Business briefs
Surma named Cleveland Fed chair
Former U.S. steel chairman and CEO John P. Surma has been named chairman of the Federal Reserve Bank of Cleveland for 2017, the bank said. Mr. Surma had been deputy chairman for the last two years. That job is being filled by Dawne S. Hickton, former president and CEO of RTI International Metals. Ms. Hickton was named to the bank’s board last year.
FNB says quarterly profits rose 33 percent
FNB Corp., parent company of First National Bank of Pennsylvania, said it earned $49.3 million in the fourth quarter, up 33 percent from $37.1 million a year earlier. Per-share profits rose 9.5 percent to 23 cents from 21 cents. For all of 2016, the Pittsburgh-based bank earned $162.9 million, up 7.5 percent from $151.6 million in 2015. Per-share earnings fell 9.3 percent to 78 cents, down from 86 cents. Results for 2016 included 12 cents per share in merger-related expenses, FNB said.
Apollo Bancorp reports a rise in profits
Apollo Bancorp reported net income for the fourth quarter rose to $414,000, or 79 cents per share, up from $319,000, or 65 cents, in the same quarter a year earlier. For all of 2016, net income was $1.42 million, or $2.82 per share, up from $1.4 million, or $2.81, in 2015.
American Airlines to offer new no-frill fare
American Airlines said Wednesday that it’s introducing a no-frills basic economy fare that offers low prices at the cost of amenities like
carry-on bags and advance seat assignments. The company said it will begin selling basic economy fares in 10 markets in February and expand it later this year. American did not disclose the launch markets or routes. The new type of fare is designed to compete with ultralow-cost carriers like Spirit and Frontier airlines, which often offer the lowest ticket prices around but charge fees for nearly everything else.
Agency sues largest student-loan servicer
The Consumer Financial Protection Bureau sued the nation’s largest servicer of student loans, alleging that Navient Corp. cheated borrowers, resulting in higher payments for Americans struggling to payback their student loans. The federal consumer agency said that Navient, formerly part of Sallie Mae, “failed to provide the most basic functions of adequate student loan servicing at every stage of repayment for both private and federal loans.” Navient, the agency claimed, provided borrowers with inaccurate information, ignored complaints and processed payments incorrectly. In response, Navient called the bureau’s allegations “unfounded” and questioned the timing of the lawsuit, noting it came just days before the Obama administration is set to leave office.