F.N.B. Corporation (NYSE:FNB) Q1 2018 Earnings Conference Call - Final Transcript

Apr 24, 2018 • 10:30 am ET

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F.N.B. Corporation (NYSE:FNB) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, everyone, and welcome to the F.N.B. Corporation First Quarter 2018 Quarterly Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today's event is being recorded.

At this time, I'd like to turn the conference call over to Mr. Matt Lazzaro, Investor Relations. Sir, please go ahead.

Executive
Matthew Lazzaro

Thank you. Good morning, everyone, and welcome to our earnings call. This conference call of F.N.B. Corporation and the reports we filed with the Securities and Exchange Commission often contain forward-looking statements and non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to and not as an alternative for our reported results prepared in accordance with GAAP.

Reconciliations of GAAP to non-GAAP operating measures to the most directly comparable GAAP financial measures are included in our presentation materials and in our earnings release. Please refer to these non-GAAP and forward-looking statement disclosures contained in our earnings release, related presentation materials and in our reports and registration statements filed with the Securities and Exchange Commission and available on our corporate website.

A replay of this call will be available until May 1st, and the webcast link will be posted to the About Us, Investor Relations & Shareholder Services section of our corporate website.

I'll now turn the call over to Vince Delie, Chairman, President and CEO.

Executive
Vincent J. Delie, Jr.

Good morning and welcome to today's earnings call. Joining me are Vince Calabrese, our Chief Financial Officer; and Gary Guerrieri, our Chief Credit Officer. Gary will discuss asset quality and Vince will review the financial results.

Today, I'll highlight some of our first quarter trends and provide an update on the progress of several strategic initiatives. First quarter earnings per share was $0.26, reflecting a year-over-year increase of 13% in operating earnings per share and a 56% increase in operating earnings.

We delivered linked-quarter average total loan growth of 7% annualized and non-interest income growth of 4%, providing a good start to 2018. The growth in non-interest income was led by positive results in our fee-based businesses, notably capital markets, wealth management, insurance and mortgage banking.

Additionally, the first quarter efficiency ratio of 55.8% improved to 137 basis points from the year-ago quarter, and we're encouraged by our early progress on a number of fronts. Vince will cover the financials in more detail in a minute, but first, I want to provide an update on how we are making strides towards achieving our full-year expectations.

As discussed on our last call, we're squarely focused on executing our 2018 goals and objectives, particularly driving growth in loans, deposits and non-interest income, while managing expenses. It was a good start to the year, as we are beginning to see more borrower activity in the commercial space with loan growth of 7% annualized linked-quarter.

Specifically, for C&I loans, we had strong annualized growth of 10% compared to the fourth quarter. The overall commercial loan growth was led by our