Good afternoon ladies and gentlemen, thank you for standing by and welcome to today's F.N.B. Corporation First Quarter 2008 Earnings Call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer-session. Instructions will be provided at that time for you to queue up for questions. As a reminder, today's conference is being recorded. Now, I'd like to turn the conference over to your host, Mr. Bartley Parker of Integrated Corporate Relations. Please go ahead, sir.

Thank you, John. Good morning everyone. This conference call of F.N.B. Corporation and the reports it files with the Securities and Exchange Commission often contains forward-looking- statements, which are based on current expectations, estimates, forecasts, and projections about F.N.B. As well as F.N.B management's assumptions and beliefs, relating to present or future trends or factors affecting the future performance of F.N.B. and the banking and financial services industry. Since forward-looking-statements relate to future developments, results and events; they involve certain risks and uncertainties and actual future results may differ materially from historical performance or those expressed and or implied by this presentation as a result of future decisions by F.N.B. or by other factors and developments beyond F.N.B's control. Including, but are not limited to: a significant increase in competitive pressures among financial institutions; changes in the interest rate environment that may reduce interest margins; changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; less favorable than expected general economic conditions; legislative or regulatory changes that may adversely affect the businesses in which F.N.B. is engaged; technological issues which may adversely affect F.N.B's financial operations or customers; changes in the securities markets; or risk factors mentioned in F.N.B's fillings with the Securities and Exchange Commission. F.N.B. undertakes no obligation to update these forward-looking statements or to reflect events or circumstances after the date of this call. It's now my pleasure to turn the call over to Mr. Steve Gurgovits, Chairman of F.N.B. Corporation. Steve?

Thank you, Bartley. Good morning, everyone, and thank you for joining our first quarter 2008 earnings conference call. With me today on the call is Bob New, our President and Chief Executive Officer; Brian Lilly, our Chief Financial Officer; and Gary Roberts, President and CEO of First National Bank of Pennsylvania. As you know, Bob officially took over as Chief Executive Officer of the Corporation on April 1st, having been President and CEO left since January 15. Bob has been diligently getting the [network] operation throughout Pennsylvania and Florida. And along with Brian and me, meeting with some of you at the Investor Conferences we have attended during the first quarter. Going forward Bob would be leading our quarterly earnings calls. So, at this time I would like to turn the call over to him. Bob?

Thank you, Steve. Let me begin by saying thank you to Steve for his many years of service and leadership with F.N.B. Steve I'm looking forward to working along side with you in your new role as Chairman of the Board. I think it's important to note that although we have a change in leadership the company's primary strategies won't change. Our operating strategy remains designed to manage our business for profitability and seven components to that strategy include; operating our business in markets that we know and understand, maintaining a low risk profile, driving organic revenue growth through relationship banking, funding loan growth with core deposits, targeting a neutral asset liability posture to manage interest rate risk, building our fee income sources and maintaining rigid controlled expenses. Our capital management strategy will also stay the same. We intend to exceed regulatory well capitalized measures and return excess capital to shareholders in the form of dividends. Our expansion strategy has two components to it. First, we look to our filling our existing footprint with de novo branches or small acquisition which strategically compliments our existing network. Second, we continue to look to expand our existing footprint with opportunist acquisitions that add to shareholders value. In either case, we intend to be good stewards of our capital, which means acquisitions should be both accretive to earnings within the second year and not diluted to capital. Now let me bring you up to date on these strategies. As for expanding our footprint we finalized our merger with Omega Financial Corporation on April 1st. The integration of Omega began well before the actual closing date of April 1 and that gave us a running start of combining operations, sharing best practices and achieving target synergies. We expect the systems conversion to take place…

Thank you Bob, and good morning everyone. The overall results for the quarter were a function of good loan and fee income growth, as well as a stable net interest margins. In addition, we experienced good credit quality and met our plan for expenses. As Bob mentioned, we are pleased with the 10% annualized link quarter commercial loan growth. This growth is partially offset by seasonal run off in the direct installment portfolio and weaker automobile sales, which drove the decline in the indirect installment portfolio. In total average loan grew 4%, annualized compared to the prior quarter. We have good momentum heading into the second quarter with our period and loan balances above our average balances. On the deposit side, we did experienced the normal seasonal outflow of the business deposits in the first quarter and saw a certain competitors become more aggressive with deposit promotions. Managing deposit rate was a key focus, as we responded to the aggressive Fed actions and competitive challenges. Our loan and deposit pricing strategies enabled us to increase the net interest margin one basis point over the fourth quarter to 3.73% as we offset the earning asset yield decrease of 24 basis points with a rate pay decrease of 29 basis points. Looking forward, while the margin continues to under pressure, we had targeted to maintain the margin in the second quarter. Turning to non-interest income, seasonal increases, organic growth and a $700,000 gains from the Visa IPO contributed to a $1.5 million increase in non-interest income compared to the prior quarter. Insurance commissions and fees included the receipt of $650,000 in contingency fee income reflecting favorable last year end results. The year-over-year decrease in insurance fees of $500,000 was entirely driven by lower contingency fees this year. The link quarter increase in…

Thank you, Brian. Overall, we are encouraged by pickup in our lending activity that we had towards the end of the quarter, and our pipelines look good going forward into the second quarter. This coupled with our solid credit quality and disciplined management of operating expansions, truly positions us well for the future. And in closing, we believe that our strategies coupled with our history of successful execution, our cautious avoidance of those risks and covering other financial firms makes F.N.B. a preferred investment for shareholders. We thank all of our shareholders for their continued support. That concludes our formal remarks for the call. And I will now ask the operator to poll the audience for questions.

Thank you. (Operator Instructions) We will take our first question with Mac Hodgson with SunTrust Robinson Humphrey. Please go ahead.

Hey good Morning.

Hi, Mac.

I had just a couple of questions, may be first on the fee revenue. Brian, I think you mentioned $800,000 of the other revenue was due to the swap. So I was just kind of curious if that's something you think is kind of sustainable going forward or if it's more of a one-time given the interest rate environment?

Well, certainly it is higher in the interest rate environment that we are in, but that interest rate environment continues. So, our team continues to work with larger customers in the second quarter of the year, probably as you go through the year. But, the first quarter definitely was very strong. We had a very, a couple of real nice gains we're able to work out with our commercial customers.

Okay, great. And the $600,000 at Omega related expenses, would those be included just throughout the non-interest expense items, or would they be in one of the categories specifically?

They would primarily be in the other and in the salary and benefits. We deal with the pre-hiring people as we move some of the functions to our Hermitage area. And, so that would come into the salary section. And just to clarify that it wasn't all $600,000 related to the Omega, we also had Bob's relocation expenses were part of that $600,000 too and that was one-time.

Okay, great. And, may be on the loan growth, there was great commercial loan growth in the quarter, I have seen that from other competitors in the market and some of their banks are speaking that lot of that loan growth being driven by the lack of the conduit market and the disruption in the capital markets. So kind of smaller banks are able to pick up, may be borrowers that would normally have led to giving competitive reasons. And, I was just kind of curious, if that's something you would echo and if you are seeing a strong loan growth as a result of that?

Mac, this is Bob. What we're saying is that this is a continuation of our relationship banking focus. These are primarily loans that we have been targeting and they're not these large syndicating credits, where we don't have relationships with customers. So, our loan growth is coming from expanding our customer relationships and recruiting new customers.

Okay, great.

Mac, let just add me. We're little bit more bullish on that, particularly in our Western part of franchise with the disruption in that city and others, teams have put some really strong marketing programs together and when we think closer relationships are bringing in some great concept.

The real growth came from the Pittsburgh in central regions and the central region is right here in Irwin and Johnstown where that city has stronger presence.

Okay. And, do you have any comments on the Florida market, how it's doing from a production standpoint and obviously credit stats were good in the quarter. So assuming there is no further deterioration there?

Yeah, this is Bob. Let me give you an update on Florida. We had a slight uptick in our outstandings. We grew out standings by about 4%. The total exposure, however, actually went down by just under 2%. We reported I think in the fourth quarter on credit quality and said that we had taken one credit in ORE and put two loans still may be about $10 million on non-accrual. We've had no change to that in the first quarter so that credit quality metric is holding up. Going forward we continue to watch that and monitor it very, very closely. We do quarterly reviews of each one of our credits in Florida. We are well aware that that economy continues to soften. And Mac I don't know if we had told you this before, but I spent about a week down in Florida in February just looking at every one of these projects that we had financed. I think I probably look at about 80% of the portfolio. I came away from that visit feeling fairly comfortable that we've done pretty fair job on our underwriting. There are good LTVs on project. Most of them had guarantors. The risks were well documented. We do a quarterly review of these credits. I am comfortable with our monitoring process and our action plans for every credit. Having said that we still understand there is risk in Florida, but I believe we've got a pretty good handle on those risks and we feel like it's manageable.

Okay, great. That's it for me. Thanks guys.

We will take our next question with David Darst with FTN Midwest. Please go ahead sir.

Hi. Good morning.

Hi, David.

Bob could you just touch on the growth of the [Florida] that you mentioned, you said you grew your outstanding by 4%?

Yes, that's about $12 million. In this quarter we did four new loans one of those was a small loan to an individual as a personal line of credit. And then we did three other end market transactions one was a C&I loan for a group of doctors and two others were commercial real estate loans that meet our underwriting for commercial real estate projects.

Okay, then you made a reference to reducing your exposure to under 2%?

The total exposure the total commitments in Florida reduced about 1.5% from quarter-to-quarter.

Okay. How large is that ORE down there?

ORE or CRE.

We have one project down there about a million dollars.

Okay. Brian, could you give us an average share account, diluted share count to use for the second quarter?

I know but it's, I don't have. There is nothing unusual that's happened from the first quarter to the second.

You mean considering Omega?

No, we didn't. I don't know, well of the top of my head. I want to say about 86 million, but going to have to open that up.

Okay. And then any other updates on Central Pennsylvania or the Pittsburgh market?

No, activity is brisk and our pipelines are strong. As a matter of fact we are at all time high, so we are very optimistic on what's going on, like there is some real good opportunity.

Okay. Thanks.

(Operator instructions). We'll take our next question with Damon DelMonte with KBW. Please go ahead, sir.

Hi. Good morning guys. How are you?

Good morning.

Question on credit quality, the net charge off this quarter were 27 basis points. Do you have a forecast or a target for full year?

We stand by our guidance that we shared with you at the end of January. We got that just slightly above our actual for 2007 which was 29 basis points. But we're already slightly below that, so we are encouraged by that.

Okay. Great. And now just with respect to some of the commercial growth you've seen, could you just kind of identify some of the projects that you are lending to?

Sure Damon this is Gary Roberts. On the commercial sector primarily non-owner occupied and owner occupied commercial real estate income producing properties all with strong cash flows and within policy margin. So, that seems to be -- at this point in time, where most of the activity. If CNI lending continues to be brisk it represents about 40% of the portfolio. So, nothing outside of the norm.

Okay, great. And, then just lastly, is there going to be any type of supplement published with any numbers on Omega, with regards to their last quarter's results, or is that something we have to wait for until the end of the second quarter?

We hadn't contemplated issuing anything on a interim basis but then we haven't done that in the past, so in the quarter.

Okay, right. Thank you very much.

You're welcome.

(Operator Instructions) We will take our next question with Andy Stapp from Riley & Company. Please go ahead. Andy Stapp - Riley & Company: Good morning.

Hi, Andy. Andy Stapp - Riley & Company: Could you provide an update on asset quality as it pertains to your indirect dollar loans in your Regency?

We will take it in pieces Regency, Regency continue to perform very well, and I think that we've said with (inaudible) has called that our historical charge-offs ratio being in the 4% and they were around top of that for the first quarter. The Regency delinquencies are consistent with where they've been in the past. And so, we are not seeing any slippage there at all. As it turns to the consumer, the indirect portfolio, delinquencies continue to track very consistent through the 2007 and 2006 levels and we like everybody else, we're looking for those cracks in the consumer and be an active risk managers that we are, but so far so good. Andy Stapp - Riley & Company: Okay, great. Would you happen to have about the -- how did 30 to 89 day delinquencies compare quarter-to-quarter?

30 to 89. Andy Stapp - Riley & Company: [Pass this].

I've got total in the [cost to my asset], that particular category. We'll take a look at that, we'll look for that in more detail. And, if you got another question? Andy Stapp - Riley & Company: Sure. You may not have this, but just curious what the average loan-to-value ratio is for your Florida loans, or if you could write some color on that?

Okay. I think we addressed that I think in our fourth call and my recollection is that we are, some of our it varies depending on the type of the loans, certainly our policy would suggest that if we have operating properties, the larger values should be in the 80% or better range and if it's land at 65% or better. Currently, we're running an average of about 50% on land it's going in about 62% on development and other real estate somewhere between 62% and 65%. So our LTVs are now little better shape that even our policy suggests. Andy Stapp - Riley & Company: Okay. Could you give us some color on how Omega's asset quality fared during the quarter?

Certainly, from we're working arms around that now. There has been nothing reported on it but I think I've stated that it's a pretty good system with what they included in their 10-K. Andy Stapp - Riley & Company: Okay.

And will be a I guess a normal process, we will be observing that here that will be the normal [3-3] accounting principle will apply to the larger commercial and we will get launch through here in the second quarter. Andy Stapp - Riley & Company: Okay. That's it for me. My other questions have been asked.

Hey, Andy, let me follow-up on -- you have the couple of components there and I am looking at a 13-month trailing of our 30 to 60, 60 to 90 and 90 plus and [where they just] strong consistency in our mortgage portfolio and in our consumer loan portfolio? Andy Stapp - Riley & Company: Okay, great.

And we'll take our next question with Charlie Smith from Fort Pitt Capital. Please go ahead.

Good morning, guys.

Good morning, Charlie.

It looks like your balance sheet became a little more asset sensitive last year. What was the trend during the first quarter?

I won't agree with you there, but we move in at snail pace moderation and our [out go] policy is to maintain very close to neutral. But as you get to the lower rates that we are right now, we don't mind to be a little more asset sensitive and taking advantage of the swap programs and some of those that books some variable rate asset seems like a good strategy to us but all within moderation.

Okay. It doesn't appear like you guys have begun to benefit it all from the Fed funds rate cut. Is that something that we could reasonably expect or not?

You know it's nice to see a slopping yield curve, but it certainly wasn't a benefit here and the way we got there in the first quarter.

All right.

Managing the rates down on the deposits is the challenge in the competitive environment where a lot of banks, and you know you've [net city] and always in a market that are looking to grab deposit. So, there is some higher rates out there. We are real competitive than we are in the pack, and we continue to manage our deposit growth consistent with our asset, where the asset is yield. That said, I have always expected our hope that there will be some sensibility here in the back half of the year that allows the margin to may be expand, but right now we are fighting to keep it flat.

Okay. So, may be gave up a certain amount in terms of rate paid to competing [net city] but you pick it up on potentially on the asset side

Yeah, we are managing those sides very actively.

Thanks.

And we've no further questions at this time. I would like to turn it back over to management for any additional or closing remarks.

Thank you again for joining us today. Just to remind everybody that the replay of the call will be available from 2 PM Eastern Time today until midnight Eastern Time on May 2nd 2008. A transcript of the call will be posted to our shareholder Investor Relations section of F.N.B. Corporation's website as www.fnb.corporation.com. And that really concludes our call. We thank all of you for your time and your participation and have a good weekend.

Once again ladies and gentlemen, this will conclude today's conference. We thank you for you participation. You may now disconnect.