Image source: The Motley Fool.
DATE
Tuesday, Oct. 20, 2026
CALL PARTICIPANTS
- Manager of Investor Relations – Lisa Hajdu
- Chairman, President, and CEO – Vince Delie
- Chief Credit Officer – Gary Guerrieri
- Chief Financial Officer – Vince Calabrese
TAKEAWAYS
- Net Income — $152.9 million, compared to $149.5 million in the prior-year quarter.
- Diluted EPS — $0.43, representing a linked-quarter increase of one cent.
- Net Interest Income — $376.5 million, reflecting growth in earning assets and higher asset yields.
- Net Interest Margin (FTE) — 3.29%, representing an increase of four basis points linked-quarter due to stable interest-bearing deposit costs.
- Total Loans and Leases — $36.5 billion, representing 8.5% annualized linked-quarter growth driven by consumer and commercial expansion.
- C&I Loan Growth — 20% annualized linked-quarter growth rate, led by activity in the Cleveland and Pennsylvania markets.
- Total Deposits — $39.6 billion, representing 8.9% annualized linked-quarter growth from seasonal inflows and deepened customer relationships.
- Non-Interest-Bearing Deposits — $10.1 billion, remaining stable at 26% of total deposits for the eighth consecutive quarter.
- Tangible Book Value — $12.28 per share, increasing 7% year over year despite share buybacks and interest rate impacts on AOCI.
- Efficiency Ratio — 53.7%, remaining stable compared to the prior quarter.
- Common Stock Repurchases — $51 million (2.7 million shares) in the quarter, at an average price of $18.69 per share.
- Year-to-Date Repurchases — $133 million (7.4 million shares), representing 2.1% of shares outstanding at the beginning of the year.
- Regulatory Capital — CET1 ratio of 11.3% and TCE ratio of 8.7%, maintaining solid levels while supporting growth and buybacks.
- Net Charge-Offs — 12 basis points, improving from 19 basis points in the prior quarter.
- Delinquency Ratio — 75 basis points, increasing four basis points from the prior quarter.
- Non-Performing Assets — 33 basis points of total loans and OREO, representing a two basis point linked-quarter increase.
- Provision for Credit Losses — $19.6 million, supporting loan growth and favorable credit performance.
- Wealth Management Revenue — $21.2 million, a 3.7% increase year over year driven by trust services and securities commissions.
- Service Charges — $24.5 million, up 5.7% year over year due to treasury management fees and consumer transaction volumes.
- Insurance Revenue — $5.4 million, representing a 20% increase primarily due to property and casualty business growth.
- Full-Year NII Guidance — $1.485 billion to $1.5 billion, revised based on nine-month results and deposit competition expectations.
- Full-Year Non-Interest Income Guidance — $370 million to $380 million, representing a tightened range from previous estimates.
- Full-Year Non-Interest Expense Guidance — $1.01 billion to $1.02 billion, with results expected at the higher end of the range.
- Full-Year Provision Guidance — $80 million to $90 million, reflecting favorable year-to-date credit performance.
Need a quote from a Motley Fool analyst? Email [email protected]
RISKS
- Guerrieri stated, “We continue to maintain qualitative overlays for potential supply chain impacts due to the events in the Middle East, oil and diesel price volatility, and ongoing tariff uncertainty in North America,” regarding the management of the credit portfolio.
- Delie warned that the mortgage business would face a tougher road moving forward due to higher interest rates, identifying potential headwinds for that segment.
- Calabrese reported that “fraud losses were elevated” during the third quarter, which contributed to an 11% increase in other non-interest expenses.
SUMMARY
F.N.B. Corporation (FNB +2.62%) reported third-quarter results that highlighted record net interest income and continued expansion of the loan and deposit portfolios. Management stated that the company achieved annualized linked-quarter loan growth of 8.5% and deposit growth of 8.9%, which outpaced broader industry trends. The company revised its full-year guidance to reflect favorable credit performance while acknowledging persistent competition for deposit funding. Strategic initiatives remain focused on leveraging artificial intelligence and data science to enhance client relationships and drive revenue through new high-value business lines.
- CEO Delie stated, “The AI-enabled customer aggregation and insight tool will provide our clients and bankers with the ability to optimize their broader banking relationship,” describing the upcoming Insight 360 platform.
- The company announced the expansion of its Family Wealth Advisory unit to serve ultra-high net worth clients with specialized advisory services.
- Management reported that 11 established or expanded business lines, including investment banking and public finance, are contributing to diversified fee income.
- Guerrieri noted that criticized loans increased 40 basis points during the quarter, though management expects resolutions and upgrades to offset this increase in the fourth quarter.
- The company maintained a loan-to-deposit ratio of 92.4%, which management characterized as healthy and stable compared to the prior quarter.
- Delie noted that the mortgage business remains focused on the purchase money strategy, particularly through the Physicians First program, to drive new primary customer relationships.
- Management confirmed that Cleveland and Pennsylvania markets were primary drivers of the 20% annualized growth in C&I loans.
INDUSTRY GLOSSARY
- AOCI: Accumulated other comprehensive income or loss, representing gains and losses that have not yet been realized through the income statement.
- CET1: Common Equity Tier 1 capital ratio, a key measure of a bank’s financial strength and ability to absorb losses.
- Common app: A proprietary integrated digital application for various banking products.
- CRE: Commercial real estate, referring to loans secured by income-producing property.
- eStore: A proprietary digital banking platform used for customer product access and financial advisory services.
- Insight 360 platform: An AI-enabled customer data aggregation and analytics tool designed for household penetration.
- MSAs: Metropolitan Statistical Areas, used for identifying market share and geographic performance.
- Physicians First: A specialized mortgage lending program tailored for medical professionals to drive primary account growth.
- PPNR: Pre-provision net revenue, which measures a bank’s operating profitability before credit loss provisions.
- SOFR: Secured Overnight Financing Rate, a benchmark interest rate for dollar-denominated derivatives and loans.
- TCE: Tangible Common Equity, a measure of a company’s physical capital.
