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F.N.B. Corp. (FNB) has three reportable business segments: (1) Community Banking, (2) Wealth Management & (3) Insurance. The majority of revenue is from the Community banking segment.

It offers commercial & consumer banking services. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, business credit, capital markets & lease financing. Consumer banking products & services include deposit products, mortgage lending, & consumer lending & a complete suite of mobile & online banking services.

The group has Banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C. & Virginia.

A majority of FNB's loan portfolio is in commercial real estate, while the majority of its revenue is net interest income.

The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses.

F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

Three key data points gauge F N B Corp, or any dividend-paying firm.

They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

FNB Price

Over the past year, FNB share price rose about 1% from $11.16 to $11.29 as of Tuesday’s market close.

If FNB, stock trades in the range of $10.00 to $15.00 this next year, its recent $11.29 share price might rise to $13.50 by next year. Of course, FNB’s price could drop about the same $2.20 amount, or more.

My upside estimate of $2.20 is $1.00 below the median of annual target price estimates from eight analysts covering the stock for brokers.
 

FNB Dividend

F N B Corp’s recent $0.12 quarterly dividend, paid June 15th to shareholders of record June 1st, equates to $0.48 annually and throws a yield of 4.25% as of Tuesday’s closing price.
 

FNB Returns

Adding the $0.48 anticipated annual dividend to the FNB estimated $2.20 price upside, reveals a $2.68 potential gross gain per share for the coming year.

At Tuesday’s $11.30 closing price, a little under $1000 would buy 88 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.11 per share.

Subtracting that maybe $0.11 brokerage cost from my estimated $2.68 gross gain per share makes a net gain amounting to $2.57 X 88 shares = $226.16 for a 22.6% net gain.

This may be the time to pounce on FNB. But beware, its dividend is stable and its price is low and is priced at over half the stock’s all-time $22.91 high posted February 7, 2004.

The foregoing article is based on past history of F.N.B Corp. The only accurate measure of future performance is from active investment in the company.

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