...Strong Earnings Performance: First National of Nebraska, Inc.'s (FNNI) return on average assets (ROAA) of 1.49% remains well above the mid-tier regional peer median. As the bank's credit card franchise generates high margins and fee income, Fitch Ratings generally expects FNNI to outperform peers over time. While quickly repricing the credit card book as rates increased has driven margin expansion, Fitch expects that further improvements in earnings performance will likely come from improvements in expense control. Asset Quality Stable: FNNI's asset quality, excluding the credit card portfolio, is in line with the peer group's. Non-performing assets (NPAs) have continued to come down and remain in line with the peer median. Moreover, loan growth has moderated and is now also in line with that of peers, driven by the shift in focus in card lending to partnerships, over the national book. Expected Normalization in Card Lending: Net chargeoffs (NCOs) in the credit card portfolio have gradually...
