F.N.B. in Pittsburgh reported higher first-quarter profit on higher fee income and enhanced results from two acquisitions.
The $16.2 billion-asset company said net income rose 19% from the same quarter last year, to $38.3 million, or 22 cents per share, a penny higher than the average estimate of analysts surveyed by Bloomberg.
Net interest income rose 13% to $121.9 million, which the company attributed in part to full-quarter results from its 2014 acquisitions, BCSB Bancorp in Baltimore and OBA Financial Services in Germantown, Md. The net interest margin compressed 14 basis points to 3.48%.
F.N.B. saw increases in commercial loans and leases, and in consumer segments such as direct loans, lines of credit, indirect installment and residential loans. F.N.B. also reported a rise in loan prospects in its Pittsburgh, Baltimore and Cleveland markets.
Noninterest income fell 9%, to $38.2 million, because results from a year ago included a $9.5 million gain on the sale of securities. Fee-income businesses otherwise improved from last year, including wealth management, mortgage banking and swap fees.
Noninterest expense rose 0.5% to $94.7 million. The efficiency ratio improved to 56.6%.