F.N.B. (FNB) Q3 2024 earnings summary

Executive summary

• Net income available to common stockholders for Q3 2024 was $110.1 million ($0.30 per diluted share), down from $143.3 million ($0.40) year-over-year; operating EPS (non-GAAP) was $0.34, excluding $11.6 million loss on indirect auto loan sale and $3.7 million software impairment.

• Record non-interest income of $89.7 million, up 10% year-over-year, with strong deposit growth and tangible book value per share (non-GAAP) up 15% year-over-year to $10.33.

• Deposit growth was $1.8 billion (5%) sequentially, improving the loan-to-deposit ratio to 91.7%.

• Sale of $431 million in indirect auto loans resulted in an $11.6 million loss, improving capital and loan-to-deposit ratios.

• Asset quality remains strong, with NPLs plus OREO at 0.39% of loans, and net charge-offs at 0.25% annualized.

Financial highlights

• Net interest income was $323.3 million, up 2.4% sequentially but down 1% year-over-year due to higher deposit costs; net interest margin (FTE, non-GAAP) was 3.08%, down 18 bps year-over-year.

• Non-interest expense was $249.4 million, up $22.8 million sequentially and $31.4 million year-over-year, including $15.3 million in significant items.

• Efficiency ratio (non-GAAP) was 55.2%, up from 51.7% year-over-year.

• Provision for credit losses was $23.4 million, with net charge-offs of $21.5 million (0.25% annualized of average loans).

• Total deposits reached $36.8 billion, up 5.1% or $1.8 billion from Q2, with non-interest-bearing deposits stable at 27% of total.

Outlook and guidance

• Management expects to maintain strong capital and liquidity positions, with regulatory capital ratios projected to remain above requirements even under adverse scenarios.

• 4Q24 net interest income expected between $310–$320 million; non-interest income $85–$90 million; non-interest expense $225–$235 million.

• Provision expense guidance for 4Q24 is $20–$30 million; full-year effective tax rate projected at 21–22%.

• Full-year 2024 guidance calls for mid-single digit growth in spot loans and deposits, assuming two 25 bps rate cuts in Q4.

• Continued focus on deposit growth, balance sheet optimization, and proactive credit risk management.