F.N.B. Corporation Reports Third Quarter 2009 Results

HERMITAGE, Pa., Oct. 22 /PRNewswire-FirstCall/ -- F.N.B. Corporation (NYSE: FNB) today reported financial results for the third quarter ended September 30, 2009. Net income available to common shareholders was $4.8 million, or $0.04 per diluted common share, compared to net income available to common shareholders of $9.1 million, or $0.10 per diluted common share, in the second quarter of 2009.

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Results for the third quarter of 2009 included $5.5 million in costs (after-tax basis) associated with F.N.B.'s redemption of the preferred stock it sold to the U.S. Treasury (UST) pursuant to the Capital Purchase Program (CPP). Results for the third quarter also included $3.3 million ($2.1 million on an after-tax basis) in non-cash other-than-temporary impairment charges primarily related to pooled trust preferred securities. These expenses reduced net income available to common shareholders for the third quarter of 2009 by $7.6 million or $0.07 per diluted common share.

"FNB continues to execute its organic growth strategy to take advantage of the opportunities created by the competitive disruption in our Pennsylvania markets," said Stephen J. Gurgovits, President and Chief Executive Officer of F.N.B. Corporation. "I am pleased to report that we are executing well. As a result of our ongoing customer calling program, increased marketing activities and successful advertising campaign, our growth demonstrates that we are capturing market share."

F.N.B. Corporation's performance ratios this quarter were as follows: return on average tangible common equity (non-GAAP measure) was 4.85%; return on average equity was 3.62%; return on average tangible assets (non-GAAP measure) was 0.56% and return on average assets was 0.47%. A reconciliation of GAAP measures to non-GAAP measures is included with the tables that accompany this press release.

Net Interest Income

Net interest income on a fully taxable equivalent basis for the third quarter of 2009 totaled $69.2 million, an increase of $2.4 million, or 14.0% annualized, over the second quarter of 2009. The improvement reflects a combination of a 5 basis point increase in the net interest margin, a 5.7% annualized increase in average earning assets and one additional day compared to the second quarter. The net interest margin equaled 3.78% for the third quarter of 2009, compared to 3.73% in the second quarter of 2009, which included a 3 basis point net benefit related to certain non-accrual loans.

Average loans in the third quarter of 2009 were essentially unchanged at $5.8 billion, compared to the prior quarter, reflecting growth in the Pennsylvania loan portfolio that was largely offset by reductions in average balances for the Florida loan portfolio. Based on period-end balances, total loans grew $70.3 million or 4.8% annualized since June 30, 2009, led by commercial loan growth of $44.7 million or 5.6% annualized. Changes in the consumer loan portfolio since June 30, 2009 reflected growth of $22.2 million or 23.6% annualized in consumer lines of credit that was partially offset by a decrease of $11.9 million or 4.7% annualized in direct installment loans given customer preferences in a low interest rate environment.

Mr. Gurgovits noted, "I am particularly impressed with our team's focused efforts in a challenging banking environment. Demonstrating our success in attracting commercial customers from our competitors, our middle market commercial lending team has generated over $250 million in new commitments this year."

"We also continue to demonstrate great success building our valuable core funding base, with strong growth in core transaction deposits and treasury management balances. Our aggressive marketing campaign in Pennsylvania is working very well as we continue to win new commercial and consumer banking relationships every day."

Average core transaction deposits increased $68.8 million or 6.8% annualized and average treasury management balances grew $31.0 million or 28.3% annualized in the third quarter of 2009, compared to the second quarter of 2009. Contributing to the more favorable mix of deposits, higher cost average time deposits decreased $67.4 million or 11.7% annualized in the third quarter of 2009 compared to the prior quarter as FNB continues to focus its strategy on building core transaction accounts.

Non-Interest Income

Non-interest income totaled $24.0 million in the third quarter of 2009, compared to $28.5 million in the second quarter of 2009. The lower non-interest income is primarily due to a $2.6 million increase in non-cash other-than-temporary impairment charges primarily related to pooled trust preferred securities.

The impairment losses recognized for the third quarter of 2009 totaled $3.3 million, compared to $0.7 million for the second quarter of 2009. The current quarter impairment charges were primarily related to three pooled trust preferred securities that experienced worse than previously projected collateral performance. The pooled trust preferred securities portfolio is comprised of 13 securities with an original cost of $41.3 million. To date, credit-related impairment charges of $12.5 million have been recorded on this portfolio, which have reduced the carrying value to $28.8 million as of September 30, 2009.

In looking at the other major components of non-interest income, wealth management revenue decreased $0.7 million or 14.2% in the third quarter of 2009, reflecting market conditions and the impact of the low level of interest rates on annuity sales. Additionally, compared to the second quarter of 2009, lower gains on sales of residential mortgage loans (down $0.5 million or 41.6%) and lower swap fee income (down $0.8 million or 77.7%; reported in other income) were partially offset by seasonally higher service charges (up $0.2 million or 4.4% annualized) and seasonally higher insurance commissions due to school district revenue received in the third quarter (up $0.1 million or 12.7% annualized).

Non-Interest Expense

Non-interest expense totaled $62.3 million in the third quarter of 2009, compared to $66.3 million in the second quarter of 2009, which is flat after considering the $4.0 million FDIC special assessment in the second quarter. The efficiency ratio was 65.0% in the third quarter of 2009, compared to 67.7% in the second quarter of 2009, reflecting the absence of last quarter's FDIC special assessment.

Credit Quality

"We continue to be pleased with the performance of our Pennsylvania and Regency loan portfolios at this point in the economic cycle," remarked Mr. Gurgovits. "The duration of the slow economic environment continues to be challenging for businesses and consumers throughout the country."

Non-performing loans and OREO as a percentage of total loans and OREO at September 30, 2009 increased 18 basis points to 2.62%, compared to 2.44% at June 30, 2009. Annualized net charge-offs equaled 0.68% of average loans for the third quarter of 2009, decreasing from 1.22% of average loans for the second quarter of 2009. At September 30, 2009, the ratio of the allowance for loan losses to total loans equaled 1.81%, compared to 1.72% at June 30, 2009, reflecting increased reserves for both the Florida and Pennsylvania loan portfolios. As a percentage of non-performing loans, the allowance for loan losses equaled 79.1% at September 30, 2009, compared to 81.0% at June 30, 2009. As a result of the above activity, the provision for loan losses totaled $16.5 million for the third quarter of 2009, which was $2.5 million higher than the second quarter of 2009.

The Pennsylvania loan portfolio totaled $5.4 billion at September 30, 2009 (92.6% of the total loan portfolio) and delivered credit quality metrics reflecting a slow economic environment characterized by an increasing level of non-performing loans. Pennsylvania non-performing loans and OREO totaled $69.5 million or 1.28% of total loans and OREO at September 30, 2009, compared to $60.2 million or 1.13% at June 30, 2009. Net loan charge-offs totaled $4.5 million or 0.33% annualized of average loans for the third quarter of 2009, slightly better than $4.9 million or 0.36% annualized of average loans for the second quarter of 2009.

The Florida loan portfolio totaled $271.6 million at September 30, 2009 (4.7% of the total loan portfolio) and delivered credit quality metrics reflecting a challenging economic environment and continued weakness in the Florida real estate market. Florida non-performing loans and OREO totaled $76.1 million or 27.2% of total loans and OREO at September 30, 2009, compared to $73.6 million or 26.1% at June 30, 2009. Net loan charge-offs totaled $4.1 million or 5.90% annualized of average loans for the third quarter of 2009, compared to $11.2 million or 15.60% annualized of average loans for the second quarter of 2009.

The Regency loan portfolio totaled $158.6 million at September 30, 2009 (2.7% of the total loan portfolio) and continued to deliver credit quality metrics reflecting a slow economic environment. Regency non-performing loans and OREO totaled $8.0 million or 5.02% of total loans and OREO at September 30, 2009, compared to $7.1 million or 4.51% at June 30, 2009. Annualized net loan charge-offs as a percentage of average loans improved 35 basis points to 3.64% for the third quarter of 2009.

Capital Position

The Corporation's capital ratios continue to exceed federal bank regulatory agency "well capitalized" thresholds. As of September 30, 2009, the Corporation's estimated total risk-based capital ratio was 13.1%, the estimated tier 1 risk-based capital ratio was 11.7% and the leverage capital ratio was 8.7%, which compares favorably to the same ratios as of December 31, 2008 of 11.1%, 9.7% and 7.3%, respectively.

In September 2009, F.N.B. fully redeemed all of the preferred stock it sold to the UST pursuant to the CPP. F.N.B. repaid the original $100.0 million investment without any conditions from regulators. The repayment of the CPP funds reduced the capital ratios compared to June 30, 2009, partially offsetting the benefit from the issuance of 24.15 million shares of common stock last quarter that raised $125.8 million in new common equity. At September 30, 2009, the tangible common equity to tangible assets ratio (non-GAAP measure) equaled 6.02%, up slightly from 5.95% at June 30, 2009, and the tangible book value per share (non-GAAP measure) equaled $4.24, compared to $4.25 at June 30, 2009.

Year-to-Date Results

For the nine months ended September 30, 2009, F.N.B. Corporation's net income available to common shareholders totaled $28.2 million, or $0.29 per diluted common share, compared to $54.5 million, or $0.70 per diluted common share, for the nine months ended September 30, 2008. For the 2009 year-to-date period, F.N.B.'s return on average tangible common equity (non-GAAP measure) totaled 10.37%, its return on average equity was 4.58%, its return on average tangible assets (non-GAAP measure) was 0.67% and its return on average assets was 0.57%.

Net interest income on a fully taxable equivalent basis totaled $201.6 million for the first nine months of 2009, an increase of $13.8 million or 7.3% over the same nine-month period of 2008, despite a 16 basis point decline in the net interest margin to 3.72%, compared to 3.88% in the same nine-month period of 2008. The narrower margin reflects the lower interest rate environment compared to last year. On a year-to-date basis, average earning assets increased 11.4% and average deposits and treasury management balances increased 16.2% with treasury management accounts increasing 27.7% and low-cost core transaction deposits growing 19.0%, compared to the same nine-month period of 2008. These increases reflect the benefit from acquisitions completed in 2008.

Non-interest income totaled $80.6 million for the first nine months of 2009, compared to $77.9 million for the same nine-month period of 2008, as service charges, insurance commissions, gain on sale of residential mortgage loans and other income increased 7.3%, 6.7%, 60.6% and 30.2%, respectively. Partially offsetting these increases were higher non-cash other-than-temporary impairment charges on securities and declines in securities commissions and fees, trust income and gains on sales of securities during the first nine months of 2009 of 6.8%, 2.5% and 39.9%, respectively, compared to the same period in 2008.

Non-interest expense totaled $189.6 million for the first nine months of 2009, an increase of 15.4% compared to the same nine-month period of 2008. Higher non-interest income and expense reflect the acquisitions of Omega and Iron and Glass in 2008, combined with higher FDIC insurance premiums and pension costs. F.N.B. Corporation's efficiency ratio was 65.3% for the first nine months of 2009, compared to 60.2% for the same nine-month period of 2008.

Conference Call

F.N.B. Corporation will host its quarterly conference call to discuss its financial results for the third quarter of 2009 on Friday, October 23, 2009, at 11:00 AM Eastern Time. The call can be accessed by dialing (888) 778-9067 or (913) 312-0662 for international callers; the confirmation number is 2533549.

A replay of the call will be available from 2:00 PM Eastern Time on the day of the call until midnight Eastern Time on Thursday, October 29, 2009. The replay can be accessed by dialing (888) 203-1112 or (719) 457-0820 for international callers; the confirmation number is 2533549. A transcript of the call will be posted to the "Shareholder and Investor Relations" section of F.N.B. Corporation's Web site at 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 $8.6 billion as of September 30, 2009. F.N.B. Corporation is a leading provider of commercial and retail banking, leasing, 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, Regency Finance Company and Bank Capital Services. It also operates consumer finance offices in Tennessee and loan production offices in Pennsylvania, Tennessee and Florida.

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) 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 revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

DATA SHEETS TO FOLLOW

F.N.B. CORPORATION ---------------------- (Unaudited) (Dollars in thousands, except per share data) 3rd Qtr 3rd Qtr 2009 - 2009 - 2009 2008 2nd Qtr 3rd Qtr ------------------ ---- 2009 2008 Statement of Third Second Third Percent Percent earnings Quarter Quarter Quarter Variance Variance Interest income $96,533 $97,034 $108,801 -0.5 -11.3 Interest expense 28,989 31,702 39,896 -8.6 -27.3 ------ ------ ------ Net interest income 67,544 65,332 68,905 3.4 -2.0 Taxable equivalent adjustment 1,644 1,490 1,569 10.3 4.8 ----- ----- ----- Net interest income (FTE) (1) 69,188 66,822 70,474 3.5 -1.8 Provision for loan losses 16,455 13,909 6,514 18.3 152.6 ------ ------ ----- Net interest income after provision (FTE) 52,733 52,913 63,960 -0.3 -17.6

Impairment losses on securities (14,234) (1,429) (25) n/m n/m Non-credit related losses on securities not expected to be sold (recognized in other comprehensive income) 10,943 689 0 n/m n/m ------ --- - Net impairment losses on securities (3,291) (740) (25) n/m n/m

Service charges 14,760 14,596 15,002 1.1 -1.6 Insurance commissions and fees 3,960 3,837 3,959 3.2 0.0 Securities commissions and fees 1,451 2,008 2,010 -27.7 -27.8 Trust income 2,856 3,013 3,215 -5.2 -11.2 Gain on sale of securities 154 66 34 135.2 349.5 Gain on sale of loans 666 1,139 477 -41.6 39.6 Other 3,406 4,531 3,561 -24.8 -4.4 ----- ----- ----- Total non-interest income 23,962 28,450 28,233 -15.8 -15.1

Salaries and employee benefits 31,377 31,617 29,707 -0.8 5.6 Occupancy and equipment 9,258 9,457 8,772 -2.1 5.6 Amortization of intangibles 1,732 1,813 2,162 -4.5 -19.9 Other 19,954 23,378 17,270 -14.6 15.5 ------ ------ ------ Total non-interest expense 62,321 66,265 57,911 -6.0 7.6

Income (loss) before income taxes 14,374 15,098 34,282 -4.8 -58.1 Taxable equivalent adjustment 1,644 1,490 1,569 10.3 4.8 Income taxes (benefit) 2,424 3,010 9,208 -19.5 -73.7 ----- ----- ----- Net income 10,306 10,598 23,505 -2.8 -56.2 Preferred stock dividends and discount amortization 5,497 1,469 0 n/m n/m ----- ----- - Net income available to common shareholders $4,809 $9,129 $23,505 -47.3 -79.5 ====== ====== =======

Earnings (loss) per common share Basic $0.04 $0.10 $0.27 -60.0 -85.2 Diluted $0.04 $0.10 $0.27 -60.0 -85.2

Performance ratios ------------------ Return on average equity 3.62% 4.05% 9.99% Return on average tangible equity (2) (6) 8.13% 9.91% 25.69% Return on average tangible common equity (2) (6) 4.85% 10.84% 25.69% Return on average assets 0.47% 0.49% 1.13% Return on average tangible assets (3) (6) 0.56% 0.59% 1.28% Net interest margin (FTE) (1) 3.78% 3.73% 3.97% Yield on earning assets (FTE) (1) 5.36% 5.50% 6.20% Cost of funds 1.76% 1.95% 2.50% Efficiency ratio (FTE)(1)(4) 65.04% 67.65% 56.48%

Common stock data ----------------- Average basic shares outstanding 113,571,703 93,387,226 87,291,008 21.6 30.1 Average diluted shares outstanding 113,869,785 93,596,520 87,575,153 21.7 30.0 Ending shares outstanding 113,990,095 113,965,669 89,634,163 0.0 27.2 Common book value per share $9.23 $9.26 $10.83 -0.3 -14.8 Tangible common book value per share (6) $4.24 $4.25 $4.39 -0.2 -3.5 Tangible common book value per share excluding AOCI(5) (6) $4.50 $4.55 $4.63 -1.2 -2.8 Dividend payout ratio (common) 285.20% 118.53% 91.24%

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands, except per share data)

For the Nine Months Ended September 30, Statement of ------------------- Percent earnings 2009 2008 Variance ------------ ---- ---- -------- Interest income $291,669 $302,623 -3.6 Interest expense 94,711 119,196 -20.5 ------ ------- Net interest income 196,958 183,427 7.4 Taxable equivalent adjustment 4,689 4,440 5.6 ----- ----- Net interest income (FTE)(1) 201,647 187,867 7.3 Provision for loan losses 40,878 21,073 94.0 ------ ------ Net interest income after provision (FTE) 160,769 166,794 -3.6

Impairment losses on securities (15,866) (491) n/m Non-credit related losses on securities not expected to be sold (recognized in other comprehensive income) 11,632 0 n/m ------ - Net impairment losses on securities (4,234) (491) n/m

Service charges 42,955 40,048 7.3 Insurance commissions and fees 12,878 12,064 6.7 Securities commissions and fees 5,247 5,628 -6.8 Trust income 8,786 9,014 -2.5 Gain on sale of securities 498 829 -39.9 Gain on sale of loans 2,341 1,458 60.6 Other 12,120 9,307 30.2 ------ ----- Total non- interest income 80,591 77,857 3.5

Salaries and employee benefits 95,096 87,283 9.0 Occupancy and equipment 28,806 24,831 16.0 Amortization of intangibles 5,360 4,454 20.4 Other 60,296 47,720 26.4 ------ ------ Total non- interest expense 189,558 164,288 15.4

Income (loss) before income taxes 51,802 80,363 -35.5 Taxable equivalent adjustment 4,689 4,440 5.6 Income taxes (benefit) 10,558 21,422 -50.7 ------ ------ Net income 36,555 54,501 -32.9 Preferred stock dividends and discount amortization 8,309 0 n/m ----- - Net income available to common shareholders $28,246 $54,501 -48.2 ======= =======

Earnings (loss) per common share Basic $0.29 $0.70 -58.6 Diluted $0.29 $0.70 -58.6

Performance ratios ------------------ Return on average equity 4.58% 9.04% Return on average tangible equity (2) (6) 10.83% 20.91% Return on average tangible common equity (2) (6) 10.37% 20.91% Return on average assets 0.57% 0.98% Return on average tangible assets (3) (6) 0.67% 1.09% Net interest margin (FTE) (1) 3.72% 3.88% Yield on earning assets (FTE) (1) 5.48% 6.34% Cost of funds 1.95% 2.75% Efficiency ratio (FTE) (1) (4) 65.26% 60.15%

Common stock data ----------------- Average basic shares outstanding 98,869,326 77,749,543 27.2 Average diluted shares outstanding 99,104,112 78,112,071 26.9 Ending shares outstanding 113,990,095 89,634,163 27.2 Common book value per share $9.23 $10.83 -14.8 Tangible common book value per share (6) $4.24 $4.39 -3.5 Tangible common book value per share excluding AOCI (5)(6) $4.50 $4.63 -2.8 Dividend payout ratio (common) 125.02% 104.07%

F.N.B. CORPORATION ------------------ (Unaudited) 3rd Qtr 3rd Qtr (Dollars in thousands) 2009 - 2009 - 2009 2008 2nd Qtr 3rd Qtr ----------------- ---- 2009 2008 Average Third Second Third Percent Percent balances Quarter Quarter Quarter Variance Variance --------- ------- ------- ------- -------- -------- Total assets $8,701,853 $8,604,059 $8,265,506 1.1 5.3 Earning assets 7,281,709 7,178,615 7,089,681 1.4 2.7 Securities 1,466,176 1,321,842 1,304,035 10.9 12.4 Short-term investments 1,520 47,906 18,687 -96.8 -91.9 Loans, net of unearned income 5,814,013 5,808,867 5,766,959 0.1 0.8 Allowance for loan losses 103,249 106,881 73,656 -3.4 40.2 Goodwill and intangibles 570,705 572,701 550,673 -0.3 3.6

Deposits and treasury management accounts (7) 6,740,656 6,708,316 6,381,969 0.5 5.6 Short-term borrowings 118,274 101,249 145,960 16.8 -19.0 Long-term debt 412,411 445,450 501,500 -7.4 -17.8 Trust preferred securities 204,962 205,131 205,637 -0.1 -0.3 Shareholders' equity - common 1,056,171 954,075 936,452 10.7 12.8 Shareholders' equity - preferred 72,727 95,389 0 -23.8 0.0

Asset quality data ------------------ Non-accrual loans $125,630 $117,013 $73,903 7.4 70.0 Restructured loans 8,282 5,743 3,189 44.2 159.7 ----- ----- ----- Non-performing loans 133,912 122,756 77,092 9.1 73.7 Other real estate owned 19,741 18,145 14,338 8.8 37.7 ------ ------ ------ Total non- performing loans and OREO 153,653 140,901 91,430 9.1 68.1 Non-performing investments(8) 5,758 7,768 0 -25.9 0.0 ----- ----- - Non-performing assets $159,411 $148,669 $91,430 7.2 74.4 ======== ======== =======

Net loan charge-offs $9,978 $17,621 $4,323 -43.4 130.8 Allowance for loan losses 105,892 99,415 74,755 6.5 41.7

Non-performing loans / total loans 2.29% 2.13% 1.31% Non-performing loans + OREO / total loans + OREO 2.62% 2.44% 1.55% Allowance for loan losses / total loans 1.81% 1.72% 1.27% Allowance for loan losses / non-performing loans 79.08% 80.99% 96.97% Net loan charge-offs (annualized) / average loans 0.68% 1.22% 0.30%

Balances at period end ---------------------- Total assets $8,595,872 $8,710,320 $8,457,351 -1.3 1.6 Earning assets 7,357,135 7,198,817 7,222,178 2.2 1.9 Securities 1,497,378 1,402,725 1,335,780 6.7 12.1 Short-term investments 3,293 2,276 3,641 44.7 -9.5 Loans, net of unearned income 5,837,402 5,767,109 5,876,041 1.2 -0.7 Goodwill and intangibles 569,579 571,666 577,318 -0.4 -1.3

Deposits and treasury management accounts (7) 6,737,098 6,725,629 6,525,953 0.2 3.2 Short-term borrowings 128,092 103,637 179,286 23.6 -28.6 Long-term debt 379,257 436,595 496,649 -13.1 -23.6 Trust preferred securities 204,880 205,049 205,555 -0.1 -0.3 Shareholders' equity - common 1,052,589 1,055,685 971,074 -0.3 8.4 Shareholders' equity - preferred 0 95,462 0 -100.0 0.0

Capital ratios -------------- Equity/assets (period end) 12.25% 13.22% 11.48% Leverage ratio 8.73% 10.11% 7.97% Tangible equity/ tangible assets (period end) (6) 6.02% 7.12% 5.00% Tangible common equity/ tangible assets (period end) (6) 6.02% 5.95% 5.00% Tangible common equity, excluding AOCI/tangible assets (period end) (5) (6) 6.39% 6.37% 5.26%

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands)

For the Nine Months Ended September 30, Average ------------------- Percent balances 2009 2008 Variance --------- ---- ---- -------- Total assets $8,580,797 $7,455,911 15.1 Earning assets 7,206,157 6,465,910 11.4 Securities 1,369,059 1,183,867 15.6 Short-term investments 21,199 23,653 -10.4 Loans, net of unearned income 5,815,899 5,258,391 10.6 Allowance for loan losses 105,681 65,129 62.3 Goodwill and intangibles 572,444 438,832 30.4

Deposits and treasury management accounts (7) 6,660,689 5,731,754 16.2 Short-term borrowings 108,919 148,215 -26.5 Long-term debt 444,087 499,671 -11.1 Trust preferred securities 205,130 187,558 9.4 Shareholders' equity - common 981,647 805,540 21.9 Shareholders' equity - preferred 85,035 0 0.0

Asset quality data ------------------ Non-accrual loans $125,630 $73,903 70.0 Restructured loans 8,282 3,189 159.7 ----- ----- Non-performing loans 133,912 77,092 73.7 Other real estate owned 19,741 14,338 37.7 ------ ------ Total non- performing loans and OREO 153,653 91,430 68.1 Non-performing investments(8) 5,758 0 0.0 ----- - Non-performing assets $159,411 $91,430 74.4 ======== =======

Net loan charge-offs $39,731 $11,448 247.1 Allowance for loan losses 105,892 74,755 41.7

Non-performing loans / total loans 2.29% 1.31% Non-performing loans + OREO / total loans + OREO 2.62% 1.55% Allowance for loan losses / total loans 1.81% 1.27% Allowance for loan losses / non-performing loans 79.08% 96.97% Net loan charge-offs (annualized) / average loans 0.91% 0.29%

Balances at period end ---------------------- Total assets $8,595,872 $8,457,351 1.6 Earning assets 7,357,135 7,222,178 1.9 Securities 1,497,378 1,335,780 12.1 Short-term investments 3,293 3,641 -9.5 Loans, net of unearned income 5,837,402 5,876,041 -0.7 Goodwill and intangibles 569,579 577,318 -1.3

Deposits and treasury management accounts (7) 6,737,098 6,525,953 3.2 Short-term borrowings 128,092 179,286 -28.6 Long-term debt 379,257 496,649 -23.6 Trust preferred securities 204,880 205,555 -0.3 Shareholders' equity - common 1,052,589 971,074 8.4 Shareholders' equity - preferred 0 0 0.0

Capital ratios -------------- Equity/assets (period end) 12.25% 11.48% Leverage ratio 8.73% 7.97% Tangible equity/ tangible assets (period end) (6) 6.02% 5.00% Tangible common equity/ tangible assets (period end) (6) 6.02% 5.00% Tangible common equity, excluding AOCI/tangible assets (period end) (5)(6) 6.39% 5.26%

F.N.B. CORPORATION ------------------ 3rd Qtr 3rd Qtr (Unaudited) 2009 - 2009 - (Dollars in thousands) 2009 2008 2nd Qtr 3rd Qtr ---------------- ---- 2009 2008 Third Second Third Percent Percent Average balances Quarter Quarter Quarter Variance Variance ---------------- ------- ------- ------- -------- -------- Loans: Commercial $3,195,950 $3,193,128 $3,142,018 0.1 1.7 Direct installment 997,319 1,015,464 1,099,102 -1.8 -9.3 Residential mortgages 613,375 623,973 655,719 -1.7 -6.5 Indirect installment 544,002 537,886 493,648 1.1 10.2 Consumer LOC 383,207 364,069 314,992 5.3 21.7 Other 80,160 74,347 61,480 7.8 30.4 ------ ------ ------ Total loans $5,814,013 $5,808,867 $5,766,959 0.1 0.8 ========== ========== ==========

Deposits: Non-interest bearing deposits $951,112 $934,366 $907,146 1.8 4.8 Savings and NOW 3,101,168 3,049,155 2,826,205 1.7 9.7 Certificates of deposit and other time deposits 2,223,126 2,290,536 2,250,043 -2.9 -1.2 --------- --------- --------- Total deposits 6,275,406 6,274,057 5,983,394 0.0 4.9 Treasury management accounts (7) 465,250 434,259 398,575 7.1 16.7 ------- ------- ------- Total deposits and treasury management accounts(7) $6,740,656 $6,708,316 $6,381,969 0.5 5.6 ========== ========== ==========

Balances at period end ---------------------- Loans: Commercial $3,226,720 $3,182,045 $3,228,768 1.4 -0.1 Direct installment 993,863 1,005,736 1,095,115 -1.2 -9.2 Residential mortgages 594,586 590,111 647,259 0.8 -8.1 Indirect installment 544,579 541,168 514,007 0.6 5.9 Consumer LOC 395,366 373,161 325,284 6.0 21.5 Other 82,288 74,888 65,608 9.9 25.4 ------ ------ ------ Total loans $5,837,402 $5,767,109 $5,876,041 1.2 -0.7 ========== ========== ==========

Deposits: Non-interest bearing deposits $972,859 $948,925 $939,561 2.5 3.5 Savings and NOW 3,072,601 3,077,091 2,888,899 -0.1 6.4 Certificates of deposit and other time deposits 2,213,323 2,262,677 2,313,397 -2.2 -4.3 --------- --------- --------- Total deposits 6,258,783 6,288,693 6,141,857 -0.5 1.9 Treasury management accounts (7) 478,315 436,936 384,096 9.5 24.5 ------- ------- ------- Total deposits and treasury management accounts(7) $6,737,098 $6,725,629 $6,525,953 0.2 3.2

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) For the Nine Months Ended September 30, ------------------- Percent Average balances 2009 2008 Variance ---------------- ---- ---- -------- Loans: Commercial $3,188,766 $2,828,570 12.7 Direct installment 1,020,690 1,044,462 -2.3 Residential mortgages 627,642 592,771 5.9 Indirect installment 538,764 456,194 18.1 Consumer LOC 365,078 288,945 26.3 Other 74,959 47,449 58.0 ------ ------ Total loans $5,815,899 $5,258,391 10.6 ========== ==========

Deposits: Non-interest bearing deposits $928,238 $793,836 16.9 Savings and NOW 3,005,164 2,512,017 19.6 Certificates of deposit and other time deposits 2,276,079 2,072,524 9.8 --------- --------- Total deposits 6,209,481 5,378,377 15.5 Treasury management accounts (7) 451,208 353,377 27.7 ------- ------- Total deposits and treasury management accounts(7) $6,660,689 $5,731,754 16.2 ========== ==========

Balances at period end ---------------------- Loans: Commercial $3,226,720 $3,228,768 -0.1 Direct installment 993,863 1,095,115 -9.2 Residential mortgages 594,586 647,259 -8.1 Indirect installment 544,579 514,007 5.9 Consumer LOC 395,366 325,284 21.5 Other 82,288 65,608 25.4 ------ ------ Total loans $5,837,402 $5,876,041 -0.7 ========== ==========

Deposits: Non-interest bearing deposits $972,859 $939,561 3.5 Savings and NOW 3,072,601 2,888,899 6.4 Certificates of deposit and other time deposits 2,213,323 2,313,397 -4.3 --------- --------- Total deposits 6,258,783 6,141,857 1.9 Treasury management accounts (7) 478,315 384,096 24.5 ------- ------- Total deposits and treasury management accounts(7) $6,737,098 $6,525,953 3.2

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) Third Quarter 2009 ------------------ Bank - PA Bank - FL Regency Total --------- --------- ------- ----- Asset quality data, by geographic region --------------------- Non-accrual loans $55,454 $68,073 $2,103 $125,630 Restructured loans 3,650 0 4,632 8,282 ----- - ----- ----- Non-performing loans 59,104 68,073 6,735 133,912 Other real estate owned 10,380 8,067 1,294 19,741 ------ ----- ----- ------ Total non- performing loans and OREO 69,484 76,140 8,029 153,653 Non-performing investments (8) 5,758 0 0 5,758 ----- - - ----- Non-performing assets $75,242 $76,140 $8,029 $159,411 ======= ======= ====== ========

Net loan charge-offs $4,469 $4,059 $1,450 $9,978 Provision for loan losses 7,555 7,379 1,521 16,455 Allowance for loan losses 72,764 26,627 6,501 105,892 Loans, net of unearned income 5,407,215 271,634 158,553 5,837,402

Non-performing loans / total loans 1.09% 25.06% 4.25% 2.29% Non-performing loans + OREO / total loans + OREO 1.28% 27.22% 5.02% 2.62% Allowance for loan losses / total loans 1.35% 9.80% 4.10% 1.81% Allowance for loan losses / non-performing loans 123.11% 39.12% 96.53% 79.08% Net loan charge-offs (annualized) / average loans 0.33% 5.90% 3.64% 0.68%

Loans 30 - 89 days past due $43,140 $2,700 $2,853 $48,693 Loans 90+ days past due 10,827 0 2,298 13,125 Non-accrual loans 55,454 68,073 2,103 125,630 ------ ------ ----- ------- Total past due and non- accrual loans $109,421 $70,773 $7,254 $187,448 ======== ======= ====== ========

Total past due and non- accrual loans/ total loans 2.02% 26.05% 4.58% 3.21%

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands) Second Quarter 2009 ------------------- Bank - PA Bank - FL Regency Total --------- --------- ------- ----- Asset quality data, by geographic region -------------------- Non-accrual loans $49,629 $65,597 $1,787 $117,013 Restructured loans 1,484 0 4,259 5,743 ----- - ----- ----- Non-performing loans 51,113 65,597 6,046 122,756 Other real estate owned 9,106 7,967 1,073 18,145 ----- ----- ----- ------ Total non- performing loans and OREO 60,219 73,564 7,119 140,901 Non-performing investments (8) 7,630 0 0 7,630 ----- - - ----- Non-performing assets $67,849 $73,564 $7,119 $148,531 ======= ======= ====== ========

Net loan charge-offs $4,880 $11,206 $1,535 $17,621 Provision for loan losses 4,970 7,238 1,701 13,909 Allowance for loan losses 69,678 23,307 6,430 99,415 Loans, net of unearned income 5,335,823 274,453 156,833 5,767,109

Non-performing loans / total loans 0.96% 23.90% 3.86% 2.13% Non-performing loans + OREO / total loans + OREO 1.13% 26.05% 4.51% 2.44% Allowance for loan losses / total loans 1.31% 8.49% 4.10% 1.72% Allowance for loan losses / non-performing loans 136.32% 35.53% 106.35% 80.99% Net loan charge-offs (annualized) / average loans 0.36% 15.60% 3.99% 1.22%

Loans 30 - 89 days past due $45,822 $0 $2,910 $48,732 Loans 90+ days past due 9,775 0 2,257 12,032 Non-accrual loans 49,629 65,597 1,787 117,013 ------ ------ ----- ------- Total past due and non- accrual loans $105,226 $65,597 $6,954 $177,777 ======== ======= ====== ========

Total past due and non- accrual loans/ total loans 1.97% 23.90% 4.43% 3.08%

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES The following non-GAAP financial measures used by the Corporation provide information useful to investors in understanding the Corporation's operating performance and trends, and facilitate comparisons with the performance of the Corporation's peers. The non-GAAP financial measures used by the Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. The following tables summarize the non-GAAP financial measures derived from amounts reported in the Corporation's financial statements.

2009 2008 ------------------- ---- Third Second Third Quarter Quarter Quarter ------- ------- ------- Return on average tangible equity (2): -------------------- Net income (annualized) $40,887 $42,508 $93,507 Amortization of intangibles, net of tax (annualized) 4,467 4,727 5,591 ----- ----- ----- 45,354 47,235 99,098

Average total shareholders' equity 1,128,898 1,049,464 936,452 Less: Average intangibles (570,705) (572,701) (550,673) -------- -------- -------- 558,192 476,764 385,779

Return on average tangible equity (2) 8.13% 9.91% 25.69% ==== ==== =====

Return on average tangible common equity (2): --------------------------------------------- Net income available to common shareholders (annualized) $19,081 $36,616 $93,507 Amortization of intangibles, net of tax (annualized) 4,467 4,727 5,591 ----- ----- ----- 23,548 41,343 99,098

Average total shareholders' equity 1,128,898 1,049,464 936,452 Less: Average preferred shareholders' equity (72,727) (95,389) 0 Less: Average intangibles (570,705) (572,701) (550,673) -------- -------- -------- 485,466 381,375 385,779

Return on average tangible common equity (2) 4.85% 10.84% 25.69% ==== ===== =====

Return on average tangible assets (3): -------------------------------------- Net income (annualized) $40,887 $42,508 $93,507 Amortization of intangibles, net of tax (annualized) 4,467 4,727 5,591 ----- ----- ----- 45,354 47,235 99,098

Average total assets 8,701,853 8,604,059 8,265,506 Less: Average intangibles (570,705) (572,701) (550,673) -------- -------- -------- 8,131,147 8,031,358 7,714,833

Return on average tangible assets (3) 0.56% 0.59% 1.28% ==== ==== ====

Tangible common book value per share: ------------------------------------- Total shareholders' equity $1,052,589 $1,151,147 $971,074 Less: preferred shareholders' equity 0 (95,462) 0 Less: intangibles (569,579) (571,666) (577,318) -------- -------- -------- 483,010 484,019 393,755

Ending shares outstanding 113,990,095 113,965,669 89,634,163

Tangible common book value per share $4.24 $4.25 $4.39 ===== ===== =====

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands)

For the Nine Months Ended September 30, ------------------- 2009 2008 ---- ---- Return on average tangible equity (2): -------------------------------------- Net income (annualized) $48,874 $72,800 Amortization of intangibles, net of tax (annualized) 4,658 3,867 ----- ----- 53,532 76,667

Average total shareholders' equity 1,066,683 805,540 Less: Average intangibles (572,444) (438,832) -------- -------- 494,239 366,708

Return on average tangible equity (2) 10.83% 20.91% ===== =====

Return on average tangible common equity (2): --------------------------------- Net income available to common shareholders (annualized) $37,764 $72,800 Amortization of intangibles, net of tax (annualized) 4,658 3,867 ----- ----- 42,423 76,667

Average total shareholders' equity 1,066,683 805,540 Less: Average preferred shareholders' equity (85,035) 0 Less: Average intangibles (572,444) (438,832) -------- -------- 409,203 366,708

Return on average tangible common equity (2) 10.37% 20.91% ===== =====

Return on average tangible assets (3): -------------------------------------- Net income (annualized) $48,874 $72,800 Amortization of intangibles, net of tax (annualized) 4,658 3,867 ----- ----- 53,532 76,667

Average total assets 8,580,797 7,455,911 Less: Average intangibles (572,444) (438,832) -------- -------- 8,008,353 7,017,079

Return on average tangible assets (3) 0.67% 1.09% ==== ====

Tangible common book value per share: ------------------------------------- Total shareholders' equity $1,052,589 $971,074 Less: preferred shareholders' equity 0 0 Less: intangibles (569,579) (577,318) -------- -------- 483,010 393,755

Ending shares outstanding 113,990,095 89,634,163

Tangible common book value per share $4.24 $4.39 ===== =====

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands)

2009 2008 ------------------- ---- Third Second Third Quarter Quarter Quarter ------- ------- ------- Tangible common book value per share excluding AOCI (5): ---------------- Total shareholders' equity $1,052,589 $1,151,147 $971,074 Less: preferred shareholders' equity 0 (95,462) 0 Less: intangibles (569,579) (571,666) (577,318) Less: AOCI 29,529 34,748 20,934 ------ ------ ------ 512,539 518,767 414,689

Ending shares outstanding 113,990,095 113,965,669 89,634,163

Tangible common book value per share excluding AOCI (5) $4.50 $4.55 $4.63 ===== ===== =====

Tangible equity/ tangible assets (period end): ----------------- Total shareholders' equity $1,052,589 $1,151,147 $971,074 Less: intangibles (569,579) (571,666) (577,318) -------- -------- -------- 483,010 579,481 393,755

Total assets 8,595,872 8,710,320 8,457,351 Less: intangibles (569,579) (571,666) (577,318) -------- -------- -------- 8,026,293 8,138,654 7,880,033

Tangible equity/ tangible assets (period end) 6.02% 7.12% 5.00% ==== ==== ====

Tangible common equity/tangible assets (period end): ------------------- Total shareholders' equity $1,052,589 $1,151,147 $971,074 Less: preferred shareholders' equity 0 (95,462) 0 Less: intangibles (569,579) (571,666) (577,318) -------- -------- -------- 483,010 484,019 393,755

Total assets 8,595,872 8,710,320 8,457,351 Less: intangibles (569,579) (571,666) (577,318) -------- -------- -------- 8,026,293 8,138,654 7,880,033

Tangible common equity/ tangible assets (period end) 6.02% 5.95% 5.00% ==== ==== ====

Tangible common equity, excluding AOCI/tangible assets (period end) (5): ---------------- Total shareholders' equity $1,052,589 $1,151,147 $971,074 Less: preferred shareholders' equity 0 (95,462) 0 Less: intangibles (569,579) (571,666) (577,318) Less: AOCI 29,529 34,748 20,934 ------ ------ ------ 512,539 518,767 414,689

Total assets 8,595,872 8,710,320 8,457,351 Less: intangibles (569,579) (571,666) (577,318) -------- -------- -------- 8,026,293 8,138,654 7,880,033

Tangible common equity, excluding AOCI/tangible assets (period end) (5) 6.39% 6.37% 5.26% ==== ==== ====

F.N.B. CORPORATION ------------------ (Unaudited) (Dollars in thousands)

For the Nine Months Ended September 30, ------------------- 2009 2008 ---- ---- Tangible common book value per share excluding AOCI (5): ----------------- Total shareholders' equity $1,052,589 $971,074 Less: preferred shareholders' equity 0 0 Less: intangibles (569,579) (577,318) Less: AOCI 29,529 20,934 ------ ------ 512,539 414,689

Ending shares outstanding 113,990,095 89,634,163

Tangible common book value per share excluding AOCI (5) $4.50 $4.63 ===== =====

Tangible equity/ tangible assets (period end): ----------------- Total shareholders' equity $1,052,589 $971,074 Less: intangibles (569,579) (577,318) -------- -------- 483,010 393,755

Total assets 8,595,872 8,457,351 Less: intangibles (569,579) (577,318) -------- -------- 8,026,293 7,880,033

Tangible equity/ tangible assets (period end) 6.02% 5.00% ==== ====

Tangible common equity/tangible assets (period end): ---------------- Total shareholders' equity $1,052,589 $971,074 Less: preferred shareholders' equity 0 0 Less: intangibles (569,579) (577,318) -------- -------- 483,010 393,755

Total assets 8,595,872 8,457,351 Less: intangibles (569,579) (577,318) -------- -------- 8,026,293 7,880,033

Tangible common equity/ tangible assets (period end) 6.02% 5.00% ==== ====

Tangible common equity, excluding AOCI/tangible assets (period end) (5): ----------------- Total shareholders' equity $1,052,589 $971,074 Less: preferred shareholders' equity 0 0 Less: intangibles (569,579) (577,318) Less: AOCI 29,529 20,934 ------ ------ 512,539 414,689

Total assets 8,595,872 8,457,351 Less: intangibles (569,579) (577,318) -------- -------- 8,026,293 7,880,033

Tangible common equity, excluding AOCI/tangible assets (period end) (5) 6.39% 5.26% ==== ====

(1) Net interest income is also presented on a fully taxable equivalent (FTE) basis, as the Corporation believes this non-GAAP measure is the preferred industry measurement for this item. (2) Return on average tangible equity (common equity) is calculated by dividing net income less amortization of intangibles by average equity (common equity) less average intangibles. (3) Return on average tangible assets is calculated by dividing net income less amortization of intangibles by average assets less average intangibles. (4) 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. (5) Accumulated other comprehensive income (AOCI) is comprised of unrealized losses on securities, non-credit impairment losses on other-than-temporarily impaired securities and unrecognized pension and postretirement obligations. (6) See non-GAAP financial measures for additional information relating to the calculation of this item. (7) Treasury management accounts are included in short-term borrowings on the balance sheet. (8) The non-performing investments at both June 30, 2009 and March 31, 2009 include $0.1 million at a non-banking affiliate of the Corporation. (9) Certain prior period amounts have been reclassified to conform to the current period presentation. SOURCE F.N.B. Corporation