FNB's Q4 Earnings Beat Estimates on Higher NII & Lower Provisions

F.N.B. Corporation FNB reported fourth-quarter 2025 operating earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents. Also, the bottom line jumped 31.6% year over year.

Quarterly results benefited from higher net interest income (NII) and non-interest income. Higher loans and deposits and a decline in provisions were additional positives. However, higher non-interest expenses were an undermining factor.

The results excluded certain notable items. Considering those, net income available to common shareholders was $168.7 million or 47 cents per share, up from $109.9 million or 30 cents per share in the prior-year quarter. Our estimate for net income available to common shareholders was $139.4 million.

For 2025, operating earnings per share of $1.59 grew 14.4% year over year and beat the consensus estimate of $1.50. Net income available to common shareholders (GAAP basis) was $565.4 million or $1.56 per share, up from $459.3 million or $1.27 per share in 2024.

FNB’s Revenues Improve, Expenses Rise

Total revenue was $457.8 million, up 22.7% from the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $455.8 million.

NII was $365.4 million, up 13.4% from the prior-year quarter. The increase was primarily driven by growth in earning assets and a lower cost of funds. Moreover, net interest margin or NIM (FTE basis) (non-GAAP) expanded 24 basis points (bps) year over year to 3.28%. Our estimates for NII and NIM were pegged at $360.8 million and 3.26%, respectively.

Non-interest income was $92.3 million, soaring 81.3% year over year. Excluding significant items, adjusted non-interest income was up 8.8% from the year-ago quarter. The rise was mainly driven by higher service charges, trust services, securities commissions and fees and bank-owned life insurance income, partially offset by lower mortgage banking operations. Our estimate for the metric was $90.1 million.

Non-interest expenses were $273.2 million, up 10.1%. Excluding significant items, adjusted non-interest expenses rose 3.4% to $256.5 million. Our estimate for adjusted non-interest expenses was $243.9 million.

At the end of the fourth quarter, average total loans and leases were $35.0 billion, up 3.4% from the year-ago quarter, while average total deposits were $38.6 billion, up 4.5%. Our estimates for average total loans and leases and average total deposits were $35.04 billion and $38.66 billion, respectively.

F.N.B. Corp’s Credit Quality Improved

FNB’s provision for credit losses was $18.9 million, down from $22.3 million in the prior-year quarter. Our estimate for provisions was $24.2 million.

Net charge-offs were $16.4 million, down from $20.6 million a year ago. Furthermore, the ratio of non-performing loans plus other real estate owned (OREO) to total loans and leases plus OREO decreased 17 bps to 0.31%. Total delinquency decreased 12 bps to 0.71%.

FNB’s Capital Ratios Improve

As of Dec. 31, 2025, the common equity Tier 1 (CET1) ratio was 11.4%, up from 10.6% in the prior-year quarter. Tangible common equity to tangible assets ratio (non-GAAP) increased to 8.9% from 8.2%.

FNB’s Share Repurchase Update

During the fourth quarter of 2025, F.N.B. Corp repurchased $18 million, or 1.1 million shares, at a weighted average share price of $16.20.

Our View 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, its diverse revenue streams, stabilizing funding costs, opportunistic acquisitions and de novo branch expansion in high-growth markets. However, persistently rising expenses and significant commercial loan exposures are headwinds.
 

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 #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

BOK Financial Corporation's BOKF fourth-quarter 2025 adjusted net income per share of $2.48 surpassed the Zacks Consensus Estimate of $2.13. The bottom line increased 16.9% from the prior-year quarter.

BOKF’s results benefited from higher NII and total fees and commissions. An increase in loans and deposit balances was another positive. However, the increase in operating expenses was a major undermining factor.

WaFd, Inc.’s WAFD first-quarter fiscal 2026 (ended Dec. 31) earnings of 79 cents per share beat the Zacks Consensus Estimate of 76 cents. The bottom line also jumped 46% year over year. 

WAFD’s results reflected higher NII, a surge in non-interest income and lower expenses. However, credit costs remained elevated, with provisions for credit losses recorded in the quarter.

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

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