Rate Assets Interest bearing deposits with banks            $39,302      $18       0.19% Taxable investment securities (13)             2,133,972    10,685    1.95% Non-taxable investment securities (14)         162,218      2,223     5.48% Residential mortgage loans held for sale        20,895       203       3.88% Loans (14) (15)                                8,529,810    96,455    4.53%  Total Interest Earning Assets (14)          10,886,197   109,584   4.03% Cash and due from banks                         175,936 Allowance for loan losses                       (109,156) Premises and equipment                          146,036 Other assets                                    1,371,016 Total Assets                                    $12,470,029 Liabilities Deposits:  Interest-bearing demand                      $3,829,847   1,433     0.15%  Savings                                      1,385,472    162       0.05%  Certificates and other time                  2,461,490    5,748     0.94% Customer repurchase agreements                  755,580      437       0.23% Other short-term borrowings                     224,769      638       1.12% Long-term debt                                 93,273       775       3.33% Junior subordinated debt                        206,603      1,902     3.69%  Total Interest Bearing Liabilities (14)  8,957,034    11,095    0.50% Non-interest bearing demand deposits            1,901,610 Other liabilities                               137,440 Total Liabilities                               10,996,084 Stockholders' equity                            1,473,945 Total Liabilities and Stockholders' Equity      $12,470,029 Net Interest Earning Assets                     $1,929,163 Net Interest Income (FTE)                                    98,489 Tax Equivalent Adjustment                                    (1,743) Net Interest Income                                          $96,746 Net Interest Spread                                                    3.54% Net Interest Margin (14)                                              3.63%      F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data)                  For the Six Months Ended June 30,                  2014                            2013                               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    $45,958      $47       0.21%    $34,712      $32       0.19% banks Taxable investment       2,474,533    26,028    2.05%    2,109,605    21,281    1.97% securities (13) Non-taxable investment       150,233      3,983     5.30%    165,799      4,560     5.50% securities (14) Residential mortgage loans   3,792        225       11.88%   26,594       483       3.63% held for sale Loans (14) (15) 9,903,554    215,450   4.38%    8,344,076    190,087   4.58%  Total Interest Earning 12,578,070   245,733   3.93%    10,680,786   216,443   4.08% Assets (14) Cash and due     191,655                         174,461 from banks Allowance for    (111,704)                       (107,009) loan losses Premises and     162,098                         142,385 equipment Other assets     1,531,942                       1,348,056 Total Assets     $14,352,061                     $12,238,679 Liabilities Deposits:  Interest-bearing $4,200,940   3,180     0.15%    $3,739,948   2,935     0.16% demand  Savings       1,535,075    353       0.05%    1,315,251    330       0.05%  Certificates  2,715,794    11,077    0.82%    2,477,507    12,343    1.00% and other time Customer repurchase       813,020      902       0.22%    781,052      921       0.23% agreements Other short-term 471,614      1,650     0.68%    216,699      1,261     1.16% borrowings Long-term debt  242,545      2,158     1.84%    92,210       1,549     3.39% Junior subordinated     67,423       983       2.94%    205,321      3,778     3.71% debt  Total Interest Bearing 10,046,411   20,303    0.41%    8,827,988    23,117    0.53% Liabilities (14) Non-interest bearing demand   2,299,070                       1,823,471 deposits Other            141,207                         144,659 liabilities Total            12,486,688                      10,796,118 Liabilities Stockholders'    1,865,373                       1,442,561 equity Total Liabilities and  $14,352,061                     $12,238,679 Stockholders' Equity Net Interest     $2,531,659                      $1,852,798 Earning Assets Net Interest                  225,430                         193,326 Income (FTE) Tax Equivalent                (3,413)                         (3,484) Adjustment Net Interest                  $222,017                        $189,842 Income Net Interest                            3.52%                           3.55% Spread Net Interest                            3.61%                           3.64% 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 understandingF.N.B. Corporation's operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation's peers. Thenon-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions useto 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 measuresincluded in this press release and derived from amounts reported in F.N.B. Corporation's financial statements.                                           2014                      2013                                          Second       First        Second                                          Quarter      Quarter      Quarter Return on average tangible equity (2): Net income (annualized)                  $139,709     $140,013     $117,094 Amortization of intangibles, net of tax  6,417        6,018        5,400 (annualized)                                          146,126      146,031      122,494 Average total shareholders' equity       1,900,751    1,829,601    1,473,945 Less: Average intangibles               (847,815)    (827,344)    (745,458)                                          1,052,936    1,002,257    728,487 Return on average tangible equity (2)    13.88%       14.57%       16.81% Return on average tangible common equity (2): Net income available to common           $131,646     $130,597     $117,094 stockholders (annualized) Amortization of intangibles, net of tax  6,417        6,018        5,400 (annualized)                                          138,063      136,615      122,494 Average total stockholders' equity       1,900,751    1,829,601    1,473,945 Less: Average preferred stockholders'   (106,882)    (106,882)    0 equity Less: Average intangibles               (847,815)    (827,344)    (745,458)                                          946,054      895,375      728,487 Return on average tangible common equity 14.59%       15.26%       16.81% (2) Return on average tangible assets (3): Net income (annualized)                  $139,709     $140,013     $117,094 Amortization of intangibles, net of tax  6,417        6,018        5,400 (annualized)                                          146,126      146,031      122,494 Average total assets                     14,710,831   13,989,304   12,470,029 Less: Average intangibles               (847,815)    (827,344)    (745,458)                                          13,863,016   13,161,960   11,724,571 Return on average tangible assets (3)    1.05%        1.11%        1.04% Tangible book value per share: Total shareholders' equity               $1,908,077   $1,884,987   $1,468,998 Less: preferred shareholders' equity    (106,882)    (106,882)    0 Less: intangibles                       (846,830)    (849,563)    (746,981)                                          954,365      928,541      722,017 Ending shares outstanding                166,559,258  166,377,327  145,151,279 Tangible book value per share            $5.73        $5.58        $4.97      F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data)                                                       For the Six Months Ended                                                       June 30,                                                       2014         2013 Return on average tangible equity (2): Net income (annualized)                               $139,860     $116,418 Amortization of intangibles, net of tax (annualized)  6,218        5,237                                                       146,078      121,655 Average total shareholders' equity                    1,865,373    1,442,561 Less: Average intangibles                            (837,637)    (729,054)                                                       1,027,736    713,507 Return on average tangible equity (2)                 14.21%       17.05% Return on average tangible common equity (2): Net income available to common stockholders           $131,124     $116,418 (annualized) Amortization of intangibles, net of tax (annualized)  6,218        5,237                                                       137,342      121,655 Average total stockholders' equity                    1,865,373    1,442,561 Less: Average preferred stockholders' equity         (106,882)    0 Less: Average intangibles                            (837,637)    (729,054)                                                       920,854      713,507 Return on average tangible common equity (2)          14.91%       17.05% Return on average tangible assets (3): Net income (annualized)                               $139,860     $116,418 Amortization of intangibles, net of tax (annualized)  6,218        5,237                                                       146,078      121,655 Average total assets                                  14,352,061   12,238,679 Less: Average intangibles                            (837,637)    (729,054)                                                       13,514,424   11,509,625 Return on average tangible assets (3)                 1.08%        1.06% Tangible book value per share: Total shareholders' equity                            $1,908,077   $1,468,998 Less: preferred shareholders' equity                 (106,882)    0 Less: intangibles                                    (846,830)    (746,981)                                                       954,365      722,018 Ending shares outstanding                             166,559,258  145,151,279 Tangible book value per share                         $5.73        $4.97      F.N.B. CORPORATION (Unaudited) (Dollars in thousands)                                             2014                    2013                                             Second      First       Second                                             Quarter     Quarter     Quarter Tangible equity / tangible assets (period end): Total shareholders' equity                  $1,908,077  $1,884,987  $1,468,998 Less: intangibles                          (846,830)   (849,563)   (746,981)                                             1,061,247   1,035,423   722,017 Total assets                                15,019,247  14,476,510  12,573,391 Less: intangibles                          (846,830)   (849,563)   (746,981)                                             14,172,417  13,626,947  11,826,410 Tangible equity / tangible assets (period   7.49%       7.60%       6.11% end) Tangible common equity / tangible assets (period end): Total stockholders' equity                  $1,908,077  $1,884,987  $1,468,998 Less: preferred stockholders' equity       (106,882)   (106,882)   0 Less: intangibles                          (846,830)   (849,563)   (746,981)                                             954,365     928,541     722,017 Total assets                                15,019,247  14,476,510  12,573,391 Less: intangibles                          (846,830)   (849,563)   (746,981)                                             14,172,417  13,626,947  11,826,410 Tangible equity / tangible assets (period   6.73%       6.81%       6.11% end) Tangible equity, excluding AOCI / tangible  assets (period end) (7): Total shareholders' equity                  $1,908,077  $1,884,987  $1,468,998 Less: preferred shareholders' equity       (106,882)   (106,882)   0 Less: intangibles                          (846,830)   (849,563)   (746,981) Less: AOCI                                 36,559      44,041      62,077                                             990,924     972,582     784,094 Total assets                                15,019,247  14,476,510  12,573,391 Less: intangibles                          (846,830)   (849,563)   (746,981)                                             14,172,417  13,626,947  11,826,410 Tangible equity, excluding AOCI / tangible  assets (period end) (7)                  6.99%       7.14%       6.63%       Net interest income is also presented on a fully taxable equivalent (FTE) (1)  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 income (2)  excluding amortization of intangibles by average equity less average      intangibles.      Return on average tangible assets is calculated by dividing net income (3)  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 expense less (5)  amortization of intangibles, other real estate owned expense and merger      and severance costs by the sum of net interest income on a fully taxable      equivalent basis plus non-interest income less securities gains. (6)  Customer repos are included in short-term borrowings on the balance      sheet.      Accumulated other comprehensive income (AOCI) is comprised of unrealized (7)  losses on securities, unrealized losses on derivative instruments and      unrecognized 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 acquired (9)  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 fair (11) 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 adjusts      for the tax benefit of income on certain tax-exempt loans and investments (14) 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 consist of (15) 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 Contact - Cynthia Christopher, 724-983-3429, 330-507-8723 (cell), christoc@fnb-corp.com; Media Contact - Jennifer Reel, 724-983-4856, 724-699-6389 (cell), reel@fnb-corp.com  
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