Bank earnings grow alongside mortgage balance-sheet repositioning

PNC reports $2.1 billion profit and projects further net interest income growth. Third-quarter diluted earnings per share were $4.97, or $5.09 adjusted, as average loans, deposits and net interest income increased. Lower expenses brought the efficiency ratio to 57%, and PNC returned $1.4 billion through dividends and repurchases. Management expects fourth-quarter net interest margin of at least 3% and forecasts $1 billion–$1.1 billion of net interest income growth in 2027.

U.S. Bancorp raises revenue guidance despite a third-quarter revenue miss. Net income rose 10% to $2.202 billion, and the bank lifted its 2026 revenue-growth range to 8%–9% from 7%–9%, citing lending growth and the BTIG acquisition. Expense control supported an earnings beat despite revenue falling short of expectations. Fourth-quarter guidance calls for $4.57 billion–$4.61 billion in net interest income and 13%–14% year-over-year fee-revenue growth.

Regions reports higher earnings with a 3.68% net interest margin. Third-quarter net income reached $611 million, up 11% year over year, while diluted earnings per share increased 16% to $0.71. Regions reported an estimated common equity tier 1 capital ratio of 10.8% and cited strong credit quality, fee-business growth and controlled expenses.

BNY grows revenue 11.7% and returns $1.4 billion to shareholders. Third-quarter revenue reached $5.68 billion and diluted earnings per share were $2.34, above Wall Street estimates. Assets under custody and administration increased to $63.4 trillion, while assets under management reached $2.2 trillion. Capital distributions comprised dividends and share repurchases.

First Horizon plans a $4.5 billion mortgage sale to redirect lending capacity. The planned consumer-mortgage sale produced a $94 million third-quarter loss and is expected to close in the fourth quarter. First Horizon intends to redeploy balance-sheet capacity into higher-yielding commercial real estate and commercial-and-industrial loans. Management expects that redeployment to add to future earnings; the sale has not yet closed.

Citizens’ second-quarter results show stronger profitability and lower net charge-offs. The July 16 filing reported $587 million in second-quarter net income and diluted earnings per share of $1.30. An October 15 review cited record wealth fees, an improved efficiency ratio and falling net charge-offs. These figures concern the second quarter, not a new third-quarter earnings release.

JPMorgan seeks dismissal of Trump’s account-closure lawsuit. The bank’s lawyers argue that the plaintiffs’ blacklisting allegations lack specifics about what JPMorgan allegedly said, when or to whom. The latest reporting describes a dismissal request, not a ruling, leaving the allegations unresolved.

OCC review challenges banks’ account-closure practices; CFPB plans an investigation. The Office of the Comptroller of the Currency reviewed nine large banks and alleged discrimination in account-closing policies and decisions. Its review found that reputational-risk assessments influenced customer selection, but it could not comprehensively quantify the extent of debanking or customer costs. The CFPB said it would investigate.