FNB (FNB) Q2 2025 Earnings Call Transcript

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Friday, July 18, 2025 astatine 8:30 a.m. ET

• Chairman, President, and Chief Executive Officer — Vincent J. Delie

• Chief Financial Officer — Vincent J. Calabrese

• Chief Credit Officer — Gary Lee Guerrieri

• Chief Corporate Strategy and Product Officer — Christopher Chan

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Vincent J. Delie: Thank you, and invited to our 2nd 4th net call. Joining maine contiguous are Vince Calabrese, our Chief Financial Officer; and Gary Guerrieri, our Chief Credit Officer. The 2nd quarter's beardown fiscal show led to nett income disposable to communal shareholders of $130.7 million, oregon $0.36 per share. F.N.B. achieved linked-quarter gross maturation of 6.5%, driven by nett involvement income of $347 cardinal and noninterest income of $91 million, each astatine grounds levels. Pre-provision nett gross roseate 16% from the anterior 4th to $192 million.

Because of our sustained beardown profitability, we proceed to turn superior and person achieved grounds levels with the CET1 ratio approaching 11%, tangible communal equity astatine 8.5%, and tangible publication worth per stock of $11.14, up 13% year-over-year. The enlargement of our superior basal provides flexibility arsenic F.N.B. repurchased 725,000 shares this 4th astatine a weighted mean terms of $13.85. Even with beardown maturation of capital, we proceed to nutrient coagulated returns with instrumentality connected mean tangible communal equity astatine 14%. There was important borderline enlargement of 16 ground points linked-quarter resulting successful a nett involvement borderline of 3.19%.

F.N.B. benefited from continued integrated maturation passim our divers geographic footprint arsenic spreads connected caller commercialized originations successful the 2nd 4th remained comparatively stable, and mean annualized indebtedness maturation totaled 5.3%. Additionally, our aggregate backing outgo declined linked-quarter, portion wide deposit balances and different backing sources grew astir $600 million. Average full deposits grew to implicit $37 billion, portion we proceed to support a noninterest-bearing request deposit level of 26%. Our occurrence successful increasing deposits and maintaining a favorable deposit premix is simply a cardinal portion of our strategy to turn profitably. The loan-to- deposit ratio ended the 4th astatine 91.9%, down somewhat from the past quarter, and down 450 ground points since June 2024.

These results were driven by our absorption connected deepening lawsuit relationships by increasing deposits and serving arsenic their superior bank. F.N.B. continues to put successful capabilities to summation marketplace stock and further outpace our competitors, peculiarly astir noninterest income and initiatives to diversify our gross streams. Adding to a bid of records, we reported the highest level of noninterest income successful the company's history, much than doubling our noninterest income implicit the past 10 years. Debt superior markets and treasury absorption reached grounds levels this 4th and are examples of however F.N.B. has established, oregon importantly expanded, 8 concern lines that are present multimillion dollar gross generators.