First National increases profit

The banking company earned $23.5 million last quarter.

STAFF REPORT

HERMITAGE, Pa. — First National Bank of Pennsylvania is increasing its profits despite the failed credit market and sagging economy.

Its holding company, F.N.B. Corp., said Thursday that it earned $23.5 million in the third quarter, up from $17.6 million in the same quarter last year.

“We are pleased to deliver a solid quarter in this period of economic stress,” said Bob New, president and chief executive of Hermitage-based F.N.B.

The company’s profits flow from its growth initiatives and risk management policies, he said.

Banks across the nation have been struggling with large losses from loans to residential developers and homeowners who have been unable to repay them.

Despite the increased profits, F.N.B. still is feeling the effects of the troubled economy.

F.N.B. set aside $6.5 million in the third quarter to cover loan losses, which was $4.5 million less than the second quarter.

Its nonperforming loans — those that haven’t received payments in 90 days — increased by $21.1 million to $92.2 million.

The company said its loan quality in Ohio and Pennsylvania remain good, but it continues to have trouble in Florida, which has been hit hard by foreclosures. Its Florida loans make up only 5 percent of the company’s total portfolio but account for 38 percent of the total nonperforming loans.

In the first nine months of this year, F.N.B. has earned $54.5 million, compared with $52.6 million at the same time last year.