The Herald, Sharon, Pa.


July 24, 2012

FNB earnings up in 2nd quarter

HERMITAGE — FNB Corp. reported its second quarter earnings were $29.1 million, or 21 cents a diluted share, up 23 percent from the same year-ago earnings of $22.4 million, or 18 cents a diluted share.  

The increase was due in part to FNB’s purchase of Parkvale Financial Corp.

“Our team delivered strong results with positive trends across all key business drivers,’’ said Vincent J. Delie Jr., FNB’s president and chief executive officer. “We are very pleased with the execution of our business strategies through the first half of 2012 and we continue to focus on opportunities to improve operating efficiency and enhance revenue growth.’’

Highlights for the quarter include:

ä A net interest margin of 3.80 percent.

ä Loan growth was 7.8 percent annualized for its Pennsylvania commercial loans, representing the 13th consecutive quarter of growth for the portfolio.

ä Net charge-offs totaled $7.5 million or 0.38 percent annualized of average loans.

FNB’s return on average tangible equity was 19.01 percent in the quarter, returns on average equity were 8.57 percent, average tangible assets were 1.12 percent and return on average assets were 1 percent.

Net interest income on a fully taxable equivalent basis totaled $96.3 million in the second quarter of 2012, increasing $3.5 million or 3.8 percent from a year ago. Average loans totaled $7.8 billion and grew $54.1 million or 2.8 percent annualized. Average loans for the Florida portfolio declined $28.7 million, or 20 percent, primarily due to principal payoffs the company is continuing to exit. Average loan growth, excluding the Florida portfolio reduction, was $82.8 million or 4.4 percent annualized, and continues to be largely driven by market share gains in the Pennsylvania commercial portfolio.

Consumer loan results were also strong, growing $48.4 million, or 8.3 percent annualized, reflecting seasonally higher demand and marketing initiatives targeting home-equity related products, as well as increased volume for indirect auto loans.

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