U.S. invests in F.N.B. Corp.

STAFF REPORT

HERMITAGE, Pa., — F.N.B. Corp. said Tuesday it is accepting $100 million in investment from the federal government and is expecting to report a loss for the fourth quarter because of bad loans in Florida.

The Hermitage-based holding company of First National Bank of Pennsylvania said it sold 100,000 shares of preferred stock to the U.S. Treasury.

Bob New, F.N.B. president and chief executive, noted that the government has said it will use its Capital Purchase Program to invest in healthy banks in order to increase financing available for U.S. businesses and consumers.

He said the company will use the money in its regular operations, including making loans.

F.N.B said it expects to report a fourth-quarter loss of between $17 million and $21 million, or 19 cents to 23 cents per diluted share.

The loss stems from money that is being set aside to cover loan losses primarily related to its Florida loan portfolio and accounting charges related to the reduced value of investments. F.N.B. will release its earnings Jan. 26.

For the full year, F.N.B. expects earnings to be in the range of $33 million to $37 million, or 41 cents to 46 cents per share.