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

Core Viewpoint - F.N.B. Corporation reported fourth-quarter 2024 adjusted earnings per share (EPS) of 38 cents, exceeding the Zacks Consensus Estimate of 33 cents, while remaining flat compared to the prior-year quarter [1][2]. Financial Performance - The net income available to common stockholders was $109.9 million, a significant increase from $50.8 million year over year, although it fell short of the estimate of $114.7 million [3]. - For 2024, adjusted earnings were $1.39 per share, surpassing the Zacks Consensus Estimate of $1.34, but reflecting an 11.5% decline from 2023 [3]. - Quarterly net revenues reached $373.1 million, up 10.7% from the previous year, but missed the Zacks Consensus Estimate of $408 million [4]. - For 2024, net revenues totaled $1.60 billion, a 1.7% increase from 2023, yet also lagged behind the Zacks Consensus Estimate of $1.63 billion [4]. Income and Expenses - Net interest income (NII) was $322.2 million, slightly down from the prior-year quarter, primarily due to higher deposit costs, although it was better than the estimate of $318.9 million [5]. - Non-interest income improved to $50.9 million from $13.1 million in the prior year, driven by increases in various fee income components, despite declines in capital markets income and other areas [6]. - Non-interest expenses were $248.2 million, down 6.5% year over year, but adjusted expenses rose 13.4% after excluding significant items [7]. Credit Quality - The provision for credit losses was $22.3 million, a 68.1% increase from the prior-year quarter, which was lower than the estimate of $29.6 million [8]. - The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO increased by 14 basis points to 0.48% [8]. - Total delinquency rose by 13 basis points to 0.83% [8]. Future Outlook - The company's liquidity position is solid, and it is expected to benefit from efforts to increase fee income and diverse revenue streams [10]. - However, rising expenses, higher funding costs, and significant commercial loan exposures may negatively impact profits in the near term [10].