The stock price of
) remained unchanged despite Moody's Investors Service, a rating
), first time assigned ratings to the company on Thursday. Though
an issuer rating of Baa3 and a stable outlook failed to gain
investors' confidence, the grades reflect the company asset
F.N.B. Corporation's subsidiary First National Bank of
Pennsylvania, long-term deposits and other senior obligation were
rated at Baa2, while short-term obligations were rated at
Prime-2. Further, the standalone bank's financial strength rating
(BFSR) was C-, which implied credit assessment of baa2.
The rating agency assigned the ratings based on F.N.B.
Corporation's stable asset quality, consistent flow of revenues
and its existing foothold in Western Pennsylvania. However, it
also took into account First National Bank of Pennsylvania's
comparatively weaker capital position and its risky acquisitions
in unexplored markets beyond Pennsylvania.
In second-quarter 2013 F.N.B. Corporation's total revenue of
$144.6 million surpassed the Zacks Consensus Estimate of $132.0
million. Efficient risk management, cost control and healthy net
interest margin continue to enhance the company's profitability.
However, the continued low interest rate scenario will likely
compress F.N.B. Corporation's margin, going forward.
Further the company has a moderate risk profile with commercial
real estate loans (including commercial mortgages, multifamily
mortgages, construction loans and excluding owner-occupied
properties), of approximately 195% of Moody's adjusted tangible
common equity at second-quarter 2013.
On the flip side, F.N.B. Corporation's capital ratios witnessed
deterioration in the quarter. As of Jun 30, 2013, the estimated
total risk-based capital ratio was 11.9%, compared with 12.3% as
of Mar 31, 2013.
Further, the estimated Tier 1 risk-based capital ratio was 10.4%,
down from 10.7% as of Mar 31, 2013. The leverage ratio was 8.3%
compared with 8.4% in the prior quarter. Though these ratios were
above the regulatory requirements, they lagged the figures
reported by the company's peers.
Currently, F.N.B. Corporation's carries a Zacks Rank #3 (Hold).
Better-performing banks include
Community Trust Bancorp Inc.
Simmons First National Corporation
). Both of these stocks carry a Zacks Rank #1 (Strong Buy).
COMMUN TRUST BC (CTBI): Free Stock Analysis
FNB CORP (FNB): Free Stock Analysis Report
MOODYS CORP (MCO): Free Stock Analysis Report
SIMMONS FIRST A (SFNC): Free Stock Analysis
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