FNB Financial Services Corporation Announces Core Earnings Increase.GREENSBORO Greensboro, city (1990 pop. 183,521), seat of Guilford co., N central N.C.; inc. 1829. The city is a financial, insurance, and distribution center for the region. , N.C. -- 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 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. Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FNBF) ("FNB"), parent of FNB Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: 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 of $0.29 and $0.58, respectively. FNB earned $2.51 million in the second quarter of 2004 and $4.41 for the first six months a year ago. Excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $548,000 from the sale of a banking operation in the second quarter of 2004, quarterly earnings and year to date earnings for 2005 increased 8.7% and 8.2%, respectively. FNB's second quarter 2005 results produced 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. return on average assets of 0.90% and an annualized return on average equity of 11.87%, compared with prior year results of 1.27% and 14.94%, respectively. "From an operating standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the , we are pleased with our results," noted Ernest Er´nest n. 1. See Earnest. J. Sewell Sew·ell , Anna 1820-1878. British writer of the children's classic Black Beauty (1877). , Vice Chairman, President and Chief Executive Officer. "Our core banking business is performing very well, we have experienced bankers in key markets, and we continue to build a loyal base of satisfied customers in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). ." Interest income was $15.06 million and $10.44 million for the three months ended June June: see month. 30, 2005 and 2004, respectively. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, interest income amounted to $28.44 million in 2005 and $20.88 million in 2004. Interest expense totaled $5.98 million in the 2005 second quarter, an increase of $2.58 million from one year earlier. Interest expense on deposits was $5.25 million in the current quarter, compared to $2.97 million for the same quarter a year ago. The current rising interest rate environment, combined with a 24.7% increase in average interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid deposits over the second quarter of 2004, is the principal source of this increase in deposit interest expense. FNB recorded provisions for credit losses of $638,000 and $272,000 for the three months ended June 30, 2005 and 2004, respectively. The increase in the provision is primarily due to the significant growth in the loan portfolio. Noninterest income totaled $1.82 million in the second quarter of 2005, compared with $2.60 million for the same period a year ago. During the second quarter of 2004, FNB disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of its Richlands Richlands may refer to:
pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $825,000. Noninterest expense totaled $7.05 million for the second quarter of 2005, compared with $5.59 million for the same period in 2004. Expense items significantly contributing to this increase include personnel expense, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment expense, and other items related to the continued growth and expansion of the company. Pressley Ridgill, President of FNB Southeast, commented: "We are poised to join the select group of community banks with $1 billion in assets. FNB's assets topped $979 million at the end of the second quarter and brought this milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. within reach." As of June 30, 2005 assets were $979.4 million, a $114.1 million, or 13.2%, increase during the first six months of 2005. Outstanding loans totaled $763.3 million at the end of the current quarter compared to $663.4 million at December December: see month. 31, 2004. Net credit losses for the second quarter of 2005 amounted to $102,000, or 0.06% of average outstanding loans on an annualized basis, a decrease from 0.20% recorded in the 2004 second quarter. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. continue to trend downward, declining 17.5% in the 2005 second quarter, compared to a year ago. The allowance for credit losses to outstanding loans was 1.10% at June 30, 2005, compared to 1.20% one year earlier. FNB recorded a fraud loss of $250,000 for the quarter ended June 30, 2005, which represents the deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). amount under FNB's blanket bond Blanket Bond Insurance coverage carried by brokerages, investment bankers, and other financial institutions to protect them against losses due to employee dishonesty. Notes: policy. The loss reported is a result of some improper
Deposits at June 30, 2005 were $811.4 million, compared with $638.6 million one year earlier. Over the past year, FNB has focused its marketing efforts on increasing core deposits by promoting transaction accounts. As a result of this initiative, money market account balances have increased $86.2 million, and demand deposits grew $17.7 million during the previous twelve months. Other borrowings were $89.2 million and $77.8 million at June 30, 2005 and 2004, respectively. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased 9.8%, from $66.8 million at June 30, 2004 to $73.4 million at the end of the current period. During 2005, the Company repurchased 34,920 shares of its common stock at an average cost of $18.13. In May 2005, FNB completed a five-for-four common stock split effected in the form of a 25 percent stock dividend. Relevant information has been restated to reflect this action. FNB Financial Services Corporation is a financial holding company with one subsidiary, FNB Southeast, a North Carolina chartered commercial bank. FNB Southeast currently operates 17 banking offices located in North Carolina and Virginia. FNB Southeast Mortgage Corporation and FNB Southeast Investment Services, Inc. are operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of FNB Southeast. Information in this press release may contain "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. ." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in the Company's recent filings with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its other periodic reports.
FINANCIAL SUMMARY
------------------
2005 2004
--------------------- -----------------------------
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
----------- --------- --------- --------- ---------
Average Balances
(Dollars in thousands)
Assets $954,786 $899,083 $851,696 $830,732 $791,065
Loans 737,735 691,180 646,078 619,178 598,329
Investment
securities 153,411 141,963 142,290 138,554 133,874
Earning assets 899,522 842,142 797,623 776,481 739,630
Noninterest-
bearing deposits 86,656 78,685 78,260 77,690 77,054
Interest-bearing
deposits 694,494 659,834 649,198 621,170 556,897
Interest-bearing
liabilities 781,663 736,051 695,436 675,685 636,629
Shareholders'
equity 72,154 70,820 69,666 67,827 67,269
Second Six Months Ended
Quarter June 30
2005-2004 ----------------------------
Percent Percent
Variance 2005 2004 Variance
---------------- --------- --------- --------
Average Balances
(Dollars in thousands)
Assets 20.7% $927,089 $789,666 17.4 %
Loans 23.3 714,586 594,206 20.3
Investment securities 14.6 147,719 139,452 5.9
Earning assets 21.6 870,990 740,907 17.6
Noninterest-bearing
deposits 12.5 82,693 73,424 12.6
Interest-bearing
deposits 24.7 677,260 561,854 20.5
Interest-bearing
liabilities 22.8 758,983 639,910 18.6
Shareholders' equity 7.3 71,490 67,019 6.7
Period-End Balances
(Dollars in thousands)
Second
Quarter
2005 2004 2005-
--------------------- --------------------------- 2004
Second First Fourth Third Second Percent
Quarter Quarter Quarter Quarter Quarter Variance
----------- --------- --------- --------- ------- --------
Assets $979,446 $920,520 $865,335 $844,646 $786,383 24.6 %
Loans 763,255 713,310 663,425 641,057 600,526 27.1
Investment
securities 155,568 144,666 141,603 145,800 131,331 18.5
Earning
assets 924,506 860,575 807,482 789,233 734,296 25.9
Noninterest-
bearing
deposits 95,335 84,707 78,810 75,614 77,621 22.8
Interest-
bearing
deposits 716,031 682,792 645,475 648,281 561,015 27.6
Interest-
bearing
liabilities 805,184 758,375 712,009 696,079 638,816 26.0
Shareholders'
equity 73,360 71,386 70,430 69,273 66,830 9.8
Asset Quality Data
(Dollars in thousands)
2005 2004
-------------- -----------------------
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
------- ------- ------- ------- -------
Nonperforming loans $4,002 $2,613 $3,515 $4,354 $2,719
Other nonperforming
assets 2,554 5,357 5,559 4,966 5,231
Net credit losses 102 189 318 127 292
Allowance for credit
losses 8,380 7,843 7,352 7,341 7,183
Nonperforming loans
to outstanding loans 0.52 % 0.37 % 0.53 % 0.68 % 0.45 %
Annualized net credit
losses
to average loans 0.06 0.11 0.20 0.08 0.20
Allowance for credit
losses
to outstanding loans 1.10 1.10 1.11 1.15 1.20
Allowance for credit
losses to nonperforming
loans 2.09 X 3.00 X 2.09 X 1.69 X 2.64 X
Asset Quality Data Six Months Ended
(Dollars in thousands) June 30,
2005 2004
------ ------
Nonperforming loans $4,002 $2,719
Other nonperforming
assets 2,554 5,231
Net credit losses 291 601
Allowance for credit
losses 8,380 7,183
Nonperforming loans
to outstanding loans 0.52 % 0.45 %
Annualized net credit
losses
to average loans 0.08 0.20
Allowance for credit
losses
to outstanding loans 1.10 1.20
Allowance for credit
losses to nonperforming
loans 2.09 X 2.64 X
2005 2004
------------------ -------------------------
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
--------- -------- -------- -------- -------
Income Statement Data
(Dollars in thousands,
except share data)
Interest income:
Loans $13,630 $12,102 $11,081 $10,030 $9,311
Other 1,431 1,275 1,236 1,245 1,130
----------- -------- -------- -------- -------
Total interest
income 15,061 13,377 12,317 11,275 10,441
Interest expense 5,975 4,864 4,211 3,891 3,396
----------- -------- -------- -------- -------
Net interest income 9,086 8,513 8,106 7,384 7,045
Provision for credit
losses 638 680 330 285 272
----------- -------- -------- -------- -------
Net interest income
after provision for
credit losses 8,448 7,833 7,776 7,099 6,773
Noninterest income 1,815 2,138 1,945 1,695 2,604
Noninterest expense 7,045 6,892 6,760 5,969 5,590
----------- -------- -------- -------- -------
Income before income tax
expense 3,218 3,079 2,961 2,825 3,787
Income tax expense 1,083 1,036 941 913 1,274
----------- -------- -------- -------- -------
Net income $2,135 $2,043 $2,020 $1,912 $2,513
=========== ======== ======== ======== =======
Net income per share:
Basic $0.30 $0.30 $0.30 $0.28 $0.36
Diluted $0.29 $0.29 $0.28 $0.27 $0.35
Cash dividends per share $0.11 $0.11 $0.11 $0.10 $0.10
Second Six Months Ended
Quarter June 30
2005-2004 --------------------------
Percent Percent
Variance 2005 2004 Variance
---------- -------- -------- --------
Income Statement Data
(Dollars in thousands, except share data)
Interest income:
Loans 46.4 % $25,732 $18,498 39.1 %
Other 26.6 2,706 2,381 13.6
-------- --------
Total interest
income 44.2 28,438 20,879 36.2
Interest expense 75.9 10,839 6,985 55.2
-------- --------
Net interest income 29.0 17,599 13,894 26.7
Provision for credit
losses 134.6 1,318 660 99.7
-------- --------
Net interest income
after provision for credit
losses 24.7 16,281 13,234 23.0
Noninterest income (30.3) 3,953 4,445 (11.1)
Noninterest expense 26.0 13,937 11,036 26.3
-------- --------
Income before income tax
expense (15.0) 6,297 6,643 (5.2)
Income tax expense (15.0) 2,119 2,235 (5.2)
-------- --------
Net income (15.0) $4,178 $4,408 (5.2)
======== ========
Net income per share:
Basic (16.7)% $0.60 $0.64 (6.3)%
Diluted (17.1)% $0.58 $0.62 (6.5)%
Cash dividends per share 10.0 % $0.22 $0.20 10.0 %
Other Data
2005 2004
------------------ -------------------------
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
--------- -------- -------- -------- -------
Return on average
assets 0.90 % 0.92 % 0.95 % 0.92 % 1.27 %
Return on average
equity 11.87 11.71 11.60 11.28 14.94
Net yield on earning
assets 4.12 4.18 4.15 3.90 3.91
Efficiency 63.67 63.73 66.17 64.48 56.90
Net interest position
to total assets/a 12.34 11.80 12.00 12.13 13.02
Equity to assets 7.56 7.88 8.18 8.16 8.50
Loans to assets 77.27 76.88 75.86 74.53 75.64
Loans to deposits 94.44 93.59 88.81 88.60 94.38
Noninterest - bearing
deposits to total deposits 11.09 10.65 10.76 11.12 12.15
/a: Net interest position is average earning assets less average
interest-bearing liabilities.
NOTE: Per share data have been adjusted for the five-for-four
(5:4) stock split, effected as a 25% stock dividend, effective May 31,
2005.
Six Months Ended
June 30,
Other Data 2005 2004
------ -------
Return on average assets 0.91 % 1.12 %
Return on average equity 11.79 13.15
Net yield on earning assets 4.15 3.90
Efficiency 63.70 59.06
Net interest position to total assets/a 12.08 12.79
Equity to assets 7.71 8.49
Loans to assets 77.08 75.25
Loans to deposits 94.03 93.53
Noninterest - bearing
deposits to total deposits 10.88 11.56
/a: Net interest position is average earning assets less average
interest-bearing liabilities.
NOTE: Per share data have been adjusted for the five-for-four
(5:4) stock split, effected as a 25% stock dividend, effective May 31,
2005.
COMMON STOCK - PER SHARE
------------------------
2005 2004
----------------- --------------------------
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
-------- -------- -------- -------- --------
Market value:
End of period $18.39 $18.00 $18.24 $15.40 $13.61
High 20.25 18.74 18.68 15.58 16.24
Low 16.82 16.66 15.03 13.10 13.46
Book value 10.49 10.22 10.15 10.12 9.73
Dividend 0.11 0.11 0.11 0.10 0.10
Shares traded 263,966 504,388 829,240 690,955 452,901
NOTE: Per share data have been adjusted for the five-for-four
(5:4) stock split, effected as a 25% stock dividend, effective May 31,
2005.
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