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FNB reported Q1 EPS of 38 cents, matching estimates and rising 18.8% y/y.
F.N.B. Corp saw higher NII and loan, deposit growth drive a 9.4% revenue increase.
FNB faced higher expenses and provisions, while credit metrics showed mixed trends.
F.N.B. Corporation (FNB - Free Report) reported first-quarter 2026 earnings of 38 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 18.8% year over year.
The quarterly results benefited from higher net interest income (NII) and non-interest income. Higher average loans and deposits were other positives. However, higher non-interest expenses and provisions hurt the results to some extent.
Net income available to common shareholders was $137 million, up from $116.5 million in the prior-year quarter. Our estimate for net income available to common shareholders was $138.5 million.
FNB’s Revenues Improve, Expenses Rise
Total revenues were $450.3 million, up 9.4% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $454.7 million.
NII was $359.3 million, up 10.9% from the prior-year quarter. The rise reflected growth in average earning assets and lower interest-bearing deposit costs, partially offset by lower yields on earning assets.
The net interest margin (NIM) (FTE basis) expanded 22 basis points (bps) year over year to 3.25%. Our estimates for NII and NIM were pegged at $363.8 million and 3.27%, respectively.
Non-interest income was $91 million, up 3.7% year over year. The rise was primarily driven by higher capital markets income, dividends on non-marketable equity securities, insurance commissions and fees, and other income. Our estimate for the metric was $92 million.
Non-interest expenses were $257.9 million, up 4.5% year over year. The rise was due to an increase in almost all cost components, except for marketing costs and FDIC insurance expenses. Our estimate for non-interest expenses was $255.6 million.
At the end of the first quarter, average total loans and leases were $34.9 billion, up 2.5% from the prior-year quarter, while average total deposits were $38.4 billion, up 3.8%. Our estimates for average total loans and leases and average total deposits were $35 billion and $39 billion, respectively.
F.N.B. Corp’s Credit Quality: A Mixed Bag
FNB’s provision for credit losses was $18.5 million, up 5.6% from the prior-year quarter. Our estimate for provisions was $23.3 million. Net charge-offs were $15.9 million, up from $12.5 million a year ago.
However, the ratio of non-performing loans plus other real estate owned (OREO) to total loans and leases plus OREO decreased 14 bps year over year to 0.34%. Total delinquency decreased 1 bp to 0.74%.
FNB’s Capital Ratios Improve
As of March 31, 2026, the common equity Tier 1 (CET1) ratio was 11.4%, up from 10.7% in the prior-year quarter. Tangible common equity to tangible assets ratio (non-GAAP) increased to 8.91% from 8.37%.
FNB’s Share Repurchase Update
In the first quarter of 2026, F.N.B. Corp repurchased $35 million, or 2 million shares, at a weighted average share price of $17.41.
Our View on FNB
FNB’s solid liquidity position bodes well for the future. The company’s top line is expected to benefit from its efforts to increase fee income, its diverse revenue streams, stabilizing funding costs, opportunistic acquisitions and de novo branch expansion in high-growth markets. However, persistently rising expenses and significant commercial loan exposures are headwinds.
F.N.B. Corporation Price, Consensus and EPS Surprise
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
MTB’s results were aided by higher NII and a rise in non-interest income, along with modest loan growth. However, a decline in deposits, higher provision for credit losses and elevated expenses acted as headwinds.
KeyCorp’s (KEY - Free Report) first-quarter 2026 earnings from continuing operations of 44 cents per share outpaced the Zacks Consensus Estimate of 41 cents. The bottom line reflected a 33.3% rise from the prior-year quarter.
KEY’s results primarily benefited from higher NII and non-interest income. Higher average loan balances, along with lower provisions, were other tailwinds. However, higher expenses hurt KEY’s results to some extent.
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FNB Q1 Earnings Meet Estimates, Revenues & Expenses Rise Y/Y
Key Takeaways
F.N.B. Corporation (FNB - Free Report) reported first-quarter 2026 earnings of 38 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 18.8% year over year.
The quarterly results benefited from higher net interest income (NII) and non-interest income. Higher average loans and deposits were other positives. However, higher non-interest expenses and provisions hurt the results to some extent.
Net income available to common shareholders was $137 million, up from $116.5 million in the prior-year quarter. Our estimate for net income available to common shareholders was $138.5 million.
FNB’s Revenues Improve, Expenses Rise
Total revenues were $450.3 million, up 9.4% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $454.7 million.
NII was $359.3 million, up 10.9% from the prior-year quarter. The rise reflected growth in average earning assets and lower interest-bearing deposit costs, partially offset by lower yields on earning assets.
The net interest margin (NIM) (FTE basis) expanded 22 basis points (bps) year over year to 3.25%. Our estimates for NII and NIM were pegged at $363.8 million and 3.27%, respectively.
Non-interest income was $91 million, up 3.7% year over year. The rise was primarily driven by higher capital markets income, dividends on non-marketable equity securities, insurance commissions and fees, and other income. Our estimate for the metric was $92 million.
Non-interest expenses were $257.9 million, up 4.5% year over year. The rise was due to an increase in almost all cost components, except for marketing costs and FDIC insurance expenses. Our estimate for non-interest expenses was $255.6 million.
At the end of the first quarter, average total loans and leases were $34.9 billion, up 2.5% from the prior-year quarter, while average total deposits were $38.4 billion, up 3.8%. Our estimates for average total loans and leases and average total deposits were $35 billion and $39 billion, respectively.
F.N.B. Corp’s Credit Quality: A Mixed Bag
FNB’s provision for credit losses was $18.5 million, up 5.6% from the prior-year quarter. Our estimate for provisions was $23.3 million. Net charge-offs were $15.9 million, up from $12.5 million a year ago.
However, the ratio of non-performing loans plus other real estate owned (OREO) to total loans and leases plus OREO decreased 14 bps year over year to 0.34%. Total delinquency decreased 1 bp to 0.74%.
FNB’s Capital Ratios Improve
As of March 31, 2026, the common equity Tier 1 (CET1) ratio was 11.4%, up from 10.7% in the prior-year quarter. Tangible common equity to tangible assets ratio (non-GAAP) increased to 8.91% from 8.37%.
FNB’s Share Repurchase Update
In the first quarter of 2026, F.N.B. Corp repurchased $35 million, or 2 million shares, at a weighted average share price of $17.41.
Our View on FNB
FNB’s solid liquidity position bodes well for the future. The company’s top line is expected to benefit from its efforts to increase fee income, its diverse revenue streams, stabilizing funding costs, opportunistic acquisitions and de novo branch expansion in high-growth markets. However, persistently rising expenses and significant commercial loan exposures are headwinds.
F.N.B. Corporation Price, Consensus and EPS Surprise
F.N.B. Corporation price-consensus-eps-surprise-chart | F.N.B. Corporation Quote
Currently, FNB carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
MTB’s results were aided by higher NII and a rise in non-interest income, along with modest loan growth. However, a decline in deposits, higher provision for credit losses and elevated expenses acted as headwinds.
KeyCorp’s (KEY - Free Report) first-quarter 2026 earnings from continuing operations of 44 cents per share outpaced the Zacks Consensus Estimate of 41 cents. The bottom line reflected a 33.3% rise from the prior-year quarter.
KEY’s results primarily benefited from higher NII and non-interest income. Higher average loan balances, along with lower provisions, were other tailwinds. However, higher expenses hurt KEY’s results to some extent.