F.N.B. Corporation Reports Fourth Quarter and Full Year 2025 Earnings

Core Insights - F.N.B. Corporation reported strong financial results for the fourth quarter of 2025, with net income available to common shareholders reaching $168.7 million, or $0.47 per diluted common share, marking an increase from $109.9 million, or $0.30 per diluted common share in the fourth quarter of 2024 [1][6][9] - The company achieved total revenue of $1.8 billion for the full year 2025, with significant growth in both net interest income and non-interest income [4][12] - Capital levels remained robust, with a Common Equity Tier 1 (CET1) ratio of 11.4% and tangible book value per common share increasing by 13% year-over-year to $11.87 [4][17][27] Financial Performance - For the full year 2025, net income available to common shareholders was $565.4 million, or $1.56 per diluted common share, up from $459.3 million, or $1.27 per diluted common share in 2024, representing a 23% increase [3][4] - Operating earnings per diluted common share (non-GAAP) for 2025 was $1.59, a 14% increase from $1.39 in 2024 [3][4] - The fourth quarter 2025 operating earnings per diluted common share (non-GAAP) was $0.50, compared to $0.38 in the fourth quarter of 2024 [2][4] Revenue and Income Breakdown - Net interest income for the fourth quarter of 2025 totaled $365.4 million, an increase of $43.2 million, or 13.4%, from the previous year, driven by growth in average earning assets [9][19] - Non-interest income reached $92.3 million in the fourth quarter of 2025, compared to $50.9 million in the same quarter of 2024, reflecting strong performance in wealth management and other fee-based services [12][22] - The company recognized investment tax credits of $37.2 million in the fourth quarter of 2025, contributing positively to income taxes [7] Asset and Deposit Growth - Average loans and leases increased to $35.0 billion, up $1.2 billion, or 3.4%, primarily due to consumer loan growth [5][10] - Average deposits rose to $38.6 billion, an increase of $1.7 billion, or 4.5%, with significant growth in interest-bearing demand deposits [11][21] - The loan-to-deposit ratio improved to 89.7% at December 31, 2025, compared to 91.5% at the end of 2024 [11][20] Expense Management - Non-interest expense for the fourth quarter of 2025 totaled $273.2 million, an increase of $25.0 million, or 10.1%, compared to the previous year [13][23] - Operating non-interest expense (non-GAAP) increased by $8.3 million, or 3.4%, when adjusted for significant items impacting earnings [13][23] - The efficiency ratio (non-GAAP) was 53.8%, compared to 52.4% in the prior quarter, indicating a slight decline in operational efficiency [23] Asset Quality and Credit Management - The provision for credit losses was $18.9 million, a decrease from the previous quarter, with net charge-offs of $16.4 million, or 0.19% annualized of total average loans [15][25] - The ratio of non-performing loans and other real estate owned (OREO) to total loans decreased to 0.31%, reflecting solid asset quality metrics [14][24] - The allowance for credit losses (ACL) to total loans ratio increased to 1.26%, indicating proactive management of the loan portfolio [15][25]