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.
Noninterest income rose 2.8% to $79.8 million thanks in large part to increases in service charges and fees from two wealth management lines.
Services charges rose 24.2% to $29.7 million on increases in customer transaction activity as the economy improved and higher premium income from Small Business Administration loans, according to the company.
Trust income rose 26% to $9.3 million, while securities commissions and fees jumped 52% to $5.7 million. “Many of these areas have continued to benefit from our expansion into higher-growth markets,” spokeswoman Jennifer Reel said.
That kind of expansion is slated to continue as FNB
Meanwhile, noninterest expenses rose 3.7% from the second quarter of 2020 to $182.5 million largely because of a 9.3% increase in salaries and employee benefits stemming largely from commission increases and merit raises. Other factors drove up costs, including $2.6 million in branch consolidation expenses and $2 million in expenses attributed to COVID-19.
