10-K: F.N.B. Corp. Reports Record 2025 Revenue, Strong Capital Growth

F.N.B. Corporation achieved record total revenue of $1.8 billion and operating net income of $577 million in 2025, driven by strategic investments and diversified growth.

Summary

• Net income available to common shareholders was $565.4 million ($1.56 diluted EPS) in 2025, an increase from $459.3 million ($1.27 diluted EPS) in 2024.
• Operating net income available to common shareholders (non-GAAP) reached $576.7 million ($1.59 diluted EPS) in 2025, up from $505.2 million ($1.39 diluted EPS) in 2024.
• Total revenue hit a record $1.8 billion, marking a 10.5% increase from 2024.
• Net interest income grew to $1.4 billion, up 9.0% from 2024, reflecting growth in earning assets and lower funding costs.
• Non-interest income achieved a record $369.3 million, increasing 16.7% (or 5.4% on an operating basis) compared to 2024, with strong contributions from wealth management and capital markets.
• Total assets expanded to $50.2 billion at December 31, 2025, a 3.3% increase from $48.6 billion in 2024.
• Total loans and leases increased by 2.5% to $34.8 billion, primarily driven by consumer loan growth.
• Total deposits grew by 4.5% to $38.8 billion, reflecting organic growth in customer relationships.
• The CET1 capital ratio reached a record 11.36% at December 31, 2025, up from 10.58% in 2024.
• Tangible book value per common share (non-GAAP) increased 13% to $11.87 from December 31, 2024.
• The efficiency ratio (non-GAAP) improved to 54.8% in 2025 from 55.6% in 2024.
• Asset quality metrics remained solid, with the ratio of non-performing loans plus OREO to total loans and leases plus OREO decreasing to 0.31% from 0.48% in 2024.
• The company repurchased 3.3 million shares of common stock for $49.9 million during 2025.
• FNBPA fully deployed the $11.75 million mortgage subsidy in Charlotte and Winston Salem majority Black and Hispanic census tracts by January 2026, as part of a fair lending settlement with the DOJ.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, with record revenues, robust capital growth, and improved asset quality, indicating effective strategic execution despite a dynamic economic and regulatory landscape.

Positives

• Achieved record total revenue of $1.8 billion and record operating net income of $577 million in 2025.
• Reported operating earnings per diluted common share of $1.59, a 14.4% increase year-over-year.
• Realized all-time revenue highs for seven of the company's fee-based businesses.
• Tangible book value per share (non-GAAP) increased by a robust 13% to $11.87.
• Total assets surpassed $50 billion, indicating significant growth.
• Improved the loan-to-deposit ratio to 89.7%, enhancing balance sheet stability.
• Investments in technology, AI, and data analytics are driving automation, efficiency, and positive operating leverage.
• Net interest margin (FTE) increased by 10 basis points to 3.19%, despite FOMC rate cuts.
• Asset quality metrics remain strong, with non-performing loans plus OREO decreasing to 0.31%.
• The CET1 capital ratio reached a record 11.36%, well above regulatory minimums.
• FNBPA received an 'Outstanding' rating in its most recent Community Reinvestment Act (CRA) performance evaluation.
• Successfully deployed $11.75 million in mortgage subsidies in underserved communities as part of a fair lending settlement, without incurring civil money penalties.
• The new state-of-the-art headquarters building was certified LEED Gold in 2024, reflecting environmental commitment.

Negatives

• Yield on earning assets (non-GAAP) decreased by 13 basis points to 5.29% in 2025.
• Commercial loans and leases experienced a slight decrease of $239.2 million (1.1%) due to higher loan balance attrition from secondary market activity.
• Insurance commissions and fees decreased by $2.2 million (9.8%), primarily due to lower contingent fees.
• Dividends on non-marketable equity securities decreased by $1.5 million (6.1%).
• Net charge-offs increased to $70.5 million (0.20% of total average loans) in 2025 from $62.7 million (0.19%) in 2024.
• Parent company cash on hand decreased to $288.4 million at December 31, 2025, from $803.4 million at December 31, 2024, although it remains above internal limits.

Risks

• Credit risk associated with borrowers' ability to repay loans, particularly commercial loans and leases, and the volatility of mortgage banking profitability.
• Market interest rate fluctuations impacting net interest income, loan repayment ability, demand for interest-rate-based products, hedging effectiveness, and the value of investment securities.
• Liquidity risk, including the potential inability to fund operations, meet obligations, attract and retain sufficient deposits, or obtain funding at favorable terms, especially during periods of financial distress or elevated interest rates.
• Dependence on dividends from subsidiaries, particularly FNBPA, to meet financial obligations and pay dividends to shareholders, which can be restricted by regulatory requirements.
• The need to raise additional capital in the future to support operations or growth, which may not be available when needed or could be dilutive to existing shareholders.
• Reputation risk stemming from public perception, adverse publicity, or conflicting expectations regarding Corporate Responsibility practices (environmental sustainability, human capital, social governance).
• Operational risks, including the failure to recruit and retain qualified banking professionals, the financial soundness of other financial institutions, and the impact of economic instability or geopolitical challenges.
• Risks associated with the extensive use of quantitative models, Artificial Intelligence (AI), and generative AI technologies, including potential inaccuracies, biases, and evolving regulatory scrutiny.
• Cybersecurity risks, such as security breaches, data loss, and cyber-attacks, which could lead to loss of customer business, increased compliance costs, litigation, or regulatory action.
• Reliance on third-party vendors for critical products, information systems, and services, exposing the company to risks from vendor disruptions or failures.
• Adverse weather events, public health emergencies, or other disruptions that could negatively affect local economies in the company's markets or disrupt operations.
• Risks inherent in growth through acquisitions, including challenges in analyzing risks, integrating acquired businesses, and obtaining regulatory approvals.
• Legal and compliance risks from changes in banking laws, regulations, governmental policies, and potential investigations or enforcement actions.
• Fiscal challenges facing the U.S. government, such as debt defaults or credit rating downgrades, which could negatively impact financial markets and economic conditions.
• Changes in accounting policies, standards, and interpretations that could materially affect financial condition and results of operations.
• Anti-takeover provisions in the company's Articles of Incorporation and By-laws that may discourage or make more difficult certain acquisition attempts.
• Potential future increases in FDIC insurance assessments due to bank failures affecting the Deposit Insurance Fund.
• Adverse changes to credit ratings, which could limit access to funding, increase borrowing costs, and negatively impact reputation.
• Failure to comply with CRA and fair lending laws, including the terms of the consent orders with the DOJ and North Carolina State Department of Justice, which could lead to additional compliance costs, reputational harm, or restrictions on business activities.

Future Outlook

Management is focused on positioning the balance sheet for continued future success by diversifying revenue, allocating capital wisely, maintaining a resilient, well-underwritten loan portfolio, and strengthening client relationships through ongoing eStore and digital innovation. The company anticipates completing the remaining work for Heightened Standards compliance in 2026. Additionally, the FDIC plans to propose changes to the covered IDI rule in 2026, and the DOL will revisit the definition of 'investment fiduciary' with the objective of issuing a new rule in 2026.

Management Comments

• "Our investments in technology, AI and data analytics are driving automation, efficiency, and the flexibility to continue reinvesting in revenue-generating businesses and an enhanced omnichannel customer experience, all while delivering positive operating leverage."
• "Our financial results reflect disciplined execution of our strategy: diversifying revenue, allocating capital wisely, maintaining a resilient, well-underwritten loan portfolio, and strengthening our role as our clients primary bank through continued eStore and digital innovation."
• "Management continues to be proactive in managing our interest rate risk (IRR) position with the intention to maintain exposures near the current neutral levels."
• "Management has concluded that our cash levels remain appropriate given the current market environment."
• "Management believes we have sufficient liquidity available to meet our normal operating and contingency funding cash needs for the next twelve months and thereafter for the foreseeable future."

Industry Context

StockSavvy.ai notes that FNB's strong performance in 2025, particularly its record revenue and improved efficiency ratio, positions it favorably within a banking sector navigating evolving interest rate environments and increasing technological disruption. The company's focus on digital innovation and AI aligns with broader industry trends towards enhanced customer experience and operational efficiency, while its proactive management of interest rate risk and loan concentrations is crucial given the current macroeconomic uncertainties and regulatory scrutiny on asset quality. The ongoing regulatory changes, such as the proposed revisions to CRA rules and Heightened Standards, reflect a dynamic environment that larger financial institutions must continuously adapt to.

Comparison to Industry Standards

• FNB's efficiency ratio of 54.8% is competitive, often considered good for regional banks, with top-tier banks aiming for below 50%.
• The CET1 capital ratio of 11.36% is well above the regulatory minimum of 7.00% (including buffer), indicating strong capital adequacy compared to industry benchmarks.
• The non-performing loans plus OREO to total loans and leases plus OREO ratio of 0.31% is very strong, indicating superior asset quality compared to many peers, where ratios can range from 0.5% to over 1%.
• The 13% increase in tangible book value per share is a robust growth rate, outperforming many regional banks in the current environment.
• The company's investment in AI and digital platforms like eStore positions it to compete with larger, more technologically advanced institutions and fintech companies, which are increasingly setting industry standards for customer experience.

Corporate Governance

Legal Proceedings

• On February 5, 2024, FNBPA reached a settlement with the DOJ and the State of North Carolina to resolve fair lending allegations related to mortgage lending activities in Winston-Salem and Charlotte, North Carolina, from 2017 to 2021.
• As part of the settlement, FNBPA committed to invest a minimum of $11.75 million in a mortgage loan subsidy fund over a five-year period ending in 2029, which was fully deployed by January 2026.
• FNBPA also agreed to spend approximately $1.75 million over the five-year period on community partnerships, advertising, community outreach, and consumer education.
• The company committed to opening three new branch offices in predominantly Black and Hispanic neighborhoods (two opened in 2025, the third is under construction).
• The settlement did not include any civil money penalties against FNBPA, and the Consent Orders will be in effect for a minimum of five years.

Related Party Transactions

• Loans extended to certain directors and executive officers and their related interests totaled $7 million at December 31, 2025, made in the ordinary course of business under normal credit terms.
• An operating lease exists with a related party, with $70.6 million in operating right-of-use assets and $101.2 million in operating lease liabilities at December 31, 2025.
• FNBPA made a construction loan to the same related party as the operating lease.

Stakeholder Impact

• Shareholders benefit from increased net income, diluted EPS, and tangible book value per share, along with continued quarterly cash dividends and share repurchases.
• Employees benefit from competitive compensation and benefits programs, robust development resources, and a recognized positive workplace culture, supporting retention and growth.
• Customers gain from enhanced digital banking services, an improved omnichannel experience, and targeted community programs like the mortgage subsidy fund.
• Communities benefit from significant contributions to the FNB Foundation, mortgage assistance programs, and new branch openings in underserved areas, reinforcing local economic development.
• Regulators observe compliance with capital adequacy, CRA, and fair lending requirements, alongside proactive risk management, contributing to financial system stability.
• Creditors are positively impacted by the company's strong capital base, improved liquidity position, and disciplined financial management, enhancing creditworthiness.

Next Steps

• Complete the remaining work for Heightened Standards compliance in 2026.
• The FDIC plans to propose changes to the covered IDI rule in 2026 to codify content waivers and ensure critical information for failed bank resolution.
• The Department of Labor (DOL) will revisit the definition of 'investment fiduciary' with the objective of issuing a new rule in 2026.
• Continue to monitor developments regarding environmental, social, and governance matters and alternative assets investing under ERISA.
• An expected loan sale of approximately $200 million of performing residential mortgage loans is anticipated to close in the first quarter of 2026.
• The third new branch office in predominantly Black and Hispanic neighborhoods in Winston Salem, North Carolina, will soon begin its construction phase.

Key Dates

Recommendation

F.N.B. Corporation delivered exceptional financial performance in 2025, achieving record revenues and operating net income, coupled with a significant increase in diluted EPS. The company demonstrated strong capital generation, evidenced by a record CET1 ratio and a substantial rise in tangible book value per share. Asset quality remains robust with declining non-performing assets. Strategic investments in technology and diversified fee-based businesses are yielding positive operating leverage. While commercial loan growth was slightly down, overall loan and deposit growth was solid, and the loan-to-deposit ratio improved. The proactive management of interest rate risk and successful resolution of the DOJ fair lending matter further de-risk the investment. These factors, combined with a competitive efficiency ratio and commitment to shareholder returns through dividends and repurchases, make FNB a compelling "Strong Buy" for investors seeking a well-managed regional bank with clear growth drivers.

Keywords

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