9. F.N.B. Corporation
of Hermitage, Pa. closed at $9.56 Wednesday, for a year-to-date return of 49%, as the company used opportunistic deals to expand its banking footprint in the East. Based on a quarterly payout of 12 cents, the shares had a dividend yield of 5.02%.
The company has an agreement in place to acquire
of Clarks Summit, Pa. on December 31 for about $67.7 million in cash and stock, with the target company's shareholders approving the sale on December 3. As of September 30, Comm Bancorp had $653 million in total assets and 15 branches in northeastern Pennsylvania.
"The demographics in Kentucky will prove suitable for continued business growth," F.N.B. CEO Stephen Gurgovits said in a statement.
Third-quarter net income was $17.2 million, or 15 cents a share, improving from net income to common shareholders of $4.8 million, or 4 cents a share, when F.N.B paid $5.5 million in costs related to its full repayment of $100 million in TARP money and booked impairment charges of $3.3 million on its investments in pooled trust-preferred securities.
Earnings performance was also boosted by a provision for loan losses of $12.3 million, declining from $16.35 million during the third quarter of 2009. Loan loss reserves were still increasing, as the third-quarter provision exceeded net charge-offs of $937 million.
F.N.B.'s third-quarter net interest margin was 3.78%, improving from 3.66% a year earlier, which the company said reflected "lower deposit and borrowing costs driven by an improved funding mix in a low interest rate environment partially offset by lower yields on earning assets."
Total assets were $9 billion as of September 30, increasing 5% over the previous year. The nonperforming assets ratio was 1.96% as of September 30. The third-quarter net charge-off ratio was a relatively low 0.65% and below 1% for three consecutive quarters. Loan loss reserves covered 1.94% of total loans as of September 30, far ahead of the annualized charge-off pace.
The company's Tier 1 leverage ratio was 12.88% and its total risk-based capital ratio was 12.88% as of September 30. The tangible common equity ratio was 5.96% according to SNL Financial.
The shares trade for 2.2 times tangible book value according to SNL Financial, and 13.3 times the consensus earnings estimate for 2011 of 72 cents a share. The forward P/E drops to 11.1, based on the 2012 consensus earnings estimate of 86 cents a share.
Out of nine analysts covering F.N.B. Corporation, only one rates the share a buy, while the rest recommend investors hold the shares.