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Shares of F.N.B. Corporation (FNB - Free Report) gained 1.2% in after-market trading following the release of its fourth-quarter and 2022 results. Adjusted earnings per share of 44 cents for the quarter outpaced the Zacks Consensus Estimate of 41 cents. The bottom line reflects a 46.7% rise from the prior-year quarter. Our estimate for earnings was 39 cents.
Results were primarily aided by a rise in net interest income (NII), higher fee income and solid loan demand. Higher interest rates supported growth in margins. However, increased expenses and rising provisions were the undermining factors.
After considering significant items, the net income available to common stockholders was $137.5 million or 38 cents per share, up from $96.5 million or 30 cents per share in the year-ago quarter. Our estimate for net income was $129.1 million.
Adjusted earnings per share of $1.40 for 2022 outpaced the Zacks Consensus Estimate of $1.36. The figure reflects a 12.9% rise from the prior-year period. Our estimate for earnings was $1.35. Net income (GAAP basis) was $431.1 million or $1.22 per share compared with $396.6 million or $1.23 per share in 2021. Our estimate for net income was $422.7 million.
Revenues Improve, Expenses Rise
Quarterly net revenues (GAAP basis) were $415.5 million, up 37.4% year over year. The top line also beat the Zacks Consensus Estimate of $396.3 million. Our estimate for revenues was $392.4 million.
Revenues for 2022 were $1.42 billion, up 17% year over year. The top line was almost in line with the Zacks Consensus Estimate of $1.43 billion. We had projected 2022 revenues of $1.42 billion.
Quarterly NII was $334.9 million, up 50% year over year. Growth in average earning assets, including the increase in average loans and leases from organic origination activity, and acquired Howard and Union loans, along with the re-pricing impact of the higher interest rate environment on earning asset yields, was partially offset by higher cost of interest-bearing deposit accounts. Our estimate for NII was $315.5 million.
The net interest margin (FTE basis) (non-GAAP) expanded 98 basis points (bps) year over year to 3.53%.
Non-interest income was $80.6 million, up 2.1%. The rise was primarily driven by an increase in service charges and capital markets income. Our estimate for the metric was $76.9 million.
Non-interest expenses were $211.1 million, up 16.3% year over year. Our estimate for the same was $212.6 million. Operating non-interest expenses totaled $195.8 million, rising 8.3%.
As of Dec 31, 2022, the common equity Tier 1 (CET1) ratio was 9.8% compared with 9.9% as of Dec 31, 2021.
At the end of the fourth quarter, average loans and leases were $29.4 billion, up 3.5% sequentially. Average deposits totaled $33.9 billion, up marginally from the end of the previous quarter.
Credit Quality Worsens
The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO increased 1 bp year over year to 0.39%. Total delinquency increased 10 bps to 0.71%.
F.N.B. Corp’s provision for credit losses was $28.6 million against a provision benefit of $2.4 million recorded in the prior-year quarter. In the reported quarter, the company recorded net charge-offs to total average loans of 0.16%, up 14 bps from the prior-year quarter.
Our Take
In December, F.N.B. Corp completed the acquisition of Greenville-based UB Bancorp. The acquisition bolstered the company’s presence in North Carolina and added “low-cost granular deposits,” which will likely be accretive to its financials amid the present economic backdrop.
F.N.B. Corp’s efforts to improve fee income and opportunistic acquisitions are expected to keep aiding the top line. Its solid liquidity position bodes well for the future. The company's capital deployment activities seem impressive, through which it will keep enhancing shareholder value. However, persistently rising expenses, owing to digitization and strategic buyouts, will likely hurt profits in the near term.
F.N.B. Corporation Price, Consensus and EPS Surprise
Hancock Whitney Corporation’s (HWC - Free Report) fourth-quarter 2022 earnings of $1.65 per share surpassed the Zacks Consensus Estimate of $1.63. The bottom line rose 6.5% from the prior-year quarter’s earnings of $1.55.
HWC’s results benefited from higher net interest income, supported by a rise in loan balance and increasing interest rates. However, lower non-interest income mainly due to higher mortgage rates was the undermining factor. Higher expenses and a rise in provisions were other concerns for HWC.
The PNC Financial Services Group, Inc.’s (PNC - Free Report) fourth-quarter 2022 adjusted earnings per share of $3.49 lagged the Zacks Consensus Estimate of $3.95. Also, the bottom line declined 5.2% year over year.
PNC’s results were primarily hurt by a decline in non-interest income and higher provisions. However, an increase in net interest income, supported by higher rates and loan growth, and a decline in expenses were tailwinds for PNC.
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F.N.B. Corp (FNB) Gains on Q4 Earnings Beat, Revenues Rise Y/Y
Shares of F.N.B. Corporation (FNB - Free Report) gained 1.2% in after-market trading following the release of its fourth-quarter and 2022 results. Adjusted earnings per share of 44 cents for the quarter outpaced the Zacks Consensus Estimate of 41 cents. The bottom line reflects a 46.7% rise from the prior-year quarter. Our estimate for earnings was 39 cents.
Results were primarily aided by a rise in net interest income (NII), higher fee income and solid loan demand. Higher interest rates supported growth in margins. However, increased expenses and rising provisions were the undermining factors.
After considering significant items, the net income available to common stockholders was $137.5 million or 38 cents per share, up from $96.5 million or 30 cents per share in the year-ago quarter. Our estimate for net income was $129.1 million.
Adjusted earnings per share of $1.40 for 2022 outpaced the Zacks Consensus Estimate of $1.36. The figure reflects a 12.9% rise from the prior-year period. Our estimate for earnings was $1.35. Net income (GAAP basis) was $431.1 million or $1.22 per share compared with $396.6 million or $1.23 per share in 2021. Our estimate for net income was $422.7 million.
Revenues Improve, Expenses Rise
Quarterly net revenues (GAAP basis) were $415.5 million, up 37.4% year over year. The top line also beat the Zacks Consensus Estimate of $396.3 million. Our estimate for revenues was $392.4 million.
Revenues for 2022 were $1.42 billion, up 17% year over year. The top line was almost in line with the Zacks Consensus Estimate of $1.43 billion. We had projected 2022 revenues of $1.42 billion.
Quarterly NII was $334.9 million, up 50% year over year. Growth in average earning assets, including the increase in average loans and leases from organic origination activity, and acquired Howard and Union loans, along with the re-pricing impact of the higher interest rate environment on earning asset yields, was partially offset by higher cost of interest-bearing deposit accounts. Our estimate for NII was $315.5 million.
The net interest margin (FTE basis) (non-GAAP) expanded 98 basis points (bps) year over year to 3.53%.
Non-interest income was $80.6 million, up 2.1%. The rise was primarily driven by an increase in service charges and capital markets income. Our estimate for the metric was $76.9 million.
Non-interest expenses were $211.1 million, up 16.3% year over year. Our estimate for the same was $212.6 million. Operating non-interest expenses totaled $195.8 million, rising 8.3%.
As of Dec 31, 2022, the common equity Tier 1 (CET1) ratio was 9.8% compared with 9.9% as of Dec 31, 2021.
At the end of the fourth quarter, average loans and leases were $29.4 billion, up 3.5% sequentially. Average deposits totaled $33.9 billion, up marginally from the end of the previous quarter.
Credit Quality Worsens
The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO increased 1 bp year over year to 0.39%. Total delinquency increased 10 bps to 0.71%.
F.N.B. Corp’s provision for credit losses was $28.6 million against a provision benefit of $2.4 million recorded in the prior-year quarter. In the reported quarter, the company recorded net charge-offs to total average loans of 0.16%, up 14 bps from the prior-year quarter.
Our Take
In December, F.N.B. Corp completed the acquisition of Greenville-based UB Bancorp. The acquisition bolstered the company’s presence in North Carolina and added “low-cost granular deposits,” which will likely be accretive to its financials amid the present economic backdrop.
F.N.B. Corp’s efforts to improve fee income and opportunistic acquisitions are expected to keep aiding the top line. Its solid liquidity position bodes well for the future. The company's capital deployment activities seem impressive, through which it will keep enhancing shareholder value. However, persistently rising expenses, owing to digitization and strategic buyouts, will likely hurt profits in the near term.
F.N.B. Corporation Price, Consensus and EPS Surprise
F.N.B. Corporation price-consensus-eps-surprise-chart | F.N.B. Corporation Quote
Currently, F.N.B. Corp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Hancock Whitney Corporation’s (HWC - Free Report) fourth-quarter 2022 earnings of $1.65 per share surpassed the Zacks Consensus Estimate of $1.63. The bottom line rose 6.5% from the prior-year quarter’s earnings of $1.55.
HWC’s results benefited from higher net interest income, supported by a rise in loan balance and increasing interest rates. However, lower non-interest income mainly due to higher mortgage rates was the undermining factor. Higher expenses and a rise in provisions were other concerns for HWC.
The PNC Financial Services Group, Inc.’s (PNC - Free Report) fourth-quarter 2022 adjusted earnings per share of $3.49 lagged the Zacks Consensus Estimate of $3.95. Also, the bottom line declined 5.2% year over year.
PNC’s results were primarily hurt by a decline in non-interest income and higher provisions. However, an increase in net interest income, supported by higher rates and loan growth, and a decline in expenses were tailwinds for PNC.