FNB Corp. Announces Third Quarter Earnings and Increase in Stock Buyback Authorization.Business Editors ASHEBORO, N.C.--(BUSINESS WIRE)--Oct. 17, 2001 FNB FNB First National Bank FNB Food Not Bombs FNB Food and Nutrition Board (Institute of Medicine, National Academy of Sciences) FNB Food and Beverage (industry) FNB Front Nouveau de Belgique Corp. (Nasdaq: FNBN), the holding company for First National Bank and Trust Company, today announced its results for the third quarter of 2001. Net income for the third quarter increased 11.4% to $1,720,000, or $.34 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $1,544,000, or $.30 per diluted share, for the same period of 2000. For the first nine months of 2001, earnings amounted to $5,000,000, or $.97 per diluted share, compared to $2,050,000, or $.40 per diluted share, for the same period last year. The results for the first nine months of 2000 include merger-related charges incurred in the 2000 second quarter of $3,246,000 on a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern basis ($2,338,000, or $.46 per diluted share, after tax) associated with the April, 2000 acquisition of Carolina Fincorp, Inc. As of September 30, 2001, total assets were $584,899,000, loans were $395,635,000 and deposits were $479,616,000. On an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, return on average assets for the first nine months of 2001 was 1.15%, and return on average equity was 11.52%. In his letter to shareholders, FNB Chairman and President Michael C. Miller reported, "The increase in earnings in the third quarter and first nine months of 2001, as compared to the same periods of 2000 (excluding the effects of merger-related charges), was primarily attributable to an increase in noninterest income that significantly exceeded the increase in noninterest expense. "While the level of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin has increased in the first nine months of 2001 compared to the same period of 2000, net interest income has been reduced by the decline in interest rates, including eight reductions in the prime rate totaling 3.50% in 2001. This decline in rates has caused the average yield on earning assets to decrease at a faster pace than the average rate paid on deposits. Significant progress has been made in lowering the cost of deposits, such that the net yield on earning assets during the third quarter of 2001 exceeded the net yield recorded for the first nine months of 2001. Additionally, net interest income has been impacted by balance sheet restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). efforts that we had previously reported, including the sale of lower-yielding mortgage loans and redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of those funds to other loan and investment opportunities in the fourth quarter of 2000 and first quarter of 2001. These restructuring efforts improved our earnings position and our sensitivity to rate fluctuations. The sale of mortgage loans and subsequent redeployment of a portion of the proceeds into bank owned life insurance reduced the level of interest income. Concurrently, noninterest income for the third quarter and first nine months of 2001 have been increased by $161,000 and $477,000, respectively, through the recording of non-taxable income related to the bank owned life insurance. Noninterest income in the 2001 third quarter has also benefited from brisk Brisk as a proper name may refer to:
An extension and/or increase in amount of existing debt. activity, which created gains of $235,000 on the sale of mortgage loans compared to $27,000 in the 2000 third quarter. Gains on the sales of loans in the first nine months of 2001 amounted to $664,000 compared to $49,000 in the same period of 2000. The nominal increase in the level of noninterest expense in 2001 reflects the successful implementation of synergies following the merger with Carolina Fincorp, Inc." In addition, effective immediately, the Board of Directors has increased the maximum number of shares of FNB Corp. stock that can be repurchased under a buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program previously announced on May 30, 2001 from 250,000 to 500,000 shares, or approximately 10% of the outstanding shares. Such repurchases may be made from time to time in the open market or in privately negotiated transactions. A total of 171,890 shares have been repurchased under this buyback program through September 30, 2001. FNB Corp. is the bank holding company for First National Bank and Trust Company, which operates seventeen offices in Chatham, Montgomery, Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. , Randolph, Richmond and Scotland counties Scotland County is the name of two counties in the United States:
Area, 52,586 sq mi (136,198 sq km). Pop. . First National Bank and Trust offers a complete line of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , including loan, deposit, trust and investment management services. Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the banking is available at www.fnbnc.com. Deposits are insured by the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. . This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such statements are subject to certain factors which may cause the company's results to vary from those expected, including the risks set forth from time to time in the company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The company undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that arise after the date hereof.
FNB Corp. and Subsidiary
CONSOLIDATED FINANCIAL INFORMATION
(In thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ------------------
2001 2000 (1) 2001 2000 (1)
--------- --------- -------- ---------
SUMMARY OF OPERATIONS
Interest income:
Loans $ 7,807 $ 8,885 $ 24,411 $ 25,174
Investment securities:
Taxable income 2,202 1,579 6,171 4,710
Non-taxable income 235 242 716 735
Other 25 28 167 259
--------- --------- --------- --------
Total interest income 10,269 10,734 31,465 30,878
Interest expense 5,015 5,445 16,349 15,090
--------- --------- --------- --------
Net interest income 5,254 5,289 15,116 15,788
Provision for loan losses 205 160 490 1,152
--------- --------- --------- --------
Net interest income after
provision for loan losses 5,049 5,129 14,626 14,636
Noninterest income 1,453 1,070 4,367 3,310
Merger related expenses - - - 2,796
Other noninterest expense 4,097 3,957 12,007 11,991
--------- --------- --------- --------
Income before income taxes 2,405 2,242 6,986 3,159
Income taxes 685 698 1,986 1,109
--------- --------- --------- --------
Net income $ 1,720 $ 1,544 $ 5,000 $ 2,050
========= ========= ========= ========
Net income, excluding
merger-related charges (2) $ 1,720 $ 1,544 $ 5,000 $ 4,388
========= ========= ========= ========
Per share data:
Net income:
As reported:
Basic $ .34 $ .31 $ .99 $ .41
Diluted .34 .30 .97 .40
Excluding merger-related
charges (2):
Basic .34 .31 .99 .87
Diluted .34 .30 .97 .86
Cash dividends declared .12 .12 .36 .36
September 30,
------------------ December 31,
2001 2000 (1) 2000
-------- -------- -------------
BALANCE SHEET INFORMATION
Total assets $584,899 $548,135 $565,639
Cash and due from banks 14,092 12,926 14,108
Investment securities 145,093 120,606 132,384
Loans 395,635 400,066 395,737
Other earning assets 5,852 153 94
Deposits 479,616 460,503 472,448
Other interest-bearing liabilities 38,879 28,265 30,951
Shareholders' equity 58,589 53,300 55,122
Per share data:
Book value $ 11.93 $ 10.55 $ 10.89
Closing market price 15.50 11.38 12.06
NOTES: (1) Financial data as of and for the period ended September 30, 2000 has been restated to reflect the merger with Carolina Fincorp, Inc. which became effective on April 10, 2000 and was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . Cash dividends declared represent FNB historical data. (2) Merger-related charges included merger-related expenses and approximately $450,000 of provision for loan losses to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. the credit risk methodologies of FNB Corp. and Carolina Fincorp, Inc. FNB Corp. is the holding company for First National Bank and Trust Company. FNB Corp. stock is traded on the NASDAQ National Market System under the symbol "FNBN". Primary market makers for FNB Corp. stock are Scott & Stringfellow, IJL IJL International Journal of Lexicography (Oxford University Press) IJL It's Just Lunch (dating service for professionals) IJL Intel Jpeg Library Wachovia, Trident Securities and Sandler O'Neill & Partners. |
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