F.N.B. Corp. in Pittsburgh reported higher earnings despite fully charging off a large commercial loan.
The $45 billion-asset company said in a press release that its earnings rose by 2% from the second quarter and by 5.8% from a year earlier, to $143.3 million.
The third quarter loan-loss provision included $18.8 million tied to a $31.9 million loan that was plagued by alleged fraud.
F.N.B. downgraded the loan to nonperforming status late in the second quarter, then decided to charge off the entire amount after more investigation and bankruptcy filings by the borrower and its primary supplier.
F.N.B. warned about the loan when it reported second-quarter earnings this summer, setting aside some funds to cover potential exposure.