Financial services company F.N.B. reported earnings for the first quarter of 2019, with net income available to common stockholders of $92.1 million, or $0.28 per diluted common share. Comparatively, first quarter of 2018 net income totaled $84.8 million and fourth quarter of 2018 net income totaled $98.1 million.

On an operating basis, first quarter of 2019 earnings per diluted common share (non-GAAP) was $0.29, excluding $1.6 million in branch consolidation costs. Operating earnings per diluted common share (non-GAAP) equaled reported results in the first and fourth quarters of 2018.

“We are very pleased to report another strong quarter. Operating earnings per share grew 12% year-over-year to $0.29, benefiting from continued positive operating leverage. Operating return on tangible common equity was again peer-leading at nearly 18%, and the efficiency ratio improved by more than 200 basis points to 53%,” said F.N.B. Chairman, President and CEO Vincent J. Delie, Jr. “We are off to a great start in 2019 as total loans grew 8% annualized with contributions from across the footprint, including our newer southeastern markets. We established good momentum in the first quarter and we are excited about executing our business plan throughout the rest of the year.”

First quarter 2019 highlights also included:

• Growth in total average loans was $1.2 billion, or 5.8%, with average commercial loan growth of $602 million, or 4.5%, and average consumer loan growth of $622 million, or 8.0%. Compared to the fourth quarter of 2018, total average loans grew $440 million, or 8.1% annualized.
• The net interest margin (FTE) (non-GAAP) declined 13 basis points to 3.26% from 3.39%, primarily due to the sale of Regency Finance Company in the third quarter of 2018.
• The company issued $120 million of 4.950% fixed-to-floating rate subordinated notes due 2029.
• Total revenue increased 0.8% to $296.0 million, reflecting a 2.0% increase in net interest income partially offset by a 3.1% decrease in non-interest income.
• Non-interest income decreased $2.1 million, or 3.1%, including a $1.2 million loss on fixed assets related to branch consolidations. Capital markets income grew 15.8%, reflecting strong interest rate swap and international banking activity, while trust income grew 5.2%. Dividends on non-marketable equity securities increased $1.0 million to $5.0 million.
• The efficiency ratio (non-GAAP) improved to 53.4%, compared to 55.8% in the first quarter of 2018 and 54.1% in the fourth quarter of 2018.
• The annualized net charge-offs to total average loans ratio decreased to 0.14% from 0.20%, reflective of continued strong credit quality results.
• The ratio of the allowance for credit losses to total loans and leases decreased to 0.82%, compared to 0.84%. The provision for credit losses of $13.6 million supported strong loan growth and exceeded net charge-offs of $7.6 million. The low level of net charge-offs reflects previous actions taken to reduce credit risk, including the sale of Regency.
• The ratio of tangible common equity to tangible assets (non-GAAP) increased 37 basis points to 7.15%. Tangible book value per common share (non-GAAP) increased $0.77, or 12.5%, to $6.91.

Net interest income totaled $230.6 million, increasing $4.5 million, or 2.0%. The net interest margin (FTE) (non-GAAP) declined 13 basis points to 3.26%, primarily due to the sale of Regency in the third quarter of 2018.

Average loans totaled $22.4 billion and increased 5.8% due to solid growth in the commercial and consumer portfolios. Excluding Regency balances in the first quarter of 2018, average loans grew 6.6%. Average total commercial loan growth totaled $602 million, or 4.5%, including 13.2% growth in commercial and industrial loans and commercial leases. Commercial loan growth was led by strong activity in the Cleveland and Mid-Atlantic (Greater Baltimore-Washington D.C. markets) regions and continued growth in the equipment finance and asset-based lending businesses.