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F.N.B. Corp (FNB) Up 3.2% as Q1 Earnings Meet Estimates
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Shares of F.N.B. Corporation (FNB - Free Report) gained 3.2% following the release of its first-quarter 2023 results. Adjusted earnings per share of 40 cents were in line with the Zacks Consensus Estimate. The bottom line reflects a 53.8% rise from the prior-year quarter. Our estimate for earnings was 37 cents.
Results were primarily aided by a rise in net interest income (NII), non-interest income higher rates and decent loan demand. Further, the company recorded lower provisions during the quarter. However, an increase in operating expenses was a headwind.
After considering significant items, the net income available to common stockholders was $144.5 million, up from $51 million in the year-ago quarter. Our estimate for the metric was $134.9 million.
Revenues Improve, Operating Expenses Rise
Net revenues (GAAP basis) were $416 million, up 5% from the year-earlier quarter. The top line also beat the Zacks Consensus Estimate of $409.8 million. Our estimate for revenues was $407.7 million.
Quarterly NII was $336.7 million, up 43.8%. Our estimate for NII was $335.6 million.
The net interest margin (FTE basis) (non-GAAP) expanded 95 basis points (bps) year over year to 3.56%.
Non-interest income was $79.4 million, up 1.4%. Our estimate for the metric was $72.0 million.
Non-interest expenses were $219.9 million, down 3.3%. Our estimate for the same was $211.4 million. Operating non-interest expenses totaled $217.9 million, rising 11.9%.
As of Mar 31, 2023, the common equity Tier 1 (CET1) ratio was 10% was in line with the year-earlier quarter.
At the end of the first quarter, average loans and leases were $30.4 billion, up 3.6% sequentially. Average deposits totaled $34.2 billion, down 1.7% from the earlier quarter.
Credit Quality – A Mixed Bag
F.N.B. Corp’s provision for credit losses was $14.1 million, down 21.7% from the prior-year quarter. The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO declined 1 bps to 0.38%. Total delinquency decreased 6 bps to 0.60%.
In the reported quarter, net charge-offs to total average loans were 0.18%, up 15 bps.
Share Repurchase Update
During the reported quarter, F.N.B. Corp repurchased 850,000 shares at a weighted average price of $13.78 per share.
Our Take
F.N.B. Corp’s solid liquidity position bodes well for the future. Its top line is expected to continue to benefit from efforts to increase fee income and opportunistic acquisitions. However, profits are likely to suffer from steadily rising costs brought on by digitization and strategic buyouts.
F.N.B. Corporation Price, Consensus and EPS Surprise
Hancock Whitney Corporation’s (HWC - Free Report) first-quarter 2023 earnings of $1.45 per share met the Zacks Consensus Estimate. The bottom line rose 3.6% from the prior-year quarter. Our estimate for earnings was $1.38 per share.
HWC’s results benefited from higher NII, a rise in loan balance and increasing interest rates. However, lower non-interest income, higher expenses and a rise in provisions were concerning.
Commerce Bancshares Inc.’s (CBSH - Free Report) first-quarter 2023 earnings per share of 95 cents surpassed the Zacks Consensus Estimate of 92 cents. The bottom line increased 3.3% from the prior-year quarter.
CBSH’s results benefited from an increase in NII, driven by a rise in loan balance and higher interest rates. Also, non-interest income grew during the quarter.
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F.N.B. Corp (FNB) Up 3.2% as Q1 Earnings Meet Estimates
Shares of F.N.B. Corporation (FNB - Free Report) gained 3.2% following the release of its first-quarter 2023 results. Adjusted earnings per share of 40 cents were in line with the Zacks Consensus Estimate. The bottom line reflects a 53.8% rise from the prior-year quarter. Our estimate for earnings was 37 cents.
Results were primarily aided by a rise in net interest income (NII), non-interest income higher rates and decent loan demand. Further, the company recorded lower provisions during the quarter. However, an increase in operating expenses was a headwind.
After considering significant items, the net income available to common stockholders was $144.5 million, up from $51 million in the year-ago quarter. Our estimate for the metric was $134.9 million.
Revenues Improve, Operating Expenses Rise
Net revenues (GAAP basis) were $416 million, up 5% from the year-earlier quarter. The top line also beat the Zacks Consensus Estimate of $409.8 million. Our estimate for revenues was $407.7 million.
Quarterly NII was $336.7 million, up 43.8%. Our estimate for NII was $335.6 million.
The net interest margin (FTE basis) (non-GAAP) expanded 95 basis points (bps) year over year to 3.56%.
Non-interest income was $79.4 million, up 1.4%. Our estimate for the metric was $72.0 million.
Non-interest expenses were $219.9 million, down 3.3%. Our estimate for the same was $211.4 million. Operating non-interest expenses totaled $217.9 million, rising 11.9%.
As of Mar 31, 2023, the common equity Tier 1 (CET1) ratio was 10% was in line with the year-earlier quarter.
At the end of the first quarter, average loans and leases were $30.4 billion, up 3.6% sequentially. Average deposits totaled $34.2 billion, down 1.7% from the earlier quarter.
Credit Quality – A Mixed Bag
F.N.B. Corp’s provision for credit losses was $14.1 million, down 21.7% from the prior-year quarter. The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO declined 1 bps to 0.38%. Total delinquency decreased 6 bps to 0.60%.
In the reported quarter, net charge-offs to total average loans were 0.18%, up 15 bps.
Share Repurchase Update
During the reported quarter, F.N.B. Corp repurchased 850,000 shares at a weighted average price of $13.78 per share.
Our Take
F.N.B. Corp’s solid liquidity position bodes well for the future. Its top line is expected to continue to benefit from efforts to increase fee income and opportunistic acquisitions. However, profits are likely to suffer from steadily rising costs brought on by digitization and strategic buyouts.
F.N.B. Corporation Price, Consensus and EPS Surprise
F.N.B. Corporation price-consensus-eps-surprise-chart | F.N.B. Corporation Quote
Currently, the company 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) first-quarter 2023 earnings of $1.45 per share met the Zacks Consensus Estimate. The bottom line rose 3.6% from the prior-year quarter. Our estimate for earnings was $1.38 per share.
HWC’s results benefited from higher NII, a rise in loan balance and increasing interest rates. However, lower non-interest income, higher expenses and a rise in provisions were concerning.
Commerce Bancshares Inc.’s (CBSH - Free Report) first-quarter 2023 earnings per share of 95 cents surpassed the Zacks Consensus Estimate of 92 cents. The bottom line increased 3.3% from the prior-year quarter.
CBSH’s results benefited from an increase in NII, driven by a rise in loan balance and higher interest rates. Also, non-interest income grew during the quarter.