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Dec 31, 2022
FNB Q4 2022 Earnings Report
Reported record revenue, drove efficiency ratio to 52.1%, and completed the acquisition of UB Bancorp.
Key Takeaways
F.N.B. Corporation reported strong Q4 2022 earnings with a record $0.44 non-GAAP EPS, driven by all-time high revenue of $416 million and loan growth. The company's profitability metrics were strong, with an operating return on average tangible common equity of 21.9% and an efficiency ratio below 46%.
F.N.B. Corporation produced exceptional fourth quarter results with operating earnings per diluted common share (non-GAAP) totaling a record $0.44.
Revenue reached an all-time high of $416 million and continued strong loan growth of 5.1% linked-quarter.
The fourth quarter's outstanding performance is captured in the profitability metrics with operating return on average tangible common equity (non-GAAP) totaling 21.9% and the quarterly efficiency ratio (non-GAAP) below 46%.
Successfully completed the acquisition of UB Bancorp on December 9, 2022
FNB
FNB
Forward Guidance
This document may contain statements regarding F.N.B. Corporation’s outlook for earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset quality levels, financial position and other matters regarding or affecting our current or future business and operations.
Positive Outlook
- Our business, financial results and balance sheet values are affected by business, economic and political circumstances, including, but not limited to: (i) developments with respect to the U.S. and global financial markets; (ii) actions by the Federal Reserve Board, Federal Deposit Insurance Corporation, U.S. Treasury Department, Office of the Comptroller of the Currency and other governmental agencies, especially those that impact money supply, market interest rates or otherwise affect business activities of the financial services industry; (iii) a slowing of the U.S. economy in general and regional and local economies within our market area; (iv) inflation concerns; (v) the impacts of tariffs or other trade policies of the U.S. or its global trading partners; and (vi) the sociopolitical environment in the United States.
- Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.
- Competition can have an impact on customer acquisition, growth and retention, and on credit spreads, deposit gathering and product pricing, which can affect market share, loans, deposits and revenues. Our ability to anticipate, react quickly and continue to respond to technological changes and COVID-19 challenges can also impact our ability to respond to customer needs and meet competitive demands.
- Business and operating results can also be affected by widespread natural and other disasters, pandemics, including the impact of the COVID-19 pandemic crisis and post pandemic return to normalcy, global events, including the Ukraine-Russia conflict, dislocations, including shortages of labor, supply chain disruptions and shipping delays, terrorist activities, system failures, security breaches, significant political events, cyber attacks or international hostilities through impacts on the economy and financial markets generally, or on us or our counterparties specifically.
- Legal, regulatory and accounting developments could have an impact on our ability to operate and grow our businesses, financial condition, results of operations, competitive position, and reputation.
Challenges Ahead
- Policies and priorities of the current U.S. presidential administration, including legislative and regulatory reforms, different approaches to supervisory or enforcement priorities, changes affecting oversight of the financial services industry, regulatory obligations or restrictions, consumer protection, taxes, employee benefits, compensation practices, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles.
- Changes to regulations or accounting standards governing bank capital requirements, loan loss reserves and liquidity standards.
- Changes in monetary and fiscal policies, including interest rate policies and strategies of the FOMC.
- Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. These matters may result in monetary judgments or settlements, enforcement actions or other remedies, including fines, penalties, restitution or alterations in our business practices, and in additional expenses and collateral costs, and may cause reputational harm to FNB.
- Results of the regulatory examination and supervision process, including our failure to satisfy requirements imposed by the federal bank regulatory agencies or other governmental agencies.