Oct 20, 2026 earnings call — Loan growth, margin, and buybacks focus
Reported third quarter net income of $153 million, with record net interest income of $377 million.
Revenue $0.5B (est $0.5B) · EPS $0.43 (est $0.43)
Key quotes
"Total loans ended the quarter at $36.5 billion, an 8.5% annualized linked-quarter increase."
"Net charge-offs reflect strong performance at 12 basis points, an improvement from 19 basis points in the prior quarter."
"The AI-enabled customer aggregation and insight tool will provide our clients and bankers with the ability to optimize their broader banking relationship, all while consolidating their services with F.N.B."
Analyst Q&A 10
tech investments and operating leverage
Q (Kelly Motta · KBW): Analyst asked if technology investments will let the company keep improving operating leverage into next year and support revenue growth.
A: Management said they are very optimistic about continuing positive operating leverage. They described Insight 360, eStore improvements, mobile enhancements in 2027, and many AI initiatives that should drive revenue and efficiency. They plan to prioritize projects and spend gradually to control costs.
"We are very optimistic about positive operating leverage moving forward." — Vince Delie (CEO·CHAIR)
credit performance and seasonality
Q (David Smith · Truist): Analyst asked why net charge-offs were low while NPLs and delinquencies rose slightly, and what that means for fourth quarter provision and seasonality.
A: Management said the quarter was clean with no large recoveries and overall strong loss performance that drove the low charge-offs. They noted delinquencies rose a few basis points due to normal third-quarter seasonality and emphasized stable portfolio performance.
"We do see some seasonality usually in this third quarter with vacations and whatnot." — Gary Guerrieri
C&I loan pipeline and rates
Q (Daniel Tamayo · Raymond James): Analyst asked about near-term C&I loan pipelines, utilization, and whether higher rates will slow CapEx or loan demand.
A: Management said C&I pipelines are large and diverse across many regions, with strong equipment finance and purchase mortgage activity supporting growth. They do not expect the recent small rate moves to materially slow CapEx or loan demand and see good opportunities for 2027.
"I think we have a pretty large C&I pipeline, a short term pipeline anyway, moving into the fourth quarter." — Vince Delie (CEO·CHAIR)
deposit beta and spot costs
Q (Casey Haire · Autonomous): Analyst asked about cumulative deposit beta expectations and a spot deposit cost number for September.
A: Management said the last cycle is a good reference and they were about 40% for total deposits in the last up cycle. They view history as a reference but said they are early in this cycle and continue to manage deposit costs actively.
"If you look at the last year, we were 40% for total deposits through that last up cycle." — Vince Calabrese (CFO)
fee income composition and drivers
Q (Nick · Stephens): Analyst asked which fee categories are driving the fourth-quarter fee outlook and whether any areas are tracking differently.
A: Management said derivative fee activity surged after quarter-end and should benefit next quarter, and they expect continued contributions from investment banking, public finance, treasury management, and merchant fees. They noted some lumpy items in prior quarters and expect PPNR to rebound in Q4 with lower expenses and steadier fee income.
"We had a surge in derivative activity after the quarter." — Vince Delie (CEO·CHAIR)
asset liability and industry focus
Q (Terry McEvoy · Wells Fargo): Analyst asked how Fed rate expectations changed asset/liability positioning and whether manufacturing verticals are driving C&I growth.
A: Management said they keep the balance sheet fairly neutral to slightly asset sensitive and have seen little change from Q2 to Q3. They said manufacturing and equipment finance have driven C&I growth as companies invest in equipment ahead of larger CapEx projects.
"I would say, we continue to manage our asset liability position to fairly neutral more a little bit asset sensitive right now." — Vince Calabrese (CFO)
public finance and investment banking build
Q (Timur Braziler · UBS): Analyst asked whether the large public finance deal was in 3Q or 4Q and what investments are needed to scale investment banking and public finance.
A: Management said the public finance lead-left transaction occurs in the fourth quarter and has not closed yet, and they have won other mandates where they participated in bond offerings. They plan to grow investment banking and public finance by pacing hires and 'legging in'—adding resources as revenue opportunities prove out.
"The public finance transaction where we were lead left occurs in the fourth quarter, so it has not closed yet." — Vince Delie (CEO·CHAIR)
near-term NIM and September NIM
Q (Manuel Navas · Piper Sandler): Analyst asked about near-term NIM dynamics, the September NIM, and how securities reinvestment and deposit seasonality affect margin.
A: Management reported September NIM was essentially the same as the quarter at 328 or 329 and guided to gradual margin expansion into Q4. They cited full-quarter benefit from mid-September repricings, higher SOFR, strong loan spot balances, and reinvestment earning 200-250 basis points above rolloffs.
"September NIM was within a basis point of the quarter." — Vince Calabrese (CFO)
loan mix and credit watch areas
Q (Brian Martin · Brean Capital): Analyst asked if C&I and CRE will lead loan growth and what credit areas management watches with higher rates.
A: Management agreed C&I and CRE are leading growth and said they watch the CRE maturity wall closely because rate changes can affect values and debt service coverage. They also monitor smaller commercial borrowers more frequently and manage risk across portfolios.
"Naturally the CRE maturity wall quarter-by-quarter outlook is one that we watch very closely because interest rate movements can impact values and can impact debt service coverages." — Gary Guerrieri
deposit growth guidance clarification
Q (Kelly Motta · KBW): Analyst asked whether the comment about deposits being on the lower end of mid-single digits referred to full year or Q4.
A: Management clarified the mid-single digit guide describes a range where normal activity gets you to the low end of that range, but stronger success in treasury management and retail initiatives would push results toward the middle. They said the phrasing was confusing and explained the guide applies to the discussed period with upside from initiatives.
"Yeah, no, the mid-single digit guide, what I'm saying is there's a range that would imply." — Vince Calabrese (CFO)