Breaking Down F.N.B. Corporation (FNB) Financial Health: Key Insights for Investors

Are you looking to make informed investment decisions about F.N.B. Corporation (FNB)? Did you know that FNB's total loans and leases increased by 5.0% in 2024, amounting to a $1.6 billion increase? Or that the tangible book value per share grew by 10.8%, reaching a record of $10.49? Delve into a comprehensive analysis of FNB's financial health, dissecting key metrics from 2024, including asset quality, capital ratios, and strategic financial maneuvers, to empower your investment strategy.

F.N.B. Corporation (FNB) Revenue Analysis

Analyzing F.N.B. Corporation's revenue streams provides critical insights into the bank's financial health and operational efficiency. A detailed breakdown reveals the primary sources driving its financial performance, revenue growth trends, and the contribution of various business segments.

F.N.B. Corporation's revenue is primarily derived from:

• Net Interest Income: This is the difference between the revenue generated from interest-bearing assets (like loans) and the expenses associated with interest-bearing liabilities (like deposits).
• Non-Interest Income: This includes income from service charges, wealth management, brokerage services, and other fees.

Understanding the year-over-year revenue growth rate helps in assessing the bank's performance trajectory. For instance, examining historical trends reveals periods of significant growth, stability, or decline, offering a perspective on the bank's adaptability and market positioning.

A breakdown of revenue contributions from different business segments is essential. These segments typically include:

• Commercial Banking: Revenue from loans, deposits, and other services provided to businesses.
• Retail Banking: Income generated from individual customers through loans, deposits, and various banking services.
• Wealth Management: Fees and commissions earned from managing assets and providing financial advisory services.

Analyzing these segments helps investors understand which areas are driving the most revenue and where the bank may have opportunities for growth or areas needing improvement.

Changes in revenue streams can signal strategic shifts or market impacts. For example, increased non-interest income might indicate a move towards fee-based services to diversify income sources, while a decline in net interest income could reflect changes in interest rate environments or lending practices.

For more insights into F.N.B. Corporation, check out: Exploring F.N.B. Corporation (FNB) Investor Profile: Who’s Buying and Why?

F.N.B. Corporation (FNB) Profitability Metrics

Analyzing F.N.B. Corporation (FNB)'s financial health involves examining its profitability through various metrics. These metrics provide insights into how efficiently the company generates profits from its revenue and assets.

Gross Profit Margin

The gross profit margin indicates the percentage of revenue remaining after deducting the cost of goods sold. For F.N.B. Corporation (FNB), the gross margin for the quarter ending December 31, 2024, was 62.15%. Looking at annual averages, the gross margin for 2023 was 78.36%, a 14.94% decrease from 2022, when it stood at 92.12%. These figures show a fluctuating trend in gross profitability over the past few years.

Operating Profit Margin

The operating profit margin measures a company's profitability before interest and taxes, reflecting its operational efficiency. In the fourth quarter of 2024, F.N.B. Corporation (FNB)'s operating margin was 49.1%, a slight decrease from 50.1% in the previous quarter. This suggests that cost management efforts were not enough to completely offset revenue impacts during that period.

Net Profit Margin

The net profit margin shows the percentage of revenue that remains as net income after all expenses, including taxes and interest, are paid. For the quarter ending December 31, 2024, F.N.B. Corporation (FNB)'s net profit margin was 17.87%. The average net profit margin for 2023 was 26.13%, a 2.68% decrease from 2022. However, in Q4 2024, the net profit margin jumped 214.95% compared to the same period last year, reaching 29.49%. Additionally, on a quarterly basis, the company saw a 10.46% increase in net profit margins.

Trends in Profitability Over Time

Analyzing the trends in profitability over time provides a clearer picture of F.N.B. Corporation (FNB)’s financial performance. Macrotrends data indicates the following:

• Gross Margin: Fluctuated from 90.66% in 2021 to 78.36% in 2023.
• Net Profit Margin: The net profit margin for the quarter ending December 31, 2024 was 17.87%.

These trends suggest that while F.N.B. Corporation (FNB) has experienced fluctuations in its profit margins, it has generally maintained solid profitability.

Comparison of Profitability Ratios with Industry Averages

Comparing F.N.B. Corporation (FNB)’s profitability ratios with industry averages helps to benchmark its performance. For example, in Q4 2024, F.N.B. Corporation (FNB)'s net profit margin of 31.43% was above the company average. Within the Commercial Banks industry, 20 other companies achieved higher net profit margins during this period.

Analysis of Operational Efficiency

Operational efficiency is crucial for maintaining and improving profitability. F.N.B. Corporation (FNB) focuses on several strategies to enhance its operational efficiency:

• Cost Management: Effective cost management is a key focus, with the aim of optimizing operating expenses to enhance profitability.
• Gross Margin Trends: Monitoring gross margin trends helps in understanding the efficiency of core operations.

In 2024, F.N.B. Corporation (FNB) demonstrated its diversified business model by achieving a record full-year operating non-interest income (non-GAAP) of $350 million.

Additional Insights

• Net Interest Margin (NIM): In Q4 2024, the net interest margin (FTE) (non-GAAP) decreased to 3.04%.
• Efficiency Ratio: Management uses the efficiency ratio to assess and better understand the company's underlying business performance and trends related to core business activities.
• Return on Equity (ROE): As of March 2025, the ROE (TTM) for F.N.B. Corporation (FNB-PE) is 5.26%.

For more insights into F.N.B. Corporation (FNB)'s investor profile, you can explore: Exploring F.N.B. Corporation (FNB) Investor Profile: Who’s Buying and Why?

F.N.B. Corporation (FNB) Debt vs. Equity Structure

Understanding how F.N.B. Corporation (FNB) manages its debt and equity is crucial for investors. It provides insights into the company's financial leverage, risk profile, and growth strategy. Here’s a breakdown of FNB's debt levels, ratios, and financing activities:

Overview of Debt Levels:

• As of December 31, 2024, FNB's financial structure includes a mix of long-term and short-term debt to fund its operations and growth initiatives.

Debt-to-Equity Ratio:

• The debt-to-equity ratio is a key metric to assess the proportion of debt and equity used to finance the company's assets.
• F.N.B.'s average debt/equity ratio for 2023 was 0.31, a 93.75% increase from 2022.
• F.N.B.'s average debt/equity ratio for 2022 was 0.16, an 11.11% increase from 2021.
• F.N.B.'s average debt/equity ratio for 2021 was 0.18, a 37.93% decline from 2020.

Recent Debt Issuances and Refinancing:

• In December 2024, FNB issued $500 million aggregate principal amount of fixed-rate/floating-rate senior notes maturing in December 2030.
• These senior notes bear interest at 5.722% per annum until December 11, 2029.
• Starting December 11, 2029, the notes will bear interest at a floating rate per annum equal to compounded SOFR plus 1.93%.
• The new debt is intended for general corporate purposes and to replace $450 million of senior and subordinated note maturities occurring in 2025.

Credit Ratings:

• On September 4, 2024, KBRA affirmed F.N.B. Corporation's senior unsecured debt rating at A-. The outlook for all long-term ratings is Stable.
• S&P Global Ratings affirmed the 'BBB-' Foreign Currency LT credit rating of FNB Corporation on March 26, 2024; the outlook is stable.

Balancing Debt and Equity:

• FNB strategically uses debt financing to optimize its capital structure and support growth.
• The company also focuses on growing core deposits to maintain a stable and lower-cost funding base. As of December 31, 2024, the ratio of non-interest-bearing demand deposits to total deposits was 26%.
• The loan-to-deposit ratio was 91% at December 31, 2024, compared to 93% at December 31, 2023.
• FNB's tangible common equity to tangible asset ratio was 8.2% as of December 31, 2024.

Here is a table summarizing key balance sheet items:

FNB's approach to balancing debt and equity ensures financial stability while supporting strategic initiatives. For more insights into the company's values and goals, check out Mission Statement, Vision, & Core Values of F.N.B. Corporation (FNB).

F.N.B. Corporation (FNB) Liquidity and Solvency

Liquidity is crucial for F.N.B. Corporation (FNB) to meet its short-term obligations. Key indicators like the current and quick ratios provide insights into the company's ability to cover its immediate liabilities with its most liquid assets. Analyzing working capital trends offers a view on the efficiency of FNB's day-to-day operations.

Here's an overview of how to assess FNB's liquidity:

• Current and Quick Ratios: These ratios measure FNB's ability to pay off its short-term liabilities with its current assets. The current ratio includes all current assets, while the quick ratio excludes inventory, focusing on the most liquid assets.
• Working Capital Trends: Monitoring the trend of FNB's working capital (current assets minus current liabilities) reveals whether the company is improving its short-term financial health.
• Cash Flow Statements Overview: Examining the cash flow statement provides a clear picture of how FNB generates and uses cash from its operating, investing, and financing activities.

The analysis of cash flow trends involves the following:

• Operating Cash Flow: Cash generated from FNB's core business activities.
• Investing Cash Flow: Cash used for investments in assets, like property, plant, and equipment.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Potential liquidity concerns or strengths can be identified by observing these trends and comparing them to industry benchmarks. For instance, consistently positive operating cash flow indicates a strong ability to fund operations, while a declining current ratio might signal potential liquidity issues.

Here is a sample table illustrating the kind of data that would be analyzed to assess FNB's liquidity. Note that this is just a hypothetical example for demonstration.

Understanding these elements helps investors and stakeholders assess F.N.B. Corporation's financial stability and make informed decisions. To gain more insight into the values that drive FNB, you can explore Mission Statement, Vision, & Core Values of F.N.B. Corporation (FNB).

F.N.B. Corporation (FNB) Valuation Analysis

Determining whether F.N.B. Corporation (FNB) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives. Let's delve into these aspects to provide a clearer picture for investors.

Price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios:

• P/E Ratio: Analyzing FNB's Price-to-Earnings (P/E) ratio helps investors understand how much the market is willing to pay for each dollar of FNB’s earnings.
• P/B Ratio: The Price-to-Book (P/B) ratio compares a company's market capitalization to its book value of equity. It can indicate whether a stock is undervalued or overvalued by comparing its market price to its net asset value.
• EV/EBITDA: The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is used to assess the overall value of a company compared to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It is particularly useful for evaluating companies with significant debt.

These ratios offer a snapshot of FNB's valuation relative to its earnings, book value, and overall enterprise value, providing essential data points for valuation assessment.

Stock price trends over the last 12 months (or longer): Examining FNB's stock price movements over the past year, and potentially longer, can reveal trends, volatility, and overall market sentiment towards the stock. This historical context is crucial for understanding current valuation levels. As of April 18, 2024, FNB's stock has shown some interesting movement. For instance, on April 18, 2024, the stock experienced a slight dip of 0.62%, closing at $12.86. However, looking back further, the stock has demonstrated a positive trend with a 1-year increase of 20.79%. This longer-term growth suggests underlying strength and investor confidence in FNB despite short-term fluctuations.

Dividend yield and payout ratios (if applicable): Investors often consider dividend yield and payout ratios to gauge the attractiveness of a stock, especially for income-focused portfolios. FNB's dividend yield indicates the return on investment based solely on dividend payments, while the payout ratio shows the proportion of earnings distributed as dividends. A sustainable dividend yield and payout ratio can signal financial stability and commitment to shareholder returns. As of April 18, 2024, FNB's dividend yield stands at 4.74%. This yield represents a solid return for investors looking for income. Furthermore, the annual dividend payout is $0.61 per share. These figures highlight FNB's commitment to returning value to its shareholders through consistent dividend payments.

Analyst consensus on stock valuation (buy, hold, or sell): Analyst ratings and price targets reflect the collective wisdom of financial experts who closely follow FNB. These ratings, categorized as buy, hold, or sell, represent analysts' opinions on the stock's potential future performance and can influence investor sentiment. According to the latest reports, the consensus among analysts is leaning towards a 'hold' rating for FNB. This suggests that while analysts recognize the company's stability and potential, they may not see significant upside in the short term. The price targets set by these analysts provide a range within which they expect the stock to trade over the next 12 months. For example, one analyst set a price target of $14.00, while another has a more conservative target of $12.50. The consensus price target is around $13.25, indicating a modest potential increase from the current price.

For related information, see: Breaking Down F.N.B. Corporation (FNB) Financial Health: Key Insights for Investors

F.N.B. Corporation (FNB) Risk Factors

F.N.B. Corporation (FNB) faces a variety of internal and external risks that could impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions. Understanding these factors is crucial for investors assessing the company's stability and future performance. For further insights, you might find this resource helpful: Breaking Down F.N.B. Corporation (FNB) Financial Health: Key Insights for Investors.

Here's an overview of key risks:

• Industry Competition: The financial services industry is highly competitive. FNB competes with other banks, credit unions, and non-bank financial institutions, some of which may have greater resources or a different business model. Increased competition could lead to pressure on pricing, reduced market share, and decreased profitability.
• Regulatory Changes: Banks are subject to extensive regulation, which can change frequently. New laws and regulations, or changes to existing ones, can increase compliance costs, restrict business activities, and impact profitability. Examples include changes to capital requirements, lending regulations, and consumer protection laws.
• Market Conditions: Economic downturns, changes in interest rates, and other market factors can significantly affect FNB's financial performance. For example, rising interest rates can reduce demand for loans, while a recession can increase loan defaults.

Operational, financial, and strategic risks are often highlighted in FNB's earnings reports and filings. These may include:

• Credit Risk: The risk that borrowers will default on their loans is a significant concern for any bank. FNB must carefully manage its credit risk to minimize losses from bad loans.
• Interest Rate Risk: Changes in interest rates can affect FNB's net interest income, which is the difference between the income it earns on loans and the interest it pays on deposits. Managing this risk is crucial for maintaining profitability.
• Liquidity Risk: The risk that FNB will not have enough cash to meet its obligations. This can occur if depositors withdraw their funds or if borrowers default on their loans.
• Cybersecurity Risk: Banks are increasingly vulnerable to cyberattacks, which can disrupt operations, compromise customer data, and result in financial losses.

Mitigation strategies and plans are crucial for addressing these risks. While specific details may vary, common strategies include:

• Diversification: FNB can diversify its loan portfolio to reduce its exposure to any one industry or borrower.
• Hedging: FNB can use financial instruments to hedge its interest rate risk.
• Strong Risk Management Practices: Implementing robust risk management practices, including regular monitoring and stress testing, can help FNB identify and mitigate potential risks.
• Investments in Cybersecurity: FNB can invest in cybersecurity measures to protect its systems and data from cyberattacks.

For example, the management discusses strategies for managing credit risk, including regular reviews of loan portfolios and the establishment of reserves for potential losses. They also outline plans for complying with new regulations and adapting to changing market conditions. Furthermore, FNB's annual reports often include a detailed discussion of risk factors that could affect the company's financial performance.

F.N.B. Corporation (FNB) Growth Opportunities

F.N.B. Corporation (FNB) possesses several key growth drivers that underpin its future prospects. These include strategic market expansions, a focus on technological innovation, and opportunistic acquisitions that enhance its market presence and service offerings. The corporation's ability to leverage these factors will be crucial in achieving sustained growth and profitability.

Analysis of FNB's growth drivers reveals a multi-faceted approach:

• Market Expansion: FNB has been strategically expanding its footprint in attractive markets.
• Technological Innovation: Embracing digital transformation to enhance customer experience and operational efficiency.
• Acquisitions: Pursuing strategic acquisitions to increase market share and expand service capabilities.

Future revenue growth projections and earnings estimates for F.N.B. Corporation (FNB) are influenced by several factors. According to the data from the fiscal year 2024, analysts predict a steady increase in revenue, driven by both organic growth and strategic initiatives. Earnings estimates also reflect this positive trajectory, with expectations of enhanced profitability as FNB continues to optimize its operations and capitalize on market opportunities.

Strategic initiatives and partnerships play a pivotal role in driving FNB's future growth:

• Digital Banking Enhancements: Continued investment in digital platforms to attract and retain customers.
• Community Engagement: Strengthening local partnerships to foster community development and brand loyalty.
• Strategic Alliances: Collaborating with fintech companies to offer innovative financial solutions.

F.N.B. Corporation (FNB) has several competitive advantages that position it favorably for future growth. These include a strong regional presence, a diversified portfolio of financial services, and a commitment to customer-centric innovation. These strengths enable FNB to effectively compete in the market and capitalize on emerging opportunities.

Here’s a look at some of FNB's key competitive advantages:

• Strong Regional Presence: Well-established network in key geographic markets.
• Diversified Service Portfolio: Wide range of financial products and services catering to diverse customer needs.
• Customer-Centric Innovation: Focus on developing innovative solutions that enhance customer experience.

To provide a clearer picture, consider the potential revenue growth based on different strategic initiatives:

These projections underscore the importance of a balanced approach to growth, combining technological advancements, strategic investments, and community-focused initiatives. For additional insights into the company's values and long-term goals, explore Mission Statement, Vision, & Core Values of F.N.B. Corporation (FNB).