Boston, MA 10/30/2013 (wallstreetpr) – The financial holding bank company F.N.B. Corp (NYSE:FNB) is seeking to raise $150 million through the sale of its common and preferred stock. This is viewed as a capital action plan by the company. The announced stock sales will include public offering of its $50 million common stock and another $100 million of its perpetual preferred stock.
The bank company intends to use proceeds from the stock sales to position itself for the Basel III implementation. This will include certain trust preferred securities redemption and pursuit of growth opportunities. The bank has identified J.P. Morgan Securities, RBC Capital Markets, A. Stifel Co. and Keefe, Bruyette & Woods as joint book-running managers.
FNB announced its Q3.13 earnings on October 18, posting $0.22 per share earning, beating analysts’ estimate and it’s a year ago earnings. Its net income increased from $30.7 million to $31.6 million year over year. The Q3.13 highlights included growth in deposit balances, improved asset quality and growth in loans. The quarter’s headwinds came in the form of declining profitability ratio, higher operating expenses and drop in non-interest income.
In performance, FNB realized revenue that was almost in line with Q3.12 at $142.6 million. This revenue exceeded analysts estimate of $132 million. The banks asset quality improved in the quarter where nonperforming assets came in at $118.6 million, indicating 2.3% decline. In loan deposits, the bank realized an increase of 10.7% from a year ago to record $8.6 billion. Its loan portfolio performed well in Q3, ending September 30. On the other hand, the deposits went up 6.5% to $9.7 billion year over year.
While the bank exhibit improving credit quality, strong balance sheet and consistent organic growth, its march is bogged down by low interest rates, tough regulations and mounting expenses which in effect complicate the bigger picture. FNB is an Hermitage-based financial services provider which operates in four business segments namely: wealth management, insurance, community banking and consumer finance.
