F.N.B. Corp (FNB) shares plummeted 8.39% in Thursday's trading session, despite the company reporting better-than-expected third-quarter earnings. The significant drop in stock price suggests that investors may have concerns about the bank's future performance or that expectations were set even higher than the reported results.
FNB reported a third-quarter adjusted earnings per share (EPS) of $0.41, surpassing the IBES estimate of $0.37. The company's net income reached $149.5 million, showing a substantial increase from $110.1 million in the same quarter last year. F.N.B. Corp also reported an 11% increase in net revenue and a 37% rise in earnings per share compared to Q3 2024.
Despite these positive results, the sharp decline in stock price indicates that market participants might be focusing on other factors. The provision for credit losses stood at $23.991 million, which could be a point of concern for some investors. Additionally, while the Common Equity Tier 1 (CET1) capital ratio remained solid at 11%, any perceived weakness in the broader banking sector or concerns about future economic conditions could be contributing to the negative sentiment. Investors may need more reassurance about the bank's ability to maintain its growth trajectory in the face of potential economic headwinds.
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