F.N.B. Corporation (NYSE:FNB) Delivers Strong Q2 Numbers

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4 days ago

Regional banking company F.N.B. Corporation (NYSE:FNB) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 8.5% year on year to $438 million. Its GAAP profit of $0.36 per share was 6.3% above analysts' consensus estimates.
Is now the time to buy F.N.B. Corporation? Find out in our full research report.
F.N.B. Corporation (FNB) Q2 CY2025 Highlights:
Net Interest Income: $347.2 million vs analyst estimates of $334.3 million (9.9% year-on-year growth, 3.8% beat)
Net Interest Margin: 3.2% vs analyst estimates of 3.1% (10 basis point year-on-year increase, 11.2 bps beat)
Revenue: $438 million vs analyst estimates of $422.8 million (8.5% year-on-year growth, 3.6% beat)
Efficiency Ratio: 54.8% vs analyst estimates of 56.4% (1.6 percentage point beat)
EPS (GAAP): $0.36 vs analyst estimates of $0.34 (6.3% beat)
Market Capitalization: $5.58 billion
"F.N.B. Corporation reported strong second quarter results, generating earnings per diluted common share of $0.36 with record revenue of $438 million, a 6.5% linked-quarter increase, principally driven by margin expansion, growth in net interest income and non-interest income. Pre-provision net revenue (non-GAAP) grew significantly with linked-quarter growth of 16%," said F.N.B. Corporation Chairman, President and Chief Executive Officer, Vincent J. Delie.
Company Overview
Tracing its roots back to 1864 during the Civil War era, F.N.B. Corporation (NYSE:FNB) is a diversified financial services holding company that provides banking, wealth management, and insurance services to consumers and businesses across seven states and Washington, D.C.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income.
Over the last five years, F.N.B. Corporation grew its revenue at a decent 6.1% compounded annual growth rate. Its growth was slightly above the average bank company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. F.N.B. Corporation's recent performance shows its demand has slowed as its revenue was flat over the last two years.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, F.N.B. Corporation reported year-on-year revenue growth of 8.5%, and its $438 million of revenue exceeded Wall Street's estimates by 3.6%.
Net interest income made up 78.5% of the company's total revenue during the last five years, meaning lending operations are F.N.B. Corporation's largest source of revenue.
Our experience and research show the market cares primarily about a bank's net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They're also valued based on their balance sheet strength and ability to compound book value (another name for shareholders' equity) over time.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
F.N.B. Corporation's TBVPS grew at an impressive 7.9% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 12.6% annually over the last two years from $8.79 to $11.14 per share.
Over the next 12 months, Consensus estimates call for F.N.B. Corporation's TBVPS to grow by 9.1% to $12.16, decent growth rate.
Key Takeaways from F.N.B. Corporation's Q2 Results
We enjoyed seeing F.N.B. Corporation beat analysts' expectations for every key metric we track. Overall, we think this was a great quarter. The stock remained flat at $16.05 immediately after reporting.
Indeed, F.N.B. Corporation had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.