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Dec 31, 2020

FNB Q4 2020 Earnings Report

Reported earnings per share of $0.22 and non-GAAP EPS of $0.28, driven by growth in total average loans and deposits, and an increase in mortgage banking income.

Key Takeaways

F.N.B. Corporation reported a decrease in net income available to common stockholders to $70.2 million, or $0.22 per diluted common share, compared to $93.2 million, or $0.29 per diluted common share in Q4 2019. However, on an operating basis, earnings per diluted common share (non-GAAP) was $0.28, up 8% from Q4 2019, excluding significant items. The company achieved record total non-interest income and maintained an efficiency ratio of 56%.

Total average loans grew by $2.4 billion, or 10.4%, driven by commercial loan growth.

Total average deposits increased by $4.1 billion, or 16.6%, primarily due to growth in non-interest-bearing deposits.

Net interest income rose by $8.0 million, or 3.5%, supported by asset growth and reduced deposit costs.

Mortgage banking income increased by $4.9 million, or 47.0%, due to strong production and expanded gain-on-sale margins.

Total Revenue
$303M
Previous year: $300M
+0.8%
EPS
$0.28
Previous year: $0.3
-6.7%
Efficiency Ratio
56.5%
Previous year: 56%
+0.9%
Loan to Deposit Ratio
87.4%
Previous year: 94%
-7.0%
Cash and Equivalents
$1.38B
Previous year: $599M
+130.9%
Free Cash Flow
$186M
Previous year: $107M
+73.8%
Total Assets
$37.4B
Previous year: $34.6B
+7.9%

FNB

FNB

FNB Revenue by Segment

Forward Guidance

While the earnings report does not explicitly provide forward guidance, the CEO expresses optimism for improved results in 2021.

Positive Outlook

  • Commitment to drive long-term shareholder value.
  • Focus on stated objectives and improving efficiency.
  • Continuous investments in customer experience.
  • Strong financial performance and progress.
  • Dedication and determination of employees.

Challenges Ahead

  • Challenging interest rate environment.
  • Impact of COVID-19 pandemic.
  • Lower customer transaction volumes.
  • Increase in non-interest expense.
  • Exit of commercial loans in COVID-19 sensitive industries.