F.N.B. Q3 2026 EPS Rises as Net Interest Income Hits Record

F.N.B. Corporation (NYSE: FNB) reported higher third-quarter 2026 earnings as record net interest income, balance-sheet growth and a wider net interest margin offset lower fee revenue and higher operating costs. The bank maintained full-year objectives calling for mid-single-digit loan and deposit growth, while forecasting net interest income of $1.485 billion to $1.500 billion.

Net income for the quarter ended September 30 was $152.9 million, compared with $149.5 million a year earlier. Diluted earnings per common share increased 4.9% to $0.43 from $0.41. For the first nine months of 2026, diluted EPS rose 12.8% to $1.23.

Total revenue was $469.1 million, up 2.6% year over year and 1.4% from the second quarter. On an annualized linked-quarter basis, revenue grew 5.5%.

Net interest income reaches a record

Net interest income rose 4.8% from a year earlier and 3.0% sequentially to a record $376.5 million. F.N.B. attributed the quarterly increase primarily to growth in earning assets, higher asset yields and an additional calendar day, which more than offset a slight increase in funding costs.

The taxable-equivalent net interest margin, a non-GAAP measure, expanded four basis points from both the prior quarter and the year-earlier period to 3.29%. Average earning-asset yields increased five basis points sequentially to 5.18%, while the cost of interest-bearing deposits was nearly stable at 2.37%, up one basis point.

Period-end loans and leases increased by $768.0 million, or 8.5% on an annualized linked-quarter basis, to $36.5 billion. Consumer loans accounted for $435.3 million of the increase, supported by residential mortgages, indirect auto loans and home-equity lines of credit. Commercial loans and leases grew by $332.7 million, with commercial and industrial lending partly offset by commercial real estate payoffs.

Period-end deposits rose $870.6 million, or 8.9% annualized from the prior quarter. Non-interest-bearing demand deposits remained 26% of total deposits for an eighth consecutive quarter. The loan-to-deposit ratio was 92.4%, compared with 92.5% at June 30 and 90.9% a year earlier.

Fee income declines as expenses increase

Non-interest income fell 5.7% year over year and 4.5% sequentially to $92.6 million. Mortgage banking income declined 39.4% from a year earlier, while capital markets income fell 18.4%. Other non-interest income also decreased, partly reflecting higher equipment-lease residual gains in the preceding quarter and a recovery recorded in the year-earlier period.

Those declines were partly offset by year-over-year growth in service charges, trust services, insurance commissions and securities commissions. F.N.B. said insurance revenue benefited from growth in its property and casualty business. The company also introduced investment banking and public finance capabilities during 2026 and launched Family Wealth Advisory in August.

Reported non-interest expense increased 5.5% year over year and 1.5% sequentially to $256.9 million. Higher occupancy and equipment costs reflected technology-related investments, while outside-services expense included increased third-party legal costs. Fraud losses contributed to the sequential increase in other expense. Salaries and employee benefits declined from the second quarter because of lower variable compensation.

The taxable-equivalent efficiency ratio, a non-GAAP measure, was unchanged sequentially at 53.7%, compared with 52.4% a year earlier. Pre-provision net revenue, also a non-GAAP measure, increased 1.3% from the prior quarter to $212.2 million.

Credit losses ease, though delinquency rises

The provision for credit losses was $19.6 million, down from $21.4 million in the second quarter and $24.0 million a year earlier. Net charge-offs declined to $11.0 million, or 0.12% of average loans and leases on an annualized basis, from 0.19% in the prior quarter and 0.22% a year earlier.

Delinquency increased to 0.75% of period-end loans from 0.71% in the second quarter and 0.65% a year earlier. Nonperforming loans and other real estate owned represented 0.33% of loans and leases plus other real estate, up two basis points sequentially but below the 0.37% recorded a year earlier. The allowance for credit losses remained 1.25% of total loans and leases.

F.N.B. described its asset-quality metrics as satisfactory. Its loan portfolio was split between 59% commercial loans and leases and 41% consumer loans. Non-owner-occupied commercial real estate totaled $8.0 billion, with an average loan size of $1.5 million.

Tangible book value per common share, a non-GAAP measure, increased 7.0% year over year to a record $12.28. The estimated common equity Tier 1 ratio was 11.3%, while tangible common equity to tangible assets was 8.7%. During the quarter, F.N.B. repurchased $51 million of common stock, bringing year-to-date repurchases to $133 million.

2026 objectives

For full-year 2026, management expects period-end loans and deposits to grow at mid-single-digit rates from December 31, 2025. F.N.B. projects non-interest income of $370 million to $380 million, provision expense of $80 million to $90 million and non-interest expense of $1.01 billion to $1.02 billion, with expenses expected toward the upper end of that range. The projected effective tax rate is 21% to 22%.

The outlook assumes a 25-basis-point Federal Reserve rate increase in December 2026, which the company does not expect to have a material quarterly impact because of its timing. The provision forecast incorporates expected loan growth, charge-off activity and macroeconomic and geopolitical uncertainty.

F.N.B. identified additional risks including commercial credit exposure, changes in interest rates and real estate values, deposit and liquidity pressures, cybersecurity and third-party vendor risks, regulatory compliance costs, economic and financial-market instability, and costs or reputational harm associated with existing consent orders.