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F.N.B. Corp. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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F.N.B. Corp. (FNB) filed Quarterly Report for the period ended 2010-09-30.

F.n.b. Corp. has a market cap of $1.07 billion; its shares were traded at around $9.14 with a P/E ratio of 20.6 and P/S ratio of 2.1. The dividend yield of F.n.b. Corp. stocks is 5.1%.FNB is in the portfolios of Paul Tudor Jones of The Tudor Group.

Highlight of Business Operations:

Net income for the three months ended September 30, 2010 was $17.2 million or $0.15 per diluted share, compared to net income available to common stockholders for the three months ended September 30, 2009 of $4.8 million or $0.04 per diluted common share. Net income available to common stockholders for the three months ended September 30, 2009 was derived by reducing net income by $5.5 million related to preferred stock dividends and discount amortization associated with the Corporations participation in the CPP. For the three months ended

Net interest income, on an FTE basis, increased $4.5 million or 6.5% from $69.4 million for the three months ended September 30, 2009 to $73.9 million for the same period of 2010. Average earning assets increased $224.3 million or 3.0% and average interest bearing liabilities increased $186.8 million or 2.9% from the three months ended September 30, 2009 due to investment, loan, deposit and treasury management growth. The Corporations net interest margin increased from 3.66% for the third quarter of 2009 to 3.78% for the third 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 $21.7 million for the three months ended September 30, 2010 decreased $7.3 million or 25.2% from the same period of 2009 due to lower rates paid partially offset by growth in interest bearing liabilities. The rate paid on interest bearing liabilities decreased 48 basis points to 1.28% during the third quarter of 2010 compared to the third quarter of 2009, reflecting changes in interest rates and a favorable shift in mix. Average interest bearing liabilities increased $186.8 million or 2.9% to average $6.7 billion for the third quarter of 2010. This growth was primarily attributable to growth in deposits and treasury management accounts, which increased by $379.9 million or 6.6% for the third quarter of 2010, compared to the same period of 2009, driven by success with ongoing marketing campaigns designed to attract new customers combined with customer preferences to keep funds in banks due to uncertainties in the market. This growth was partially offset by a $204.0 million or 49.5% reduction in long-term debt associated with the pre-payment and maturities of certain higher cost borrowings since September 30, 2009.

The provision for loan losses of $12.3 million during the third quarter of 2010 decreased $4.1 million from the same period in 2009. During the third quarter of 2010, net charge-offs decreased $0.3 million from the same period of 2009 as the Corporation recognized lower net charge-offs in its Florida portfolio, which decreased $0.4 million compared to the third quarter of 2009. The allowance for loan losses increased $10.7 million to $116.6 million at September 30, 2010 from September 30, 2009. While the economy is recovering from the recession, the duration of the slow economic environment remains a challenge for borrowers, particularly in the Corporations Florida portfolio. The $12.3 million provision for loan losses for the third quarter of 2010 was comprised of $5.9 million relating to FNBPAs Florida region, $1.6 million relating to Regency and $4.8 million relating to the remainder of the Corporations portfolio, which is predominantly in Pennsylvania. During the third quarter of 2010, net charge-offs were $9.7 million or 0.64% (annualized) of average loans compared to $10.0 million or 0.68% (annualized) of average loans for the same period in 2009. The net charge-offs for the third quarter of 2010 were comprised of $3.7 million or 6.59% (annualized) of average loans relating to FNBPAs Florida region, $1.6 million or 3.84% (annualized) of average loans relating to Regency and $4.4 million or 0.32% (annualized) of average loans relating to the remainder of the Corporations portfolio. For additional information relating to the allowance and pro

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