F.N.B. Corporation Posts Earnings for the First Quarter of 2022

F.N.B. Corporation (NYSE: FNB), a diversified financial services company operating in seven states and the District of Columbia, has reported earnings for the first quarter of 2022. The financial report shows increase in key metrics.

"Driven by the successful execution of our growth strategy and continuing our positive momentum, F.N.B. Corporation produced high-quality first quarter results with operating earnings per share of $0.26," said F.N.B. Corporation Chairman, President and Chief Executive Officer, Vincent J. Delie, Jr. "During the first quarter, we grew revenue by 3.4% largely by an expansion in net interest income and overall loan growth while maintaining solid asset quality and growing loan pipelines. Loan balances, excluding PPP, increased 8.2% on a linked-quarter basis, and loan balances, excluding PPP and Howard loans as of the acquisition date, increased 4.3% annualized. FNB's Board of Directors approved a new $150 million share repurchase program providing additional flexibility to effectively manage capital and benefit our shareholders. Our strong capital levels, proactive risk management and conservatively underwritten balance sheet combined with the experience of our management team favorably positions FNB as we continue to successfully navigate a challenging environment."

First Quarter 2022 Results – Comparison to Prior-Year Quarter

• Net interest income totaled $234.1 million, an increase of $11.2 million, or 5.0%, compared to $222.9 million, as total average earning assets increased $3.3 billion, or 10.1%, including a $1.5 billion increase in average cash balances largely attributed to the impact from PPP activity, $912.3 million increase in average securities, as well as $786.0 million increase in average loans and leases.

• The net interest margin (FTE) (non-GAAP) declined 14 basis points to 2.61%, as the yield on earning assets decreased 26 basis points to 2.83%, primarily reflecting the lower yields on variable-rate loans and investment securities and the effect of higher average cash balances on the mix of earning assets. 

• Average loans and leases totaled $26.2 billion, an increase of $786.0 million, or 3.1%. Excluding PPP loans, average total loans and leases increased $2.8 billion, or 12.2%, including growth of $1.7 billion in commercial loans and leases ($0.9 billion from Howard) and $1.1 billion in consumer loans ($0.4 billion from Howard).

• Average deposits totaled $33.0 billion with growth in average non-interest-bearing demand deposits of $2.0 billion, or 22.2%, and average interest-bearing demand deposits of $1.6 billion, or 11.7%, partially offset by a decline in time deposits of $0.6 billion, or 16.3%. 

• Non-interest income totaled $78.3 million, a decrease of $4.5 million, or 5.4%, compared to the first quarter of 2021. 

• Non-interest expense totaled $227.4 million, increasing $42.6 million, or 23.0%. 

• The ratio of non-performing loans, 90 days past due, and other real estate owned (OREO) to total loans and OREO decreased 24 basis points to 0.44%. Total delinquency decreased 14 basis points to 0.66%, compared to 0.80% at March 31, 2021, demonstrating positive asset quality trends across the portfolio.

• The provision for credit losses was $18.0 million, compared to $5.9 million in the first quarter of 2021. The provision for credit losses in the first quarter of 2022 included $19.1 million of initial provision for non-PCD loans associated with the Howard acquisition. 

• The effective tax rate was 20.9%, compared to 18.9% in the first quarter of 2021, with the increase driven by higher state income taxes and nondeductible merger-related expenses resulting from the Howard acquisition.

• ​Net income available to common stockholders was $51.0 million, or $0.15 per diluted common share. Comparatively, first quarter of 2021 net income available to common stockholders totaled $91.2 million, or $0.28 per diluted common share.