F.N.B. Corporation’s second quarter results saw revenue and adjusted EPS both surpass Wall Street’s expectations, driven by robust net interest income and expansion of noninterest income. Management emphasized that organic loan and deposit growth, margin expansion, and progress in digital banking initiatives contributed to the quarter’s performance. CEO Vincent Delie attributed improvements to “continued organic growth throughout our diverse geographic footprint” and highlighted the success of new product applications and AI-driven customer engagement. The market’s muted reaction reflected results that aligned with broader expectations and sustained operational momentum.
Is now the time to buy FNB? Find out in our full research report (it’s free).
F.N.B. Corporation (FNB) Q2 CY2025 Highlights:
- Revenue: $438.2 million vs analyst estimates of $422.8 million (8.5% year-on-year growth, 3.7% beat)
- Adjusted EPS: $0.36 vs analyst estimates of $0.34 (6.3% beat)
- Adjusted Operating Income: $169.4 million vs analyst estimates of $178.1 million (38.7% margin, 4.9% miss)
- Market Capitalization: $5.57 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From F.N.B. Corporation’s Q2 Earnings Call
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Daniel Tamayo (Raymond James): asked about assumptions behind margin guidance and the potential for margin contraction in Q3. CFO Vincent Calabrese clarified that margins are expected to be “flattish to up a tick,” reflecting stable earning asset growth and deposit costs.
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Russell Gunther (Stephens): inquired about competitive pressures on deposit costs and how F.N.B. plans to manage incremental funding spread. CEO Vincent Delie emphasized the company’s strong historical organic deposit growth and success with new relationship banking tools.
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Casey Haire (Autonomous Research): questioned whether guidance for net interest income was conservative given current margin and loan acceleration. Calabrese responded that guidance reflects uncertainty, especially around Fed policy and macroeconomic volatility.
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Timur Braziler (Wells Fargo): sought color on the composition of future loan growth, specifically the shift from residential to commercial loans. Delie explained that commercial and industrial loan growth would offset tapering mortgage activity, with commercial real estate exposure expected to decline.
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Kelly Motta (KBW): asked about capital management priorities and the outlook for branch expansion. Calabrese indicated flexibility to repurchase shares or pursue dividends, with Delie highlighting ongoing de novo branch openings in strategic markets as part of long-term growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of commercial loan origination and successful transition from mortgage-driven growth, (2) continued uptake and effectiveness of digital onboarding and AI-enabled personalization, and (3) the sustainability of deposit growth in key markets. Other important drivers include the company’s ability to manage funding costs amid interest rate changes and execute on new business line expansions.
F.N.B. Corporation currently trades at $15.50, down from $15.90 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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