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 because of the acquisition of Metro in Harrisburg, Pa., in February and by its September acquisition of five Bank of America branches in eastern Pennsylvania.

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%.

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