F.N.B. Corporation (FNB) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. F.N.B. Corporation is a diversified financial services company headquartered in Pittsburgh, Pennsylvania, operating in seven states and the District of Columbia. The company operates through three primary segments: Community Banking, Wealth Management, and Insurance. As of June 30, 2026, the company maintained 355 branches and held 353,000,972 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Income | $149 million | $130 million | $286 million | $247 million |
| Earnings Per Share (Diluted) | $0.42 | $0.36 | $0.80 | $0.68 |
| Total Revenue | $463 million | $439 million | $913 million | $850 million |
| Net Interest Income | $366 million | $348 million | $725 million | $671 million |
| Non-Interest Income | $97 million | $91 million | $188 million | $179 million |
| Provision for Credit Losses | $22 million | $26 million | $40 million | $43 million |
| Net Charge-Offs (Annualized) | 0.19% | 0.25% | 0.19% | 0.20% |
| Total Assets | $51.0 billion | $49.7 billion | $51.0 billion | $49.7 billion |
| Total Loans and Leases | $35.8 billion | $34.7 billion | $35.8 billion | $34.7 billion |
| Total Deposits | $38.7 billion | $37.7 billion | $38.7 billion | $37.7 billion |
| Allowance for Credit Losses (ACL) | $447 million | $432 million | $447 million | $432 million |
| CET1 Capital Ratio | 11.37% | 10.79% | 11.37% | 10.79% |
| Return on Average Tangible Common Equity | 14.07% | 13.57% | 13.64% | 13.11% |
Material Changes vs. Prior Period
- Profitability Growth: Net income increased 13.8% year-over-year in Q2 2026, driven by a 5.3% increase in Net Interest Income (NII) and a 6.5% increase in Non-Interest Income. EPS rose 16.7% to $0.42.
- Net Interest Margin (NIM): The NIM (FTE) expanded 6 basis points to 3.25% in Q2 2026, primarily due to a 27 basis point decrease in the cost of funds, partially offset by a 20 basis point decline in yield on earning assets.
- Asset Growth: Total loans and leases grew 2.9% year-over-year to $35.8 billion, with consumer loans driving the majority of the growth. Total assets increased 1.5% to $51.0 billion.
- Expense Management: Non-interest expense increased 2.9% to $253 million, largely due to higher salaries and employee benefits, net occupancy, and outside services. However, the efficiency ratio (FTE) improved to 53.68% from 54.83%.
- Asset Quality: Net charge-offs decreased to 0.19% annualized from 0.25% in the prior year. Non-performing assets totaled $112 million, representing 0.31% of total loans and leases plus OREO.
Guidance, Outlook, and Risks
- Capital Deployment: The company repurchased $47 million (2.7 million shares) of common stock in Q2 2026. A new share repurchase program was authorized in April 2026, with approximately $253 million of capacity remaining as of June 30, 2026.
- Dividends: The Board declared a quarterly common stock cash dividend of $0.13 per share, an 8% increase from the prior year.
- Interest Rate Risk: The company maintains a slightly asset-sensitive position. Management is actively managing this position to remain near neutral, utilizing strategies such as lengthening the term of time deposits and adjusting the mix of variable-rate loans.
- Legal and Regulatory: The company is in compliance with a settlement regarding fair lending concerns in North Carolina, having fully deployed the required $11.75 million in mortgage subsidies by January 2026. No material adverse effects from legal proceedings are currently anticipated.
- Risk Factors: Key risks include credit risk in the commercial real estate portfolio, volatility in mortgage banking, changes in interest rates, and potential impacts from geopolitical instability and inflation.
Investor Verification Checklist
- Commercial Real Estate Exposure: Verify the concentration of non-owner-occupied commercial real estate loans, specifically the 17.3% office loan component within the $8.2 billion non-owner-occupied portfolio.
- Interest Rate Sensitivity: Review the "Market Risk" section to understand the impact of potential rate hikes or cuts on Net Interest Income and Economic Value of Equity (EVE).
- Non-GAAP Reconciliations: Confirm the adjustments made to calculate Tangible Book Value and Return on Tangible Common Equity, specifically the exclusion of goodwill and intangible assets.
- Loan Modification Performance: Monitor the performance of the $41.5 million in outstanding modified loans, particularly those that have subsequently defaulted.
- Liquidity Position: Assess the Parent Company's Liquidity Coverage Ratio (2.0x) and Months of Cash on Hand (12.5 months) to ensure sufficient capital for operations and dividends.