FNB earnings increased in the third quarter of 2026 as loan growth and a wider lending margin lifted net interest income to a record. F.N.B. Corporation reported net income available to common shareholders of $152.9 million, or $0.43 per diluted share, on October 19, up from $149.5 million, or $0.41 per share, a year earlier. Revenue of $469.1 million fell short of analyst expectations of $476.2 million.
Key Takeaways
- Net interest income reached a record $376.5 million as the net interest margin widened.
- Quarter-end loans and deposits grew at annualized rates of 8.5% and 8.9%, respectively.
- Lower fee income and higher expenses limited the benefit from stronger lending revenue.
Table of Contents
- FNB earnings benefit from a wider margin
- Deposit growth keeps pace with lending
- Fee income and expenses temper the improvement
- Credit losses ease, but delinquencies edge higher
- Conclusion
FNB earnings benefit from a wider margin
The company’s third-quarter 2026 earnings announcement showed profit improving from $148.7 million, or $0.42 per diluted share, in the preceding quarter. Year-to-date diluted earnings reached $1.23 per share, a 13% increase from the same period in 2025.
Net interest income increased $10.8 million, or 3%, from the second quarter. FNB attributed the gain to growth in earning assets, higher asset yields and one additional day in the quarter, partly offset by a slightly higher cost of funds.
The fully taxable-equivalent net interest margin, a non-GAAP measure, rose four basis points sequentially to 3.29%. Interest-bearing deposit costs were broadly stable, increasing just one basis point to 2.37%. The combination meant asset growth was accompanied by a better margin, rather than simply a larger loan book.
| Item | Details |
|---|---|
| Average loans and leases | $36.1 billion, up 3.7% year over year. |
| Average deposits | $38.8 billion, up 2.4% year over year. |
| Allowance for credit losses | $455.5 million; 1.25% of total loans and leases. |
| Common Equity Tier 1 ratio | Estimated at 11.3%, versus 11.4% at June 30 and 11.1% a year earlier. |
| Tangible book value per common share | $12.28, a non-GAAP measure, up 7% year over year. |
Deposit growth keeps pace with lending
Period-end loans and leases increased $768 million from June, with consumer loans contributing $435.3 million and commercial loans and leases adding $332.7 million. Deposits increased $870.6 million over the same period.
Deposit growth slightly outpaced lending growth, leaving the loan-to-deposit ratio at 92.4% on September 30, compared with 92.5% at June 30. Average commercial and industrial loans grew sequentially, while average commercial real estate loans declined as borrowers paid down balances.
Fee income and expenses temper the improvement
Non-interest income declined 4.5% from the second quarter to $92.6 million. Higher service charges and card transaction fees were outweighed by lower capital markets income and other non-interest income, including reduced residual gains on equipment leases.
Non-interest expense rose 1.5% sequentially to $256.9 million. Lower salaries and employee benefits partly offset higher legal costs, technology-related occupancy and equipment expenses, and other costs largely related to fraud losses.
Together, those movements explain why record net interest income translated into a more modest increase in bottom-line profit.
Credit losses ease, but delinquencies edge higher
Net charge-offs fell to $11 million from $17 million in the second quarter, while the credit-loss provision totaled $19.6 million. However, total delinquency increased four basis points to 0.75%, and the ratio of non-performing loans and other real estate owned rose two basis points to 0.33%. Credit performance therefore improved on realized losses but was mixed across other measures.
FNB also repurchased $51 million of common stock during the quarter, bringing year-to-date repurchases to $133 million.
Conclusion
FNB’s quarter combined stronger lending income with slower fee revenue and higher costs. Subsequent results will provide the next test of whether deposit growth and margin gains can continue while delinquencies remain contained.
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