PNC Financial Services Group reported an 18.5% rise in first-quarter profit on Friday, as the Federal Reserve's rate hikes fueled a surge in the U.S. regional lender's net interest income.

Shares of PNC were up nearly 3% in premarket trading after upbeat results. They fell about 20% last quarter, which was marred by two of the biggest bank failures in U.S. history, after liquidity concerns at Silicon Valley Bank sparked a bank run.

"During a quarter characterized by heightened market volatility, we grew deposits, increased our capital position and drove strong financial results," PNC CEO William Demchak said in a company statement.

PNC, among the top 10 largest U.S. banks by assets, reported a profit of $3.98 per share in the quarter that exceeded analysts' average estimate of $3.67.

Deposits for the first quarter ended March rose marginally to $436.8 billion from $436.3 billion in the previous quarter as customers steered towards larger and relatively safer regional banks in the aftermath of the banking crisis.

Investors are closely watching the performance of mid-sized lenders after the biggest meltdown in the industry since the 2008 global financial crisis.

NII, a key metric that measures the difference between earnings on loans and deposit payouts, jumped about 28% to $3.6 billion from a year earlier.

Net income rose to $1.69 billion from $1.43 billion a year earlier.

PNC said it continues to evaluate and may adjust share repurchase activity, as actual amounts and timing are dependent on market and economic conditions as well as other factors.