F.N.B. Corp (FNB) Stock Falls 1.8% After Q2 Earnings Miss

Core Viewpoint - F.N.B. Corporation (FNB) reported lower-than-expected second-quarter 2024 results, with adjusted earnings per share of 34 cents, missing the Zacks Consensus Estimate by one cent and reflecting a 12.8% decline from the prior-year quarter [1] Financial Performance - Net interest margin (FTE basis) contracted by 28 basis points year over year to 3.09% [2] - Quarterly net revenues were $403.8 million, down 1.4% from the year-earlier quarter and below the Zacks Consensus Estimate of $407.6 million [16] - Non-interest income increased by 9.5% to $87.9 million, driven by a rise in all fee income components, surpassing the estimate of $82.4 million [17] - Average loans and leases reached $33.3 billion, up 2.8% sequentially, while average deposits totaled $34.6 billion, an increase of 1.2% [18] Credit Quality - FNB's provision for credit losses was $20.2 million, up 9.2% from the prior-year quarter, exceeding the estimate of $19.5 million [4] - The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO decreased by 14 basis points to 0.33% [19] - Total delinquency decreased by 12 basis points to 0.63% [11] Expenses - Non-interest expenses rose by 6.9% year over year to $226.6 million, higher than the estimate of $220.6 million [10] - Adjusted expenses, excluding significant items, increased by 6.6% to $225.8 million [10] Capital Position - As of June 30, 2024, the common equity Tier 1 (CET1) ratio was 10.2%, compared to 10.1% in the prior-year quarter [3] Industry Comparison - Hancock Whitney Corp. (HWC) reported second-quarter 2024 earnings per share of $1.31, beating the Zacks Consensus Estimate of $1.19 but down from $1.35 in the prior-year quarter [7] - HWC's net income available to common stockholders was $123 million, down 12.4% year over year, slightly below the estimate of $124.4 million [8] - Non-interest income for HWC increased, but the decline in net interest income and higher expenses and provisions negatively impacted results [14]