F.N.B. Corp. (FNB, Financial) filed Quarterly Report for the period ended 2009-06-30.
FNB Corporation is a diversified financial services company serving banking trust consumer finance and insurance customers through community banking affiliates and other subsidiaries with offices in Florida Pennsylvania Ohio and Tennessee. F.N.B. Corp. has a market cap of $867.4 million; its shares were traded at around $7.83 with a P/E ratio of 24.5 and P/S ratio of 1.7. The dividend yield of F.N.B. Corp. stocks is 6.1%.
On January 9, 2009, the Corporation issued to the UST 100,000 shares of Preferred Series C Stock and a warrant to purchase up to 1,302,083 shares (pursuant to Section 13(H) of the Warrant to Purchase Common Stock, the number of shares of common stock purchasable upon exercise of the warrant was reduced in half to 651,041.5 shares as of June 16, 2009, the date of the Corporations recently completed public offering) of the Corporations common stock for an aggregate purchase price of $100.0 million. The warrant has a ten-year term and an exercise price of $11.52 per share. The Preferred Series C Stock ranks senior to the Corporations common shares and pays a cumulative dividend of 5% per year for the first five years and 9% per year thereafter. The dividends on the Preferred Series C Stock are payable quarterly on February 15, May 15, August 15 and November 15 of each year. In the event dividends on the Preferred Series C Stock are not paid in full for six dividend periods, whether or not consecutive, the UST will have the right to elect two directors to the Corporations Board of Directors. This right will end when all accrued and unpaid dividends to the UST on the Preferred Series C Stock have been paid in full. The Corporation plans to redeem the UST investment as quickly as prudently possible, subject to approval by its primary banking regulator.
On June 16, 2009, the Corporation completed its public offering of 24,150,000 shares of common stock at a price of $5.50 per share, including 3,150,000 shares of common stock purchased by the underwriters pursuant to an over-allotment option, which the underwriters exercised in full. The net proceeds of the offering after deducting underwriting discounts and commissions and estimated offering expenses were $125.8 million.
On April 1, 2008, the Corporation completed the acquisition of Omega, a diversified financial services company with $1.8 billion in assets, and on August 16, 2008, the Corporation completed the acquisition of IRGB, a bank holding company with $301.7 million in assets. The assets and liabilities of each of these acquired companies were recorded on the Corporations balance sheet at their fair values as of each of the acquisition dates, and their results of operations have been included in the Corporations consolidated statement of income since the respective acquisition dates.
Net income for the six months ended June 30, 2009 was $26.2 million, compared to net income for the same period of 2008 of $31.0 million. Net income available to common shareholders for the six months ended June 30, 2009 was $23.4 million or $0.26 per diluted share, compared to net income available to common shareholders for the same period of 2008 of $31.0 million or $0.42 per diluted share. For the six months ended June 30, 2009, the Corporations return on average equity was 5.11% and its return on average assets was 0.62%, compared to 8.43% and 0.88%, respectively, for the six months ended June 30, 2008.
Net interest income, on an FTE basis, increased $15.1 million or 12.8% from $117.4 million for the six months ended June 30, 2008 to $132.5 million for the same period of 2009. Average interest earning assets increased $1.0 billion or 16.5% and average interest bearing liabilities increased $1.0 billion or 17.8% from the six months ended June 30, 2008 due to organic loan and deposit growth and the Omega and IRGB acquisitions. The Corporations net interest margin decreased from 3.83% for the first six months of 2008 to 3.71% for the first six months of 2009 as loan yields declined faster than deposit rates, reflecting the actions taken by the FRB to lower interest rates during the fourth quarter of 2008 combined with competitive pressures on deposit rates. 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.
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FNB Corporation is a diversified financial services company serving banking trust consumer finance and insurance customers through community banking affiliates and other subsidiaries with offices in Florida Pennsylvania Ohio and Tennessee. F.N.B. Corp. has a market cap of $867.4 million; its shares were traded at around $7.83 with a P/E ratio of 24.5 and P/S ratio of 1.7. The dividend yield of F.N.B. Corp. stocks is 6.1%.
Highlight of Business Operations:
At June 30, 2009, total goodwill was $529.1 million, of which $510.3 million relates to the Corporations Community Banking segment. Because adverse market conditions and risks and uncertainties in the market continued during the second quarter of 2009, the Corporation updated its review for goodwill impairment at June 30, 2009 for its Community Banking segment. To determine the fair value of the Community Banking reporting unit, the Corporation utilized an income approach (discounted cash flows). This approach is based on discounted cash flows derived from assumptions of balance sheet and income statement activity. It also factors in costs of equity and weighted-average costs of capital to determine an appropriate discount rate. Applying this methodology, the degree by which the fair value of the Community Banking reporting unit exceeded its carrying value at June 30, 2009 was approximately 36%.On January 9, 2009, the Corporation issued to the UST 100,000 shares of Preferred Series C Stock and a warrant to purchase up to 1,302,083 shares (pursuant to Section 13(H) of the Warrant to Purchase Common Stock, the number of shares of common stock purchasable upon exercise of the warrant was reduced in half to 651,041.5 shares as of June 16, 2009, the date of the Corporations recently completed public offering) of the Corporations common stock for an aggregate purchase price of $100.0 million. The warrant has a ten-year term and an exercise price of $11.52 per share. The Preferred Series C Stock ranks senior to the Corporations common shares and pays a cumulative dividend of 5% per year for the first five years and 9% per year thereafter. The dividends on the Preferred Series C Stock are payable quarterly on February 15, May 15, August 15 and November 15 of each year. In the event dividends on the Preferred Series C Stock are not paid in full for six dividend periods, whether or not consecutive, the UST will have the right to elect two directors to the Corporations Board of Directors. This right will end when all accrued and unpaid dividends to the UST on the Preferred Series C Stock have been paid in full. The Corporation plans to redeem the UST investment as quickly as prudently possible, subject to approval by its primary banking regulator.
On June 16, 2009, the Corporation completed its public offering of 24,150,000 shares of common stock at a price of $5.50 per share, including 3,150,000 shares of common stock purchased by the underwriters pursuant to an over-allotment option, which the underwriters exercised in full. The net proceeds of the offering after deducting underwriting discounts and commissions and estimated offering expenses were $125.8 million.
On April 1, 2008, the Corporation completed the acquisition of Omega, a diversified financial services company with $1.8 billion in assets, and on August 16, 2008, the Corporation completed the acquisition of IRGB, a bank holding company with $301.7 million in assets. The assets and liabilities of each of these acquired companies were recorded on the Corporations balance sheet at their fair values as of each of the acquisition dates, and their results of operations have been included in the Corporations consolidated statement of income since the respective acquisition dates.
Net income for the six months ended June 30, 2009 was $26.2 million, compared to net income for the same period of 2008 of $31.0 million. Net income available to common shareholders for the six months ended June 30, 2009 was $23.4 million or $0.26 per diluted share, compared to net income available to common shareholders for the same period of 2008 of $31.0 million or $0.42 per diluted share. For the six months ended June 30, 2009, the Corporations return on average equity was 5.11% and its return on average assets was 0.62%, compared to 8.43% and 0.88%, respectively, for the six months ended June 30, 2008.
Net interest income, on an FTE basis, increased $15.1 million or 12.8% from $117.4 million for the six months ended June 30, 2008 to $132.5 million for the same period of 2009. Average interest earning assets increased $1.0 billion or 16.5% and average interest bearing liabilities increased $1.0 billion or 17.8% from the six months ended June 30, 2008 due to organic loan and deposit growth and the Omega and IRGB acquisitions. The Corporations net interest margin decreased from 3.83% for the first six months of 2008 to 3.71% for the first six months of 2009 as loan yields declined faster than deposit rates, reflecting the actions taken by the FRB to lower interest rates during the fourth quarter of 2008 combined with competitive pressures on deposit rates. 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.
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