1
EXHIBIT 99.1
F.N.B. CORPORATION
(NASDAQ: FBAN)
WWW.FNBCORPORATION.COM HERMITAGE, PA 16148
FOR IMMEDIATE RELEASE
DATE: January 17, 2001
CONTACT: Clay W. Cone
Vice President-Corporate Affairs
941-436-1676
F.N.B. REPORTS RECORD YEAR OF EARNINGS
NAPLES, FL, AND HERMITAGE, PA, Jan. 17 - F.N.B. Corporation (NASDAQ: FBAN) today
reported fourth quarter 2000 net income of $11.3 million, a 10 percent increase
from $10.3 million in the same period a year earlier. Diluted earnings per share
were $0.50, an increase of 11 percent compared to $0.45 for the same period a
year ago.
For the full year 2000, net income was a record $42.8 million, up 9 percent
compared to $39.3 million the previous year. Diluted earnings per share were
$1.88, an increase of 9 percent from $1.72 for the prior year-end. Core
operating earnings, which excludes merger-related expenses, were also a record
$42.8 million, up 5 percent compared to the $40.6 million in the previous year.
Core operating earnings per share increased 6 percent.
Return on average assets and return on average equity for 2000 were 1.13% and
14.2%.
The strong financial results for both the fourth quarter and full year were
accomplished despite a very difficult operating environment for financial
institutions. F.N.B. achieved significant revenue and income growth and
above-average returns while maintaining strong asset quality. The results were
in line with analysts' consensus expectations.
"F.N.B. continued to deliver strong, quality growth in all of its markets during
the year and we are well on our way to achieving further progress this year,"
said Gary L. Tice, President and Chief Executive Officer of F.N.B. "Much of this
continued success can be attributed to internal growth in our core banking
business along with our expansion into fast-growing areas of business, including
insurance, investment and trust services."
2
During the year, F.N.B. announced the affiliation of five independent insurance
agencies, giving it a total of six agencies in Florida and two in Pennsylvania.
It is anticipated that once all its pending deals are completed, F.N.B. will
have the nation's sixth largest bank-affiliated insurance agency, according to
the industry consulting firm Marsh, Berry & Co.
The company also aggressively expanded the range of investment and trust
products available to customers of its community banks in Florida, Pennsylvania
and Ohio.
Non interest income increased 31 percent for the fourth quarter of 2000 and 19
percent for the year when compared with the same periods a year earlier. These
increases were due principally to a rise in insurance commissions, service
charges and trust income.
During the fourth quarter, F.N.B. also announced an agreement to acquire
Citizens Community Bancorp, the parent of Citizens Community Bank of Florida.
This affiliation will add assets of approximately $170 million, deposits of $147
million and three full-service banking centers. It will position F.N.B. as the
second largest financial institution in Collier County, one of the nation's
fastest growing and most affluent communities.
For the year, total assets grew 5 percent to $3.9 billion. Once the acquisition
of Citizens Community Bancorp is completed, F.N.B. will have more than $4
billion in total assets.
Net interest income on a fully tax-equivalent basis was $38.7 million for the
fourth quarter of 2000, compared with $38.4 million for the same period a year
earlier, an increase of 1 percent. For the full year 2000, net interest income
was $155.6 million, compared with $148.4 million for the previous year, an
increase of 5 percent.
In accordance with F.N.B.'s emphasis on strong asset quality, credit quality
improved from its already high level. At December 31, 2000, the ratio of
non-performing loans to total loans was .43% and the allowance for credit losses
to total loans was 1.31%, compared to .46% and 1.30%, respectively for the prior
year end. For the quarter, net charge-offs to average loans were .41% versus
.44% for the fourth quarter of 1999.
Another noteworthy event of the past year was the retirement of Peter Mortensen,
65, as Chief Executive Officer. Mortensen, who had served in the executive
position for 26 years, will continue to provide leadership to the company as
Chairman of the Board.
"Under Pete's guidance, F.N.B. experienced unprecedented growth and success,"
Tice said. "We look forward to continuing to build on this strong foundation of
excellence."
3
As part of its plan to further enhance long-term shareholder value, F.N.B. this
month announced a charter consolidation plan. Under the program, each of the
company's banking affiliates in Florida, Pennsylvania and Ohio will be combined
under a single operating charter for each state, reducing the total number of
charters from eight to three.
The integration project, which is scheduled for completion during the first
quarter of 2001, is expected to boost pre-tax earnings on an annualized basis in
the range of $3.8 million to $4.1 million, or on an after-tax basis $0.11 a
share to $0.12 a share, by the year 2002. This will boost core operating
earnings by about 8 cents a share for the year 2001.
In conjunction with the foregoing actions, F.N.B. will take a pre-tax
consolidation charge of $3 million to $3.2 million in the first quarter of 2001
to cover severance-related costs and other expenses. The recovery period for
these charges is estimated at 10 months.
"This program will improve shareholder value by making our operations more
efficient, eliminating redundancies in our staff and operations, and increasing
return on equity and earnings per share growth," Tice said. "But this is only
part of the program. We also are committed to increasing revenues by focusing on
sales, and thus boosting fee income."
F.N.B. Corporation is a $3.9 billion diversified financial services company with
executive offices in Naples, Florida, and Hermitage, Pennsylvania. The company's
banking affiliates include First National Bank of Pennsylvania, First National
Bank of Naples, Cape Coral National Bank, First National Bank of Florida, West
Coast Guaranty Bank, Metropolitan National Bank, Reeves Bank, First National
Bank of Fort Myers and First County Bank. The company also operates insurance
agencies, a consumer finance company and First National Trust Company with a
total of 151 offices in five states. F.N.B. has increased cash dividends for 28
consecutive years and has been recognized as a Dividend Achiever by Mergent FIS,
formerly known as Moody's Investors Service.
# # # # # #
F.N.B. Corporation will host a conference call at 10 a.m. (Eastern Time) on
January 18, 2001. The live conference call will be available at 888-222-2994.
For those who are unavailable to listen to the live call, a replay of the
conference call will be available from 12 p.m. on January 18, 2001, until 7 p.m.
on January 25, 2001, by calling 888-222-2994.
This release contains certain "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. Actual results
could differ materially from those projected. F.N.B. undertakes no obligation to
release revisions to these forward-looking statements or to reflect events or
circumstances after the date of this release.
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Copies of this news release are available over the Internet at
www.fnbcorporation.com or by calling F.N.B. at 1-800-262-7600, extension 1676.
Shares of the corporation's common stock are traded on the Nasdaq Stock Market
under the symbol FBAN.
5
F.N.B. CORPORATION
COMPARATIVE SELECTED FINANCIAL DATA
AS OF DECEMBER 31, 2000
(UNAUDITED)
(DOLLARS IN THOUSANDS)
BALANCE SHEET 12/31/00 12/31/99
- ------------- -------- --------
Assets $3,886,000 $ 3,706,000
Loans, Net of Unearned 2,962,000 2,804,000
Deposits 3,103,000 2,909,000
Equity 321,000 290,000
Book Value Per Share 14.37 13.00
3 MONTHS ENDED 12 MONTHS ENDED
---------------------- --------------------------
INCOME STATEMENT 12/31/00 12/31/99 % CHG 12/31/00 12/31/99 % CHG
- ---------------- -------- -------- ----- -------- -------- -----
Net Income $ 11,314 $ 10,313 10 $ 42,776 $ 39,295 9
Core Operating Earnings 11,314 10,787 5 42,776 40,563 5
Net Interest Income 38,663 38,407 1 155,628 148,449 5
Non Interest Income 15,667 11,948 31 55,645 46,928 19
Non Interest Expense 35,010 32,913 6 137,501 129,679 6
Merger Related Expenses 491 1,824
DILUTED EARNINGS PER SHARE
- --------------------------
Net Income $ 0.50 $ 0.45 11 $ 1.88 $ 1.72 9
Core Operating Earnings $ 0.50 $ 0.47 6 $ 1.88 $ 1.77 6
RATIOS (CORE OPERATING EARNINGS) 12/31/00 12/31/99 12/31/00 12/31/99
- -------------------------------- -------- -------- -------- --------
Return on Average Assets 1.17% 1.18% 1.13% 1.16%
Return on Average Equity 14.34% 14.82% 14.16% 14.18%
Net Interest Margin 4.46% 4.73% 4.58% 4.76%
Nonperforming Loans to Total Loans 0.43% 0.46%
Allowance for Loan Losses to Total Loans 1.31% 1.30%
Net Charge-offs to Average Loans 0.41% 0.44% 0.31% 0.31%
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F.N.B. CORPORATION
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
2000
-----------------------------------------------
Fourth Third Second First
Statement of Earnings Quarter Quarter Quarter Quarter
- --------------------- ------- ------- ------- -------
Interest income - taxable equivalent basis $76,056 $75,272 $72,079 $69,684
Interest income $75,523 $74,702 $71,557 $69,154
Interest expense 36,860 35,922 32,241 30,285
------- ------- ------- -------
Net interest income 38,663 38,780 39,316 38,869
Provision for loan losses 2,564 2,439 2,901 2,973
------- ------- ------- -------
Net interest income after provision 36,099 36,341 36,415 35,896
Service charges 5,744 5,568 5,506 5,187
Insurance commissions and fees 5,251 5,058 4,045 4,304
Trust income 1,154 1,162 1,077 1,070
Gain on sale of securities 34 64 38 40
Other 3,484 2,804 1,946 2,109
------- ------- ------- -------
Total non-interest income 15,667 14,656 12,612 12,710
Salaries and employee benefits 19,238 19,248 18,602 19,522
Occupancy and equipment 5,537 5,532 5,315 5,348
Amortization of intangibles 578 557 473 451
Merger related expenses
Other 9,657 9,659 9,304 8,480
------- ------- ------- -------
Total non-interest expense 35,010 34,996 33,694 33,801
Income before income taxes 16,756 16,001 15,333 14,805
Income taxes 5,442 5,067 4,914 4,696
------- ------- ------- -------
Net income $11,314 $10,934 $10,419 $10,109
======= ======= ======= =======
Core operating earnings $11,314 $10,934 $10,419 $10,109
======= ======= ======= =======
Earnings per Common Share
- -------------------------
Basic earnings per share 0.51 0.49 0.47 0.46
Diluted earnings per share 0.50 0.48 0.46 0.45
Core Operating Earnings per Common Share
- ----------------------------------------
Basic earnings per share 0.51 0.49 0.47 0.46
Diluted earnings per share 0.50 0.48 0.46 0.45
Cash dividend per common share 0.18 0.18 0.18 0.17
Performance Ratios
- ------------------
Return on average shareholders' equity 14.34% 14.14% 14.17% 13.98%
Return on average assets 1.17% 1.13% 1.11% 1.10%
Net interest margin (FTE) 4.46% 4.48% 4.67% 4.72%
Yield on earning assets (FTE) 8.65% 8.57% 8.45% 8.36%
Efficiency ratio (FTE) 62.76% 63.77% 63.34% 64.00%
7
1999 4th Qtr
--------------------------------------------- 2000 - 1999
Fourth Third Second First Percent
Statement of Earnings Quarter Quarter Quarter Quarter Variance
- --------------------- ------- ------- ------- ------- -----------
Interest income - taxable
equivalent basis $67,569 $64,716 $62,936 $61,801 12.6
Interest income $67,047 $64,185 $62,422 $61,262 12.6
Interest expense 28,640 26,664 25,548 25,615 28.7
------- ------- ------- -------
Net interest income 38,407 37,521 36,874 35,647 0.7
Provision for loan losses 2,544 2,105 2,540 2,051 0.8
------- ------- ------- -------
Net interest income after
provision 35,863 35,416 34,334 33,596 0.7
Service charges 5,548 5,221 5,133 4,352 3.5
Insurance commissions and fees 2,532 2,679 2,551 2,827 107.4
Trust income 1,116 975 911 850 3.4
Gain on sale of securities 428 386 112 806 -92.1
Other 2,324 3,023 2,724 2,430 49.9
------- ------- ------- -------
Total non-interest income 11,948 12,284 11,431 11,265 31.1
Salaries and employee benefits 17,931 17,713 17,258 17,344 7.3
Occupancy and equipment 5,141 4,974 4,878 4,847 7.7
Amortization of intangibles 495 495 464 480 16.8
Merger related expenses 491 1,333
Other 8,855 9,495 9,147 8,338 9.1
------- ------- ------- -------
Total non-interest expense 32,913 32,677 31,747 32,342 6.4
Income before income taxes 14,898 15,023 14,018 12,519 12.5
Income taxes 4,585 4,678 4,222 3,678 18.7
------- ------- ------- -------
Net income $10,313 $10,345 $9,796 $8,841 9.7
======= ======= ====== ======
Core operating earnings $10,787 $10,320 $9,796 $9,660 4.9
======= ======= ====== ======
Earnings per Common Share
- -------------------------
Basic earnings per share 0.46 0.47 0.44 0.40 10.9
Diluted earnings per share 0.45 0.45 0.43 0.39 11.1
Core Operating Earnings per
- ---------------------------
Common Share
- ------------
Basic earnings per share 0.47 0.48 0.44 0.44 8.5
Diluted earnings per share 0.47 0.45 0.43 0.42 6.4
Cash dividend per common share 0.17 0.17 0.17 0.16 5.9
Performance Ratios
- ------------------
Return on average shareholders'
equity 14.82% 14.32% 13.65% 13.81%
Return on average assets 1.18% 1.17% 1.14% 1.15%
Net interest margin (FTE) 4.73% 4.75% 4.80% 4.76%
Yield on earning assets (FTE) 8.22% 8.09% 8.07% 8.13%
Efficiency ratio (FTE) 62.75% 63.93% 64.08% 64.34%
8
For the Year
Ended December 31,
-----------------------------------------
Percent
Statement of Earnings 2000 1999 Variance
- --------------------- --------- ------- --------
Interest income - taxable
equivalent basis $293,099 $257,022 14.0
Interest income $290,936 $254,916 14.1
Interest expense 135,308 106,467 27.1
-------- --------
Net interest income 155,628 148,449 4.8
Provision for loan losses 10,877 9,240 17.7
-------- --------
Net interest income after
provision 144,751 139,209 4.0
Service charges 22,005 20,254 8.6
Insurance commissions and fees 18,658 10,589 76.2
Trust income 4,463 3,852 15.9
Gain on sale of securities 176 1,732 -89.8
Other 10,343 10,501 -1.5
-------- --------
Total non-interest income 55,645 46,928 18.6
Salaries and employee benefits 76,610 70,246 9.1
Occupancy and equipment 21,732 19,840 9.5
Amortization of intangibles 2,059 1,934 6.5
Merger related expenses 0 1,824
Other 37,100 35,835 3.5
-------- --------
Total non-interest expense 137,501 129,679 6.0
Income before income taxes 62,895 56,458 11.4
Income taxes 20,119 17,163 17.2
-------- --------
Net income $42,776 $39,295 8.9
======= =======
Core operating earnings $42,776 $40,563 5.5
======= =======
Earnings per Common Share
- -------------------------
Basic earnings per share 1.93 1.77 9.0
Diluted earnings per share 1.88 1.72 9.3
Core Operating Earnings per
- ---------------------------
Common Share
- ------------
Basic earnings per share 1.93 1.83 5.5
Diluted earnings per share 1.88 1.77 6.2
Cash dividend per common share 0.71 0.67 6.0
Book value per common share 14.37 13.00 10.5
Tangible book value per common
share 13.06 12.10 7.9
Performance Ratios
- ------------------
Return on average shareholders' 14.16% 14.18%
equity
Return on average assets 1.13% 1.16%
Net interest margin (FTE) 4.58% 4.76%
Yield on earning assets (FTE) 8.51% 8.13%
Efficiency ratio (FTE) 63.46% 63.76%
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F.N.B. CORPORATION
- ------------------
(Dollars in thousands) 2000
------------------------------------------------------
Fourth Third Second First
Average Balances Quarter Quarter Quarter Quarter
- ---------------- ---------- ---------- ---------- ----------
Total assets $3,856,452 $3,844,948 $3,777,801 $3,700,728
Earning assets 3,498,976 3,492,948 3,431,488 3,354,295
Securities 489,561 476,369 468,489 475,836
Loans, net of unearned 2,968,840 2,989,821 2,954,508 2,866,645
Allowance for loan losses 39,489 39,522 38,575 37,102
Intangibles 29,185 27,423 21,163 19,898
Non-interest bearing deposits 442,514 440,202 447,924 425,562
Interest bearing deposits 2,615,147 2,599,243 2,569,502 2,530,651
Total deposits 3,057,661 3,039,445 3,017,426 2,956,213
Short-term borrowings 294,583 290,714 286,276 284,368
Long-term debt 120,960 141,714 115,751 110,925
Shareholders' equity 313,883 307,677 295,632 290,854
Average basic shares outstanding 22,054,587 22,189,281 21,917,171 21,892,855
Average diluted shares outstanding 22,771,095 22,950,270 22,687,624 22,717,161
Asset Quality Data
- ------------------
Non-accrual loans $9,947 $8,296 $7,898 $10,086
Restructured loans 2,810 2,805 2,993 3,435
---------- ---------- ---------- ----------
Non-performing loans 12,757 11,101 10,891 13,521
Other real estate owned 4,786 4,553 5,871 4,540
---------- ---------- ---------- ----------
Non-performing assets $ 17,543 $ 15,654 $ 16,762 $ 18,061
========== ========== ========== ==========
Net loan charge-offs $3,086 $2,564 $2,032 $1,535
Allowance for loan losses 38,737 39,259 38,618 37,749
Non-performing loans / total loans 0.43% 0.37% 0.37% 0.47%
Non-performing assets / total assets 0.45% 0.40% 0.44% 0.48%
Allowance for loan losses / total loans 1.31% 1.33% 1.29% 1.30%
Allowance for loan losses /
non-performing loans 303.65% 353.65% 354.59% 279.19%
Net loan charge-offs (annualized) /
average loans 0.41% 0.34% 0.28% 0.22%
10
(Dollars in thousands) 1999 4th Qtr
------------------------------------------------------ 2000 - 1999
Fourth Third Second First Percent
Average Balances Quarter Quarter Quarter Quarter Variance
- ---------------- ---------- ---------- ---------- ---------- ----------
Total assets $3,615,816 $3,497,977 $3,454,961 $3,395,936 6.7
Earning assets 3,262,763 3,175,396 3,126,830 3,083,047 7.2
Securities 498,951 525,516 540,355 553,261 -1.9
Loans, net of unearned 2,745,095 2,636,704 2,554,356 2,474,315 8.2
Allowance for loan losses 36,187 34,779 33,514 32,823 9.1
Intangibles 20,104 18,202 17,525 17,975 45.2
Non-interest bearing deposits 411,720 396,413 399,384 386,208 7.5
Interest bearing deposits 2,450,812 2,406,245 2,451,078 2,446,661 6.7
Total deposits 2,862,532 2,802,658 2,850,462 2,832,869 6.8
Short-term borrowings 280,079 288,477 208,873 165,130 5.2
Long-term debt 118,072 69,093 53,108 61,329 2.4
Shareholders' equity 288,719 285,836 287,871 283,769 8.7
Average basic shares outstanding 21,856,628 21,839,130 21,831,374 21,845,679 0.9
Average diluted shares outstanding 22,840,670 22,870,498 22,872,042 22,923,575 -0.3
Asset Quality Data
- ------------------
Non-accrual loans $9,321 $12,199 $10,804 $9,080 6.7
Restructured loans 3,560 1,731 1,806 1,790 -21.1
---------- ---------- ---------- ----------
Non-performing loans 12,881 13,930 12,610 10,870 -1.0
Other real estate owned 4,801 3,584 4,147 3,820 -0.3
---------- ---------- ---------- ----------
Non-performing assets $17,682 $17,514 $16,757 $14,690 -0.8
========== ========== ========== ==========
Net loan charge-offs $3,037 $2,543 $820 $1,650 1.6
Allowance for loan losses 36,311 33,991 34,429 32,709 6.7
Non-performing loans / total loans 0.46% 0.52% 0.49% 0.43%
Non-performing assets / total assets 0.48% 0.49% 0.48% 0.43%
Allowance for loan losses / total loans 1.30% 1.27% 1.34% 1.31%
Allowance for loan losses /
non-performing loans 281.90% 244.01% 273.03% 300.91%
Net loan charge-offs (annualized) /
average loans 0.44% 0.38% 0.13% 0.27%
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For the Year
(Dollars in thousands) Ended December 31,
----------------------------------------
Percent
Average Balances 2000 1999 Variance
- ---------------- ------------------------- --------
Total assets 3,795,019 3,491,982 8.7
Earning assets 3,444,647 3,162,650 8.9
Securities 477,593 529,573 -9.8
Loans, net of unearned 2,945,080 2,603,347 13.1
Allowance for loan losses 38,676 34,330 12.7
Intangibles 24,439 18,457 32.4
Non-interest bearing deposits 438,919 400,047 9.7
Interest bearing deposits 2,578,792 2,437,826 5.8
Total deposits 3,017,711 2,837,873 6.3
Short-term borrowings 289,361 237,919 21.6
Long-term debt 121,970 73,968 64.9
Shareholders' equity 302,001 286,064 5.6
Average basic shares outstanding 22,014,104 21,854,055 0.7
Average diluted shares outstanding 22,797,098 22,864,122 -0.3
Asset Quality Data
- ------------------
Non-accrual loans $ 9,947 $ 9,321 6.7
Restructured loans 2,810 3,560 -21.1
----------- -----------
Non-performing loans 12,757 12,881 -1.0
Other real estate owned 4,786 4,801 -0.3
----------- -----------
Non-performing assets $ 17,543 $ 17,682 -0.8
=========== ===========
Net loan charge-offs $ 9,217 $ 8,050 14.5
Allowance for loan losses 38,737 36,311 6.7
Non-performing loans / total loans 0.43% 0.46%
Non-performing assets / total assets 0.45% 0.48%
Allowance for loan losses / total loans 1.31% 1.30%
Allowance for loan losses /
non-performing loans 303.65% 281.90%
Net loan charge-offs (annualized) /
average loans 0.31% 0.31%
12
For the Year
Ended December 31,
-----------------------------------------
Percent
2000 1999 Variance
---------- ----------- ---------
Balances at Period End
- ----------------------
Total assets 3,885,796 3,706,184 4.8
Earning assets 3,497,882 3,309,542 5.7
Securities 496,963 486,090 2.2
Mortgage loans held for sale 1,042 8,733 -88.1
Loans, net of unearned 2,962,073 2,803,774 5.6
Non-interest bearing deposits 461,386 424,352 8.7
Interest bearing deposits 2,641,551 2,485,082 6.3
Total deposits 3,102,937 2,909,434 6.7
Short-term borrowings 282,865 332,197 -14.9
Long-term debt 116,140 117,634 -1.3
Shareholders' equity 321,274 290,315 10.7