First National posts 3Q profit, will acquire bank

By Jamison Cocklin


First National Bank of Pennsylvania posted its 14th-consecutive quarter of commercial-loan growth in its third-quarter earnings report.

The bank announced this week that third-quarter profit increased 28 percent from a year earlier, with a profit of $30.7 million, or 22 cents per share, compared with $23.8 million over the same time in 2011.

Thus far, despite slower growth and low interest rates, larger regional banks in and around the Midwest, such as F.N.B., have steadily reported gains on their loan books, driven partially by manufacturers and stronger export-oriented business.

F.N.B. itself has been on a bit of a spending spree this year that has only increased its assets.

In January, the company completed mergers with both Parkvale Financial Corp. and Comm Bancorp Inc.

The bank also announced late Monday that it would complete a merger in April 2013 with a small community bank in Maryland that would earn it nearly $1 billion in new assets and accounts.

The deal will bring BankAnnapolis into the F.N.B. fold and with its acquisition give the bank a four-state presence worth $12.8 billion.

The bank’s chief executive, Vincent J. Delie, said the move could also eventually give F.N.B. entry into profitable markets like Baltimore and Washington, D.C.

Overall, average loans for F.N.B. in the third quarter totaled $7.9 billion, with consumer loans growing by $72.2 million since last quarter.

Home-equity related loans and consumer lines of credit helped the bank’s consumer lending operations. Net interest income increased slightly.

Average transaction deposits grew by $153.8 million from the second quarter and total average deposits totaled $9.8 billion, driving the bank’s efficiency ratio to 56.8 percent and giving it a “well capitalized” rating with federal regulators.

Loan growth, however, was yet again curbed by the negative impact of a separate lending portfolio in Florida, which the bank is trying to leave.

The provision set aside for loan losses increased from the second quarter to $8.4 million, mainly on concerns surrounding a specific pool of small- business loans. Net charge-offs in the third quarter, or loans the bank deems uncollectible, totaled $7.4 million.

Nonperforming loans declined, however, by $13.3 million and were 1.69 percent of the bank’s total originated loans.

F.N.B. is Youngstown’s second-largest bank with $1.1 billion in deposits here as of June 30.

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