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 F.N.B. Corporation Reports Fourth Quarter and Full Year 2016 Earnings
   Wednesday, January 18, 2017 5:01:00 PM ET

F.N.B. Corporation (FNB ) reported earnings for the fourth quarter of 2016 with net income available to common stockholders of $49.3 million, or $0.23 per diluted common share, including $0.01 per share in merger expense. Comparatively, third quarter of 2016 net income available to common stockholders totaled $50.2 million, or $0.24 per diluted common share, and fourth quarter of 2015 net income available to common stockholders totaled $37.1 million, or $0.21 per diluted common share. Net income available to common stockholders for the full year of 2016 totaled $162.9 million, or $0.78 per diluted common share, including $0.12 per share in merger expense, compared to net income available to common stockholders of $151.6 million, or $0.86 per diluted common share in 2015, including $0.01 per share in merger expense. Quarterly and full-year operating results are presented in the tables below.

Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "We are pleased with the quarter’s results and another outstanding year at FNB. Fourth quarter operating net income per diluted common share was $0.24 per share and increased 10% from the year-ago quarter. Full-year operating net income per diluted common share increased to $0.90 and we successfully integrated Metro Bancorp, Inc. and 17 Fifth Third branches during 2016. Our financial performance was highlighted by high-single digit organic loan and deposit growth, solid asset quality and continued growth in our fee-based businesses. These ongoing trends led to an outstanding year, as the full-year efficiency ratio improved 76 basis points to 55.4% compared to 2015."

Quarterly Results Summary                                             4Q16    3Q16    4Q15
Reported Results
Net income available to common stockholders ($ in millions)           $49.3   $50.2   $37.1
Net income per diluted common share                                   $0.23   $0.24   $0.21
Common equity to total assets (period-end)                            11.28%  11.41%  11.33%
Book value per common share (period-end)                              $11.68  $11.72  $11.34
Operating Results (non-GAAP)
Operating net income available to common stockholders ($ in millions) $50.6   $50.4   $38.1
Operating net income per diluted common share                         $0.24   $0.24   $0.22
Tangible common equity to tangible assets (period-end)                6.64%   6.69%   6.71%
Tangible book value per common share (period-end)                     $6.53   $6.53   $6.38
Average Diluted Common Shares Outstanding (in 000’s)                  212,748 211,791 176,907
Full Year Results Summary                                             2016    2015
Reported Results
Net income available to common stockholders ($ in millions)           $162.9  $151.6
Net income per diluted common share                                   $0.78   $0.86
Operating Results (non-GAAP)
Operating net income available to common stockholders ($ in millions) $187.7  $153.7
Operating net income per diluted common share                         $0.90   $0.87
Average Diluted Common Shares Outstanding (in 000’s)                  207,769 176,339

Operating net income is a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. See the Data Sheets included with the release for "Non-GAAP Financial Measures and Key Performance Indicators" and additional information.

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

-- Organic growth in total average loans was $179 million, or 4.9% annualized, with average consumer loan growth of $154 million, or 10.3% annualized (including residential mortgage, direct and indirect installment and home-equity related products), and average commercial loan growth of $26 million, or 1.2% annualized

-- On an organic basis, average total deposits increased $296 million, or 7.5% annualized, with organic growth in average non-interest bearing deposits of $103 million, or 10.1% annualized.

-- The reported net interest margin (FTE) (non-GAAP) narrowed 1 basis point to 3.35%, compared to 3.36% in the prior quarter. The core net interest margin (FTE) (non-GAAP) was stable at 3.32% due to $1.5 million of accretable yield benefit, compared to 3.32% and $1.9 million of benefit in the prior quarter.

-- The efficiency ratio on an operating basis (non-GAAP) was 55.4%, compared to 54.4% in the prior quarter and 56.3% in the year-ago quarter.

-- Credit quality results reflect improved non-performing asset levels and slightly increased total delinquency levels. Net originated charge-offs were 0.38% annualized of total average originated loans, compared to 0.41% annualized in the third quarter of 2016 and 0.25% annualized in the year-ago quarter.

-- The tangible common equity to tangible assets ratio (non-GAAP) was 6.64% at December 31, 2016, compared to 6.69% at September 30, 2016. The tangible book value per common share (non-GAAP) was $6.53 at December 31, 2016, which was the same at September 30, 2016.

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

Net Interest Income/Loans/Deposits Net interest income totaled $159.3 million, increasing $1.8 million or 1.1%. The reported net interest margin (FTE) (non-GAAP) narrowed one basis point to 3.35%, compared to 3.36%. The core net interest margin (FTE) (non-GAAP) remained stable at 3.32%, as asset yields and cost of funds remained at the same levels as the prior quarter. Total average earning assets increased $254 million or 1.3%, due to continued loan growth of $179 million and $123 million of growth in the securities portfolio.

Average loans totaled $14.8 billion and increased $179 million, or 4.9% annualized, due to growth in the consumer and commercial portfolios. Average consumer loan growth was $154 million, or 10.3% annualized, led by strong demand and increased origination volume in residential mortgage and indirect auto loans. Average commercial loan growth totaled $26 million or 1.2% annualized, as growth in originated commercial loans was offset by pre-payment activity in the acquired portfolio.

Average deposits totaled $16.0 billion and increased $296 million, or 7.5% annualized. The deposit growth was led by growth in total interest checking and money market accounts and growth in low-cost non-interest bearing deposit accounts of $103 million, or 10.1% annualized, due to seasonally higher balances.

Non-Interest Income Non-interest income totaled $51.1 million, decreasing $2.2 million, or 4.1%. The decrease in non-interest income was due mainly to lower bank-owned life insurance income of $1.1 million and $0.4 million lower insurance commissions as the third quarter had higher seasonal revenues related to the timing of renewals. This was partially offset by solid performance in mortgage banking and capital markets (defined as swap income, international banking income and syndications income). The increase in mortgage banking income was attributable to the increased production volume. Capital Markets’ solid performance was due to deepening relationships with commercial customers across the entire footprint. Non-interest income equaled 24% of total revenue.

Non-Interest Expense Non-interest expense totaled $123.8 million, increasing $2.8 million, or 2.3%, and included a $1.4 million increase in merger expense compared to $0.3 million in the prior quarter, and a $1.2 million increase in other real estate owned expense due to higher write-downs. Excluding merger expenses, adjusted non-interest expense would have increased $1.4 million, or 1.2%. The $3.0 million increase in other expense was attributable to seasonally higher marketing costs and higher outside service expense, which was partially offset by a $2.0 million decrease in amortization of intangibles. The efficiency ratio (non-GAAP) was 55.4%, compared to 54.4% in the prior quarter.

Credit Quality Credit quality results remain satisfactory with improved non-performing asset levels. The ratio of non-performing loans and OREO to total loans and OREO improved 13 basis points to 0.79% and, for the originated portfolio, the ratio of non-performing loans and OREO to total loans and OREO improved 17 basis points to 0.91%. Total delinquency levels increased slightly, and total originated delinquency, defined as total past due and non-accrual originated loans as a percentage of total originated loans, increased 4 basis points to 1.04%, compared to 1.00% at September 30, 2016.

Net charge-offs totaled $11.5 million, or 0.31% annualized of total average loans compared to $12.1 million, or 0.33% annualized. For the originated portfolio, net charge-offs were $11.8 million, or 0.38% annualized of total average originated loans, compared to $12.3 million or 0.41% annualized. The ratio of the allowance for loan losses to total originated loans decreased 3 basis points from September 30, 2016 to 1.20% at December 31, 2016, reflecting utilization of previously-established reserves. The total provision for loan losses totaled $12.7 million, compared to $14.6 million in the prior quarter.

Full Year 2016 Results - Comparison to Prior Year (All comparisons refer to the full year of 2015, except as noted; Organic growth in loans and deposits refers to growth excluding the benefit of initial balances from acquisitions.)

Results include the impact from the acquisition of 17 Fifth Third Bank branches (Fifth Third) on April 22, 2016, Metro Bancorp, Inc. (METR) on February 13, 2016, and five Bank of America branches (BofA) on September 19, 2015.

Net Interest Income/Loans/Deposits Net interest income totaled $611.5 million, increasing $113.3 million, or 22.7%, reflecting average earning asset growth of $3.6 billion, or 24.6%. The net interest margin (FTE) (non-GAAP) was 3.38%, compared to 3.42%. The core net interest margin (FTE) (non-GAAP) narrowed 5 basis points to 3.34%, reflecting $1.7 million of greater accretable yield benefit. The core net interest margin (FTE) (non-GAAP) narrowing reflects the lower interest rate environment for the full year of 2016 and competitive landscape for earning assets.

Average loans totaled $14.3 billion, an increase of $2.6 billion, or 22.4%, due to the benefit from continued organic loan growth and the previously mentioned acquired balances. Organic growth in total average loans equaled $929 million, or 8.0%. Organic growth in average commercial loans totaled $485 million, or 7.4%, and organic growth in average consumer loans was $437 million, or 8.6%. Total organic commercial loan growth was led by the Pittsburgh, Baltimore and Cleveland markets. The increased number of opportunities concentrated in Baltimore and Cleveland led to market share gains within these regions. Total average consumer loan growth was led by strong growth in residential mortgage and indirect auto loans, as well as solid growth in home-equity related loans. Average deposits totaled $15.4 billion and increased $3.2 billion, or 26.5%, due to average organic growth of $887 million or 7.2%, and the benefit from acquired balances. On an organic basis, average total transaction deposits increased $1.0 billion or 10.5%. Total loans as a percentage of deposits was 92.7% at December 31, 2016.

Non-Interest Income Non-interest income totaled $201.8 million, increasing $39.4 million or 24.2%. Non-interest income reflects the benefit of the previously mentioned acquisitions and continued organic growth from capital markets, mortgage banking and insurance.

Non-Interest Expense Non-interest expense totaled $511.1 million, increasing $120.6 million, or 30.9%. Full year 2016 included merger expenses of $37.4 million and a $2.6 million impairment charge on acquired other assets. Absent these items and merger expenses of $3.0 million in 2015, total adjusted non-interest expense increased $83.6 million, or 21.6%, compared to 2015, with the increase primarily attributable to the expanded operations from the previously mentioned acquisitions. The efficiency ratio (non-GAAP) was 55.4%, improved from 56.1% in 2015.

Credit Quality Credit quality results continued to reflect solid performance with improvement in total non-performing loan trends. For the originated portfolio, non-performing loans and OREO to total loans and OREO was 0.91%, compared to 0.99%. Total originated delinquency increased 11 basis points to 1.04% at December 31, 2016.

Net charge-offs for the full year of 2016 totaled $39.7 million, or 0.28% of total average loans, compared to 0.21% in the prior year. Net originated charge-offs were 0.34% of total average originated loans, compared to 0.24%. For the originated portfolio, the allowance for loan losses to total originated loans was 1.20%, compared to 1.23% at December 31, 2015. The ratio of the allowance for loan losses to total loans decreased 10 basis points to 1.06%, with the movement due to additional loan balances from acquisitions without a corresponding allowance for loan losses in accordance with accounting for business combinations. The total provision for loan losses was $55.8 million, compared to $40.4 million in the prior year, reflecting the increase in net charge-offs and strong originated loan growth.

Capital Position The tangible common equity to tangible assets ratio (non-GAAP) was 6.64%, compared to 6.69% at September 30, 2016. Book value per common share decreased to $11.68, from $11.72 at September 30, 2016. Tangible book value per common share (non-GAAP) was $6.53, the same as September 30, 2016, and increased $0.15 from $6.38 at December 31, 2015. The common dividend payout ratio for the full year of 2016 was 62.4%.

Non-GAAP Financial Measures and Key Performance Indicators We use non-GAAP financial measures, such as operating net income available to common stockholders, operating net income per diluted common share, return on average tangible common equity, return on average tangible assets, tangible book value per common share, the ratio of tangible common equity to tangible assets, efficiency ratio, net interest margin and core net interest margin to provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. The Data Sheets appended to this release contain the Non-GAAP measures under the sub-heading, "Non-GAAP Financial Measures and Key Performance Indicators." Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends.

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

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

We believe merger expenses are not organic costs to run our operations and facilities. These charges represent expenses to satisfy contractual obligations of acquired entities without any useful benefit to us and to convert and consolidate the entity’s records onto our platforms. These costs are specific to each individual transaction and may vary significantly based on the size and complexity of the transaction.

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

Conference Call The Company’s President and Chief Executive Officer, Vincent J. Delie, Jr., Chief Financial Officer, Vincent J. Calabrese, Jr., and Chief Credit Officer, Gary L. Guerrieri, will host a conference call to discuss the Company’s financial results on Thursday, January 19, 2017, at 10:30 AM ET.

Participants are encouraged to pre-register for the conference call at http://dpregister.com/10098259 . Callers who pre-register will be provided a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.

Dial-in Access: The conference call may be accessed by dialing (844) 802-2440 or (412) 317-5133 for international callers. Participants should ask to be joined into the F.N.B. Corporation call.

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

Presentation Materials: Presentation slides and the earnings release will also be available on the Corporation’s website on the "About Us" section of our corporate website at www.fnbcorporation.com.

A replay of the call will be available shortly after the completion of the call until midnight ET on Thursday, January 26, 2017. The replay can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the conference replay access code is 10098259. Following the call, a transcript and the related presentation materials will be posted to the "Shareholder and Investor Relations" section of F.N.B. Corporation’s website at www.fnbcorporation.com.

About F.N.B. Corporation F.N.B. Corporation (FNB ), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company. On a combined, pro forma basis, giving effect to the proposed acquisition of Yadkin Financial Corporation (Yadkin), FNB will operate in eight states and seven major metropolitan areas. FNB holds a significant retail deposit market share in Pittsburgh, Pennsylvania; Baltimore, Maryland; and Cleveland, Ohio; and, assuming the Yadkin acquisition is completed, will add Charlotte, Raleigh-Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina. If the proposed Yadkin acquisition is completed (the proposed Transaction), the Company will have total pro forma assets of nearly $30 billion, and more than 400 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina and South Carolina.

Completion of the proposed Transaction is subject to regulatory approval and satisfaction of customary closing conditions. FNB provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network which is led by its largest affiliate, First National Bank of Pennsylvania, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, international banking, business credit, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. FNB’s wealth management services include asset management, private banking and insurance. The Company also operates Regency Finance Company, which has more than 75 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee. The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB" and is included in Standard & Poor’s MidCap 400 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation website at www.fnbcorporation.com.

Additional Information About the Proposed Transaction and Where to Find It Communications in this document do not constitute an offer to sell or the solicitation of an offer to buy any securities. In connection with the proposed Transaction with Yadkin Financial Corporation, F.N.B. Corporation has filed with the SEC a Registration Statement on Form S-4 (File No. 333-213776) and other relevant documents concerning the proposed Transaction.

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

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

Cautionary Statement Regarding Forward-Looking Information This document contains forward-looking statements which may contain FNB’s expectations or predictions of future financial or business performance or conditions, or otherwise anticipate the closing date of the proposed Transaction. This document/communication/information may also contain certain forward-looking statements, including certain plans, goals, projections and statements about the proposed Transaction, plans relative to the proposed Transaction, objectives, expectations and intentions regarding the proposed Transaction, the expected timing of the completion of the proposed Transaction, and other statements that are not historical facts. Forward-looking statements, that do not describe historical or current facts, typically are identified by words such as, "believe", "plan", "expect", "anticipate", "intend", "outlook", "estimate", "forecast", "will", "should", "project", "goal", and other similar words and expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. The forward-looking statements are intended to be subject to the safe harbor provided under Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Act of 1995.

In addition to factors previously disclosed in FNB’s reports filed with the Securities and Exchange Commission (SEC), the following risk factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: potential risks and challenges attendant to the successful conversions of core data systems; difficulties and delays in successfully integrating the FNB and Yadkin businesses or fully realizing cost savings and other benefits; business disruption following the completion of the transaction; changes in asset quality and credit risk; changes in general economic, political or industry conditions; uncertainty in U.S. fiscal policy and monetary policy, including interest rate policies of the Federal Reserve Board (FRB); the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of FNB products and services; potential difficulties encountered by FNB in expanding into a new and remote geographic market; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; the impact, extent and timing of technological changes, capital management activities, competitive pressures on product pricing and services; ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; success, impact and timing of FNB’s business strategies, including market acceptance of any new products or services; and implementation of FNB’s banking culture, philosophy and strategies.

Additional risks include the nature, extent, timing and results of governmental and regulatory actions, examinations, reviews, reforms, regulations and interpretations, including those related to the Dodd-Frank Wall Street Reform Act and Consumer Protection Act and Basel III regulatory or capital reforms (including DFAST stress-testing protocols), as well as those involving the Office of the Comptroller of the Currency (OCC), FRB, Federal Deposit Insurance Corporation (FDIC), and Consumer Financial Protection Board (CFPB); the possibility that the proposed Transaction does not close when expected or at all because required regulatory or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; the possibility that the anticipated benefits of the proposed Transaction are not realized when expected or at all, or the transaction is delayed or does not close due to unanticipated circumstances, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the economic conditions and competitive factors in the areas where FNB does business; the possibility that the proposed Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed Transaction; and other factors that may affect future results of FNB. There is no assurance that any of the risks, uncertainties or risk factors identified herein is complete and actual results or events may differ materially from those expressed or implied in the forward-looking statements contained in this document.

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

All forward-looking statements speak only as of the date they are made and are based on information available at that time. FNB assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                                                                        Percent Variance
                                                                                                        4Q16 -  4Q16 -
Statement of earnings                                            4Q16         3Q16         4Q15         3Q16    4Q15
Interest income                                                  $177,168     $175,110     $140,781     1.2     25.8
Interest expense                                                 17,885       17,604       13,448       1.6     33.0
Net interest income                                              159,283      157,506      127,333      1.1     25.1
Provision for credit losses                                      12,705       14,639       12,664       -13.2   0.3
Net interest income after provision                              146,578      142,867      114,669      2.6     27.8
Service charges                                                  25,605       25,756       18,739       -0.6    36.6
Trust income                                                     5,218        5,268        5,131        -0.9    1.7
Insurance commissions and fees                                   4,436        4,866        3,919        -8.8    13.2
Securities commissions and fees                                  3,068        3,404        3,684        -9.9    -16.7
Mortgage banking operations                                      4,194        3,564        1,880        17.7    123.2
Net securities gains                                             116          299          503          n/m     n/m
Other                                                            8,429        10,083       9,261        -16.4   -9.0
Total non-interest income                                        51,066       53,240       43,117       -4.1    18.4
Salaries and employee benefits                                   61,117       60,927       50,509       0.3     21.0
Occupancy and equipment                                          19,736       20,367       16,551       -3.1    19.2
FDIC insurance                                                   4,858        5,274        3,258        -7.9    49.1
Amortization of intangibles                                      1,602        3,571        2,157        -55.1   -25.7
Other real estate owned                                          2,401        1,172        849          104.8   182.6
Merger, acquisition and severance-related                        1,649        299          1,350        n/m     n/m
Other                                                            32,443       29,440       26,572       10.2    22.1
Total non-interest expense                                       123,806      121,050      101,246      2.3     22.3
Income before income taxes                                       73,838       75,057       56,540       -1.6    30.6
Income taxes                                                     22,547       22,889       17,418       -1.5    29.4
Net income                                                       51,291       52,168       39,122       -1.7    31.1
Preferred stock dividends                                        2,011        2,010        2,011
Net income available to common stockholders                      $49,280      $50,158      $37,111      -1.8    32.8
Earnings per common share:
Basic                                                            $0.23        $0.24        $0.21        -4.2    9.5
Diluted                                                          $0.23        $0.24        $0.21        -4.2    9.5
Reconciliation of Operating Net Income (non-GAAP):
Net income available to common stockholders                      $49,280      $50,158      $37,111
Merger, acquisition and severance costs                          1,649        299          1,350
Tax benefit of merger, acquisition and severance costs           (341)        (105)        (359)
Operating net income available to common stockholders (non-GAAP) $50,588      $50,352      $38,102      0.5     32.8
Net income per diluted common share                              $0.23        $0.24        $0.21
Effect of merger, acquisition and severance costs                0.01         0.00         0.01
Tax benefit of merger, acquisition and severance costs           (0.00)       (0.00)       (0.00)
Operating net income per diluted common share (non-GAAP)         $0.24        $0.24        $0.22        0.0     9.1
Common stock data
Average diluted shares outstanding                               212,748,337  211,790,730  176,906,938  0.5     20.3
Period end shares outstanding                                    211,059,547  210,224,194  175,441,670  0.4     20.3
Book value per common share                                      $11.68       $11.72       $11.34       -0.4    3.0
Tangible book value per common share (1)                         $6.53        $6.53        $6.38        0.1     2.4
Dividend payout ratio (common)                                   51.82%       50.69%       57.08%
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                                 For the Year
                                                                 Ended December 31,        Percent
Statement of earnings                                            2016         2015         Variance
Interest income                                                  $678,963     $546,795     24.2
Interest expense                                                 67,451       48,573       38.9
Net interest income                                              611,512      498,222      22.7
Provision for credit losses                                      55,752       40,441       37.9
Net interest income after provision                              555,760      457,781      21.4
Service charges                                                  99,033       70,698       40.1
Trust income                                                     21,173       20,934       1.1
Insurance commissions and fees                                   18,328       16,270       12.6
Securities commissions and fees                                  13,468       13,642       -1.3
Mortgage banking operations                                      12,106       8,619        40.5
Net securities gains                                             712          822          n/m
Other                                                            36,941       31,425       17.6
Total non-interest income                                        201,761      162,410      24.2
Salaries and employee benefits                                   239,798      201,968      18.7
Occupancy and equipment                                          78,132       65,539       19.2
FDIC insurance                                                   19,203       12,888       49.0
Amortization of intangibles                                      11,210       8,305        35.0
Other real estate owned                                          5,154        4,637        11.1
Merger, acquisition and severance-related                        37,439       3,033        n/m
Other                                                            120,197      94,179       27.6
Total non-interest expense                                       511,133      390,549      30.9
Income before income taxes                                       246,388      229,642      7.3
Income taxes                                                     75,497       69,993       7.9
Net income                                                       170,891      159,649      7.0
Preferred stock dividends                                        8,041        8,041
Net income available to common stockholders                      $162,850     $151,608     7.4
Earnings per common share:
Basic                                                            $0.79        $0.87        -9.2
Diluted                                                          $0.78        $0.86        -9.3
Reconciliation of Operating Net Income (non-GAAP):
Net income available to common stockholders                      $162,850     $151,608
Merger, acquisition and severance costs                          37,439       3,033
Tax benefit of merger, acquisition and severance costs           (12,550)     (948)
Operating net income available to common stockholders (non-GAAP) $187,739     $153,693     22.2
Net income per diluted common share                              $0.78        $0.86
Effect of merger, acquisition and severance costs                0.18         0.02
Tax benefit of merger, acquisition and severance costs           (0.06)       (0.01)
Operating net income per diluted common share (non-GAAP)         $0.90        $0.87        3.4
Common stock data
Average diluted shares outstanding                               207,768,609  176,338,953  17.8
Period end shares outstanding                                    211,059,547  175,441,670  20.3
Book value per common share                                      $11.68       $11.34       3.0
Tangible book value per common share (1)                         $6.53        $6.38        2.4
Dividend payout ratio (common)                                   62.43%       55.74%
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                                                     Percent Variance
                                                                                     4Q16 -  4Q16 -
Balance Sheet (at period end)                 4Q16         3Q16         4Q15         3Q16    4Q15
Assets
Cash and due from banks                       $303,526     $326,599     $207,399     -7.1    46.3
Interest bearing deposits with banks          67,881       118,651      281,720      -42.8   -75.9
Cash and cash equivalents                     371,407      445,250      489,119      -16.6   -24.1
Securities available for sale                 2,231,987    2,077,616    1,630,567    7.4     36.9
Securities held to maturity                   2,337,342    2,249,245    1,637,061    3.9     42.8
Residential mortgage loans held for sale      11,908       17,862       4,781        -33.3   149.1
Loans and leases, net of unearned income      14,896,943   14,773,446   12,190,440   0.8     22.2
Allowance for credit losses                   (158,059)    (156,894)    (142,012)    0.7     11.3
Net loans and leases                          14,738,884   14,616,552   12,048,428   0.8     22.3
Premises and equipment, net                   243,956      228,622      159,080      6.7     53.4
Goodwill                                      1,032,129    1,022,006    833,086      1.0     23.9
Core deposit and other intangible assets, net 67,327       81,646       45,644       -17.5   47.5
Bank owned life insurance                     330,152      327,874      308,192      0.7     7.1
Other assets                                  479,725      517,241      401,704      -7.3    19.4
Total Assets                                  $21,844,817  $21,583,914  $17,557,662  1.2     24.4
Liabilities
Deposits:
Non-interest bearing demand                   $4,205,337   $4,082,145   $3,059,949   3.0     37.4
Interest bearing demand                       6,931,381    7,032,744    5,311,589    -1.4    30.5
Savings                                       2,352,434    2,299,408    1,786,459    2.3     31.7
Certificates and other time deposits          2,576,495    2,562,587    2,465,466    0.5     4.5
Total Deposits                                16,065,647   15,976,884   12,623,463   0.6     27.3
Short-term borrowings                         2,503,010    2,236,105    2,048,896    11.9    22.2
Long-term borrowings                          539,494      587,500      641,480      -8.2    -15.9
Other liabilities                             165,049      212,845      147,641      -22.5   11.8
Total Liabilities                             19,273,200   19,013,334   15,461,480   1.4     24.7
Stockholders’ Equity
Preferred Stock                               106,882      106,882      106,882      0.0     0.0
Common stock                                  2,125        2,117        1,766        0.4     20.3
Additional paid-in capital                    2,234,366    2,223,530    1,808,210    0.5     23.6
Retained earnings                             304,397      280,654      243,217      8.5     25.2
Accumulated other comprehensive loss          (61,369)     (27,852)     (51,133)     120.3   20.0
Treasury stock                                (14,784)     (14,751)     (12,760)     0.2     15.9
Total Stockholders’ Equity                    2,571,617    2,570,580    2,096,182    0.0     22.7
Total Liabilities and Stockholders’ Equity    $21,844,817  $21,583,914  $17,557,662  1.2     24.4
Selected average balances
Total assets                                  $21,609,635  $21,386,156  $17,076,285  1.0     26.5
Earning assets                                19,299,292   19,045,481   15,232,868   1.3     26.7
Interest bearing deposits with banks          93,481       140,713      53,777       -33.6   73.8
Securities                                    4,363,935    4,240,563    3,155,624    2.9     38.3
Residential mortgage loans held for sale      21,639       22,476       9,182        -3.7    135.7
Loans and leases, net of unearned income      14,820,237   14,641,729   12,014,285   1.2     23.4
Allowance for credit losses                   158,542      158,901      139,571      -0.2    13.6
Goodwill and intangibles                      1,101,797    1,104,328    879,039      -0.2    25.3
Deposits                                      15,967,990   15,671,857   12,787,550   1.9     24.9
Short-term borrowings                         2,316,169    2,303,389    1,382,073    0.6     67.6
Long-term borrowings                          544,236      616,141      640,573      -11.7   -15.0
Total stockholders’ equity                    2,573,768    2,562,693    2,099,591    0.4     22.6
Preferred stockholders’ equity                106,882      106,882      106,882      0.0     0.0
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                              For the Year
                                              Ended December 31,        Percent
Balance Sheet (at period end)                 2016         2015         Variance
Assets
Cash and due from banks                       $303,526     $207,399     46.3
Interest bearing deposits with banks          67,881       281,720      -75.9
Cash and cash equivalents                     371,407      489,119      -24.1
Securities available for sale                 2,231,987    1,630,567    36.9
Securities held to maturity                   2,337,342    1,637,061    42.8
Residential mortgage loans held for sale      11,908       4,781        149.1
Loans and leases, net of unearned income      14,896,943   12,190,440   22.2
Allowance for credit losses                   (158,059)    (142,012)    11.3
Net loans and leases                          14,738,884   12,048,428   22.3
Premises and equipment, net                   243,956      159,080      53.4
Goodwill                                      1,032,129    833,086      23.9
Core deposit and other intangible assets, net 67,327       45,644       47.5
Bank owned life insurance                     330,152      308,192      7.1
Other assets                                  479,725      401,704      19.4
Total Assets                                  $21,844,817  $17,557,662  24.4
Liabilities
Deposits:
Non-interest bearing demand                   $4,205,337   $3,059,949   37.4
Interest bearing demand                       6,931,381    5,311,589    30.5
Savings                                       2,352,434    1,786,459    31.7
Certificates and other time deposits          2,576,495    2,465,466    4.5
Total Deposits                                16,065,647   12,623,463   27.3
Short-term borrowings                         2,503,010    2,048,896    22.2
Long-term borrowings                          539,494      641,480      -15.9
Other liabilities                             165,049      147,641      11.8
Total Liabilities                             19,273,200   15,461,480   24.7
Stockholders’ Equity
Preferred Stock                               106,882      106,882      0.0
Common stock                                  2,125        1,766        20.3
Additional paid-in capital                    2,234,366    1,808,210    23.6
Retained earnings                             304,397      243,217      25.2
Accumulated other comprehensive loss          (61,369)     (51,133)     20.0
Treasury stock                                (14,784)     (12,760)     15.9
Total Stockholders’ Equity                    2,571,617    2,096,182    22.7
Total Liabilities and Stockholders’ Equity    $21,844,817  $17,557,662  24.4
Selected average balances
Total assets                                  $20,677,717  $16,606,147  24.5
Earning assets                                18,438,962   14,797,502   24.6
Interest bearing deposits with banks          116,769      70,116       66.5
Securities                                    4,040,636    3,068,871    31.7
Residential mortgage loans held for sale      16,525       7,773        112.6
Loans and leases, net of unearned income      14,265,032   11,650,742   22.4
Allowance for credit losses                   152,751      133,508      14.4
Goodwill and intangibles                      1,070,411    876,773      22.1
Deposits                                      15,375,254   12,153,608   26.5
Short-term borrowings                         1,975,742    1,664,143    18.7
Long-term borrowings                          616,283      566,914      8.7
Total stockholders’ equity                    2,499,976    2,072,170    20.6
Preferred stockholders’ equity                106,882      106,882      0.0
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                                                                 Percent Variance
                                                                                                 4Q16 -  4Q16 -
                                                          4Q16         3Q16         4Q15         3Q16    4Q15
Performance ratios
Return on average equity                                  7.93%        8.10%        7.39%
Return on average tangible equity (1)                     14.14%       14.87%       13.20%
Return on average tangible common equity (1)              14.66%       15.45%       13.75%
Return on average assets                                  0.94%        0.97%        0.91%
Return on average tangible assets (1)                     1.02%        1.08%        1.00%
Net interest margin (FTE) (1) (2)                         3.35%        3.36%        3.38%
Yield on earning assets (FTE) (1) (2)                     3.72%        3.72%        3.73%
Cost of interest-bearing liabilities                      0.48%        0.48%        0.45%
Cost of funds                                             0.38%        0.38%        0.36%
Efficiency ratio (1)                                      55.38%       54.38%       56.32%
Effective tax rate                                        30.54%       30.50%       30.81%
Capital ratios
Equity / assets (period end)                              11.77%       11.91%       11.94%
Common equity / assets (period end)                       11.28%       11.41%       11.33%
Leverage ratio                                            7.70%        7.63%        8.14%
Tangible equity / tangible assets (period end) (1)        7.16%        7.22%        7.35%
Tangible common equity / tangible assets (period end) (1) 6.64%        6.69%        6.71%
Balances at period end
Loans and Leases:
Commercial real estate                                    $5,435,162   $5,367,291   $4,109,056   1.3     32.3
Commercial and industrial                                 3,042,781    3,088,405    2,601,722    -1.5    17.0
Commercial leases                                         196,636      195,271      204,553      0.7     -3.9
Commercial loans and leases                               8,674,579    8,650,967    6,915,331    0.3     25.4
Direct installment                                        1,844,399    1,837,395    1,706,636    0.4     8.1
Residential mortgages                                     1,844,574    1,779,867    1,395,971    3.6     32.1
Indirect installment                                      1,196,313    1,150,812    996,729      4.0     20.0
Consumer LOC                                              1,301,200    1,303,223    1,137,255    -0.2    14.4
Other                                                     35,878       51,182       38,518       -29.9   -6.9
Total loans and leases                                    $14,896,943  $14,773,446  $12,190,440  0.8     22.2
Deposits:
Non-interest bearing deposits                             $4,205,337   $4,082,145   $3,059,949   3.0     37.4
Interest bearing demand                                   6,931,381    7,032,744    5,311,589    -1.4    30.5
Savings                                                   2,352,434    2,299,408    1,786,459    2.3     31.7
Certificates of deposit and other time deposits           2,576,495    2,562,587    2,465,466    0.5     4.5
Total deposits                                            $16,065,647  $15,976,884  $12,623,463  0.6     27.3
Average balances
Loans and Leases:
Commercial real estate                                    $5,390,877   $5,343,485   $4,007,628   0.9     34.5
Commercial and industrial                                 3,065,593    3,084,005    2,546,539    -0.6    20.4
Commercial leases                                         194,111      196,600      201,201      -1.3    -3.5
Commercial loans and leases                               8,650,581    8,624,090    6,755,368    0.3     28.1
Direct installment                                        1,837,505    1,834,558    1,702,617    0.2     7.9
Residential mortgages                                     1,807,086    1,721,162    1,393,416    5.0     29.7
Indirect installment                                      1,169,559    1,109,047    983,028      5.5     19.0
Consumer LOC                                              1,299,832    1,295,035    1,134,005    0.4     14.6
Other                                                     55,674       57,837       45,851       -3.7    21.4
Total loans and leases                                    $14,820,237  $14,641,729  $12,014,285  1.2     23.4
Deposits:
Non-interest bearing deposits                             $4,123,539   $4,021,023   $3,025,773   2.5     36.3
Interest bearing demand                                   6,972,890    6,772,963    5,486,974    3.0     27.1
Savings                                                   2,310,901    2,289,836    1,764,600    0.9     31.0
Certificates of deposit and other time deposits           2,560,660    2,588,035    2,510,203    -1.1    2.0
Total deposits                                            $15,967,990  $15,671,857  $12,787,550  1.9     24.9
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                          For the Year
                                                          Ended December 31,        Percent
                                                          2016         2015         Variance
Performance ratios
Return on average equity                                  6.84%        7.70%
Return on average tangible equity (1)                     12.49%       13.84%
Return on average tangible common equity (1)              12.89%       14.46%
Return on average assets                                  0.83%        0.96%
Return on average tangible assets (1)                     0.92%        1.06%
Net interest margin (FTE) (1) (2)                         3.38%        3.42%
Yield on earning assets (FTE) (1) (2)                     3.74%        3.75%
Cost of interest-bearing liabilities                      0.48%        0.42%
Cost of funds                                             0.37%        0.34%
Efficiency ratio (1)                                      55.36%       56.12%
Effective tax rate                                        30.64%       30.48%
Capital ratios
Equity / assets (period end)                              11.77%       11.94%
Common equity / assets (period end)                       11.28%       11.33%
Leverage ratio                                            7.70%        8.14%
Tangible equity / tangible assets (period end) (1)        7.16%        7.35%
Tangible common equity / tangible assets (period end) (1) 6.64%        6.71%
Balances at period end
Loans and Leases:
Commercial real estate                                    $5,435,162   $4,109,056   32.3
Commercial and industrial                                 3,042,781    2,601,722    17.0
Commercial leases                                         196,636      204,553      -3.9
Commercial loans and leases                               8,674,579    6,915,331    25.4
Direct installment                                        1,844,399    1,706,636    8.1
Residential mortgages                                     1,844,574    1,395,971    32.1
Indirect installment                                      1,196,313    996,729      20.0
Consumer LOC                                              1,301,200    1,137,255    14.4
Other                                                     35,878       38,518       -6.9
Total loans and leases                                    $14,896,943  $12,190,440  22.2
Deposits:
Non-interest bearing deposits                             $4,205,337   $3,059,949   37.4
Interest bearing demand                                   6,931,381    5,311,589    30.5
Savings                                                   2,352,434    1,786,459    31.7
Certificates of deposit and other time deposits           2,576,495    2,465,466    4.5
Total deposits                                            $16,065,647  $12,623,463  27.3
Average balances
Loans and Leases:
Commercial real estate                                    $5,229,327   $3,888,261   34.5
Commercial and industrial                                 2,971,756    2,452,538    21.2
Commercial leases                                         199,083      191,070      4.2
Commercial loans and leases                               8,400,166    6,531,869    28.6
Direct installment                                        1,807,024    1,675,856    7.8
Residential mortgages                                     1,651,143    1,336,212    23.6
Indirect installment                                      1,082,915    940,834      15.1
Consumer LOC                                              1,270,713    1,119,719    13.5
Other                                                     53,071       46,252       14.7
Total loans and leases                                    $14,265,032  $11,650,742  22.4
Deposits:
Non-interest bearing deposits                             $3,884,941   $2,832,982   37.1
Interest bearing demand                                   6,652,953    5,040,102    32.0
Savings                                                   2,237,020    1,714,587    30.5
Certificates of deposit and other time deposits           2,600,341    2,565,937    1.3
Total deposits                                            $15,375,254  $12,153,608  26.5
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                                                                 Percent Variance
                                                                                                 4Q16 -  4Q16 -
Asset Quality Data                                                 4Q16      3Q16      4Q15      3Q16    4Q15
Non-Performing Assets
Non-performing loans (3)
Non-accrual loans                                                  $65,479   $74,828   $49,897   -12.5   31.2
Restructured loans                                                 20,428    20,638    22,028    -1.0    -7.3
Non-performing loans                                               85,907    95,466    71,925    -10.0   19.4
Other real estate owned (OREO) (4)                                 32,490    40,523    38,918    -19.8   -16.5
Total non-performing assets                                        $118,397  $135,989  $110,843  -12.9   6.8
Non-performing loans / total loans and leases                      0.58%     0.65%     0.59%
Non-performing loans / total originated loans and leases (5)       0.66%     0.76%     0.64%
Non-performing loans + OREO / total loans and leases + OREO        0.79%     0.92%     0.91%
Non-performing loans + OREO / total originated loans and
leases + OREO (5)                                                  0.91%     1.08%     0.99%
Non-performing assets / total assets                               0.54%     0.63%     0.63%
Allowance Rollforward
Allowance for credit losses (originated portfolio) (5)
Balance at beginning of period                                     $150,514  $148,719  $129,619  1.2     16.1
Provision for credit losses                                        12,126    14,072    12,387    -13.8   -2.1
Net loan charge-offs                                               (11,848)  (12,277)  (6,721)   -3.5    76.3
Allowance for credit losses (originated portfolio) (5)             150,792   150,514   135,285   0.2     11.5
Allowance for credit losses (acquired portfolio) (6)
Balance at beginning of period                                     6,380     5,650     6,564     12.9    -2.8
Provision for credit losses                                        579       567       277       2.1     109.0
Net loan (charge-offs)/recoveries                                  308       163       (114)     89.0    -370.2
Allowance for credit losses (acquired portfolio) (6)               7,267     6,380     6,727     13.9    8.0
Total allowance for credit losses                                  $158,059  $156,894  $142,012  0.7     11.3
Allowance for credit losses / total loans and leases               1.06%     1.06%     1.16%
Allowance for credit losses (originated loans and leases) /
total originated loans and leases (5)                              1.20%     1.23%     1.23%
Allowance for credit losses (originated loans and leases) /
total non-performing loans (3)                                     182.75%   163.36%   190.64%
Net loan charge-offs (annualized) / total average loans and leases 0.31%     0.33%     0.23%
Net loan charge-offs on originated loans and leases
(annualized) / total average originated loans and leases (5)       0.38%     0.41%     0.25%
Delinquency - Originated Portfolio (5)
Loans 30-89 days past due                                          $59,850   $43,071   $46,683   39.0    28.2
Loans 90+ days past due                                            9,113     6,906     6,864     32.0    32.8
Non-accrual loans                                                  62,083    71,498    48,934    -13.2   26.9
Total past due and non-accrual loans                               $131,046  $121,475  $102,481  7.9     27.9
Total past due and non-accrual loans / total originated loans      1.04%     1.00%     0.93%
Memo item:
Delinquency - Acquired Portfolio (6) (7)
Loans 30-89 days past due                                          $24,210   $29,087   $15,034   -16.8   61.0
Loans 90+ days past due                                            40,524    42,584    29,878    -4.8    35.6
Non-accrual loans                                                  3,396     3,330     963       n/m     n/m
Total past due and non-accrual loans                               $68,130   $75,001   $45,875   -9.2    48.5
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                                   For the Year
                                                                   Ended December 31,  Percent
Asset Quality Data                                                 2016      2015      Variance
Non-Performing Assets
Non-performing loans (3)
Non-accrual loans                                                  $65,479   $49,897   31.2
Restructured loans                                                 20,428    22,028    -7.3
Non-performing loans                                               85,907    71,925    19.4
Other real estate owned (OREO) (4)                                 32,490    38,918    -16.5
Non-performing loans and OREO                                      118,397   110,843   6.8
Non-performing investments                                         0         0         n/m
Total non-performing assets                                        $118,397  $110,843  6.8
Non-performing loans / total loans and leases                      0.58%     0.59%
Non-performing loans / total originated loans and leases (5)       0.66%     0.64%
Non-performing loans + OREO / total loans and leases + OREO        0.79%     0.91%
Non-performing loans + OREO / total originated
loans and leases + OREO (5)                                        0.91%     0.99%
Non-performing assets / total assets                               0.54%     0.63%
Allowance Rollforward
Allowance for credit losses (originated portfolio) (5)
Balance at beginning of period                                     $135,285  $117,952  14.7
Provision for credit losses                                        55,422    41,484    33.6
Net loan charge-offs                                               (39,915)  (24,151)  65.3
Allowance for credit losses (originated portfolio) (5)             150,792   135,285   11.5
Allowance for credit losses (acquired portfolio) (6)
Balance at beginning of period                                     6,727     7,974     -15.6
Provision for credit losses                                        330       (1,043)   -131.6
Net loan (charge-offs)/recoveries                                  210       (204)     -202.9
Allowance for credit losses (acquired portfolio) (6)               7,267     6,727     8.0
Total allowance for credit losses                                  $158,059  $142,012  11.3
Allowance for credit losses / total loans and leases               1.06%     1.16%
Allowance for credit losses (originated loans and leases) /
total originated loans and leases (5)                              1.20%     1.23%
Allowance for credit losses (originated loans and leases) /
total non-performing loans (3)                                     182.75%   190.64%
Net loan charge-offs (annualized) / total average loans and leases 0.28%     0.21%
Net loan charge-offs on originated loans and leases
(annualized) / total average originated loans and leases (5)       0.34%     0.24%
Delinquency - Originated Portfolio (5)
Loans 30-89 days past due                                          $59,850   $46,683   28.2
Loans 90+ days past due                                            9,113     6,864     32.8
Non-accrual loans                                                  62,083    48,934    26.9
Total past due and non-accrual loans                               $131,046  $102,481  27.9
Total past due and non-accrual loans / total originated loans      1.04%     0.93%
Memo item:
Delinquency - Acquired Portfolio (6) (7)
Loans 30-89 days past due                                          $24,210   $15,034   61.0
Loans 90+ days past due                                            40,524    29,878    35.6
Non-accrual loans                                                  3,396     963       n/m
Total past due and non-accrual loans                               $68,130   $45,875   48.5
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                                   4Q16                            3Q16
                                                                   Interest  Average               Interest  Average
                                           Average                 Earned    Yield    Average      Earned    Yield
                                           Outstanding             or Paid   or Rate  Outstanding  or Paid   or Rate
Assets
Interest bearing deposits with banks       $93,481                 $87       0.37%    $140,713     $143      0.40%
Taxable investment securities  (8)         3,975,670               18,952    1.91%    3,919,203    18,432    1.88%
Non-taxable investment securities  (2)     388,265                 4,000     4.12%    321,360      3,456     4.30%
Residential mortgage loans held for sale   21,639                  222       4.10%    22,476       235       4.19%
Loans and leases  (2) (9)                  14,821,237              157,006   4.22%    14,641,729   155,739   4.23%
Total Interest Earning Assets  (2)         19,300,292              180,267   3.72%    19,045,481   178,005   3.72%
Cash and due from banks                    281,314                                    287,208
Allowance for loan losses                  (158,542)                                  (158,901)
Premises and equipment                     234,783                                    229,133
Other assets                               1,952,788                                  1,983,235
Total Assets                               $21,610,635                                $21,386,156
Liabilities
Deposits:
Interest-bearing demand                    $6,972,890              4,429     0.25%    $6,772,963   4,094     0.24%
Savings                                    2,310,901               434       0.07%    2,289,836    449       0.08%
Certificates and other time                2,560,660               5,989     0.93%    2,588,035    5,934     0.91%
Short-term borrowings                      2,316,169               3,656     0.63%    2,303,389    3,607     0.62%
Long-term borrowings                       544,236                 3,377     2.47%    616,141      3,520     2.27%
Total Interest Bearing Liabilities         14,704,856              17,885    0.48%    14,570,364   17,604    0.48%
Non-interest bearing demand deposits       4,123,539                                  4,021,023
Other liabilities                          207,472                                    232,076
Total Liabilities                          19,035,867                                 18,823,463
Stockholders’ equity                       2,573,768                                  2,562,693
Total Liabilities and Stockholders’ Equity $21,609,635                                $21,386,156
Net Interest Earning Assets                $4,595,436                                 $4,475,117
Net Interest Income (FTE) (2)                                      162,382                         160,401
Tax Equivalent Adjustment                                          (3,099)                         (2,895)
Net Interest Income                                                $159,283                        $157,506
Net Interest Spread                                                          3.24%                           3.24%
Net Interest Margin  (2)                                                     3.35%                           3.36%
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                           4Q15
                                                           Interest  Average
                                              Average      Earned    Yield
                                              Outstanding  or Paid   or Rate
Assets
Interest bearing deposits with banks          $53,777      $27       0.20%
Taxable investment securities  (8)            2,916,736    14,891    2.04%
Non-taxable investment securities  (2)        238,888      2,830     4.74%
Residential mortgage loans held for sale      9,182        125       5.47%
Loans and leases  (2) (9)                     12,014,285   125,005   4.14%
Total Interest Earning Assets  (2)            15,232,868   142,878   3.73%
Cash and due from banks                       239,159
Allowance for loan losses                     (139,571)
Premises and equipment                        161,338
Other assets                                  1,582,491
Total Assets                                  $17,076,285
Liabilities
Deposits:
Interest-bearing demand                       $5,486,974   2,480     0.18%
Savings                                       1,764,600    224       0.05%
Certificates and other time                   2,510,203    5,470     0.86%
Short-term borrowings                         1,382,073    1,726     0.50%
Long-term borrowings                          640,573      3,548     2.20%
Total Interest Bearing Liabilities            11,784,423   13,448    0.45%
Non-interest bearing demand deposits          3,025,773
Other liabilities                             166,498
Total Liabilities                             14,976,694
Stockholders’ equity                          2,099,591
Total Liabilities and Stockholders’ Equity    $17,076,285
Net Interest Earning Assets                   $3,448,445
Net Interest Income (FTE) (2)                              129,430
Tax Equivalent Adjustment                                  (2,097)
Net Interest Income                                        $127,333
Net Interest Spread                                                  3.28%
Net Interest Margin  (2)                                             3.38%
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                           For the Year Ended December 31,
                                                                   2016                            2015
                                                                   Interest  Average               Interest  Average
                                           Average                 Earned    Yield    Average      Earned    Yield
                                           Outstanding             or Paid   or Rate  Outstanding  or Paid   or Rate
Assets
Interest bearing deposits with banks       $116,769                $444      0.38%    $70,116      $117      0.17%
Taxable investment securities  (8)         3,720,800               71,853    1.93%    2,864,795    58,148    2.03%
Non-taxable investment securities  (2)     319,836                 13,815    4.32%    204,076      9,853     4.83%
Residential mortgage loans held for sale   16,525                  726       4.39%    7,773        382       4.91%
Loans and leases (2) (9)                   14,265,032              603,373   4.23%    11,650,742   485,930   4.17%
Total Interest Earning Assets  (2)         18,438,962              690,211   3.74%    14,797,502   554,430   3.75%
Cash and due from banks                    275,432                                    206,566
Allowance for loan losses                  (152,751)                                  (133,508)
Premises and equipment                     219,192                                    165,253
Other assets                               1,896,882                                  1,570,334
Total Assets                               $20,677,717                                $16,606,147
Liabilities
Deposits:
Interest-bearing demand                    $6,652,953              16,029    0.24%    $5,040,102   8,562     0.17%
Savings                                    2,237,020               1,712     0.08%    1,714,587    787       0.05%
Certificates and other time                2,600,340               23,498    0.90%    2,565,937    21,858    0.85%
Short-term borrowings                      1,975,742               12,183    0.62%    1,664,143    7,075     0.43%
Long-term borrowings                       616,283                 14,029    2.28%    566,914      10,291    1.82%
Total Interest Bearing Liabilities         14,082,338              67,451    0.48%    11,551,683   48,573    0.42%
Non-interest bearing demand deposits       3,884,941                                  2,832,982
Other liabilities                          210,462                                    149,312
Total Liabilities                          18,177,741                                 14,533,977
Stockholders’ equity                       2,499,976                                  2,072,170
Total Liabilities and Stockholders’ Equity $20,677,717                                $16,606,147
Net Interest Earning Assets                $4,356,624                                 $3,245,819
Net Interest Income (FTE) (2)                                      622,760                         505,857
Tax Equivalent Adjustment                                          (11,248)                        (7,635)
Net Interest Income                                                $611,512                        $498,222
Net Interest Spread                                                          3.26%                           3.33%
Net Interest Margin  (2)                                                     3.38%                           3.42%
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS
We believe the following non-GAAP financial measures used by F.N.B. Corporation provide information useful to investors in understanding F.N.B. Corporation’s operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation’s peers.  The non-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, F.N.B. Corporation’s reported results prepared in accordance with U.S. GAAP.  The following tables summarize the non-GAAP financial measures included in this press release and derived from amounts reported in F.N.B. Corporation’s financial statements.
                                                                                                                                     4Q16         3Q16         4Q15
Return on average tangible equity:
Net income (annualized)                                                                                                              $204,050     $207,540     $155,211
Amortization of intangibles, net of tax (annualized)                                                                                 5,857        10,970       6,965
Tangible net income (annualized)                                                                                                     209,907      218,510      162,176
Average total stockholders’ equity                                                                                                   2,573,768    2,562,693    2,099,591
Less:  Average intangibles                                                                                                           (1,089,216)  (1,093,378)  (870,842)
Average tangible stockholders’ equity                                                                                                1,484,552    1,469,315    1,228,749
Return on average tangible equity (non-GAAP)                                                                                         14.14%       14.87%       13.20%
Return on average tangible common equity:
Net income available to common stockholders (annualized)                                                                             $196,049     $199,543     $147,235
Amortization of intangibles, net of tax (annualized)                                                                                 5,857        10,970       6,965
Tangible net income available to common stockholders (annualized)                                                                    201,906      210,513      154,200
Average total stockholders’ equity                                                                                                   2,573,768    2,562,693    2,099,591
Less:  Average preferred stockholders’ equity                                                                                        (106,882)    (106,882)    (106,882)
Less:  Average intangibles                                                                                                           (1,089,216)  (1,093,378)  (870,842)
Average tangible common equity                                                                                                       1,377,670    1,362,433    1,121,867
Return on average tangible common equity (non-GAAP)                                                                                  14.66%       15.45%       13.74%
Return on average tangible assets:
Net income (annualized)                                                                                                              $204,050     $207,540     $155,211
Amortization of intangibles, net of tax (annualized)                                                                                 5,857        10,970       6,965
Tangible net income (annualized)                                                                                                     209,907      218,510      162,176
Average total assets                                                                                                                 21,609,635   21,386,156   17,076,285
Less:  Average intangibles                                                                                                           (1,089,216)  (1,093,378)  (870,842)
Average tangible assets                                                                                                              20,520,419   20,292,778   16,205,443
Return on average tangible assets (non-GAAP)                                                                                         1.02%        1.08%        1.00%
Tangible book value per common share:
Total stockholders’ equity                                                                                                           $2,571,617   $2,570,580   $2,096,182
Less:  preferred stockholders’ equity                                                                                                (106,882)    (106,882)    (106,882)
Less:  intangibles                                                                                                                   (1,085,935)  (1,091,876)  (869,809)
Tangible common equity                                                                                                               1,378,800    1,371,822    1,119,491
Ending common shares outstanding                                                                                                     211,059,547  210,224,194  175,441,670
Tangible book value per common share (non-GAAP)                                                                                      $6.53        $6.53        $6.38
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
                                                                  For the Year
                                                                  Ended December 31,
                                                                  2016         2015
Return on average tangible equity:
Net income (annualized)                                           $170,891     $159,649
Amortization of intangibles, net of tax (annualized)              8,943        6,861
Tangible net income (annualized)                                  179,834      166,511
Average total stockholders’ equity                                2,499,976    2,072,170
Less:  Average intangibles                                        (1,059,856)  (869,347)
Average tangible stockholders’ equity                             1,440,120    1,202,823
Return on average tangible equity (non-GAAP)                      12.49%       13.84%
Return on average tangible common equity:
Net income available to common stockholders (annualized)          $162,850     $151,608
Amortization of intangibles, net of tax (annualized)              8,943        6,861
Tangible net income available to common stockholders (annualized) 171,793      158,469
Average total stockholders’ equity                                2,499,976    2,072,170
Less:  Average preferred stockholders’ equity                     (106,882)    (106,882)
Less:  Average intangibles                                        (1,059,856)  (869,347)
Average tangible common equity                                    1,333,238    1,095,941
Return on average tangible common equity (non-GAAP)               12.89%       14.46%
Return on average tangible assets:
Net income (annualized)                                           $170,891     $159,649
Amortization of intangibles, net of tax (annualized)              8,943        6,861
Tangible net income (annualized)                                  179,834      166,511
Average total assets                                              20,677,717   16,606,147
Less:  Average intangibles                                        (1,059,856)  (869,347)
Average tangible assets                                           19,617,861   15,736,800
Return on average tangible assets (non-GAAP)                      0.92%        1.06%
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                                 4Q16         3Q16         4Q15
Tangible equity / tangible assets (period end):
Total shareholders’ equity                                       $2,571,617   $2,570,580   $2,096,182
Less:  intangibles                                               (1,085,935)  (1,091,876)  (869,809)
Tangible equity                                                  1,485,682    1,478,704    1,226,373
Total assets                                                     21,844,817   21,583,914   17,557,662
Less:  intangibles                                               (1,085,935)  (1,091,876)  (869,809)
Tangible assets                                                  20,758,882   20,492,038   16,687,853
Tangible equity / tangible assets (period end) (non-GAAP)        7.16%        7.22%        7.35%
Tangible common equity / tangible assets (period end):
Total stockholders’ equity                                       $2,571,617   $2,570,580   $2,096,182
Less:  preferred stockholders’ equity                            (106,882)    (106,882)    (106,882)
Less:  intangibles                                               (1,085,935)  (1,091,876)  (869,809)
Tangible common equity                                           1,378,800    1,371,822    1,119,491
Total assets                                                     21,844,817   21,583,914   17,557,662
Less:  intangibles                                               (1,085,935)  (1,091,876)  (869,809)
Tangible assets                                                  20,758,882   20,492,038   16,687,853
Tangible common equity / tangible assets (period end) (non-GAAP) 6.64%        6.69%        6.71%
KEY PERFORMANCE INDICATORS
Efficiency Ratio (FTE):
Total non-interest expense                                       $123,806     $121,050     $101,246
Less:  amortization of intangibles                               (1,602)      (3,571)      (2,157)
Less:  OREO expense                                              (2,401)      (1,172)      (849)
Less:  merger costs                                              (1,649)      (299)        (1,350)
Less:  impairment charge on other assets                         0            0            0
Adjusted non-interest expense                                    118,154      116,008      96,889
Net interest income                                              159,283      157,506      127,333
Taxable equivalent adjustment                                    3,099        2,895        2,097
Non-interest income                                              51,066       53,240       43,117
Less:  net securities gains                                      (116)        (299)        (503)
Less:  gain on redemption of trust preferred securities          0            0            0
Adjusted net interest income (FTE) + non-interest income         213,332      213,342      172,045
Efficiency ratio (FTE) (non-GAAP)                                55.38%       54.38%       56.32%
Core Net Interest Margin:
Net interest margin (FTE) (non-GAAP) (2)                         3.35%        3.36%        3.38%
Accretable yield adjustment                                      -0.03%       -0.04%       -0.03%
Core net interest margin (FTE) (non-GAAP) (2)                    3.32%        3.32%        3.35%
F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)
                                                        For the Year
                                                        Ended December 31,
                                                        2016      2015
KEY PERFORMANCE INDICATORS
Efficiency Ratio (FTE):
Total non-interest expense                              $511,133  $390,549
Less:  amortization of intangibles                      (11,210)  (8,305)
Less:  OREO expense                                     (5,154)   (4,637)
Less:  merger costs                                     (37,439)  (3,033)
Less:  impairment charge on other assets                (2,585)   0
Adjusted non-interest expense                           454,745   374,574
Net interest income                                     611,512   498,222
Taxable equivalent adjustment                           11,248    7,636
Non-interest income                                     201,761   162,410
Less:  net securities gains                             (712)     (822)
Less:  gain on redemption of trust preferred securities (2,422)   0
Adjusted net interest income (FTE) + non-interest income821,387   667,447
Efficiency ratio (FTE) (non-GAAP)                       55.36%    56.12%
Core Net Interest Margin:
Net interest margin (FTE) (non-GAAP) (2)                3.38%     3.42%
Accretable yield adjustment                             -0.04%    -0.03%
Core net interest margin (FTE) (non-GAAP) (2)           3.34%     3.39%
(1) See non-GAAP financial measures section of this Press Release for additional information relating to the calculation of this item.
(2) The net interest margin, core net interest margin and yield on earning assets (all non-GAAP measures) are presented on a fully taxable equivalent (FTE) basis, which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35% for each period presented.
(3) Does not include loans acquired at fair value ("acquired portfolio").
(4) Includes all other real estate owned, including those balances acquired through business combinations that have been in acquired loans prior to foreclosure.
(5) "Originated Portfolio" or "Originated Loans and Leases" equals loans and leases not included by definition in the Acquired Portfolio.
(6) "Acquired Portfolio" or "Acquired Loans" equals loans acquired at fair value, accounted for in accordance with ASC 805 which was effective January 1, 2009. The risk of credit loss on these loans has been considered by virtue of the Corporation’s estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.  Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting and then to any allowance for loan losses recognized subsequent to acquisition.
(7) Represents contractual balances.
(8) The average balances and yields earned on taxable investment securities are based on historical cost.
(9) Average balances for loans include non-accrual loans.  Loans and leases consist of average total loans and leases less average unearned income.  The amount of loan fees included in interest income is immaterial.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnb-corporation-reports-fourth-quarter-and-full-year-2016-earnings-300393090.html

SOURCE F.N.B. Corporation

https://rt.prnewswire.com/rt.gif?NewsItemId=NE90657&Transmission_Id=201701181701PR_NEWS_USPR_____NE90657&DateId=20170118



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