FNB Corp. Reports Record $321M in Total 3Q Revenue

PITTSBURGH, Pa. — F.N.B. Corp., the parent company of First National Bank, announced third-quarter total revenue of $321.3 million, or 34 cents per diluted common share.

Third-quarter net income available to common stockholders was $109.5 million, up from both the second quarter’s $99.4 million, or 31 cents per share, and the year-ago quarter’s mark of $80.8 million, or 25 cents per share.

“F.N.B. Corporation delivered strong fundamental performance resulting in record revenue of $321 million and earnings of $0.34 per share,” said F.N.B. Corporation Chairman, President and CEO Vincent J. Delie, Jr. in a statement. “Our financial results were highlighted by a return on tangible common equity of 17% and sequential tangible book value per share growth of 11% annualized, to $8.42. The team has done a remarkable job executing our strategic plan as demonstrated by our growing diversity of revenue sources and our ability to have two consecutive quarters of high-single digit loan growth, excluding PPP. We are particularly excited by growth in our digital strategy bolstering our presence that is no longer limited by our physical locations. As we head into the end of the year, we are well-positioned to benefit from our investments in technology and continued strong customer activity across all of our markets.”

Among the highlights FNB noted in its quarterly earnings report are:

  • Period-end total loans and leases, excluding Paycheck Protection Program (PPP) loans, increased $867.6 million, or 3.7% over the same period in 2020. Commercial loans increased $622 million, or 4.1%, and consumer loans increased $246 million, or 3.0%, inclusive of the sale of $0.5 billion in indirect auto loans in November 2020.
  • Total period-end loans and leases decreased $973 million, or 3.8%, due to a commercial loan decrease of $1.2 billion, or 6.9%, driven by PPP loan forgiveness. PPP loans totaled $0.7 billion at Sept. 30, 2021, reflecting $2.9 billion in SBA loan forgiveness processed to date.
  • Total average deposits grew $2.5 billion, or 8.6%, reflecting inflows from the PPP and government stimulus activities, organic growth in new and existing customer relationships, as well as current customer preferences to maintain larger balances in their deposit accounts than before the pandemic.
  • The loan-to-deposit ratio was 78.6% at September 30, 2021, compared to 89.1% at September 30, 2020, as deposit growth outpaced loan growth.

Net interest income was $232.4 million, up 2.3% from the third quarter of 2020. FNB attributes the increase to higher PPP income, an improved funding mix and lower cost of interest-bearing deposits offsetting lower yields on earnings assets.

Non-interest income was a record $88.9 million, up 11% from a year ago, driven by strong contributions from capital markets and wealth management, as well as increased Small Business Administration (SBA) premium income and higher service charges reflecting increased customer activity, partially offset by lower contributions from mortgage banking given its record levels in the third quarter of 2020.

Nonperforming assets were $118 million, down from $198 million a year ago, a 40.4% decline.

Key performance ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2020 include:

  • Net interest margin: 2.72%, 2.7%, 2.79%
  • Return on average assets: 1.14%, 1.06%, 0.88%
  • Efficiency ratio: 55.43%, 56.83%, 55.26%
  • Return on average equity: 8.74%, 8.14%, 6.7%

Copyright 2022 The Business Journal, Youngstown, Ohio.