3Q26
Filed Oct 20, 2026F.N.B. Corporation reported third-quarter 2026 net income of $152.9 million, or $0.43 per diluted common share, as record net interest income and net interest margin expansion offset lower non-interest income and higher expenses.
Net income increased from both the prior-year and prior-quarter periods, supported by record net interest income, a 3.29% net interest margin (FTE), loan and deposit growth, lower provision expense and ongoing share repurchases. Offsetting items included declining non-interest income, higher non-interest expense, rising delinquency and a lower CET1 ratio versus the prior quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, 3Q26GAAP | $152.9M | 2.8% | 2.2% |
| Net income available to common shareholders, 3Q26GAAP | $152.9M | 2.8% | 2.2% |
| Earnings per diluted common share, 3Q26GAAP | $0.43 per diluted common share | 2.4% | 4.9% |
| Earnings per basic common share, 3Q26GAAP | $ 0.43 | 2.4% | 4.9% |
| Operating net income available to common shareholders, 3Q26non-GAAP | $152.9M | 2.8% | 3.5% |
| Operating earnings per diluted common share, 3Q26non-GAAP | $0.43 | 2.4% | 4.9% |
| Net interest income, 3Q26GAAP | $376.5M | 3.0% | 4.8% |
| Net interest margin (FTE), 3Q26non-GAAP | 3.29% | increased 4 basis points | increased 4 basis points |
| Yield on earning assets (FTE), 3Q26non-GAAP | 5.18% | increased 5 basis points | decreased 18 basis points |
| Cost of funds, 3Q26other | 2.01% | increased 2 basis points | decreased 22 basis points |
| Cost of interest-bearing deposits, 3Q26other | 2.37% | increased 1 basis point | decreased 29 basis points |
| Provision for credit losses, 3Q26GAAP | $19.6M | (8.1)% | (18.1)% |
| Total non-interest income, 3Q26GAAP | $92.6M | (4.5)% | (5.7)% |
| Service charges, 3Q26GAAP | $ 24,515 | 3.2% | 5.7% |
| Interchange and card transaction fees, 3Q26GAAP | $ 13,494 | 1.4% | 0.5% |
| Trust services, 3Q26GAAP | $ 12,151 | (3.4)% | 4.3% |
| Insurance commissions and fees, 3Q26GAAP | $ 5,388 | (0.4)% | 19.9% |
| Securities commissions and fees, 3Q26GAAP | $ 9,129 | (3.9)% | 2.9% |
| Capital markets income, 3Q26GAAP | $6.4M | (19.9)% | (18.4)% |
| Mortgage banking operations income, 3Q26GAAP | $5.6M | 4.7% | (39.4)% |
| Dividends on non-marketable equity securities, 3Q26GAAP | $ 7,489 | 11.2% | 22.6% |
| Bank owned life insurance, 3Q26GAAP | $ 4,668 | (12.4)% | 10.9% |
| Other non-interest income, 3Q26GAAP | $ 3,715 | (46.8)% | (59.5)% |
| Total non-interest expense, 3Q26GAAP | $256.9M | 1.5% | 5.5% |
| Operating non-interest expense, 3Q26non-GAAP | $256.9M | – | increased $11.1 million, or 4.5% |
| Efficiency ratio (FTE), 3Q26non-GAAP | 53.71% | stable to the prior quarter | – |
| Pre-provision net revenue, 3Q26non-GAAP | $212.2M | 1.3% | (0.8)% |
| Operating pre-provision net revenue, 3Q26non-GAAP | $212.2M | 1.3% | 0.3% |
| Effective tax rate, 3Q26GAAP | 20.6% | – | – |
| Average loans and leases, 3Q26other | $36.1B | increase of $613.4 million, or 6.9% annualized | increase of $1.3 billion, or 3.7% |
| Total loans and leases, period endother | $36.54B | 2.1% | 4.5% |
| Average deposits, 3Q26other | $38.8B | increase of $146.1 million | increase of $914.1 million, or 2.4% |
| Total deposits, period endother | $39.55B | 2.3% | 2.9% |
| Loan-to-deposit ratioother | 92.4% | – | – |
| Net charge-offs, 3Q26other | $11.0 million, or 0.12% annualized of total average loans | – | – |
| Allowance for credit losses on loans and leasesother | $455.5M | 1.8% | 4.2% |
| Allowance for credit losses on loans and leases to total loans and leasesother | 1.25% | remained stable | remained stable |
| Non-performing loans plus OREO to total loans and leases plus OREOother | 0.33% | increased 2 basis points | decreased 4 basis points |
| Past due and non-accrual loans to total loans and leasesother | 0.75% | increased 4 basis points | increased 10 basis points |
| Common Equity Tier 1 regulatory capital ratioother | 11.3% (estimated) | – | – |
| Tangible common equity to tangible assetsnon-GAAP | 8.69% | – | – |
| Tangible book value per common sharenon-GAAP | $12.28 | increased $0.04, or 0.3% | increased $0.80, or 7.0% |
| Book value per common shareGAAP | $19.42 | – | – |
| Cash and cash equivalents, period endGAAP | $2.53B | 6.4% | 4.7% |
| Total assets, period endGAAP | $52.05B | 2.1% | 4.3% |
| Short-term borrowings, period endGAAP | $3.00B | 11.9% | 57.5% |
| Long-term borrowings, period endGAAP | $1.80B | (9.9)% | (14.1)% |
Capital returns
- During the third quarter of 2026, the Company repurchased $51 million, or 2.7 million shares, of common stock at a weighted average share price of $18.69.
- Year-to-date, the Company repurchased $133 million, or 7.4 million shares, of common stock at a weighted average share price of $17.90, representing 2.1% of shares outstanding at the beginning of the year.
- Cash Dividends per Common Share were $ 0.13 in 3Q26, compared to $ 0.13 in 2Q26 and $ 0.12 in 3Q25.
What drove it
- Record net interest income reflected growth in earning assets, higher yields on earning assets and one more day in the current quarter, which more than offset a slight increase in cost of funds.
- Average loans and leases increased $1.3 billion, or 3.7%, from the prior-year quarter, led by $1.2 billion of consumer-loan growth and $115.4 million of commercial loans and leases growth.
- Average deposits increased $914.1 million, or 2.4%, from the prior-year quarter, with growth in interest-bearing demand, money market, non-interest-bearing demand and savings deposits more than offsetting lower time deposits.
- Commercial and industrial loan growth benefited from strong equipment finance production and growth in the Charlotte, Pittsburgh and other Pennsylvania markets.
- Residential mortgage growth was largely attributed to the strategy of serving the purchase market, while indirect auto loans and consumer lines of credit reflected organic growth.
- Service charges increased from treasury management fee revenue and higher consumer transaction volumes. Wealth management revenue grew as trust services income and securities commissions and fees increased.
- Non-interest expense rose due to technology-related investments, higher occupancy costs, third-party legal and consulting costs, and higher fraud-loss-related costs.
Concerns
- Total non-interest income decreased $5.6 million, or 5.7%, from the prior-year quarter and decreased $4.4 million, or 4.5%, from the prior quarter.
- Mortgage banking operations income decreased $3.6 million, or 39.4%, from the prior-year quarter, driven by tighter gain-on-sale margins and net fair value adjustments amid interest-rate volatility.
- Capital markets income decreased $1.5 million, or 18.4%, from the prior-year quarter and $1.6 million, or 19.9%, from the prior quarter.
- Non-interest expense increased $13.4 million, or 5.5%, from the prior-year quarter, and the efficiency ratio was 53.71%, compared with 52.38%.
- The past due and non-accrual loans ratio was 0.75%, compared with 0.71% in 2Q26 and 0.65% in 3Q25.
- CET1 was 11.3% (estimated), compared with 11.4% at June 30, 2026, while tangible common equity to tangible assets was 8.69%, compared with 8.93%.
- AOCI reduced tangible book value per common share by $0.53 as of September 30, 2026, primarily due to higher interest rates affecting the fair value of available-for-sale securities.
What to watch
- Whether net interest margin (FTE) can extend beyond 3.29% following the 25 basis point September 2026 FOMC target federal funds rate increase.
- Sustainability of loan and deposit growth, including period-end total loan and lease growth of $768.0 million, or 8.5% annualized, and period-end deposit growth of $870.6 million, or 8.9% annualized.
- The pace of consumer lending expansion relative to commercial real estate runoff and payoff activity.
- Trends in delinquency, non-performing loans, net charge-offs and provision expense following the linked-quarter increase in the delinquency ratio to 0.75%.
- The contribution of technology investments and fee businesses relative to higher occupancy, equipment, legal, consulting and fraud-related costs.
- The effect of additional AOCI pressure on tangible book value and tangible common equity from changes in interest rates.
Balance sheet and cash flow
- Cash and Cash Equivalents were $2,526 million at 3Q26.
- Total Assets were $52,053 million at 3Q26.
- Total Deposits were $39,550 million at 3Q26.
- Short-term borrowings were $3,001 million and long-term borrowings were $1,803 million at 3Q26.
- Accumulated other comprehensive loss was $(187) million at 3Q26, compared to $(103) million at 2Q26 and $(77) million at 3Q25.
- AOCI reduced tangible book value per common share by $0.53 as of September 30, 2026, compared to a reduction of $0.29 as of June 30, 2026 and $0.22 as of September 30, 2025.
Analysis
F.N.B. delivered a higher third-quarter profit on both reported and operating measures. Net income was $152.9 million, compared with $149.5 million in the prior-year quarter and $148.7 million in the prior quarter. Diluted earnings per common share were $0.43, compared with $0.41 and $0.42, respectively. Operating net income available to common shareholders was $152.9 million, while the prior-year operating result was $147.7 million after excluding the FDIC special assessment reduction.
The principal earnings driver was net interest income of $376.5 million, a record for the company, up $17.3 million, or 4.8%, from the prior-year quarter and $10.8 million, or 3.0%, sequentially. Net interest margin (FTE) was 3.29%, up 4 basis points on both comparisons. Average loans and leases totaled $36.1 billion, with consumer loan growth of $1.2 billion from the prior-year quarter, while average deposits totaled $38.8 billion and increased $914.1 million. The sequential increase in average loans and leases was $613.4 million, or 6.9% annualized, while period-end loans and leases increased $768.0 million, or 8.5% annualized.
Fee income and costs tempered the margin-driven result. Total non-interest income was $92.6 million, down $5.6 million, or 5.7%, year over year, as mortgage banking operations income, capital markets income and other non-interest income declined. Service charges and wealth management revenue increased. Total non-interest expense was $256.9 million, up $13.4 million, or 5.5%, from the prior-year quarter, driven by technology-related investments, occupancy costs, outside services and other costs. The efficiency ratio (FTE) was 53.71%, compared with 52.38% in the prior-year quarter.
Credit costs improved in the period, although delinquency increased. Provision for credit losses was $19.6 million, compared with $24.0 million in the prior-year quarter and $21.4 million in the prior quarter. Net charge-offs were $11.0 million, or 0.12% annualized of total average loans, versus $19.7 million, or 0.22% annualized, a year earlier. The non-performing loans plus OREO ratio was 0.33%, down from 0.37% in the prior-year quarter but up from 0.31% in the prior quarter. The past due and non-accrual loans ratio increased to 0.75% from 0.71% sequentially and 0.65% year over year.
Capital remained above the prior-year level but declined modestly from the preceding quarter on selected measures. CET1 was 11.3% (estimated), compared with 11.1% a year earlier and 11.4% in the prior quarter. Tangible book value per common share increased to $12.28 from $11.48 a year earlier and $12.24 sequentially, despite a $0.53 AOCI reduction. FNB repurchased $51 million, or 2.7 million shares, during the quarter and $133 million year to date. The release provided no forward financial guidance.
Management, verbatim
F.N.B. Corporation delivered another strong quarter with $0.43 earnings per diluted common share, bringing year-to-date earnings to $1.23 per diluted common share, a 13% increase over the same period in 2025.
Vince Delie, Chairman, President and Chief Executive Officer
FNB continues to leverage technology investments to gain market share throughout our diverse geographic footprint with 8.5% annualized loan growth and 8.9% annualized deposit growth, both of which align with our long-term organic growth trajectory.
Vince Delie, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, expense, tax-rate, margin or earnings guidance was not provided.
- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- A cash flow statement was not included.
- Reportable business segment revenue was not provided.
- Gross margin was not reported.
- CFO commentary was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.