PNC Financial Services Group Inc. this morning reported first-quarter profit more than double analysts’ expectations.
The Pittsburgh-based bank reported earnings of $530 million, or $1.03 per share, on $3.9 billion in revenue. It was the second-highest profit in PNC’s history and exceeded last year’s first quarter by 38 percent.
On average, analysts surveyed by Thomson Reuters First Call predicted PNC would report earnings per share of 42 cents.
It was the bank’s first earnings report since closing its $5.6 billion acquisition of Cleveland-based National City Corp., the troubled institution that had the second-largest market share in the Indianapolis area.
Before the merger, PNC had no local banks, while National City had 172 Indiana branches, including 75 in the Indianapolis area.
In the same period a year earlier, PNC reported profit of $384 million on $1.8 billion in total revenue.
PNC’s earnings per share were calculated after it paid preferred stock dividends, including a $47 million dividend to the U.S. Department of the Treasury for PNC’s participation in the Troubled Asset Relief Program, or TARP. PNC received $7.7 billion in TARP funds.
The company, which said it is in a strong lending position thanks to an 88-percent loan-to-deposit ratio, originated and renewed $26 billion in loans and commitments during the quarter. Meanwhile, PNC’s non-performing assets increased to $3.5 billion, or 2.02 percent of total loans and foreclosed assets, up from $2.2 billion, or 1.23 percent, three months earlier.
PNC said the National City acquisition has already contributed to its earnings.