Fee income, credit quality boost FNB : comparemela.com

Fee income, credit quality boost FNB


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Fee-income growth and a reserve release buoyed the $38.4 billion-asset FNB Corp. amid relatively flat lending and revenue in the second quarter.
The Pittsburgh company reported second-quarter net income available to common shareholders of $99.4 million, up nearly 22% from a year earlier. Its earnings per share of 31 cents exceeded by 3 cents the average estimate of analysts compiled by FactSet Research Systems.
Total revenue rose less than 1% to $307.6 million. Total loans fell 0.8% to $25.4 billion despite a 2.5% increase in commercial loans; the year-over-year lending comparison was affected by the sell-off of $500 million in indirect auto loans in the fall.
FNB released $1.1 million in reserves compared with a provision for credit losses of $30.2 million a year earlier. The company made the move thanks to “broadly improving economic activity and positive credit quality results through June,” Chief Credit Officer Gary Guerrieri told analysts on a conference call Tuesday.

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