BAC

F.N.B. Corporation FNB reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.Results primarily benefited from higher net interest income (NII), a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.Net income available to common shareholders was $148.7 million, up from $130.7 million in the prior-year quarter. Our estimate for net income available to common shareholders was $147.9 million. Total revenues were a record $462.7 million, up 5.6% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate of $468 million.NII was $365.7 million, up 5.3% from the prior-year quarter. The rise reflected growth in average earning assets and lower interest-bearing deposit costs, partially offset by lower yields on earning assets. The net interest margin (NIM) (FTE basis) expanded 6 basis points (bps) year over year to 3.25%. Our estimates for NII and NIM were pegged at $370.5 million and 3.27%, respectively.Non-interest income was $97 million, up 6.5% year over year. The rise was primarily driven by higher capital markets income, bank-owned life insurance, dividends on non-marketable equity securities, trust services fees and other income. Our estimate for the metric was $94.9 million.Non-interest expenses were $253.2 million, up 2.9% year over year. The rise was due to an increase in almost all cost components, except for marketing costs, FDIC insurance expenses and other costs. Our estimate for non-interest expenses was $254.7 million.At the end of the second quarter, average total loans and leases were $35.5 billion, up 2.9% from the prior-year quarter, while average total deposits were $38.7 billion, up 4.1%. Our estimates for average total loans and leases and average total deposits were $35.4 billion and $39.3 billion, respectively. FNB’s provision for credit losses was $21.4 million, down 16.6% from the prior-year quarter. Our estimate for provisions was $23 million. Net charge-offs were $17 million, down from $21.8 million a year ago.Also, the ratio of non-performing loans plus other real estate owned (OREO) to total loans and leases plus OREO decreased 3 bps year over year to 0.31%. However, total delinquency increased 9...

Shares of Commerce Bancshares Inc. CBSH gained 1.7% following the release of its second-quarter 2026 results. Second-quarter earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.Results primarily benefited from higher net interest income (NII) and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt the results to some extent.Net income attributable to Commerce Bancshares was $159.8 million, up 4.8% year over year. Our estimate for the metric was $145.2 million. Total revenues were $498.9 million, up 11.9% year over year. The top line outpaced the Zacks Consensus Estimate of $488 million.NII was $315.1 million, rising 12.5% from the year-ago quarter. Net yield on interest-earning assets was 3.77%, increasing 7 basis points (bps) year over year. Our estimates for NII and net yield on interest-earning assets were $302.8 million and 3.62%, respectively.Non-interest income was $183.8 million, up 11% year over year. The rise was mainly driven by higher trust fees, deposit account charges and other fees, consumer brokerage services fees, and bank card transaction fees. Our estimate for non-interest income was $176.5 million.Non-interest expenses increased 21.5% year over year to $297.1 million. The rise was due to an increase in all cost components. We had projected expenses of $287.9 million.Investment securities gains were $12.8 million, significantly up from the prior-year quarter.The efficiency ratio increased to 58.40% from 54.77% in the year-ago quarter. A rise in the efficiency ratio indicates a deterioration in profitability. As of June 30, 2026, net loans were $20.64 billion, up 1.9% from March 31, 2026. Total deposits were $27.88 billion, down 1.8% sequentially. Our estimates for net loans and total deposits were $20.51 billion and $28.74 billion, respectively. Provision for credit losses was $8.7 million, up 56% from the prior-year quarter. Our estimate for the metric was $12.4 million.The allowance for credit losses on loans to total loans was 0.94% on June 30, 2026, unchanged year over year.However, non-accrual loans to total loans were 0.06% at the quarter-end, down from 0.11% in the year-ago quarter. The ratio of annualized net loan charge-offs to average loans was 0.19%, down fro...

The banking giant just showed off its profit engine, but now it has to prove this new power is permanent. Forget the headline beat. Yes, Bank of America (BAC)’s second-quarter numbers were solid, with earnings per share jumping 34% to $1.21 and the bank generating a stellar 17% return on tangible common equity. The market gave a polite nod, sending the stock up a respectable 1.9% on a flat day for the broader market. But the real news wasn’t in the results just posted; it was in the new bar management set for the rest of the year. This quarter was a powerful demonstration of the bank’s earnings machine, forcing a major upgrade to its own profitability targets. For an investor, this reframes the entire story. With its performance proven, the question for Bank of America shifts to whether this new, higher altitude of profitability is the new normal or just a temporary peak. This wasn't a one-off win in a single division. The performance was impressively broad. As management noted, “Every business segment generated operating leverage.” The capital markets businesses were on fire, with investment banking fees soaring 50% year-over-year to more than $2.1 billion. The sales and trading division was not far behind, pulling in $7.2 billion in revenue, a 33% increase from last year. From the main street Consumer Banking division to the towers of Wall Street, the entire franchise was humming. Here’s the number that really matters. At the start of the year, the company was guiding for full-year operating leverage of “more than 200 basis points.” After a blistering first half where that figure “exceeded 450 basis points,” management just lifted its full-year target to a range of “300-400 basis points.” That’s a large upgrade. It signals that the company’s ability to grow revenue faster than costs has become a core feature of the business model, rather than a temporary trend. This is the heart of the bull case: the scale and efficiency you’ve been paying for are finally delivering in a big way. Of course, there’s a catch. Analysts on the earnings call repeatedly poked at one key issue: the second half of the year faces much more difficult comparisons. Management was candid about it. As one executive explained, “most all of the NII build last year was in the second half of the year. We're just up against tougher comps, that's all.” This is the risk you have to weigh. The...

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors. It’s getting better all the time. Wall Street is celebrating a second quarter that delivered stellar earnings for banks, wirehouses and asset managers alike. With major indexes up roughly 10% so far this year, a rising tide is lifting fee revenue even as high-net-worth clients generating more wealth are increasingly looking for sophisticated advice. Things are going so well, in fact, that JPMorgan Chase CEO Jamie Dimon used his firm’s earnings call this week to make a colorful boast about his wealth unit’s leadership. “It’s a great team of people, which I am fully confident if I was hit by a truck, which is not my preference, we would be fine,” he said. Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks. READ ALSO: RIAs Excel in Client Retention but Need a Strategy for Boosting Referral Business and Prenups Are on the Rise: Here’s How to Talk About Them With Clients Dimon’s confidence is backed by hard data, a trend mirrored across the wealth management landscape. At JPMorgan alone, profit in the asset and wealth management unit surged 33% year over year to about $2 billion, pushing client assets up 19% to $7.7 trillion. Similarly, Citigroup’s wealth division marked its ninth consecutive quarter of revenue growth, with profits leaping 51% year over year to top $580 million. Almost two-thirds of the unit’s new asset growth came from deepening relationships with existing clients. That massive asset influx was a recurring theme among the wirehouses (UBS reports later this month): Morgan Stanley’s wealth and investment management businesses crossed a historic milestone, reaching $10 trillion in total client assets after pulling in a record $148 billion in net new assets this quarter, according to the firm’s earnings report on Wednesday. While just over half of those inflows stemmed from client IPOs in the firm’s workplace channel, meaning they weren’t entirely driven by traditional advised clients, the sheer scale remains impressive. Meanwhile, Bank of America’s global wealth unit, which includes both BofA Private Bank and Merrill Lynch, saw profits skyrocket a whopping 42% to $1.4 billion, fueled by $4.4 billion in management fees. Wells Fargo rode the same wave, reporting a 28% jump in wealth division profi...

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: The big banks have kicked off the Q2 earnings season with remarkable momentum. Both earnings and revenue growth rates—along with the percentage of companies beating expectations—are tracking significantly higher than in recent quarters. While we are still in the opening stages of the Q2 reporting cycle, these early results strongly reinforce the robust corporate earnings trend we've been seeing. For the 34 S&P 500 companies that have reported Q2 results already, total earnings are up +55.3% from the same period last year on +18.8% higher revenues, with 91.2% beating EPS estimates and 82.4% beating revenue estimates. The Q2 earnings and revenue growth rates have been boosted by Micron’s (MU) very strong quarterly results, but the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron from these results. Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise). For the Finance sector, we now have Q2 results from 36.6% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +30.2% from the same period last year on +20.4% higher revenues, with all the companies beating EPS estimates and 90.9% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. The big banks and brokers kicked off the Q2 reporting cycle in style, comfortably beating consensus EPS and revenue estimates and providing reassuring reads on underlying trends in their businesses. JPMorgan’s JPM Q2 earnings increased +21.7% from the same period last year on +27.7% higher revenues, while those for Bank of America BAC, Citigroup C, and Wells Fargo WFC increased +27.5%, +45.1%, and +18.4%, respectively. Bank stocks in general and these four stocks in particular have enjoyed a decent but otherwise unspectacular run this year, as some of the earlier geopolitical risk factors have eased lately. Banks are cyclical businesses...

Cintas Corporation (NASDAQ:CTAS) was upgraded to ‘Buy’ from Neutral by Bank of America, which also raised its price objective to $230 from $200 after the company's better-than-expected fourth-quarter fiscal 2026 results and fiscal 2027 guidance came in above Wall Street expectations. The analysts wrote that they are "incrementally more constructive on the setup for earnings over the next several quarters" as Cintas benefits from improving labor market conditions in key industries, continued growth in adjacent product categories, and margin expansion driven by supply chain and distribution initiatives. Bank of America expects Cintas to deliver another year of high-single-digit revenue growth alongside stronger margins. The firm highlighted technology investments, including SmartTruck, automated sorting, garment sharing and robotics, noting these initiatives have contributed more than 400 basis points of margin expansion over the past five years. The analysts also pointed to improving employment trends in Cintas' core customer markets, which they believe should support customer additions and stronger revenue growth. They added that the company's First Aid and Fire Safety businesses continue to benefit from cross-selling opportunities through its recurring route-based model. Bank of America also identified Cintas' proposed acquisition of UniFirst as a potential catalyst. While the transaction remains under a second request from the US Federal Trade Commission, the analysts wrote they remain constructive on the deal's strategic rationale and believe the estimated $375 million in synergies "could be conservative." The firm raised its valuation multiple to 39 times earnings from 37 times, reflecting greater confidence in potential earnings upside. While this represents a premium to business services peers, Bank of America wrote the valuation is supported by Cintas' consistent high-single-digit growth profile, cross-selling momentum and technology-driven productivity improvements. Shares of Cintas traded higher on the upgrade, up 7% at $206.

Chicago, IL – July 16, 2026– Zacks Director of Research Sheraz Mian says, "Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise)." Note: The following is an excerpt from this week'sEarnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: The big banks have kicked off the Q2 earnings season with remarkable momentum. Both earnings and revenue growth rates—along with the percentage of companies beating expectations—are tracking significantly higher than in recent quarters. While we are still in the opening stages of the Q2 reporting cycle, these early results strongly reinforce the robust corporate earnings trend we've been seeing. For the 34 S&P 500 companies that have reported Q2 results already, total earnings are up +55.3% from the same period last year on +18.8% higher revenues, with 91.2% beating EPS estimates and 82.4% beating revenue estimates. The Q2 earnings and revenue growth rates have been boosted by Micron's MU very strong quarterly results, but the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron from these results. Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise). For the Finance sector, we now have Q2 results from 36.6% of the sector's market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +30.2% from the same period last year on +20.4% higher revenues, with all the companies beating EPS estimates and 90.9% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. The big banks and brokers kicked off the Q2 reporting cycle in style, comfortably beating consensus EPS and revenue estimates and providing reassuring reads on underlying trends in their businesses.JPMorgan's JPM Q2 earnings increased +21.7% from the same period last year on +27.7% higher revenues, while those for Bank of America BAC, Citigroup C and Wells Fargo WFC increased +27.5...

Morgan Stanley reported a record $148 billion in net new assets, a 150% increase from the same period a year ago.

State Street’s STT second-quarter 2026 earnings of $3.65 per share surpassed the Zacks Consensus Estimate of $3.30. The bottom line increased 68.2% from the prior-year quarter.Results were aided by year-over-year growth in net interest income (NII) and fee revenues, along with nil provisions. Also, the company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances to record levels. However, higher expenses acted as a spoilsport.Net income available to common shareholders (GAAP basis) was $1.03 billion, surging 62.9% from the year-ago quarter. Total revenues were a record $4.05 billion, which increased 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $3.89 billion.NII was $860 million, up 18% year over year.The net interest margin expanded 17 basis points year over year to 1.13%.Total fee revenues increased 17.2% year over year to $3.19 billion. The rise was driven by an increase in all fee income components, except for software services fees.Non-interest expenses were $2.66 billion, up 5.1% from the prior-year quarter. The rise was due to an increase in all cost components, except for occupancy costs.The company did not record any provision for credit losses in the quarter, as against $30 million in the prior-year quarter.The Common Equity Tier 1 ratio was 10.8% as of June 30, 2026, compared with 10.7% in the corresponding period of 2025. The return on average common equity was 16.7% compared with 10.8% in the year-ago quarter. As of June 30, 2026, the total AUC/A was a record $57.86 trillion, up 18.1% year over year. The rise was driven by higher quarter-end equity market levels, client flows and net new business.AUM was a record $6.28 trillion, up 22.7% year over year, led by higher quarter-end market levels and net inflows. In the reported quarter, State Street repurchased shares worth $400 million. STT’s strategic buyouts, rising AUM balance and solid business servicing wins are expected to keep supporting its financials. However, persistently rising expenses and concentrated fee-based revenues are concerning. State Street Corporation price-consensus-eps-surprise-chart | State Street Corporation Quote State Street currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Bank of New York M...

Netflix Inc (NASDAQ:NFLX, XETRA:NFC) reports second quarter earnings tonight, and two major brokerages are sticking with their bullish calls even as the stock has struggled this year. Shares were little changed Thursday at $73.50, but that stability masks a rough 2026 for Netflix investors: the stock has fallen more than 20% year-to-date. Jefferies reiterated its Buy rating and $110 price target, while Bank of America kept its own Buy rating and $125 price objective. Both firms see the pullback as a buying opportunity rather than a red flag, even as they acknowledge the market's patience is being tested. Bank of America attributed the decline to investor worries about engagement trends, the potential impact of artificial intelligence on content creation, and rising competition following a wave of media mergers and acquisitions. The bank pointed to history as a guide. Subscriber growth slowed sharply in 2022, and the stock fell more than 50% as a result, before Netflix responded with paid sharing and its ad-supported tier, moves that reignited growth. A similar bout of margin concerns hit the stock in late 2023, only for another year of strong execution to follow. Management has "consistently demonstrated an ability to adapt to changing market conditions, execute effectively and create long-term shareholder value," the bank wrote. Jefferies doesn't expect a meaningful upside surprise in second quarter or full-year revenue guidance. It's forecasting constant-currency revenue growth of 12% year-over-year for both the second and third quarters, in line with Wall Street. The firm also doesn't expect Netflix to lift its full-year revenue outlook this quarter, citing soft third-party subscription data. Bank of America is looking for largely in-line financial results, with investors more focused on the company's second-half outlook, engagement trends, and any commentary on acquisition appetite and broader strategic priorities. On margins, Jefferies is a bit more upbeat, suggesting consensus estimates may be underestimating the benefit of Netflix's US price increase from late March while overstating the drag from Brazil-related tax comparisons. The firm thinks the company's full-year operating margin guidance of 31.5% could eventually move higher, though the timing is unclear. Both firms flagged engagement as the metric to watch. Jefferies expects first-half 2026 vie...

Jefferies rates all four money center banks Buy after Q2 beats on EPS, driven by strong NII growth, fee income, and capital markets. Goldman Sachs (GS) hit record H1 2026 markets results, while Bank of America (BAC) raised its FY26 operating leverage guidance to 300-400 bp. This lithium producer surpassed a $1B private valuation, joining some of America's most powerful startups. Now you can invest in EnergyX alongside global giants like General Motors, but only through July 16. (sponsor) As always, the quarterly earnings were kicked off by the major large-cap money center banks, and as expected they all delivered solid earnings reports. The team at Jefferies remains very positive on the four top companies that beat earnings expectations and, most importantly, provided reassuring forward guidance. Net interest income, or NII, across all banks was impressive, and with the debate over where interest rates will be as we move through the rest of 2026 remaining a wild card for all the financial giants, the second half of the year could prove interesting. The Jefferies team had this to say when discussing the results: We’re out with our thoughts following large-cap bank earnings. We highlight that results were largely positive, with all four banks beating Earnings Per Share and Pre-Provision Net Revenue expectations. Loan growth came in modestly above expectations, while deposit trends were generally stable. NII growth remained healthy, supported by strong balance sheet momentum, deposit growth, and fixed-rate asset repricing. Fee income remained constructive, benefiting from strength in payments, treasury services, securities services, wealth management, and transaction banking. Meanwhile, capital markets were a standout performer, driven by robust trading activity, improving investment banking fees, and healthy client engagement. Here are the four dividend-paying financial giants that Jefferies rates as Buy. July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX. Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040. With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a...

Morgan Stanley's (MS) second-quarter revenue surpassed Wall Street's projections, with robust invest