F.N.B. Corporation (FNB) is a diversified financial services company operating in seven states and the District of Columbia. With a rich history dating back to 1864, FNB has evolved into a leading regional bank, providing a comprehensive suite of commercial and consumer banking solutions, wealth management services, and insurance products to its customers.
Business Overview and History
FNB's origins can be traced back to the founding of First National Bank of Pennsylvania in 1864. Over the decades, the company has navigated various economic cycles and industry challenges, emerging as a stronger and more resilient institution. In the early years, FNB focused on providing commercial and consumer banking services within Pennsylvania, steadily expanding its branch network and product offerings over time.
A significant milestone in FNB's history occurred in 1983 when the company converted from a national bank charter to a state-chartered bank holding company. This strategic move allowed FNB to diversify into new business lines, setting the stage for its future growth and expansion.
The 1990s and 2000s marked a period of strategic acquisitions for FNB, as the company selectively acquired banks and financial services firms to expand its geographic footprint and capabilities. Notable transactions included the acquisitions of Yadkin Bank in 2017 and Howard Bancorp in 2022, which significantly increased FNB's presence in the Carolinas and Mid-Atlantic regions, respectively. These deals played a crucial role in transforming FNB into a major regional banking franchise.
Throughout its history, FNB has demonstrated resilience in the face of challenges. The company successfully navigated the 2008-2009 financial crisis, adapting to a difficult operating environment while maintaining its focus on conservative risk management. Additionally, FNB has invested significantly in digital capabilities to meet evolving customer expectations and adapt to the rapid technological changes disrupting the banking industry.
Under the visionary leadership of Chairman, President, and CEO Vincent J. Delie, Jr., who has been with the company for over 20 years, FNB has undergone a remarkable transformation. Delie's strategic vision has guided FNB through the challenges of the Great Recession, the COVID-19 pandemic, and the current economic environment, positioning the company for continued success.
In 2024, FNB celebrated its 160th anniversary, marking a significant milestone in the company's history. The same year, the company moved into its new state-of-the-art corporate headquarters, the FNB Financial Center, in Pittsburgh's Lower Hill District. This impressive facility serves as the anchor for a large-scale urban redevelopment project expected to drive over $1 billion in economic expansion, further solidifying FNB's commitment to the communities it serves.
Financial Performance and Strength
FNB's financial performance has been consistently strong, showcasing its ability to navigate various economic conditions. As of the end of 2024, the company reported total assets of $48.6 billion, up 5.3% from the previous year. This growth was driven by a 5% increase in total loans and leases, which reached $33.9 billion, and a 6.9% increase in total deposits, which climbed to $37.1 billion.
The company's net income available to common shareholders for the full year 2024 was $459.3 million, or $1.27 per diluted common share. On an operating basis, FNB reported earnings per diluted common share (non-GAAP) of $1.39, excluding $0.12 per share of significant items impacting earnings.
FNB's balance sheet strength is further evidenced by its record-high capital ratios. As of the end of 2024, the company's CET1 ratio stood at 10.6%, and its tangible common equity to tangible assets ratio (non-GAAP) reached 8.2%. These robust capital levels provide FNB with the flexibility to deploy capital strategically, support organic growth, and pursue value-enhancing opportunities.
For the full year 2024, FNB reported total revenue of $1.60 billion and net income of $465 million. In the fourth quarter of 2024, the company generated revenue of $373 million and net income of $110 million. The company's tangible book value per share increased by 11% to a record $10.49.
Liquidity
FNB maintains strong liquidity positions to ensure it can meet its financial obligations and support its business operations. The company's liquidity management strategy includes maintaining a diverse funding base, access to various liquidity sources, and a conservative approach to balance sheet management. As of the end of 2024, FNB reported a healthy liquidity coverage ratio, demonstrating its ability to withstand potential stress scenarios and meet short-term cash flow requirements.
The company's cash position stood at $2.42 billion as of December 31, 2024. Additionally, FNB has $16.06 billion in unused wholesale credit availability, which represents 33.2% of FNBPA's assets. This substantial liquidity buffer provides FNB with ample flexibility to manage its operations and pursue growth opportunities.
Diversified Revenue Streams and Strategic Initiatives
One of FNB's key strengths is its diversified revenue streams, which have enabled the company to navigate various market conditions. In 2024, the company reported record non-interest income of $350.4 million on an operating basis (non-GAAP), demonstrating the success of its strategy to expand its product and service offerings.
FNB has been proactive in identifying and introducing new high-value business units that complement its existing services. Over the past decade, the company has established or significantly expanded eight business lines that are now multimillion-dollar revenue generators, providing FNB with high returns on investment and additional granularity in its fee income composition.
Looking ahead to 2025, FNB is further enhancing its capabilities by expanding its capital markets offerings to include commodities hedging, public finance, and commercial investment banking services. Additionally, the company plans to strengthen its treasury management, merchant services, and payment capabilities, positioning it to capitalize on the growing demand for these services.
These strategic initiatives, coupled with FNB's investments in technology and digital banking solutions, have positioned the company as an industry leader. The company's proprietary eStore platform, which allows customers to apply for up to 30 consumer products simultaneously, has seen significant adoption, with a 41% increase in consumer loan application volume and a nearly 30% increase in consumer deposit application volume since its launch.
Business Segments
FNB operates through three main business segments: Community Banking, Wealth Management, and Insurance.
The Community Banking segment is the largest contributor to FNB's overall business, offering a wide range of commercial and consumer banking services. In 2024, this segment generated $1.30 billion in net interest income and $223 million in non-interest income. The segment's net income of $481 million accounted for the majority of the company's total earnings.
The Wealth Management segment provides personal and corporate fiduciary services, including trust administration, investment management, and securities brokerage through a third-party arrangement. As of December 31, 2024, the segment had $9.52 billion in assets under management, up from $8.63 billion the prior year. Wealth Management contributed $77 million in non-interest income and $18 million in net income to FNB's overall results in 2024.
The Insurance segment operates through FNB's insurance agency subsidiary, offering commercial and personal insurance products from major carriers. This segment generated $23 million in non-interest income and $3 million in net income for the year, complementing FNB's other financial services and allowing the company to provide a more comprehensive suite of products to its customers.
Risk Management and Regulatory Oversight
FNB's approach to risk management has been a key driver of its success. The company has implemented a comprehensive risk framework that is closely integrated with its business strategies, ensuring that risk considerations are at the forefront of decision-making. FNB's credit quality metrics have remained stable, with total delinquency at 0.83% and net charge-offs at 0.19% for the full year 2024.
As a regulated financial institution, FNB operates under the supervision of various federal and state agencies, including the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. The company has consistently maintained well-capitalized regulatory ratios, with a CET1 ratio of 10.6% as of the end of 2024, providing a solid foundation for growth and compliance with heightened regulatory requirements.
Outlook and Growth Opportunities
FNB's management team has provided guidance for the full year 2025, projecting mid-single-digit growth in both loans and deposits. The company expects net interest income to range between $1.345 billion and $1.385 billion, with non-interest income anticipated to be between $350 million and $370 million. For the first quarter of 2025, FNB projects net interest income between $315 million and $325 million, and non-interest income between $85 million and $90 million.
The company's non-interest expense for 2025 is expected to be between $965 million and $985 million, representing a 4.6% increase at the midpoint versus 2024 (excluding tax credit related expenses). For the first quarter of 2025, non-interest expense is projected to be between $245 million and $255 million. FNB anticipates provision expense for 2025 to be between $85 million and $105 million, with a full-year effective tax rate between 21% and 22%.
These projections reflect assumptions of two 25 basis point interest rate cuts by the Federal Reserve in March and June 2025, demonstrating FNB's proactive approach to navigating the evolving economic landscape.
FNB's strategic focus on expanding its product offerings, enhancing its digital capabilities, and deepening customer relationships across its diverse geographic footprint positions the company for continued success. The company's market coverage spans several major metropolitan areas, including Pittsburgh, PA, Baltimore, MD, Cleveland, OH, Washington, D.C., Charlotte, Raleigh, Durham and the Piedmont Triad in North Carolina, and Charleston, SC.
Conclusion
F.N.B. Corporation's impressive track record, diversified revenue streams, and strategic initiatives position the company as a leading regional financial services provider. Under the experienced leadership of Vincent J. Delie, Jr., FNB has navigated numerous challenges, emerging as a resilient and innovative institution that is poised for sustained growth and value creation for its shareholders. With its strong financial performance, robust liquidity position, and clear strategic vision, FNB is well-equipped to capitalize on opportunities in the evolving financial services landscape and continue its trajectory of success in the years to come.