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F.N.B. Corp (FNB)
NYSE:FNB
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F.N.B.
(NYSE:FNB)
78Outperform
Positive Factors
Capital Position
FNB's improved capital position and its above average growth profile justify the shares trading at a premium.
Fee Income Growth
Fee income growth is seen as the next catalyst for FNB's stock re-rating.
Growth Potential
FNB is seen as an attractive value relative to its growth potential.
Negative Factors
Capital Levels
FNB is not rewarded for its improved capital position, as investor caution persists due to capital levels.
CET1 Ratio
FNB's CET1 ratio is 130bp below the peer median, causing investor caution.
Expenses
Expenses were the main negative, with fourth quarter core expenses higher than expected, boosted by non-repeatable healthcare costs.
F.N.B. (FNB) vs. S&P 500 (SPY)
Market Cap
$4.52B
Dividend Yield3.82%
Average Volume (3M)2.92M
Price to Earnings (P/E)9.9
Beta (1Y)1.31
Revenue Growth15.34%
EPS Growth-3.89%
CountryUS
Employees4,104
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.26
Shares Outstanding359,461,460
10 Day Avg. Volume3,393,320
30 Day Avg. Volume2,921,105
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.05
Price to Cash Flow (P/CF)3.70
P/FCF Ratio2.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.75Price Target Upside50.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
F.N.B. Business Overview & Revenue Model
Company DescriptionF.N.B. Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small- to medium-sized businesses. The company operates through three segments: Community Banking, Wealth Management, and Insurance. It offers commercial banking solutions, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. The company also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services; and wealth management services comprising personal and corporate fiduciary services comprising administration of decedent and trust estates; securities brokerage and investment advisory services, mutual funds, and annuities; and commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. As of December 31, 2021, it operated 334 banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.
How the Company Makes MoneyFNB makes money primarily through the interest income generated from its lending activities, including personal loans, commercial loans, and mortgages. The spread between the interest rates it charges on loans and the rates it pays on deposits is a significant source of revenue. Additionally, FNB earns non-interest income from service charges on deposit accounts, fees from card services, and wealth management services. The company also generates revenue through its insurance services and by providing investment advisory services. Strategic partnerships and acquisitions in the financial sector further contribute to its earnings by expanding its customer base and enhancing its service offerings.
F.N.B. Financial Statement Overview
Summary
F.N.B. demonstrates strong revenue growth and profitability, supported by efficient cash flow management and a conservative balance sheet. Despite the absence of some operating metrics like EBITDA, the company's financial health appears solid with a focus on stability and prudent leverage. Continued growth in revenue and cash flow, combined with operational efficiency, positions F.N.B. well in the banking industry.Income Statement
F.N.B. shows a strong and consistent growth in revenue over the years with a Revenue Growth Rate of 0.95% in the latest year. The Gross Profit Margin is impressive at 100% due to the nature of the banking industry, while the Net Profit Margin slightly decreased to 20.66% this year. The EBIT Margin is extraordinarily high at 99.07%, indicating strong operational efficiency. However, the absence of EBITDA data limits a full evaluation of operating profitability.82
Very Positive
Balance Sheet
The balance sheet of F.N.B. is solid with a reasonable Debt-to-Equity Ratio of 0.20, suggesting a conservative leverage approach. The Return on Equity stands at 7.38%, indicating moderate profitability for shareholders. The Equity Ratio is 12.96%, reflecting a stable capital structure. The decreasing total debt over the years adds to the financial stability, though the growth in stockholders' equity has been moderate.75
Positive
Cash Flow
The cash flow statement is robust, with Free Cash Flow showing significant growth at 91.64% over the last year. The Operating Cash Flow to Net Income Ratio is 1.38, indicating efficient conversion of net income into cash. The Free Cash Flow to Net Income Ratio is also noteworthy at 1.38, highlighting strong cash generation capabilities relative to profits. Overall, cash flow management appears strong and stable.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.25B | 2.23B | 1.44B | 1.24B | 1.22B | Gross Profit |
| 2.25B | 2.23B | 1.44B | 1.24B | 1.22B | EBIT |
| 2.23B | 0.00 | 717.91M | 503.10M | 343.49M | EBITDA |
| 0.00 | 1.00M | 616.00M | 561.00M | 390.00M | Net Income Common Stockholders |
| 465.33M | 485.00M | 439.00M | 405.00M | 286.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.88B | 4.83B | 4.95B | 6.92B | 4.85B | Total Assets |
| 48.63B | 46.16B | 43.73B | 39.51B | 37.35B | Total Debt |
| 1.26B | 4.48B | 2.46B | 2.22B | 2.90B | Net Debt |
| 840.00M | 2.90B | 791.00M | -1.27B | 1.52B | Total Liabilities |
| 42.32B | 40.11B | 38.07B | 34.36B | 32.40B | Stockholders Equity |
| 6.30B | 6.05B | 5.65B | 5.15B | 4.96B |
| Cash Flow | Free Cash Flow | |||
| 642.00M | 335.00M | 1.12B | 472.00M | 72.00M | Operating Cash Flow |
| 642.00M | 423.00M | 1.22B | 530.00M | 113.00M | Investing Cash Flow |
| -1.70B | -2.26B | -3.06B | -153.00M | -1.82B | Financing Cash Flow |
| 1.90B | 1.74B | 18.00M | 1.73B | 2.49B |
F.N.B. Technical Analysis
Negative
11.80
Price Trends
14.06
Negative
14.81
Negative
14.45
Negative
Market Momentum
-0.25
Negative
38.37
Neutral
22.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNB, the sentiment is Negative. The current price of 11.8 is below the 20-day moving average (MA) of 13.10, below the 50-day MA of 14.06, and below the 200-day MA of 14.45, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNB.
F.N.B. Risk Analysis
F.N.B. disclosed 39 risk factors in its most recent earnings report. F.N.B. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
F.N.B. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.52B | 9.93 | 7.53% | 3.82% | 15.34% | -3.89% | |
77 Outperform | $4.59B | 6.59 | 13.21% | 4.00% | 23.25% | 4.64% | |
75 Outperform | $4.31B | 9.46 | 11.54% | 3.57% | 7.67% | 17.51% | |
68 Neutral | $4.80B | 12.37 | 5.38% | 5.13% | 6.09% | -26.94% | |
67 Neutral | $4.71B | 24.75 | 6.09% | 3.49% | 11.66% | -16.50% | |
66 Neutral | $4.67B | 8.71 | 10.55% | 6.48% | 7.84% | 54.79% | |
64 Neutral | $13.46B | 9.44 | 9.34% | 4.72% | 16.14% | -8.80% |
* Financial Sector Average
Performance Comparison
FNB
F.N.B.
11.80
-0.91
-7.16%
OZK
Bank OZK
37.63
-4.17
-9.98%
COLB
Columbia Banking System
20.71
3.81
22.54%
GBCI
Glacier Bancorp
38.55
2.93
8.23%
HWC
Hancock Whitney
46.62
4.81
11.50%
VLY
Valley National Bancorp
8.04
1.04
14.86%
F.N.B. Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -25.27% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong financial performance, record noninterest income, and significant loan and deposit growth. Despite challenges in managing deposit costs and increased noninterest expenses, F.N.B. has optimized its balance sheet and improved its capital position. The company continues to expand its digital capabilities and maintain strong credit quality.Highlights
Strong Financial Performance
F.N.B. reported fourth quarter operating net income of $136.7 million, or $0.38 per diluted common share, with a full year 2024 operating EPS of $1.39. This reflects successful execution of strategic objectives.
Record Noninterest Income
Noninterest income achieved a record level of $350 million, highlighting F.N.B.'s diversified business model.
Loan and Deposit Growth
F.N.B. generated year-over-year loan growth of 5% and robust deposit growth of 6.9%, outpacing the industry.
Balance Sheet Optimization
F.N.B. completed the sale of securities yielding 1.41% and reinvested the proceeds into securities yielding 4.78%, a 337 basis point improvement.
Improved Capital Position
Achieved a record CET1 ratio of 10.6% and increased tangible book value per share by 11% to a record of $10.49.
Expansion of Digital and Fintech Capabilities
Invested in fintech to enhance consumer onboarding and financial product offerings, improving customer acquisition and primacy.
Credit Quality and Risk Management
Asset quality metrics remained stable with strong credit performance and proactive credit risk management.
Lowlights
Higher Noninterest Expenses
Fourth quarter noninterest expenses increased due to renewable energy tax credit transaction expenses and higher healthcare costs.
Deposit Cost Challenges
While deposit growth was strong, managing overall cost of funds remains a challenge, with total deposit cost at 2.2%.
Company Guidance
During the FNB Fourth Quarter 2024 earnings call, the management provided comprehensive guidance for the upcoming year. They reported an operating net income of $136.7 million, or $0.38 per diluted share, contributing to a full-year 2024 operating EPS of $1.39. The company achieved notable growth, with year-over-year loan growth of 5% and deposit growth of 6.9%, alongside record noninterest income of $350 million. The balance sheet was further strengthened with a record CET1 ratio of 10.6% and a tangible book value per share increased by 11% to $10.49. The guidance for 2025 expects mid-single-digit growth in loans and deposits, net interest income between $1.345 billion and $1.385 billion, noninterest income of $350 to $370 million, and noninterest expenses between $965 million and $985 million. The effective tax rate is projected to be between 21% and 22%. These projections consider two anticipated Federal Reserve rate cuts in March and June, highlighting FNB's strategic focus on optimizing its balance sheet, driving shareholder value, and expanding its capital markets and technology offerings.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.