F.N.B. (FNB) 8-K F.N.B. Corporation Reports Second Quarter 2005 Results

Exhibit 99.1

F.N.B. CORPORATION REPORTS
SECOND QUARTER 2005 RESULTS

Hermitage, PA – July 21, 2005. F.N.B. Corporation (NYSE: FNB), a diversified financial services company, today reported second quarter 2005 net income of $17.5 million, or $.31 per diluted share. These results compare to $14.9 million, or $.28 per diluted share, for the first quarter of 2005 and $15.1 million, or $.32 per diluted share, for the same period last year. The Corporation’s return on equity for the second quarter of 2005 was 15.4%, its return on tangible equity was 30.2% and its return on assets was 1.25%.

“F.N.B. achieved the forecasted net income it had predicted for the second quarter thanks to loan growth, an increase in fee income and reduced non-interest expenses,” said Stephen Gurgovits, F.N.B. Corporation President and Chief Executive Officer. “We attribute this excellent performance to the successful execution of banking basics by an exceptional staff. We are particularly encouraged by the 6.6% annualized growth in loans over the prior quarter end, which will continue to provide revenues in the future.”

Through June 30, 2005, the Corporation posted net income of $32.5 million, or $.59 per diluted share, compared to $31.3 million, or $.66 per diluted share, for the same period in 2004. In the first half of 2005, the Corporation recorded $656 thousand after tax, or $.01 per diluted share, in merger-related costs due to the acquisition of NSD Bancorp Inc. (NSD) in Pittsburgh. In the same period last year, reported net income included $2.7 million of after-tax gain on the sale of branches and $731 thousand of after-tax non-interest income from Sun Bancorp, which a third party acquired in late 2004. These items provided after-tax income totaling $.07 per diluted share in the first half of 2004.

Fully tax equivalent net interest income for the second quarter of 2005 was up 4.4% on a sequential quarter basis and 15.9% over the same period last year. Average loans were up 5.8% on a linked quarter basis. In spite of rising market rates, the yield on earning assets was flat compared to the previous quarter due to competitive pricing pressures. Partially offsetting the increase in interest income was a 10 basis-point increase in the cost of funds, again due to competitive pricing pressures. The net interest margin for the second quarter was 3.87%, a decrease of 9 basis points from the first quarter of 2005, as a result of the higher cost of funds and the impact of purchase accounting on NSD assets and liabilities.

Year-to-date, net-interest income on a fully tax equivalent basis increased 12.5% primarily due to increased levels of earning assets and interest bearing liabilities as a result of the acquisition of First National Bank of Slippery Rock (Slippery Rock) in 2004 and the NSD acquisition. The Corporation’s net interest margin in the first half of 2005 was 3.93%, slightly narrower than the 4.01% in same period last year.

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Non-interest income for the second quarter of 2005 was $18.3 million compared to $18.4 million last quarter and $17.4 million in the same period last year. Service charges on loans and deposits were up $906 thousand, or 10%, on a linked quarter basis reflecting the addition of NSD as well as cyclical trends. Insurance commissions were down $642 thousand from the previous quarter due to the reduction in contingent fees, which are primarily earned in the first quarter of each year. Retail security sales were lower in the second quarter of 2005 versus the first quarter, which resulted in a decline of $309 thousand in commissions and fees.

Year-to-date June 30, 2005 non-interest income totaled $36.7 million, compared to $32.9 million in the same period last year, excluding the branch sale gain and Sun- related income recorded in the first half of 2004. This 11.7% increase is principally due to the acquisitions of Slippery Rock, NSD and the Morrell, Butz and Junker Insurance Agency. Non-interest income was 28% of total revenue in the first six months of 2005.

Non-interest expense for the second quarter of 2005 totaled $38.2 million, compared to $40.3 million in the previous quarter and $33.5 million for the same period last year. The second quarter of 2005 included $262 thousand in NSD merger-related costs. Expense reductions from last quarter were realized in each major category driven by reduced employee benefits expense and lower merger-related costs. The efficiency ratio was 55.2% in the second quarter of 2005, excluding merger-related costs.

On a year-to-date basis, non-interest expense, excluding merger-related costs, were $77.5 million compared to $68.1 million for the first half of last year. This 13.9% increase is primarily attributable to the previously referenced acquisitions completed in the second half of 2004 and the first quarter of 2005.

Annualized net charge-offs for the second quarter of 2005 were 54 basis points of average loans, compared to 43 basis points for the first quarter of 2005 and 46 basis points for the second quarter of 2004. Net charge-offs increased in the second quarter due to the charge-off of a $1.5 million loan that was previously fully reserved. Non-performing loans to total loans were 81 basis points for the second quarter of 2005, down from 87 basis points in the second quarter last year and 88 basis points on a sequential quarter basis. Non-performing assets as a percent of total assets showed similar improvements. The provision for loan losses was $2.7 million for the second quarter of 2005, compared to $2.3 million in the first quarter of 2005. On June 30, 2005, the allowance for loan losses was 1.34% of total loans and constituted 1.7 times non-performing loans versus 1.6 times in the same period last year.

Shareholders’ equity at June 30, 2005 was $460 million. The Corporation’s leverage capital ratio was 6.8% and its tangible capital ratio was 4.5% at the end of the quarter. The Corporation continues to maintain “well capitalized” ratios for federal bank regulatory purposes.

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The Corporation’s return on equity for the six months ended June 30, 2005 was 15.6%, its return on tangible equity was 28.6% and its return on assets was 1.20%.

“As a point of interest, theABA Banking Journalrecently recognized F.N.B. Corporation for having the 9^th highest return on equity of all banks and thrifts over $3 billion in assets during 2004,” Gurgovits noted. “We are very proud of this accomplishment and will continue to strive to maintain our high performance. Further, we remain committed to delivering on our shareholder value proposition. The quarterly cash dividend announced at our annual meeting in May represents a current yield of 4.5%, and ranks F.N.B. in the top 4% of all banks with $3-10 billion in assets.”

In April 2005, F.N.B. announced the signing of a definitive agreement to acquire North East Bancshares, Inc., a $69 million financial services company that operates four banking and lending offices in Erie County, PA. Pending regulatory and shareholder approvals, the transaction is expected to close during the fourth quarter of 2005.

The Corporation held its Annual Meeting on May 18, 2005 at Thiel College in Greenville, PA. Shareholders elected Henry M. Ekker, David J. Malone, Peter Mortensen and Earl K. Wahl, Jr. to the Board of Directors.

The Corporation will file an amended 2004 Form 10-K with the Securities and Exchange Commission in the near future to add two items omitted from the original March 2005 filing – the business address for Ernst & Young LLP, F.N.B. Corporation’s independent registered public accountants, and data with respect to the Corporation’s fixed charges ratio. There are no changes from the financial statements included in the original Form10-K.

The Corporation will host a conference call on Friday, July 22, 2005 at 11:00 a.m. (EDT) to discuss second quarter 2005 results. Interested parties may access the conference call by dialing 1-800-346-7359 with the entry code 3044. Replays of the call will be available until July 29, 2005 by calling 1-800-332-6854 and using the above entry code, 3044. A transcript of the conference call will also be available on the Corporation’s web site,http://www.fnbcorporation.com.

About F.N.B. Corporation:

F.N.B. Corporation, headquartered in Hermitage, PA, has total assets of $5.7 billion. F.N.B. is a leading provider of banking, wealth management, insurance and consumer finance services in western Pennsylvania and eastern Ohio, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National

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Insurance Agency, LLC and Regency Finance Company. It also operates consumer finance offices in Tennessee.

Mergent Inc., a leading provider of business and financial information on publicly traded companies, has recognized F.N.B. as a Dividend Achiever. This annual recognition is based on the Corporation’s outstanding record of increased dividend performance. The Corporation has consistently increased dividend payments for 32 consecutive years.

The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol FNB. Investor information is available on F.N.B.’s website athttp://www.fnbcorporation.com.

This press release of F.N.B. Corporation and the reports F.N.B. Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and specifically the financial operations, markets and products of F.N.B. Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause F.N.B. Corporation’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among depository institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which F.N.B. Corporation is engaged; (6) changes in the securities markets; or (7) risk factors mentioned in the reports and registration statements F.N.B. Corporation files with the Securities and Exchange Commission. F.N.B. Corporation undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this release.

# # #

Media Contact:

                    Kathryn Lima 724-981-4318

                                           724-301-6984 (cell)

Analysts/Institutional Investor Contact:

                    John Waters 239-514-2643

                                          239-272-6495 (cell)

http://www.fnbcorporation.com

Data tables follow

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F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)

										2nd Qtr 2005 -		2nd Qtr 2005 -
	2005						2004			1st Qtr 2005		2nd Qtr 2004
	Second			First			Second			Percent		Percent
Statement of earnings	Quarter			Quarter			Quarter			Variance		Variance
Interest income - taxable equivalent basis	$	75,084		$	70,181		$	62,113			7.0		20.9
Interest income	$	74,213		$	69,400		$	61,516			6.9		20.6
Interest expense		26,335			23,490			20,048			12.1		31.4
Net interest income		47,878			45,910			41,468			4.3		15.5
Provision for loan losses		2,686			2,331			3,620			15.2		-25.8
Net interest income after provision		45,192			43,579			37,848			3.7		19.4
Service charges		9,960			9,054			8,507			10.0		17.1
Insurance commissions and fees		3,127			3,769			2,498			-17.0		25.2
Securities commissions and fees		1,095			1,404			1,191			-22.0		-8.1
Trust income		1,756			1,905			1,676			-7.8		4.8
Gain on sale of securities		564			607			522			-7.2		8.0
Gain on sale of loans		295			314			815			-5.8		-63.7
Gain on sale of branches		0			0			0			n/m		n/m
Other		1,533			1,363			2,171			12.4		-29.4
Total non-interest income		18,330			18,416			17,380			-0.5		5.5
Salaries and employee benefits		19,735			21,183			17,040			-6.8		15.8
Occupancy and equipment		6,376			6,517			5,960			-2.2		7.0
Amortization of intangibles		951			860			519			10.6		83.2
Other		11,157			11,778			9,938			-5.3		12.3
Total non-interest expense		38,219			40,338			33,457			-5.3		14.2
Income before income taxes		25,303			21,657			21,771			16.8		16.2
Income taxes		7,762			6,747			6,706			15.0		15.7
Net income	$	17,541		$	14,910		$	15,065			17.6		16.4
Earnings per share
Basic	$	0.31		$	0.28		$	0.33			10.7		-6.1
Diluted	$	0.31		$	0.28		$	0.32			10.7		-3.1
Performance ratios
Return on average equity		15.39	%		15.76	%		25.28	%
Return on tangible equity (1)		30.22	%		26.88	%		30.82	%
Return on average assets		1.25	%		1.15	%		1.31	%
Net interest margin (FTE)		3.87	%		3.96	%		3.98	%
Yield on earning assets (FTE)		5.96	%		5.97	%		5.87	%
Cost of funds		2.38	%		2.28	%		2.16	%
Efficiency ratio (FTE) (2)		55.56	%		60.64	%		55.41	%
Common stock data
Average basic shares outstanding		56,275,414			53,041,581			46,265,852			6.1		21.6
Average diluted shares outstanding		57,002,404			53,808,732			47,043,011			5.9		21.2
Ending shares outstanding		56,293,407			56,274,790			46,296,328			0.0		21.6
Book value per common share	$	8.17		$	8.04		$	5.02			1.6		62.7
Tangible book value per common share	$	4.36		$	4.16		$	4.19			4.7		4.0
Dividend payout ratio		73.76	%		86.81	%		70.64	%

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)

	For the Six Months
	Ended June 30,
							Percent
Statement of earnings	2005			2004			Variance
Interest income - taxable equivalent basis	$	145,264		$	124,686			16.5
Interest income	$	143,613		$	123,492			16.3
Interest expense		49,825			39,819			25.1
Net interest income		93,788			83,673			12.1
Provision for loan losses		5,017			8,242			-39.1
Net interest income after provision		88,771			75,431			17.7
Service charges		19,014			16,563			14.8
Insurance commissions and fees		6,896			4,904			40.6
Securities commissions and fees		2,499			2,532			-1.3
Trust income		3,661			3,549			3.2
Gain on sale of securities		1,171			967			21.1
Gain on sale of loans		609			1,082			-43.7
Gain on sale of branches		0			4,135			*
Other		2,896			4,417			-34.4
Total non-interest income		36,746			38,149			-3.7
Salaries and employee benefits		40,918			35,294			15.9
Occupancy and equipment		12,893			11,692			10.3
Amortization of intangibles		1,811			1,038			74.4
Other		22,935			20,044			14.4
Total non-interest expense		78,557			68,068			15.4
Income before income taxes		46,960			45,512			3.2
Income taxes		14,509			14,225			2.0
Net income	$	32,451		$	31,287			3.7
Earnings per share
Basic	$	0.59		$	0.68			-13.2
Diluted	$	0.59		$	0.66			-10.6
Performance ratios
Return on average equity		15.56	%		26.03	%
Return on tangible equity (1)		28.59	%		31.57	%
Return on average assets		1.20	%		1.36	%
Net interest margin (FTE)		3.93	%		4.01	%
Yield on earning assets (FTE)		5.98	%		5.90	%
Cost of funds		2.33	%		2.14	%
Efficiency ratio (FTE) (2)		58.06	%		54.49	%
Common stock data
Average basic shares outstanding		54,667,431			46,219,548			18.3
Average diluted shares outstanding		55,413,899			47,055,031			17.8
Ending shares outstanding		56,293,407			46,296,328			21.6
Book value per common share	$	8.17		$	5.02			62.7
Tangible book value per common share	$	4.36		$	4.19			4.0
Dividend payout ratio		79.76	%		67.93	%

(1)	Return on tangible equity is calculated by dividing net income less amortization of intangibles by average equity less average intangibles.
(2)	The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus non-interest income.

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)

										2nd Qtr 2005 -		2nd Qtr 2005 -
	2005						2004			1st Qtr 2005		2nd Qtr 2004
	Second			First			Second			Percent		Percent
	Quarter			Quarter			Quarter			Variance		Variance
Average balances
Total assets	$	5,649,492		$	5,259,752		$	4,637,230			7.4		21.8
Earning assets		5,050,784			4,749,111			4,252,429			6.4		18.8
Securities		1,340,898			1,243,380			1,018,001			7.8		31.7
Loans, net of unearned income		3,708,608			3,504,247			3,232,935			5.8		14.7
Allowance for loan losses		52,953			52,655			47,336			0.6		11.9
Goodwill and intangibles		216,288			150,396			38,651			44.0		459.6
Deposits and repurchase agreements		4,136,397			3,887,935			3,488,836			6.4		18.6
Short-term borrowings		288,476			246,771			235,144			16.9		22.7
Long-term debt		566,254			533,717			476,183			6.1		18.9
Trust preferred securities		128,866			128,866			128,866			0.0		0.0
Shareholders’ equity		457,274			383,683			239,667			19.2		90.8
Asset quality data
Non-accrual loans	$	24,760		$	26,845		$	22,353			-7.8		10.8
Restructured loans		5,547			5,689			5,753			-2.5		-3.6
Non-performing loans		30,307			32,534			28,106			-6.8		7.8
Other real estate owned		6,510			6,240			3,399			4.3		91.5
Non-performing assets	$	36,817		$	38,774		$	31,505			-5.0		16.9
Net loan charge-offs	$	5,019		$	3,722		$	3,694			34.8		35.9
Allowance for loan losses		50,197			52,698			46,099			-4.7		8.9
Non-performing loans / total loans		0.81	%		0.88	%		0.87	%
Non-performing assets / total assets		0.65	%		0.69	%		0.66	%
Allowance for loan losses / total loans		1.34	%		1.43	%		1.43	%
Allowance for loan losses / non-performing loans		165.63	%		161.98	%		164.02	%
Net loan charge-offs (annualized) / average loans		0.54	%		0.43	%		0.46	%
Balances at period end
Total assets	$	5,701,883		$	5,609,386		$	4,771,095			1.6		19.5
Earning assets		5,091,150			5,016,508			4,378,213			1.5		16.3
Securities		1,337,373			1,328,151			1,147,023			0.7		16.6
Loans, net of unearned income		3,746,569			3,685,933			3,226,889			1.6		16.1
Goodwill and intangibles		214,615			216,337			38,419			-0.8		458.6
Deposits and repurchase agreements		4,131,746			4,094,320			3,479,919			0.9		18.7
Short-term borrowings		318,414			295,971			295,808			7.6		7.6
Long-term debt		598,590			568,558			571,379			5.3		4.8
Trust preferred securities		128,866			128,866			128,866			0.0		0.0
Shareholders’ equity		460,090			452,676			232,508			1.6		97.9
Capital ratios
Equity/assets (period end)		8.07	%		8.07	%		4.87	%
Leverage ratio		6.81	%		7.19	%		6.13	%
Tangible equity/tangible assets (period end)		4.47	%		4.38	%		4.10	%

F.N.B. CORPORATION
(Unaudited)
(Dollars in thousands)

	For the Six Months
	Ended June 30,
							Percent
	2005			2004			Variance
Average balances
Total assets	$	5,455,638		$	4,634,137			17.7
Earning assets		4,900,781			4,251,172			15.3
Securities		1,292,408			1,002,311			28.9
Loans, net of unearned income		3,606,992			3,247,741			11.1
Allowance for loan losses		52,805			47,263			11.7
Goodwill and intangibles		183,453			38,089			381.6
Deposits and repurchase agreements		4,012,852			3,477,679			15.4
Short-term borrowings		267,739			250,312			7.0
Long-term debt		550,004			466,852			17.8
Trust preferred securities		128,866			128,866			0.0
Shareholders’ equity		420,682			241,702			74.0
Asset quality data
Non-accrual loans	$	24,760		$	22,353			10.8
Restructured loans		5,547			5,753			-3.6
Non-performing loans		30,307			28,106			7.8
Other real estate owned		6,510			3,399			91.5
Non-performing assets	$	36,817		$	31,505			16.9
Net loan charge-offs	$	8,741		$	8,228			6.2
Allowance for loan losses		50,197			46,099			8.9
Non-performing loans / total loans		0.81	%		0.87	%
Non-performing assets / total assets		0.65	%		0.66	%
Allowance for loan losses / total loans		1.34	%		1.43	%
Allowance for loan losses / non-performing loans		165.63	%		164.02	%
Net loan charge-offs (annualized) / average loans		0.49	%		0.51	%
Balances at period end
Total assets	$	5,701,883		$	4,771,095			19.5
Earning assets		5,091,150			4,378,213			16.3
Securities		1,337,373			1,147,023			16.6
Loans, net of unearned income		3,746,569			3,226,889			16.1
Goodwill and intangibles		214,615			38,419			458.6
Deposits and repurchase agreements		4,131,746			3,479,919			18.7
Short-term borrowings		318,414			295,808			7.6
Long-term debt		598,590			571,379			4.8
Trust preferred securities		128,866			128,866			0.0
Shareholders’ equity		460,090			232,508			97.9
Capital ratios
Equity/assets (period end)		8.07	%		4.87	%
Leverage ratio		6.81	%		6.13	%
Tangible equity/tangible assets (period end)		4.47	%		4.10	%