Loan growth helps F.N.B. increase profits in 1st quarter

Staff report

hermitage, pa.

F.N.B. Corp.’s first-quarter profits increased as a result of loan growth and credit stabilization, the company announced after the stock markets closed Monday.

F.N.B., parent company of First National Bank, said that net income was $16 million for the first three months of 2010, up from $4.6 million in the previous quarter and $14.3 million in the first quarter of 2009.

“We are very pleased with our first-quarter results that reflect solid loan and deposit growth and stable credit quality,” Stephen Gurgovits, president and chief executive, said in a press release.

F.N.B. reported $5.9 billion in loans, up slightly from $5.8 billion a year earlier.

Increases in commercial- loan growth were offset slightly by a decrease in consumer loans in the first quarter, the company said.

The company’s provision for loan losses was $12 million in the first quarter, up from $10.5 million for the same period in 2009. The first-quarter loan loss provision decreased significantly from $26 million in the fourth quarter of 2009, however.

F.N.B.’s nonperforming loans continued to increase, up 4.3 percent from a year earlier and 8.2 percent from the previous quarter.

“While there have been signs of economic recovery, continued high unemployment remains a challenge for businesses and consumers throughout the country,” Gurgovits added.