Strong performance in loan and revenue growth helped FNB Corp. Second quarter net income increased 7.7% on Wednesday, offsetting another addition to the allowance for doubtful accounts.
Based in Pittsburgh, FNB has three branches in Forsyth County and 31 branches in Triad and northwestern North Carolina.
FNB announced a net profit of $ 107.1 million after the closing of the transaction. In comparison, it was $ 99.4 million in the year-ago quarter and $ 51 million in the first quarter.
Diluted revenue was 30 cents per share, down from 31 cents in the year-ago quarter and 15 cents in the first quarter.
A median earnings forecast of six analysts surveyed by Zacks Investment Research was 30 cents. Analysts usually do not include one-off revenues and expenses in their forecasts.
As with previous COVID-19 pandemics, the ETF allowance for doubtful accounts was a key driver in the second quarter.
This provision provides insight into how banks expect performance in their loan portfolios and revenue streams when customers struggle with monthly payments. It has the ultimate impact on a bank’s profitability.
The bank said it added $ 6.1 million to its reserve, compared to a $ 1.1 million recovery a year ago.
Loan income was $ 253.7 million, up 11.3% from a year ago. Banks said the increase reflected “reflected” growth in earnings assets and rising interest rates.
Commission revenue was $ 82.2 million, up 3% from a year ago. Banks said higher capital market fees and service fees offset the decline in mortgage income.
Vincent Delie Jr., FNB’s Chief Executive Officer and Chairman, said in a press release: ..
“As inflation and interest rates continue to rise, liquidity and capital ratios are high, our business structure is diversified, and we have a solid track record in risk management, so we can prepare for a wide range of economic scenarios.”
ETFs have spent $ 13 million repurchasing 1.1 million shares after choosing not to repurchase in the last three quarters.
The bank still has $ 62.4 million to spend on share repurchases under the current board clearance plan.
FNB holds the top 10 share of retail deposits in six major metropolis markets with a population of over one million, including Triad, Triangle, Charlotte, Pittsburgh, Baltimore and Cleveland.
Over the past year, FNB has opened a series of branches in Charlotte and Triangle.
On June 1, FNB plans to spend $ 117 million to buy Greenville’s UB Bancorp, which has 15 Union Bank brand branches and $ 1.2 billion in total assets as of March 31. Was announced.
Union’s only presence in the triad is Burlington’s loan and production office.
Banks expect transactions that require shareholder and regulatory approval to be completed by the end of 2022.
After acquiring all of UB’s assets, FNB predicts that North Carolina’s market share will drop from 11th to 8th with approximately $ 7.2 billion. ETFs reportedly have total assets of $ 43 billion.
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