Group 1 - The article emphasizes the importance of upgrading companies to a Buy or Strong Buy rating, reflecting a positive outlook for shareholders [1] - The focus is on identifying companies in the oil and gas sector that are trading at a significant discount to their intrinsic value, utilizing Benjamin Graham's investment philosophy and a contrarian market approach [1] Group 2 - The author runs a value-oriented newsletter called Crude Value Insights, which analyzes cash flows and assesses company values within the oil and gas industry [1]

Financial Performance - Net income for Q3 2025 was $150 million, a 36.36% increase from $110 million in Q3 2024[10] - Net income for the nine months ended September 30, 2025, increased to $397 million, up from $355 million in 2024, representing a growth of 11.9%[14] - Earnings per common share for Q3 2025 were $0.41, up from $0.30 in Q3 2024, representing a 36.67% increase[10] - Basic earnings per common share for the nine months ended September 30, 2025, was $1.10, compared to $0.97 for the same period in 2024[148] Income and Expenses - Total interest income for Q3 2025 reached $596 million, up from $583 million in Q3 2024, reflecting a 2.23% increase[10] - Net interest income after provision for credit losses was $335 million for Q3 2025, compared to $300 million in Q3 2024, marking an 11.67% increase[10] - Non-interest income totaled $98 million in Q3 2025, an increase from $89 million in Q3 2024, representing a 10.11% growth[10] - Total non-interest expense decreased to $243 million in Q3 2025 from $249 million in Q3 2024, a reduction of 2.41%[10] Assets and Liabilities - The total assets of the company increased to $6.636 billion by the end of Q3 2025, up from $6.524 billion at the end of Q3 2024[12] - Total assets as of September 30, 2025, were $49,889 million, compared to $47,976 million as of September 30, 2024, showing an increase of 4%[156] - Total liabilities measured at fair value on a recurring basis were $218 million, all classified under Level 2[159] Credit Losses and Provisions - The provision for credit losses was $24 million in Q3 2025, slightly higher than $23 million in Q3 2024, reflecting a 4.35% increase[10] - The total provision for credit losses for the three months ended September 30, 2025, was $24.0 million, compared to $23.5 million for the same period in 2024[77] - The allowance for credit losses (ACL) on loans and leases was $437.3 million as of September 30, 2025, reflecting an increase of $14.5 million, or 3.4%, from December 31, 2024[77] Loans and Leases - Total loans and leases, net of unearned income, increased to $34,957 million as of September 30, 2025, from $33,939 million on December 31, 2024, representing a growth of 3.0%[44] - Total commercial loans and leases amounted to $21,140 million, slightly down from $21,164 million at the end of 2024, indicating a decrease of 0.1%[44] - Total consumer loans increased to $13,817 million, up from $12,775 million, marking a growth of 8.2%[44] Non-Performing Loans - Non-performing loans and leases decreased to $125 million as of September 30, 2025, down from $159 million at December 31, 2024, reflecting a reduction of 21.4%[58] - The ratio of non-performing loans and leases to total loans and leases improved to 0.36% in September 2025, compared to 0.47% in December 2024[58] Market and Economic Conditions - The macroeconomic variables used for ACL modeling included a projected 3.4% increase in the Housing Price Index and a 4.0% decrease in the Commercial Real Estate Price Index over the forecast period[76] - The company continues to analyze payment and volume activity, FICO scores, and Debt-to-Income (DTI) scores monthly to assess consumer loan performance[54] Capital and Borrowings - Total short-term borrowings increased to $1,905 million as of September 30, 2025, compared to $1,256 million as of December 31, 2024, representing a 51.6% increase[102] - Long-term borrowings decreased to $2,099 million as of September 30, 2025, down from $3,012 million as of December 31, 2024, a decline of 30.4%[103] Tax and Regulatory - Total income taxes for the nine months ended September 30, 2025, amounted to $107 million, up from $98 million in 2024[142] - The effective tax rate for the nine months ended September 30, 2025, was 21.2%, compared to 21.5% for the same period in 2024[142] Stock and Compensation - The company issued 1,413,805 restricted stock units during the nine months ended September 30, 2025, compared to 1,271,502 units in the same period of 2024[137] - Stock-based compensation expense for the nine months ended September 30, 2025, was $15 million, compared to $16 million for the same period in 2024[140]

Core Viewpoint - F.N.B. Corporation (FNB) shares have performed well over the past year, with a gain of approximately 9% [1] Group 1: Performance Analysis - The significant gains in FNB shares occurred post-2024 election, driven by expectations of bank deregulation [1] - Since the initial surge, FNB shares have remained mostly range-bound [1] Group 2: Analyst Insights - The analyst has over fifteen years of experience making contrarian bets based on macro views and stock-specific turnaround stories [1]

Core Insights - First National Bank (FNB), a subsidiary of F.N.B. Corporation, has received multiple awards for its workplace culture, including three National Culture Excellence honors and a regional Top Workplaces award for Charlotte, NC in 2025 [1][3][4] Group 1: Awards and Recognition - FNB has been recognized for its strong workplace culture, receiving awards in Professional Development, Employee Appreciation, and Employee Well-Being for the third consecutive year in 2025 [3] - The company has also been awarded as one of America's Greatest Workplaces and America's Greatest Workplaces for Financial Services by Newsweek, as well as a Top Workplace USA by Energage and USA Today [5] - FNB has been selected for the Charlotte Top Workplaces award for the fourth consecutive year, highlighting its growth in the region since establishing a presence in 2017 [4] Group 2: Company Overview - F.N.B. Corporation, headquartered in Pittsburgh, operates in seven states and the District of Columbia, with total assets of $50 billion and approximately 350 banking offices [7] - The company provides a full range of commercial banking, consumer banking, and wealth management solutions through its subsidiary network [8][9] - FNB's market coverage includes major metropolitan areas such as Pittsburgh, Baltimore, Cleveland, Washington, D.C., and various cities in North Carolina and South Carolina [7]

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, focusing on identifying undervalued companies through fundamental analysis [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, highlighting F.N.B. (FNB) as a strong value stock with a Zacks Rank of 2 (Buy) and an A for Value [3] Company Metrics - FNB has a PEG ratio of 0.82, which is lower than the industry average of 0.94, indicating potential undervaluation [4] - The P/B ratio for FNB is 0.9, significantly lower than the industry average of 1.74, suggesting a solid valuation compared to peers [5] - FNB's P/CF ratio stands at 10.95, which is also lower than the industry average of 15.52, reinforcing the notion of undervaluation [6] Comparison with Other Companies - Live Oak Bancshares (LOB) is another value stock with a Zacks Rank of 2 (Buy) and a Value score of A, with a P/B ratio of 1.59, close to the industry average [7] - Both FNB and LOB are highlighted as likely undervalued stocks, supported by their strong earnings outlooks [8]

Core Insights - F.N.B. Corporation's CEO, Vincent J. Delie, Jr., has been awarded CEO of the Year – USA by The Digital Banker for his leadership and innovation in the U.S. banking industry [1][2] - Delie's leadership has significantly impacted FNB's growth, digital transformation, and customer experience, positioning the bank as a technology-driven institution [3][4] Company Overview - F.N.B. Corporation is headquartered in Pittsburgh, Pennsylvania, and operates in seven states and Washington, D.C., with total assets of $50 billion and approximately 350 banking offices [6] - The company provides a comprehensive range of financial services, including commercial banking, consumer banking, and wealth management solutions [7] Digital Innovation - Under Delie's leadership, FNB has implemented a Clicks-to-Bricks strategy and developed the award-winning eStore® digital platform, enhancing customer access to financial services [3][4] - The eStore Common application allows clients to apply for multiple banking products through a single digital application, improving onboarding and personalizing customer interactions [3] Recognition and Awards - Delie has received multiple accolades, including being named CEO of the Year by The CEO Magazine and one of the top 50 CEOs in the U.S. by Brand Finance, reflecting his influence in the banking sector [4] - FNB has been recognized for its strong financial performance and innovative technology use, earning titles such as one of the World's Best Companies by TIME and one of America's Best and Most Trusted Companies by Forbes [4]

Core Insights - F.N.B. Corporation (FNB) reported a 1.6% increase in shares during after-hours trading following the release of its Q3 2025 results, with adjusted earnings of 41 cents per share exceeding the Zacks Consensus Estimate of 37 cents and up from 34 cents in the prior-year quarter [1][10] Financial Performance - The quarterly net revenues reached $457.4 million, reflecting a 10.8% increase year-over-year and surpassing the Zacks Consensus Estimate of $443.1 million [3] - Net interest income (NII) was reported at $359.3 million, an 11.1% increase from the previous year, driven by growth in earning assets and lower interest-bearing deposit costs, with a net interest margin (NIM) of 3.25%, up 17 basis points year-over-year [4] - Non-interest income totaled $98.2 million, a 9.5% increase, with growth across most components except for service charges and insurance commissions [5] - Non-interest expenses decreased by 2.4% year-over-year to $243.5 million, although adjusted expenses rose by 5.1% when excluding one-time costs [5] Loan and Deposit Growth - At the end of Q3, net loans and leases stood at $34.5 billion, showing a slight sequential increase, while total deposits were $38.4 billion, up 1.8% [6] Credit Quality - The provision for credit losses was $24 million, a 2.4% increase from the prior-year quarter, while the ratio of non-performing loans and other real estate owned (OREO) decreased to 0.37% [7] Capital and Profitability Ratios - As of September 30, 2025, the Tier I leverage ratio improved to 8.92% from 8.64% year-over-year, and the common equity Tier 1 (CET1) ratio increased to 11% from 10.4% [8] - Return on total average assets rose to 1.20% from 0.92% in the prior-year period, and return on average equity improved to 9.02% from 7.10% [9] Share Repurchase Activity - During the reported quarter, F.N.B. Corp repurchased 0.8 million shares at an average price of $15.50 [11] Future Outlook - The company is expected to benefit from its solid liquidity position, efforts to increase fee income, diverse revenue streams, and expansion in high-growth markets, although rising expenses and significant commercial loan exposures present challenges [12]

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Financial Data and Key Metrics Changes - The company's earnings per share grew 14% to a record $0.41, with net income available to common shareholders increasing to $150 million [4] - Operating pre-provision net revenue increased 18% year-over-year, contributing to a peer-leading efficiency ratio of 52% [4] - Total revenue reached a record $457 million, with non-interest income hitting a record $98.2 million [4][18] - The return on average tangible common equity was 15%, and tangible book value per share grew 11% to $11.48 [5][21] Business Line Data and Key Metrics Changes - Period-end loans increased 3% on an annualized linked quarter basis, driven by equipment finance, consumer lending, and seasonal residential mortgage production [5] - Equipment finance saw a strong quarter with 21% annualized loan growth, while commercial and industrial loans grew 2% [5][11] - Non-interest income from capital markets grew 27%, with wealth management revenues increasing 8% year-over-year [19][21] Market Data and Key Metrics Changes - The company experienced annualized linked quarter deposit growth of 7%, outpacing the industry [6] - Non-interest-bearing deposits comprised 26% of total deposits, stable from the prior quarter, with total deposit costs at 1.93% [7] - The company ranked in the top five in nearly 50% of its markets and in the top three in nearly 30% [6][37] Company Strategy and Development Direction - The company plans to add 30 new branches by 2030, focusing on high-growth markets in the Carolinas and Mid-Atlantic [24] - The strategy emphasizes growing low-cost deposits and reducing commercial real estate concentration [6] - The company is leveraging AI and data analytics to enhance customer engagement and operational efficiency [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by fiscal policies and a more robust business environment [14] - The company remains focused on core commercial and industrial lending, with a disciplined approach to credit risk management [11][82] - Management highlighted the importance of maintaining a strong capital position to support balance sheet growth and optimize shareholder returns [21][45] Other Important Information - The company has a CET1 ratio of 11% and a TCE ratio of 8.7%, both record levels [21] - The company is actively managing its capital position and remains opportunistic regarding share buybacks [23][45] Q&A Session Summary Question: Concerns about refinancing risk in the mortgage book - Management indicated that they have strategically shifted pricing in the conforming space and are not overly concerned about prepayment speeds impacting margins [29][30] Question: Insights on deposit growth and market performance - Management noted strong deposit growth across various markets, particularly in the Carolinas, driven by competitive technology offerings and effective execution [32][34] Question: Future capital management strategy - Management confirmed a focus on optimizing shareholder value through disciplined capital management, including potential buybacks and dividend discussions [42][45] Question: Updates on fee income growth opportunities - Management highlighted recent investments in investment banking and treasury management as key areas for future fee income growth, with expectations for continued expansion [84][88]

Financial Data and Key Metrics Changes - FMB's third quarter earnings per share increased by 14% linked quarter to a record $0.41, with net income available to common shareholders rising to $150 million [4] - Operating pre-provision net revenue grew 18% year-over-year, contributing to a peer-leading efficiency ratio of 52% [4][15] - Total revenue reached a record $457 million, with non-interest income hitting a record $98.2 million [4][15] - Return on average tangible common equity was 15%, and tangible book value per share grew 11% to $11.48 [5][21] Business Line Data and Key Metrics Changes - Period-end loans increased by 3% on an annualized linked quarter basis, driven by equipment finance, consumer lending, and seasonal residential mortgage production [5] - Commercial and industrial loans grew by 2% annualized linked quarter, affected by lower line utilization and higher attrition due to customer M&A activity [5] - Equipment finance saw a strong annualized loan growth of 21%, reflecting activity across the company's footprint [5] Market Data and Key Metrics Changes - Annualized linked quarter deposit growth was 7%, outpacing the industry, with non-interest bearing deposits comprising 26% of total deposits [6][7] - The loan-to-deposit ratio ended the quarter at 90.9%, with the company's CRE concentration improving to 214% [6] - FNB ranked in the top five in nearly 50% of its MSAs and in the top three in nearly 30% [7] Company Strategy and Development Direction - The company is focused on growing low-cost deposits and reducing CRE concentration, with a strategy to price deposits competitively while protecting net interest margins [6][9] - FNB plans to expand its branch network by adding 30 new branches, primarily in high-growth markets [25] - The company is leveraging AI and data analytics to enhance customer engagement and operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by fiscal policies and a potentially more robust business environment [14] - The company remains committed to strong risk management frameworks while exploring AI's transformative potential [10] - Management noted that they have not seen material impacts on the loan portfolio from tariffs or the government shutdown, maintaining a stable credit quality [12][80] Other Important Information - The CET1 ratio reached a record 11%, and tangible common equity ratio was at 8.7% [21] - The company is actively managing its capital position to support balance sheet growth and optimize shareholder returns [21] - The efficiency ratio improved to 52.4%, with expectations for continued strength in operating leverage performance [20] Q&A Session Summary Question: Concerns about loan growth and refinancing risks - Management indicated that they have strategically shifted pricing in the mortgage book and are not overly concerned about prepayment speeds impacting margins, as they can redeploy capital effectively [30][34] Question: Insights on deposit growth and market share - Management highlighted strong deposit growth across various markets, particularly in the Carolinas, driven by technology and competitive pricing strategies [40][42] Question: Capital management strategy with a strong CET1 ratio - Management confirmed a focus on internal execution and opportunistic buybacks, while maintaining a flexible dividend strategy [56][58] Question: Expectations for Investor Day - Management emphasized showcasing technological advancements and team depth at the upcoming Investor Day, aiming to energize investors [60][62] Question: Efficiency ratio and expense management - Management confirmed ongoing efforts to optimize expenses and improve the efficiency ratio, with a focus on leveraging technology and operational improvements [70][74]