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

Shares of F.N.B. Corporation FNB rose 1.6% in after-hours trading following the release of its third-quarter 2025 results. Adjusted earnings of 41 cents per share outpaced the Zacks Consensus Estimate of 37 cents. Also, the bottom line compared favorably with earnings of 34 cents in the prior-year quarter.Results benefited from growth in net interest income (NII) and non-interest income. Higher loans and deposits were the other positives. However, higher provisions and adjusted expenses were the undermining factors. The results excluded certain notable items. Including those, net income available to its common stockholders was $149.5 million, up 35.8% year over year. Our estimate for the metric was $130 million.FNB’s Revenues Improve, Expenses DeclineQuarterly net revenues were $457.4 million, up 10.8% from the year-earlier quarter. Further, the top line beat the Zacks Consensus Estimate of $443.1 million. NII was $359.3 million, up 11.1% from the prior-year quarter. The increase was mainly driven by growth in earning assets and lower interest-bearing deposit costs. Moreover, net interest margin or NIM (FTE basis) (non-GAAP) expanded 17 basis points (bps) year over year to 3.25%. Our estimates for NII and NIM were pegged at $350.9 million and 3.22%, respectively.Non-interest income was $98.2 million, up 9.5%. The growth was driven by an increase in almost all components except service charges, insurance commissions and fees, and bank-owned life insurance income. Our estimate for the metric was $89.8 million.Non-interest expenses were $243.5 million, down 2.4% year over year. Excluding one-time costs, adjusted expenses rose 5.1%. Our estimate for the same was $240.6 million. At the end of the third quarter, net loans and leases were $34.5 billion, up marginally on a sequential basis. Total deposits were $38.4 billion, up 1.8%. Our estimates for net loans and leases and total deposits were $34.88 billion and $38.11 billion, respectively.F.N.B. Corp’s Credit Quality: Mixed BagFNB’s provision for credit losses was $24 million, up 2.4% from the prior-year quarter. Our estimate for provisions was $28.7 million.On the other hand, the ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO decreased 2 bps to 0.37%. Total delinquency decreased 14 bps to 0.65%.FNB’s Capital & Profitability Ratios ImproveAs of Sept. 30, 2025, the Tier I leverage ratio was 8.92%, up from 8.64% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 8.69% from the prior-year quarter’s 8.17%. As of Sept. 30, 2025, the common equity Tier 1 (CET1) ratio was 11% compared with 10.4% in the prior-year quarter.At the end of the third quarter, the return on total average assets was 1.20%, up from 0.92% in the year-ago period. Return on average equity was 9.02% compared with 7.10% in the prior-year quarter.FNB’s Share Repurchase UpdateDuring the reported quarter, F.N.B. Corp repurchased 0.8 million shares at an average price of $15.50.Our Take on FNBFNB’s solid liquidity position bodes well for the future. The company’s top line is expected to benefit from its efforts to increase fee income, its diverse revenue streams, relatively high rates, opportunistic acquisitions and de novo branch expansion in high-growth markets. However, persistently rising expenses and significant commercial loan exposures are headwinds.F.N.B. Corporation Price, Consensus and EPS Surprise F.N.B. Corporation price-consensus-eps-surprise-chart | F.N.B. Corporation QuoteCurrently, FNB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksKeyCorp’s KEY third-quarter 2025 adjusted earnings per share (EPS) from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.KEY’s results primarily benefited from higher NII and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors.Hancock Whitney Corp.’s HWC third-quarter 2025 EPS of $1.49 exceeded the Zacks Consensus Estimate of $1.41. Further, the bottom line rose 12% from the prior year quarter.Results benefited from an increase in non-interest income and NII alongside lower provisions. Also, higher loans were another positive. However, higher expenses alongside lower deposit balances were headwinds.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KeyCorp (KEY): Free Stock Analysis Report F.N.B. Corporation (FNB): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks