F N B Corp (FNB) Q3 2024 Earnings Call Highlights: Strong Financial Performance and Strategic ...

GuruFocus News
5 min read

In This Article:

  • Operating Net Income: $122 million or $0.34 per diluted common share.

  • Revenue Growth: 2.3% increase in total revenue.

  • Common Equity Tier 1 (CET1) Ratio: Record high of 10.4%.

  • Tangible Book Value Growth: 15% year-over-year increase.

  • Operating Return on Average Tangible Common Equity: 14%.

  • Total Loans: Nearly $33.7 billion, a 4.6% annualized linked quarter increase excluding loan sale.

  • Total Deposits: $36.8 billion, a 5.1% increase from the second quarter.

  • Loan-to-Deposit Ratio: Improved to 91.7%, a decrease of nearly 5 percentage points from the last quarter.

  • Noninterest Income: All-time high of $90 million.

  • Operating Noninterest Expense: $234 million.

  • Efficiency Ratio: 55.2%.

  • Net Interest Income: $323.3 million, a 2.4% increase from the prior quarter.

  • Net Interest Margin: 3.08%.

  • Provision Expense: $22.9 million.

  • Asset Quality Metrics: Total delinquency at 79 basis points, NPLs and OREO at 39 basis points.

  • Net Charge-Offs: 25 basis points.

  • Criticized Loans: Down 22 basis points on a linked quarter basis.

Release Date: October 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • F N B Corp (NYSE:FNB) reported a strong third quarter with operating net income of $122 million or $0.34 per diluted share, demonstrating robust financial performance.

  • The company achieved significant deposit growth, with total deposits increasing by 5.1% or $1.8 billion from the previous quarter, highlighting successful deposit initiatives.

  • F N B Corp (NYSE:FNB) improved its loan-to-deposit ratio to 91.7%, a decrease of nearly 5 percentage points from the last quarter, showcasing effective balance sheet management.

  • The company reported a record CET1 ratio of 10.4%, indicating a strengthened capital position.

  • F N B Corp (NYSE:FNB) gained market share in several MSAs, achieving a number two traditional retail deposit share position in Pittsburgh, despite competition from larger banks.

Negative Points

  • Operating non-interest expense increased to $234 million, driven by higher salaries and benefits, which could impact profitability if not managed effectively.

  • The company experienced a slight increase in total delinquency, finishing the quarter at 79 basis points, up 15 basis points from the prior quarter.

  • Net charge-offs totaled 25 basis points, reflecting some pressure on asset quality.

  • The mix of non-interest-bearing deposits to total deposits decreased to 27% from 29% last quarter, indicating a shift towards more costly interest-bearing deposits.

  • F N B Corp (NYSE:FNB) faced a $11.6 million loss on the indirect auto loan sale, which impacted earnings despite being part of balance sheet management strategies.

Recommended Stories