F.N.B. Corporation (FNB): history, ownership, mission, how it works & makes money

A Brief History of F.N.B. Corporation

Founded in 1864, F.N.B. Corporation has evolved from a local bank in Pennsylvania into a prominent financial institution serving customers across several states. The company has expanded its operations through strategic acquisitions, enhancing its product offerings and geographical footprint.

Recent Financial Performance

As of June 30, 2024, F.N.B. Corporation reported a net income available to common stockholders of $123.0 million, or $0.34 per diluted common share, compared to $140.4 million, or $0.39 per diluted common share for the same period in 2023. The year-to-date net income available to common stockholders for the six months ended June 30, 2024, was $239.4 million, or $0.66 per diluted common share, down from $284.9 million, or $0.78 per diluted common share in 2023.

Balance Sheet Highlights

As of June 30, 2024, F.N.B. Corporation's total assets reached $47.7 billion, an increase from $44.8 billion as of June 30, 2023. The company's total loans and leases grew to $39.4 billion, representing a 7.7% increase compared to the previous year.

Loan Growth and Deposit Trends

F.N.B. Corporation's loan growth was robust, with a 7.7% increase in total loans and leases compared to the prior year. Commercial loans rose by 7.2%, while consumer loans increased by 8.5%. Deposits also saw a significant rise, totaling $34.994 billion as of June 30, 2024, up from $34.711 billion at the end of 2023, driven primarily by an increase in time deposits.

Credit Quality and Allowance for Credit Losses

F.N.B. Corporation maintained strong credit quality metrics, with non-performing loans plus other real estate owned (OREO) to total loans and leases plus OREO at 0.33% as of June 30, 2024. The allowance for credit losses (ACL) was $418.8 million, representing 1.24% of total loans and leases.

Capital Position

The tangible common equity to tangible assets ratio stood at 7.86% as of June 30, 2024, reflecting a solid capital position to support ongoing growth. The company repurchased 250,000 shares of common stock during the second quarter of 2024 at a weighted average price of $13.56.

A Who Owns F.N.B. Corporation (FNB)

Major Shareholders

As of 2024, the ownership structure of F.N.B. Corporation (FNB) is characterized by a mix of institutional and retail investors. The following table provides a breakdown of the major shareholders:

Stock Performance

As of June 30, 2024, F.N.B. Corporation's stock performance has shown a slight decline in share price over the past year, reflecting broader market trends and interest rate fluctuations. The stock price at the end of the second quarter of 2024 was $13.56, compared to $15.00 a year prior.

Recent Financial Highlights

The following table summarizes key financial metrics for F.N.B. Corporation as of June 30, 2024:

Insider Ownership

Insider ownership remains relatively stable, with the following key executives and board members holding significant stakes:

Institutional Investor Activity

Institutional investors have shown continued interest in F.N.B. Corporation, with recent reports indicating significant holdings from prominent investment firms:

Recent Developments

The company has repurchased 250,000 shares during the second quarter of 2024 at an average price of $13.56 per share, indicating a commitment to enhance shareholder value while maintaining a robust capital position.

Market Trends

F.N.B. Corporation operates in a competitive banking environment, characterized by increasing interest rates and a focus on digital banking solutions. As of June 30, 2024, the bank's loan portfolio has shown growth, with total loans and leases amounting to $33.757 billion, an increase of 4.4% from the previous quarter.

Conclusion

The ownership landscape of F.N.B. Corporation is diverse, with institutional investors playing a significant role alongside retail and insider shareholders. The company's financial health, as reflected in its recent performance metrics, positions it well within the banking sector.

F.N.B. Corporation (FNB) Mission Statement

Overview of the Mission Statement

The mission of F.N.B. Corporation is to provide exceptional financial services that enhance the lives of their customers and communities, fostering growth and prosperity. The company focuses on a customer-centric approach, emphasizing integrity, innovation, and community engagement.

Financial Performance Metrics

As of June 30, 2024, F.N.B. Corporation reported significant financial metrics that reflect its operational effectiveness:

Strategic Focus Areas

• Customer Engagement: F.N.B. aims to deepen customer relationships through personalized service and innovative financial products.
• Community Development: The company is committed to investing in communities, supporting local initiatives, and promoting economic growth.
• Technological Innovation: F.N.B. leverages technology to enhance service delivery and improve operational efficiency.
• Risk Management: A strong focus on risk management ensures the stability and sustainability of financial performance.

Recent Initiatives

In 2024, F.N.B. Corporation has undertaken various initiatives aimed at fulfilling its mission:

• Expansion of digital banking platforms to improve customer accessibility and service efficiency.
• Increased community investment through financial literacy programs and local sponsorships.
• Implementation of advanced analytics to better understand customer needs and enhance product offerings.

Financial Summary for Q2 2024

The financial results for the second quarter of 2024 reflect the effectiveness of F.N.B.'s strategic initiatives:

Future Outlook

F.N.B. Corporation continues to focus on strategic growth initiatives, aiming to enhance its market position and financial performance while adhering to its mission of serving customers and communities effectively.

How F.N.B. Corporation (FNB) Works

Overview of F.N.B. Corporation

F.N.B. Corporation (FNB) operates primarily in three reportable segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment provides a range of commercial and consumer banking services, while the Wealth Management segment focuses on fiduciary services, investment advisory, and related services. The Insurance segment offers comprehensive insurance brokerage services.

Financial Performance as of June 30, 2024

As of the second quarter of 2024, F.N.B. Corporation reported the following financial highlights:

Asset Quality and Loan Performance

F.N.B. Corporation maintains a strong focus on asset quality. As of June 30, 2024, the company reported:

• Non-performing loans plus OREO to total loans and leases plus OREO: 0.33%
• Net charge-offs to total average loans: 0.09%
• Allowance for credit losses (ACL) on loans and leases: $418.8 million
• ACL coverage ratio: 1.24%

Deposits Overview

Total deposits as of June 30, 2024, were reported as follows:

Capital Management

F.N.B. Corporation's capital position remains robust, with key metrics as follows:

• Common equity tier 1 ratio: 10.19%
• Tangible common equity to tangible assets: 7.86%
• Repurchased shares during Q2 2024: 250,000 at an average price of $13.56

Liquidity Position

The corporation maintains a strong liquidity position with cash and salable unpledged government and agency securities as a percentage of total assets at 5.4% as of June 30, 2024.

Market Trends and Strategic Initiatives

F.N.B. Corporation continues to leverage investments in technology and customer relationships to enhance market share. The company is focusing on expanding its eStore® platform and improving customer service through data analytics.

How F.N.B. Corporation (FNB) Makes Money

Revenue Sources

F.N.B. Corporation generates revenue primarily through two main streams: net interest income and non-interest income.

Net Interest Income

In the second quarter of 2024, F.N.B. reported a net interest income of $315.9 million, which reflects a decrease of $13.4 million, or 4.1%, compared to the same period in 2023. This decline was primarily attributed to higher deposit costs and increased borrowings, which were partially offset by growth in earning assets and higher yields.

The net interest margin (FTE) decreased by 28 basis points to 3.09%, influenced by an increase in the total yield on earning assets to 5.43%, which was more than offset by a rise in the total cost of funds to 2.46%.

Average Loans and Earning Assets

Average earning assets increased by $1.9 billion, driven by a $2.2 billion rise in average loans and leases. Specifically, average commercial loans grew by $1.3 billion, with significant contributions from commercial real estate and industrial loans.

Non-Interest Income

F.N.B. also reported non-interest income of $87.9 million for the second quarter of 2024, an increase of $7.6 million, or 9.5%, compared to the same period in 2023. This growth was driven by improved performance across various segments, including:

• Service charges: $23.3 million (+13.6%)
• Trust services: $11.5 million (+7.9%)
• Mortgage banking operations: $7.0 million (+41.8%)
• Dividends on non-marketable equity securities: $6.9 million (+26.1%)

Non-Interest Expense

In terms of expenses, non-interest expense totaled $226.6 million for Q2 2024, a decrease of $10.5 million, or 4.4%, compared to Q1 2024. This reduction was largely due to effective cost management and a decrease in certain operational costs.

Loan Performance and Credit Quality

The provision for credit losses was $20.2 million, supporting strong loan growth and reflecting net charge-off activity. The allowance for credit losses (ACL) on loans and leases was $418.8 million, representing a 1.24% ratio to total loans.

Capital Position

F.N.B. maintains a robust capital structure, with a Common Equity Tier 1 (CET1) capital ratio of 10.19% as of June 30, 2024. Tangible book value per share grew to $9.88, reflecting a 12% year-over-year increase.