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Key takeaways from the call include:
– F.N.B.’s third-quarter efficiency ratio stood at 51.7%, and it’s expected to remain in the upper quartile.
– Total deposits increased by 2.3% to $34.6 billion, with non-interest-bearing deposits making up 31% of the total.
– Commercial loan growth outpaced industry data at 2.4%.
– The company has been consistently increasing its market share and ranks in the top five in nearly half of its markets, as per FDIC deposit market share data.
– F.N.B. continues to invest in its digital offerings to acquire and grow customer relationships.
– The company expects loans to grow mid-to-high single-digits year-over-year and total deposit balances to increase by the end of 2023.
During the call, F.N.B. reported a weighted average maturity of 11 months for its portfolio, which allows for repricing balances downwards when interest rates fall. Revenue for the quarter totaled $408 million, driven by net interest income of $327 million and growth in non-interest income. The company also projected loans to grow mid-to-high single-digits year-over-year and total deposit balances to remain relatively flat to year-end 2022.
CEO Vincent Delie discussed the company’s investments and growth opportunities for the next 12 months. He highlighted the company’s strong capital and liquidity positions and the investments made in de novo expansion in the retail space, which are expected to generate revenue. F.N.B. has also built out its small business lending platform and plans to integrate merchant and treasury management services into a bundle program.
The company also discussed its recent solar deal and the impact it will have on the fourth quarter. The bulk of the tax credit from the deal was recorded in the third quarter, which will benefit the fourth quarter as well. F.N.B. also mentioned that it has a pipeline of other transactions and is actively working on them for next year and beyond.
Delie also touched on the company’s strategy to attract new customers and manage betas and migration. He highlighted the company’s success in tax credit transactions in the energy field and its ongoing investment in technology and treasury management services to remain the principal bank for consumers and businesses.
One of the significant takeaways from the earnings call, as per InvestingPro data, is the company’s market cap, which stands at 3960M USD. The P/E ratio is at a low 7.03, suggesting that the company is trading at a low earnings multiple, a fact that aligns with InvestingPro Tips. The company also saw a revenue growth of 20.56% LTM2023.Q3, indicating an acceleration in its revenue growth.
InvestingPro Tips also suggests that FNB has high earnings quality, with free cash flow exceeding net income. The company has maintained dividend payments for 49 consecutive years, which is a testament to its strong financial position. These insights underline CEO Delie’s confidence in the company’s strong position to grow in 2024.
In the midst of these challenging times, Delie expressed confidence in the company’s strong position to grow in 2024, thanked employees and shareholders for their support, and emphasized the importance of teamwork. For more insights like these, consider exploring the InvestingPro product which includes additional tips and real-time metrics.
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