F.N.B. (NYSE:FNB) reported first-quarter 2026 net income of $137 million, highlighting higher earnings, improved operating leverage and continued capital returns as the bank pointed to accelerating loan growth and steady credit performance. Earnings per share rose 19% year-over-year to $0.38, while pre-provision net revenue increased 17% from the prior-year quarter, supported by “positive operating leverage of 4.9%,” Chairman, President and CEO Vince Delie said.
Delie also emphasized capital strength and shareholder returns, noting a return on average tangible common equity of 13.2% and tangible book value per share of $12.06, up 11% from a year earlier. The company announced an 8% increase to its quarterly cash dividend to $0.13 per share beginning with the June payment, and the board approved an additional $250 million share repurchase authorization on top of the remaining $50 million in the prior program.
Capital returns and long-term strategy
Chief Financial Officer Vince Calabrese said the new repurchase authorization leaves the company with $300 million of remaining capacity after $35 million of repurchases in the first quarter. He added that the dividend increase marks the company’s first quarterly dividend increase since 2007 and cited capital levels including a common equity Tier 1 (CET1) ratio of 11.4% and a tangible common equity ratio “of nearly 9%.”
On capital management, Calabrese said the company expects to remain opportunistic with buybacks while supporting balance-sheet growth. In the Q&A, management discussed using 11% as a CET1 “floor,” while also noting internal capital generation should allow ratios to build even with buybacks.
Loan and deposit trends: C&I growth leads, CRE still a headwind
Management pointed to stronger loan activity late in the quarter. Calabrese said total loans and leases ended the quarter at $35.1 billion, a 3.9% annualized linked-quarter increase, including growth of $198 million in consumer loans and $136 million in commercial loans and leases. Spot C&I loan balances were up over 4% annualized linked-quarter, or $314 million, driven by growth in the Carolinas, Cleveland and the Mid-Atlantic.
Commercial real estate (CRE) balances declined $110 million linked-quarter, which Calabrese attributed to expected payoffs. In the Q&A, executives said CRE will likely remain a headwind due to projects moving into the secondary market, though they also described a pickup in “high-quality CRE opportunities” and said they would be selective in new bookings.
Delie emphasized that growth has not been driven by non-bank financial institution (NBFI) lending or private credit exposure, stating the company continues to avoid those categories. In response to questions, Calabrese characterized NBFI exposure as “only 1% of the total loans book,” describing it as largely related to acquired relationships and client accommodations rather than an origination focus.
On funding, Calabrese said spot total deposits ended the quarter at $38.9 billion, up $142 million linked-quarter, and noted typical first-quarter seasonal outflow for corporate deposits. Non-interest-bearing deposits increased $89 million and were 26% of total deposits, while the loan-to-deposit ratio held steady at 90%.
Margin and revenue: NIM pressure early, improvement exiting the quarter
Net interest margin (NIM) was 3.25%, down three basis points sequentially, as Calabrese said the timing of a December 2025 Federal Reserve rate cut affected first-quarter NIM and seasonal deposit outflows led to temporary higher-cost short-term borrowings. He added that interest-bearing deposit costs declined 13 basis points linked-quarter and borrowing costs decreased 12 basis points. The company’s cumulative spot deposit beta since rate cuts began in September 2024 was 27% at quarter-end.
Calabrese said the bank exited March with a margin of 3.30% and expects margin to rise gradually a few basis points per quarter through year-end, based on earning-asset growth and repricing dynamics. He cited reinvestment rates on securities running “75 to 125 basis points above the roll-off rate,” CD repricing benefits, and higher yields on fixed-rate loan repricing.
Non-interest income rose 3.7% year-over-year to $91 million. Calabrese said capital markets income increased 27.8% to $6.8 million, driven by “solid contributions from debt capital markets, swap fees, and international banking,” while wealth management revenue increased 2.8% to $21.8 million.
On expenses, non-interest expense increased 4.5% to $257.9 million. Calabrese said salaries and benefits were up 0.4% as lower performance-based compensation and healthcare costs offset strategic hiring and merit increases. Occupancy and equipment increased 11% due largely to technology investments and higher occupancy costs, including seasonal snow removal. Other non-interest expense rose 30%, which he attributed to higher fraud losses, litigation-related expenses, and the impact of the company’s mortgage down payment assistance program. The efficiency ratio improved to 56.1% from 58.5% a year earlier.
Credit quality: metrics steady, reserves unchanged as a percent of loans
Chief Credit Officer Gary Guerrieri said asset quality remained “at solid levels,” with delinquencies, nonperforming loans (NPLs) and other real estate owned (OREO) each rising three basis points from the prior quarter. He said net charge-offs were 18 basis points, down one basis point sequentially.
Total funded provision expense was $19.4 million, which Guerrieri said supported C&I loan growth and charge-offs. The funded reserve ended at $443 million, up $3.5 million, and remained 1.26% of loans; including acquired unamortized loan discounts, reserves were 1.32%. Guerrieri said NPL coverage was 393% including the discounts.
Guerrieri added that the company has “not experienced any impact related to tariffs” but is maintaining qualitative overlays tied to Middle East uncertainty. He also highlighted consumer credit strength, noting average origination FICO scores of 782 and consumer delinquency and charge-offs at “multiyear lows” of 67 and 5 basis points, respectively.
Guidance: loan and deposit growth maintained; NII range unchanged despite rate-cut assumption change
Calabrese maintained full-year guidance for mid-single-digit growth in period-end loans and deposits, citing acceleration late in the first quarter and near-record pipelines in several portfolios. He kept full-year net interest income guidance at $1.495 billion to $1.535 billion, but said the company now assumes no Fed rate cuts in 2026 compared with a prior expectation for two 25-basis-point cuts. He said the NII range was unchanged due to expected ongoing deposit pricing pressure without Fed cuts and expectations for accelerating industry loan growth.
- Second-quarter net interest income: $370 million to $380 million
- Full-year non-interest income: $370 million to $390 million (second quarter: $90 million to $95 million)
- Full-year non-interest expense: $1.00 billion to $1.02 billion (second quarter: $250 million to $255 million)
- Full-year provision expense: $85 million to $105 million
- Effective tax rate: 21% to 22%
Calabrese said the company expects to be at the higher end of its expense range due to “increased investments in franchise growth and new strategic initiatives.” During the Q&A, Delie and Calabrese described investments tied to the company’s “Clicks-to-Bricks strategy,” planned de novo expansion, continued development of the eStore, and a forthcoming “360 view of the customer” tool with an AI overlay intended to improve customer engagement and cross-sell. Calabrese said some of the higher spend reflected contractor costs and that “some of this is transitory.”
Beyond financial performance, Delie highlighted business development initiatives, including a newly announced partnership with Pennsylvania State University that will provide on-campus banking services and treasury management across campuses beginning in July. He also noted the launch of an ATM at Pittsburgh International Airport capable of dispensing foreign currency, describing it as rare in the industry.
In closing remarks, Delie thanked Lead Independent Director Bill Campbell, who will retire from the board in May, citing his governance leadership and shareholder focus.
About F.N.B. (NYSE:FNB)
F.N.B. Corporation is a bank holding company headquartered in Pittsburgh, Pennsylvania. Through its principal subsidiary, FNB Bank, the company provides a broad range of commercial and consumer financial services. Founded in 1864 as the First National Bank of Pennsylvania, F.N.B. has grown through both organic expansion and strategic acquisitions to become a regional banking franchise.
The company’s main business activities include traditional deposit-taking and lending services, such as checking and savings accounts, mortgages, home equity lines of credit, and consumer and commercial loans.
