We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
F.N.B. Corp Q4 Earnings Beat on Higher NII & Fee Income, Stock Dips
Read MoreHide Full Article
F.N.B. Corporation’s (FNB - Free Report) fourth-quarter 2024 adjusted earnings per share (EPS) of 38 cents beat the Zacks Consensus Estimate of 33 cents. Moreover, the bottom line was flat with the prior-year quarter’s level.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Results were aided by growth in net interest income (NII) and non-interest income. Also, higher loans and deposits are other positives. However, higher provisions and adjusted expenses were the undermining factors. Shares of FNB lost 2.3% in Wednesday’s trading session in light of these negatives.
After considering significant items, the net income available to its common stockholders was $109.9 million, up from $50.8 million year over year. Our estimate for the metric was $114.7 million.
For 2024, adjusted earnings were $1.39 per share, surpassing the Zacks Consensus Estimate of $1.34. However, the bottom line declined 11.5% from 2023. The net income available to its common stockholders (GAAP) was $459.3 million, down 3.7% from the previous year.
FNB’s Revenues Improve, Expenses Rise
Quarterly net revenues were $373.1 million, up 10.7% from the year-earlier quarter. However, the top line missed the Zacks Consensus Estimate of $408 million.
For 2024, net revenues were $1.60 billion, up 1.7% from 2023. The top line lagged the Zacks Consensus Estimate of 1.63 billion.
NII was $322.2 million, down marginally from the prior-year quarter’s actual. The fall was mainly due to higher deposit costs, partly offset by growth in earning assets and higher yields on investment securities. Our estimate for NII was pegged at $318.9 million.
Net interest margin (FTE basis) (non-GAAP) contracted 17 basis points (bps) year over year to 3.04%.
Non-interest income was $50.9 million, up from $13.1 million in the prior year quarter. This improvement was driven by a rise in almost all fee income components, partly offset by a fall in capital markets income, mortgage banking operations income, lower dividends on non-marketable equity securities, and a decline in interchange and card transaction fees. Our estimate for the metric was $88.6 million.
Non-interest expenses were $248.2 million, down 6.5% year over year. Our estimate for the same was $231 million. After excluding significant items impacting earnings, adjusted expenses rose 13.4%.
As of Dec. 31, 2024, the common equity Tier 1 (CET1) ratio was 10.6% compared with 10.0% in the prior-year quarter.
At the end of the fourth quarter, average loans and leases were $33.8 billion, up marginally on a sequential basis. Average deposits totaled $37 billion, which was up 3.8%.
F.N.B. Corp’s Credit Quality Deteriorates
FNB’s provision for credit losses was $22.3 million, jumping 68.1% from the prior-year quarter’s level. Our estimate for provisions was $29.6 million.
The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO increased 14 bps to 0.48%. Also, net charge-offs to total average loans were 0.24%, up 14 bps from the prior-year quarter’s level.
Further, total delinquency increased 13 bps to 0.83%.
Our Take on FNB Stock
FNB’s solid liquidity position bodes well for the future. The company’s top line is expected to benefit from its efforts to increase fee income, diverse revenue streams, relatively high rates and opportunistic acquisitions. However, persistently rising expenses, higher funding costs and significant commercial loan exposures amid a challenging backdrop are expected to hurt profits in the near term.
F.N.B. Corporation Price, Consensus and EPS Surprise
First Horizon Corporation’s (FHN - Free Report) fourth-quarter 2024 adjusted EPS (excluding notable items) of 43 cents surpassed the Zacks Consensus Estimate of 38 cents. This compares favorably with the 32 cents reported in the year-ago quarter.
FHN’s results benefited from a rise in NII and a decline in expenses. Also, lower provisions were another positive. However, a fall in fee income and a deteriorating capital position were major headwinds.
Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2024 EPS of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter.
The results benefited from the increase in non-interest income and NII. Lower expenses and provisions were other positives. However, the decline in total loans was a headwind for HWC.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
F.N.B. Corp Q4 Earnings Beat on Higher NII & Fee Income, Stock Dips
F.N.B. Corporation’s (FNB - Free Report) fourth-quarter 2024 adjusted earnings per share (EPS) of 38 cents beat the Zacks Consensus Estimate of 33 cents. Moreover, the bottom line was flat with the prior-year quarter’s level.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Results were aided by growth in net interest income (NII) and non-interest income. Also, higher loans and deposits are other positives. However, higher provisions and adjusted expenses were the undermining factors. Shares of FNB lost 2.3% in Wednesday’s trading session in light of these negatives.
After considering significant items, the net income available to its common stockholders was $109.9 million, up from $50.8 million year over year. Our estimate for the metric was $114.7 million.
For 2024, adjusted earnings were $1.39 per share, surpassing the Zacks Consensus Estimate of $1.34. However, the bottom line declined 11.5% from 2023. The net income available to its common stockholders (GAAP) was $459.3 million, down 3.7% from the previous year.
FNB’s Revenues Improve, Expenses Rise
Quarterly net revenues were $373.1 million, up 10.7% from the year-earlier quarter. However, the top line missed the Zacks Consensus Estimate of $408 million.
For 2024, net revenues were $1.60 billion, up 1.7% from 2023. The top line lagged the Zacks Consensus Estimate of 1.63 billion.
NII was $322.2 million, down marginally from the prior-year quarter’s actual. The fall was mainly due to higher deposit costs, partly offset by growth in earning assets and higher yields on investment securities. Our estimate for NII was pegged at $318.9 million.
Net interest margin (FTE basis) (non-GAAP) contracted 17 basis points (bps) year over year to 3.04%.
Non-interest income was $50.9 million, up from $13.1 million in the prior year quarter. This improvement was driven by a rise in almost all fee income components, partly offset by a fall in capital markets income, mortgage banking operations income, lower dividends on non-marketable equity securities, and a decline in interchange and card transaction fees. Our estimate for the metric was $88.6 million.
Non-interest expenses were $248.2 million, down 6.5% year over year. Our estimate for the same was $231 million. After excluding significant items impacting earnings, adjusted expenses rose 13.4%.
As of Dec. 31, 2024, the common equity Tier 1 (CET1) ratio was 10.6% compared with 10.0% in the prior-year quarter.
At the end of the fourth quarter, average loans and leases were $33.8 billion, up marginally on a sequential basis. Average deposits totaled $37 billion, which was up 3.8%.
F.N.B. Corp’s Credit Quality Deteriorates
FNB’s provision for credit losses was $22.3 million, jumping 68.1% from the prior-year quarter’s level. Our estimate for provisions was $29.6 million.
The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO increased 14 bps to 0.48%. Also, net charge-offs to total average loans were 0.24%, up 14 bps from the prior-year quarter’s level.
Further, total delinquency increased 13 bps to 0.83%.
Our Take on FNB Stock
FNB’s solid liquidity position bodes well for the future. The company’s top line is expected to benefit from its efforts to increase fee income, diverse revenue streams, relatively high rates and opportunistic acquisitions. However, persistently rising expenses, higher funding costs and significant commercial loan exposures amid a challenging backdrop are expected to 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, FNB 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
First Horizon Corporation’s (FHN - Free Report) fourth-quarter 2024 adjusted EPS (excluding notable items) of 43 cents surpassed the Zacks Consensus Estimate of 38 cents. This compares favorably with the 32 cents reported in the year-ago quarter.
FHN’s results benefited from a rise in NII and a decline in expenses. Also, lower provisions were another positive. However, a fall in fee income and a deteriorating capital position were major headwinds.
Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2024 EPS of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter.
The results benefited from the increase in non-interest income and NII. Lower expenses and provisions were other positives. However, the decline in total loans was a headwind for HWC.