FNB Posts Q1 Income of $91.2M

PITTSBURGH – F.N.B. Corp., the parent company of First National Bank, announced first-quarter net income of $91.2 million, or 28 cents per diluted common share.

That figure is up from both the fourth quarter’s $70.2 million, or 22 cents per share, and the year-ago quarter’s mark of $45.4 million, or 14 cents per share.

“We are very pleased with the first quarter’s results as our team’s performance was highly impressive with earnings per share increasing to $0.28, up significantly compared to the first quarter of 2020. Return on tangible common equity was again peer leading at 15% and total revenue increased on both a linked-quarter and year-over-year basis, led by record levels of non-interest income totaling $83 million,” said President and CEO Vincent J. Delie, Jr. in a statement “We originated $1 billion in PPP loans this quarter and non-interest-bearing deposits reached $10 billion as customer activity is increasing across the footprint with the U.S. economy moving toward reopening. Since the beginning of 2020, we’ve successfully leveraged our investments in technology as we had more than 35,000 loan applications and nearly 30,000 deposit applications processed through our digital channels.”

Among the highlights FNB noted in its quarterly earnings report are:

  • Growth in total loans was $1.9 billion, or 8.3%, reflecting commercial loan growth of $2.7 billion. That growth was offset by a $700 million decrease in consumer loans caused by the sale of indirect auto loans in November.
  • Total average deposits rose $4.7 billion, or 19.3%, reflecting inflows from the Paycheck Protection Program and government stimulus payments, as well as organic growth.
  • The loan-to-deposit ratio was 84.1% at March 31, 2021, compared to 96.5%, as deposit growth outpaced loan growth

Net interest income was $222.9 million, down 4.2% from the first quarter of 2020. FNB attributed the drop to the impact of repricing earning asset yields from lower interest rates. The drop was offset by “significant growth” in average loans and deposits.

Total noninterest income was $14.3 million, a 20.8% increase from a year ago behind a record performance for the company’s wealth and insurance businesses. 

Nonperforming assets were $166 million, up 7.8% from a year ago.

Total assets for F.N.B. Corp. were $38.475 billion, up 9.8% from the first quarter a year ago.

Key performance ratios for the quarters ended March 31, Dec. 31 and March 31, 2020 include:

  • Net interest margin: 2.75%, 2.87%, 3.14%.
  • Return on average assets: 1%, 0.77%, 0.55%.
  • Efficiency ratio: 58.67%, 56.652%, 59.03%.
  • Return on average equity: 7.62%, 5.81%, 3.91%.

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