“We continue to aggressively address our Florida exposure to recognize the weakness in the Florida economy,” said Bob New, President and Chief Executive Officer of F.N.B. Corporation. “With these actions we have charged off $15 million of the Florida portfolio in 2008, which now totals $294 million or less than 5% of our total loan portfolio. We also increased our year-end allowance for loan losses for Florida to $29 million, which covers 10% of that loan portfolio.”
At quarter end, our Florida loan portfolio is down $28 million to $244 million or 4.2% of FNB’s total loan portfolio. Non-performing assets at $82 million are up $5.9 million over the prior quarter as we moved two land related credits totalling $25 million to non-accrual status. This leaves only one significant land related credit in the amount of $20 million on accrual status at year-end, which we expect will continue to perform. Charge-offs of $20 million were up $16 million over the third quarter and were primarily related to the land portfolio. Included in these write-downs were existing specific reserves totalling $10 million. The difference, which required additional provisioning, reflects devaluations 5% to 10% higher than our heavily discounted assumptions already placed on this portfolio.