EXHIBIT 99.1
F.N.B. CORPORATION REPORTS
FIRST QUARTER 2005 RESULTS
Hermitage, PA - April 21, 2005 F.N.B. Corporation (NYSE: FNB), a diversified
financial services company, today reported first quarter 2005 net income of
$14.9 million, or $.28 per diluted share. These results compare to $16.2
million, or $.34 per diluted share, for the same period last year. In the first
quarter of 2005 the Corporation recorded $485 thousand after tax, or $.01 per
diluted share, in merger-related costs due to the acquisition of NSD Bancorp
Inc. (NSD). Reported net income in the same period last year included a gain on
sale of branches equaling $2.7 million and $369 thousand in income from Sun
Bancorp, which was acquired by Omega Financial Corporation in 2004. These items
contributed $3.1 million, or $.06 per diluted share, in the first quarter of
2004. The Corporation's return on equity for the first quarter of 2005 was
15.8%, and its return on assets was 1.15%.
"We are pleased to report excellent earnings for the first quarter of 2005,"
said Stephen Gurgovits, President and Chief Executive Officer of F.N.B.
Corporation. "As we begin our second year following the spin-off of our Florida
operations, we have demonstrated a continuation of our commitment to provide
high performing results to our shareholders."
On October 8, 2004 the Corporation completed its acquisition of Slippery Rock
Financial Corporation (Slippery Rock), parent company of First National Bank of
Slippery Rock, with $335 million in assets. Further, on February 18, 2005 the
Corporation completed its acquisition of NSD, the parent company of NorthSide
Bank, with $503 million in assets. The operations of these entities have been
included in the Corporation's results of operations from the date of
acquisition.
Fully tax equivalent net interest income for the first quarter of 2005 was up
9.1% over the same period last year, reflecting increased levels of earning
assets and interest bearing liabilities as a result of the Slippery Rock and NSD
acquisitions. The net interest margin in the first quarter of 2005 was 3.96%,
slightly narrower than the 4.04% in same period last year and 9 basis points
ahead of the 3.87% of the previous quarter.
Non-interest income for the first quarter of 2005 was $18.4 million compared to
$20.8 million in the same period last year. The first quarter of 2004 included a
$4.1 million pretax gain on sale of branches as well as $567 thousand in
income from Sun Bancorp that terminated when it was acquired. In addition,
insurance commissions and fees increased $1.4 million, or 56.7%, due to the
addition of the Morrell, Butz and Junker Insurance Agency at mid-year 2004. The
acquisitions of Slippery Rock and NSD also contributed to the $1.0 million
dollar, or 12.4%, increase in fee income from service charges on loans and
deposits.
1
Non-interest expense for the first quarter of 2005 totaled $40.3 million,
compared to $34.6 million in expense for the same period last year. The first
quarter of 2005 includes $746 thousand in NSD-related merger expenses.
Additionally, the acquisitions in 2004 and the first quarter of 2005 contributed
approximately $3.0 million to the Corporation's non-interest expense in the
first quarter of 2005.
Annualized net charge-offs for the first quarter of 2005 were 43 basis points of
average loans, compared to 56 basis points for the first quarter of 2004 and 53
basis points in the fourth quarter of 2004. Non-performing loans to total loans
were 89 basis points for the first quarter of 2005, representing improvements
from 92 basis points in the first quarter last year and 94 basis points on a
sequential quarter basis. Non-performing assets as a percent of total assets
showed similar improvements. As a direct result of these improving asset quality
trends, the provision for loan losses was reduced to $2.3 million for the first
quarter of 2005, compared to $4.6 million in the same period last year. On March
31, 2005 the allowance for loan losses was 1.43% of total loans, consistent with
the first quarter of 2004. Further, the allowance constituted 161% of
non-performing loans in the first quarter of 2005 versus 155% in the same period
last year.
Shareholders' equity at March 31, 2005 increased $128.6 million from the end of
last year primarily due to the additional equity issued in the NSD acquisition.
The equity to assets ratio and tangible capital ratio were 8.1% and 4.4%,
respectively, at the end of the first quarter of 2005. The Corporation continues
to maintain "well capitalized" ratios for federal bank regulatory purposes.
"Our expansion initiatives of last year have provided a major contribution to
our high performance and strong equity position in the first quarter of 2005,"
noted Gurgovits. "Further, we remain committed to delivering on our shareholder
value proposition as reflected in the cash dividend payout announced in the
first quarter 2005. This cash dividend represents a yield of 4.8%, and ranks
F.N.B. in the top 1% of all banks with $3-10 billion in assets."
The Corporation will host a conference call on Friday, April 22, 2005 at 11:00
a.m. (EDT) to discuss first 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 April 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.
The Corporation will hold its Annual Meeting on May 18, 2005 at 4:00 p.m. in the
Howard Miller Student Center at Thiel College in Greenville, PA. Shareholders of
record on March 9, 2005 will be entitled to vote at the meeting.
ABOUT F.N.B. CORPORATION:
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F.N.B. Corporation, headquartered in Hermitage, PA, has total assets of $5.6
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, F.N.B. Investment Advisors,
Inc., First National Insurance Agency, Inc. 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 over 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 at
http://fnbcorporation.com.
This press release of F.N.B. Corporation and the reports it files with the
Securities and Exchange Commission often contain "forward-looking statements"
relating to present or future trends of 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 future
results to differ materially from historical performance or projected
performance. These 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. 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. 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 Investors Contact:
John Waters 238-514-2643
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)
2005 2004 1st Qtr 2005- 1st Qtr 2005-
------------ -------------------------------- 4th Qtr 2004 1st Qtr 2004
First Fourth First Percent Percent
STATEMENT OF EARNINGS Quarter Quarter Quarter Variance Variance
- --------------------- ------------ ------------ ------------ ------------- ------------
Interest income - taxable equivalent basis $ 70,181 $ 67,660 $ 62,573 3.7 12.2
Interest income $ 69,400 $ 67,006 $ 61,976 3.6 12.0
Interest expense 23,490 22,688 19,771 3.5 18.8
------------ ------------ ------------
Net interest income 45,910 44,318 42,205 3.6 8.8
Provision for loan losses 2,331 4,468 4,622 (47.8) (49.6)
------------ ------------ ------------
Net interest income after provision 43,579 39,850 37,583 9.4 16.0
Service charges 9,054 9,026 8,056 0.3 12.4
Insurance commissions and fees 3,769 3,084 2,406 22.2 56.7
Securities commissions and fees 1,404 1,354 1,341 3.7 4.7
Trust income 1,905 1,684 1,873 13.1 1.7
Gain (loss) on sale of securities 607 (830) 445 (173.1) 36.4
Gain on sale of loans 314 322 267 (2.5) 17.5
Gain on sale of branches -- -- 4,135 n/m (100.0)
Other 1,363 6,563 2,246 (79.2) (39.3)
------------ ------------ ------------
Total non-interest income 18,416 21,201 20,769 (13.1) (11.3)
Salaries and employee benefits 21,183 17,916 18,254 18.2 16.0
Occupancy and equipment 6,517 6,531 5,733 (0.2) 13.7
Amortization of intangibles 860 801 519 7.4 65.7
Other 11,778 13,369 10,106 (11.9) 16.5
------------ ------------ ------------
Total non-interest expense 40,338 38,617 34,611 4.5 16.5
Income before income taxes 21,657 22,434 23,741 (3.5) (8.8)
Income taxes 6,747 6,622 7,518 1.9 (10.3)
------------ ------------ ------------
NET INCOME $ 14,910 $ 15,812 $ 16,222 (5.7) (8.1)
============ ============ ============
Earnings per share
Basic $ 0.28 $ 0.32 $ 0.35 (12.5) (20.0)
Diluted $ 0.28 $ 0.31 $ 0.34 (9.7) (17.6)
PERFORMANCE RATIOS
- ------------------
Return on average equity 15.76% 19.68% 26.74%
Return on average assets 1.15% 1.24% 1.41%
Net interest margin (FTE) 3.96% 3.87% 4.04%
Yield on earning assets (FTE) 5.97% 5.83% 5.91%
Cost of funds 2.28% 2.25% 2.12%
Efficiency ratio (FTE)(1) 60.64% 57.15% 53.63%
COMMON STOCK DATA
- -----------------
Average basic shares outstanding 53,041,581 49,724,057 46,173,243 6.7 14.9
Average diluted shares outstanding 53,808,732 50,564,299 47,067,603 6.4 14.3
Ending shares outstanding 56,274,790 50,058,119 46,284,226 12.4 21.6
Book value per common share $ 8.04 $ 6.47 $ 5.40 24.2 48.9
Tangible book value per common share $ 4.16 $ 4.42 $ 4.56 (5.8) (8.7)
Dividend payout ratio 86.81% 72.56% 65.42%
(1) 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)
2005 2004 1st Qtr 2005- 1st Qtr 2005-
---------- --------------------------- 4th Qtr 2004 1st Qtr 2004
First Fourth First Percent Percent
AVERAGE BALANCES Quarter Quarter Quarter Variance Variance
- ---------------- ---------- ---------- ---------- ---------- ----------
Total assets $5,259,608 $5,064,681 $4,631,044 3.8 13.6
Earning assets 4,749,111 4,617,240 4,249,915 2.9 11.7
Securities 1,243,380 1,226,458 986,621 1.4 26.0
Loans, net of unearned income 3,504,247 3,388,884 3,262,547 3.4 7.4
Allowance for loan losses 52,655 51,570 47,191 2.1 11.6
Goodwill and intangibles 150,252 96,286 37,527 56.0 300.4
Deposits and repurchase agreements 3,887,935 3,807,835 3,466,522 2.1 12.2
Short-term borrowings 246,771 186,890 265,481 32.0 (7.0)
Long-term debt 533,573 547,208 457,520 (2.5) 16.6
Trust preferred securities 128,866 128,866 128,866 -- --
Shareholders' equity 383,683 319,695 243,738 20.0 57.4
ASSET QUALITY DATA
- ------------------
Non-accrual loans $ 26,845 $ 27,029 $ 24,018 (0.7) 11.8
Restructured loans 5,793 4,993 5,826 16.0 (0.6)
---------- ---------- ----------
Non-performing loans 32,638 32,022 29,844 1.9 9.4
Other real estate owned 6,240 6,200 3,354 0.6 86.1
---------- ---------- ----------
Non-performing assets $ 38,878 $ 38,222 $ 33,198 1.7 17.1
========== ========== ==========
Net loan charge-offs $ 3,723 $ 4,506 $ 4,534 (17.4) (17.9)
Allowance for loan losses 52,698 50,467 46,227 4.4 14.0
Non-performing loans/total loans 0.89% 0.94% 0.92%
Non-performing assets/total assets 0.69% 0.76% 0.72%
Allowance for loan losses/total loans 1.43% 1.49% 1.43%
Allowance for loan losses/
non-performing loans 161.46% 157.60% 154.90%
Net loan charge-offs (annualized)/
average loans 0.43% 0.53% 0.56%
BALANCES AT PERIOD END
- ----------------------
Total assets $5,610,450 $5,027,009 $4,635,436 11.6 21.0
Earning assets 5,016,508 4,575,201 4,261,553 9.6 17.7
Securities 1,328,151 1,177,000 1,018,183 12.8 30.4
Loans, net of unearned income 3,685,933 3,389,461 3,240,065 8.7 13.8
Goodwill and intangibles 218,368 102,849 38,941 112.3 460.8
Deposits and repurchase agreements 4,094,320 3,758,934 3,437,776 8.9 19.1
Short-term borrowings 295,971 234,259 279,943 26.3 5.7
Long-term debt 567,591 507,343 473,645 11.9 19.8
Trust preferred securities 128,866 128,866 128,866 -- --
Shareholders' equity 452,676 324,102 250,044 39.7 81.0
CAPITAL RATIOS
- --------------
Equity/assets (period end) 8.07% 6.45% 5.39%
Leverage ratio 7.19% 6.52% 6.00%
Tangible equity/tangible assets (period end) 4.35% 4.49% 4.59%