KBRA Affirms Ratings for F.N.B. Corporation

KBRA affirms the senior unsecured debt rating of A-, the subordinated debt rating of BBB+, and the short-term debt rating of K2 for Pittsburgh, PA-based F.N.B. Corporation (NYSE: FNB) (“the company”). KBRA also affirms the deposit and senior unsecured debt ratings of A, the subordinated debt rating of A-, and the short-term deposit and debt ratings of K1 for the lead subsidiary, First National Bank of Pennsylvania. The Outlook for all long-term ratings is Stable.

Key Credit Considerations

The ratings are supported by FNB’s long track record of consistent performance including an ROA that has experienced limited variation (1.0% - 1.1% since 2021) in recent years despite rather volatile industry trends. Moreover, KBRA maintains a favorable view towards FNB’s experienced and stable leadership team and its sound growth strategy and balance sheet risk management. The company’s highly stable operating performance in recent years is, in large part, driven by a rather durable revenue base combined with well-managed operating expenses (~2.0% of average assets) and credit costs (<0.2% of average assets). The company’s revenue base remains skewed towards spread-related income, though FNB’s noninterest income, which has been a consistent 20% of total revenues over a multi-year period, is considered to be relatively more diverse with seven key drivers contributing meaningful fee income and enabling a more stable level of noninterest income throughout various economic cycles.

Despite an earning asset mix that is moderately more concentrated in loans (average loans were 78% of average earning assets in 2Q25), FNB’s NIM (3.13% for 2Q25) has typically tracked below peer averages, largely due to its lower-risk, lower-yielding loan portfolio (5.77% for 2Q25). FNB’s funding profile includes a broad retail branch footprint with 350+ branches spread across seven states and Washington, D.C., complemented by its competitive online and digital banking services, providing the company with a durable, lower-cost deposit base (1.93% total cost of deposits in 2Q25). FNB’s focus on maintaining a well-diversified loan mix was reflected in its more moderate concentration in investor CRE (~200% of risk-based capital) that has led to highly stable credit metrics including an NCO ratio that has tracked below 0.3% since 2012. Finally, while capital ratios have trended higher in recent years, risk-based measures remained below rated peer averages (FNB reported a CET1 ratio of 10.8% at 2Q25). However, KBRA views FNB’s capital position to be suitable for the rating category considering the company’s lower-risk profile and long-term performance.

Rating Sensitivities

We view the prospect of a rating upgrade as primarily reliant on the company gaining significantly greater scale along with increased diversification of revenues with continued outperformance in terms of credit quality. Conversely, the material degradation of the loan book with FNB experiencing comparatively elevated credit losses over multiple quarters, impacting the profitability of the company or a measurable shift in the funding profile of the company could result in negative rating action.

To access ratings and relevant documents, click here.

Methodologies