FNB Stock Up 1.6% as Q3 Earnings Beat on Higher NII, Provisions Rise

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]