September 8, 2009 (FinancialWire) — F.N.B. Corp. (NYSE: FNB) said it will fully redeem all of the preferred stock it sold to the U.S. Treasury in January 2009. The preferred stock was issued to the Treasury Department pursuant to the Capital Purchase Program.

The company is paying $100.3 million to the UST to redeem the preferred stock, which includes the original investment amount of $100 million plus accrued unpaid dividends of $0.3 million. F.N.B. was approved to pay the funds back without any conditions from regulators, according to the company.

In conjunction with its participation in the CPP, F.N.B. issued to the Treasury a warrant to purchase up to 1,302,083 shares of FNB common stock. In June 2009, F.N.B. completed a common stock offering that raised around $125.8 million. With the capital raise, the number of F.N.B. shares subject to the warrant was reduced by one half to 651,041.5.

The company said it has 15 days to notify the Treasury whether it intends to repurchase the warrant.

Hermitage, Pennsylvania-based F.N.B. is a financial services company that provides commercial and retail banking, leasing, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania and Ohio.

The company owns and operates First National Bank of Pennsylvania, First National Trust Co., First National Investment Services Co., F.N.B. Investment Advisors, First National Insurance Agency, F.N.B. Capital, Regency Finance and Bank Capital Services.

F.N.B. also operates consumer finance offices in Tennessee and loan production offices in Pennsylvania, Tennessee and Florida.

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