The Herald, Sharon, Pa.

Business

April 24, 2014

FNB Corp. posts record earnings in first quarter

HERMITAGE — FNB Corp. reported Wednesday its first-quarter earnings were up a sharp 21 percent due to its buyout of BCSB Bancorp Inc. and loan growth.

The Hermitage-based company earned $34.5 million in the first quarter, or 20 cents a diluted share, compared to $28.5 million, or 20 cents a diluted share, in the same year-ago period. Earnings for FNB were a record for the financial services company.

Average loans totaled $9.7 billion and increased $1.5 billion, or 18.9 percent, reflecting organic average loan growth of $589 million, or 7.2 percent and loans added in FNB’s acquisitions. Growth in the commercial portfolio had average balances growing organically $292 million or 6.5 percent. Average organic consumer loan growth (consisting of direct, consumer lines of credit and indirect loans) was also strong at $390 million or 15.2 percent, which FNB said reflected successful sales management and an expanded banking footprint.

Noninterest income totaled $42.1 million, increasing $8.5 million, or 25.2 percent, which included a $9.5 million pre-tax net gain related to the sale of certain securities, including the pooled trust preferred securities portfolio.

An expense seen in the latest first quarter included $2.3 million for a preferrred stock dividend.

Other highlights of the first quarter include FNB completing the deal to buy BCSB Bancorp., a holding company in the greater Baltimore area. The deal provides FNB with an additional $600 million in total assets, $310 million in loans, $530 million in deposits and 16 banking offices in the Baltimore area.

On April 8, FNB announced it signed a definitive deal to buy OBA Financial Services Inc., a holding company with banking offices in Maryland.

“During the first quarter, we continued to grow revenue, loans and deposits, maintain a stable core net interest margin, post consistent asset quality results and control expenses,’’ said Vincent J. Delie Jr., FNB’s president and chief executive officer. “At the end of the quarter, FNB’s tangible common equity to tangible assets ratio is the strongest level in the past ten years and our expansion strategy positions us favorably for the future.’’

FNB is a regional diversified financial services company operating in six states. The company has total assets of $14.5 billion and more than 280 banking offices throughout Pennsylvania, Ohio, Maryland and West Virginia.

The company is best known for its largest affiliate, First National Bank, which also is based in Hermitage.

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