F.N.B. Q4 Earnings Call Highlights

F.N.B. (NYSE:FNB) used its fourth-quarter 2025 earnings call to highlight record full-year results, improving balance-sheet positioning, and updated financial guidance for 2026, while emphasizing continued investment in digital tools, automation, and fee-income businesses.

Record 2025 results and balance-sheet milestones

Chairman, President and CEO Vincent Delie said 2025 included several company records, including revenue of $1.8 billion, operating net income available to common shareholders of $577 million, and operating earnings per diluted share of $1.59. Delie said operating EPS increased 14% year over year, attributing the growth to higher net interest income, margin expansion, and record non-interest income.

The company also reported a return on average tangible common equity of 16% and tangible book value per share of $11.87, which was up 13% from the year-ago quarter. Management noted year-end total assets exceeded $50 billion for the first time in company history.

Executives reiterated that 2025 included deliberate balance-sheet actions, including managing loan concentrations and improving the loan-to-deposit ratio to 89.7%. Delie said the company has “strategically decreased” its commercial real estate (CRE) concentration over the past two years to 197%.

Digital strategy and cost-savings focus

Delie highlighted F.N.B.’s “Clicks-to-Bricks” strategy and ongoing technology investments, including early adoption of AI. He pointed to the rollout of “Payment Switch,” a mobile-app feature designed to help customers move pre-authorized payments to F.N.B., complementing the bank’s existing direct deposit switching functionality. Management said the goal is to reduce friction for customers moving their primary banking relationship.

On expenses, Delie said disciplined cost management has produced annual cost savings of $10 million to $20 million per year since 2019. He added that the company expects “even higher levels of cost savings” in 2026 from automation and process improvements, while continuing to invest in revenue-generating businesses and its omnichannel model.

Credit trends: low nonperformers and declining criticized loans

Chief Credit Officer Gary Guerrieri said asset quality remained “at very strong levels.” Total delinquency ended the quarter at 71 basis points, up six basis points from the prior quarter, while nonperforming loans (NPLs) and other real estate owned (OREO) fell six basis points to 31 basis points, which he described as a multi-year low.

Net charge-offs were 19 basis points for the quarter and 20 basis points for the year. Guerrieri also noted criticized loans declined $147 million, or 10.2%, from the prior quarter, which he said was driven by payoff activity and reflected decreases across commercial segments.

Provision expense totaled $18.7 million for the quarter, and funded reserves ended at $440 million, or 1.26% of loans (1.32% including acquired unamortized discounts). Guerrieri said NPL coverage remained strong at 438% inclusive of those discounts. On tariffs, he said the company continued to monitor utilization and industry concentrations but had not seen material impacts on the loan portfolio since the first quarter and cited “positive credit migration.”

Fourth-quarter drivers: tax credits, deposits, margin, and fees

Chief Financial Officer Vince Calabrese said fourth-quarter operating net income totaled $181.8 million, or $0.50 per share, excluding a discretionary $20 million charitable contribution to the F.N.B. Foundation that was partially offset by a reduction in the estimated FDIC special assessment. Calabrese said total revenues were nearly $458 million, up 12.4% on an operating basis, while operating pre-provision net revenue rose 21.5% from the year-ago quarter.

The quarter also included $37.2 million of investment tax credits from a renewable energy financing transaction, partially offset by a $4.4 million pre-tax non-credit valuation impairment on the financing receivable recorded in other non-interest expense. Calabrese said renewable energy financing transactions are a core element of the equipment finance strategy, while noting certain project types are limited by changes in tax laws.

On the balance sheet, Calabrese said fourth-quarter average loans and leases were $35.0 billion, up $169 million from the prior quarter (1.9% annualized). Consumer loans rose $223 million, driven by residential mortgage and consumer line-of-credit balances, while average commercial loans and leases declined $54 million, reflecting attrition from secondary market activity, lower utilization, and scheduled CRE reductions. Within commercial, average C&I loans rose $81 million and commercial leases increased $26 million, while average CRE loans declined $158 million.

F.N.B. transferred about $200 million of performing residential mortgage loans to held for sale late in the quarter, and management expects the sale to close in the first quarter of 2026. Executives later said the loans were largely outside the immediate branch footprint and were sold to free capacity for higher-return opportunities; management also said it expected the sale to settle “basically at par.”

Average deposits totaled $38.6 billion, up $740 million (7.7% annualized) from the prior quarter, with growth driven by new and existing relationships. Non-interest-bearing deposits exceeded $10 billion and represented 26% of total deposits on a spot basis.

Net interest income rose to a record $365.4 million, up 1.7% sequentially and 13.4% year over year. The net interest margin was 3.28%, up three basis points sequentially and 24 basis points from the prior year. Calabrese attributed changes in yields and funding costs partly to 75 basis points of Federal Reserve rate cuts since September 2025, noting a cumulative spot deposit beta of 25% since rate cuts began in September 2024. Management said it expects a relatively stable net interest margin in the first quarter of 2026.

Operating non-interest income was $92.3 million, up 8.8% year over year, supported by growth in wealth management revenue, service charges tied to treasury management activity, SBA sold loan premiums, and higher BOLI income from life insurance claims. Mortgage banking income declined versus the prior year period due to higher MSR amortization and a net MSR fair value recovery in the fourth quarter of 2024, despite higher gain on sale and favorable hedge-related adjustments. Operating non-interest expense rose 3.4% year over year to $256.5 million, and the efficiency ratio improved to 53.8%.

2026 guidance and themes from Q&A

Calabrese outlined 2026 guidance, assuming two 25-basis-point rate cuts in April and October. Key items included:

• Mid-single-digit period-end loan and deposit growth versus year-end 2025
• Net interest income of $1.495 billion to $1.535 billion (first quarter: $355 million to $365 million)
• Non-interest income of $370 million to $390 million (first quarter: $90 million to $95 million)
• Non-interest expense of $1.0 billion to $1.02 billion (first quarter: $255 million to $260 million)
• Provision expense of $85 million to $105 million
• Effective tax rate of 21% to 22% (excluding potential investment tax credit activity)

During Q&A, management discussed drivers that could push fee income toward the upper end of guidance, citing newer businesses and continued contributions from core lines such as wealth, treasury management, capital markets, and mortgage. Executives also pointed to public finance buildout, M&A advisory opportunities, and derivatives activity as potential contributors.

On operating leverage, Calabrese cited fourth-quarter items he called “discrete non-run rate expenses” and said 2026 guidance assumes stronger pre-provision net revenue and expenses growing in low single digits while the company continues investing in initiatives. Executives also said they expect the efficiency ratio to reach the low 50s in the second half of 2026 and suggested that level could be sustainable.

Management reiterated a focus on organic growth and said buybacks remain attractive, noting nearly $50 million in repurchases during 2025 and indicating expectations for similar or higher activity in 2026. Executives said dividend levels remain a board discussion, with the current payout ratio around 25% providing flexibility. On M&A, Delie said the company’s priority remains organic growth and that any deal would need to be an opportunistic fit and not dilute what F.N.B. has built in areas such as deposit mix and tangible book value growth.

Looking ahead, Delie said management expects meaningful loan and deposit growth, margin expansion, and additional diversification of fee income in 2026, supported by capital flexibility and continued technology investment.

About F.N.B. (NYSE:FNB)

F.N.B. Corporation is a bank holding company headquartered in Pittsburgh, Pennsylvania. Through its principal subsidiary, FNB Bank, the company provides a broad range of commercial and consumer financial services. Founded in 1864 as the First National Bank of Pennsylvania, F.N.B. has grown through both organic expansion and strategic acquisitions to become a regional banking franchise.

The company’s main business activities include traditional deposit-taking and lending services, such as checking and savings accounts, mortgages, home equity lines of credit, and consumer and commercial loans.