F.N.B. Corp Q4 Earnings Beat on Higher NII & Fee Income, Stock Dips

F.N.B. Corporation’s FNB 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 RiseQuarterly 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 DeterioratesFNB’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 StockFNB’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 QuoteCurrently, 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 BanksFirst Horizon Corporation’s FHN 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 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Horizon Corporation (FHN): Free Stock Analysis Report F.N.B. Corporation (FNB): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks