Shares of F.N.B. Corp (FNB) plunged over 5% in pre-market trading on Thursday, following the release of the company's weaker-than-expected third-quarter 2024 financial results. The regional bank's earnings missed analysts' estimates due to lower net interest income and higher expenses.
For the quarter ended September 30, 2024, F.N.B. Corp reported adjusted earnings per share of $0.30, lagging the Zacks Consensus Estimate of $0.36 and marking a 15% decline from the prior-year period. Net income available to common stockholders fell 23.2% year-over-year to $110.1 million.
The company's top line grew modestly by 1.2% to $413 million, beating expectations of $409.8 million. However, this growth was offset by a 1% decline in net interest income to $323.3 million, driven by higher deposit costs which outweighed the benefits of higher earning asset yields and loan growth.
Non-interest expenses surged 14.4% to $249.4 million, significantly above analysts' estimates and weighing on profitability. The increase was attributed to higher costs across various expense lines.
On a positive note, non-interest income grew 10% year-over-year to $89.7 million, aided by increases in most fee income components. Additionally, the bank's credit quality improved, with a lower ratio of non-performing loans and net charge-offs compared to the prior-year quarter.
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