Record Revenue of $438 Million Grew 6.5% Linked-Quarter With Increased Profitability Driving Record Capital Levels
F.N.B. Corporation (NYSE: FNB) reported earnings for the second quarter of 2025 with net income available to common shareholders of $130.7 million, or $0.36 per diluted common share. Comparatively, second quarter of 2024 net income available to common shareholders totaled $123.0 million ($123.7 million on an operating basis (non-GAAP)), or $0.34 per diluted common share, and first quarter of 2025 net income available to common shareholders totaled $116.5 million, or $0.32 per diluted common share.
“F.N.B. Corporation reported strong second quarter results, generating earnings per diluted common share of $0.36 with record revenue of $438 million, a 6.5% linked-quarter increase, principally driven by margin expansion, growth in net interest income and non-interest income. Pre-provision net revenue (non-GAAP) grew significantly with linked-quarter growth of 16%,” said F.N.B. Corporation Chairman, President and Chief Executive Officer, Vincent J. Delie, Jr. “Our sustained levels of profitability further strengthened capital to all-time highs witha CET1 ratio of 10.8% (estimated), tangible book value per share (non-GAAP) growth of 13% year-over-year to $11.14 and a tangible common equityratio (non-GAAP) of 8.5%, while still producing a return on tangible common equityratio (non-GAAP)of 14%. Balance sheet growth was solid with annualized average loan and deposit growth of 5.3% and 1.7%, respectively, benefiting from our diverse geographic footprint. FNB's consistent underwriting standards and proactive credit risk management actions led to continued strong credit results for the quarter. The tech-focused investment in Clicks-to-Bricks strategy, the expanded utilization of our eStore® digital tools, data-driven analyses, predictive modeling and artificial intelligence position FNB for ongoing success.”
Second Quarter 2025 Highlights (All comparisons refer to the second quarter of 2024, except as noted)
— Average loans and leases totaled $34.5 billion, an increase of $1.2 billion, or 3.7%, including growth of $889.0 million in consumer loans and $357.8 million in commercial loans and leases.
— On a linked-quarter basis, average loans and leases increased $451.7 million, or 5.3% annualized, as average consumer loans increased $365.4 million, or 11.4% annualized, and average commercial loans and leases increased $86.3 million, or 1.6% annualized.
— Average deposits totaled $37.1 billion, an increase of $2.5 billion, or 7.3%, as the growth in average interest-bearing demand deposits of $2.3 billion and average time deposits of $595.8 million more than offset the decline in average savings deposits of $279.1 million and average non-interest-bearing demand deposits of $108.6 million.
— On a linked-quarter basis, average deposits increased $155.6 million, or 1.7% annualized, due to organic growth in new and existing customer relationships. The ratio of non-interest-bearing demand deposits to total deposits was stable at 26% at June 30, 2025, compared to the prior quarter end.
— The loan-to-deposit ratio was 92% at June 30, 2025, stable compared to 92% at March 31, 2025, and meaningfully lower compared to 96% at June 30, 2024.
— Net interest income totaled a record $347.2 million, an increase of $23.4 million, or 7.2%, from the prior quarter, primarily due to higher yields on earning assets (non-GAAP), lower cost of funds and one more day in the current quarter.
— Net interest margin (FTE) (non-GAAP) equaled 3.19%, an increase of 16 basis points from the first quarter of 2025, reflecting a 10 basis point improvement in the total yield on earning assets (non-GAAP) and a 6 basis point decline in the total cost of funds.
— Provision for credit losses was $25.6 million, an increase of $8.1 million from the prior quarter, with net charge-offs of $21.8 million, or 0.25% annualized of total average loans, compared to $12.5 million, or 0.15% annualized, in the prior quarter. The ratio of non-performing loans and other real estate owned (OREO) to total loans and leases and OREO decreased 14 basis points from the prior quarter to 0.34%, and total delinquency decreased 13 basis points from the prior quarter to 0.62%. The allowance for credit losses (ACL) to total loans and leases remained stable at 1.25%. Overall, asset quality metrics continue to remain at solid levels, reflecting continued proactive management of the loan portfolio.
— Record capital levels with the Common Equity Tier 1 (CET1) regulatory capital ratio at 10.8% (estimated), compared to 10.2% at June 30, 2024, and 10.7% at March 31, 2025. The tangible common equity to tangible assets ratio (non-GAAP) equaled 8.5%, compared to 7.9% at June 30, 2024, and 8.4% at March 31, 2025.
— Tangible book value per common share (non-GAAP) of $11.14 increased $1.26, or 12.8%, compared to June 30, 2024, and $0.31, or 2.9%, compared to March 31, 2025. Accumulated other comprehensive income/loss (AOCI) reduced the tangible book value per common share (non-GAAP) by $0.26 as of June 30, 2025, primarily due to the impact of unrealized losses on AFS securities, compared to a reduction of $0.67 as of June 30, 2024, and $0.34 as of March 31, 2025.
— During the second quarter of 2025, the Company repurchased 0.7 million shares of common stock at a weighted average share price of $13.85 while maintaining capital above stated operating levels and supporting loan growth in the quarter.
Second Quarter 2025 Results – Comparison to Prior-Year Quarter (All comparisons refer to the second quarter of 2024, except as noted)
Net interest income totaled $347.2 million, an increase of $31.3 million, or 9.9%, reflecting growth in earning assets and lower interest-bearing deposit costs. The net interest margin (FTE) (non-GAAP) increased 10 basis points to 3.19%. The yield on earning assets (non-GAAP) decreased 10 basis points to 5.33%, driven by a 17 basis point decline in yields on loans to 5.79%, offset by a 32 basis point increase in yields on investment securities to 3.46%. Total cost of funds decreased 20 basis points to 2.26%, with a 27 basis point decrease in interest-bearing deposit costs to 2.66% and a 42 basis point decrease in total borrowing costs, inclusive of the December 2024 senior note offering of $500 million. The Federal Open Market Committee lowered the target federal funds rate by 100 basis points in the latter half of 2024.
Average loans and leases totaled $34.5 billion, an increase of $1.2 billion, or 3.7%, including growth of $889.0 million in consumer loans and $357.8 million in commercial loans and leases. Commercial and industrial loans increased $120.4 million, or 1.6%, commercial real estate increased $103.5 million, or 0.8%, and commercial leases increased $117.2 million, or 17.8%. The increase in average commercial loans and leases was driven by activity across the footprint, including the Charlotte and Cleveland markets. The increase in commercial real estate included fundings on previously originated construction projects. The increase in average consumer loans included a $1.2 billion increase in residential mortgages largely due to the continued successful execution in key markets and long-standing strategy of serving the purchase market. Average indirect auto loans decreased $388.1 million, due to a sale of $431 million that closed in the third quarter of 2024, partially offset by new organic growth in the portfolio.
Average deposits totaled $37.1 billion, an increase of $2.5 billion, or 7.3%. The growth in average interest-bearing demand deposits of $2.3billion and average time deposits of $595.8million more than offset the decline in average savings deposits of $279.1million and average non-interest-bearing demand deposits of $108.6million as customers continued to migrate balances into higher-yielding products. The funding mix has slightly shifted compared to the year-ago quarter with non-interest-bearing demand deposits comprising 26% of total deposits at June30, 2025, compared to 29% a year ago, however, the loan-to-deposit ratio improved to 92% at June30, 2025, compared to 96% at June30, 2024.
Non-interest income totaled a record $91.0 million, compared to $87.9 million. Capital markets income increased $1.8 million, or 34.1%, driven by record debt capital markets income and contributions from international banking, customer swap activity and syndications. Wealth Management revenues increased $1.0 million, or 5.2%, as securities commissions and fees and trust income increased 11.3% and 1.0%, respectively, through continued strong contributions across the geographic footprint. Other non-interest income increased $2.2 million, or 59.7%, primarily due to gains on the disposition of leased equipment.
Non-interest expense totaled $246.2 million, increasing $19.6 million, or 8.7%. When adjusting for $0.8 million1 of significant items in the second quarter of 2024, operating non-interest expense (non-GAAP) increased $20.4 million, or 9.0%. Salaries and employee benefits increased $8.9 million, or 7.4%, primarily reflecting strategic hiring associated with our efforts to grow market share and continued investments in our risk management infrastructure, as well as higher production-related compensation. Net occupancy and equipment increased $4.3 million, or 10.1%, largely from technology-related investments and de novo branch expansions. Other non-interest expense increased $4.3 million, or 19.9%, primarily due to the impact of Community Uplift, a mortgage down payment assistance program that was enhanced and expanded in conjunction with our previously announced settlement agreement with the Department of Justice (DOJ).
The ratio of non-performing loans and OREO to total loans and OREO increased 1 basis point to 0.34%. Total delinquency decreased 1 basis point to 0.62%. Overall, asset quality metrics continue to remain at solid levels.
The provision for credit losses was $25.6 million, compared to $20.2 million. The second quarter of 2025 reflected net charge-offs of $21.8 million, or 0.25% annualized of total average loans, compared to $7.8 million, or 0.09% annualized, reflecting continued proactive management of the loan portfolio. The ACL was $432.1 million, an increase of $13.3 million, with the ratio of the ACL to total loans and leases relatively stable at 1.25%.
The effective tax rate was 21.5%, compared to 21.6% in the second quarter of 2024.
The CET1 regulatory capital ratio was 10.8% (estimated) at June30, 2025, and 10.2% at June30, 2024. Tangible book value per common share (non-GAAP) was $11.14 at June30, 2025, an increase of $1.26, or 12.8%, from $9.88 at June30, 2024. AOCI reduced the current quarter tangible book value per common share (non-GAAP) by $0.26, compared to a reduction of $0.67 at the end of the year-ago quarter.
Second Quarter 2025 Results – Comparison to Prior Quarter (All comparisons refer to the first quarter of 2025, except as noted)
Net interest income totaled $347.2 million, an increase of $23.4million, or 7.2%, from the prior quarter total of $323.8 million, reflecting higher earning asset yields, lower costs of interest-bearing deposits and the impact of one more day in the quarter. The total yield on earning assets (non-GAAP) increased 10 basis points to 5.33%, reflecting an 11 basis point increase inloan yields and a 5 basis point increase in yields on investment securities. Second quarter net interest income included $2.2 million in purchase accounting accretion from pay-offs of previously acquired loans resulting in a 2 basis point impact to net interest margin. The total cost of funds decreased 6 basis points to 2.26%, as the cost of interest-bearing deposits declined 10 basis points to 2.66% and the long-term borrowing costs declined 12 basis points to 4.99%. The resulting net interest margin (FTE) (non-GAAP) was 3.19%, a 16 basis point increase from the prior quarter.
Average loans and leases totaled $34.5 billion, an increase of $451.7 million, or 5.3% annualized, as average consumer loans increased $365.4 million, or 11.4% annualized, and average commercial loans and leases increased $86.3 million, or 1.6% annualized. The increase in average commercial loans and leases included growth of $61.8 million in commercial real estate, $10.4 million in commercial leases and $3.3 million in commercial and industrial loans. For consumer lending, average residential mortgages increased $303.9million driven by seasonal growth in mortgage originations.
Average deposits totaled $37.1 billion, an increase of $155.6million, due to organic growth in new and existing customer relationships. The increases in average non-interest-bearing deposit balances of $164.5million, average interest-bearing demand deposits of $88.3 million and average time deposits of $17.6 million were partially offset by a decline in average savings deposit balances of $114.8 million. The mix of non-interest-bearing demand deposits to total deposits was stable at 26% for June30, 2025 and March31, 2025. The loan-to-deposit ratio was also stable at 92% at June30, 2025, and March31, 2025.
Non-interest income totaled a record $91.0 million, an increase of $3.2million, or 3.7%, from the prior quarter. Capital markets income totaled $6.9 million, an increase of $1.6 million, or 29.6%, driven by record debt capital markets income and contributions from international banking, customer swap activity and syndications. Interchange and card transaction fees increased $0.9 million, or 7.1%, due to higher customer transaction activity. Other non-interest income increased $3.2 million, or 113.5%, primarily due to gains on the disposition of leased equipment. Bank-owned life insurance decreased $1.5 million due to elevated life insurance claims in the prior quarter.
Non-interest expense totaled $246.2 million, a decrease of $0.6 million, or 0.2%, compared to the prior quarter. Salaries and employee benefits decreased $5.3 million, primarily due to normal seasonal long-term compensation expense of $7.6 million in the first quarter of 2025, partially offset by normal annual merit increases and higher production-related compensation. Other non-interest expense increased $3.4 million, or 15.0%, primarily due to the impact of Community Uplift, a mortgage down payment assistance program that was enhanced and expanded in conjunction with our previously announced settlement agreement with the Department of Justice (DOJ). The efficiency ratio (non-GAAP) totaled 54.8%, down from the seasonally higher 58.5% in the prior quarter.
The ratio of non-performing loans and OREO to total loans and OREO decreased 14 basis points to 0.34%, and delinquency decreased 13 basis points to 0.62%. Overall, asset quality metrics continue to remain at solid levels. The provision for credit losses was $25.6 million, compared to $17.5 million. The second quarter of 2025 reflected net charge-offs of $21.8 million, or 0.25% annualized of total average loans, compared to $12.5 million, or 0.15% annualized, reflecting continued proactive management of the loan portfolio. The ACL was $432.1 million, an increase of $3.2 million, with the ratio of the ACL to total loans and leases stable at 1.25%.
The effective tax rate was 21.5%, compared to 20.9%.
The CET1 regulatory capital ratio was 10.8% (estimated), compared to 10.7% at March31, 2025. Tangible book value per common share (non-GAAP) was $11.14 at June30, 2025, an increase of $0.31 per share. AOCI reduced the current quarter-end tangible book value per common share (non-GAAP) by $0.26, compared to a reduction of $0.34 at the end of the prior quarter.
Use of Non-GAAP Financial Measures and Key Performance Indicators To supplement our Consolidated Financial Statements presented in accordance with GAAP, we use certain non-GAAP financial measures, such as operating net income available to common shareholders, operating earnings per diluted common share, return on average tangible equity, return on average tangible common equity, return on average tangible assets, tangible book value per common share, the ratio of tangible common equity to tangible assets, pre-provision net revenue (reported), operating pre-provision net revenue, operating non-interest expense, efficiency ratio, and net interest margin (FTE) to provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to assess their performance and trends.
These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included later in this release under the heading “Reconciliations of Non-GAAP Financial Measures and Key Performance Indicators to GAAP.”
Management believes certain items (e.g., FDIC special assessment) are not organic to running our operations and facilities. These items are considered significant items impacting earnings as they are deemed to be outside of ordinary banking activities. These costs are specific to each individual transaction and may vary significantly based on the size and complexity of the transaction.
To facilitate peer comparisons of net interest margin and efficiency ratio, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets (loans and investments) to make it fully equivalent to interest income earned on taxable investments (this adjustment is not permitted under GAAP).Taxable-equivalent amounts for 2025 and 2024 were calculated using a federal statutory income tax rate of 21%.
Cautionary Statement Regarding Forward-Looking Information
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward‑looking statements are those that do not relate to historical facts and that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond our control. Forward-looking statements may relate to various matters, including our financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words, such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “positioned,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar words or expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties, including, but not limited to, those described below. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make.
There are various important factors that could cause future results to differ materially from historical performance and any forward-looking statements. Factors that might cause such differences, include, but are not limited to:
— the credit risk associated with the substantial amount of commercial loans and leases in our loan portfolio;
— the volatility of the mortgage banking business;
— changes in market interest rates and the unpredictability of monetary, tax and other policies of government agencies, including tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions;
— the impact of changes in interest rates on the value of our investment securities portfolios;
— changes in our ability to obtain liquidity as and when needed to fund our obligations as they come due, including as a result of adverse changes to our credit ratings;
— the risk associated with uninsured deposit account balances;
— regulatory limits on our ability to receive dividends from our subsidiaries and pay dividends to our shareholders;
— our ability to recruit and retain qualified banking professionals;
— the financial soundness of other financial institutions and the impact of volatility in the banking sector on us;
— changes and instability in economic conditions and financial markets, in the regions in which we operate or otherwise, including a contraction of economic activity, economic downturn or uncertainty and international conflict;
— our ability to continue to invest in technological improvements as they become appropriate or necessary;
— any interruption in or breach in security of our information systems, or other cybersecurity risks;
— risks associated with reliance on third-party vendors;
— risks associated with the use of models, estimations and assumptions in our business;
— the effects of adverse weather events and public health emergencies;
— the risks associated with acquiring other banks and financial services businesses, including integration into our existing operations;
— the extensive federal and state regulations, supervision and examination governing almost every aspect of our operations, and potential expenses associated with complying with such regulations;
— our ability to comply with the consent orders entered into by First National Bank of Pennsylvania with the Department of Justice and the North Carolina State Department of Justice, and related costs and potential reputational harm;
— changes in federal, state or local tax rules and regulations or interpretations, or accounting policies, standards and interpretations;
— the effects of climate change and related legislative and regulatory initiatives; and
— any reputation, credit, interest rate, market, operational, litigation, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above.
FNB cautions that the risks identified here are not exhaustive of the types of risks that may adversely impact FNB and actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the risk factors and other uncertainties described under Item 1A. Risk Factors and the Risk Management sections of our 2024 Annual Report on Form 10-K (including the MD&A section), our subsequent 2025 Quarterly Reports on Form 10-Q (including the risk factors and risk management discussions) and our other 2025 filings with the Securities and Exchange Commission (SEC), which are available on our corporate website at https://www.fnb-online.com/about-us/investor-information/reports-and-filings or the SEC's website at www.sec.gov. We have included our web address as an inactive textual reference only. Information on our website is not part of our SEC filings.
You should treat forward-looking statements as speaking only as of the date they are made and based only on information then actually known to FNB. FNB does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Conference Call F.N.B. Corporation (NYSE: FNB) announced the financial results for the second quarter of 2025 after the market close on Thursday, July17, 2025. Chairman, President and Chief Executive Officer, Vincent J. Delie, Jr., Chief Financial Officer, Vincent J. Calabrese, Jr., and Chief Credit Officer, Gary L. Guerrieri, plan to host a conference call to discuss the Company's financial results on Friday, July 18, 2025 at 8:30 AM ET.
A live listen-only webcast of the conference call will be available under the Investor Relations section of the Corporation's website at www.fnbcorporation.com. Participants can access the link under the “About Us” tab and clicking on “Investor Relations” then “Investor Conference Calls.” The live webcast will open approximately 30 minutes prior to the start of the call.
To participate in the Q&A portion of the call, dial 844-802-2440 (for domestic callers) or 412-317-5133 (for international callers). Pre-registration can be accessed at https://dpregister.com/sreg/10200955/ff767c4fbd. Callers who pre-register will be provided a conference passcode and unique PIN to bypass the live operator and gain immediate access to the call.
Presentation slides and the earnings release will also be available under the Investor Relations section of the Corporation's website at www.fnbcorporation.com.
Following the call, a replay of the conference call will be available via the webcast link under the Investor Relations section of the Corporation's website at www.fnbcorporation.com.
About F.N.B. Corporation F.N.B. Corporation (NYSE: FNB), headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in seven states and the District of Columbia. FNB's market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. The Company has total assets of nearly $50 billion and approximately 350 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C. and Virginia.
FNB provides a full range of commercial banking, consumer banking and wealth management solutions through its subsidiary network which is led by its largest affiliate, First National Bank of Pennsylvania, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, government banking, business credit, capital markets and lease financing. The consumer banking segment provides a full line of consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. FNB's wealth management services include asset management, private banking and insurance.
The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol “FNB” and is included in Standard & Poor's MidCap 400 Index with the Global Industry Classification Standard (GICS) Regional Banks Sub-Industry Index. Customers, shareholders and investors can learn more about this regional financial institution by visiting the F.N.B. Corporation website at www.fnbcorporation.com.
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