F.N.B. Corp. in Pittsburgh reported a nearly 8% increase in second-quarter earnings, citing strong loan growth and helped by the acquisition this year of Howard Bancorp.
Total loans and leases increased 11.2%, or $2.6 billion, year over year. That figure excluded Paycheck Protection Loans and loans obtained in the Howard Bancorp acquisition. The $42 billion-asset F.N.B. pointed to several bright spots, including an increase in commercial lending in Pittsburgh and Harrisburg in Pennsylvania as well as North Carolina, one of its newer markets.
Last month, the bank announced a $117 million all-stock deal to
Approximately 40% of UB Bancorp’s deposits are non-interest-bearing. These low-cost deposits will benefit F.N.B.’s performance in a rising-rate environment, F.N.B. Chairman and CEO Vincent Delie Jr. said in a call with analysts after reporting second-quarter results.
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“As inflation and interest rates continue to rise, we are prepared for a broad range of economic scenarios given our strong liquidity and capital ratios, our diversified business mix, and our well-established risk management track record,” Delie said in a news release on Thursday.
Meanwhile, the bank
F.N.B. reported net income available to common shareholders of $107.1 million, or earnings per share of $0.31, beating the average estimate of analysts compiled by FactSet Research Systems by a penny.
The bank added $6.4 million to its loan-loss reserves, compared with a release of $1.1 million during the same quarter of the previous year.
“Overall, the second quarter provided solid financial results, and F.N.B. is well positioned in the current macroeconomic environment. One of FNB's core strengths is our credit performance, which has been proven in the economic downturn in 2008 and again during the recent pandemic,” Delie said in the call.
