PITTSBURGH, July 24, 2018 /PRNewswire/ -- F.N.B.
Corporation (NYSE: FNB) reported earnings for the second quarter of
2018 with net income available to common stockholders of
$83.2 million, or $0.26 per diluted common share. Comparatively,
second quarter of 2017 net income available to common stockholders
totaled $72.4 million, or
$0.22 per diluted common share, and
first quarter of 2018 net income available to common stockholders
totaled $84.8 million, or
$0.26 per diluted common share.
On an operating basis, second quarter of 2018 earnings per
diluted common share (non-GAAP) was $0.27, excluding the after-tax impact of
$5.2 million of costs related to
branch consolidations as well as the after-tax impact of a
$0.7 million discretionary 401(k)
contribution made following tax reform. Of the branch
consolidation costs, $2.3 million
(after-tax) were included in non-interest expense and $2.9 million (after-tax) were booked as a loss on
fixed assets reducing non-interest income. Second quarter of 2017
operating earnings per diluted common share (non-GAAP) was
$0.23, excluding the after-tax impact
of $0.9 million of merger-related
expenses.
"During the second quarter of 2018, FNB produced record results
with operating earnings per share of $0.27, increasing 17% compared to prior year, and
total revenue surpassed $300 million
for the first time in our history," said Vince J. Delie Jr., Chairman, President and
Chief Executive Officer. "Operating net income increased 22%
compared to the prior year, led by solid loan and deposit growth
and excellent results in nearly all of our fee-based
businesses. Capital markets, mortgage banking, insurance,
brokerage and wealth management all benefited from increased
contributions from our Carolina markets, which have experienced
significant growth compared to the prior year. Additionally,
the quarter reflects the successful completion of several strategic
initiatives that better position our balance sheet and enhance our
long-term growth prospects, while maintaining our risk
profile."
Second Quarter 2018 Highlights
(All
comparisons refer to the second quarter of 2017, except as
noted)
- Growth in total average loans was $1.1
billion, or 5.3%, with average commercial loan growth of
$570 million, or 4.4%, and average
consumer loan growth of $514 million,
or 6.9%.
- Total average deposits increased $1.3
billion, or 6.3%, which included an increase in average
non-interest bearing deposits of $298
million, or 5.4%, and an increase in average time deposits
of $1.0 billion, or 26.7%.
- The loan to deposit ratio was 96.1% at June 30, 2018, compared to 97.5%.
- The net interest margin (FTE) (non-GAAP) expanded 9 basis
points to 3.51% from 3.42%.
- Total revenue increased 6.9% to $304
million, reflecting a 9.6% increase in net interest income,
partially offset by a 1.8% decrease in non-interest income.
- Non-interest income decreased $1.2
million or 1.8%. Excluding the loss on fixed assets related
to branch consolidations, non-interest income increased
$2.5 million or 3.8%, with continued
growth in wealth management, capital markets, and mortgage
banking.
- The efficiency ratio totaled 55.6%, compared to 54.3%.
- The annualized net charge-offs to total average loans ratio
increased to 0.34% from 0.23%.
- The ratio of the allowance for loan losses to total loans and
leases increased 1 basis point to 0.82%.
Non-GAAP measures referenced in this release are used by
management to measure performance in operating the business that
management believes enhances investors' ability to better
understand the underlying business performance and trends related
to core business activities. Reconciliations of non-GAAP operating
measures to the most directly comparable GAAP financial measures
are included in the tables at the end of this release.
"Incremental purchase accounting accretion" refers to the
difference between total accretion and the estimated coupon
interest income on acquired loans. "Organic growth" refers to
growth excluding the benefit of initial balances from
acquisitions.
Quarterly
Results Summary
|
|
2Q18
|
|
1Q18
|
|
2Q17
|
Reported
results
|
|
|
|
|
|
|
Net income available
to common stockholders (millions)
|
|
$
|
83.2
|
|
|
$
|
84.8
|
|
|
$
|
72.4
|
|
Net income per
diluted common share
|
|
$
|
0.26
|
|
|
$
|
0.26
|
|
|
$
|
0.22
|
|
Book value per common
share (period-end)
|
|
$
|
13.47
|
|
|
$
|
13.37
|
|
|
$
|
13.26
|
|
Operating results
(non-GAAP)
|
|
|
|
|
|
|
Operating net income
available to common stockholders (millions)
|
|
$
|
89.1
|
|
|
$
|
84.8
|
|
|
$
|
73.3
|
|
Operating net income
per diluted common share
|
|
$
|
0.27
|
|
|
$
|
0.26
|
|
|
$
|
0.23
|
|
Tangible common
equity to tangible assets (period-end)
|
|
6.79
|
%
|
|
6.78
|
%
|
|
6.83
|
%
|
Tangible book value
per common share (period-end)
|
|
$
|
6.26
|
|
|
$
|
6.14
|
|
|
$
|
6.00
|
|
Average Diluted Common Shares Outstanding
(thousands)
|
|
325,730
|
|
|
325,767
|
|
|
324,868
|
|
Significant items
influencing earnings1 (millions)
|
|
|
|
|
|
|
Pre-tax
merger-related expenses
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1.4)
|
|
After-tax impact of
merger-related expenses
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.9)
|
|
Pre-tax discretionary
401(k) contribution
|
|
$
|
(0.9)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
After-tax impact of
discretionary 401(k) contribution
|
|
$
|
(0.7)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Pre-tax branch
consolidation costs
|
|
$
|
(6.6)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
After-tax impact of
branch consolidation costs
|
|
$
|
(5.2)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
Favorable (unfavorable) impact on earnings
|
Year-to-Date
Results Summary
|
|
2018
|
|
2017
|
|
|
Reported
results
|
|
|
|
|
|
|
Net income available
to common stockholders (millions)
|
|
$
|
167.9
|
|
|
$
|
93.4
|
|
|
|
Net income per
diluted common share
|
|
$
|
0.52
|
|
|
$
|
0.33
|
|
|
|
Operating results
(non-GAAP)
|
|
|
|
|
|
|
Operating net income
available to common stockholders (millions)
|
|
$
|
173.9
|
|
|
$
|
127.7
|
|
|
|
Operating net income
per diluted common share
|
|
$
|
0.53
|
|
|
$
|
0.45
|
|
|
|
Average Diluted Common Shares Outstanding
(thousands)
|
|
325,729
|
|
|
282,285
|
|
|
|
Significant items
influencing earnings1 (millions)
|
|
|
|
|
|
|
Pre-tax
merger-related expenses
|
|
$
|
—
|
|
|
$
|
(54.1)
|
|
|
|
After-tax impact of
merger-related expenses
|
|
$
|
—
|
|
|
$
|
(36.1)
|
|
|
|
Pre-tax
merger-related net securities gains
|
|
$
|
—
|
|
|
$
|
2.6
|
|
|
|
After-tax impact of
net merger-related securities gains
|
|
$
|
—
|
|
|
$
|
1.7
|
|
|
|
Pre-tax discretionary
401(k) contribution
|
|
$
|
(0.9)
|
|
|
$
|
—
|
|
|
|
After-tax impact of
discretionary 401(k) contribution
|
|
$
|
(0.7)
|
|
|
$
|
—
|
|
|
|
Pre-tax branch
consolidation costs
|
|
$
|
(6.6)
|
|
|
$
|
—
|
|
|
|
After-tax impact of
branch consolidation costs
|
|
$
|
(5.2)
|
|
|
$
|
—
|
|
|
|
(1)
Favorable (unfavorable) impact on earnings
|
Second Quarter 2018 Results – Comparison to Prior-Year
Quarter
Net interest income totaled $239.4
million, increasing $20.9
million or 9.6%. The net interest margin (FTE) (non-GAAP)
expanded 9 basis points to 3.51% and included $5.8 million of incremental purchase accounting
accretion and $10.2 million of cash
recoveries, compared to $0.5 million
and $1.1 million, respectively, in
the second quarter of 2017. The tax equivalent adjustment to
net interest income totaled $3.3
million, compared to $4.5
million, primarily due to the lower federal statutory tax
rate. The impact of the tax equivalent adjustment to net interest
margin was 0.05%, compared to 0.07% in the same quarter last year.
Total average earning assets increased $1.6
billion, or 6.1%, due to average loan growth of $1.1 billion and a $0.6
billion increase in average securities.
Average loans totaled $21.4
billion and increased 5.3%, due to strong growth in the
commercial and consumer portfolios. Average commercial loan
growth totaled $570 million, or 4.4%,
led by strong commercial origination activity in the Cleveland and Mid-Atlantic (Greater Baltimore-Washington D.C. markets)
regions and continued growth in the equipment finance and
asset-based lending businesses. Average consumer loan growth
was $514 million, or 6.9%, as growth
in residential mortgage loans of $401
million or 16.6% and indirect auto loans of $315 million or 24.0% was partially offset by
declines in direct installment and consumer line of credit average
balances.
Average deposits totaled $22.5
billion and increased $1.3
billion, or 6.3%, reflecting growth in noninterest bearing
deposits of $298 million and growth
in time deposits of $1.0 billion. The
loan-to-deposit ratio was 96.1% at June 30,
2018, compared to 97.5% at June 30,
2017.
Non-interest income totaled $64.9
million, decreasing $1.2
million, or 1.8%, from the prior-year quarter, primarily due
to a $3.7 million loss on fixed
assets related to branch consolidations. Trust income increased
$0.8 million, or 13.2%, and
securities commissions increased $0.6
million, or 16.4%, reflecting organic growth and increased
brokerage activity. Capital markets increased $0.9 million, or 17.0%, from the prior-year
quarter, reflecting increased syndication fees and international
banking activity, and continued solid contributions from swap
fees. Mortgage banking income increased $0.8 million or 14.8% from the prior-year
quarter, largely due to increased contributions from the
Mid-Atlantic (Baltimore-Washington
D.C.) and Carolina markets.
Non-interest expense totaled $183.0
million, which included $2.9
million of expenses related to branch consolidations and a
$0.9 million discretionary 401(k)
contribution made following tax reform. Non-interest expense
increased 11.8% compared to the prior-year quarter, which included
$1.4 million of merger-related
expenses. The primary driver of the increase in non-interest
expense was a 16.2% increase in salaries and employee benefits,
which included items such as a large medical insurance claim of
$2.6 million, normal employee merit
raises and restricted stock awards at the start of the quarter, a
$1.0 million payroll tax rate
adjustment, and $1.4 million in
additional wage increases for hourly employees instituted following
tax reform. Occupancy and equipment expense increased $2.9 million from the prior-year quarter. The
efficiency ratio (non-GAAP) increased to 55.6% from 54.3%.
The ratio of non-performing loans and other real estate owned
(OREO) to total loans and OREO decreased 17 basis points to 0.61%
due to continued favorable trends in asset quality, as well as the
sale of $16 million of non-performing
loans in June 2018. For the
originated portfolio, the ratio of non-performing loans and OREO to
total loans and OREO decreased 37 basis points to 0.71%. Total
delinquency remains at satisfactory levels, and total originated
delinquency, defined as total past due and non-accrual originated
loans as a percentage of total originated loans, improved 31 basis
points to 0.68%, compared to 0.99% at June
30, 2017.
The provision for loan losses totaled $15.6 million, compared to $16.8 million in the prior-year quarter. Net
charge-offs totaled $18.2 million, or
0.34% annualized of total average loans, compared to $11.8 million, or 0.23% annualized in the
prior-year quarter, primarily due to the loan sale. For the
originated portfolio, net charge-offs were $14.8 million, or 0.36% annualized of total
average originated loans, compared to $12.7
million or 0.38% annualized of total average originated
loans. The ratio of the allowance for loan losses to total loans
and leases was 0.82% and 0.81% at June 30,
2018 and June 30, 2017,
respectively. For the originated portfolio, the allowance for loan
losses to total originated loans was 1.02%, compared to 1.15% at
June 30, 2017, with the decline
primarily attributable to the utilization of previously-established
reserves related to the loan sale.
The effective tax rate was 19.4%, compared to 28.5%, reflecting
the passage of the Tax Cuts and Jobs Act (TCJA), which lowered the
U.S. corporate income tax rate from 35% to 21% as of January 1, 2018.
The tangible common equity to tangible assets ratio (non-GAAP)
decreased 4 basis points to 6.79% at June
30, 2018, compared to 6.83% at June
30, 2017. The decline was primarily due to a
$54 million reduction in the
valuation of net deferred tax assets related to the enactment of
the TCJA during the fourth quarter of 2017. The tangible book
value per common share (non-GAAP) was $6.26 at June 30,
2018, an increase of $0.26
from June 30, 2017.
Second Quarter 2018 Results – Comparison to Prior
Quarter
Net interest income totaled $239.4
million, increasing $13.3
million or 5.9%. The net interest margin (FTE) (non-GAAP)
expanded 12 basis points to 3.51% and included $5.8 million of incremental purchase accounting
accretion and $10.2 million of cash
recoveries, compared to $4.8 million
and $1.1 million, respectively, in
the first quarter. The tax equivalent adjustment to net
interest income totaled $3.3 million,
compared to $3.1 million, and the
impact of the tax equivalent adjustment to net interest margin was
0.05% for both quarters. Total average earning assets increased
$431 million, or 6.3% annualized, due
to average loan growth of $289
million and a $217 million
increase in average securities.
Average loans totaled $21.4
billion and increased 5.5% annualized, primarily due to
strong growth in the consumer portfolio. Average commercial loan
growth totaled $100 million, or 3.0%
annualized, led by strong commercial origination activity in the
Cleveland, Mid-Atlantic
(Greater Baltimore-Washington
D.C.) and Pennsylvania
community markets. Average consumer loan growth was
$190 million, or 9.7% annualized, as
continued growth in residential mortgage loans of $91 million, or 13.3% annualized, and indirect
auto loans of $151 million, or 41.2%
annualized, was partially offset by declines in direct installment
and consumer line of credit average balances.
Average deposits totaled $22.5
billion and increased $314
million, or 5.7% annualized, as growth in average time
deposits and average noninterest bearing deposits of $175 million and $157
million, respectively, was partially offset by slightly
lower interest-bearing transaction deposits. The loan-to-deposit
ratio was 96.1% at June 30, 2018,
compared to 94.5% at March 31,
2018.
Non-interest income totaled $64.9
million, decreasing $2.6
million, or 3.9%, from the prior quarter. Excluding the
previously mentioned loss on fixed assets, non-interest income
increased $1.1 million. Securities
commissions increased $0.2 million,
or 4.8%, from the prior quarter, reflecting organic growth and
increased brokerage activity. Capital markets increased
$0.6 million, or 12.3%.
Mortgage banking income increased 7.4% to $5.9 million and reflects higher seasonal
volume.
Non-interest expense totaled $183.0
million, an increase of 7.0% compared to the prior quarter,
and included branch consolidation expenses of $2.9 million and a $0.9
million discretionary 401(k) contribution made following tax
reform. On an operating basis, non-interest expense totaled
$179.2 million, an increase of
$8.1 million or 4.7%. The primary
driver of the linked-quarter increase in non-interest expense was a
10.5% increase in salaries and employee benefits related to items
such as a large medical insurance claim of $2.6 million, annual employee merit raises and
restricted stock awards which came
into effect at the start of the quarter, a $1.0 million payroll tax rate adjustment and
$1.4 million in wage increases for
hourly employees instituted following tax reform. The efficiency
ratio (non-GAAP) decreased to 55.6% from 55.8%.
The ratio of non-performing loans and OREO to total loans and
OREO decreased 6 basis points to 0.61%, primarily due to a sale of
$16 million of non-performing loans.
For the originated portfolio, the ratio of non-performing loans and
OREO to total loans and OREO decreased 10 basis points to 0.71%.
Total delinquency remains at satisfactory levels, and total
originated delinquency, defined as total past due and non-accrual
originated loans as a percentage of total originated loans,
improved 11 basis points to 0.68%, compared to 0.79% at
March 31, 2018.
The provision for loan losses totaled $15.6 million, compared to $14.5 million in the prior quarter. Net
charge-offs totaled $18.2 million, or
0.34% annualized of total average loans, compared to $10.6 million, or 0.20% annualized in the prior
quarter, primarily due to the loan sale. For the originated
portfolio, net charge-offs were $14.8
million, or 0.36% annualized of total average originated
loans, compared to $11.0 million or
0.29% annualized of total average originated loans. The ratio of
the allowance for loan losses to total loans and leases was 0.82%
and 0.84% at June 30, 2018 and
March 31, 2018, respectively. For the
originated portfolio, the allowance for loan losses to total
originated loans declined to 1.02% from to 1.08% at March 31, 2018, with the decline primarily
attributable to the utilization of previously-established reserves
related to the loan sale.
The effective tax rate was 19.4%, compared to 19.7% in the prior
quarter. The tangible common equity to tangible assets ratio
(non-GAAP) increased 1 basis point to 6.79% at June 30, 2018, compared to 6.78% at March 31, 2018. The tangible book value per
common share (non-GAAP) was $6.26 at
June 30, 2018, an increase of
$0.12 from March 31, 2018.
June 30, 2018 Year-To-Date
Results - Comparison to Prior Year-To-Date Period
Net interest income totaled $465.5
million, increasing $74.3
million, or 19.0%, reflecting average earning asset growth
of $3.8 billion, or 16.1%, due to the
benefit of balances acquired on March 11,
2017 and organic growth. The net interest margin (FTE)
(non-GAAP) expanded 6 basis points to 3.45% and included
$7.1 million of higher incremental
purchase accounting accretion and $9.8
million of higher cash recoveries, compared to the first six
months of 2017. The tax-equivalent adjustment to net interest
income totaled $6.4 million, compared
to $8.0 million, primarily due to the
lower federal statutory tax rate.
Average loans totaled $21.3
billion, an increase of $3.0
billion, or 16.5%, due to the benefit from acquired balances
and continued organic growth. Organic growth in total average loans
equaled $1.0 billion, or 4.9%. Total
average organic consumer loan growth of $506
million, or 6.8%, was led by strong growth in residential
mortgage loans of $400 million and
indirect auto loans of $281 million,
partially offset by declines in consumer credit lines and direct
installment balances. Organic growth in average commercial loans
totaled $494 million, or 3.8%.
Average deposits totaled $22.3
billion and increased $3.2
billion, or 16.6%, due to the benefit of acquired balances
and average organic growth of $1.2
billion or 5.7%.
Non-interest income totaled $132.4
million, increasing $11.2
million or 9.2%. Excluding the $3.7 million loss on fixed assets related to
branch consolidations, non-interest income for the first six months
of 2018 increased $14.9 million, or
12.3%, and benefited from the expanded operations in North and
South Carolina and continued
expansion of our fee-based businesses of wealth management, capital
markets, mortgage banking and insurance.
Non-interest expense totaled $354.1
million, increasing $2.8
million, or 0.8%. The first six months of 2018 included
$2.9 million of branch consolidation
expenses and a $0.9 million
discretionary 401(k) contribution made following tax reform, and
the first six months of 2017 included $54.1
million of merger-related expenses. Excluding these
expenses, total non-interest expense increased $53.1 million, or 17.9%, with the increase
primarily attributable to the expanded operations in North and
South Carolina. The efficiency
ratio (non-GAAP) was 55.7%, compared to 55.5% in the first six
months of 2017.
The provision for loan losses was $30.0
million for the first six months of 2018, compared to
$27.6 million for the first six
months of 2017. Net charge-offs totaled $28.9 million, or 0.27% annualized of total
average loans, compared to $20.0
million or 0.22% in the first six months of 2017, partially
due to the loan sale in the second quarter of 2018. Originated net
charge-offs were 0.33% annualized of total average originated
loans, compared to 0.31% annualized of total average originated
loans.
The effective tax rate was 19.5%, compared to 27.0%, reflecting
the passage of the TCJA, which lowered the U.S. corporate income
tax rate from 35% to 21% as of January
1, 2018. The effective tax rate for the first six
months of 2017 was affected by merger-related items.
Use of Non-GAAP Financial Measures and Key Performance
Indicators
To supplement our Consolidated Financial Statements presented in
accordance with GAAP, we use certain non-GAAP financial measures,
such as operating net income available to common stockholders,
operating earnings per diluted common share, return on average
tangible equity, return on average tangible common equity, return
on average tangible assets, tangible book value per common share,
the ratio of tangible equity to tangible assets, the ratio of
tangible common equity to tangible assets, efficiency ratio, and
net interest margin (FTE) to provide information useful to
investors in understanding our operating performance and trends,
and to facilitate comparisons with the performance of our peers.
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 assess their performance and trends.
These non-GAAP financial measures should be viewed as
supplemental in nature, and not as a substitute for or superior to,
our reported results prepared in accordance with GAAP. In the event
of such a disclosure or release of non-GAAP financial measures, the
Securities and Exchange Commission's (SEC) Regulation G requires:
(i) the presentation of the most directly comparable financial
measure calculated and presented in accordance with GAAP and (ii) a
reconciliation of the differences between the non-GAAP financial
measure presented and the most directly comparable financial
measure calculated and presented in accordance with GAAP (included
in the tables at the end of this release).
Management believes charges such as merger expenses, branch
consolidation costs and special employee 401(k) contributions
related to tax reform are not organic costs to run our operations
and facilities. These charges principally represent expenses to
satisfy contractual obligations of the acquired entity or closed
branch without any useful ongoing benefit to us. These costs are
specific to each individual transaction and may vary significantly
based on the size and complexity of the transaction.
The second quarter 2018 results continued to reflect the change
in the statutory federal income tax rate from 35% to 21% effective
as of January 1, 2018 as a result of
the enactment of the TCJA. The fourth quarter 2017 results were
unfavorably impacted by income tax expense from the new federal tax
legislation primarily attributed to revaluation of net deferred tax
assets at the lower statutory tax rate. Our business segment
results for the fourth quarter of 2017 reflect the allocation of
the impact of the new tax legislation to our business segments,
primarily the revaluation of the net deferred tax positions
allocated to these segments where certain income tax effects could
be reasonably estimated. These were included as provisional
amounts as of December 31,
2017. As a result, these provisional amounts could be
adjusted during the measurement period, which will end on
December 22, 2018, one year after the
TCJA enactment date. No changes have been made to these
provisional amounts in the first half of 2018 as we continue to
finalize our analysis.
To provide more meaningful comparisons of net interest margin
and efficiency ratio, we use net interest income on a
taxable-equivalent basis in calculating net interest margin by
increasing the interest income earned on tax-exempt assets (loans
and investments) to make it fully equivalent to interest income
earned on taxable investments (this adjustment is not permitted
under GAAP). Taxable equivalent amounts for the 2018 period
were calculated using a federal income tax rate of 21% provided
under the TCJA (effective January 1,
2018). Amounts for the 2017 periods were calculated using the
previously applicable statutory federal income tax rate of 35%.
Cautionary Statement Regarding Forward-Looking
Information
A number of statements (i) in this earnings release, (ii) in our
presentations, and (iii) in our responses to questions on our
conference call discussing our quarterly results and transactions,
strategies and plans may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including our expectations relative to business and financial
metrics, our outlook regarding revenues, expenses, earnings,
liquidity, asset quality and statements regarding the impact of
technology enhancements and customer and business process
improvements.
All forward-looking statements speak only as of the date they
are made and are based on information available at that time. We
assume 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.
Such forward-looking statements may be expressed in a variety of
ways, including the use of future and present tense language
expressing expectations or predictions of future financial or
business performance or conditions based on current performance and
trends. Forward-looking statements are typically 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 involve certain risks and uncertainties.
In addition to factors previously disclosed in our reports filed
with the SEC, the following factors, among others, could cause
actual results to differ materially from forward-looking statements
or historical performance: changes in asset quality and credit
risk; the inability to sustain revenue and earnings growth; changes
in interest rates and capital markets; inflation; potential
difficulties encountered 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 and technology
initiatives; competitive conditions; the inability to realize cost
savings or revenues or to implement integration plans and other
consequences associated with acquisitions and divestitures;
inability to originate and re-sell mortgage loans in accordance
with business plans; economic conditions; interruption in or breach
of security of our information systems; integrity and functioning
of products, information systems and services provided by third
party external vendors; changes in tax rules and regulations or
interpretations including, but not limited to, the recently enacted
TCJA; changes in accounting policies, standards and
interpretations; liquidity risk; changes in asset valuations; and
the impact, extent and timing of technological changes, capital
management activities, and other actions of the Office of the
Comptroller of the Currency, the Board of Governors of the Federal
Reserve System, the Consumer Financial Protection Bureau, the
Federal Deposit Insurance Corporation and legislative and
regulatory actions and reforms.
Actual results may differ materially from those expressed or
implied as a result of these risks and uncertainties, including,
but not limited to, the risk factors and other uncertainties
described in our Annual Report on Form 10-K for the year ended
December 31, 2017, our subsequent
quarterly 2018 Form 10-Q's (including the risk factors and risk
management discussions) and our other subsequent filings with the
SEC, which are available on our corporate website at
https://www.fnb-online.com/about-us/investor-relations-shareholder-services.
We have included our web address as an inactive textual reference
only. Information on our website is not part of this earnings
release.
Conference Call
FNB's Chairman, 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 Tuesday, July
24, 2018, at 10:30 AM ET.
Participants are encouraged to pre-register for the conference
call at http://dpregister.com/10121652. 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 "Investor
Relations and Shareholder Services" 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 prior to the start of the call on
the "Investor Relations and Shareholder Services" section of the
Corporation's website at www.fnbcorporation.com.
A replay of the call will be available shortly after the
completion of the call until midnight ET on Tuesday, July 31, 2018. The replay can be
accessed by dialing (877) 344-7529 or (412) 317-0088 for
international callers; the conference replay access code is
10121652. Following the call, the related presentation materials
will be posted to the "Investor Relations and Shareholder Services"
section of F.N.B. Corporation's website at
www.fnbcorporation.com.
About F.N.B. Corporation
F.N.B. Corporation (NYSE:FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified
financial services company operating in eight states. FNB holds a
significant retail deposit market share in attractive markets
including: Pittsburgh,
Pennsylvania; Baltimore,
Maryland; Cleveland, Ohio;
and Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High
Point) in North Carolina.
The Company has total assets of $32
billion, and more than 400 banking offices throughout
Pennsylvania, Ohio, Maryland, West
Virginia, North Carolina
and South Carolina. The Company
also operates Regency Finance Company, which has more than 75
consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee. On June 7,
2018, FNB announced that it has entered into an agreement to
sell Regency Finance Company, with a closing expected prior to the
end of 2018.
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, 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 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.
F.N.B.
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
2Q18
|
|
2Q18
|
|
For the Six Months
Ended
June 30,
|
|
%
|
Statement of
Earnings
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
1Q18
|
|
2Q17
|
|
2018
|
|
2017
|
|
Var.
|
Interest
income
|
$
|
294,117
|
|
|
$
|
272,927
|
|
|
$
|
251,034
|
|
|
7.8
|
|
|
17.2
|
|
|
$
|
567,044
|
|
|
$
|
445,727
|
|
|
27.2
|
|
Interest
expense
|
54,762
|
|
|
46,822
|
|
|
32,619
|
|
|
17.0
|
|
|
67.9
|
|
|
101,584
|
|
|
54,560
|
|
|
86.2
|
|
Net interest
income
|
239,355
|
|
|
226,105
|
|
|
218,415
|
|
|
5.9
|
|
|
9.6
|
|
|
465,460
|
|
|
391,167
|
|
|
19.0
|
|
Provision for credit
losses
|
15,554
|
|
|
14,495
|
|
|
16,756
|
|
|
7.3
|
|
|
(7.2)
|
|
|
30,049
|
|
|
27,606
|
|
|
8.8
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges
|
31,114
|
|
|
30,077
|
|
|
32,090
|
|
|
3.4
|
|
|
(3.0)
|
|
|
61,191
|
|
|
56,671
|
|
|
8.0
|
|
Trust
services
|
6,469
|
|
|
6,448
|
|
|
5,715
|
|
|
0.3
|
|
|
13.2
|
|
|
12,917
|
|
|
11,462
|
|
|
12.7
|
|
Insurance commissions
and fees
|
4,567
|
|
|
5,135
|
|
|
4,347
|
|
|
(11.1)
|
|
|
5.1
|
|
|
9,702
|
|
|
9,488
|
|
|
2.3
|
|
Securities
commissions and fees
|
4,526
|
|
|
4,319
|
|
|
3,887
|
|
|
4.8
|
|
|
16.4
|
|
|
8,845
|
|
|
7,510
|
|
|
17.8
|
|
Capital markets
income
|
5,854
|
|
|
5,214
|
|
|
5,004
|
|
|
12.3
|
|
|
17.0
|
|
|
11,068
|
|
|
8,851
|
|
|
25.0
|
|
Mortgage banking
operations
|
5,940
|
|
|
5,529
|
|
|
5,173
|
|
|
7.4
|
|
|
14.8
|
|
|
11,469
|
|
|
8,963
|
|
|
28.0
|
|
Net securities
gains
|
31
|
|
|
—
|
|
|
493
|
|
|
n/m
|
|
|
n/m
|
|
|
31
|
|
|
3,118
|
|
|
n/m
|
|
Other
|
6,388
|
|
|
10,781
|
|
|
9,369
|
|
|
(40.7)
|
|
|
(31.8)
|
|
|
17,169
|
|
|
15,131
|
|
|
13.5
|
|
Total non-interest
income
|
64,889
|
|
|
67,503
|
|
|
66,078
|
|
|
(3.9)
|
|
|
(1.8)
|
|
|
132,392
|
|
|
121,194
|
|
|
9.2
|
|
Total
revenue
|
304,244
|
|
|
293,608
|
|
|
284,493
|
|
|
3.6
|
|
|
6.9
|
|
|
597,852
|
|
|
512,361
|
|
|
16.7
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
98,671
|
|
|
89,326
|
|
|
84,899
|
|
|
10.5
|
|
|
16.2
|
|
|
187,997
|
|
|
158,477
|
|
|
18.6
|
|
Occupancy and
equipment
|
29,332
|
|
|
30,033
|
|
|
26,480
|
|
|
(2.3)
|
|
|
10.8
|
|
|
59,365
|
|
|
47,459
|
|
|
25.1
|
|
FDIC
insurance
|
9,167
|
|
|
8,834
|
|
|
9,376
|
|
|
3.8
|
|
|
(2.2)
|
|
|
18,001
|
|
|
14,763
|
|
|
21.9
|
|
Amortization of
intangibles
|
3,811
|
|
|
4,218
|
|
|
4,813
|
|
|
(9.6)
|
|
|
(20.8)
|
|
|
8,029
|
|
|
7,911
|
|
|
1.5
|
|
Other real estate
owned
|
2,233
|
|
|
1,367
|
|
|
1,008
|
|
|
63.4
|
|
|
121.5
|
|
|
3,600
|
|
|
1,991
|
|
|
80.8
|
|
Merger-related
|
—
|
|
|
—
|
|
|
1,354
|
|
|
n/m
|
|
|
n/m
|
|
|
—
|
|
|
54,078
|
|
|
n/m
|
|
Other
|
39,799
|
|
|
37,305
|
|
|
35,784
|
|
|
6.7
|
|
|
11.2
|
|
|
77,104
|
|
|
66,590
|
|
|
15.8
|
|
Total non-interest
expense
|
183,013
|
|
|
171,083
|
|
|
163,714
|
|
|
7.0
|
|
|
11.8
|
|
|
354,096
|
|
|
351,269
|
|
|
0.8
|
|
Income before income
taxes
|
105,677
|
|
|
108,030
|
|
|
104,023
|
|
|
(2.2)
|
|
|
1.6
|
|
|
213,707
|
|
|
133,486
|
|
|
60.1
|
|
Income
taxes
|
20,471
|
|
|
21,268
|
|
|
29,617
|
|
|
(3.7)
|
|
|
(30.9)
|
|
|
41,739
|
|
|
36,101
|
|
|
15.6
|
|
Net
income
|
85,206
|
|
|
86,762
|
|
|
74,406
|
|
|
(1.8)
|
|
|
14.5
|
|
|
171,968
|
|
|
97,385
|
|
|
76.6
|
|
Preferred stock
dividends
|
2,010
|
|
|
2,010
|
|
|
2,010
|
|
|
—
|
|
|
—
|
|
|
4,020
|
|
|
4,020
|
|
|
—
|
|
Net income
available to
common stockholders
|
$
|
83,196
|
|
|
$
|
84,752
|
|
|
$
|
72,396
|
|
|
(1.8)
|
|
|
14.9
|
|
|
$
|
167,948
|
|
|
$
|
93,365
|
|
|
79.9
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.26
|
|
|
$
|
0.26
|
|
|
$
|
0.22
|
|
|
—
|
|
|
18.2
|
|
|
$
|
0.52
|
|
|
$
|
0.33
|
|
|
57.6
|
|
Diluted
|
$
|
0.26
|
|
|
$
|
0.26
|
|
|
$
|
0.22
|
|
|
—
|
|
|
18.2
|
|
|
$
|
0.52
|
|
|
$
|
0.33
|
|
|
57.6
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F.N.B.
CORPORATION
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
2Q18
|
|
2Q18
|
Balance Sheets (at
period end)
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
1Q18
|
|
2Q17
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
398,641
|
|
|
$
|
325,101
|
|
|
$
|
397,482
|
|
|
22.6
|
|
|
0.3
|
|
Interest bearing
deposits with banks
|
35,058
|
|
|
61,228
|
|
|
125,136
|
|
|
(42.7)
|
|
|
(72.0)
|
|
Cash and cash
equivalents
|
433,699
|
|
|
386,329
|
|
|
522,618
|
|
|
12.3
|
|
|
(17.0)
|
|
Securities available
for sale
|
3,002,787
|
|
|
2,927,463
|
|
|
2,593,455
|
|
|
2.6
|
|
|
15.8
|
|
Securities held to
maturity
|
3,295,081
|
|
|
3,224,000
|
|
|
3,075,634
|
|
|
2.2
|
|
|
7.1
|
|
Loans held for
sale
|
44,112
|
|
|
37,982
|
|
|
168,727
|
|
|
16.1
|
|
|
(73.9)
|
|
Loans and leases, net
of unearned income
|
21,659,582
|
|
|
21,262,397
|
|
|
20,533,298
|
|
|
1.9
|
|
|
5.5
|
|
Allowance for credit
losses
|
(176,574)
|
|
|
(179,247)
|
|
|
(165,699)
|
|
|
(1.5)
|
|
|
6.6
|
|
Net loans and
leases
|
21,483,008
|
|
|
21,083,150
|
|
|
20,367,599
|
|
|
1.9
|
|
|
5.5
|
|
Premises and
equipment, net
|
324,659
|
|
|
333,424
|
|
|
335,297
|
|
|
(2.6)
|
|
|
(3.2)
|
|
Goodwill
|
2,251,349
|
|
|
2,251,281
|
|
|
2,244,972
|
|
|
—
|
|
|
0.3
|
|
Core deposit and
other intangible assets, net
|
84,096
|
|
|
87,858
|
|
|
101,682
|
|
|
(4.3)
|
|
|
(17.3)
|
|
Bank owned life
insurance
|
532,135
|
|
|
529,843
|
|
|
476,363
|
|
|
0.4
|
|
|
11.7
|
|
Other
assets
|
806,637
|
|
|
791,023
|
|
|
867,379
|
|
|
2.0
|
|
|
(7.0)
|
|
Total
Assets
|
$
|
32,257,563
|
|
|
$
|
31,652,353
|
|
|
$
|
30,753,726
|
|
|
1.9
|
|
|
4.9
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
demand
|
$
|
5,926,473
|
|
|
$
|
5,748,568
|
|
|
$
|
5,544,753
|
|
|
3.1
|
|
|
6.9
|
|
Interest bearing
demand
|
9,134,954
|
|
|
9,407,111
|
|
|
9,221,408
|
|
|
(2.9)
|
|
|
(0.9)
|
|
Savings
|
2,607,372
|
|
|
2,600,151
|
|
|
2,562,259
|
|
|
0.3
|
|
|
1.8
|
|
Certificates and
other time deposits
|
4,870,988
|
|
|
4,741,259
|
|
|
3,723,287
|
|
|
2.7
|
|
|
30.8
|
|
Total
Deposits
|
22,539,787
|
|
|
22,497,089
|
|
|
21,051,707
|
|
|
0.2
|
|
|
7.1
|
|
Short-term
borrowings
|
4,334,146
|
|
|
3,802,480
|
|
|
4,425,967
|
|
|
14.0
|
|
|
(2.1)
|
|
Long-term
borrowings
|
628,938
|
|
|
659,890
|
|
|
656,883
|
|
|
(4.7)
|
|
|
(4.3)
|
|
Other
liabilities
|
281,450
|
|
|
259,441
|
|
|
226,731
|
|
|
8.5
|
|
|
24.1
|
|
Total
Liabilities
|
27,784,321
|
|
|
27,218,900
|
|
|
26,361,288
|
|
|
2.1
|
|
|
5.4
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
106,882
|
|
|
106,882
|
|
|
106,882
|
|
|
—
|
|
|
—
|
|
Common
stock
|
3,262
|
|
|
3,255
|
|
|
3,250
|
|
|
0.2
|
|
|
0.4
|
|
Additional paid-in
capital
|
4,043,124
|
|
|
4,037,847
|
|
|
4,024,576
|
|
|
0.1
|
|
|
0.5
|
|
Retained
earnings
|
457,326
|
|
|
413,340
|
|
|
333,201
|
|
|
10.6
|
|
|
37.3
|
|
Accumulated other
comprehensive loss
|
(115,885)
|
|
|
(108,724)
|
|
|
(56,383)
|
|
|
6.6
|
|
|
105.5
|
|
Treasury
stock
|
(21,467)
|
|
|
(19,147)
|
|
|
(19,088)
|
|
|
12.1
|
|
|
12.5
|
|
Total Stockholders'
Equity
|
4,473,242
|
|
|
4,433,453
|
|
|
4,392,438
|
|
|
0.9
|
|
|
1.8
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
32,257,563
|
|
|
$
|
31,652,353
|
|
|
$
|
30,753,726
|
|
|
1.9
|
|
|
4.9
|
|
F.N.B.
Corporation
|
|
2Q18
|
|
1Q18
|
|
2Q17
|
(Unaudited)
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
(Dollars in
thousands)
|
|
Average
|
|
Earned
|
|
Yield
|
|
Average
|
|
Earned
|
|
Yield
|
|
Average
|
|
Earned
|
|
Yield
|
|
|
Outstanding
|
|
or
Paid
|
|
or
Rate
|
|
Outstanding
|
|
or Paid
|
|
or Rate
|
|
Outstanding
|
|
or Paid
|
|
or Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
deposits with banks
|
|
$
|
47,783
|
|
|
$
|
267
|
|
|
2.24
|
%
|
|
$
|
103,904
|
|
|
$
|
360
|
|
|
1.40
|
%
|
|
$
|
87,750
|
|
|
$
|
161
|
|
|
0.74
|
%
|
Taxable investment
securities (2)
|
|
5,218,200
|
|
|
28,995
|
|
|
2.22
|
|
|
5,046,294
|
|
|
26,879
|
|
|
2.13
|
|
|
4,923,492
|
|
|
25,130
|
|
|
2.04
|
|
Non-taxable
investment securities (1)
|
|
995,704
|
|
|
8,727
|
|
|
3.51
|
|
|
951,021
|
|
|
8,278
|
|
|
3.48
|
|
|
683,465
|
|
|
7,128
|
|
|
4.17
|
|
Loans held for
sale
|
|
46,667
|
|
|
767
|
|
|
6.58
|
|
|
65,897
|
|
|
911
|
|
|
5.56
|
|
|
93,312
|
|
|
1,702
|
|
|
8.70
|
|
Loans and
leases (1) (3)
|
|
21,445,030
|
|
|
258,680
|
|
|
4.84
|
|
|
21,155,619
|
|
|
239,602
|
|
|
4.58
|
|
|
20,361,047
|
|
|
221,387
|
|
|
4.37
|
|
Total Interest
Earning Assets (1)
|
|
27,753,384
|
|
|
297,436
|
|
|
4.30
|
|
|
27,322,735
|
|
|
276,030
|
|
|
4.08
|
|
|
26,149,066
|
|
|
255,508
|
|
|
3.92
|
|
Cash and due from
banks
|
|
359,714
|
|
|
|
|
|
|
358,717
|
|
|
|
|
|
|
338,752
|
|
|
|
|
|
Allowance for loan
losses
|
|
(182,598)
|
|
|
|
|
|
|
(180,478)
|
|
|
|
|
|
|
(165,888)
|
|
|
|
|
|
Premises and
equipment
|
|
331,739
|
|
|
|
|
|
|
336,816
|
|
|
|
|
|
|
350,255
|
|
|
|
|
|
Other
assets
|
|
3,685,512
|
|
|
|
|
|
|
3,656,716
|
|
|
|
|
|
|
3,692,460
|
|
|
|
|
|
Total
Assets
|
|
$
|
31,947,751
|
|
|
|
|
|
|
$
|
31,494,506
|
|
|
|
|
|
|
$
|
30,364,645
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
$
|
9,287,811
|
|
|
13,691
|
|
|
0.59
|
|
|
$
|
9,388,774
|
|
|
11,454
|
|
|
0.49
|
|
|
$
|
9,297,726
|
|
|
8,256
|
|
|
0.36
|
|
Savings
|
|
2,620,084
|
|
|
1,490
|
|
|
0.24
|
|
|
2,536,439
|
|
|
1,031
|
|
|
0.17
|
|
|
2,592,726
|
|
|
641
|
|
|
0.10
|
|
Certificates and
other time
|
|
4,811,842
|
|
|
15,868
|
|
|
1.30
|
|
|
4,637,032
|
|
|
13,984
|
|
|
1.20
|
|
|
3,798,714
|
|
|
7,856
|
|
|
0.83
|
|
Short-term
borrowings
|
|
4,098,161
|
|
|
18,409
|
|
|
1.79
|
|
|
3,985,254
|
|
|
15,207
|
|
|
1.54
|
|
|
3,886,410
|
|
|
10,959
|
|
|
1.13
|
|
Long-term
borrowings
|
|
650,562
|
|
|
5,304
|
|
|
3.27
|
|
|
660,970
|
|
|
5,146
|
|
|
3.16
|
|
|
680,414
|
|
|
4,907
|
|
|
2.89
|
|
Total Interest
Bearing Liabilities
|
|
21,468,460
|
|
|
54,762
|
|
|
1.02
|
|
|
21,208,469
|
|
|
46,822
|
|
|
0.89
|
|
|
20,255,990
|
|
|
32,619
|
|
|
0.65
|
|
Non-interest bearing
demand deposits
|
|
5,764,144
|
|
|
|
|
|
|
5,607,640
|
|
|
|
|
|
|
5,466,286
|
|
|
|
|
|
Other
liabilities
|
|
253,637
|
|
|
|
|
|
|
248,128
|
|
|
|
|
|
|
255,931
|
|
|
|
|
|
Total
Liabilities
|
|
27,486,241
|
|
|
|
|
|
|
27,064,237
|
|
|
|
|
|
|
25,978,207
|
|
|
|
|
|
Stockholders'
equity
|
|
4,461,510
|
|
|
|
|
|
|
4,430,269
|
|
|
|
|
|
|
4,386,438
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
31,947,751
|
|
|
|
|
|
|
$
|
31,494,506
|
|
|
|
|
|
|
$
|
30,364,645
|
|
|
|
|
|
Net Interest Earning
Assets
|
|
$
|
6,284,924
|
|
|
|
|
|
|
$
|
6,114,266
|
|
|
|
|
|
|
$
|
5,893,076
|
|
|
|
|
|
Net Interest Income
(FTE) (1)
|
|
|
|
242,674
|
|
|
|
|
|
|
229,208
|
|
|
|
|
|
|
222,889
|
|
|
|
Tax Equivalent
Adjustment
|
|
|
|
(3,319)
|
|
|
|
|
|
|
(3,103)
|
|
|
|
|
|
|
(4,474)
|
|
|
|
Net Interest
Income
|
|
|
|
$
|
239,355
|
|
|
|
|
|
|
$
|
226,105
|
|
|
|
|
|
|
$
|
218,415
|
|
|
|
Net Interest
Spread
|
|
|
|
|
|
3.28
|
%
|
|
|
|
|
|
3.19
|
%
|
|
|
|
|
|
3.27
|
%
|
Net Interest
Margin (1)
|
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
3.39
|
%
|
|
|
|
|
|
3.42
|
%
|
|
(1)
|
|
The 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 21% in 2018 and 35% in 2017 for each period
presented.
|
(2)
|
|
The average balances
and yields earned on taxable investment securities are based on
historical cost.
|
(3)
|
|
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.
|
F.N.B.
Corporation
|
|
Six Months Ended
June 30,
|
(Unaudited)
|
|
2018
|
|
2017
|
(Dollars in
thousands)
|
|
|
|
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
|
|
$
|
75,689
|
|
|
$
|
627
|
|
|
1.67
|
%
|
|
$
|
86,712
|
|
|
$
|
341
|
|
|
0.79
|
%
|
Federal funds
sold
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,277
|
|
|
8
|
|
|
0.72
|
|
Taxable investment
securities (2)
|
|
5,132,722
|
|
|
55,874
|
|
|
2.18
|
|
|
4,702,692
|
|
|
47,609
|
|
|
2.02
|
|
Non-taxable
investment securities (1)
|
|
973,486
|
|
|
17,005
|
|
|
3.49
|
|
|
592,342
|
|
|
12,318
|
|
|
4.16
|
|
Loans held for
sale
|
|
56,229
|
|
|
1,678
|
|
|
5.99
|
|
|
53,059
|
|
|
1,868
|
|
|
7.96
|
|
Loans and
leases (1) (3)
|
|
21,301,124
|
|
|
498,282
|
|
|
4.71
|
|
|
18,287,280
|
|
|
391,579
|
|
|
4.32
|
|
Total Interest
Earning Assets (1)
|
|
27,539,250
|
|
|
573,466
|
|
|
4.19
|
|
|
23,724,362
|
|
|
453,723
|
|
|
3.85
|
|
Cash and due from
banks
|
|
359,218
|
|
|
|
|
|
|
316,867
|
|
|
|
|
|
Allowance for loan
losses
|
|
(181,544)
|
|
|
|
|
|
|
(163,642)
|
|
|
|
|
|
Premises and
equipment
|
|
334,264
|
|
|
|
|
|
|
312,292
|
|
|
|
|
|
Other
assets
|
|
3,671,193
|
|
|
|
|
|
|
3,040,903
|
|
|
|
|
|
Total
Assets
|
|
$
|
31,722,381
|
|
|
|
|
|
|
$
|
27,230,782
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
$
|
9,338,014
|
|
|
25,146
|
|
|
0.54
|
|
|
$
|
8,362,233
|
|
|
13,087
|
|
|
0.32
|
|
Savings
|
|
2,578,492
|
|
|
2,523
|
|
|
0.20
|
|
|
2,503,259
|
|
|
1,162
|
|
|
0.09
|
|
Certificates and
other time
|
|
4,724,920
|
|
|
29,849
|
|
|
1.25
|
|
|
3,346,434
|
|
|
14,244
|
|
|
0.86
|
|
Short-term
borrowings
|
|
4,042,020
|
|
|
33,616
|
|
|
1.67
|
|
|
3,546,112
|
|
|
17,633
|
|
|
1.00
|
|
Long-term
borrowings
|
|
655,737
|
|
|
10,450
|
|
|
3.21
|
|
|
607,991
|
|
|
8,434
|
|
|
2.80
|
|
Total Interest
Bearing Liabilities
|
|
21,339,183
|
|
|
101,584
|
|
|
0.96
|
|
|
18,366,029
|
|
|
54,560
|
|
|
0.60
|
|
Non-interest bearing
demand deposits
|
|
5,686,324
|
|
|
|
|
|
|
4,943,226
|
|
|
|
|
|
Other
liabilities
|
|
250,898
|
|
|
|
|
|
|
220,574
|
|
|
|
|
|
Total
Liabilities
|
|
27,276,405
|
|
|
|
|
|
|
23,529,829
|
|
|
|
|
|
Stockholders'
equity
|
|
4,445,976
|
|
|
|
|
|
|
3,700,953
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
31,722,381
|
|
|
|
|
|
|
$
|
27,230,782
|
|
|
|
|
|
Net Interest Earning
Assets
|
|
$
|
6,200,067
|
|
|
|
|
|
|
$
|
5,358,333
|
|
|
|
|
|
Net Interest Income
(FTE) (1)
|
|
|
|
471,882
|
|
|
|
|
|
|
399,163
|
|
|
|
Tax Equivalent
Adjustment
|
|
|
|
(6,422)
|
|
|
|
|
|
|
(7,996)
|
|
|
|
Net Interest
Income
|
|
|
|
$
|
465,460
|
|
|
|
|
|
|
$
|
391,167
|
|
|
|
Net Interest
Spread
|
|
|
|
|
|
3.23
|
%
|
|
|
|
|
|
3.25
|
%
|
Net Interest
Margin (1)
|
|
|
|
|
|
3.45
|
%
|
|
|
|
|
|
3.39
|
%
|
|
|
(1)
The 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 21% in 2018 and 35% in
2017.
|
|
(2)
The average balances and yields earned on
taxable investment securities are based on historical
cost.
|
|
(3)
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F.N.B.
CORPORATION
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
June 30,
|
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
2018
|
|
2017
|
Performance
ratios
|
|
|
|
|
|
|
|
|
|
Return on average
equity
|
7.66
|
%
|
|
7.94
|
%
|
|
6.80
|
%
|
|
7.80
|
%
|
|
5.31
|
%
|
Return on average
tangible equity (1)
|
16.66
|
%
|
|
17.48
|
%
|
|
15.26
|
%
|
|
17.06
|
%
|
|
11.28
|
%
|
Return on average
tangible common equity (1)
|
17.14
|
%
|
|
18.01
|
%
|
|
15.69
|
%
|
|
17.57
|
%
|
|
11.51
|
%
|
Return on average
assets
|
1.07
|
%
|
|
1.12
|
%
|
|
0.98
|
%
|
|
1.09
|
%
|
|
0.72
|
%
|
Return on average
tangible assets (1)
|
1.19
|
%
|
|
1.25
|
%
|
|
1.11
|
%
|
|
1.22
|
%
|
|
0.82
|
%
|
Net interest margin
(FTE) (2)
|
3.51
|
%
|
|
3.39
|
%
|
|
3.42
|
%
|
|
3.45
|
%
|
|
3.39
|
%
|
Yield on earning
assets (FTE) (2)
|
4.30
|
%
|
|
4.08
|
%
|
|
3.92
|
%
|
|
4.19
|
%
|
|
3.85
|
%
|
Cost of
interest-bearing liabilities
|
1.02
|
%
|
|
0.89
|
%
|
|
0.65
|
%
|
|
0.96
|
%
|
|
0.60
|
%
|
Cost of
funds
|
0.81
|
%
|
|
0.71
|
%
|
|
0.51
|
%
|
|
0.76
|
%
|
|
0.47
|
%
|
Efficiency ratio
(1)
|
55.64
|
%
|
|
55.78
|
%
|
|
54.26
|
%
|
|
55.71
|
%
|
|
55.54
|
%
|
Effective tax
rate
|
19.37
|
%
|
|
19.69
|
%
|
|
28.47
|
%
|
|
19.53
|
%
|
|
27.04
|
%
|
Capital
ratios
|
|
|
|
|
|
|
|
|
|
Equity / assets
(period end)
|
13.87
|
%
|
|
14.01
|
%
|
|
14.28
|
%
|
|
|
|
|
Common equity /
assets (period end)
|
13.54
|
%
|
|
13.67
|
%
|
|
13.94
|
%
|
|
|
|
|
Leverage
ratio
|
7.63
|
%
|
|
7.59
|
%
|
|
7.64
|
%
|
|
|
|
|
Tangible equity /
tangible assets (period end) (1)
|
7.14
|
%
|
|
7.14
|
%
|
|
7.20
|
%
|
|
|
|
|
Tangible common
equity / tangible assets (period end) (1)
|
6.79
|
%
|
|
6.78
|
%
|
|
6.83
|
%
|
|
|
|
|
Common stock
data
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
325,730,049
|
|
|
325,766,968
|
|
|
324,867,759
|
|
|
325,729,192
|
|
|
282,285,482
|
|
Period end shares
outstanding
|
324,258,342
|
|
|
323,686,993
|
|
|
323,226,474
|
|
|
|
|
|
Book value per common
share
|
$
|
13.47
|
|
|
$
|
13.37
|
|
|
$
|
13.26
|
|
|
|
|
|
Tangible book value
per common share (1)
|
$
|
6.26
|
|
|
$
|
6.14
|
|
|
$
|
6.00
|
|
|
|
|
|
Dividend payout ratio
(common)
|
47.13
|
%
|
|
46.10
|
%
|
|
53.89
|
%
|
|
46.61
|
%
|
|
69.15
|
%
|
|
|
|
(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 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 21% in 2018 and 35% in
2017.
|
F.N.B.
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q18
|
|
2Q18
|
|
|
|
|
|
|
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
1Q18
|
|
2Q17
|
|
|
|
|
|
|
Balances at period
end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
8,834,322
|
|
|
$
|
8,811,475
|
|
|
$
|
8,822,929
|
|
|
0.3
|
|
|
0.1
|
|
|
|
|
|
|
|
Commercial and
industrial
|
4,301,387
|
|
|
4,279,969
|
|
|
3,910,927
|
|
|
0.5
|
|
|
10.0
|
|
|
|
|
|
|
|
Commercial
leases
|
337,397
|
|
|
279,582
|
|
|
226,483
|
|
|
20.7
|
|
|
49.0
|
|
|
|
|
|
|
|
Other
|
43,351
|
|
|
39,347
|
|
|
30,079
|
|
|
10.2
|
|
|
44.1
|
|
|
|
|
|
|
|
Commercial loans and
leases
|
13,516,457
|
|
|
13,410,373
|
|
|
12,990,418
|
|
|
0.8
|
|
|
4.0
|
|
|
|
|
|
|
|
Direct
installment
|
1,892,080
|
|
|
1,871,639
|
|
|
1,949,979
|
|
|
1.1
|
|
|
(3.0)
|
|
|
|
|
|
|
|
Residential
mortgages
|
2,850,970
|
|
|
2,762,101
|
|
|
2,429,843
|
|
|
3.2
|
|
|
17.3
|
|
|
|
|
|
|
|
Indirect
installment
|
1,746,509
|
|
|
1,524,501
|
|
|
1,374,524
|
|
|
14.6
|
|
|
27.1
|
|
|
|
|
|
|
|
Consumer
LOC
|
1,653,566
|
|
|
1,693,783
|
|
|
1,788,534
|
|
|
(2.4)
|
|
|
(7.5)
|
|
|
|
|
|
|
|
Consumer
loans
|
8,143,125
|
|
|
7,852,024
|
|
|
7,542,880
|
|
|
3.7
|
|
|
8.0
|
|
|
|
|
|
|
|
Total loans and
leases
|
$
|
21,659,582
|
|
|
$
|
21,262,397
|
|
|
$
|
20,533,298
|
|
|
1.9
|
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
Variance
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
2Q18
|
|
2Q18
|
|
For the Six Months
Ended
June 30,
|
|
%
|
Loans and
Leases:
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
1Q18
|
|
2Q17
|
|
2018
|
|
2017
|
|
Var.
|
Commercial real
estate
|
$
|
8,824,628
|
|
|
$
|
8,809,648
|
|
|
$
|
8,779,618
|
|
|
0.2
|
|
|
0.5
|
|
|
$
|
8,824,684
|
|
|
$
|
7,441,408
|
|
|
18.6
|
|
Commercial and
industrial
|
4,290,678
|
|
|
4,225,318
|
|
|
3,851,803
|
|
|
1.5
|
|
|
11.4
|
|
|
4,250,674
|
|
|
3,617,098
|
|
|
17.5
|
|
Commercial
leases
|
287,796
|
|
|
272,295
|
|
|
199,648
|
|
|
5.7
|
|
|
44.2
|
|
|
280,088
|
|
|
197,913
|
|
|
41.5
|
|
Other
|
51,203
|
|
|
47,170
|
|
|
53,075
|
|
|
8.5
|
|
|
(3.5)
|
|
|
49,198
|
|
|
49,027
|
|
|
0.3
|
|
Commercial loans and
leases
|
13,454,305
|
|
|
13,354,431
|
|
|
12,884,144
|
|
|
0.7
|
|
|
4.4
|
|
|
13,404,644
|
|
|
11,305,446
|
|
|
18.6
|
|
Direct
installment
|
1,880,657
|
|
|
1,884,302
|
|
|
1,956,027
|
|
|
(0.2)
|
|
|
(3.9)
|
|
|
1,882,469
|
|
|
1,912,862
|
|
|
(1.6)
|
|
Residential
mortgages
|
2,813,829
|
|
|
2,723,257
|
|
|
2,412,881
|
|
|
3.3
|
|
|
16.6
|
|
|
2,768,793
|
|
|
2,192,353
|
|
|
26.3
|
|
Indirect
installment
|
1,625,344
|
|
|
1,474,005
|
|
|
1,310,729
|
|
|
10.3
|
|
|
24.0
|
|
|
1,550,093
|
|
|
1,268,841
|
|
|
22.2
|
|
Consumer
LOC
|
1,670,895
|
|
|
1,719,624
|
|
|
1,797,266
|
|
|
(2.8)
|
|
|
(7.0)
|
|
|
1,695,125
|
|
|
1,607,778
|
|
|
5.4
|
|
Consumer
loans
|
7,990,725
|
|
|
7,801,188
|
|
|
7,476,903
|
|
|
2.4
|
|
|
6.9
|
|
|
7,896,480
|
|
|
6,981,834
|
|
|
13.1
|
|
Total loans and
leases
|
$
|
21,445,030
|
|
|
$
|
21,155,619
|
|
|
$
|
20,361,047
|
|
|
1.4
|
|
|
5.3
|
|
|
$
|
21,301,124
|
|
|
$
|
18,287,280
|
|
|
16.5
|
|
F.N.B.
CORPORATION
|
|
|
|
|
|
|
|
|
(Unaudited)
(Dollars in thousands)
|
|
|
|
|
|
|
Percent
Variance
|
|
|
|
|
|
|
2Q18
|
|
2Q18
|
Asset Quality
Data
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
1Q18
|
|
2Q17
|
Non-Performing
Assets
|
|
|
|
|
|
|
|
|
|
Non-performing loans
(1)
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
$
|
68,696
|
|
|
$
|
77,684
|
|
|
$
|
95,303
|
|
|
(11.6)
|
|
|
(27.9)
|
|
Restructured
loans
|
24,820
|
|
|
24,452
|
|
|
19,487
|
|
|
1.5
|
|
|
27.4
|
|
Non-performing
loans
|
93,516
|
|
|
102,136
|
|
|
114,790
|
|
|
(8.4)
|
|
|
(18.5)
|
|
Other real estate
owned (OREO) (2)
|
39,240
|
|
|
40,980
|
|
|
45,712
|
|
|
(4.2)
|
|
|
(14.2)
|
|
Total non-performing
assets
|
$
|
132,756
|
|
|
$
|
143,116
|
|
|
$
|
160,502
|
|
|
(7.2)
|
|
|
(17.3)
|
|
Non-performing loans
/ total loans and leases
|
0.43
|
%
|
|
0.48
|
%
|
|
0.56
|
%
|
|
|
|
|
Non-performing loans
/ total originated loans and leases (3)
|
0.50
|
%
|
|
0.58
|
%
|
|
0.75
|
%
|
|
|
|
|
Non-performing loans
+ OREO / total loans and leases + OREO
|
0.61
|
%
|
|
0.67
|
%
|
|
0.78
|
%
|
|
|
|
|
Non-performing loans
+ OREO / total originated loans and leases + OREO
(3)
|
0.71
|
%
|
|
0.81
|
%
|
|
1.08
|
%
|
|
|
|
|
Non-performing assets
/ total assets
|
0.41
|
%
|
|
0.45
|
%
|
|
0.52
|
%
|
|
|
|
|
Delinquency -
Originated Portfolio (3)
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
|
48,305
|
|
|
$
|
50,412
|
|
|
$
|
43,684
|
|
|
(4.2)
|
|
|
10.6
|
|
Loans 90+ days past
due
|
7,227
|
|
|
7,304
|
|
|
8,448
|
|
|
(1.1)
|
|
|
(14.5)
|
|
Non-accrual
loans
|
59,953
|
|
|
68,121
|
|
|
84,651
|
|
|
(12.0)
|
|
|
(29.2)
|
|
Total past due and
non-accrual loans
|
$
|
115,485
|
|
|
$
|
125,837
|
|
|
$
|
136,783
|
|
|
(8.2)
|
|
|
(15.6)
|
|
Total past due and
non-accrual loans / total originated loans
|
0.68
|
%
|
|
0.79
|
%
|
|
0.99
|
%
|
|
|
|
|
Delinquency -
Acquired Portfolio (4) (5)
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
|
43,474
|
|
|
$
|
61,128
|
|
|
$
|
86,943
|
|
|
(28.9)
|
|
|
(50.0)
|
|
Loans 90+ days past
due
|
67,889
|
|
|
86,112
|
|
|
61,422
|
|
|
(21.2)
|
|
|
10.5
|
|
Non-accrual
loans
|
8,743
|
|
|
9,563
|
|
|
10,652
|
|
|
(8.6)
|
|
|
(17.9)
|
|
Total past due and
non-accrual loans
|
$
|
120,106
|
|
|
$
|
156,803
|
|
|
$
|
159,017
|
|
|
(23.4)
|
|
|
(24.5)
|
|
Delinquency -
Total Portfolio
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
|
91,779
|
|
|
$
|
111,540
|
|
|
$
|
130,627
|
|
|
(17.7)
|
|
|
(29.7)
|
|
Loans 90+ days past
due
|
75,116
|
|
|
93,416
|
|
|
69,870
|
|
|
(19.6)
|
|
|
7.5
|
|
Non-accrual
loans
|
68,696
|
|
|
77,684
|
|
|
95,303
|
|
|
(11.6)
|
|
|
(27.9)
|
|
Total past due and
non-accrual loans
|
$
|
235,591
|
|
|
$
|
282,640
|
|
|
$
|
295,800
|
|
|
(16.6)
|
|
|
(20.4)
|
|
(1)
|
|
Does not include
loans acquired at fair value ("acquired portfolio").
|
(2)
|
|
Includes all other
real estate owned, including those balances acquired through
business combinations that have been in acquired loans prior to
foreclosure.
|
(3)
|
|
"Originated
Portfolio" or "Originated Loans and Leases" equals loans and leases
not included by definition in the Acquired Portfolio.
|
(4)
|
|
"Acquired Portfolio"
or "Acquired Loans" equals loans acquired at fair value, accounted
for in accordance with ASC 805. The risk of credit loss on these
loans has been considered
by virtue of our estimate of acquisition-date fair value and these
loans are considered accruing as we primarily recognize 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.
|
(5)
|
|
Represents
contractual balances.
|
F.N.B.
CORPORATION
(Unaudited)
|
|
|
|
|
|
|
Percent
Variance
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
2Q18
|
|
2Q18
|
|
For the Six Months
Ended
June 30,
|
|
%
|
Allowance Rollforward
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
1Q18
|
|
2Q17
|
|
2018
|
|
2017
|
|
Var.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
Credit Losses - Originated Portfolio (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
172,410
|
|
|
$
|
168,682
|
|
|
$
|
154,214
|
|
|
2.2
|
|
|
11.8
|
|
|
$
|
168,682
|
|
|
$
|
150,791
|
|
|
11.9
|
|
Provision for credit
losses
|
15,036
|
|
|
14,770
|
|
|
17,538
|
|
|
1.8
|
|
|
(14.3)
|
|
|
29,805
|
|
|
28,875
|
|
|
3.2
|
|
Net loan
charge-offs
|
(14,831)
|
|
|
(11,042)
|
|
|
(12,660)
|
|
|
34.3
|
|
|
17.1
|
|
|
(25,872)
|
|
|
(20,574)
|
|
|
25.8
|
|
Allowance for credit
losses - originated portfolio (2)
|
$
|
172,615
|
|
|
$
|
172,410
|
|
|
$
|
159,092
|
|
|
0.1
|
|
|
8.5
|
|
|
$
|
172,615
|
|
|
$
|
159,092
|
|
|
8.5
|
|
Allowance for credit
losses (originated loans and leases) /
total
originated loans and leases (2)
|
1.02
|
%
|
|
1.08
|
%
|
|
1.15
|
%
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses (originated loans and leases) /
total
non-performing loans (1)
|
203.62
|
%
|
|
186.24
|
%
|
|
152.77
|
%
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
on originated loans and leases (annualized) /
total
average originated loans and leases (2)
|
0.36
|
%
|
|
0.29
|
%
|
|
0.38
|
%
|
|
|
|
|
|
0.33
|
%
|
|
0.31
|
%
|
|
|
Allowance for
Credit Losses - Acquired Portfolio (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
6,837
|
|
|
$
|
6,698
|
|
|
$
|
6,568
|
|
|
2.1
|
|
|
4.1
|
|
|
$
|
6,698
|
|
|
$
|
7,268
|
|
|
(7.8)
|
|
Provision for credit
losses
|
518
|
|
|
(275)
|
|
|
(782)
|
|
|
(288.4)
|
|
|
(166.2)
|
|
|
244
|
|
|
(1,269)
|
|
|
(119.2)
|
|
Net loan
(charge-offs)/recoveries
|
(3,396)
|
|
|
414
|
|
|
821
|
|
|
(920.3)
|
|
|
(513.6)
|
|
|
(2,983)
|
|
|
608
|
|
|
(590.6)
|
|
Allowance for credit
losses - acquired portfolio (3)
|
$
|
3,959
|
|
|
$
|
6,837
|
|
|
$
|
6,607
|
|
|
(42.1)
|
|
|
(40.1)
|
|
|
$
|
3,959
|
|
|
$
|
6,607
|
|
|
(40.1)
|
|
Allowance for
Credit Losses - Total Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
179,247
|
|
|
$
|
175,380
|
|
|
$
|
160,782
|
|
|
2.2
|
|
|
11.5
|
|
|
$
|
175,380
|
|
|
$
|
158,059
|
|
|
11.0
|
|
Provision for credit
losses
|
15,554
|
|
|
14,495
|
|
|
16,756
|
|
|
7.3
|
|
|
(7.2)
|
|
|
30,049
|
|
|
27,606
|
|
|
8.8
|
|
Net loan
(charge-offs)/recoveries
|
(18,227)
|
|
|
(10,628)
|
|
|
(11,839)
|
|
|
71.5
|
|
|
54.0
|
|
|
(28,855)
|
|
|
(19,966)
|
|
|
44.5
|
|
Total allowance for
credit losses
|
$
|
176,574
|
|
|
$
|
179,247
|
|
|
$
|
165,699
|
|
|
(1.5)
|
|
|
6.6
|
|
|
$
|
176,574
|
|
|
$
|
165,699
|
|
|
6.6
|
|
Allowance for credit
losses / total loans and leases
|
0.82
|
%
|
|
0.84
|
%
|
|
0.81
|
%
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(annualized) / total average loans and leases
|
0.34
|
%
|
|
0.20
|
%
|
|
0.23
|
%
|
|
|
|
|
|
0.27
|
%
|
|
0.22
|
%
|
|
|
|
|
|
(1)
|
|
Does not include
loans acquired at fair value ("acquired portfolio").
|
(2)
|
|
"Originated
Portfolio" or "Originated Loans and Leases" equals loans and leases
not included by definition in the Acquired Portfolio.
|
(3)
|
|
"Acquired Portfolio"
or "Acquired Loans" equals loans acquired at fair value, accounted
for in accordance with ASC 805. The risk of credit loss on these
loans has been considered by virtue of our estimate of
acquisition-date fair value and
these loans are considered accruing as we primarily recognize
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.
|
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 provide information useful to
investors in understanding our operating performance and trends,
and facilitate comparisons with the performance of our peers.
The non-GAAP financial measures we use 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, our
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
our financial statements.
|
|
|
|
|
|
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
2Q18
|
|
2Q18
|
|
For the Six Months
Ended
June 30,
|
|
%
|
Operating net income
available to common
stockholders:
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
1Q18
|
|
2Q17
|
|
2018
|
|
2017
|
|
Var.
|
Net income available
to common stockholders
|
$
|
83,196
|
|
|
$
|
84,752
|
|
|
$
|
72,396
|
|
|
|
|
|
|
$
|
167,948
|
|
|
$
|
93,365
|
|
|
|
Merger-related
expense
|
—
|
|
|
—
|
|
|
1,354
|
|
|
|
|
|
|
—
|
|
|
54,078
|
|
|
|
Tax benefit of
merger-related expense
|
—
|
|
|
—
|
|
|
(419)
|
|
|
|
|
|
|
—
|
|
|
(17,998)
|
|
|
|
Merger-related net
securities gains
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
(2,609)
|
|
|
|
Tax expense of
merger-related net securities gains
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
913
|
|
|
|
Discretionary 401(k)
contribution
|
874
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
874
|
|
|
—
|
|
|
|
Tax benefit of
discretionary 401(k) contribution
|
(184)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
(184)
|
|
|
—
|
|
|
|
Branch consolidation
costs
|
6,616
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
6,616
|
|
|
—
|
|
|
|
Tax benefit of branch
consolidation costs
|
(1,389)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
(1,389)
|
|
|
—
|
|
|
|
Operating net income
available to common stockholders (non-GAAP)
|
$
|
89,113
|
|
|
$
|
84,752
|
|
|
$
|
73,331
|
|
|
5.1
|
|
|
21.5
|
|
|
$
|
173,865
|
|
|
$
|
127,749
|
|
|
36.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
common share
|
$
|
0.26
|
|
|
$
|
0.26
|
|
|
$
|
0.22
|
|
|
|
|
|
|
$
|
0.52
|
|
|
$
|
0.33
|
|
|
|
Merger-related
expense
|
—
|
|
|
—
|
|
|
0.01
|
|
|
|
|
|
|
—
|
|
|
0.19
|
|
|
|
Tax benefit of
merger-related expense
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
(0.06)
|
|
|
|
Merger-related net
securities gains
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
(0.01)
|
|
|
|
Discretionary 401(k)
contribution
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
Tax benefit of
discretionary 401(k) contribution
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
Branch consolidation
costs
|
0.02
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
0.02
|
|
|
—
|
|
|
|
Tax benefit of branch
consolidation costs
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
(0.01)
|
|
|
—
|
|
|
|
Operating earnings
per diluted common share
(non-GAAP)
|
$
|
0.27
|
|
|
$
|
0.26
|
|
|
$
|
0.23
|
|
|
3.8
|
|
|
17.4
|
|
|
$
|
0.53
|
|
|
$
|
0.45
|
|
|
17.8
|
|
F.N.B.
CORPORATION
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
For the Six Months
Ended
June 30,
|
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
2018
|
|
2017
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
|
|
Net income
(annualized)
|
$
|
341,762
|
|
|
$
|
351,867
|
|
|
$
|
298,443
|
|
|
$
|
346,786
|
|
|
$
|
196,384
|
|
Amortization of
intangibles, net of tax (annualized)
|
12,077
|
|
|
13,513
|
|
|
12,547
|
|
|
12,791
|
|
|
10,369
|
|
Tangible net income
(annualized) (non-GAAP)
|
$
|
353,839
|
|
|
$
|
365,380
|
|
|
$
|
310,990
|
|
|
$
|
359,577
|
|
|
$
|
206,753
|
|
|
|
|
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
|
4,461,510
|
|
|
$
|
4,430,269
|
|
|
$
|
4,386,438
|
|
|
$
|
4,445,976
|
|
|
$
|
3,700,953
|
|
Less: Average
intangibles(1)
|
(2,337,249)
|
|
|
(2,339,783)
|
|
|
(2,348,767)
|
|
|
(2,338,509)
|
|
|
(1,867,911)
|
|
Average tangible
stockholders' equity (non-GAAP)
|
$
|
2,124,261
|
|
|
$
|
2,090,486
|
|
|
$
|
2,037,671
|
|
|
$
|
2,107,467
|
|
|
$
|
1,833,042
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity (non-GAAP)
|
16.66
|
%
|
|
17.48
|
%
|
|
15.26
|
%
|
|
17.06
|
%
|
|
11.28
|
%
|
Return on average
tangible common equity:
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders (annualized)
|
$
|
333,699
|
|
|
$
|
343,716
|
|
|
$
|
290,381
|
|
|
$
|
338,679
|
|
|
$
|
188,277
|
|
Amortization of
intangibles, net of tax (annualized)
|
12,077
|
|
|
13,513
|
|
|
12,547
|
|
|
12,791
|
|
|
10,369
|
|
Tangible net income
available to common stockholders
(annualized) (non-GAAP)
|
$
|
345,776
|
|
|
$
|
357,229
|
|
|
$
|
302,928
|
|
|
$
|
351,470
|
|
|
$
|
198,646
|
|
|
|
|
|
|
|
|
|
|
|
Average total
stockholders' equity
|
$
|
4,461,510
|
|
|
$
|
4,430,269
|
|
|
$
|
4,386,438
|
|
|
$
|
4,445,976
|
|
|
$
|
3,700,953
|
|
Less: Average
preferred stockholders' equity
|
(106,882)
|
|
|
(106,882)
|
|
|
(106,882)
|
|
|
(106,882)
|
|
|
(106,882)
|
|
Less: Average
intangibles(1)
|
(2,337,249)
|
|
|
(2,339,783)
|
|
|
(2,348,767)
|
|
|
(2,338,509)
|
|
|
(1,867,911)
|
|
Average tangible
common equity (non-GAAP)
|
$
|
2,017,379
|
|
|
$
|
1,983,604
|
|
|
$
|
1,930,789
|
|
|
$
|
2,000,585
|
|
|
$
|
1,726,160
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (non-GAAP)
|
17.14
|
%
|
|
18.01
|
%
|
|
15.69
|
%
|
|
17.57
|
%
|
|
11.51
|
%
|
Return on average
tangible assets:
|
|
|
|
|
|
|
|
|
|
Net income
(annualized)
|
$
|
341,762
|
|
|
$
|
351,867
|
|
|
$
|
298,443
|
|
|
$
|
346,786
|
|
|
$
|
196,384
|
|
Amortization of
intangibles, net of tax (annualized)
|
12,077
|
|
|
13,513
|
|
|
12,547
|
|
|
12,791
|
|
|
10,369
|
|
Tangible net income
(annualized) (non-GAAP)
|
$
|
353,839
|
|
|
$
|
365,380
|
|
|
$
|
310,990
|
|
|
$
|
359,577
|
|
|
$
|
206,753
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets
|
$
|
31,947,751
|
|
|
$
|
31,494,506
|
|
|
$
|
30,364,645
|
|
|
$
|
31,722,381
|
|
|
$
|
27,230,782
|
|
Less: Average
intangibles(1)
|
(2,337,249)
|
|
|
(2,339,783)
|
|
|
(2,348,767)
|
|
|
(2,338,509)
|
|
|
(1,867,911)
|
|
Average tangible
assets (non-GAAP)
|
$
|
29,610,502
|
|
|
$
|
29,154,723
|
|
|
$
|
28,015,878
|
|
|
$
|
29,383,872
|
|
|
$
|
25,362,871
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible assets (non-GAAP)
|
1.19
|
%
|
|
1.25
|
%
|
|
1.11
|
%
|
|
1.22
|
%
|
|
0.82
|
%
|
Tangible book value
per common share:
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
|
4,473,242
|
|
|
$
|
4,433,453
|
|
|
$
|
4,392,438
|
|
|
|
|
|
Less: preferred
stockholders' equity
|
(106,882)
|
|
|
(106,882)
|
|
|
(106,882)
|
|
|
|
|
|
Less:
intangibles(1)
|
(2,335,445)
|
|
|
(2,339,139)
|
|
|
(2,346,653)
|
|
|
|
|
|
Tangible common
equity (non-GAAP)
|
$
|
2,030,915
|
|
|
$
|
1,987,432
|
|
|
$
|
1,938,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
324,258,342
|
|
|
323,686,993
|
|
|
323,226,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (non-GAAP)
|
$
|
6.26
|
|
|
$
|
6.14
|
|
|
$
|
6.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes loan servicing rights
|
|
|
|
|
|
|
|
|
|
F.N.B.
CORPORATION
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
For the Six Months
Ended
June 30,
|
|
2Q18
|
|
1Q18
|
|
2Q17
|
|
2018
|
|
2017
|
Tangible equity /
tangible assets (period end):
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
|
4,473,242
|
|
|
$
|
4,433,453
|
|
|
$
|
4,392,438
|
|
|
|
|
|
Less:
intangibles(1)
|
(2,335,445)
|
|
|
(2,339,139)
|
|
|
(2,346,653)
|
|
|
|
|
|
Tangible equity
(non-GAAP)
|
$
|
2,137,797
|
|
|
$
|
2,094,314
|
|
|
$
|
2,045,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
32,257,563
|
|
|
$
|
31,652,353
|
|
|
$
|
30,753,726
|
|
|
|
|
|
Less:
intangibles(1)
|
(2,335,445)
|
|
|
(2,339,139)
|
|
|
(2,346,653)
|
|
|
|
|
|
Tangible assets
(non-GAAP)
|
$
|
29,922,118
|
|
|
$
|
29,313,214
|
|
|
$
|
28,407,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity /
tangible assets (period end) (non-GAAP)
|
7.14
|
%
|
|
7.14
|
%
|
|
7.20
|
%
|
|
|
|
|
Tangible common
equity / tangible assets (period end):
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
|
4,473,242
|
|
|
$
|
4,433,453
|
|
|
$
|
4,392,438
|
|
|
|
|
|
Less: preferred
stockholders' equity
|
(106,882)
|
|
|
(106,882)
|
|
|
(106,882)
|
|
|
|
|
|
Less:
intangibles (1)
|
(2,335,445)
|
|
|
(2,339,139)
|
|
|
(2,346,653)
|
|
|
|
|
|
Tangible common
equity (non-GAAP)
|
$
|
2,030,915
|
|
|
$
|
1,987,432
|
|
|
$
|
1,938,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
32,257,563
|
|
|
$
|
31,652,353
|
|
|
$
|
30,753,726
|
|
|
|
|
|
Less:
intangibles(1)
|
(2,335,445)
|
|
|
(2,339,139)
|
|
|
(2,346,653)
|
|
|
|
|
|
Tangible assets
(non-GAAP)
|
$
|
29,922,118
|
|
|
$
|
29,313,214
|
|
|
$
|
28,407,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity / tangible assets (period end) (non-GAAP)
|
6.79
|
%
|
|
6.78
|
%
|
|
6.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE
INDICATORS
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(FTE):
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
|
183,013
|
|
|
$
|
171,083
|
|
|
$
|
163,714
|
|
|
$
|
354,096
|
|
|
$
|
351,269
|
|
Less:
amortization of intangibles
|
(3,811)
|
|
|
(4,218)
|
|
|
(4,813)
|
|
|
(8,029)
|
|
|
(7,911)
|
|
Less: OREO
expense
|
(2,233)
|
|
|
(1,367)
|
|
|
(1,008)
|
|
|
(3,600)
|
|
|
(1,991)
|
|
Less:
merger-related expense
|
—
|
|
|
—
|
|
|
(1,354)
|
|
|
—
|
|
|
(54,078)
|
|
Less: discretionary
401(k) contribution
|
(874)
|
|
|
—
|
|
|
—
|
|
|
(874)
|
|
|
—
|
|
Less: branch
consolidation costs
|
(2,939)
|
|
|
—
|
|
|
—
|
|
|
(2,939)
|
|
|
—
|
|
Adjusted non-interest
expense
|
$
|
173,156
|
|
|
$
|
165,498
|
|
|
$
|
156,539
|
|
|
$
|
338,654
|
|
|
$
|
287,289
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
239,355
|
|
|
$
|
226,105
|
|
|
$
|
218,415
|
|
|
$
|
465,460
|
|
|
$
|
391,167
|
|
Taxable equivalent
adjustment
|
3,319
|
|
|
3,103
|
|
|
4,474
|
|
|
6,422
|
|
|
7,996
|
|
Non-interest
income
|
64,889
|
|
|
67,503
|
|
|
66,078
|
|
|
132,392
|
|
|
121,194
|
|
Less: net
securities gains
|
(31)
|
|
|
—
|
|
|
(493)
|
|
|
(31)
|
|
|
(3,118)
|
|
Add: branch
consolidation costs
|
3,677
|
|
|
—
|
|
|
—
|
|
|
3,677
|
|
|
—
|
|
Adjusted net interest
income (FTE) + non-interest income
|
$
|
311,209
|
|
|
$
|
296,711
|
|
|
$
|
288,474
|
|
|
$
|
607,920
|
|
|
$
|
517,239
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(FTE) (non-GAAP)
|
55.64
|
%
|
|
55.78
|
%
|
|
54.26
|
%
|
|
55.71
|
%
|
|
55.54
|
%
|
(1) Excludes loan
servicing rights
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/fnb-corporation-reports-second-quarter-2018-earnings-300685309.html
SOURCE F.N.B. Corporation