F.N.B. Q2 Earnings Call Highlights

F.N.B. posted a strong second quarter with EPS up 17% year over year to $0.42 and record revenue of $463 million, while tangible book value per share rose 10% to $12.24. The bank also repurchased $47 million of stock and kept capital metrics solid. Loan growth remained healthy , led by commercial and industrial, consumer, and seasonal mortgage lending, while deposits grew at a 3% annualized pace and non-interest-bearing balances stayed above $10 billion. Credit quality was stable to improving, with delinquencies and nonperforming loans both declining. Management reduced full-year net interest income guidance to $1.485 billion-$1.515 billion because of deposit competition and lower short-term rates, though it kept loan and deposit growth guidance in the mid-single digits. The company also trimmed its full-year provision outlook on stronger-than-expected credit performance.

F.N.B. NYSE: FNB reported stronger second-quarter 2026 earnings, record revenue and continued balance sheet growth, while management lowered its full-year net interest income outlook, citing deposit competition and the impact of changes in short-term rates. Chairman, President and CEO Vince Delie said earnings per share rose 17% from a year earlier to $0.42, with net income of $149 million. Total revenue reached a record $463 million, including net interest income of $366 million and non-interest income of $97 million. Delie said the results helped drive a 9% year-over-year increase in pre-provision net revenue and positive operating leverage.

The company also reported tangible book value per common share of $12.24, up 10% from a year earlier. F.N.B. repurchased $47 million, or 2.7 million shares, during the quarter at a weighted average price of $17.46. Management said capital remained strong, with a tangible common equity ratio near 9% and return on average tangible common equity of 14%.

Period-end loans rose at a 7.5% annualized rate from the prior quarter, with Delie pointing to growth in commercial and industrial lending, consumer lending and seasonal residential mortgage production. He said C&I growth of 8% annualized on a linked-quarter basis was driven by lower risk-rated, high-quality commercial borrowers. Chief Financial Officer Vince Delie said spot total loans and leases ended the quarter at $35.8 billion. Consumer loans increased $547 million, while commercial loans and leases rose $111 million. C&I loans and commercial leases were up more than 8% annualized, primarily due to growth in the Mid-Atlantic and Pittsburgh markets. Commercial real estate balances declined $129 million linked quarter as expected payoffs continued. Management said residential mortgage growth was partly seasonal and tied to the company’s physician lending program. During the question-and-answer session, executives said the second quarter is typically the seasonal peak for that business as physicians leave school and move into hospital roles.

The company reported a second-quarter net interest margin of 3.25%, unchanged from the prior quarter. Net interest income increased more than 7% on a linked-quarter annualized basis. Total earning asset yields fell one basis point to 5.13%, while total cost of funds declined two basis points to 1.99%. F.N.B. lowered its full-year net interest income guidance to a range of $1.485 billion to $1.515 billion. The company sai...