F.N.B.'s acquisition of Metro Bancorp bulked up the Pittsburgh company's loan book, but M&A costs ate into its first-quarter profit.
The $20.3 billion-asset company's net income fell 35% from the fourth quarter to $24 million.
F.N.B.'s results on a yearly basis were skewed
-
Some are looking at buying banks or counting on recently announced acquisitions to diversify revenue streams. Others are investing in fee-based businesses and new technologies and all, of course, are trying to keep a lid on expenses.
April 21 -
For years, banks in the Midwest looked beyond the region to increase revenue and profit. Today, the area is starting to bounce back, allowing many of those banks to thrive by focusing on their core markets.
April 20 -
The Pennsylvania company said in a recent filing that its board also looked at succession planning, service provider relationships, board expansion and financial forecasts before seeking bids and agreeing to sell to F.N.B. Corp.
October 8
Net interest income after the loan-loss provision rose 12% to $131 million. The net interest margin widened 2 basis points to 3.4%. Loans rose 16% to $14.2 billion. Commercial real estate, F.N.B.'s largest loan category, rose 28% to $5.2 billion. Business loans rose 17% to $3 billion. Residential mortgages rose 10% to $1.5 billion.
Noninterest income rose 7% to $46 million. Deposit service charges rose 14% to $21 million. Fees and commissions from the company's First National Insurance Agency subsidiary rose 26% to $5 million. The results also included $2.4 million gain on the redemption of trust-preferred securities.
Noninterest expense rose 35% to $137 million, with all categories increasing in costs. Merger and severance costs were $24.9 million, up from $1.4 million in the fourth quarter. The efficiency ratio worsened 6 basis points to 56.38%.