F.N.B. (FNB) faces continued headwinds to net interest income as a mixed second quarter and a weaker outlook weigh on the stock, BofA Securities said in a note Monday.

The net interest income and net interest margin miss largely contributed to the downward revision to the company's full-year net interest income outlook, with both falling below the low end of management's guidance range, according to the note.

BofA also sees potential downside risk to net interest income if the forward curve does not play out as expected and growth in higher-yielding asset classes does not materialize.

The brokerage said Q2 fee income rose 6.5% year over year to $97 million, driven by growth in capital markets and trust services, reflecting management's multiyear investment in a broader, more diversified fee platform, including investment banking, public finance, debt capital markets, treasury management, wealth management and brokerage.

BofA downgraded F.N.B. to neutral from buy and lowered its price target to $19 from $20.

Shares of F.N.B. were down 2.7% in Monday trading.

Price: 18.64, Change: -0.52, Percent Change: -2.71