HERMITAGE, Pa., Jan. 17 /PRNewswire-FirstCall/ -- F.N.B. Corporation , a diversified financial services company, today reported financial results for the fourth quarter and full year of 2007. Fourth quarter 2007 net income was $17.1 million, or $0.28 per diluted share, compared to $17.6 million, or $0.29 per diluted share, for both the third quarter of 2007 and the fourth quarter of 2006. The Corporation's return on average tangible equity for the fourth quarter of 2007 was a strong 25.0%, its return on average equity was 12.5%, its return on average tangible assets was 1.21% and its return on average assets was 1.11%.
For the full year ended December 31, 2007, the Corporation posted net income of $69.7 million, a 3.0% increase, compared to $67.6 million for the full year ended December 31, 2006. On a per share basis, full year 2007 earnings were $1.15 per diluted share, an increase from $1.14 per diluted share for the full year ended December 31, 2006. The Corporation's return on average tangible equity for the full year ended December 31, 2007, was a strong 26.2%, its return on average equity was 12.9%, its return on average tangible assets was 1.25% and its return on average assets was 1.15%.
Stephen J. Gurgovits, Chairman and Chief Executive Officer of F.N.B. Corporation, commented, "We are pleased with the full year earnings growth and continued strong profitability, having avoided the current industry challenges related to sub-prime lending and risky investment securities. Our business model continues to benefit from our focus on prudently growing our loan portfolio, managing our net interest margin, emphasizing recurring fee income and controlling our operating and credit costs."
Mr. Gurgovits continued, "We are cautiously optimistic about our operations in 2008. We have noticeable bright spots including the closing of our pending acquisition of Omega Financial Corporation, about which we are thrilled, and the additional depth to our management team with the addition of Bob New."
Fourth Quarter 2007 Results
Total average loans increased 2.1% annualized compared to the third quarter of 2007 and 3.0% compared to the same period of 2006. Commercial loans led the growth, increasing 5.9% annualized over the third quarter of 2007, and were partially offset by seasonally lower balances of direct installment and indirect auto loans. The increase in average loans coupled with increased balances of investment securities resulted in a 3.0% annualized increase in average earning assets compared to the prior quarter.
The growth in earning assets provided a 2.2% annualized increase in fully taxable equivalent (FTE) net interest income compared to the third quarter of 2007. The Corporation's net interest margin for the fourth quarter of 2007 declined 1 basis point to 3.72% compared to the third quarter of 2007.
Average balances of savings and NOW accounts, which increased 6.2% for the fourth quarter of 2007 compared to the same quarter of 2006, continue to provide evidence of the growth in the Corporation's banking relationships. The decline in average balances of non-interest bearing deposits for the fourth quarter of 2007, compared to the prior quarter, was due to seasonality. In total, the decline in average balances of non-interest bearing deposits and time deposits was partially offset by growth in treasury management accounts, resulting in a 0.9% annualized decline in average deposits and treasury management balances compared to the third quarter of 2007.
Non-interest income increased $1.0 million, or 19.2% annualized, compared to the prior quarter. This strong growth was led by increases in wealth management, mortgage originations and banking service fees. Additionally, other non-interest income for the prior quarter included a $0.5 million loss on the sale of a building acquired in a prior merger.
When compared to the fourth quarter of 2006, total non-interest income increased $1.3 million, or 6.9%, reflecting the strong performance of the above-mentioned fee revenue items and swap fees earned from commercial customers, partially offset by negative pricing trends for insurance policy renewals and the absence of gains on the sale of securities. Total non- interest income represented 29% of net revenue for the fourth quarter of 2007.
The seasonal decline in personnel expense, which was due to lower end of the year payroll tax expense and year-end revisions to accruals for incentive compensation and medical benefit costs, helped non-interest expense decline 6.4% annualized from the prior quarter to $40.6 million for the fourth quarter of 2007. Positive operating leverage was achieved as evidenced by the improvement in the efficiency ratio to 55.5% from 57.4% in the prior quarter and 56.2% in the same quarter of last year.
The Corporation's income tax expense for the fourth quarter of 2007 increased $1.0 million compared to the prior quarter. This increase was primarily due to the inclusion, in the prior quarter, of a net benefit from the successful resolution of a previously uncertain tax position.
During the quarter, the Corporation took action with respect to two loans to one Florida developer, which influenced its credit metrics. For one project, an $853 thousand charge-off was recorded, which had been specifically reserved for in the third quarter. This project was moved to other real estate owned. A second project, with a balance of $8.2 million, was moved to non- accruing status with a specific reserve of $2.0 million established. At quarter end, these two projects comprised $9.9 million of the $40.7 million in non-performing assets.
Including the previously mentioned charge-off, annualized net loan charge- offs for the fourth quarter of 2007 were 41 basis points of average loans, representing an increase from historically low levels of 27 basis points in the third quarter of 2007 and 28 basis points in the fourth quarter of 2006. The ratio of non-performing assets to total assets was 67 basis points at December 31, 2007, representing an increase from historically low levels of 49 basis points in the third quarter of 2007 and 57 basis points in the fourth quarter of 2006. The one previously mentioned relationship represented 16 basis points of total assets at December 31, 2007.
The $5.2 million loan loss provision for the fourth quarter of 2007 reflects the previously mentioned specific reserve. At December 31, 2007, the allowance for loan losses was 1.22% of total loans, representing a 2 basis point increase from the third quarter of 2007 and 1.6 times total non- performing loans.
Full Year 2007 Results
Net interest income, on an FTE basis, for the full year of 2007 was 3.5% higher than the same period of last year, reflecting growth in average loans of 6.0% and growth in average deposits and treasury management balances of 4.5%. Additionally, the Corporation's net interest margin for the full year of 2007 increased 2 basis points to 3.73%, when compared to the full year of 2006.
Non-interest income for the full year of 2007 increased 2.9% to $81.6 million from $79.3 million during the same period of 2006. Non-interest income was 29% of net revenue for the full year of 2007.
Non-interest expense for the full year of 2007 was $165.6 million, a 3.2% increase compared to $160.5 million for the same period of 2006. The efficiency ratio improved slightly to 57.4% for the full year of 2007 from 57.5% for the full year of 2006.
Capital Position
Shareholders' equity at December 31, 2007, was $544.4 million, or $8.99 per common share. Tangible book value was $4.67 per common share at the end of the fourth quarter of 2007. The Corporation's leverage and tangible capital ratios were 7.47% and 4.85%, respectively, at December 31, 2007. The Corporation's capital ratios continue to exceed federal bank regulatory agency "well capitalized" thresholds.
Other Highlights
On November 9, 2007, F.N.B. Corporation and Omega Financial Corporation jointly announced the signing of a definitive merger agreement pursuant to which F.N.B. Corporation will acquire Omega Financial Corporation, a State College, Pennsylvania-based provider of diversified financial services, in an all-stock transaction. The combination of the two organizations will create the fifth largest bank holding company based in Pennsylvania with approximately $8 billion in total assets and over 210 full service branches serving commercial and consumer customers in 35 counties in Pennsylvania and Northeast Ohio.
Conference Call
Management will host a quarterly conference call to discuss results for the fourth quarter of 2007, tomorrow, Friday, January 18, 2008, at 11:00 AM Eastern Time. Hosting the call will be Stephen J. Gurgovits, Chairman and Chief Executive Officer, and Brian F. Lilly, Chief Financial Officer. The call can be accessed via the telephone by dialing (888) 713-3595 or (913) 312-1422 for international callers; the confirmation number is 8087554.
A replay of the call will be available from 2:00 PM Eastern Time on January 18, 2008 until midnight Eastern Time on February 1, 2008. The replay can be accessed by dialing (888) 203-1112 or (719) 457-0820 for international callers; the confirmation number is 8087554. A transcript of the call will be posted to the Shareholder and Investor Relations section of F.N.B. Corporation's Web site at http://www.fnbcorporation.com/.
About F.N.B. Corporation
F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $6.1 billion at December 31, 2007. F.N.B. is a leading provider of commercial and retail banking, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania and 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 Insurance Agency, LLC, F.N.B. Capital Corporation, LLC and Regency Finance Company. It also operates consumer finance offices in Tennessee and loan production offices in Pennsylvania, Tennessee and Florida.
Mergent Inc., a leading provider of business and financial information about publicly traded companies, has recognized F.N.B. Corporation 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 35 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. Corporation's Web site at http://www.fnbcorporation.com/.
Forward-looking Statements
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 financial 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) technological issues which may adversely affect F.N.B. Corporation's financial operations or customers; (7) changes in the securities markets; or (8) 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 press release.
Additional Information about the Merger with Omega Financial Corporation
SHAREHOLDERS OF F.N.B. AND OMEGA ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
The joint proxy statement/prospectus and other relevant materials and any other documents filed by F.N.B. with the SEC, may be obtained free of charge at the SEC's Web site at http://www.sec.gov/. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by F.N.B. Corporation by contacting James Orie, F.N.B. Corporation, One F.N.B. Boulevard, Hermitage, PA 16148, telephone: (724) 983-3317 and by Omega by contacting Daniel Warfel, CFO, Omega Financial Corporation, 366 Walker Drive, P.O. Box 298, State College, PA 16804-0298, telephone: (814) 231-5778.
F.N.B. and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the proposed merger. Information concerning such participants' ownership of F.N.B. common stock is set forth in F.N.B.'s proxy statements and Annual Reports on Form 10-K, previously filed with the SEC. Additional information about the interests of those participants may be obtained from reading the joint proxy statement/prospectus relating to the merger when it becomes available.
Omega and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the proposed merger. Information concerning such participants' ownership of Omega common stock is set forth in Omega's proxy statements and Annual Reports on Form 10-K, previously filed with the SEC. Additional information about the interests of those participants may be obtained from reading the joint proxy statement/prospectus relating to the merger when it becomes available.
This communication does not constitute an offer of any securities for sale.
F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data) 2007 2006 Percent Variance 4th Qtr 4th Qtr 2007 - 2007 - Statement of earnings Fourth Third Fourth 3rd Qtr 4th Qtr Quarter Quarter Quarter 2007 2006 Interest income $92,834 $93,949 $90,760 -1.2 2.3 Interest expense 43,424 44,791 42,802 -3.1 1.5 Net interest income 49,410 49,158 47,958 0.5 3.0 Taxable equivalent adjustment 1,202 1,169 1,036 2.8 16.1 Net interest income (FTE) 50,612 50,327 48,994 0.6 3.3 Provision for loan losses 5,232 3,776 2,529 38.6 106.9 Net interest income after provision (FTE) 45,380 46,551 46,465 -2.5 -2.3 Service charges 10,711 10,286 9,940 4.1 7.7 Insurance commissions and fees 3,044 3,301 3,237 -7.8 -6.0 Securities commissions and fees 1,805 1,595 1,287 13.1 40.2 Trust income 2,188 2,109 2,064 3.7 6.0 Gain (loss) on sale of securities 0 (7) 405 -102.2 -100.0 Gain on sale of loans 534 455 444 17.5 20.3 Other 2,354 1,943 1,919 21.1 22.7 Total non-interest income 20,636 19,682 19,296 4.8 6.9 Salaries and employee benefits 21,448 22,030 20,199 -2.6 6.2 Occupancy and equipment 6,741 6,867 7,244 -1.8 -6.9 Amortization of intangibles 1,101 1,099 1,008 0.1 9.2 Other 11,328 11,282 10,944 0.4 3.5 Total non-interest expense 40,618 41,278 39,395 -1.6 3.1 Income before income taxes 25,398 24,955 26,366 1.8 -3.7 Taxable equivalent adjustment 1,202 1,169 1,036 2.8 16.1 Income taxes 7,134 6,162 7,737 15.8 -7.8 Net income $17,062 $17,624 $17,593 -3.2 -3.0 Earnings per share Basic $0.28 $0.29 $0.29 -3.4 -3.4 Diluted $0.28 $0.29 $0.29 -3.4 -3.4 Performance ratios Return on average equity 12.45% 12.96% 12.88% Return on tangible equity (1) 25.04% 26.31% 26.10% Return on average assets 1.11% 1.15% 1.16% Return on tangible assets (2) 1.21% 1.25% 1.25% Net interest margin (FTE) 3.72% 3.73% 3.67% Yield on earning assets (FTE) 6.90% 7.03% 6.84% Cost of funds 3.54% 3.68% 3.55% Efficiency ratio (FTE) (3) 55.46% 57.39% 56.21% Common stock data Average basic shares outstanding 60,155,781 60,154,574 60,027,643 0.0 0.2 Average diluted shares outstanding 60,622,494 60,640,486 60,626,455 0.0 0.0 Ending shares outstanding 60,554,248 60,555,834 60,394,279 0.0 0.3 Book value per common share $8.99 $8.94 $8.90 0.5 1.0 Tangible book value per common share $4.67 $4.61 $4.49 1.4 4.1 Dividend payout ratio 85.17% 82.47% 80.65% (1) Return on tangible equity is calculated by dividing net income less amortization of intangibles by average equity less average intangibles. (2) Return on tangible assets is calculated by dividing net income less amortization of intangibles by average assets less average intangibles. (3) 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. (4) Treasury management accounts are included in short-term borrowings on the balance sheet. (5) Certain prior period amounts have been reclassified to conform to the current period presentation. F.N.B. CORPORATION (Unaudited) (Dollars in thousands, except per share data) For the Year Ended December 31, Percent Statement of earnings 2007 2006 Variance Interest income $368,890 $342,422 7.7 Interest expense 174,053 153,585 13.3 Net interest income 194,837 188,837 3.2 Taxable equivalent adjustment 4,658 3,934 18.4 Net interest income (FTE) 199,495 192,771 3.5 Provision for loan losses 12,693 10,412 21.9 Net interest income after provision (FTE) 186,802 182,359 2.4 Service charges 40,827 40,053 1.9 Insurance commissions and fees 13,994 13,988 0.0 Securities commissions and fees 6,326 4,871 29.9 Trust income 8,577 7,780 10.2 Gain (loss) on sale of securities 1,037 1,802 -42.5 Gain on sale of loans 1,715 1,607 6.7 Other 9,133 9,174 -0.4 Total non-interest income 81,609 79,275 2.9 Salaries and employee benefits 87,219 83,649 4.3 Occupancy and equipment 27,737 27,563 0.6 Amortization of intangibles 4,406 4,148 6.2 Other 46,252 45,154 2.4 Total non-interest expense 165,614 160,514 3.2 Income before income taxes 102,797 101,120 1.7 Taxable equivalent adjustment 4,658 3,934 18.4 Income taxes 28,461 29,537 -3.6 Net income $69,678 $67,649 3.0 Earnings per share Basic $1.16 $1.15 0.9 Diluted $1.15 $1.14 0.9 Performance ratios Return on average equity 12.89% 13.15% Return on tangible equity (1) 26.23% 26.30% Return on average assets 1.15% 1.15% Return on tangible assets (2) 1.25% 1.25% Net interest margin (FTE) 3.73% 3.71% Yield on earning assets (FTE) 6.97% 6.67% Cost of funds 3.61% 3.29% Efficiency ratio (FTE) (3) 57.35% 57.48% Common stock data Average basic shares outstanding 60,135,859 58,852,623 2.2 Average diluted shares outstanding 60,629,065 59,376,648 2.1 Ending shares outstanding 60,554,248 60,394,279 0.3 Book value per common share $8.99 $8.90 1.0 Tangible book value per common share $4.67 $4.49 4.1 Dividend payout ratio 82.45% 81.84% (1) Return on tangible equity is calculated by dividing net income less amortization of intangibles by average equity less average intangibles. (2) Return on tangible assets is calculated by dividing net income less amortization of intangibles by average assets less average intangibles. (3) 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. (4) Treasury management accounts are included in short-term borrowings on the balance sheet. (5) Certain prior period amounts have been reclassified to conform to the current period presentation. F.N.B. CORPORATION (Unaudited) Percent (Dollars in thousands) 2007 2006 Variance 4th Qtr 4th Qtr 2007 - 2007 - Fourth Third Fourth 3rd Qtr 4th Qtr Average balances Quarter Quarter Quarter 2007 2006 Total assets $6,109,593 $6,078,664 $6,040,889 0.5 1.1 Earning assets 5,418,770 5,377,543 5,325,077 0.8 1.8 Securities 1,053,081 1,030,999 1,072,857 2.1 -1.8 Loans, net of unearned income 4,363,982 4,341,123 4,238,382 0.5 3.0 Allowance for loan losses 52,729 51,670 53,494 2.1 -1.4 Goodwill and intangibles 262,077 263,184 264,442 -0.4 -0.9 Deposits and treasury management accounts (4) 4,706,626 4,717,121 4,621,942 -0.2 1.8 Other short-term borrowings 170,884 160,162 127,142 6.7 34.4 Long-term debt 462,787 437,945 527,892 5.7 -12.3 Trust preferred securities 151,031 151,031 151,031 0.0 0.0 Shareholders' equity 543,743 539,698 541,782 0.7 0.4 Asset quality data Non-accrual loans $29,211 $21,346 $24,636 36.8 18.6 Restructured loans 3,468 3,470 3,492 -0.1 -0.7 Non-performing loans 32,679 24,816 28,128 31.7 16.2 Other real estate owned 8,052 5,358 5,948 50.3 35.4 Non-performing assets $40,731 $30,174 $34,076 35.0 19.5 Net loan charge-offs $4,548 $2,905 $3,007 56.6 51.2 Allowance for loan losses 52,806 52,122 52,575 1.3 0.4 Non-performing loans / total loans 0.75% 0.57% 0.66% Non-performing assets / total assets 0.67% 0.49% 0.57% Allowance for loan losses / total loans 1.22% 1.20% 1.24% Allowance for loan losses / non-performing loans 161.59% 210.03% 186.91% Net loan charge-offs (annualized) / average loans 0.41% 0.27% 0.28% Balances at period end Total assets $6,088,021 $6,124,174 $6,007,592 -0.6 1.3 Earning assets 5,376,328 5,404,247 5,292,930 -0.5 1.6 Securities 1,025,974 1,035,959 1,034,358 -1.0 -0.8 Loans, net of unearned income 4,344,235 4,358,604 4,253,144 -0.3 2.1 Goodwill and intangibles 261,559 262,663 266,337 -0.4 -1.8 Deposits and treasury management accounts (4) 4,674,236 4,738,340 4,624,906 -1.4 1.1 Other short-term borrowings 173,271 197,032 111,846 -12.1 54.9 Long-term debt 481,366 433,691 519,890 11.0 -7.4 Trust preferred securities 151,031 151,031 151,031 0.0 0.0 Shareholders' equity 544,357 541,593 537,372 0.5 1.3 Capital ratios Equity/assets (period end) 8.94% 8.84% 8.94% Leverage ratio 7.47% 7.43% 7.28% Tangible equity/tangible assets (period end) 4.85% 4.76% 4.72% F.N.B. CORPORATION (Unaudited) (Dollars in thousands) For the Year Ended December 31, Percent Average balances 2007 2006 Variance Total assets $6,055,384 $5,889,925 2.8 Earning assets 5,356,711 5,196,076 3.1 Securities 1,039,536 1,111,391 -6.5 Loans, net of unearned income 4,305,158 4,059,936 6.0 Allowance for loan losses 52,346 52,758 -0.8 Goodwill and intangibles 263,861 246,884 6.9 Deposits and treasury management accounts (4) 4,676,568 4,476,423 4.5 Other short-term borrowings 147,439 145,063 1.6 Long-term debt 467,047 542,208 -13.9 Trust preferred securities 151,031 142,286 6.1 Shareholders' equity 540,469 514,363 5.1 Asset quality data Non-accrual loans $29,211 $24,636 18.6 Restructured loans 3,468 3,492 -0.7 Non-performing loans 32,679 28,128 16.2 Other real estate owned 8,052 5,948 35.4 Non-performing assets $40,731 $34,076 19.5 Net loan charge-offs $12,483 $11,578 7.8 Allowance for loan losses 52,806 52,575 0.4 Non-performing loans / total loans 0.75% 0.66% Non-performing assets / total assets 0.67% 0.57% Allowance for loan losses / total loans 1.22% 1.24% Allowance for loan losses / non-performing loans 161.59% 186.91% Net loan charge-offs (annualized) / average loans 0.29% 0.29% Balances at period end Total assets $6,088,021 $6,007,592 1.3 Earning assets 5,376,328 5,292,930 1.6 Securities 1,025,974 1,034,358 -0.8 Loans, net of unearned income 4,344,235 4,253,144 2.1 Goodwill and intangibles 261,559 266,337 -1.8 Deposits and treasury management accounts (4) 4,674,236 4,624,906 1.1 Other short-term borrowings 173,271 111,846 54.9 Long-term debt 481,366 519,890 -7.4 Trust preferred securities 151,031 151,031 0.0 Shareholders' equity 544,357 537,372 1.3 Capital ratios Equity/assets (period end) 8.94% 8.94% Leverage ratio 7.47% 7.28% Tangible equity/tangible assets (period end) 4.85% 4.72% F.N.B. CORPORATION (Unaudited) Percent (Dollars in thousands) 2007 2006 Variance 4th Qtr 4th Qtr 2007 - 2007 - Fourth Third Fourth 3rd Qtr 4th Qtr Average balances Quarter Quarter Quarter 2007 2006 Loans: Commercial $2,241,272 $2,208,612 $2,067,673 1.5 8.4 Direct installment 945,539 947,158 931,290 -0.2 1.5 Consumer LOC 247,913 244,975 255,806 1.2 -3.1 Residential mortgages 475,346 480,702 499,777 -1.1 -4.9 Indirect installment 432,477 440,686 466,986 -1.9 -7.4 Other 21,435 18,990 16,850 12.9 27.2 Total loans $4,363,982 $4,341,123 $4,238,382 0.5 3.0 Deposits: Non-interest bearing deposits $628,766 $642,197 $646,844 -2.1 -2.8 Savings and NOW 2,066,390 2,065,469 1,946,040 0.0 6.2 Certificates of deposit and other time deposits 1,725,646 1,739,083 1,782,184 -0.8 -3.2 Total deposits 4,420,802 4,446,749 4,375,068 -0.6 1.0 Treasury management accounts (4) 285,824 270,372 246,874 5.7 15.8 Total deposits and treasury management accounts (4) $4,706,626 $4,717,121 $4,621,942 -0.2 1.8 Balances at period end Loans: Commercial $2,232,860 $2,234,236 $2,111,752 -0.1 5.7 Direct installment 941,249 948,986 926,766 -0.8 1.6 Consumer LOC 251,100 245,627 254,054 2.2 -1.2 Residential mortgages 465,881 469,587 490,215 -0.8 -5.0 Indirect installment 427,663 440,812 461,214 -3.0 -7.3 Other 25,482 19,356 9,143 31.6 178.7 Total loans $4,344,235 $4,358,604 $4,253,144 -0.3 2.1 Deposits: Non-interest bearing deposits $626,141 $659,352 $654,617 -5.0 -4.3 Savings and NOW 2,037,160 2,090,065 1,944,707 -2.5 4.8 Certificates of deposit and other time deposits 1,734,383 1,734,767 1,773,518 0.0 -2.2 Total deposits 4,397,684 4,484,184 4,372,842 -1.9 0.6 Treasury management accounts (4) 276,552 254,156 252,064 8.8 9.7 Total deposits and treasury management accounts (4) $4,674,236 $4,738,340 $4,624,906 -1.4 1.1 F.N.B. CORPORATION (Unaudited) (Dollars in thousands) For the Year Ended December 31, Percent Average balances 2007 2006 Variance Loans: Commercial $2,182,237 $1,902,896 14.7 Direct installment 932,344 917,009 1.7 Consumer LOC 248,788 258,429 -3.7 Residential mortgages 482,900 496,394 -2.7 Indirect installment 439,196 475,459 -7.6 Other 19,693 9,749 102.0 Total loans $4,305,158 $4,059,936 6.0 Deposits: Non-interest bearing deposits $634,537 $649,191 -2.3 Savings and NOW 2,030,614 1,884,351 7.8 Certificates of deposit and other time deposits 1,744,691 1,729,836 0.9 Total deposits 4,409,842 4,263,378 3.4 Treasury management accounts (4) 266,726 213,045 25.2 Total deposits and treasury management accounts (4) $4,676,568 $4,476,423 4.5 Balances at period end Loans: Commercial $2,232,860 $2,111,752 5.7 Direct installment 941,249 926,766 1.6 Consumer LOC 251,100 254,054 -1.2 Residential mortgages 465,881 490,215 -5.0 Indirect installment 427,663 461,214 -7.3 Other 25,482 9,143 178.7 Total loans $4,344,235 $4,253,144 2.1 Deposits: Non-interest bearing deposits $626,141 $654,617 -4.3 Savings and NOW 2,037,160 1,944,707 4.8 Certificates of deposit and other time deposits 1,734,383 1,773,518 -2.2 Total deposits 4,397,684 4,372,842 0.6 Treasury management accounts (4) 276,552 252,064 9.7 Total deposits and treasury management accounts (4) $4,674,236 $4,624,906 1.1
