F.N.B. CORPORATION 
By HERMITAGE, Pa., Jan. 25 /PRNewswire-FirstCall/ -- F.N.B. Corporation (NYSE: FNB) today reported financial results for the fourth quarter and full year ended December 31, 2009. Net income was $4.6 million, or $0.04 per diluted share, for the fourth quarter of 2009, compared to third quarter of 2009 net income available to common shareholders of $4.8 million, or $0.04 per diluted common share, and a net loss for the fourth quarter of 2008 of $18.9 million, or $0.21 per diluted share. Full year 2009 net income available to common shareholders totaled $32.8 million, or $0.32 per diluted common share, compared to $35.6 million, or $0.44 per diluted share, for the full year ended December 31, 2008.
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Results for the fourth quarter of 2009 included $2.4 million (after-tax) in non-cash other-than-temporary impairment charges primarily related to pooled trust preferred securities and $0.6 million (after-tax) in litigation settlement costs. Results for the fourth quarter of 2009 also included a $6.2 million (after-tax) increase in the provision for loan losses, compared to the third quarter of 2009, primarily related to the Florida portfolio. In total, these charges reduced net income for the fourth quarter of 2009 by $9.2 million or $0.08 per diluted share.
"FNB continues to focus on its organic growth strategy and capitalizing on the opportunities created by the competitive disruption in our Pennsylvania markets," said Stephen J. Gurgovits, President and Chief Executive Officer of F.N.B. Corporation. "We are pleased with the operating success we are achieving growing loans and deposits, generating revenue growth and maintaining expense control in a challenging credit environment."
F.N.B. Corporation's performance ratios this quarter were as follows: return on average tangible common equity (non-GAAP measure) was 4.66%; return on average equity was 1.72%; return on average tangible assets (non-GAAP measure) was 0.28% and return on average assets was 0.21%. A reconciliation of GAAP measures to non-GAAP measures is included in the tables that accompany this press release.
Net Interest Income
Net interest income on a fully taxable equivalent basis for the fourth quarter of 2009 totaled $71.2 million, representing an increase of $2.1 million, or 11.8% annualized, over the third quarter of 2009. The improvement of net interest income in the fourth quarter reflects a combination of a 7 basis point expansion of the net interest margin and a 4.8% annualized increase in average earning assets. The fourth quarter net interest margin of 3.85% marked the third consecutive quarter in which the margin has expanded.
Total average loans for the fourth quarter of 2009 were $5.9 billion, representing an increase of $62.5 million, or 4.3% on an annualized basis, compared to the third quarter of 2009. Average commercial loans in the fourth quarter increased $54.6 million, or 6.8% annualized, compared to the third quarter of 2009, with the average Pennsylvania commercial loan portfolio growing $69.9 million, or 9.5% annualized, and the average Florida portfolio decreasing $15.3 million or 22.2% annualized.
Average consumer loans in the fourth quarter of 2009 were essentially unchanged, with growth of $1.8 million compared to the third quarter of 2009. This total includes $11.2 million or 3.2% annualized growth in home equity lending (comprised of consumer lines of credit and direct installment loans) through a combination of customer preferences for these products and modest increases in line utilization. This growth was partially offset by an $8.1 million, or 5.9% annualized, decrease in the average indirect loan portfolio primarily related to seasonally lower auto sales in the fourth quarter of 2009 and the discontinuation of the federal government's "Cash for Clunkers" program at the end of the third quarter of 2009.
"The growth in the Pennsylvania commercial loan portfolio demonstrates the strength of our commercial lending business as we capitalize on the significant opportunities created by competitor disruption in the marketplace," noted Mr. Gurgovits. "We are pleased that our commercial team generated 115 significant new commercial relationships with over $400 million in new commitments during 2009."
"The momentum to generate strong growth in transaction deposits and treasury management balances also continued in the fourth quarter," said Mr. Gurgovits. "We are pleased with these results as we are winning new customer relationships and gaining market share."
Average transaction deposits in the fourth quarter increased $48.7 million, or 4.8% annualized, compared to the third quarter of 2009. Average treasury management balances grew $70.9 million, or 60.5% annualized in the fourth quarter of 2009, compared to the third quarter of 2009, due to a combination of new account acquisition and seasonality factors. Average time deposits decreased $16.6 million, or 3.0% annualized, in the fourth quarter of 2009, compared to the third quarter, as FNB continues to focus its strategy on building transaction accounts.
Non-Interest Income
Non-interest income increased to $25.4 million in the fourth quarter of 2009, compared to $24.0 million in the third quarter of 2009, due to increases in securities commissions and fees and other non-interest income, which were partially offset by other-than-temporary impairment charges.
In looking at the major components of the fourth quarter non-interest income, securities commissions and fees increased $0.8 million, or 52.5%, due to a successful fall sales campaign. Additionally, other non-interest income increased $1.1 million to $4.5 million for the fourth quarter of 2009, reflecting a $0.7 million increase in swap fees earned from commercial customers. Non-interest income, excluding other-than-temporary impairment charges, represented 29% of revenue for the fourth quarter of 2009, compared to 28% for the third quarter of 2009.
The impairment losses recognized for the fourth quarter of 2009 totaled $3.7 million, compared to $3.3 million for the third quarter of 2009. The current quarter impairment charges were primarily related to three pooled trust preferred securities that experienced deterioration in collateral performance and higher levels of future projected defaults. The pooled trust preferred securities portfolio is comprised of 13 securities with an original cost of $41.3 million. To date, credit-related impairment charges of $16.1 million have been recognized on this portfolio, which have reduced the carrying value to $25.2 million as of December 31, 2009, with a remaining after-tax unrealized loss of $11.4 million included in accumulated other comprehensive income.
Non-Interest Expense
Non-interest expense totaled $65.8 million in the fourth quarter of 2009, compared to $62.3 million in the third quarter of 2009. The increased expense is a result of a $2.6 million increase in other real estate owned (OREO) expense (Florida related) and net litigation settlement costs of $1.0 million. The $1.0 million in litigation costs is comprised of a $1.7 million settlement liability (previously reported in a Form 8-K dated December 29, 2009), net of $0.7 million covered under an insurance policy.
Credit Quality
"We continue to be pleased with the performance of our Pennsylvania and Regency loan portfolios at this point in the economic cycle," remarked Mr. Gurgovits. "The duration of the slow economic environment, including high unemployment rates, remains a challenge for businesses and consumers throughout the country. Regarding our Florida portfolio, we continue to make progress reducing our exposure in the more challenging Florida market."
Changes in overall credit quality for the fourth quarter of 2009 were primarily due to the performance of the Florida portfolio. Non-performing loans and OREO as a percentage of total loans and OREO at December 31, 2009 increased 22 basis points to 2.84% compared to 2.62% at September 30, 2009. Annualized net charge-offs equaled 1.83% of average loans for the fourth quarter of 2009, primarily driven by increased net charge-offs related to Florida, compared to 0.68% of average loans for the third quarter of 2009.
At December 31, 2009, the ratio of the allowance for loan losses to total loans equaled 1.79%, compared to 1.81% at September 30, 2009. As a percentage of non-performing loans, the allowance for loan losses equaled 71.9% at December 31, 2009, compared to 79.1% at September 30, 2009. The provision for loan losses totaled $25.9 million for the fourth quarter of 2009, which was $9.5 million higher than the third quarter of 2009.
The Pennsylvania loan portfolio totaled $5.4 billion at December 31, 2009 (93.0% of the total loan portfolio) and delivered credit quality metrics reflecting a slow economic environment characterized by a slightly increasing level of non-performing loans and net charge-offs. Pennsylvania non-performing loans and OREO totaled $76.0 million or 1.39% of total loans and OREO at December 31, 2009, compared to $69.5 million or 1.28% at September 30, 2009. Net loan charge-offs totaled $5.1 million or 0.37% annualized of average loans for the fourth quarter of 2009, up slightly compared to $4.5 million or 0.33% annualized of average loans for the third quarter of 2009. Total past dues and non-accrual loans were 2.07% of total loans at December 31, 2009, a slight increase compared to 2.02% at September 30, 2009.
The Florida loan portfolio totaled $243.9 million at December 31, 2009 (4.2% of the total loan portfolio) and delivered credit quality metrics reflecting the continued challenging economic environment and weakness in the Florida real estate market. Florida non-performing loans and OREO totaled $82.1 million or 32.28% of total loans and OREO at December 31, 2009, compared to $76.1 million or 27.22% at September 30, 2009. Net loan charge-offs totaled $20.3 million for the fourth quarter of 2009, compared to $4.1 million for the third quarter of 2009. The increased charge-offs were largely a result of declining property values in the Florida market.
The Regency loan portfolio totaled $162.0 million at December 31, 2009 (2.8% of the total loan portfolio) and continued to deliver good credit quality metrics for a consumer finance company. Regency non-performing loans and OREO totaled $8.8 million or 5.40% of total loans and OREO at December 31, 2009, compared to $8.0 million or 5.02% at September 30, 2009. Net loan charge-offs totaled $1.7 million or 4.30% annualized of average loans for the fourth quarter of 2009, compared to $1.5 million or 3.64% annualized of average loans for the third quarter of 2009. This increase reflects expected fourth quarter seasonality and the low level of charge-offs experienced in this portfolio during the third quarter of 2009. Total past dues and non-accrual loans were 4.57% of total loans at December 31, 2009, slightly lower than 4.58% at September 30, 2009.
Capital Position
The Corporation's capital ratios continue to exceed federal bank regulatory agency "well capitalized" thresholds. As of December 31, 2009, the Corporation's estimated total risk-based capital ratio was 12.7%, the estimated tier 1 risk-based capital ratio was 11.3% and the leverage capital ratio was 8.7%. These compare to the same ratios as of September 30, 2009 of 13.0%, 11.5% and 8.7% and as of December 31, 2008 of 11.1%, 9.7% and 7.3%, respectively.
At December 31, 2009, the tangible common equity to tangible assets ratio (non-GAAP measure) equaled 5.84%, compared to 6.02% at September 30, 2009 and 4.51% at December 31, 2008. The tangible book value per share (non-GAAP measure) equaled $4.17, compared to $4.24 at September 30, 2009 and $3.92 at December 31, 2008.
Full Year 2009 Results
For the year ended December 31, 2009, F.N.B. Corporation's net income available to common shareholders totaled $32.8 million, or $0.32 per diluted common share, compared to $35.6 million, or $0.44 per diluted share, for the year ended December 31, 2008. For 2009, F.N.B.'s return on average tangible common equity (non-GAAP measure) was 8.74%, return on average equity was 3.87%, return on average tangible assets (non-GAAP measure) was 0.57%, and return on average assets was 0.48%.
Net interest income on a fully taxable equivalent basis totaled $272.9 million for 2009, representing an increase of $15.1 million or 5.8% over 2008. The 2009 increased net interest income reflects growth in average earning assets partially offset by a lower net interest margin given the lower interest rate environment compared to 2008. Average earning assets increased 9.0% in 2009, with average loans increasing 7.8% compared to 2008. Loan growth occurred in all categories other than direct installments (3.9% decrease), led by 9.6% growth in commercial lending. Average deposits and treasury management balances increased 13.1%, with average treasury management balances increasing 26.6% and average transaction deposits growing 16.2% compared to 2008. These increases reflect organic growth and the benefit from acquisitions completed in 2008.
Non-interest income totaled $106.0 million for 2009, an increase of 23.1% compared to 2008. Service charges increased 5.6%, insurance commissions increased 7.1%, gain on sale of residential mortgage loans increased 67.8% and other non-interest income increased $6.4 million or 63.4%. The increase in other non-interest income was largely a result of higher impairment losses in 2008, a gain on the sale of a building in 2009 and higher recoveries on impaired loans acquired through acquisitions. Results for 2009, compared to 2008, included lower non-cash other-than-temporary impairment charges on securities of $9.3 million, lower securities commissions and fees of 8.2% and lower trust income of 2.3%. The lower securities commissions and fees and lower trust income are primarily due to the negative effect of the market conditions experienced during late 2008 and 2009. The higher non-interest income also reflects the benefit from acquisitions completed in 2008.
Non-interest expense totaled $255.3 million for 2009, an increase of 14.7% compared to 2008. Other non-interest expense increases for 2009 include higher FDIC insurance premiums of $13.0 million, higher OREO-related expenses of $4.0 million, and higher litigation costs of $1.0 million as compared to 2008, which were partially offset by $4.7 million in merger costs incurred in 2008. Higher non-interest expense also reflects the effect of the acquisitions in 2008. As a result of these increases, the efficiency ratio was 65.5% for 2009, compared to 62.9% for 2008.
The provision for loan losses for 2009 totaled $66.8 million compared to $72.4 million for 2008, a 7.7% decrease. The provision in each of 2009 and 2008 was substantially higher than historical levels primarily due to the performance of the Florida loan portfolio.
Conference Call
F.N.B. Corporation will host its quarterly conference call to discuss its financial results for the fourth quarter of 2009 on Tuesday, January 26, 2010, at 8:00 AM Eastern Time. The call can be accessed by dialing (877) 591-4951 or (719) 325-4821 for international callers; the confirmation number is 5204528.
A replay of the call will be available from 11:00 AM Eastern Time on the day of the call until midnight Eastern Time on Tuesday, February 2, 2010. The replay can be accessed by dialing (888) 203-1112 or (719) 457-0820 for international callers; the confirmation number is 5204528. A transcript of the call will be posted to the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $8.7 billion as of December 31, 2009. F.N.B. Corporation is a leading provider of commercial and retail banking, leasing, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania and Ohio, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, F.N.B. Capital Corporation, LLC, Regency Finance Company and Bank Capital Services. It also operates consumer finance offices in Tennessee and loan production offices in Pennsylvania and Florida.
Forward-looking Statements
This press release of F.N.B. Corporation and the reports F.N.B. Corporation files with the Securities and Exchange Commission often contain "forward-looking statements" relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of F.N.B. Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause F.N.B. Corporation's future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which F.N.B. Corporation is engaged; (6) technological issues which may adversely affect F.N.B. Corporation's financial operations or customers; (7) changes in the securities markets (8) risk factors mentioned in the reports and registration statements F.N.B. Corporation files with the Securities and Exchange Commission; (9) housing prices; (10) job market; (11) consumer confidence and spending habits; (12) estimates of fair value of certain F.N.B. Corporation assets and liabilities or (13) various monetary and fiscal policies and regulations of the U.S. Government. F.N.B. Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
DATA SHEETS FOLLOW
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
2009 2008
-------------------- ------
Fourth Third Fourth
Statement of earnings Quarter Quarter Quarter
--------------------- ------- ------- -------
Interest income $96,053 $96,533 $107,158
Interest expense 26,468 28,989 38,793
------ ------ ------
Net interest income 69,585 67,544 68,365
Taxable equivalent
adjustment 1,661 1,644 1,597
----- ----- -----
Net interest income(FTE)(1) 71,246 69,188 69,962
Provision for loan losses 25,924 16,455 51,298
------ ------ ------
Net interest income after
provision (FTE) 45,322 52,733 18,664
Impairment losses on securities(2) (9,366) (14,234) (16,698)
Non-credit related losses on
securities not expected
to be sold (recognized in
other comprehensive income) 5,707 10,943 0
----- ------ ---
Net impairment losses on
securities (3,659) (3,291) (16,698)
Service charges 14,781 14,760 14,643
Insurance commissions and fees 3,794 3,960 3,508
Securities commissions and fees 2,213 1,451 2,500
Trust income 3,025 2,856 3,081
Gain on sale of securities 30 154 5
Gain on sale of loans 720 666 366
Other 4,483 3,406 853
----- ----- ---
Total non-interest income 25,387 23,962 8,258
Salaries and employee benefits 31,769 31,377 29,536
Occupancy and equipment 9,443 9,258 9,414
Amortization of intangibles 1,728 1,732 1,988
Other 22,841 19,954 17,478
------ ------ ------
Total non-interest expense 65,781 62,321 58,416
Income (loss) before income taxes 4,928 14,374 (31,494)
Taxable equivalent adjustment 1,661 1,644 1,597
Income taxes (benefit) (1,289) 2,424 (14,185)
------ ----- -------
Net income 4,556 10,306 (18,906)
Preferred stock dividends and
discount amortization 0 5,496 0
--- ----- ---
Net income available to common
shareholders $4,556 $4,810 ($18,906)
====== ====== ========
Earnings (loss) per common share
Basic $0.04 $0.04 ($0.21)
Diluted $0.04 $0.04 ($0.21)
Performance ratios
------------------
Return on average equity 1.72% 3.62% -7.74%
Return on average tangible
equity(3)(7) 4.66% 8.13% -17.67%
Return on average tangible
common equity(3)(7) 4.66% 4.85% -17.67%
Return on average assets 0.21% 0.47% -0.89%
Return on average tangible
assets(4)(7) 0.28% 0.56% -0.89%
Net interest margin(FTE)(1) 3.85% 3.78% 3.88%
Yield on earning assets(FTE)(1) 5.27% 5.36% 6.02%
Cost of funds 1.60% 1.76% 2.39%
Efficiency ratio(FTE)(1)(5) 66.28% 65.04% 72.14%
Common stock data
-----------------
Average basic shares
outstanding 113,592,665 113,571,703 89,304,839
Average diluted shares
outstanding 113,966,034 113,869,785 89,588,706
Ending shares outstanding 114,111,695 113,990,095 89,700,152
Common book value per share $9.14 $9.23 $10.32
Tangible common book value
per share(7) $4.17 $4.24 $3.92
Tangible common book value
per share excluding AOCI(6)(7) $4.43 $4.50 $4.21
Dividend payout ratio (common) 301.32% 285.14% -114.06%
4th Qtr 4th Qtr
2009 - 2009 -
3rd Qtr 4th Qtr
2009 2008
Percent Percent
Statement of earnings Variance Variance
--------------------- -------- --------
Interest income -0.5 -10.4
Interest expense -8.7 -31.8
Net interest income 3.0 1.8
Taxable equivalent adjustment 1.0 4.0
Net interest income (FTE) (1) 3.0 1.8
Provision for loan losses 57.5 -49.5
Net interest income after
provision (FTE) -14.1 142.8
Impairment losses on securities (2) n/m n/m
Non-credit related losses on
securities not expected to be sold
(recognized in other comprehensive
income) n/m n/m
Net impairment losses on securities n/m n/m
Service charges 0.1 0.9
Insurance commissions and fees -4.2 8.2
Securities commissions and fees 52.5 -11.5
Trust income 5.9 -1.8
Gain on sale of securities -80.5 554.5
Gain on sale of loans 8.1 96.4
Other 31.7 425.8
Total non-interest income 5.9 207.4
Salaries and employee benefits 1.2 7.6
Occupancy and equipment 2.0 0.3
Amortization of intangibles -0.2 -13.0
Other 14.5 30.7
Total non-interest expense 5.6 12.6
Income (loss) before income taxes -65.7 -115.6
Taxable equivalent adjustment 1.0 4.0
Income taxes (benefit) -153.2 -90.9
Net income -55.8 -124.1
Preferred stock dividends and
discount amortization n/m n/m
Net income available to common
shareholders -5.3 -124.1
Earnings (loss) per common share
Basic 0.0 -119.0
Diluted 0.0 -119.0
Common stock data
-----------------
Average basic shares outstanding 0.0 27.2
Average diluted shares outstanding 0.1 27.2
Ending shares outstanding 0.1 27.2
Common book value per share -1.0 -11.4
Tangible common book value per share(7) -1.7 6.3
Tangible common book value per share
excluding AOCI(6)(7) -1.4 5.2
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Year
Ended December 31,
------------------ Percent
Statement of earnings 2009 2008 Variance
--------------------- ---- ---- --------
Interest income $387,722 $409,781 -5.4
Interest expense 121,179 157,989 -23.3
------- -------
Net interest income 266,543 251,792 5.9
Taxable equivalent
adjustment 6,350 6,037 5.2
----- -----
Net interest income
(FTE) (1) 272,893 257,829 5.8
Provision for loan losses 66,802 72,371 -7.7
------ ------
Net interest income
after provision
(FTE) 206,091 185,458 11.1
Impairment losses on
securities (2) (25,232) (17,189) n/m
Non-credit related losses
on securities not expected
to be sold (recognized in
other comprehensive income) 17,339 0 n/m
------ ---
Net impairment losses on
securities (7,893) (17,189) n/m
Service charges 57,736 54,691 5.6
Insurance commissions and
fees 16,672 15,572 7.1
Securities commissions and
fees 7,460 8,128 -8.2
Trust income 11,811 12,095 -2.3
Gain on sale of securities 528 834 -36.7
Gain on sale of loans 3,061 1,824 67.8
Other 16,603 10,160 63.4
------ ------
Total non-interest
income 105,978 86,115 23.1
Salaries and employee
benefits 126,865 116,819 8.6
Occupancy and equipment 38,249 34,245 11.7
Amortization of intangibles 7,088 6,442 10.0
Other 83,137 65,198 27.5
------ ------
Total non-interest
expense 255,339 222,704 14.7
Income (loss) before income
taxes 56,730 48,869 16.1
Taxable equivalent
adjustment 6,350 6,037 5.2
Income taxes (benefit) 9,269 7,237 28.1
----- -----
Net income 41,111 35,595 15.5
Preferred stock
dividends and
discount
amortization 8,308 0 n/m
----- ---
Net income available
to common
shareholders $32,803 $35,595 -7.8
======= =======
Earnings (loss) per common
share
Basic $0.32 $0.44 -27.3
Diluted $0.32 $0.44 -27.3
Performance ratios
------------------
Return on average equity 3.87% 4.20%
Return on average tangible
equity (3) (7) 9.30% 10.63%
Return on average tangible
common equity (3) (7) 8.74% 10.63%
Return on average assets 0.48% 0.46%
Return on average tangible
assets (4) (7) 0.57% 0.55%
Net interest margin (FTE)
(1) 3.75% 3.88%
Yield on earning assets
(FTE) (1) 5.42% 6.25%
Cost of funds 1.86% 2.66%
Efficiency ratio (FTE) (1)
(5) 65.52% 62.88%
Common stock data
-----------------
Average basic shares
outstanding 102,580,415 80,654,153 27.2
Average diluted shares
outstanding 102,849,334 80,997,987 27.0
Ending shares outstanding 114,111,695 89,700,152 27.2
Common book value per share $9.14 $10.32 -11.4
Tangible common book value
per share (7) $4.17 $3.92 6.3
Tangible common book value
per share
excluding AOCI (6) (7) $4.43 $4.21 5.2
Dividend payout ratio
(common) 149.50% 219.92%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
2009 2008
---- ----
Fourth Third Fourth
Average balances Quarter Quarter Quarter
---------------- ------- ------- -------
Total assets $8,681,532 $8,701,853 $8,414,609
Earning assets 7,369,320 7,281,709 7,197,213
Securities 1,489,608 1,466,176 1,330,686
Short-term investments 3,202 1,520 4,907
Loans, net of unearned income 5,876,510 5,814,013 5,861,620
Allowance for loan losses 110,974 103,249 76,400
Goodwill and intangibles 568,666 570,705 575,668
Deposits and treasury
management accounts (8) 6,843,748 6,740,656 6,529,246
Short-term borrowings 130,430 118,274 128,081
Long-term debt 346,819 412,411 494,065
Trust preferred securities 204,793 204,962 205,468
Shareholders' equity - common 1,052,483 1,056,171 972,138
Shareholders' equity -
preferred 0 72,727 0
Asset quality data
------------------
Non-accrual loans $133,891 $125,630 $139,607
Restructured loans 11,624 8,282 3,872
------ ----- -----
Non-performing loans 145,515 133,912 143,479
Other real estate owned 21,367 19,741 9,177
------ ------ -----
Total non-performing loans and
OREO 166,882 153,653 152,656
Non-performing investments 4,825 5,758 10,456
----- ----- ------
Non-performing assets $171,707 $159,411 $163,112
======== ======== ========
Net loan charge-offs $27,161 $9,978 $21,148
Allowance for loan losses 104,655 105,892 104,730
Non-performing loans /total
loans 2.49% 2.29% 2.47%
Non-performing loans + OREO /
total loans + OREO 2.84% 2.62% 2.62%
Allowance for loan losses /
total loans 1.79% 1.81% 1.80%
Allowance for loan losses /
non-performing loans 71.92% 79.08% 72.99%
Net loan charge-offs
(annualized) /
average loans 1.83% 0.68% 1.44%
Balances at period end
----------------------
Total assets $8,709,077 $8,595,872 $8,364,811
Earning assets 7,358,132 7,357,135 7,160,200
Securities 1,490,630 1,497,378 1,326,133
Short-term investments 5,386 3,293 2,978
Loans, net of unearned income 5,849,361 5,837,402 5,820,380
Goodwill and intangibles 567,851 569,579 574,507
Deposits and treasury
management accounts (8) 6,917,007 6,737,098 6,469,328
Short-term borrowings 132,383 128,092 181,558
Long-term debt 324,877 379,257 490,250
Trust preferred securities 204,711 204,880 205,386
Shareholders' equity - common 1,043,302 1,052,589 925,984
Shareholders' equity -
preferred 0 0 0
Capital ratios
--------------
Equity/assets (period end) 11.98% 12.25% 11.07%
Leverage ratio 8.68% 8.73% 7.34%
Tangible equity/tangible
assets (period end) (7) 5.84% 6.02% 4.51%
Tangible common equity/
tangible assets (period end)
(6) 5.84% 6.02% 4.51%
Tangible common equity,
excluding AOCI/
tangible assets (period end)
(6) (7) 6.22% 6.39% 4.85%
4th Qtr 4th Qtr
2009 - 2009 -
3rd Qtr 4th Qtr
2009 2008
Percent Percent
Average balances Variance Variance
---------------- -------- --------
Total assets -0.2 3.2
Earning assets 1.2 2.4
Securities 1.6 11.9
Short-term investments 110.7 -34.8
Loans, net of unearned income 1.1 0.3
Allowance for loan losses 7.5 45.3
Goodwill and intangibles -0.4 -1.2
Deposits and treasury management
accounts (8) 1.5 4.8
Short-term borrowings 10.3 1.8
Long-term debt -15.9 -29.8
Trust preferred securities -0.1 -0.3
Shareholders' equity - common -0.3 8.3
Shareholders' equity - preferred -100.0 0.0
Asset quality data
------------------
Non-accrual loans 6.6 -4.1
Restructured loans 40.4 200.2
Non-performing loans 8.7 1.4
Other real estate owned 8.2 132.8
Total non-performing loans and OREO 8.6 9.3
Non-performing investments (9) -16.2 -53.9
Non-performing assets 7.7 5.3
Net loan charge-offs 172.2 28.4
Allowance for loan losses -1.2 -0.1
Balances at period end
----------------------
Total assets 1.3 4.1
Earning assets 0.0 2.8
Securities -0.5 12.4
Short-term investments 63.5 80.9
Loans, net of unearned income 0.2 0.5
Goodwill and intangibles -0.3 -1.2
Deposits and treasury management
accounts (8) 2.7 6.9
Short-term borrowings 3.4 -27.1
Long-term debt -14.3 -33.7
Trust preferred securities -0.1 -0.3
Shareholders' equity - common -0.9 12.7
Shareholders' equity - preferred 0.0 0.0
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31, Percent
------------------
Average balances 2009 2008 Variance
---------------- ---- ---- --------
Total assets $8,606,188 $7,696,895 11.8
Earning assets 7,247,283 6,649,735 9.0
Securities 1,399,444 1,220,772 14.6
Short-term investments 16,663 18,941 -12.0
Loans, net of unearned income 5,831,176 5,410,022 7.8
Allowance for loan losses 107,015 67,962 57.5
Goodwill and intangibles 571,492 473,228 20.8
Deposits and treasury
management accounts (8) 6,706,830 5,932,217 13.1
Short-term borrowings 114,341 143,154 -20.1
Long-term debt 419,570 498,262 -15.8
Trust preferred securities 205,045 192,060 6.8
Shareholders' equity - common 999,502 847,417 17.9
Shareholders' equity -
preferred 63,602 0 0.0
Asset quality data
------------------
Non-accrual loans $133,891 $139,607 -4.1
Restructured loans 11,624 3,872 200.2
------ -----
Non-performing loans 145,515 143,479 1.4
Other real estate owned 21,367 9,177 132.8
------ -----
Total non-performing loans and
OREO 166,882 152,656 9.3
Non-performing investments 4,825 10,456 0.0
----- ------
Non-performing assets $171,707 $163,112 5.3
======== ========
Net loan charge-offs $66,892 $32,596 105.2
Allowance for loan losses 104,655 104,730 -0.1
Non-performing loans /total
loans 2.49% 2.47%
Non-performing loans + OREO /
total loans + OREO 2.84% 2.62%
Allowance for loan losses /
total loans 1.79% 1.80%
Allowance for loan losses /
non-performing loans 71.92% 72.99%
Net loan charge-offs
(annualized) /
average loans 1.15% 0.60%
Balances at period end
----------------------
Total assets $8,709,077 $8,364,811 4.1
Earning assets 7,358,132 7,160,200 2.8
Securities 1,490,630 1,326,133 12.4
Short-term investments 5,386 2,978 80.9
Loans, net of unearned income 5,849,361 5,820,380 0.5
Goodwill and intangibles 567,851 574,507 -1.2
Deposits and treasury
management accounts (8) 6,917,007 6,469,328 6.9
Short-term borrowings 132,383 181,558 -27.1
Long-term debt 324,877 490,250 -33.7
Trust preferred securities 204,711 205,386 -0.3
Shareholders' equity - common 1,043,302 925,984 12.7
Shareholders' equity -
preferred 0 0 0.0
Capital ratios
--------------
Equity/assets (period end) 11.98% 11.07%
Leverage ratio 8.68% 7.34%
Tangible equity/tangible
assets (period end) (7) 5.84% 4.51%
Tangible common equity/
tangible assets (period end)
(6) 5.84% 4.51%
Tangible common equity,
excluding AOCI/
tangible assets (period end)
(6) (7) 6.22% 4.85%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
2009 2008
---- ----
Fourth Third Fourth
Average balances Quarter Quarter Quarter
---------------- ------- ------- -------
Loans:
Commercial $3,250,530 $3,195,950 $3,203,713
Direct installment 990,573 997,319 1,083,072
Residential mortgages 612,146 613,375 651,141
Indirect installment 535,856 544,002 522,633
Consumer LOC 401,127 383,207 332,983
Other 86,278 80,160 68,078
------ ------ ------
Total loans $5,876,510 $5,814,013 $5,861,620
========== ========== ==========
Deposits:
Non-interest bearing deposits $978,110 $951,112 $918,143
Savings and NOW 3,122,911 3,101,168 2,847,628
Certificates of deposit and
other time deposits 2,206,537 2,223,126 2,331,236
--------- --------- ---------
Total deposits 6,307,558 6,275,406 6,097,007
Treasury management accounts (8) 536,190 465,250 432,239
------- ------- -------
Total deposits and treasury
management accounts (8) $6,843,748 $6,740,656 $6,529,246
========== ========== ==========
Balances at period end
----------------------
Loans:
Commercial $3,234,738 $3,226,720 $3,173,941
Direct installment 985,746 993,863 1,070,791
Residential mortgages 605,219 594,586 638,356
Indirect installment 527,818 544,579 531,430
Consumer LOC 408,469 395,366 340,750
Other 87,371 82,288 65,112
------ ------ ------
Total loans $5,849,361 $5,837,402 $5,820,380
========== ========== ==========
Deposits:
Non-interest bearing deposits $992,298 $972,859 $919,539
Savings and NOW 3,182,909 3,072,601 2,816,628
Certificates of deposit and
other time deposits 2,205,016 2,213,323 2,318,456
--------- --------- ---------
Total deposits 6,380,223 6,258,783 6,054,623
Treasury management accounts (8) 536,784 478,315 414,705
------- ------- -------
Total deposits and treasury
management accounts (8) $6,917,007 $6,737,098 $6,469,328
4th Qtr 4th Qtr
2009 - 2009 -
3rd Qtr 4th Qtr
2009 2008
Percent Percent
Average balances Variance Variance
---------------- -------- --------
Loans:
Commercial 1.7 1.5
Direct installment -0.7 -8.5
Residential mortgages -0.2 -6.0
Indirect installment -1.5 2.5
Consumer LOC 4.7 20.5
Other 7.6 26.7
Total loans 1.1 0.3
Deposits:
Non-interest bearing deposits 2.8 6.5
Savings and NOW 0.7 9.7
Certificates of deposit and other time
deposits -0.7 -5.3
Total deposits 0.5 3.5
Treasury management accounts (8) 15.2 24.0
Total deposits and treasury management
accounts (8) 1.5 4.8
Balances at period end
----------------------
Loans:
Commercial 0.2 1.9
Direct installment -0.8 -7.9
Residential mortgages 1.8 -5.2
Indirect installment -3.1 -0.7
Consumer LOC 3.3 19.9
Other 6.2 34.2
Total loans 0.2 0.5
Deposits:
Non-interest bearing deposits 2.0 7.9
Savings and NOW 3.6 13.0
Certificates of deposit and other time
deposits -0.4 -4.9
Total deposits 1.9 5.4
Treasury management accounts (8) 12.2 29.4
Total deposits and treasury management
accounts (8) 2.7 6.9
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
For the Year
Ended December 31, Percent
------------------
Average balances 2009 2008 Variance
---------------- ---- ---- --------
Loans:
Commercial $3,204,334 $2,922,869 9.6
Direct installment 1,013,099 1,054,167 -3.9
Residential mortgages 623,736 607,443 2.7
Indirect installment 538,031 472,894 13.8
Consumer LOC 374,164 300,014 24.7
Other 77,812 52,635 47.8
------ ------
Total loans $5,831,176 $5,410,022 7.8
========== ==========
Deposits:
Non-interest bearing
deposits $940,808 $825,083 14.0
Savings and NOW 3,034,843 2,596,378 16.9
Certificates of deposit and
other time deposits 2,258,551 2,137,555 5.7
--------- ---------
Total deposits 6,234,202 5,559,016 12.1
Treasury management accounts
(8) 472,628 373,201 26.6
------- -------
Total deposits and treasury
management accounts (8) $6,706,830 $5,932,217 13.1
========== ==========
Balances at period end
----------------------
Loans:
Commercial $3,234,738 $3,173,941 1.9
Direct installment 985,746 1,070,791 -7.9
Residential mortgages 605,219 638,356 -5.2
Indirect installment 527,818 531,430 -0.7
Consumer LOC 408,469 340,750 19.9
Other 87,371 65,112 34.2
------ ------
Total loans $5,849,361 $5,820,380 0.5
========== ==========
Deposits:
Non-interest bearing
deposits $992,298 $919,539 7.9
Savings and NOW 3,182,909 2,816,628 13.0
Certificates of deposit and
other time deposits 2,205,016 2,318,456 -4.9
--------- ---------
Total deposits 6,380,223 6,054,623 5.4
Treasury management accounts
(8) 536,784 414,705 29.4
------- -------
Total deposits and treasury
management accounts (8) $6,917,007 $6,469,328 6.9
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
Fourth Quarter 2009
-------------------
Bank - PA Bank - FL Regency Total
--------- --------- ------- -----
Asset quality data,
by geographic region
------------------
Non-accrual
loans $60,166 $71,737 $1,988 $133,891
Restructured
loans 5,994 0 5,630 11,624
----- --- ----- ------
Non-
performing
loans 66,160 71,737 7,618 145,515
Other real
estate owned 9,836 10,341 1,190 21,367
----- ------ ----- ------
Total
non-performing
loans and OREO 75,996 82,078 8,808 166,882
Non-performing
investments 4,825 0 0 4,825
----- --- --- -----
Non-performing
assets $80,821 $82,078 $8,808 $171,707
======= ======= ====== ========
Net loan charge-
offs $5,122 $20,301 $1,738 $27,161
Provision for loan
losses 10,420 13,463 2,041 25,924
Allowance
for loan
losses 78,061 19,789 6,805 104,655
Loans,
net of
unearned
income 5,443,443 243,912 162,006 5,849,361
Non-
performing
loans /
total
loans 1.22% 29.41% 4.70% 2.49%
Non-
performing
loans +
OREO /
total
loans +
OREO 1.39% 32.28% 5.40% 2.84%
Allowance
for loan
losses /
total
loans 1.43% 8.11% 4.20% 1.79%
Allowance for loan
losses /
non-
performing
loans 117.99% 27.59% 89.33% 71.92%
Net loan charge-
offs (annualized)/
average
loans 0.37% 31.25% 4.30% 1.83%
Loans 30-89
days
past due $42,642 $0 $2,796 $45,438
Loans 90+
days
past due 9,851 0 2,620 12,471
Non-
accrual
loans 60,166 71,737 1,988 133,891
------ ------ ----- -------
Total
past due
and non-
accrual
loans $112,659 $71,737 $7,404 $191,800
======== ======= ====== ========
Total
past due
and non-
accrual
loans/
total
loans 2.07% 29.41% 4.57% 3.28%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
Third Quarter 2009
------------------
Bank - PA Bank - FL Regency Total
--------- --------- ------- -----
Asset quality
data, by
geographic region
------------------
Non-accrual loans $55,454 $68,073 $2,103 $125,630
Restructured loans 3,650 0 4,632 8,282
----- --- ----- -----
Non-performing
loans 59,104 68,073 6,735 133,912
Other real estate
owned 10,380 8,067 1,294 19,741
------ ----- ----- ------
Total non-
performing loans
and OREO 69,484 76,140 8,029 153,653
Non-performing
investments 5,758 0 0 5,758
----- --- --- -----
Non-performing
assets $75,242 $76,140 $8,029 $159,411
======= ======= ====== ========
Net loan charge-
offs $4,469 $4,059 $1,450 $9,978
Provision for loan
losses 7,555 7,379 1,521 16,455
Allowance for loan
losses 72,764 26,627 6,501 105,892
Loans, net of
unearned income 5,407,215 271,634 158,553 5,837,402
Non-performing
loans /total
loans 1.09% 25.06% 4.25% 2.29%
Non-performing
loans + OREO /
total loans +
OREO 1.28% 27.22% 5.02% 2.62%
Allowance for loan
losses /total
loans 1.35% 9.80% 4.10% 1.81%
Allowance for loan
losses /
non-performing
loans 123.11% 39.12% 96.53% 79.08%
Net loan charge-
offs (annualized)
/
average loans 0.33% 5.90% 3.64% 0.68%
Loans 30 -89 days
past due $43,140 $2,700 $2,853 $48,693
Loans 90+ days
past due 10,827 0 2,298 13,125
Non-accrual loans 55,454 68,073 2,103 125,630
------ ------ ----- -------
Total past due and
non-accrual
loans $109,421 $70,773 $7,254 $187,448
======== ======= ====== ========
Total past due and
non-accrual
loans/total
loans 2.02% 26.05% 4.58% 3.21%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
Fourth Quarter 2008
-------------------
Bank - PA Bank - FL Regency Total
--------- --------- ------- -----
Asset quality data,
by geographic
region
-------------------
Non-accrual loans $45,006 $93,116 $1,485 $139,607
Restructured loans 452 0 3,420 3,872
--- --- ----- -----
Non-performing
loans 45,458 93,116 4,905 143,479
Other real estate
owned 7,054 1,138 985 9,177
----- ----- --- -----
Total non-
performing loans
and OREO 52,512 94,254 5,890 152,656
Non-performing
investments 10,456 0 0 10,456
------ --- --- ------
Non-performing
assets $62,968 $94,254 $5,890 $163,112
======= ======= ====== ========
Net loan charge-
offs $5,759 $13,745 $1,644 $21,148
Provision for loan
losses 17,532 32,035 1,731 51,298
Allowance for loan
losses 69,745 28,506 6,479 104,730
Loans, net of
unearned income 5,368,157 294,202 158,021 5,820,380
Non-performing
loans /total
loans 0.85% 31.65% 3.10% 2.47%
Non-performing
loans + OREO /
total loans + OREO 0.98% 31.91% 3.70% 2.62%
Allowance for loan
losses /total
loans 1.30% 9.69% 4.10% 1.80%
Allowance for loan
losses /
non-performing
loans 153.43% 30.61% 132.09% 72.99%
Net loan charge-
offs (annualized)
/
average loans 0.42% 18.59% 4.15% 1.44%
Loans 30 -89 days
past due $40,414 $0 $2,980 $43,394
Loans 90+ days past
due 11,044 0 2,633 13,677
Non-accrual loans 45,006 93,116 1,485 139,607
------ ------ ----- -------
Total past due and
non-accrual loans $96,464 $93,116 $7,098 $196,678
======= ======= ====== ========
Total past due and
non-accrual
loans/total loans 1.80% 31.65% 4.49% 3.38%
F.N.B. CORPORATION
------------------
(Unaudited)
(Dollars in thousands)
NON-GAAP FINANCIAL MEASURES
---------------------------
The following non-GAAP financial measures used by the Corporation
provide information useful to investors in understanding the
Corporation's operating performance and trends, and facilitate
comparisons with the performance of the Corporation's peers. The non-
GAAP financial measures used by the Corporation may differ from the non-
GAAP financial measures other financial institutions use to measure
their results of operations. The following tables summarize the non-
GAAP financial measures derived from amounts reported in the
Corporation's financial statements.
2009 2008
---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Return on average tangible
equity (3):
--------------------------
Net income (annualized) $18,077 $40,887 ($75,214)
Amortization of intangibles,
net of tax (annualized) 4,457 4,467 5,140
----- ----- -----
22,534 45,354 (70,074)
Average total shareholders'
equity 1,052,483 1,128,898 972,138
Less: Average intangibles (568,666) (570,705) (575,668)
-------- -------- --------
