F.N.B. Corporation

Second quarter net income was $148.7 million, or $0.42 per share, up 17% year over year. Total revenue was a record $463 million, with net interest income of $366 million and non-interest income of $97 million. Net interest income increased 5.3% from the year-ago quarter, total revenues were up 5.6%, and PPNR increased 9% year over year. Non-interest expense was $253 million, up 2.9% year over year, and the efficiency ratio was 53.7%, down more than 100 basis points from a year ago. Net interest margin was 3.25%, unchanged sequentially, and spot total loans and leases ended at $35.8 billion, up 7.5% annualized linked quarter. Non-interest-bearing deposits were above $10 billion for the second consecutive quarter, and the loan-to-deposit ratio was 92.5%. For 2026, management guided third-quarter net interest income to $375 million-$385 million and full-year net interest income to $1.485 billion-$1.515 billion. Full-year non-interest income guidance was maintained at $370 million-$390 million, non-interest expense was tightened to $1.01 billion-$1.02 billion, provision guidance was reduced to $80 million-$95 million, and the tax rate was guided to 21%-22%.

Vince Delie framed the quarter as evidence that F.N.B.'s strategy is working: growing higher-quality loans, keeping a disciplined deposit strategy, and using data and AI to deepen customer relationships. He emphasized record revenue, strong capital generation, and ongoing investment in tools like Insight 360, eStore, Common App, and other analytics-driven capabilities. His tone was confident and upbeat, but he repeatedly stressed discipline on pricing, credit, and expenses rather than chasing volume.

Vince Calabrese said second-quarter EPS of $0.42 reflected 5.6% revenue growth and disciplined expense management, with efficiency at 53.7%. He highlighted loan growth to $35.8 billion, a stable 3.25% NIM, lower deposit costs by 3 basis points linked quarter, and a 92.5% loan-to-deposit ratio. He also noted capital remained strong, with TCE near 9%, CET1 at 11.4%, over $250 million of buyback authorization remaining, and $47 million repurchased in the quarter. For guidance, he raised the full-year NII range to $1.485 billion-$1.515 billion, kept non-interest income at $370 million-$390 million, tightened expenses to $1.01 billion-$1.02 billion, and lowered provision guidance to $80 million-$95 million.

Analysts focused on why net interest income guidance was lowered and what that implies for deposit costs, SOFR sensitivity, and the margin outlook. Management said the revision reflected lower one-month SOFR during the quarter, tight loan spreads on higher-quality originations, deposit competition, and CRE payoff headwinds; they added that June exit NIM was 3.27% and that seasonal municipal and treasury-management inflows should help in the second half. Questions also covered CRE mix, loan pipeline quality, expense seasonality, and capital returns; management said the pipeline is at a record level, C&I is leading growth, CRE payoffs should fade into 2027, and buybacks remain attractive even with CET1 at 11.4%.