FNB Corporation (FNB) Q3 2024 Earnings Report

FNB Corporation delivered a solid Q3 2024 with material balance sheet expansion and deposit leadership across its footprint, complemented by a diversified revenue mix and prudent credit risk management. Total revenue rose 2.3% sequentially to $672 million, driven by a higher net interest income (NII) of $323.3 million and an all-time high non-interest income run-rate near $90 million. The company posted an efficient cost structure (peer-leading 55.2% efficiency ratio) and strengthened capital, culminating in a record CET1 ratio of 10.4% and tangible common equity growth of 15% year over year. Deposit growth remained robust, with total deposits at $36.8 billion, up 5% QoQ, aided by targeted deposit initiatives and an omnichannel strategy, while the loan-to-deposit ratio improved to 91.7% (versus 96.5% in the prior quarter). Total loans ended at ~$33.7 billion ex‑auto sale, with auto loan dispositions contributing to balance sheet optimization and capital generation (indirect auto loan sale of $431 million). Management underscored the bank’s strategy to become the primary operating bank for customers, supported by digital capabilities, data analytics, and a scalable regional footprint. For Q4 2024 guidance, FNB outlined mid‑single‑digit loan growth, mid‑single‑digit deposit growth, NII with a beta of ~15% by year-end, and non‑interest income projected at $310–$320 million, with non‑interest expense expected to decline versus Q3. While the near‑term margin trajectory is expected to be relatively flat to mildly down in Q4 (with potential improvement in 2025 in a steeper yield curve), the firm remains well‑positioned to navigate rate moves due to substantial funding flexibility and a balanced credit book.