F.N.B. Corp (NYSE: FNB) reported Q4 EPS of $0.30, $0.01 better than the analyst estimate of $0.29.

"FNB produced outstanding results for both the fourth quarter and full year of 2019 with operating EPS of $0.30 and $1.18, respectively. The Company also generated positive operating leverage while setting new records for total revenue, non-interest income and net income. Our teams had great success driving loan and deposit growth while maintaining our disciplined approach to risk management," commented Chairman, President, and Chief Executive Officer, Vincent J. Delie, Jr. "We ended a successful 2019 in a more favorable capital position, where tangible book value increased 13% and we generated record operating earnings of $386 million while returning nearly $160 million in dividends to our shareholders. 2019 total shareholder return of 35% exceeded the S&P 500 and significantly exceeded peers. Moving forward, we are well-positioned to benefit from our geographic expansion, as well as investments in technology and infrastructure, as these initiatives will help us continue to grow revenue by adding new clients and deepening our customer relationships."

Fourth Quarter 2019 Highlights

(All comparisons refer to the fourth quarter of 2018, except as noted)

• Growth in total average loans was $1.3 billion, or 5.9%, with average commercial loan growth of $1.1 billion, or 7.8%, and average consumer loan growth of $223 million, or 2.7%.
• Total average deposits grew $1.3 billion, or 5.7%, primarily due to an increase in average non-interest-bearing deposits of $308 million, or 5.1%, and an increase in interest-bearing demand deposits of $1.5 billion, or 15.2%, partially offset by a decrease in average time deposits of $468 million, or 8.7%, largely from a $622 million managed decline in brokered CD balances.
• The loan to deposit ratio was 94.0% at December 31, 2019, compared to 94.4% at December 31, 2018.
• Net interest income declined 2.5%, largely attributable to pressure on variable-rate loan yields and competitive pressures on interest-bearing deposit rates.
• On a linked-quarter basis, the net interest margin (FTE) (non-GAAP) narrowed 10 basis points to 3.07%, resulting from lower variable-rate asset yields as benchmark interest rates moved lower during the second half of 2019, partially offset by a 6 basis point improvement in interest-bearing deposit costs in the fourth quarter. Compared to the fourth quarter of 2018, the net interest margin declined 22 basis points from 3.29%, attributable to changes in the interest rate environment compared to 2018.
• Non-interest income increased $5.6 million, or 8.2%. Capital markets income grew $3.4 million, or 65.6%, reflecting strong customer-related interest rate derivative activity. Mortgage banking operations income increased $5.9 million, or 131.0%, due to a $4.9 million increase in gain on loans sold, including a $1.9 million interest rate-related favorable valuation adjustment on mortgage servicing rights. Insurance commissions and fees increased $1.4 million, or 38.9%, while trust income grew by $0.6 million, or 9.9%.
• Effective tax rate was 17.6%, compared to 13.5%, due to benefits from renewable energy tax credits.
• The efficiency ratio (non-GAAP) was 56.0%, compared to 54.1%.
• The annualized net charge-offs to total average loans ratio decreased 15 basis points to 0.09% from 0.24%, indicative of continued favorable credit quality trends.
• The ratio of tangible common equity to tangible assets (non-GAAP) increased 53 basis points to 7.58%. Tangible book value per common share (non-GAAP) increased $0.85, or 12.7%, to $7.53.

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