F.N.B. Corporation (FNB) has reported 30.25 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $52.17 million, or $0.24 a share in the quarter, compared with $40.05 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $50.35 million, or $0.24 a share compared with $38.90 million or $0.22 a share, a year ago. Revenue during the quarter grew 25.88 percent to $196.11 million from $155.78 million in the previous year period. Net interest income for the quarter rose 25.80 percent over the prior year period to $157.51 million. Non-interest income for the quarter rose 28.73 percent over the last year period to $53.24 million.
Fnb Corp has made provision of $14.64 million for loan losses during the quarter, up 35.84 percent from $10.78 million in the same period last year.
Net interest margin contracted 3 basis points to 3.36 percent in the quarter from 3.39 percent in the last year period. Efficiency ratio for the quarter improved to 54.38 percent from 55.59 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Vincent J. Delie, Jr., President and Chief Executive Officer, commented, "FNB delivered another strong performance with operating net income per diluted common share increasing 9% compared to the prior quarter and record operating net income of $50.4 million. The third quarter's performance was also highlighted by record levels of revenue and an improved efficiency ratio. Additionally, our results reflect the full realization of cost savings from the Metro and Fifth Third branch acquisitions. The continued improvement in our efficiency ratio coupled with our revenue and earnings growth are additional proof points of successfully executing our organic growth and acquisition strategy."
Liabilities outpace assets growth
Total assets stood at $21,583.91 million as on Sep. 30, 2016, up 28.20 percent compared with $16,836.07 million on Sep. 30, 2015. On the other hand, total liabilities stood at $19,013.33 million as on Sep. 30, 2016, up 28.98 percent from $14,741.32 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $14,616.55 million as on Sep. 30, 2016, up 24.53 percent compared with $11,737.46 million on Sep. 30, 2015. Deposits stood at $15,976.88 million as on Sep. 30, 2016, up 25.21 percent compared with $12,759.74 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $4,082.14 million or 25.55 percent of total deposits on Sep. 30, 2016, compared with $2,911.44 million or 22.82 percent of total deposits on Sep. 30, 2015.
Investments stood at $4,326.86 million as on Sep. 30, 2016, up 39.36 percent or $1,222.04 million from year-ago. Shareholders equity stood at $2,570.58 million as on Sep. 30, 2016, up 22.72 percent or $475.83 million from year-ago.
Return on average assets moved up 2 basis points to 0.97 percent in the quarter from 0.95 percent in the last year period. At the same time, return on average equity increased 47 basis points to 8.10 percent in the quarter from 7.63 percent in the last year period.
Nonperforming assets moved up 26.56 percent or $28.54 million to $135.99 million on Sep. 30, 2016 from $107.45 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.63 percent in the quarter, down from 0.64 percent in the last year period.
Capital ratios deteriorate
F.N.B. Corporation witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 7.64 percent for the quarter, down from 8.20 percent for the previous year quarter. Equity to assets ratio was 11.91 percent for the quarter, down from 12.44 percent for the previous year quarter. Book value per share was $11.72 for the quarter, up 3.35 percent or $0.38 compared to $11.34 for the same period last year.
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