Executive Summary

EPS beat, revenue slight miss: Q1 diluted EPS was $0.32 vs S&P consensus $0.298; revenue (S&P definition) was $394.1M vs $409.7M consensus. EPS beat driven by stable NIM, lower deposit costs, and solid fee lines; revenue shortfall reflects definitional differences and softer capital markets fees. Bold: EPS beat; revenue miss . Q1 2025 S&P estimates and actuals marked with asterisks below (S&P Global).*
Margin stabilized; deposit costs fell: NIM (FTE) held at 3.03% with total cost of funds down 10 bps q/q to 2.32%, while interest-bearing deposit costs fell 24 bps to 2.76% .
Asset quality solid; capital at records: NCOs 0.15% annualized, NPL/Loans 0.47%-0.48%, CET1 10.7% (record), TCE/TA 8.37%; TBVPS rose 12.3% y/y to $10.83 .
Guidance maintained; catalysts: Management maintained FY25 guides (NII $1.345–$1.385B; non-interest income $350–$370M; non-interest expense $965–$985M; provision $85–$105M; tax 21–22%) and guided Q2 NII $325–$335M, with swap drag moderating ($8M in Q1 to ~$6M in Q2). Focus near term on NII trajectory, deposit betas, and CRE de-risking .

What Went Well and What Went Wrong

What Went Well
- Stable NIM, lower deposit costs: NIM (FTE) 3.03% with 10 bps decline in cost of funds and 24 bps decline in interest-bearing deposit costs q/q; NII grew 0.5% q/q despite two fewer days .
- Fee resilience; record Wealth Management: Non-interest income $87.8M; Wealth Mgmt revenues a record $21.2M (trust +8.5%, securities +8.2%), aided by diversified advisory businesses .
- Capital and TBV strength: CET1 10.7% (record); TBVPS $10.83 up 12.3% y/y; TCE/TA 8.37% . CEO: “Record CET1 … tangible book value per share growth (non-GAAP) of 12.3% to $10.83” .
What Went Wrong
- Modest revenue miss vs S&P: Revenue (S&P definition) $394.1M vs $409.7M consensus; capital markets income $5.3M declined with softer commercial activity . Q1 2025 S&P estimates/actuals marked with asterisks below (S&P Global).*
- Operating efficiency seasonally higher: Efficiency ratio 58.5% vs 56.9% prior quarter on seasonal comp/taxes; salaries and benefits +$7.1M q/q .
- CRE still de-risking; deposit mix shift: Nonowner CRE concentration reduced to 229% of capital with target ~200%; NIB deposits stable at 26% but down y/y (mix shift toward higher-yielding products) .

Financial Results

Company-reported income components (oldest → newest):

Metric	Q1 2024	Q4 2024	Q1 2025
Diluted EPS ($)	0.32	0.30	0.32
Net Interest Income ($M)	319.0	322.2	323.8
Non-Interest Income ($M)	87.9	50.9	87.8
NIM (FTE) (%)	3.18	3.04	3.03
Efficiency Ratio (FTE) (%)	56.00	56.88	58.50
Provision for Credit Losses ($M)	13.9	22.3	17.5
Net Charge-offs (% of avg loans, annualized)	0.16	0.24	0.15

Consensus vs Actual (S&P Global; current quarter):

Metric	Q1 2025 Consensus	Q1 2025 Actual
EPS ($)	0.298*	0.320 (Beat, +$0.022)
Revenue ($M, S&P definition)	409.7*	394.1* (Miss, -$15.6)

*Values retrieved from S&P Global.

Balance sheet and capital (period-end, $B unless noted):

Metric	Q1 2024	Q4 2024	Q1 2025
Total Loans & Leases	32.584	33.939	34.235
Total Deposits	34.735	37.107	37.239
Loan-to-Deposit Ratio (%)	94	91	92
CET1 Ratio (%)	10.2	10.6	10.7
TCE/TA (%)	7.99	8.18	8.37
TBVPS ($)	9.64	10.49	10.83

Selected non-interest income details (Q1 2025, with compares):

Line Item ($M)	Q1 2024	Q4 2024	Q1 2025
Service Charges	20.6	23.1	22.4
Interchange & Card Fees	12.7	12.9	12.4
Trust Services	11.4	11.6	12.4
Securities Commissions & Fees	8.2	7.0	8.8
Capital Markets Income	6.3	6.6	5.3
Mortgage Banking	7.9	7.0	7.0
BOLI	3.3	3.5	5.4

Asset quality and reserves:

Metric	Q1 2024	Q4 2024	Q1 2025
NPL / Loans (%)	0.32	0.47	0.47
NPA ($M)	108	162	163
Delinquency (Past due + nonaccrual) / Loans (%)	0.64	0.83	0.75
ACL / Loans (%)	1.25	1.25	1.25
NCOs (annualized, %)	0.16	0.24	0.15

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Income ($M)	Q2 2025	N/A (Mgmt: unchanged vs prior quarter)	325–335	Maintained
Non-Interest Income ($M)	Q2 2025	N/A	85–90	Maintained
Non-Interest Expense ($M)	Q2 2025	N/A	235–245	Maintained
Net Interest Income ($B)	FY 2025	Unchanged vs Q4 call	1.345–1.385	Maintained
Non-Interest Income ($M)	FY 2025	Unchanged	350–370	Maintained
Non-Interest Expense ($M)	FY 2025	Unchanged	965–985	Maintained
Provision for Credit Losses ($M)	FY 2025	Unchanged	85–105	Maintained
Effective Tax Rate (%)	FY 2025	Unchanged	21–22	Maintained
Common Dividend ($/qtr)	Ongoing	$0.12 (recent)	$0.12	Maintained

Notes: Management stated FY25 guidance is unchanged versus last quarter; prior-quarter numeric ranges were not disclosed in accessible materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Digital/AI & Primacy	eStore, data analytics and deposit capture; Clicks-to-Bricks emphasized	Launched automated Direct Deposit Switch (via Atomic) to reduce onboarding friction; AI/ML used for product recommendations	Advancing capability; primacy push continues
Deposit costs & betas	Targeting lower betas; mix shift to IB deposits; loan-to-deposit ratio improved	IB deposit costs -24 bps q/q; total cost of funds -10 bps; NIB stable at 26%	Improving funding costs; stable mix
Tariffs/Macro	NA	Completed tariff stress tests; <5% at-risk exposures; added qualitative reserve; prepared for scenarios	New monitoring; manageable risk per mgmt
CRE	Intentional pullback; reduce exposure; stable metrics	Nonowner CRE delinquency/NPL improved; concentration down to 229% of capital; target ~200%	De-risking continues
Revenue diversification	Record non-interest income Q3; capital markets, swaps, international	Record Wealth Mgmt; Raptor Partners acquisition to add investment banking advisory	Broadening fee platform
Capital & buybacks	CET1 10.4% Q3; balance sheet actions; M&A disciplined	CET1 10.7%; repurchased 0.7M shares; opportunistic buybacks once tariff visibility improves	Higher flexibility; patient on buybacks

Management Commentary

CEO (prepared): “F.N.B. generated modest revenue growth… Record capital levels, with CET1 of 10.7% and TCE/TA of 8.4%... Our comprehensive digital strategy, including the use of AI, is designed to drive client acquisition, engagement… primacy” .
CCO: “Less than 5% of the exposures were at risk of greater impact from the direct tariffs… ending funded reserve… at 1.25%, unchanged… NPL coverage 267%” .
CFO: “We are maintaining our full year balance sheet guidance… FY NII $1.345–$1.385B… Q2 NII $325–$335M… expect improved performance with positive operating leverage in the second half of 2025” .

Q&A Highlights

NII trajectory & swaps: March NIM 3.08% vs 3.03% quarterly; swap drag moderating from ~$8M in Q1 to ~$6M in Q2, then minimal by Q4 .
Expense levers: $15–$20M 2025 cost savings and $5–$10M “heightened standards” costs embedded; variable comp flexes with revenue .
Loan growth outlook: Pipelines softer y/y (~10% down) and some pause from tariffs; still confident in mid-single-digit spot-to-spot FY loan growth; residential mortgage ~40% of net growth; CRE intentionally slower .
Deposits & primacy: NIB stable at ~26%; digital onboarding and direct deposit switch expected to support primacy and lower funding costs .
Capital return: Repurchased ~741K shares in Q1; plan opportunistic buybacks once macro/tariff visibility improves; stock viewed as “very cheap” .
CRE concentration: Nonowner CRE down to 229% of capital; medium-term target ~200%; portfolio performing; no runoff portfolio strategy .

Estimates Context

Q1 2025 EPS: $0.32 vs $0.298 consensus, a beat of ~$0.023 (≈7.5%). Q1 2025 revenue (S&P definition): $394.1M vs $409.7M consensus, a miss of ~$15.6M (≈3.8%). EPS beat likely reflects margin stability and lower deposit costs; revenue variance may reflect definitional differences vs company-reported NII+fees (company “total revenue” ~ $411.2M) and softer capital markets . S&P Global values marked with asterisks above.*

Where estimates may adjust: Street may recalibrate NII path/fee lines given deposit cost declines, swap drag abating, and management’s maintained FY NII guide and Q2 ranges .

Key Takeaways for Investors

EPS beat with margin stability and improving deposit costs; watch for continued NIM progression as swap drag fades and CDs reprice lower into Q2–Q3 .
Capital and TBV momentum provide flexibility for opportunistic buybacks/M&A; mgmt signaling patience given tariff uncertainty .
Fee diversification is working (record Wealth Mgmt; investment banking tuck-in); potential upside if middle-market M&A and derivatives activity pick up in 2H25 .
Asset quality remains solid; tariff stress-testing suggests manageable direct exposure (<5% at-risk); CRE concentration trending toward ~200% target .
Guidance maintained; Q2 set-up constructive (NII $325–$335M; expenses $235–$245M). Positive operating leverage expected in 2H25 if deposit betas continue to fall and fees hold .
Tactical focus: monitor deposit mix (NIB ~26%), CD repricing cadence, and capital markets fee run-rate; digital primacy tools (direct deposit switch) could be a sleeper tailwind to funding costs .
Near-term trading lens: EPS beat vs revenue miss; stability in NIM and guidance maintenance likely anchor sentiment; upcoming catalysts include Q2 NII delivery vs upper half of range and any update on buybacks/tariff impacts .

Additional Context and Sources

Q1 2025 8‑K earnings press release and detailed financial tables .
Q1 2025 earnings call transcript with guidance and Q&A .
Prior quarters for trend: Q4 2024 8‑K and metrics ; Q3 2024 call themes .
Product/strategy press releases: Direct Deposit Switch launch (Atomic) ; Raptor Partners investment banking acquisition ; recent dividend declaration ($0.12) .

Footnote: S&P Global consensus/actuals are used for “Estimates Context” and marked with asterisks in the tables. Values retrieved from S&P Global.*

FNB CORP/PA/ (FNB)·Q1 2025 Earnings Summary