Edgar Filing: PARKVALE FINANCIAL CORP

425

Filed by F.N.B. Corporation

(Commission File No. 001-31940)

Pursuant to Rule 425 under the Securities Act of 1933a

Subject Company: Parkvale Financial Corporation

(Commission File No. 0-17411)

This filing relates to a press release dated July 25, 2011 issued by F.N.B. Corporation. A copy of the press release follows.


		Press Release

F.N.B. Corporation Reports Increased Second Quarter 2011 Net Income

Revenue Growth for Seven Consecutive Quarters

Hermitage, PA – July 25, 2011 – F.N.B. Corporation (NYSE: FNB) today reported second quarter 2011 financial results. Net income for the second quarter of 2011 was $22.4 million, or $0.18 per diluted share, compared to $17.2 million, or $0.14 per diluted share, in the first quarter of 2011 and $17.9 million, or $0.16 per diluted share, in the second quarter of 2010.

“We are very pleased to deliver these results for our shareholders. Second quarter earnings of $0.18 per diluted share represent an increase from the prior quarter and the second quarter of 2010, with performance reflecting the continuation of several positive trends,” said Stephen J. Gurgovits, Chief Executive Officer of F.N.B. Corporation. “Revenue growth was achieved for the seventh consecutive quarter and loan growth was achieved for the eighth consecutive quarter. Additionally, our success growing transaction accounts continued and credit quality results were very good and improving from already solid levels.”

F.N.B. Corporation’s performance ratios for the second quarter of 2011 were as follows: return on average tangible equity (non-GAAP measure) was 16.77%; return on average equity was 7.69%; return on average tangible assets (non-GAAP measure) was 1.02% and return on average assets was 0.91%. A reconciliation of GAAP measures to non-GAAP measures is included in the tables that accompany this press release.

Mr. Gurgovits continued, “We are also extremely pleased to have announced the agreement to acquire Parkvale Financial Corporation on June 15, 2011. This strategically significant acquisition will solidify our leading status in the Pittsburgh MSA, vaulting our retail deposit market share to third from seventh, while providing our shareholders with a projected 6% accretion in 2012 and effectively deploying the recently raised capital. The initial stages of the integration process are underway with a targeted closing date in early January of 2012.”

Second Quarter Results

(all comparisons refer to the first quarter of 2011, except as noted)

Net Interest Income

Net interest income on a fully taxable equivalent basis totaled $80.7 million in the second quarter of 2011, increasing $1.4 million, or 7.3% annualized, primarily as a result of the 7.1% annualized growth in average earning assets and one additional day in the quarter. Average earning asset growth reflects strong loan growth and an increase in average investments due to the deployment of the $62.8 million in net proceeds from the capital raise completed on May 18, 2011. The net interest margin equaled 3.78%, with the 3 basis point narrowing in part due to increased average investments and a $30.6 million increase in average balances invested on an overnight basis.

Average loans for the second quarter totaled $6.6 billion, increasing $83.1 million or 5.1% annualized. Results for the Pennsylvania commercial portfolio in the second quarter remained strong as demonstrated by average loan growth totaling $74.8 million or 8.7% annualized. Additionally, the commercial lease portfolio continued to achieve consistent growth, contributing average growth of $6.6 million, or 31.6% annualized, through successful integration with our commercial bankers leading to positive cross-selling results. Total consumer loans increased 1.1% annualized with the average indirect auto lending portfolio growing $10.6 million, or 8.2% annualized, as a result of seasonally higher volume. In total, the other average consumer loans, which consist primarily of residential real estate-related portfolios, were essentially flat and reflect national trends for these portfolios.

Average deposits and customer repurchase agreements totaled $8.0 billion, increasing $125.1 million or 6.3% annualized. Growth in relationship-based transaction deposits and customer repurchase agreements continued as these average balances grew $149.4 million, or 10.7% annualized, as a result of new client acquisition and customers growing average balances. Partially offsetting this growth was a continued planned decline in time deposits given FNB’s overall liquidity position. As of June 30, 2011, FNB’s total customer based-funding was 95.6% of total deposits and borrowings.

“The successful loan and deposit growth results demonstrate FNB’s ability to build on the momentum our team has generated. This represents the eighth consecutive quarter of organic growth for total loans driven by nine quarters of consecutive growth in the Pennsylvania commercial portfolio,” said Mr. Gurgovits. “We believe that our team of experienced bankers, our consistency in the markets we serve, diverse product offerings and disciplined sales management approach has and will continue to produce positive results.”

Non-Interest Income

Non-interest income increased $0.8 million, or 2.9%, to $29.3 million in the second quarter of 2011. The increase reflects higher service charges reflecting seasonality and new account growth and higher securities commission revenue due to increased volume, particularly annuity related, and improved trust income resulting from revenue initiatives and more favorable market conditions. The lower insurance commission revenue reflects the seasonal decrease given contingent revenue that is normally received in the first quarter and the mortgage-related gains were lower given normal seasonality and industry trends.

Non-Interest Expense

Non-interest expense totaled $68.4 million in the second quarter of 2011, representing a $6.2 million or 8.3% improvement. When excluding the one-time merger costs of $4.1 million from the prior quarter, non-interest expense improved $2.1 million, or 3.1%, as a result of several factors, including cost savings realized from the CBI acquisition. Personnel costs improved by $1.9 million, or 4.8%, reflecting normal seasonal effects seen in the first quarter combined with acquisition-related cost savings. Additionally, FDIC insurance expense improved $0.9 million, or 31.2%, due to the new assessment methodology, while other real estate owned (OREO) costs increased $0.8 million to reflect current valuations and property maintenance costs. The second quarter of 2011 efficiency ratio improved to 60.5% compared to 63.7% in the first quarter when excluding merger costs.

Credit Quality

“We are pleased to report another quarter of very good credit quality performance, with results trending positively. The Pennsylvania and Regency portfolios, together representing 97% of the total loan portfolio, both continue to perform consistently very well and showed improvement from already solid results,” remarked Mr. Gurgovits.

Improvements seen in total past due and non-accrual loans to total loans and non-performing loans and OREO balances brought these metrics to the lowest levels since September 30, 2008. Total past due and non-accrual loans to total loans improved 27 basis points to 2.46% at June 30, 2011, driven by improvement in early stage delinquencies. The ratio of non-performing loans and OREO to total loans and OREO improved 12 basis points to 2.42% at June 30, 2011. The provision for loan losses was $8.6 million for the second quarter of 2011 and exceeded net loan charge-offs of $6.9 million. The second quarter of 2011 net charge-offs of 0.42% annualized were equal to the prior quarter’s results, representing the lowest level since September 30, 2008.

The Pennsylvania loan portfolio’s credit quality metrics for the second quarter of 2011 continue to reflect very solid performance. The Pennsylvania loan portfolio totaled $6.4 billion at June 30, 2011, representing 95% of the total loan portfolio. Total past due and non-accrual loans to total loans improved 11 basis points to 1.79% at June 30, 2011, driven by improvements in early-stage delinquencies, an important leading indicator. Charge-off performance continues to be very good, with net charge-offs for the second quarter totaling $5.3 million or 0.34% annualized of average loans. Year-to-date net charge-offs totaled 0.30% annualized of average loans compared to 0.36% for the full year of 2010. The allowance for loan losses to total loans equaled 1.30% and with the credit mark for the acquired portfolio equaled 1.71% at June 30, 2011 (non-GAAP measure).

The Florida loan portfolio credit quality results for the second quarter of 2011 performed as expected and were consistent with the prior quarter.

Capital Position

The Corporation’s higher capital levels at June 30, 2011 reflect the impact of the common stock offering completed on May 18, 2011 that generated $62.8 million in net proceeds intended to be used to support growth, including potential merger and acquisition opportunities. The Corporation’s capital ratios continue to exceed federal bank regulatory agency “well capitalized” thresholds.

At June 30, 2011, compared to March 31, 2011, the estimated total risk-based capital ratio was 13.3% compared to 12.5%, the estimated tier 1 risk-based capital ratio was 11.6% compared to 10.9% and the leverage ratio was 9.0% compared to 8.4%. At June 30, 2011 the tangible common equity to tangible assets ratio (non-GAAP measure) was 6.50% compared to 5.76% and the tangible book value per share (non-GAAP measure) was $4.73 compared to $4.36. The dividend payout ratio for the second quarter of 2011 was 69%.

Year-to-Date Results (all comparisons refer to the prior year-to-date period, except as noted)

Year-to-date results for the six months ended June 30, 2011 include the impact from the Comm Bancorp, Inc. (CBI) acquisition completed on January 1, 2011.

For the six months ended June 30, 2011, F.N.B. Corporation’s net income totaled $39.5 million, or $0.32 per diluted share, improved from $33.9 million, or $0.30 per diluted share. For the 2011 year-to-date period, return on average tangible equity (non-GAAP measure) totaled 15.40% compared to 15.05%, return on average equity was 6.94% compared to 6.51%, return on average tangible assets (non-GAAP measure) was 0.92% compared to 0.88%, and return on average assets was 0.82% compared to 0.78%.

Net interest income on a fully taxable equivalent basis totaled $159.9 million for the first six months of 2011, an increase of $16.8 million or 11.7%, reflecting 11.1% growth in average earning assets and a 2 basis point expansion of the net interest margin. The growth in earning assets reflects a combination of organic growth and the CBI acquisition. For the first six months of 2011, average loans grew 11.3%, with organic growth of 4.3% driven by strong market share gains in the Pennsylvania commercial portfolio. Average deposits and customer repurchase agreements grew 12.6%, with organic growth of 4.6% for the first six months of 2011 due to continued new customer acquisition and higher average balances.

Non-interest income totaled $57.7 million for the first half of 2011, with the decrease of $1.0 million or 1.8% due to several items benefitting the results for the first half of 2010. The first half of 2010 included $3.5 million higher recoveries on impaired loans acquired through acquisitions and a $1.6 million gain related to the successful harvesting of a mezzanine financing relationship by F.N.B. Capital Corporation. When adjusting for these two items in the prior year-to-date period, non-interest income improved $4.1 million or 7.7% due to positive results in a number of fee-based businesses. Service charges increased $1.6 million, or 5.7%, reflecting

higher volume, organic growth and the expanded customer base due to the CBI acquisition, partially offset by reduced overdraft fee revenue due to Regulation E. Fee income on a year-over-year basis also reflects a $2.1 million, or 21.6%, increase in wealth management-related revenue as a result of revenue-generating initiatives, improved market conditions and organic growth. Additionally, swap fee revenue doubled to $2.1 million in the first half of 2011 given the successful commercial loan growth results and continued low interest rate environment. Partially offsetting these increases, insurance commissions and fees declined 4.4% because of lower contingent revenues and lower commission revenues.

Non-interest expense totaled $142.9 million for the first half of 2011, an increase of $14.4 million, or 11.2%, due to adding CBI-related operating costs and $4.3 million in one-time merger costs. Expected cost savings related to the acquisition were fully phased in at the beginning of the second quarter of 2011. Additionally, the first half of 2011 includes higher OREO-related costs to reflect current valuations and property maintenance costs. On a year-to-date basis, F.N.B. Corporation’s efficiency ratio, excluding one-time merger costs, remained consistent at 62%.

Credit quality results significantly improved for the first half of 2011 compared to prior year-to-date results. Provision was $16.8 million for the first half of 2011, improving $7.4 million due to a $6.1 million lower provision in the Florida portfolio. Net charge-off results for the first six months of 2011 improved 9 basis points to 0.42% annualized of total loans and reflect continued solid performance for the Pennsylvania and Regency portfolios and improvement in the Florida portfolio. The ratio of the allowance for loan losses to total loans equaled 1.63% at June 30, 2011, compared to 1.91% at June 30, 2010, with the decline principally reflecting the impact of the accounting treatment required for loans acquired in connection with the CBI acquisition. The ratio of the allowance for loan losses plus the credit mark for the acquired portfolio to total loans plus the credit mark equaled 2.02% at June 30, 2011.

Other Highlights

On June 15, 2011, F.N.B. Corporation and Parkvale Financial Corporation (NASDAQ: PVSA) jointly announced the signing of a definitive merger agreement pursuant to which F.N.B. Corporation will acquire Parkvale Financial Corporation, the Pennsylvania-based holding company and parent of Parkvale Savings Bank in an all stock merger transaction (“merger”) valued at approximately $130 million. The transaction is expected to be completed in early January 2012, pending regulatory approval, the approval of Parkvale Financial Corporation shareholders and the satisfaction of various closing conditions.

The merger is subject to approval by federal and state regulatory agencies and is subject to a number of conditions between the parties which must be fulfilled in order to complete the merger. Therefore, the failure to obtain the requisite approvals or satisfaction of the conditions of the merger could delay or prevent the merger from being consummated.

Conference Call

F.N.B. Corporation will host its quarterly conference call to discuss second quarter of 2011 financial results on Tuesday, July 26, 2011, at 8:00 AM EDT. Participating callers may access the call by dialing (888) 490-2761 or (719) 325-2407 for international callers; the confirmation number is 4668433. The listen-only audio Webcast may be accessed through the “Shareholder and Investor Relations” section of the Corporation’s Web site at www.fnbcorporation.com.

A replay of the call will be available from 11:00 AM EDT the day of the call until midnight EDT on Wednesday, August 3, 2011. The replay is accessible by dialing (877) 870-5176 or (858) 384-5517 for international callers; the confirmation number is 4668433. The call transcript and Webcast will be available on 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 $9.9 billion. 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 F.N.B. Commercial Leasing. It also operates consumer finance offices in Kentucky and Tennessee.

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” within the meaning of the Private Securities Litigation Reform Act, 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. Forward-looking statements are typically identified by words such as “believe”, “plan”, “expect”, “anticipate”, “intend”, “outlook”, “estimate”, “forecast”, “will”, “should”, “project”, “goal”, and other similar words and expressions. 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 net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) various monetary and fiscal policies and regulations of the U.S. Government 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; (8) risk factors mentioned in the reports and registration statements F.N.B. Corporation files with the Securities and Exchange Commission (SEC) which are available on our shareholder and investor relations website at www.fnbcorporation.com and on the SEC website at www.sec.gov;

(9) housing prices; (10) job market; (11) consumer confidence and spending habits and (12) estimates of fair value of certain F.N.B. Corporation assets and liabilities. All information provided in this release and in the attachments is based on information only as of the date provided and presently available and 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.

ADDITIONAL INFORMATION ABOUT THE MERGER

F.N.B. Corporation will file a registration statement on Form S-4 with the SEC. The registration statement will include a proxy statement/prospectus and other relevant documents to be filed with the SEC in connection with the merger.

SHAREHOLDERS OF PARKVALE FINANCIAL CORPORATION ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

The proxy statement/prospectus and other relevant materials (when they become available), and any other documents F.N.B. Corporation has filed with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents F.N.B. Corporation has filed with the SEC by contacting James Orie, F.N.B. Corporation, One F.N.B. Boulevard, Hermitage, PA 16148, telephone: (724) 983-3317 or for Parkvale Financial Corporation by contacting Gilbert A. Riazzi, Chief Financial Officer, 4220 William Penn Highway, Monroeville, PA 15146, telephone: (412) 373-4804.

Parkvale Financial Corporation and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the proposed merger. Information concerning such participants’ ownership of Parkvale Financial Corporation common stock will be set forth in the proxy statement/prospectus relating to the merger when it becomes available. This communication does not constitute an offer of any securities for sale.

# # #

Analyst/Institutional Investor Contact:

Cynthia Christopher 724-983-3429

724-815-3926 (cell)

christoc@fnb-corp.com

Media Contact:

Jennifer Reel 724-983-4856

724-699-6389 (cell)

reel@fnb-corp.com

DATA SHEETS FOLLOW

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)


										2nd Qtr 2011 -		2nd Qtr 2011 -
	2011						2010			1st Qtr 2011		2nd Qtr 2010
	Second			First			Second			Percent		Percent
	Quarter			Quarter			Quarter			Variance		Variance
Statement of earnings
Interest income	$	98,155		$	97,371		$	94,361			0.8		4.0
Interest expense		19,461			20,088			22,880			-3.1		-14.9

Net interest income		78,694			77,283			71,481			1.8		10.1
Taxable equivalent adjustment		1,999			1,965			1,665			1.7		20.1

Net interest income (FTE) (1)		80,693			79,248			73,146			1.8		10.3
Provision for loan losses		8,551			8,228			12,239			3.9		-30.1

Net interest income after provision (FTE)		72,142			71,020			60,907			1.6		18.4

Impairment losses on securities		0			0			(1,313	)		n/m		n/m
Non-credit related losses on securities not expected to be sold (recognized in other comprehensive income)		0			0			711			n/m		n/m

Net impairment losses on securities		0			0			(602	)		n/m		n/m

Service charges		15,666			14,335			14,662			9.3		6.8
Insurance commissions and fees		3,664			4,146			3,849			-11.6		-4.8
Securities commissions and fees		2,130			1,972			1,771			8.0		20.2
Trust income		3,947			3,710			3,188			6.4		23.8
Gain on sale of securities		38			54			47			-29.4		-18.3
Gain on sale of loans		376			767			808			-51.0		-53.5
Other		3,437			3,448			4,720			-0.3		-27.2

Total non-interest income		29,258			28,432			28,443			2.9		2.9

Salaries and employee benefits		36,528			38,382			33,392			-4.8		9.4
Occupancy and equipment		9,985			10,385			9,446			-3.9		5.7
Amortization of intangibles		1,805			1,796			1,679			0.5		7.6
Other real estate owned		2,342			1,579			363			48.3		545.3
Other		17,709			22,415			18,204			-21.0		-2.7

Total non-interest expense		68,369			74,557			63,084			-8.3		8.4

Income before income taxes		33,031			24,895			26,266			32.7		25.8
Taxable equivalent adjustment		1,999			1,965			1,665			1.7		20.1
Income taxes		8,670			5,755			6,679			50.7		29.8

Net income	$	22,362		$	17,175		$	17,922			30.2		24.8


Earnings per share:
Basic	$	0.18		$	0.14		$	0.16			28.6		12.5
Diluted	$	0.18		$	0.14		$	0.16			28.6		12.5

Performance ratios
Return on average equity		7.69	%		6.17	%		6.83	%
Return on average tangible equity (2) (6)		16.77	%		13.93	%		15.65	%
Return on average assets		0.91	%		0.72	%		0.81	%
Return on average tangible assets (3) (6)		1.02	%		0.82	%		0.92	%
Net interest margin (FTE) (1)		3.78	%		3.81	%		3.81	%
Yield on earning assets (FTE) (1)		4.69	%		4.77	%		5.00	%
Cost of funds		1.06	%		1.12	%		1.37	%
Efficiency ratio (FTE) (1) (4)		60.54	%		67.57	%		60.45	%
Effective tax rate		27.94	%		25.10	%		27.15	%

Common stock data
Average basic shares outstanding		123,254,895			120,193,233			113,878,018			2.5		8.2
Average diluted shares outstanding		124,094,789			120,952,973			114,315,177			2.6		8.6
Ending shares outstanding		127,024,899			120,871,383			114,532,890			5.1		10.9
Book value per share	$	9.47		$	9.34		$	9.24			1.5		2.5
Tangible book value per share (6)	$	4.73		$	4.36		$	4.31			8.6		9.8
Tangible book value per share excluding AOCI (5) (6)	$	4.97		$	4.64		$	4.53			7.3		9.8
Dividend payout ratio		68.64	%		83.86	%		77.09	%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)


	For the Six Months
	Ended June 30,						Percent
	2011			2010			Variance
Statement of earnings
Interest income	$	195,526		$	186,907			4.6
Interest expense		39,549			47,021			-15.9

Net interest income		155,977			139,886			11.5
Taxable equivalent adjustment		3,964			3,303			20.0

Net interest income (FTE) (1)		159,941			143,189			11.7
Provision for loan losses		16,779			24,203			-30.7

Net interest income after provision (FTE)		143,162			118,986			20.3
Impairment losses on securities		0			(9,539	)		n/m
Non-credit related losses on securities not expected to be sold (recognized in other comprehensive income)		0			7,251			n/m

Net impairment losses on securities		0			(2,288	)		n/m
Service charges		30,001			28,384			5.7
Insurance commissions and fees		7,810			8,173			-4.4
Securities commissions and fees		4,102			3,328			23.2
Trust income		7,657			6,346			20.7
Gain on sale of securities		92			2,437			-96.2
Gain on sale of loans		1,143			1,375			-16.8
Other		6,885			10,963			-37.2

Total non-interest income		57,690			58,718			-1.8
Salaries and employee benefits		74,910			66,517			12.6
Occupancy and equipment		20,370			19,517			4.4
Amortization of intangibles		3,601			3,366			7.0
Other real estate owned		3,921			1,527			156.8
Other		40,124			37,600			6.7

Total non-interest expense		142,926			128,527			11.2
Income before income taxes		57,926			49,177			17.8
Taxable equivalent adjustment		3,964			3,303			20.0
Income taxes		14,425			11,972			20.5

Net income	$	39,537		$	33,902			16.6

Earnings per share:
Basic	$	0.32		$	0.30			6.7
Diluted	$	0.32		$	0.30			6.7
Performance ratios
Return on average equity		6.94	%		6.51	%
Return on average tangible equity (2) (6)		15.40	%		15.05	%
Return on average assets		0.82	%		0.78	%
Return on average tangible assets (3) (6)		0.92	%		0.88	%
Net interest margin (FTE) (1)		3.79	%		3.77	%
Yield on earning assets (FTE) (1)		4.73	%		5.01	%
Cost of funds		1.09	%		1.42	%
Efficiency ratio (FTE) (1) (4)		64.02	%		61.99	%
Effective tax rate		26.73	%		26.10	%
Common stock data
Average basic shares outstanding		121,732,522			113,814,527			7.0
Average diluted shares outstanding		122,532,686			114,189,300			7.3
Ending shares outstanding		127,024,899			114,532,890			10.9
Book value per share	$	9.47		$	9.24			2.5
Tangible book value per share (6)	$	4.73		$	4.31			9.8
Tangible book value per share excluding AOCI (5) (6)	$	4.97		$	4.53			9.8
Dividend payout ratio		75.25	%		81.37	%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


										2nd Qtr 2011 -		2nd Qtr 2011 -
	2011						2010			1st Qtr 2011		2nd Qtr 2010
	Second			First			Second			Percent		Percent
	Quarter			Quarter			Quarter			Variance		Variance
Average balances
Total assets	$	9,866,025		$	9,695,015		$	8,874,430			1.8		11.2
Earning assets		8,557,590			8,409,212			7,697,232			1.8		11.2
Securities		1,766,329			1,731,714			1,599,216			2.0		10.4
Interest bearing deposits with banks		167,924			137,281			159,874			22.3		5.0
Loans, net of unearned income		6,623,337			6,540,217			5,938,142			1.3		11.5
Allowance for loan losses		109,489			108,259			113,531			1.1		-3.6
Goodwill and intangibles		603,552			595,436			565,294			1.4		6.8

Deposits and customer repos (7)		8,041,138			7,916,046			7,163,916			1.6		12.2
Short-term borrowings		144,301			143,531			126,972			0.5		13.6
Long-term debt		206,201			199,047			228,959			3.6		-9.9
Trust preferred securities		203,934			203,961			204,455			0.0		-0.3
Shareholders’ equity		1,166,305			1,129,622			1,052,569			3.2		10.8

Asset quality data
Non-accrual loans	$	107,091		$	108,080		$	132,412			-0.9		-19.1
Restructured loans		20,146			21,577			17,270			-6.6		16.7

Non-performing loans		127,237			129,657			149,682			-1.9		-15.0
Other real estate owned		35,793			38,101			22,952			-6.1		55.9

Total non-performing loans and OREO		163,030			167,758			172,634			-2.8		-5.6
Non-performing investments		6,605			6,204			4,661			6.5		41.7

Non-performing assets	$	169,635		$	173,962		$	177,295			-2.5		-4.3


Net loan charge-offs	$	6,939		$	6,736		$	7,791			3.0		-10.9
Allowance for loan losses		109,224			107,612			114,040			1.5		-4.2

Non-performing loans / total loans		1.90	%		1.98	%		2.51	%
Non-performing loans + OREO / total loans + OREO		2.42	%		2.54	%		2.88	%
Non-performing assets / total assets		1.72	%		1.78	%		2.01	%
Allowance for loan losses / total loans		1.63	%		1.64	%		1.91	%
Allowance for loan losses + credit marks / total loans + credit marks (6)		2.02	%		2.04	%		n/a
Allowance for loan losses / non-performing loans		85.84	%		83.00	%		76.19	%
Net loan charge-offs (annualized) / average loans		0.42	%		0.42	%		0.53	%

Balances at period end
Total assets	$	9,857,163		$	9,755,281		$	8,833,060			1.0		11.6
Earning assets		8,560,768			8,459,481			7,647,064			1.2		11.9
Loans, net of unearned income		6,702,595			6,559,952			5,967,570			2.2		12.3
Deposits and customer repos (7)		7,960,415			7,982,954			7,141,210			-0.3		11.5
Total equity		1,203,150			1,128,414			1,058,004			6.6		13.7

Capital ratios
Equity / assets (period end)		12.21	%		11.57	%		11.98	%
Leverage ratio		8.97	%		8.36	%		8.63	%
Tangible equity / tangible assets (period end) (6)		6.50	%		5.76	%		5.97	%
Tangible equity, excluding AOCI / tangible assets (period end) (5) (6)		6.83	%		6.12	%		6.28	%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


	For the Six Months
	Ended June 30,						Percent
	2011			2010			Variance
Average balances
Total assets	$	9,780,993		$	8,810,141			11.0
Earning assets		8,483,810			7,633,181			11.1
Securities		1,749,117			1,541,100			13.5
Interest bearing deposits with banks		152,687			178,029			-14.2
Loans, net of unearned income		6,582,006			5,914,051			11.3
Allowance for loan losses		108,877			110,908			-1.8
Goodwill and intangibles		599,516			566,134			5.9

Deposits and customer repos (7)		7,978,938			7,083,701			12.6
Short-term borrowings		143,918			129,839			10.8
Long-term debt		202,644			245,846			-17.6
Trust preferred securities		203,947			204,540			-0.3
Shareholders’ equity		1,148,065			1,049,846			9.4

Asset quality data
Non-accrual loans	$	107,091		$	132,412			-19.1
Restructured loans		20,146			17,270			16.7

Non-performing loans		127,237			149,682			-15.0
Other real estate owned		35,793			22,952			55.9

Total non-performing loans and OREO		163,030			172,634			-5.6
Non-performing investments		6,605			4,661			41.7

Non-performing assets	$	169,635		$	177,295			-4.3


Net loan charge-offs	$	13,675		$	14,818			-7.7
Allowance for loan losses		109,224			114,040			-4.2

Non-performing loans / total loans		1.90	%		2.51	%
Non-performing loans + OREO / total loans + OREO		2.42	%		2.88	%
Non-performing assets / total assets		1.72	%		2.01	%
Allowance for loan losses / total loans		1.63	%		1.91	%
Allowance for loan losses + credit marks / total loans + credit marks (6)		2.02	%		n/a
Allowance for loan losses / non-performing loans		85.84	%		76.19	%
Net loan charge-offs (annualized) / average loans		0.42	%		0.51	%

Balances at period end
Total assets	$	9,857,163		$	8,833,060			11.6
Earning assets		8,560,768			7,647,064			11.9
Loans, net of unearned income		6,702,595			5,967,570			12.3
Deposits and customer repos (7)		7,960,415			7,141,210			11.5
Total equity		1,203,150			1,058,004			13.7

Capital ratios
Equity / assets (period end)		12.21	%		11.98	%
Leverage ratio		8.97	%		8.63	%
Tangible equity / tangible assets (period end) (6)		6.50	%		5.97	%
Tangible equity, excluding AOCI / tangible assets (period end) (5) (6)		6.83	%		6.28	%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


							2nd Qtr 2011 -		2nd Qtr 2011 -
	2011				2010		1st Qtr 2011		2nd Qtr 2010
	Second		First		Second		Percent		Percent
	Quarter		Quarter		Quarter		Variance		Variance
Average balances
Loans:
Commercial	$	3,721,871	$	3,654,563	$	3,311,030		1.8		12.4
Direct installment		1,029,808		1,046,249		969,007		-1.6		6.3
Residential mortgages		682,570		689,679		616,267		-1.0		10.8
Indirect installment		528,792		518,168		517,452		2.1		2.2
Consumer LOC		528,144		507,405		426,471		4.1		23.8
Commercial leases		90,831		84,196		62,510		7.9		45.3
Other		41,321		39,957		35,405		3.4		16.7

Total loans	$	6,623,337	$	6,540,217	$	5,938,142		1.3		11.5


Deposits:
Non-interest bearing deposits	$	1,248,029	$	1,176,031	$	1,028,631		6.1		21.3
Savings and NOW		3,888,716		3,753,938		3,297,537		3.6		17.9
Certificates of deposit and other time deposits		2,315,829		2,340,149		2,219,194		-1.0		4.4

Total deposits		7,452,574		7,270,118		6,545,362		2.5		13.9
Customer repos (7)		588,564		645,928		618,554		-8.9		-4.8

Total deposits and customer repos (7)	$	8,041,138	$	7,916,046	$	7,163,916		1.6		12.2


Balances at period end
Loans:
Commercial	$	3,776,287	$	3,689,667	$	3,304,493		2.3		14.3
Direct installment		1,039,270		1,036,213		983,857		0.3		5.6
Residential mortgages		676,574		673,152		615,232		0.5		10.0
Indirect installment		535,191		522,634		521,679		2.4		2.6
Consumer LOC		542,470		511,329		438,039		6.1		23.8
Commercial leases		93,273		87,916		64,715		6.1		44.1
Other		39,530		39,041		39,555		1.3		-0.1

Total loans	$	6,702,595	$	6,559,952	$	5,967,570		2.2		12.3


Deposits:
Non-interest bearing deposits	$	1,267,554	$	1,223,720	$	1,039,631		3.6		21.9
Savings and NOW		3,853,257		3,831,735		3,280,076		0.6		17.5
Certificates of deposit and other time deposits		2,276,408		2,334,856		2,214,951		-2.5		2.8

Total deposits		7,397,219		7,390,311		6,534,658		0.1		13.2
Customer repos (7)		563,196		592,643		606,552		-5.0		-7.1

Total deposits and customer repos (7)	$	7,960,415	$	7,982,954	$	7,141,210		-0.3		11.5

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


	For the Six Months Ended June 30,				Percent
	2011		2010		Variance
Average balances
Loans:
Commercial	$	3,688,403	$	3,296,352		11.9
Direct installment		1,021,800		972,046		5.1
Residential mortgages		702,288		614,553		14.3
Indirect installment		523,509		517,879		1.1
Consumer LOC		517,831		419,109		23.6
Commercial leases		87,532		60,329		45.1
Other		40,643		33,783		20.3

Total loans	$	6,582,006	$	5,914,051		11.3


Deposits:
Non-interest bearing deposits	$	1,212,229	$	999,441		21.3
Savings and NOW		3,821,699		3,257,518		17.3
Certificates of deposit and other time deposits		2,327,922		2,219,064		4.9

Total deposits		7,361,850		6,476,024		13.7
Customer repos (7)		617,088		607,677		1.5

Total deposits and customer repos (7)	$	7,978,938	$	7,083,701		12.6


Balances at period end
Loans:
Commercial	$	3,776,287	$	3,304,493		14.3
Direct installment		1,039,270		983,857		5.6
Residential mortgages		676,574		615,232		10.0
Indirect installment		535,191		521,679		2.6
Consumer LOC		542,470		438,039		23.8
Commercial leases		93,273		64,715		44.1
Other		39,530		39,555		-0.1

Total loans	$	6,702,595	$	5,967,570		12.3


Deposits:
Non-interest bearing deposits	$	1,267,554	$	1,039,631		21.9
Savings and NOW		3,853,257		3,280,076		17.5
Certificates of deposit and other time deposits		2,276,408		2,214,951		2.8

Total deposits		7,397,219		6,534,658		13.2
Customer repos (7)		563,196		606,552		-7.1

Total deposits and customer repos (7)	$	7,960,415	$	7,141,210		11.5

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


	Second Quarter 2011
	Bank - PA			Bank - FL			Regency			Total
Asset quality data, by core portfolio
Non-accrual loans	$	60,565		$	44,890		$	1,636		$	107,091
Restructured loans		15,340			0			4,806			20,146

Non-performing loans		75,905			44,890			6,442			127,237
Other real estate owned		10,472			23,868			1,453			35,793

Total non-performing loans and OREO		86,377			68,758			7,895			163,030
Non-performing investments		6,605			0			0			6,605

Non-performing assets	$	92,982		$	68,758		$	7,895		$	169,635


Net loan charge-offs	$	5,346		$	160		$	1,433		$	6,939
Provision for loan losses		4,655			2,240			1,656			8,551
Allowance for loan losses		82,353			20,018			6,853			109,224
Loans, net of unearned income		6,359,213			180,232			163,150			6,702,595

Non-performing loans / total loans		1.19	%		24.91	%		3.95	%		1.90	%
Non-performing loans + OREO / total loans + OREO		1.36	%		33.69	%		4.80	%		2.42	%
Non-performing assets / total assets		0.98	%		37.35	%		4.65	%		1.72	%
Allowance for loan losses / total loans		1.30	%		11.11	%		4.20	%		1.63	%
Allowance for loan losses + credit marks / total loans + credit marks (6)		1.71	%		11.11	%		4.20	%		2.02	%
Allowance for loan losses / non-performing loans		108.50	%		44.59	%		106.38	%		85.84	%
Net loan charge-offs (annualized) / average loans		0.34	%		0.35	%		3.62	%		0.42	%

Loans 30 - 89 days past due	$	39,205		$	23		$	2,182		$	41,410
Loans 90+ days past due		14,034			0			2,081			16,115
Non-accrual loans		60,565			44,890			1,636			107,091

Total past due and non-accrual loans	$	113,804		$	44,913		$	5,899		$	164,616


Loans 90+ days past due and non-accrual loans / total loans		1.17	%		24.91	%		2.28	%		1.84	%
Total past due and non-accrual loans / total loans		1.79	%		24.92	%		3.62	%		2.46	%

	First Quarter 2011
	Bank - PA			Bank - FL			Regency			Total
Asset quality data, by core portfolio
Non-accrual loans	$	59,343		$	46,701		$	2,036		$	108,080
Restructured loans		14,949			0			6,628			21,577

Non-performing loans		74,292			46,701			8,664			129,657
Other real estate owned		12,044			24,502			1,555			38,101

Total non-performing loans and OREO		86,336			71,203			10,219			167,758
Non-performing investments		6,204			0			0			6,204

Non-performing assets	$	92,540		$	71,203		$	10,219		$	173,962


Net loan charge-offs	$	4,053		$	1,147		$	1,536		$	6,736
Provision for loan losses		5,300			1,600			1,328			8,228
Allowance for loan losses		83,044			17,938			6,630			107,612
Loans, net of unearned income		6,216,969			185,148			157,835			6,559,952

Non-performing loans / total loans		1.19	%		25.22	%		5.49	%		1.98	%
Non-performing loans + OREO / total loans + OREO		1.39	%		33.96	%		6.41	%		2.54	%
Non-performing assets / total assets		0.99	%		37.14	%		6.06	%		1.78	%
Allowance for loan losses / total loans		1.34	%		9.69	%		4.20	%		1.64	%
Allowance for loan losses + credit marks / total loans + credit marks (6)		1.76	%		9.69	%		4.20	%		2.04	%
Allowance for loan losses / non-performing loans		111.78	%		38.41	%		76.52	%		83.00	%
Net loan charge-offs (annualized) / average loans		0.27	%		2.45	%		3.90	%		0.42	%

Loans 30 - 89 days past due	$	44,657		$	8,503		$	2,037		$	55,197
Loans 90+ days past due		13,952			0			2,127			16,079
Non-accrual loans		59,343			46,701			2,036			108,080

Total past due and non-accrual loans	$	117,952		$	55,204		$	6,200		$	179,356


Loans 90+ days past due and non-accrual loans / total loans		1.18	%		25.22	%		2.64	%		1.89	%
Total past due and non-accrual loans / total loans		1.90	%		29.82	%		3.93	%		2.73	%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


	Second Quarter 2010
	Bank - PA			Bank - FL			Regency			Total
Asset quality data, by core portfolio
Non-accrual loans	$	66,391		$	64,063		$	1,958		$	132,412
Restructured loans		11,233			0			6,037			17,270

Non-performing loans		77,624			64,063			7,995			149,682
Other real estate owned		9,626			12,245			1,081			22,952

Total non-performing loans and OREO		87,250			76,308			9,076			172,634
Non-performing investments		4,661			0			0			4,661

Non-performing assets	$	91,911		$	76,308		$	9,076		$	177,295


Net loan charge-offs	$	4,442		$	1,900		$	1,449		$	7,791
Provision for loan losses		4,494			6,168			1,577			12,239
Allowance for loan losses		80,396			26,940			6,704			114,040
Loans, net of unearned income		5,576,734			231,237			159,599			5,967,570

Non-performing loans / total loans		1.39	%		27.70	%		5.01	%		2.51	%
Non-performing loans + OREO / total loans + OREO		1.56	%		31.34	%		5.65	%		2.88	%
Non-performing assets / total assets		1.09	%		35.24	%		5.45	%		2.01	%
Allowance for loan losses / total loans		1.44	%		11.65	%		4.20	%		1.91	%
Allowance for loan losses + credit marks / total loans + credit marks (6)		n/a			n/a			n/a			n/a
Allowance for loan losses / non-performing loans		103.57	%		42.05	%		83.85	%		76.19	%
Net loan charge-offs (annualized) / average loans		0.32	%		3.23	%		3.73	%		0.53	%

Loans 30 - 89 days past due	$	35,005		$	0		$	2,070		$	37,075
Loans 90+ days past due		5,285			0			2,288			7,573
Non-accrual loans		66,391			64,063			1,958			132,412

Total past due and non-accrual loans	$	106,681		$	64,063		$	6,316		$	177,060


Loans 90+ days past due and non-accrual loans / total loans		1.29	%		27.70	%		2.66	%		2.35	%
Total past due and non-accrual loans / total loans		1.91	%		27.70	%		3.96	%		2.97	%

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


										2nd Qtr 2011 - 1st Qtr 2011 Percent Variance		2nd Qtr 2011 - 2nd Qtr 2010 Percent Variance
	2011						2010
	Second Quarter			First Quarter			Second Quarter
Balance Sheet (at period end)
Assets
Cash and due from banks	$	172,401		$	157,568		$	140,629			9.4		22.6
Interest bearing deposits with banks		16,732			132,340			60,238			-87.4		-72.2

Cash and cash equivalents		189,133			289,908			200,867			-34.8		-5.8
Securities available for sale		820,847			804,242			758,325			2.1		8.2
Securities held to maturity		1,010,672			956,693			853,698			5.6		18.4
Residential mortgage loans held for sale		9,922			6,254			7,232			58.7		37.2
Loans, net of unearned income		6,702,595			6,559,952			5,967,570			2.2		12.3
Allowance for loan losses		(109,224	)		(107,612	)		(114,040	)		1.5		-4.2

Net loans		6,593,371			6,452,340			5,853,530			2.2		12.6
Premises and equipment, net		126,061			125,067			115,323			0.8		9.3
Goodwill		567,378			565,090			528,720			0.4		7.3
Core deposit and other intangible assets, net		34,580			36,385			35,775			-5.0		-3.3
Bank owned life insurance		208,714			208,720			207,093			0.0		0.8
Other assets		296,485			310,582			272,495			-4.5		8.8

Total Assets	$	9,857,163		$	9,755,281		$	8,833,060			1.0		11.6


Liabilities
Deposits:
Non-interest bearing demand	$	1,267,554		$	1,223,720		$	1,039,630			3.6		21.9
Savings and NOW		3,853,257			3,831,735			3,280,076			0.6		17.5
Certificates and other time deposits		2,276,408			2,334,856			2,214,952			-2.5		2.8

Total Deposits		7,397,219			7,390,311			6,534,658			0.1		13.2
Other liabilities		103,492			94,975			94,748			9.0		9.2
Short-term borrowings		728,300			738,520			735,442			-1.4		-1.0
Long-term debt		221,061			199,134			205,834			11.0		7.4
Junior subordinated debt		203,941			203,927			204,373			0.0		-0.2

Total Liabilities		8,654,013			8,626,867			7,775,056			0.3		11.3

Stockholders’ Equity
Common stock		1,267			1,205			1,141			5.1		11.0
Additional paid-in capital		1,219,663			1,154,953			1,091,253			5.6		11.8
Retained earnings		16,348			9,336			(6,515	)		75.1		-350.9
Accumulated other comprehensive income		(30,716	)		(33,679	)		(25,358	)		-8.8		21.1
Treasury stock		(3,412	)		(3,401	)		(2,517	)		0.3		35.6

Total Stockholders’ Equity		1,203,150			1,128,414			1,058,004			6.6		13.7

Total Liabilities and Stockholders’ Equity	$	9,857,163		$	9,755,281		$	8,833,060			1.0		11.6

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

We believe the following non-GAAP financial measures used by F.N.B. Corporation provide information useful to investors in understanding F.N.B. Corporation’s operating performance and trends, and facilitate comparisons with the performance of F.N.B. Corporation’s peers. The non-GAAP financial measures used by F.N.B. Corporation may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, F.N.B. Corporation’s reported results prepared in accordance with U.S. GAAP. The following tables summarize the non-GAAP financial measures included in this press release and derived from amounts reported in F.N.B. Corporation’s financial statements.


	2011						2010
	Second Quarter			First Quarter			Second Quarter

Return on average tangible equity (2):
Net income (annualized)	$	89,695		$	69,653		$	71,886
Amortization of intangibles, net of tax (annualized)		4,707			4,734			4,376

		94,402			74,387			76,262

Average total shareholders’ equity		1,166,305			1,129,622			1,052,569
Less: Average intangibles		(603,552	)		(595,436	)		(565,294	)

		562,753			534,186			487,275

Return on average tangible equity (2)		16.77	%		13.93	%		15.65	%


Return on average tangible assets (3):
Net income (annualized)	$	89,695		$	69,653		$	71,886
Amortization of intangibles, net of tax (annualized)		4,707			4,734			4,376

		94,402			74,387			76,262

Average total assets		9,866,025			9,695,015			8,874,430
Less: Average intangibles		(603,552	)		(595,436	)		(565,294	)

		9,262,473			9,099,579			8,309,136

Return on average tangible assets (3)		1.02	%		0.82	%		0.92	%


Tangible book value per share:
Total shareholders’ equity	$	1,203,150		$	1,128,414		$	1,058,004
Less: intangibles		(601,958	)		(601,475	)		(564,495	)

		601,192			526,939			493,509

Ending shares outstanding		127,024,899			120,871,383			114,532,890

Tangible book value per share	$	4.73		$	4.36		$	4.31

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


	For the Six Months Ended June 30,
	2011			2010
Return on average tangible equity (2):
Net income (annualized)	$	79,729		$	68,366
Amortization of intangibles, net of tax (annualized)		4,720			4,412

		84,449			72,778

Average total shareholders’ equity		1,148,065			1,049,846
Less: Average intangibles		(599,516	)		(566,134	)

		548,549			483,712

Return on average tangible equity (2)		15.40	%		15.05	%


Return on average tangible assets (3):
Net income (annualized)	$	79,729		$	68,366
Amortization of intangibles, net of tax (annualized)		4,720			4,412

		84,449			72,778

Average total assets		9,780,993			8,810,141
Less: Average intangibles		(599,516	)		(566,134	)

		9,181,477			8,244,007

Return on average tangible assets (3)		0.92	%		0.88	%


Tangible book value per share:
Total shareholders’ equity	$	1,203,150		$	1,058,004
Less: intangibles		(601,958	)		(564,495	)

		601,192			493,509

Ending shares outstanding		127,024,899			114,532,890

Tangible book value per share	$	4.73		$	4.31

F.N.B. CORPORATION

(Unaudited)

(Dollars in thousands)


	2011						2010
	Second Quarter			First Quarter			Second Quarter
Tangible book value per share excluding AOCI (5):
Total shareholders’ equity	$	1,203,150		$	1,128,414		$	1,058,004
Less: intangibles		(601,958	)		(601,475	)		(564,495	)
Less: AOCI		30,716			33,679			25,358

		631,908			560,618			518,867

Ending shares outstanding		127,024,899			120,871,383			114,532,890

Tangible book value per share excluding AOCI (5)	$	4.97		$	4.64		$	4.53


Tangible equity / tangible assets (period end):
Total shareholders’ equity	$	1,203,150		$	1,128,414		$	1,058,004
Less: intangibles		(601,958	)		(601,475	)		(564,495	)

		601,192			526,939			493,509

Total assets		9,857,163			9,755,281			8,833,060
Less: intangibles		(601,958	)		(601,475	)		(564,495	)

		9,255,205			9,153,806			8,268,565

Tangible equity / tangible assets (period end)		6.50	%		5.76	%		5.97	%


Tangible equity, excluding AOCI / tangible assets (period end) (5):
Total shareholders’ equity	$	1,203,150		$	1,128,414		$	1,058,004
Less: intangibles		(601,958	)		(601,475	)		(564,495	)
Less: AOCI		30,716			33,679			25,358

		631,908			560,618			518,867

Total assets		9,857,163			9,755,281			8,833,060
Less: intangibles		(601,958	)		(601,475	)		(564,495	)

		9,255,205			9,153,806			8,268,565

Tangible equity, excluding AOCI / tangible assets (period end) (5)		6.83	%		6.12	%		6.28	%


Allowance for loan losses + credit marks / total loans + credit marks:
Allowance for loan losses	$	109,224		$	107,612
Credit marks		26,622			26,919

		135,846			134,531

Total loans		6,702,595			6,559,952
Credit marks		26,622			26,919

		6,729,217			6,586,871
Allowance for loan losses + credit marks / total loans + credit marks		2.02	%		2.04	%

(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 is calculated by dividing net income less amortization of intangibles by average 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)	Customer repos are included in short-term borrowings on the balance sheet.