FNB Stock Up 2.3% as Q2 Earnings Beat on Higher NII, Provisions Rise

Shares of F.N.B. Corporation FNB rose 2.3% in after-hours trading following the release of its second-quarter 2025 results. Earnings of 36 cents per share outpaced the Zacks Consensus Estimate of 33 cents. Also, the bottom line compared favorably with adjusted earnings of 34 cents in the prior-year quarter.

Results benefited from growth in net interest income (NII) and non-interest income. Higher loans and deposits are other positives. However, higher provisions and expenses were the undermining factors.

Net income available to its common stockholders was $130.7 million, up 5.7% year over year. Our estimate for the metric was $121.4 million.

FNB’s Revenues Improve, Expenses Rise

Quarterly net revenues were $438.2 million, up 8.5% from the year-earlier quarter. Further, the top line beat the Zacks Consensus Estimate of $420.8 million.

NII was $347.2 million, up 9.9% from the prior-year quarter. The increase was mainly driven by growth in earning assets and lower interest-bearing deposit costs. Moreover, net interest margin or NIM (FTE basis) (non-GAAP) expanded 10 basis points (bps) year over year to 3.19%. Our estimates for NII and NIM were pegged at $332.5 million and 3.07%, respectively.

Non-interest income was $91 million, up 3.5%. The growth was driven by an increase in almost all components except service charges, insurance commissions and fees, mortgage banking operations and dividends on non-marketable securities. Our estimate for the metric was $89.1 million.

Non-interest expenses were $246.2 million, up 8.7% year over year. Excluding one-time costs incurred last year's quarter, adjusted expenses rose 9%. Our estimate for the same was $239.7 million.

At the end of the second quarter, net loans and leases were $34.2 billion, up 1.3% on a sequential basis. Total deposits were $37.7 billion, up 1.4%. Our estimates for net loans and leases and total deposits were $34.48 billion and $37.92 billion, respectively.

F.N.B. Corp’s Credit Quality: Mixed Bag

FNB’s provision for credit losses was $25.6 million, jumping 26.7% from the prior-year quarter. Our estimate for provisions was $22.4 million.

The ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO increased 1 bps to 0.34%. On the other hand, total delinquency decreased 1 bps to 0.62%.

FNB’s Capital Ratios Improve, Profitability Ratios Mixed Bag

As of June 30, 2025, the Tier I leverage ratio was 8.78%, up from 8.63% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 8.47% from the prior-year quarter’s 7.86%.

As of June 30, 2025, the common equity Tier 1 (CET1) ratio was 10.8% compared with 10.2% in the prior-year quarter.

At the end of the second quarter, the return on total average assets was 1.07%, up from 1.06% in the year-ago period. Return on average equity was 8.09% compared with 8.20% in the prior-year quarter.

FNB’s Share Repurchase Update

During the reported quarter, F.N.B. Corp repurchased 0.7 million shares at an average price of $13.85.

Our Take on FNB

FNB’s solid liquidity position bodes well for the future. The company’s top line is expected to benefit from its efforts to increase fee income, diverse revenue streams, relatively high rates and opportunistic acquisitions. However, persistently rising expenses and significant commercial loan exposures amid a challenging backdrop are expected to hurt profits in the near term.

F.N.B. Corporation Price, Consensus and EPS Surprise

F.N.B. Corporation price-consensus-eps-surprise-chart | F.N.B. Corporation Quote

Currently, FNB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

Commerce Bancshares Inc.’s CBSH second-quarter 2025 earnings of $1.14 per share surpassed the Zacks Consensus Estimate of $1.02. The bottom line also jumped 10.7% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CBSH’s results benefited from a rise in NII and non-interest income. An increase in loan balances was also a tailwind. However, increased provisions and higher expenses were headwinds.

Hancock Whitney Corp.’s HWC second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter.

Results benefited from an increase in non-interest income and NII. Also, higher loans were another positive. However, higher adjusted expenses and provisions alongside lower deposit balances were headwinds for HWC.

This article originally published on Zacks Investment Research (zacks.com).

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