F.N.B. Corporation Q1 FY2026 earnings call

· F&B had solid quarter with net income, EPS growth, and strong capital ratios. · Focused on disciplined strategic approach since 2009, growing capital, balance sheet, and diversifying revenue streams. · Announced 8% increase in quarterly cash dividend and $250 million additional common stock repurchase. · Partnership with Pennsylvania State University as official retail bank and financial provider. · First ATM offering foreign currency disbursement for Canadian dollars and Mexican pesos opened at Pittsburgh International Airport. · Strong credit results with asset quality metrics remaining solid, net charge-offs strong, and comprehensive risk management. · Focus on technology and product offerings to gain market share and meet customer needs.

F&B had net income of $137 million, EPS increased 19% to $0.38. Pre-provision net revenue increased 17% with positive operating leverage of 4.9%. Capital ratios remained strong. Tangible book value per share was $12.06, an 11% increase. Loan activity ended the quarter with total loans and leases at $35.1 billion, a 3.9% annualized linked quarter increase. Deposits ended at $38.9 billion. Net interest margin was 3.25% in Q1. Non-interest income was $91 million, up 3.7%. Non-interest expense was $257.9 million, a 4.5% increase. The efficiency ratio was 56.1%.

· Maintaining full-year balance sheet guidance with mid-single digit growth in loans and deposits. · Full-year net interest income expected between $1.495 and $1.535 billion. · Second quarter net interest income projected between $370 and $380 million. · Non-interest income full-year guide 370 to 390 million, second quarter 90 to 95 million. · Non-interest expense full-year range 1 billion to 1.02 billion, now expected at higher end. · Full-year provision guidance $85 to $105 million. · Full-year effective tax rate between 21 and 22 percent.

· Continued volatility in markets. · Ongoing conflict and uncertainty in the Middle East, maintaining qualitative overlays. · Potential competitive pressure in loan pricing and deposit funding. · Impact of Basel III proposal if implemented as proposed.

Q: Daniel Tamayo asked about CNI loan growth and pipelines.

A: Gary said CNI loan growth started early, pipelines near record levels with high-quality opportunities and M&A activity.

Q: Casey Hare asked about NIM outlook and capital.

A: Vince Calabrese discussed NIM trends, capital ratios, buyback and dividend.

Q: Russell Gunther asked about deposit pricing pressure.

A: Vince and Vince Calabrese talked about deposit cost trends, opportunities to bring down costs, and treasury management pipelines.

Q: David Smith asked about loan growth and fee guidance.

A: Vince and Gary discussed loan growth bright spots, CRE opportunities, and fee income drivers.

Q: Kelly Motto asked about M&A and loan pricing.

A: Vince talked about M&A opportunism, loan pricing spreads, and competitive landscape.

Q: Manuel Navas asked about new loans yield and deposit pipeline.

A: Vince Calabrese discussed new loans yield and deposit pipeline impact.

Q: Brian Martin asked about CRE and NDFI.

A: Gary and Vince discussed CRE concentration, NDFI exposure and its low level.