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First Commonwealth Announces Third Quarter 2022 Earnings; Declares Quarterly Dividend

First Commonwealth Financial Corporation
First Commonwealth Financial Corporation

INDIANA, Pa., Oct. 25, 2022 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2022.

Financial Summary

(dollars in thousands,

For the Three Months Ended

 

For the Nine Months Ended

except per share data)

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2022

 

2022

 

2021

 

2022

 

2021

Reported Results

 

 

 

 

 

 

 

 

 

Net income

$33,968

 

 

$30,754

 

 

$34,092

 

 

$92,448

 

 

$103,481

 

Diluted earnings per share

$0.36

 

 

$0.33

 

 

$0.36

 

 

$0.98

 

 

$1.08

 

Return on average assets

 

1.41

%

 

 

1.28

%

 

 

1.42

%

 

 

1.29

%

 

 

1.48

%

Return on average equity

 

12.67

%

 

 

11.60

%

 

 

12.14

%

 

 

11.47

%

 

 

12.62

%

 

 

 

 

 

 

 

 

 

 

Operating Results (non-GAAP)(1)

 

 

 

 

 

 

 

 

 

Core net income

$34,353

 

 

$30,643

 

 

$34,131

 

 

$92,811

 

 

$103,764

 

Core diluted earnings per share

$0.37

 

 

$0.33

 

 

$0.36

 

 

$0.99

 

 

$1.08

 

Core pre-tax pre-provision net revenue

$48,860

 

 

$42,352

 

 

$42,913

 

 

$127,749

 

 

$130,903

 

Provision expense

$5,923

 

 

$4,099

 

 

$330

 

 

$11,986

 

 

$1,353

 

Net charge-offs

$2,461

 

 

$1,528

 

 

$2,277

 

 

$5,123

 

 

$9,474

 

Reserve build/(release)(2)

$2,490

 

 

$2,415

 

 

($2,853

)

 

$3,571

 

 

($7,124

)

Core return on average assets (ROAA)

 

1.43

%

 

 

1.28

%

 

 

1.43

%

 

 

1.30

%

 

 

1.48

%

Core pre-tax pre-provision ROAA

 

2.03

%

 

 

1.77

%

 

 

1.79

%

 

 

1.79

%

 

 

1.87

%

Return on average tangible common equity

 

18.28

%

 

 

16.81

%

 

 

17.28

%

 

 

16.51

%

 

 

18.08

%

Core return on average tangible common equity

 

18.48

%

 

 

16.75

%

 

 

17.30

%

 

 

16.58

%

 

 

18.13

%

Core efficiency ratio

 

54.06

%

 

 

55.87

%

 

 

55.27

%

 

 

56.32

%

 

 

53.90

%

Net interest margin (FTE)

 

3.76

%

 

 

3.38

%

 

 

3.23

%

 

 

3.45

%

 

 

3.27

%

(1) Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures can be found at the end of the financial statements which accompany this release.
(2) Reserve build/(release) represents the net change in the Company's allowance for credit losses (ACL) from the prior period.

Third Quarter 2022 Highlights

  • Net income of $34.0 million and diluted earnings per share totaled $0.36, an increase of $3.2 million, or $0.03 per share from the previous quarter and unchanged from the third quarter of 2021

  • Core pre-tax pre-provision net revenue (PPNR)(1) totaled $48.9 million, an increase of $6.5 million from the prior quarter and an increase of $5.9 million from the third quarter of 2021

  • Operating leverage was positive during the third quarter of 2022

    • Core revenue(1) grew $10.2 million, or 10.3%, from the prior quarter

    • Core noninterest expense(1) increased $3.7 million, or 6.8%, from the prior quarter

  • Total loans (excluding Paycheck Protection Program (PPP) loans) increased $238.1 million, or 13.3% annualized from the previous quarter, driven by strong commercial real estate, equipment finance and consumer loan categories

    • Year-to-date loan growth (excluding PPP loans) was $571.3 million, or 11.3% annualized

    • Average loans (excluding PPP loans) increased $238.7 million, or 13.5% annualized, from the previous quarter

    • Total PPP loans decreased $8.0 million from the previous quarter, resulting in a total PPP loan balance at September 30, 2022 of $4.9 million

  • Record net interest income (FTE) of $82.6 million increased $8.7 million from the previous quarter due in part to a 38 basis point increase in the net interest margin, driven by a 35 basis point increase in the yield on loans (excluding PPP), which significantly offset a one basis point increase in the bank’s cost of funds

  • Noninterest income of $25.9 million (excluding net security gains) (non-GAAP) increased $1.4 million from the previous quarter and decreased $1.3 million from the third quarter of 2021

  • Noninterest expense (excluding merger and acquisition, branch consolidation and COVID-19 related expenses) (non-GAAP) of $59.4 million increased $3.6 million from the previous quarter and increased $4.4 million from the third quarter of 2021

  • Average deposits decreased $98.7 million, or 4.8% annualized compared to the prior quarter, partially offset by a $34.8 million, or 5.1% annualized increase in noninterest-bearing deposits

    • End of period deposits grew $24.1 million, or 1.2% annualized, from the previous quarter

  • Total shareholders’ equity decreased $26.6 million from the previous quarter due to a $45.3 million decrease in accumulated other comprehensive income (AOCI) resulting from the impact of higher interest rates on the fair value of the company’s available for sale investment portfolio and interest rate swap agreements, partially offset by a $22.8 million increase in retained earnings

  • On August 30, 2022, the Company announced the signing of a definitive agreement to acquire Harrisburg, PA based Centric Financial Corporation (Centric)

  • First Commonwealth Bank (the Bank) has been recognized for the fourth consecutive year by Forbes as one of the World’s Best Banks for 2022

  • The Bank was recently named the #1 Small Business Association (SBA) lender in the SBA’s designated Pittsburgh District for the second year in a row and ranked #2 overall across the state of Pennsylvania

Profitability

  • Core return on average assets (ROAA) improved 15 basis points to 1.43% compared to the previous quarter and was unchanged from the third quarter of 2021

  • Core pre-tax pre-provision ROA(1) for the quarter ended September 30, 2022 was 2.03% as compared to 1.77% in the prior quarter and 1.79% in the third quarter of 2021

  • The net interest margin of 3.76% increased 38 basis points compared to the prior quarter and increased 53 basis points as compared to third quarter of 2021

  • The core efficiency ratio(1) of 54.06% decreased 181 basis points from the previous quarter and 121 basis points from the third quarter of 2021

Strong regulatory capital position

  • Bank-level Tier 1 Capital ratio of 11.4%, which represents $266.1 million in excess capital above the regulatory “well capitalized” requirement of 8.0%

  • A total of 324,551 shares at a weighted average price of $13.63 were purchased during the third quarter of 2022 under the company’s previously authorized share repurchase program.   The remaining repurchase capacity under the current program was $5.9 million as of September 30, 2022

Asset quality

  • The provision for credit losses was $5.9 million, an increase of $1.8 million compared to the previous quarter and an increase of $5.6 million from the third quarter of 2021

  • The allowance for credit losses as a percentage of end-of-period loans (excluding PPP loans) was 1.31% compared to 1.32% in the previous quarter

  • Total criticized loans decreased $7.5 million from the previous quarter

    • Total nonperforming assets increased $0.2 million from the previous quarter

  • Net charge-offs on loans totaled $2.5 million, an increase of $0.9 million from the previous quarter

    • Net charge-offs as a percentage of average loans outstanding (excluding PPP loans, annualized) was 0.13% in the third quarter of 2022 as compared to 0.09% in the previous quarter

“Our results this quarter were highlighted by the significant expansion of our net interest margin which was enabled by our asset-sensitive balance sheet and valuable core deposit franchise.   The quarter also displayed strong, well-balanced loan growth across both commercial and consumer categories,” stated T. Michael Price, President and Chief Executive Officer.   “We also announced our plans to extend our footprint into Central and Southeastern Pennsylvania with the acquisition of Centric Financial Corporation.   Centric is a well-led organization that aligns nicely with our culture and values, and I am excited about the future of our combined companies.”   Price continued, “While the margin expansion is certainly a welcome tailwind, we are still mindful of the uncertain economic conditions that may be ahead of us and I believe we remain well positioned to turn challenges into opportunities and create long-term value for all of our stakeholders.”

Earnings

Net income for the third quarter of 2022 was $34.0 million, or $0.36 per share, compared to $30.8 million, or $0.33 per share in the second quarter of 2022 and $34.1 million, or $0.36 per share for the third quarter of 2021.

Net Interest Income and Net Interest Margin

Net interest income (FTE) of $82.6 million increased $8.7 million from the previous quarter and increased $11.7 million from the prior year quarter.   The increase from the previous quarter was primarily due to a $7.2 million increase in income on variable and adjustable rate loans driven by higher interest rates.

The net interest margin for the third quarter of 2022 was 3.76%, an increase of 38 basis points from the previous quarter and an increase of 53 basis points from the third quarter of 2022.   The increase from the previous quarter was due primarily to the aforementioned income on variable and adjustable rate loans and a $238.7 million increase in average loans (excluding PPP) partially offsetting a $287.8 million decrease in lower-yielding investment securities.   The net interest margin was further aided by the Bank’s overall cost of funds, which were 0.16% during the third quarter of 2022 as compared to 0.15% in the previous quarter.

Total average deposits decreased $98.7 million in the third quarter of 2022 as compared to the previous quarter, partially offset by a $34.8 million increase in noninterest-bearing deposits.

Total end-of-period deposits grew $24.1 million from the previous quarter.

Asset Quality

Provision expense in the third quarter of 2022 totaled $5.9 million as compared to $4.1 million in the previous quarter.   The increase in provision expense during the quarter was primarily driven by strong loan growth, which resulted in a $5.3 million increase in the allowance for credit losses (ACL).   The ACL was also impacted by an increase of $3.6 million in the quantitative model due to various inputs such as the expected unemployment rate, the Gross Domestic Product (GDP) forecast, prepayment speeds and max capacity levels. This increase was largely offset by a decrease in qualitative factors of $6.6 million, primarily due to lower reserve adjustments for COVID-related high risk portfolios.

At September 30, 2022, nonperforming loans totaled $35.7 million, which was unchanged from the previous quarter and a decrease of $2.4 million from the third quarter of 2021.   Nonperforming loans represented 0.49% of total loans (excluding PPP loans) as compared to 0.50% and 0.58% for the periods ended June 30, 2022 and September 30, 2021, respectively.

At September 30, 2022, criticized loans totaled $139.3 million, a decrease of $7.5 million from the previous quarter.

During the third quarter of 2022, net charge-offs were $2.5 million as compared to $1.5 million in the previous quarter and $2.3 million in the third quarter of 2021.   Net charge-offs as a percentage of average loans (excluding PPP, annualized) were 0.13%, 0.09% and 0.14% for the periods ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

Noninterest Income and Noninterest Expense

Noninterest income (excluding net security gains) (non-GAAP) totaled $25.9 million for the third quarter of 2022, as compared to $24.5 million for the second quarter of 2022 and $27.2 million for the third quarter of 2021.

The $1.4 million increase from the previous quarter was primarily due to a $1.2 million increase in swap fee income.   This increase was partially offset by a $0.4 million decrease in insurance and retail brokerage revenue.

Noninterest expense (excluding merger and acquisition, branch consolidation and COVID-19 related expenses) (non-GAAP) totaled $59.4 million for the third quarter of 2022, as compared to $55.8 million for the second quarter of 2022 and $55.0 million for the third quarter of 2021.   The $3.6 million increase from the previous quarter was primarily the result of a $1.5 million increase in salaries and employee benefits driven, by a $0.5 million increase in wages, a $0.4 million increase in hospitalization expense, a $0.4 million increase in incentives and a $0.3 million reduction in deferred loan origination expenses. The increase during the quarter was also impacted by a $0.7 million increase in Pennsylvania shares tax due to a beneficial tax credit in the prior quarter.

The core efficiency ratio was 54.06% during the third quarter of 2022 as compared to 55.87% in the previous quarter and 55.27% in the third quarter of 2021.

Full time equivalent staff was 1,422 at September 30, 2022, 1,409 at June 30, 2022, and 1,409 at September 30, 2021.   The increase from the previous quarter was partially the result of filling open positions within the company.

Dividends and Capital

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.12 per share, which represents a 4.3% increase from the third quarter of 2021.   The cash dividend is payable on November 18, 2022 to shareholders of record as of November 4, 2022.   This dividend represents a 3.4% projected annual yield utilizing the October 24, 2022 closing market price of $13.94.

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at September 30, 2022 were 14.5%, 12.1%, 10.1% and 11.2%, respectively.   First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter of 2022 on Wednesday, October 26, 2022 at 2:00 PM (ET).   The call can be accessed by dialing (toll free) 1-888-330-3181 conference ID # 4651379 or through the company’s web page, http://www.fcbanking.com/InvestorRelations.   A replay of the call will be available approximately one hour following the conclusion of the conference by dialing 1-800-770-2030 and entering the conference ID # 4651379.   A link to the webcast replay will also be accessible on the company’s webpage for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services company with 119 community banking offices in 26 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.

Forward-Looking Statements

Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, including uncertainties regarding the impact of the COVID-19 pandemic, and could be affected by many factors, including, but not limited to: (1) the effects of   the COVID-19 pandemic on First Commonwealth and its customers; (2) volatility and disruption in national and international financial markets; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (4) inflation, interest rate, commodity price, securities market and monetary fluctuations; (5) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (6) the soundness of other financial institutions; (7) political instability; (8) impairment of First Commonwealth’s goodwill or other intangible assets; (9) acts of God or of war or terrorism; (10) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (11) changes in consumer spending, borrowings and savings habits; (12) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealth’s ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (17) the ability to increase market share and control expenses; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (20) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (21) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.   Further, statements about the potential effects of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, clients, third parties and us.

In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Relations:
Jonathan E. Longwill
Vice President / Communications and Media Relations
Phone: 724-463-6806
E-mail: JLongwill@fcbanking.com

Investor Relations:
Ryan M. Thomas
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com

 

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)

 

For the Three Months Ended

 

For the Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2022

 

2022

 

2021

 

2022

 

2021

SUMMARY RESULTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

Net interest income

$

82,360

 

 

$

73,662

 

 

$

70,645

 

 

$

224,194

 

 

$

208,287

 

Provision for credit losses

 

5,923

 

 

 

4,099

 

 

 

330

 

 

 

11,986

 

 

 

1,353

 

Noninterest income

 

25,914

 

 

 

24,509

 

 

 

27,245

 

 

 

74,399

 

 

 

80,686

 

Noninterest expense

 

59,901

 

 

 

55,679

 

 

 

55,027

 

 

 

171,304

 

 

 

158,429

 

Net income

 

33,968

 

 

 

30,754

 

 

 

34,092

 

 

 

92,448

 

 

 

103,481

 

Core net income(5)

 

34,353

 

 

 

30,643

 

 

 

34,131

 

 

 

92,811

 

 

 

103,764

 

Earnings per common share (diluted)

$

0.36

 

 

$

0.33

 

 

$

0.36

 

 

$

0.98

 

 

$

1.08

 

Core earnings per common share (diluted)(6)

$

0.37

 

 

$

0.33

 

 

$

0.36

 

 

$

0.99

 

 

$

1.08

 

KEY FINANCIAL RATIOS

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.41

%

 

 

1.28

%

 

 

1.42

%

 

 

1.29

%

 

 

1.48

%

Core return on average assets(7)

 

1.43

%

 

 

1.28

%

 

 

1.43

%

 

 

1.30

%

 

 

1.48

%

Return on average assets, pre-provision, pre-tax

 

2.01

%

 

 

1.78

%

 

 

1.79

%

 

 

1.78

%

 

 

1.86

%

Core return on average assets, pre-provision, pre-tax

 

2.03

%

 

 

1.77

%

 

 

1.79

%

 

 

1.79

%

 

 

1.87

%

Return on average shareholders' equity

 

12.67

%

 

 

11.60

%

 

 

12.14

%

 

 

11.47

%

 

 

12.62

%

Return on average tangible common equity(8)

 

18.28

%

 

 

16.81

%

 

 

17.28

%

 

 

16.51

%

 

 

18.08

%

Core return on average tangible common equity(9)

 

18.48

%

 

 

16.75

%

 

 

17.30

%

 

 

16.58

%

 

 

18.13

%

Core efficiency ratio(2)(10)

 

54.06

%

 

 

55.87

%

 

 

55.27

%

 

 

56.32

%

 

 

53.90

%

Net interest margin (FTE)(1)

 

3.76

%

 

 

3.38

%

 

 

3.23

%

 

 

3.45

%

 

 

3.27

%

 

 

 

 

 

 

 

 

 

 

Book value per common share

$

10.95

 

 

$

11.20

 

 

$

11.69

 

 

 

 

 

Tangible book value per common share(11)

 

7.60

 

 

 

7.85

 

 

 

8.38

 

 

 

 

 

Market value per common share

 

12.84

 

 

 

13.42

 

 

 

13.63

 

 

 

 

 

Cash dividends declared per common share

 

0.120

 

 

 

0.120

 

 

 

0.115

 

 

 

0.355

 

 

 

0.340

 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

Nonperforming loans as a percent of end-of-period loans and leases(3)

 

0.48

%

 

 

0.50

%

 

 

0.56

%

 

 

 

 

Nonperforming loans as a percent of end-of-period loans and leases, excluding PPP loans(3)

 

0.49

%

 

 

0.50

%

 

 

0.58

%

 

 

 

 

Nonperforming assets as a percent of total assets(3)

 

0.38

%

 

 

0.38

%

 

 

0.41

%

 

 

 

 

Nonperforming assets as a percent of total assets, excluding PPP loans(3)

 

0.38

%

 

 

0.38

%

 

 

0.42

%

 

 

 

 

Net charge-offs as a percent of average loans and leases (annualized)(4)

 

0.13

%

 

 

0.09

%

 

 

0.13

%

 

 

 

 

Net charge-offs as a percent of average loans and leases,, excluding PPP loans (annualized)(4)

 

0.13

%

 

 

0.09

%

 

 

0.14

%

 

 

 

 

Allowance for credit losses as a percent of nonperforming loans(4)

 

269.23

%

 

 

262.25

%

 

 

247.30

%

 

 

 

 

Allowance for credit losses as a percent of end-of-period loans and leases(4)

 

1.31

%

 

 

1.31

%

 

 

1.40

%

 

 

 

 

Allowance for credit losses as a percent of end-of-period loans and leases, excluding PPP loans(4)

 

1.31

%

 

 

1.32

%

 

 

1.43

%

 

 

 

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

Shareholders' equity as a percent of total assets

 

10.7

%

 

 

11.0

%

 

 

11.7

%

 

 

 

 

Tangible common equity as a percent of tangible assets(12)

 

7.7

%

 

 

8.0

%

 

 

8.7

%

 

 

 

 

Tangible common equity as a percent of tangible assets, excluding PPP loans(12)

 

7.7

%

 

 

8.0

%

 

 

8.9

%

 

 

 

 

Leverage Ratio

 

10.1

%

 

 

9.8

%

 

 

9.6

%

 

 

 

 

Risk Based Capital - Tier I

 

12.1

%

 

 

12.2

%

 

 

12.4

%

 

 

 

 

Risk Based Capital - Total

 

14.5

%

 

 

14.6

%

 

 

15.0

%

 

 

 

 

Common Equity - Tier I

 

11.2

%

 

 

11.2

%

 

 

11.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)

 

For the Three Months Ended

 

For the Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2022

 

2022

 

2021

 

2022

 

2021

INCOME STATEMENT

 

 

 

 

 

 

Interest income

$

85,700

 

 

$

76,728

 

 

$

74,196

 

 

$

233,672

 

 

$

220,308

 

Interest expense

 

3,340

 

 

 

3,066

 

 

 

3,551

 

 

 

9,478

 

 

 

12,021

 

Net Interest Income

 

82,360

 

 

 

73,662

 

 

 

70,645

 

 

 

224,194

 

 

 

208,287

 

Provision for credit losses

 

5,923

 

 

 

4,099

 

 

 

330

 

 

 

11,986

 

 

 

1,353

 

Net Interest Income after Provision for Credit Losses

 

76,437

 

 

 

69,563

 

 

 

70,315

 

 

 

212,208

 

 

 

206,934

 

Net securities gains

 

 

 

 

 

 

 

 

 

 

2

 

 

 

16

 

Trust income

 

2,777

 

 

 

2,573

 

 

 

3,118

 

 

 

8,063

 

 

 

8,340

 

Service charges on deposit accounts

 

5,194

 

 

 

4,886

 

 

 

4,770

 

 

 

14,695

 

 

 

13,127

 

Insurance and retail brokerage commissions

 

2,048

 

 

 

2,486

 

 

 

2,218

 

 

 

6,806

 

 

 

6,368

 

Income from bank owned life insurance

 

1,419

 

 

 

1,383

 

 

 

1,486

 

 

 

4,310

 

 

 

4,946

 

Gain on sale of mortgage loans

 

1,485

 

 

 

1,561

 

 

 

3,485

 

 

 

4,328

 

 

 

11,615

 

Gain on sale of other loans and assets

 

1,093

 

 

 

1,099

 

 

 

2,480

 

 

 

4,511

 

 

 

6,281

 

Card-related interchange income

 

6,980

 

 

 

7,137

 

 

 

7,052

 

 

 

20,607

 

 

 

20,885

 

Derivative mark-to-market

 

6

 

 

 

42

 

 

 

218

 

 

 

395

 

 

 

1,371

 

Swap fee income

 

2,326

 

 

 

1,154

 

 

 

317

 

 

 

3,933

 

 

 

1,715

 

Other income

 

2,586

 

 

 

2,188

 

 

 

2,101

 

 

 

6,749

 

 

 

6,022

 

Total Noninterest Income

 

25,914

 

 

 

24,509

 

 

 

27,245

 

 

 

74,399

 

 

 

80,686

 

Salaries and employee benefits

 

32,486

 

 

 

30,949

 

 

 

31,066

 

 

 

94,367

 

 

 

88,084

 

Net occupancy

 

4,629

 

 

 

4,170

 

 

 

3,960

 

 

 

13,586

 

 

 

12,614

 

Furniture and equipment

 

4,005

 

 

 

3,857

 

 

 

4,052

 

 

 

11,592

 

 

 

11,866

 

Data processing

 

3,721

 

 

 

3,470

 

 

 

3,196

 

 

 

10,379

 

 

 

9,440

 

Pennsylvania shares tax

 

1,569

 

 

 

913

 

 

 

1,257

 

 

 

3,487

 

 

 

3,347

 

Advertising and promotion

 

1,278

 

 

 

1,434

 

 

 

1,150

 

 

 

3,938

 

 

 

3,829

 

Intangible amortization

 

746

 

 

 

862

 

 

 

868

 

 

 

2,470

 

 

 

2,597

 

Other professional fees and services

 

1,204

 

 

 

1,197

 

 

 

1,308

 

 

 

3,622

 

 

 

3,150

 

FDIC insurance

 

796

 

 

 

702

 

 

 

830

 

 

 

2,196

 

 

 

1,964

 

Litigation and operational losses

 

758

 

 

 

629

 

 

 

589

 

 

 

1,987

 

 

 

1,624

 

Loss on sale or write-down of assets

 

54

 

 

 

86

 

 

 

171

 

 

 

215

 

 

 

223

 

Merger and acquisition

 

448

 

 

 

 

 

 

 

 

 

448

 

 

 

 

COVID-19 related

 

39

 

 

 

62

 

 

 

50

 

 

 

118

 

 

 

357

 

Branch consolidation

 

 

 

 

(202

)

 

 

 

 

 

(104

)

 

 

18

 

Other operating expenses

 

8,168

 

 

 

7,550

 

 

 

6,530

 

 

 

23,003

 

 

 

19,316

 

Total Noninterest Expense

 

59,901

 

 

 

55,679

 

 

 

55,027

 

 

 

171,304

 

 

 

158,429

 

Income before Income Taxes

 

42,450

 

 

 

38,393

 

 

 

42,533

 

 

 

115,303

 

 

 

129,191

 

Income tax provision

 

8,482

 

 

 

7,639

 

 

 

8,441

 

 

 

22,855

 

 

 

25,710

 

Net Income

$

33,968

 

 

$

30,754

 

 

$

34,092

 

 

$

92,448

 

 

$

103,481

 

 

 

 

 

 

 

 

Shares Outstanding at End of Period

 

93,377,064

 

 

 

93,705,120

 

 

 

95,209,685

 

 

 

93,377,064

 

 

 

95,209,685

 

Average Shares Outstanding Assuming Dilution

 

93,450,259

 

 

 

94,245,770

 

 

 

95,892,304

 

 

 

93,994,158

 

 

 

96,130,602

 

 

 

 

 

 

 

 


 

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

 

 

 

 

 

 

 

September 30,

 

June 30,

 

September 30,

 

2022

 

2022

 

2021

BALANCE SHEET (Period End)

 

 

 

 

 

Assets

 

 

 

 

 

Cash and due from banks

$

106,153

 

 

$

120,267

 

 

$

94,579

 

Interest-bearing bank deposits

 

74,619

 

 

 

179,533

 

 

 

240,095

 

Securities available for sale, at fair value

 

802,871

 

 

 

877,287

 

 

 

1,137,675

 

Securities held to maturity, at amortized cost

 

474,790

 

 

 

492,229

 

 

 

548,057

 

Loans held for sale

 

13,811

 

 

 

12,876

 

 

 

19,925

 

 

 

 

 

 

 

Loans and leases

 

7,348,917

 

 

 

7,119,754

 

 

 

6,732,580

 

Allowance for credit losses

 

(96,093

)

 

 

(93,603

)

 

 

(94,185

)

Net loans and leases

 

7,252,824

 

 

 

7,026,151

 

 

 

6,638,395

 

 

 

 

 

 

 

Goodwill and other intangibles

 

312,950

 

 

 

313,449

 

 

 

315,092

 

Other assets

 

540,612

 

 

 

504,635

 

 

 

484,036

 

Total Assets

$

9,578,630

 

 

$

9,526,427

 

 

$

9,477,854

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Noninterest-bearing demand deposits

$

2,782,654

 

 

$

2,726,242

 

 

$

2,656,229

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

354,310

 

 

 

273,360

 

 

 

265,782

 

Savings deposits

 

4,608,762

 

 

 

4,708,868

 

 

 

4,609,393

 

Time deposits

 

331,923

 

 

 

345,075

 

 

 

405,081

 

Total interest-bearing deposits

 

5,294,995

 

 

 

5,327,303

 

 

 

5,280,256

 

 

 

 

 

 

 

Total deposits

 

8,077,649

 

 

 

8,053,545

 

 

 

7,936,485

 

 

 

 

 

 

 

Short-term borrowings

 

97,932

 

 

 

88,923

 

 

 

117,754

 

Long-term borrowings

 

181,489

 

 

 

181,752

 

 

 

182,519

 

Total borrowings

 

279,421

 

 

 

270,675

 

 

 

300,273

 

 

 

 

 

 

 

Other liabilities

 

198,985

 

 

 

153,049

 

 

 

128,241

 

Shareholders' equity

 

1,022,575

 

 

 

1,049,158

 

 

 

1,112,855

 

Total Liabilities and Shareholders' Equity

$

9,578,630

 

 

$

9,526,427

 

 

$

9,477,854

 

 

 

 

 

 

 

 

 

 

 

 

 


 

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

dollars in thousands)

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

September 30,

Yield/

June 30,

Yield/

September 30,

Yield/

 

September 30,

Yield/

September 30,

Yield/

 

2022

Rate

2022

Rate

2021

Rate

 

2022

Rate

2021

Rate

NET INTEREST MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Loans and leases, excluding PPP loans (FTE)(1)(3)

$

7,254,594

 

4.30

%

$

7,015,886

 

3.95

%

$

6,538,477

 

3.75

%

 

$

7,039,163

 

4.00

%

$

6,391,688

 

3.82

%

PPP Loans

 

7,196

 

14.61

%

 

20,290

 

12.02

%

 

225,262

 

10.05

%

 

 

26,050

 

13.50

%

 

380,551

 

6.72

%

Securities and interest-bearing bank deposits (FTE)(1)

 

1,446,315

 

1.92

%

 

1,734,126

 

1.68

%

 

1,937,385

 

1.43

%

 

 

1,661,862

 

1.70

%

 

1,786,050

 

1.46

%

Total Interest-Earning Assets (FTE)(1)

 

8,708,105

 

3.92

%

 

8,770,302

 

3.52

%

 

8,701,124

 

3.39

%

 

 

8,727,075

 

3.59

%

 

8,558,289

 

3.45

%

Noninterest-earning assets

 

825,989

 

 

 

830,167

 

 

 

801,377

 

 

 

 

826,007

 

 

 

804,619

 

 

Total Assets

$

9,534,094

 

 

$

9,600,469

 

 

$

9,502,501

 

 

 

$

9,553,082

 

 

$

9,362,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand and savings deposits

$

4,952,279

 

0.07

%

$

5,067,692

 

0.05

%

$

4,899,328

 

0.07

%

 

$

5,000,018

 

0.05

%

$

4,788,309

 

0.08

%

Time deposits

 

336,346

 

0.24

%

 

354,403

 

0.26

%

 

417,274

 

0.36

%

 

 

354,938

 

0.26

%

 

467,653

 

0.54

%

Short-term borrowings

 

102,073

 

0.19

%

 

95,561

 

0.08

%

 

118,112

 

0.06

%

 

 

104,343

 

0.11

%

 

117,478

 

0.09

%

Long-term borrowings

 

181,596

 

4.94

%

 

181,859

 

4.96

%

 

182,623

 

4.92

%

 

 

181,856

 

4.96

%

 

207,225

 

4.64

%

Total Interest-Bearing Liabilities

 

5,572,294

 

0.24

%

 

5,699,515

 

0.22

%

 

5,617,337

 

0.25

%

 

 

5,641,155

 

0.22

%

 

5,580,665

 

0.29

%

Noninterest-bearing deposits

 

2,746,258

 

 

 

2,711,458

 

 

 

2,647,089

 

 

 

 

2,701,458

 

 

 

2,556,078

 

 

Other liabilities

 

152,208

 

 

 

125,646

 

 

 

124,286

 

 

 

 

132,431

 

 

 

129,883

 

 

Shareholders' equity

 

1,063,334

 

 

 

1,063,850

 

 

 

1,113,789

 

 

 

 

1,078,038

 

 

 

1,096,282

 

 

Total Noninterest-Bearing Funding Sources

 

3,961,800

 

 

 

3,900,954

 

 

 

3,885,164

 

 

 

 

3,911,927

 

 

 

3,782,243

 

 

Total Liabilities and Shareholders' Equity

$

9,534,094

 

 

$

9,600,469

 

 

$

9,502,501

 

 

 

$

9,553,082

 

 

$

9,362,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin (FTE) (annualized)(1)

 

3.76

%

 

3.38

%

 

3.23

%

 

 

3.45

%

 

3.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

 

September 30,

 

June 30,

 

September 30,

 

2022

 

2022

 

2021

Loan and Lease Portfolio Detail

 

 

 

Commercial Loan and Lease Portfolio:

 

 

 

Commercial, financial, agricultural and other

$

1,120,499

 

 

$

1,136,593

 

 

$

1,072,489

 

Paycheck Protection Program

 

4,930

 

 

 

12,928

 

 

 

152,102

 

Commercial real estate

 

2,393,276

 

 

 

2,319,094

 

 

 

2,231,890

 

Equipment Finance loans and leases

 

43,777

 

 

 

21,062

 

 

 

 

Real estate construction

 

326,539

 

 

 

292,400

 

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