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F.N.B. Corp. reports strong 2nd-quarter gains

By Jamison Cocklin

Wednesday, July 25, 2012

By Jamison Cocklin


F.N.B. Corp., the holding company for First National Bank of Pennsylvania, reported a strong gain in earnings when markets closed Monday.

Profit for the second quarter of 2012 was $29.1 million, or a 21-cent per share profit, compared with $22.4 million and 18 cents per share in the second quarter of 2011.

F.N.B. beat predictions of analysts, who forecast 20 cents per share, by a penny, and Tuesday’s share price closed down at $10.85 on the New York Stock Exchange.

After completing mergers with Parkvale Financial Corp. and Comm Bancorp Inc. in January, F.N.B. saw its expectations surpassed and witnessed a boost in many of its portfolios as a result.

The company’s chief executive, Vincent J. Delie, called the earnings “strong results,” and said in a statement that, “our efforts to balance growth while maintaining a low-risk profile is demonstrated in the stability of the net interest margin and stable credit quality results.”

Since the beginning of the year, total loan growth at the financial services company grew 7.2 percent and represented 13 consecutive quarters of growth in the portfolio.

Average loans were $7.8 billion and grew by $54.1 million.

Declines in the company’s Florida portfolio only slightly held back loan growth, and much of F.N.B.’s success in this area was driven by market-share gains in the Pennsylvania commercial-loan portfolio, which grew to $72.3 million.

Consumer-loan results also were strong, growing $48.4 million, or at an 8.3 percent annualized rate. Home-equity- related products, as well as an uptick in indirect auto loans, helped the company’s consumer banking business.

Additionally, total average deposits jumped to $150.6 million, while noninterest income grew by 3.3 percent and noninterest expense declined.

Delinquency rates and nonperforming loans saw significant improvement and accounted for only 1.67 percent of total loans.

However, provisions for loan losses were up to $7 million in the second quarter, from $6.6 million in the first quarter this year. Loan losses were $7.5 million, while at an annualized rate those charge-offs decreased from 0.42 percent in 2011 to 0.33 percent year-to-date in 2012.

First National Bank of Pennsylvania is Pittsburgh’s third-largest bank by branches.

F.N.B. Corp. operates 238 offices in 41 counties between Pennsylvania and Northeast Ohio. There are 15 bank branches in the Mahoning Valley.