FNB Q1 Deep Dive: Diversified Revenue Strategy and Digital Investment Amid Tariff Uncertainty

Regional banking company F.N.B. Corporation (NYSE:FNB) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 1.2% year on year to $411.6 million. Its non-GAAP profit of $0.32 per share was 7.6% above analysts’ consensus estimates.

Is now the time to buy FNB? Find out in our full research report (it’s free).

StockStory’s Take

F.N.B. Corporation’s first quarter results were met with a positive market response, as management highlighted the company’s ongoing diversification of revenue streams and digital banking enhancements. CEO Vince Delie credited net interest income growth, stable asset quality, and “solid non-interest income” for supporting performance, while recent investments in capital markets and digital onboarding tools drove incremental gains. The quarter also saw prudent risk management in the face of macroeconomic headwinds, with Chief Credit Officer Gary Guerrieri emphasizing continued stability in asset quality metrics and proactive tariff-related portfolio reviews.

Looking ahead, management’s guidance is shaped by expectations for mid-single-digit loan and deposit growth, supported by a broad geographic footprint and expanding digital capabilities. CFO Vince Calabrese noted the outlook assumes a stable credit environment and gradual improvement in net interest margin, while Delie emphasized the potential for increased fee income from new business lines and the recently acquired investment banking boutique. However, leadership remains cautious about the impacts of tariffs and economic uncertainty, with Guerrieri stating, “It is a very fluid situation. We’re well ahead of it and will manage any potential risks as the situation continues to evolve.”

Key Insights from Management’s Remarks

Management attributed first quarter performance to steady loan and deposit growth, non-interest income diversification, and strategic technology investments, while addressing ongoing tariff-related risks and expense discipline.

• Digital platform enhancements: The company launched an automated direct deposit switch capability embedded in its digital onboarding platform, aiming to reduce barriers for customers to make F.N.B. their primary bank. Management expects this to drive greater deposit primacy and improve customer acquisition.

• Non-interest income diversification: Strategic investments in capital markets, wealth management, and treasury management contributed to non-interest income stability. The acquisition of an investment banking boutique (Raptor Partners) is expected to broaden advisory capabilities and add to fee income over time.

• Loan portfolio management: Residential mortgage growth led consumer lending, while commercial loan growth was modest. The company intentionally reduced exposure to non-owner commercial real estate, reflecting a cautious approach amid market volatility and interest rate uncertainty.

• Expense discipline and efficiency: Management reiterated a $15–20 million cost savings target for the year, driven by renegotiating contracts, process improvements, and leveraging AI for operational efficiency. First quarter expenses were seasonally elevated but expected to normalize in subsequent quarters.

• Tariff risk monitoring: Proactive assessments of the commercial and industrial loan portfolio indicated less than 5% direct exposure to tariff-impacted sectors. Management implemented regular stress testing and increased client outreach to identify and address potential credit risks from evolving trade policies.

Drivers of Future Performance

F.N.B. expects loan and deposit growth, technology-driven client acquisition, and disciplined cost management to shape performance in the coming quarters, amid ongoing macroeconomic and regulatory uncertainty.

• Tariff and economic headwinds: Management highlighted uncertainty from new tariffs and macroeconomic volatility as factors that could temper loan growth and client activity, particularly in manufacturing-heavy regions. Regular portfolio assessments and stress testing are in place to mitigate these risks.

• Digital innovation and client primacy: The continued rollout of digital tools—such as direct deposit switching and AI-powered product recommendations—is expected to increase household penetration and drive new client acquisition, supporting both loan and deposit growth targets.

• Expense management focus: The company aims to deliver positive operating leverage through ongoing cost savings initiatives, leveraging technology, and further optimizing its risk management infrastructure, while remaining flexible to adjust expenses if revenue trends deteriorate.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will track (1) adoption and impact of new digital onboarding features on deposit growth, (2) fee income contributions from the investment banking boutique and treasury management initiatives, and (3) credit quality trends amid ongoing tariff and macroeconomic uncertainty. Execution on cost savings and technology investments will also be key signposts.

F.N.B. Corporation currently trades at $14.15, up from $12.27 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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