F.n.b. Beats Q2 2025 EPS by 5.9%

F.n.b. (FNB 1.17%), a diversified regional bank with a growing digital and branch footprint, reported its Q2 2025 earnings on July 17, 2025. The results surpassed analyst estimates, with non-GAAP earnings per share were $0.36 versus the $0.34 estimate, and GAAP revenue was $438 million compared to the $424.17 million forecast. The quarter set new highs for profitability and capital, driven by a wider net interest margin, solid gains in both loans and deposits, and record fee income. Overall, the quarter highlighted core business strength, growing diversification, and continued investment in technology.

Source: Analyst estimates for the quarter provided by FactSet.

Overview of F.n.b. (FNB 1.17%) and Its Core Business

F.n.b. is a regional bank with headquarters in Pittsburgh, Pennsylvania. The bank serves consumers, businesses, and government clients with offerings that include loans, deposit products, and wealth management.

The bank has recently focused on expanding its market reach—both through traditional branches and digital channels—and on investing in new technology platforms. It places strategic weight on maintaining strong regulatory capital, growing diversified fee income, and using digital tools to improve customer acquisition and retention.

Quarter Highlights: Financial Results and Strategic Developments

The second quarter produced strong headline figures, with EPS and revenue in the second quarter of 2025 were both ahead of expectations and last year’s levels. Net income available to common shareholders (GAAP) reached $130.7 million in Q2 2025. Average loan and lease balances rose to $34.5 billion, up 3.7% in Q2 2025, while Average deposits grew 7.3% to $37.1 billion. These gains reflected balanced growth in both commercial and consumer segments.

Net interest margin (FTE) (non-GAAP)—an indicator of lending profitability—expanded to 3.19% in Q2 2025, up from 3.09 % in the previous year and 3.03 % last quarter. This rise stemmed from a combination of higher revenue from interest-earning assets and disciplined management of deposit funding costs. The loan-to-deposit ratio improved to 92%.

Non-interest income, the portion of revenues not tied to lending, reached $91.0 million in the second quarter—a record level for the company. Fee income diversity amplified, with capital markets income increasing 34.1% year over year, wealth management revenues up 5.2% year over year in the second quarter, and other fee lines such as international banking and gains from lease disposals contributing to non-interest income growth. The acquisition of Raptor Partners, a financial advisory firm, added a new advisory product line.

The bank continued to invest in technology, including AI-driven digital onboarding and a direct deposit switch capability, aimed at making it easier for new clients to move primary banking relationships. The Clicks-to-Bricks approach blends physical locations with digital platforms to streamline account opening and product selection for consumers. These tools are integrated with the eStore platform, allowing customers to open and manage products online, supported by advanced analytics and automation.

From a business line view, Commercial loan growth was led by a 17.8% increase in commercial leases, while commercial real estate portfolios saw risk managed down in line with capital planning. Consumer loan growth was strong in residential mortgages, which increased by $1.2 billion year over year in the second quarter.

Non-interest expense increased 8.7% year over year to $246.2 million. This included higher salaries and benefits, up 7.4%, reflecting continued hiring for market and risk infrastructure expansion. Technology and branch growth contributed to a 10.1% rise in occupancy and equipment costs. The efficiency ratio (non-GAAP), which tracks costs as a portion of income, improved sequentially but remained slightly higher compared to Q2 2024.

Credit quality remained robust, but The provision for credit losses (GAAP) jumped 26.8% compared to Q2 2024. Net charge-offs—the amount of loans written off as unrecoverable—rose to 0.25% of average loans, up from 0.09% in Q2 2024. The allowance for credit losses stayed at 1.25% of loans, and measures such as non-performing loans remained low.

Regulatory capital metrics were at record highs, with The Common Equity Tier 1 (CET1) regulatory capital ratio was 10.8% as of Q2 2025, well above regulatory minimums. Tangible book value per share (non-GAAP) climbed 12.8% to $11.14. The company repurchased 0.7 million shares at an average price of $13.85.

The quarterly dividend remained steady at $0.12 per share, unchanged from Q2 2024.

Looking Ahead: Guidance and Investor Priorities

Management maintained full-year guidance for 2025, projecting net interest income of $1.345 billion to $1.385 billion for 2025 and non-interest income of $350 million to $370 million. Expense guidance was also held steady, with non-interest expenses forecast between $965 million and $985 million for the year. The provision for credit losses (GAAP) is expected to fall between $85 million and $105 million.

Loan growth pipelines remain slightly softer on a year-over-year basis, but the bank expects a seasonal pickup in the second half of 2025. Management also cited ongoing investments in technology and compliance as areas to watch, especially with asset levels approaching the $50 billion threshold that triggers more stringent regulatory standards under the Dodd-Frank Act. Investors will likely monitor expense growth versus revenue, ongoing shifts in deposit mix toward higher-rate products, and the impact of rising credit costs as the year progresses.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.