F.N.B. (FNB) Q2 2024 earnings summary

Executive summary

• Net income available to common shareholders was $123 million ($0.34 per diluted share), up sequentially but down year-over-year, with pre-provision net revenue up 4.4% sequentially and tangible book value per share up 12.4% year-over-year to a record $9.88.

• Loan and deposit growth continued, with loans up 3.6% sequentially and 7.7% year-over-year, and deposits up 0.7% sequentially and 3.5% year-over-year, driven by digital initiatives and strong commercial activity.

• Asset quality remained robust, with non-performing loans and OREO at 0.33% of total loans, net charge-offs at 0.09% annualized, and reserve coverage at 1.24%.

• Non-interest income increased 9.5% year-over-year to $87.9 million, led by mortgage banking, wealth management, and treasury management.

• The company maintains a focus on risk management, neutral interest rate positioning, and proactive credit monitoring.

Financial highlights

• Net interest income was $315.9 million, down 1% sequentially and 4.1% year-over-year, as higher funding costs offset asset growth.

• Net interest margin (FTE, non-GAAP) was 3.09%, down 9 bps sequentially and 28 bps year-over-year.

• Efficiency ratio (non-GAAP) was 54.4%, improved from Q1 but higher than a year ago.

• Provision for credit losses was $20.2 million, up from Q1 and a year ago, supporting loan growth.

• CET1 capital ratio was 10.2%, and tangible common equity to tangible assets was near 8%.

Outlook and guidance

• Full-year 2024 guidance: mid-single digit loan growth, low-single digit deposit growth, net interest income of $1.27–$1.29 billion, non-interest income of $350–$355 million, provision expense $75–$95 million, non-interest expense $900–$915 million, and effective tax rate 21–22%.

• Management expects to remain well-positioned for a better rate environment in 2025, with strong capital, asset quality, and market share gains.