F.n.b. Corp. has a market cap of $1.01 billion; its shares were traded at around $8.83 with a P/E ratio of 19.6 and P/S ratio of 2. The dividend yield of F.n.b. Corp. stocks is 5.4%.FNB is in the portfolios of Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:On September 9, 2009, the Corporation redeemed all of the 100,000 outstanding shares of its preferred stock originally issued to the UST in conjunction with the CPP. Since receiving the CPP funds on January 9, 2009, the Corporation paid the UST $3.3 million in cash dividends. Upon redemption, the difference of $4.3 million between the preferred stock redemption amount and the recorded amount was charged to retained earnings as a non-cash deemed preferred stock dividend. This non-cash deemed preferred stock dividend had no impact on total equity, but reduced earnings per diluted common share by $0.04. In total, CPP costs reduced earnings per diluted common share by $0.05.
Net income for the three months ended June 30, 2010 was $17.9 million or $0.16 per diluted share, compared to net income available to common stockholders for the three months ended June 30, 2009 of $9.1 million or $0.10 per diluted share. Net income available to common stockholders for the three months ended June 30, 2009 included $1.5 million related to preferred stock dividends and discount amortization associated with the Corporations participation in the CPP. For the three months ended June 30, 2010, the Corporations return on average equity was 6.83% and its return on average assets was 0.81%, compared to 4.05% and 0.49%, respectively, for the three months ended June 30, 2009.
Net interest income, on an FTE basis, increased $6.2 million or 9.3% from $66.9 million for the three months ended June 30, 2009 to $73.1 million for the same period of 2010. Average earning assets increased $249.2 million or 3.3% and average interest bearing liabilities increased $169.9 million or 2.6% from the three months ended June 30, 2009 due to investment, loan, deposit and treasury management growth. The Corporations net interest margin increased from 3.60% for the second quarter of 2009 to 3.81% for the second quarter of 2010 as deposit rates declined faster than loan yields along with an improved funding mix with higher transaction account balances and lower long-term debt. Details on changes in tax equivalent net interest income attributed to changes in interest earning assets, interest bearing liabilities, yields and cost of funds are set forth in the preceding table.
Interest expense of $22.9 million for the three months ended June 30, 2010 decreased $8.8 million or 27.8% from the same period of 2009. The rate paid on interest bearing liabilities decreased 58 basis points to 1.37% during the second quarter of 2010 compared to the second quarter of 2009, reflecting changes in interest rates and a favorable shift
in mix. Average interest bearing liabilities increased $169.9 million or 2.6% to average $6.7 billion for the second quarter of 2010. This growth was primarily attributable to growth in deposits and treasury management accounts, which increased by $455.6 million or 6.8% for the second quarter of 2010, compared to the same period of 2009, driven by success with ongoing marketing campaigns designed to attract new customers to the Corporations local approach to banking combined with customer preferences to keep funds in banks due to uncertainties in the market. This growth was partially offset by a $216.5 million or 48.6% decline in long-term debt associated with the pre-payment and maturities of certain higher cost borrowings since June 30, 2009.
The provision for loan losses of $12.2 million during the second quarter of 2010 decreased $1.7 million from the same period in 2009. During the second quarter of 2010, net charge-offs decreased $9.8 million from the same period of 2009 as the Corporation recognized lower net charge-offs in its Florida portfolio, which decreased $9.3 million compared to the second quarter of 2009. The allowance for loan losses increased $14.6 million to $114.0 million at June 30, 2010 from June 30, 2009. While there have been signs of recovery from the recession, the duration of the slow economic environment remains a challenge for the Corporation, particularly in the Corporations Florida portfolio. The $12.2 million provision for loan losses for the second quarter of 2010 was comprised of $6.2 million relating to FNBPAs Florida region, $1.6 million relating to Regency and $4.4 million relating to the remainder of the Corporations portfolio, which is predominantly in Pennsylvania. During the second quarter of 2010, net charge-offs were $7.8 million or 0.53% (annualized) of average loans compared to $17.6 million or 1.22% (annualized) of average loans for the same period in 2009. The net charge-offs for the second quarter of 2010 were comprised of $1.9 million or 3.23% (annualized) of average loans relat
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