First Commonwealth Financial Corporation (NYSE: FCF) today
announced financial results for the second quarter of 2023.
Financial Summary
(dollars in thousands, |
For the Three Months Ended |
|
For the Six Months Ended |
except per share data) |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reported
Results |
|
|
|
|
|
|
|
|
|
Net income |
$ |
42,781 |
|
|
$ |
30,224 |
|
|
$ |
30,754 |
|
|
$ |
73,005 |
|
|
$ |
58,480 |
|
Diluted earnings per
share |
$ |
0.42 |
|
|
$ |
0.30 |
|
|
$ |
0.33 |
|
|
$ |
0.72 |
|
|
$ |
0.62 |
|
Return on average assets |
|
1.54 |
% |
|
|
1.17 |
% |
|
|
1.28 |
% |
|
|
1.36 |
% |
|
|
1.23 |
% |
Return on average equity |
|
13.90 |
% |
|
|
10.56 |
% |
|
|
11.60 |
% |
|
|
12.29 |
% |
|
|
10.86 |
% |
|
|
|
|
|
|
|
|
|
|
Operating Results
(non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
Core net income |
$ |
42,734 |
|
|
$ |
45,387 |
|
|
$ |
30,643 |
|
|
$ |
88,121 |
|
|
$ |
58,458 |
|
Core diluted earnings
per share |
$ |
0.42 |
|
|
$ |
0.45 |
|
|
$ |
0.33 |
|
|
$ |
0.87 |
|
|
$ |
0.62 |
|
Core pre-tax pre-provision net
revenue |
$ |
56,344 |
|
|
$ |
54,481 |
|
|
$ |
42,352 |
|
|
$ |
110,825 |
|
|
$ |
78,889 |
|
Provision for credit
losses |
$ |
2,790 |
|
|
$ |
(2,650 |
) |
|
$ |
4,099 |
|
|
$ |
140 |
|
|
$ |
6,063 |
|
Provision for credit losses -
acquisition day 1 non-PCD |
$ |
— |
|
|
$ |
10,653 |
|
|
$ |
— |
|
|
$ |
10,653 |
|
|
$ |
— |
|
Net charge-offs |
$ |
8,665 |
|
|
$ |
1,173 |
|
|
$ |
1,528 |
|
|
$ |
9,838 |
|
|
$ |
2,662 |
|
Reserve
build/(release)(2) |
$ |
(339 |
) |
|
$ |
30,979 |
|
|
$ |
2,415 |
|
|
$ |
30,640 |
|
|
$ |
1,081 |
|
Core return on average assets
(ROAA) |
|
1.54 |
% |
|
|
1.75 |
% |
|
|
1.28 |
% |
|
|
1.64 |
% |
|
|
1.23 |
% |
Core pre-tax pre-provision
ROAA |
|
2.03 |
% |
|
|
2.11 |
% |
|
|
1.77 |
% |
|
|
2.06 |
% |
|
|
1.66 |
% |
Return on average tangible
common equity |
|
20.68 |
% |
|
|
15.75 |
% |
|
|
16.81 |
% |
|
|
18.30 |
% |
|
|
15.64 |
% |
Core return on average
tangible common equity |
|
20.66 |
% |
|
|
23.42 |
% |
|
|
16.75 |
% |
|
|
21.99 |
% |
|
|
15.63 |
% |
Core efficiency ratio |
|
52.80 |
% |
|
|
52.41 |
% |
|
|
55.87 |
% |
|
|
52.61 |
% |
|
|
57.61 |
% |
Net interest margin (FTE) |
|
3.85 |
% |
|
|
4.01 |
% |
|
|
3.38 |
% |
|
|
3.93 |
% |
|
|
3.29 |
% |
(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.
Second Quarter 2023
Highlights
- Net income of $42.8 million and diluted
earnings per share of $0.42 represented an increase of $12.6
million, or $0.12 per share, from the prior quarter and an increase
of $12.0 million, or $0.09 per share, from the second quarter of
2022
- The results from the previous quarter
included $19.2 million of merger-related expenses, including $8.5
million of noninterest expense and impacts to the provision for
credit losses of $10.7 million, related to the Company’s
acquisition of Centric Financial Corporation (Centric) on January
31, 2023
- Core pre-tax pre-provision net revenue
(PPNR)(1) totaled $56.3 million, an increase of $1.9 million from
the previous quarter and an increase of $14.0 million from the
second quarter of 2022
- Total loans increased $148.1 million,
or 6.9% annualized, from the previous quarter, driven by strong
commercial loan growth, including $44.9 million growth in Equipment
Finance loans
- Average loans increased $387.6 million,
or 18.7% annualized, from the previous quarter, due in part to the
inclusion of acquired loan balances on the Company’s balance sheet
for the entirety of the second quarter, as compared to only two
months of the first quarter
- Average deposits increased $433.5
million, or 20.0% annualized, compared to the prior quarter, due in
part to the inclusion of acquired deposit balances on the Company’s
balance sheet for the entirety of the second quarter, as compared
to only two months of the first quarter
- Excluding deposits acquired in the
Centric acquisition, average deposits increased by $221.4 million,
or 10.8% annualized
- End of period deposits decreased $88.7
million compared to the prior quarter
- 82.0% of deposits were insured or
secured as of June 30, 2023
- The loan-to-deposit ratio increased 250
basis points to 96.4% at the end of the second quarter of 2023
- Loans and available for sale (AFS)
securities as a percentage of total deposits was 105.0% as of June
30, 2023
- Record net interest income (FTE) of
$98.1 million increased $3.5 million from the previous quarter and
increased $24.2 million from the second quarter of 2022
- Noninterest income of $24.5 million
increased $1.6 million from the previous quarter due in part to
higher gain on sale of mortgage loans
- Noninterest expense (excluding
merger-related expense) of $66.0 million increased $3.2 million
from the previous quarter due primarily to elevated hospitalization
expenses
- Total shareholder’s equity increased
$7.4 million from the previous quarter due to a $29.9 million
increase in retained earnings, partially offset by a $14.0 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
- Tangible book value per share increased
$0.11, or 5.3% annualized, from the previous quarter
- AOCI as a percentage of tangible common
equity increased 157 basis points to 16.4% in the second quarter of
2023
- First Commonwealth Bank (the Bank) has
been recognized for the fifth consecutive year by Forbes as one of
the World’s Best Banks for 2023
Profitability
- The core efficiency ratio(1) of 52.8%
increased 39 basis points from the previous quarter, but improved
306 basis points from the second quarter of 2022
- The return on average assets (ROA)
improved 37 basis points to 1.54% compared to previous quarter
- The core return on average assets(1)
decreased 22 basis points to 1.54% compared to the previous quarter
but improved 26 basis points from the second quarter of 2023
- Core pre-tax pre-provision ROA(1) for
the quarter ended June 30, 2023 was 2.03% as compared to 2.11% in
the prior quarter and 1.77% in the second quarter of 2022
- The net interest margin of 3.85%
decreased 16 basis points compared to the prior quarter and
increased 47 basis points as compared to the second quarter of 2022
- Centric purchasing accounting marks
contributed 14 basis points to the margin in the second quarter, an
increase of 8 basis points from the prior quarter
- The retention of approximately $250
million of additional cash on the Bank’s balance sheet for
liquidity purposes had a negative impact on the net interest margin
of 10 basis points in the second quarter
Asset quality
- The provision for credit losses was
$2.8 million, a decrease of $5.2 million compared to the previous
quarter
- Provision expense in the prior quarter
included $10.7 million related to day-1 Non-Purchase Credit
Deteriorated (PCD) loans resulting from the Centric
acquisition
- The allowance for credit losses as a
percentage of end-of-period loans was 1.52%, a decrease of 3 basis
points from the previous quarter
- Total criticized loans increased $17.2
million from the previous quarter, from $189.9 million, or 2.2% of
total loans and leases, to $207.1 million, or 2.3% of total loans
and leases
- Total nonperforming assets of $49.3
million increased $4.1 million from the previous quarter
Net charge-offs on loans totaled $8.7 million, an increase of
$7.5 million from the previous quarter due to the resolution of
$7.6 million of acquired loans, of which $7.1 million was reserved
for through purchase accounting marks
- Net charge-offs as a percentage of
average loans outstanding was 0.40% in the second quarter of 2023
as compared to 0.06% in the previous quarter, 0.35% of which was
attributable to the aforementioned charge off of acquired
loans
Strong capital and liquidity positions
- Total available liquidity of $4.3
billion at June 30, 2023
- Cash and AFS securities as a percentage
of total assets increased 26 basis points to 10.9%
- Total available liquidity represented
258% of uninsured/unsecured deposits, and combined with cash
represented 285% of uninsured/unsecured deposits
- On April 24, 2023, the Board of
Directors authorized a 4.2% increase in the quarterly cash dividend
to shareholders
- Bank-level Tier 1 Capital ratio of
10.7%, which represents $245.7 million in excess capital above the
regulatory “well capitalized” requirement of 8.0%
- A total of 766,393 shares at a weighted
average price of $11.92 were repurchased during the second quarter
of 2023 under the Company’s previously authorized share repurchase
program. The remaining repurchase capacity under the current
program was $21.1 million as of June 30, 2023
“I’m pleased with our progress this quarter, as we continue to
grow the company strategically while posting a core efficiency
ratio of 52.8% and a return on average assets of 1.54%,” stated T.
Michael Price, President and Chief Executive Officer. “Our asset
quality remains solid despite an uptick in net charge-offs stemming
from loans that were marked with the acquisition of Centric Bank,
which was completed in the first quarter of 2023.” Price continued,
"While we expect the higher interest rate environment to continue
to pressure funding costs, we believe our granular core deposit
base positions us well to manage through any market uncertainty and
continue to carry out our mission to improve the financial lives of
our neighbors and their businesses.”
Earnings
Net income for the second quarter of 2023 was $42.8 million, or
$0.42 per share, compared to $30.2 million, or $0.30 per share in
the first quarter of 2023, and $30.8 million, or $0.33 per share
for the second quarter of 2022.
Net Interest Income and Net Interest Margin
Net interest income (FTE) of $98.1 million increased $3.5
million from the previous quarter and increased $24.2 million from
the prior year quarter. The increase from the previous quarter was
primarily due to a $643.2 million increase in average
interest-earning assets, which includes $604.3 million in average
interest-earning assets from the Centric acquisition.
The net interest margin for the second quarter of 2023 was
3.85%, a decrease of 16 basis points from the previous quarter and
an increase of 47 basis points from the second quarter of 2022. The
decrease from the previous quarter was due primarily to a 42 basis
point increase in the cost of deposits partially offset by a 31
basis point increase in the yield on loans. The total cost of funds
was 1.38% in the second quarter of 2023, which represents an
increase of 48 basis points from the previous quarter.
Total average deposits grew $433.5 million in the second quarter
of 2023 as compared to the previous quarter, due in part to the
inclusion of acquired deposit balances on the Company’s balance
sheet for the entirety of the second quarter, as compared to only
two months of the first quarter. Total average deposits (excluding
acquired deposits) grew $221.4 million in the second quarter of
2023 as compared to the previous quarter. Average interest-bearing
demand and savings deposits (excluding acquired deposits) grew
$156.2 million and average time deposits (excluding acquired
deposits) grew $200.5 million, which was partially offset by a
$137.6 million decrease in average noninterest-bearing deposits
(excluding acquired deposits). Approximately 93% of the
acquired Centric deposits at the time of acquisition have been
retained through June 30, 2023, within expectations.
Asset Quality
Provision expense in the second quarter of 2023 totaled $2.8
million as compared to $8.0 million in the previous quarter, which
included $10.7 million of day-1 Non-PCD provision expense resulting
from the Centric acquisition. The increase in the provision expense
for the non-acquired portfolio was primarily driven by strong loan
growth and the economic forecast, which resulted in a $5.4 million
increase in the quantitative portion of the allowance for credit
losses (ACL). The quantitative forecast was impacted by changes in
various inputs such as the unemployment rate and the Gross Domestic
Product forecast.
The allowance for credit losses in the second quarter of 2023
totaled $133.5 million as compared to $133.9 million in the
previous quarter. The decrease from the previous quarter was the
result of $8.7 million in net charge-offs ($7.6 million of which
was related to acquired loans that had been the subject of purchase
accounting marks in the first quarter as part of the Centric
acquisition); a $5.1 million increase in reserves due to increases
in provisional purchase accounting marks of loans acquired in the
Centric acquisition; and $3.2 million in provision expense; all of
which was partially offset by a negative $0.4 million provision for
unfunded commitments.
The allowance for credit losses as a percentage of end-of-period
loans in the second quarter of 2023 was 1.52% as compared to 1.55%
in the previous quarter.
At June 30, 2023, nonperforming loans totaled $48.0 million, an
increase of $3.8 million from the previous quarter. The increase in
nonperforming loans was primarily due to the migration of $2.9
million in loans acquired in the Centric acquisition into
nonaccrual status.
Nonperforming loans represented 0.54% of total loans for the
period ended June 30, 2023 as compared to 0.51% and 0.50% for the
periods ended March 31, 2023 and June 30, 2022, respectively.
During the second quarter of 2023, net charge-offs were $8.7
million as compared to $1.2 million in the previous quarter and
$1.5 million in the second quarter of 2022. The increase from the
prior period was primarily due to the charge off of $7.6 million in
commercial loans that were acquired in the Centric acquisition, for
which the allowance was created in the prior quarter through
purchase accounting marks at the time of the acquisition.
Net charge-offs as a percentage of average loans were 0.40%,
0.06% and 0.09% for the periods ended June 30, 2023, March 31, 2023
and June 30, 2022, respectively.
Noninterest Income and Noninterest Expense
Noninterest income totaled $24.5 million for the second quarter
of 2023, as compared to $23.0 million for the first quarter of 2023
and $24.5 million for the second quarter of 2022.
The $1.5 million increase from the previous quarter was
primarily due to a $0.6 million increase in gain on sale of
mortgage loans, a $0.5 million increase in card-related interchange
income and a $0.4 million increase in service charges on deposit
accounts.
Noninterest expense (excluding ($60) thousand of merger-related
expense) totaled $66.0 million for the second quarter of 2023, as
compared to $62.8 million for the first quarter of 2023 and $55.7
million for the second quarter of 2022. Expense increased in
comparison with the prior quarter primarily due to a $2.5 million
increase in salaries and benefits (primarily driven by a $1.7
million increase in hospitalization expense) and a $0.7 million
increase in incentives due to an accrual adjustment in the first
quarter for unpaid incentives from the previous year. In addition,
other operating expenses increased $1.2 million partially due to
$0.5 million in expense for additional deposit customer disclosures
indirectly related to crossing over $10 billion in total
assets.
The core efficiency ratio was 52.8% during the second quarter of
2023 as compared to 52.4% in the previous quarter and 55.9% in the
second quarter of 2022.
Full time equivalent staff was 1,483 at June 30, 2023, 1,536 at
March 31, 2023, and 1,409 at June 30, 2022.
Dividends and Capital
First Commonwealth declared a common stock quarterly dividend of
$0.125 per share, which represents a 4.2% increase from the second
quarter of 2022. The cash dividend is payable on August 18, 2023 to
shareholders of record as of August 4, 2023. This dividend
represents a 3.5% projected annual yield utilizing the July 24,
2023 closing market price of $14.15.
First Commonwealth’s capital ratios for Total, Tier I, Leverage
and Common Equity Tier I at June 30, 2023 were 13.7%, 11.5%, 9.8%
and 10.8%, 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 second quarter of 2023 on
Wednesday, July 26, 2023 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 126 community banking offices in 30 counties
throughout western and central Pennsylvania and throughout Ohio, as
well as commercial lending operations in Pittsburgh and Harrisburg,
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) volatility and
disruption in national and international financial markets; (2) the
effects of and changes in trade and monetary and fiscal policies
and laws, including the interest rate policies of the Federal
Reserve Board; (3) inflation, interest rate, commodity price,
securities market and monetary fluctuations; (4) 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; (5) the soundness
of other financial institutions; (6) political instability; (7)
impairment of First Commonwealth’s goodwill or other intangible
assets; (8) acts of God or of war or terrorism; (9) the timely
development and acceptance of new products and services and
perceived overall value of these products and services by users;
(10) changes in consumer spending, borrowings and savings habits;
(11) changes in the financial performance and/or condition of First
Commonwealth’s borrowers; (12) technological changes; (13)
acquisitions and integration of acquired businesses; (14) First
Commonwealth’s ability to attract and retain qualified employees;
(15) changes in the competitive environment in First Commonwealth’s
markets and among banking organizations and other financial service
providers; (16) the ability to increase market share and control
expenses; (17) 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;
(18) the reliability of First Commonwealth’s vendors, internal
control systems or information systems; (19) 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 (20) 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.
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. LongwillVice
President / Communications and Media RelationsPhone:
724-463-6806E-mail: JLongwill@fcbanking.com
Investor Relations:Ryan M. ThomasVice President
/ Finance and Investor RelationsPhone: 724-463-1690E-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 Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
SUMMARY RESULTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
97,824 |
|
|
$ |
94,358 |
|
|
$ |
73,662 |
|
|
$ |
192,182 |
|
|
$ |
141,834 |
|
Provision for credit
losses |
|
2,790 |
|
|
|
(2,650 |
) |
|
|
4,099 |
|
|
|
140 |
|
|
|
6,063 |
|
Provision for credit losses —
acquisition day 1 non-PCD |
|
— |
|
|
|
10,653 |
|
|
|
— |
|
|
|
10,653 |
|
|
|
— |
|
Noninterest income |
|
24,523 |
|
|
|
22,963 |
|
|
|
24,509 |
|
|
|
47,486 |
|
|
|
48,485 |
|
Noninterest expense |
|
65,943 |
|
|
|
71,381 |
|
|
|
55,679 |
|
|
|
137,324 |
|
|
|
111,403 |
|
Net income |
|
42,781 |
|
|
|
30,224 |
|
|
|
30,754 |
|
|
|
73,005 |
|
|
|
58,480 |
|
Core net income(5) |
|
42,734 |
|
|
|
45,387 |
|
|
|
30,643 |
|
|
|
88,121 |
|
|
|
58,458 |
|
Earnings per common
share (diluted) |
$ |
0.42 |
|
|
$ |
0.30 |
|
|
$ |
0.33 |
|
|
$ |
0.72 |
|
|
$ |
0.62 |
|
Core earnings per
common share (diluted)(6) |
$ |
0.42 |
|
|
$ |
0.45 |
|
|
$ |
0.33 |
|
|
$ |
0.87 |
|
|
$ |
0.62 |
|
KEY FINANCIAL
RATIOS |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.54 |
% |
|
|
1.17 |
% |
|
|
1.28 |
% |
|
|
1.36 |
% |
|
|
1.23 |
% |
Core return on average
assets(7) |
|
1.54 |
% |
|
|
1.75 |
% |
|
|
1.28 |
% |
|
|
1.64 |
% |
|
|
1.23 |
% |
Return on average assets,
pre-provision, pre-tax |
|
2.03 |
% |
|
|
1.78 |
% |
|
|
1.78 |
% |
|
|
1.91 |
% |
|
|
1.66 |
% |
Core return on average assets,
pre-provision, pre-tax |
|
2.03 |
% |
|
|
2.11 |
% |
|
|
1.77 |
% |
|
|
2.06 |
% |
|
|
1.66 |
% |
Return on average
shareholders' equity |
|
13.90 |
% |
|
|
10.56 |
% |
|
|
11.60 |
% |
|
|
12.29 |
% |
|
|
10.86 |
% |
Return on average tangible
common equity(8) |
|
20.68 |
% |
|
|
15.75 |
% |
|
|
16.81 |
% |
|
|
18.30 |
% |
|
|
15.64 |
% |
Core return on average
tangible common equity(9) |
|
20.66 |
% |
|
|
23.42 |
% |
|
|
16.75 |
% |
|
|
21.99 |
% |
|
|
15.63 |
% |
Core efficiency
ratio(2)(10) |
|
52.80 |
% |
|
|
52.41 |
% |
|
|
55.87 |
% |
|
|
52.61 |
% |
|
|
57.61 |
% |
Net interest margin
(FTE)(1) |
|
3.85 |
% |
|
|
4.01 |
% |
|
|
3.38 |
% |
|
|
3.93 |
% |
|
|
3.29 |
% |
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
12.03 |
|
|
$ |
11.87 |
|
|
$ |
11.20 |
|
|
|
|
|
Tangible book value per common
share(11) |
|
8.24 |
|
|
|
8.13 |
|
|
|
7.85 |
|
|
|
|
|
Market value per common
share |
|
12.65 |
|
|
|
12.43 |
|
|
|
13.42 |
|
|
|
|
|
Cash dividends declared per
common share |
|
0.125 |
|
|
|
0.120 |
|
|
|
0.120 |
|
|
|
0.245 |
|
|
|
0.235 |
|
ASSET QUALITY
RATIOS |
|
|
|
|
|
|
|
|
|
Nonperforming loans and leases
as a percent of end-of-period loans and leases(3) |
|
0.54 |
% |
|
|
0.51 |
% |
|
|
0.50 |
% |
|
|
|
|
Nonperforming assets as a
percent of total assets(3) |
|
0.44 |
% |
|
|
0.41 |
% |
|
|
0.38 |
% |
|
|
|
|
Net charge-offs as a percent
of average loans and leases (annualized)(4) |
|
0.40 |
% |
|
|
0.06 |
% |
|
|
0.09 |
% |
|
|
|
|
Allowance for credit losses as
a percent of nonperforming loans and leases(4) |
|
278.17 |
% |
|
|
302.67 |
% |
|
|
262.25 |
% |
|
|
|
|
Allowance for credit losses as
a percent of end-of-period loans and leases(4) |
|
1.52 |
% |
|
|
1.55 |
% |
|
|
1.31 |
% |
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
Shareholders' equity as a
percent of total assets |
|
10.9 |
% |
|
|
11.0 |
% |
|
|
11.0 |
% |
|
|
|
|
Tangible common equity as a
percent of tangible assets(12) |
|
7.7 |
% |
|
|
7.8 |
% |
|
|
8.0 |
% |
|
|
|
|
Leverage Ratio |
|
9.8 |
% |
|
|
10.2 |
% |
|
|
9.8 |
% |
|
|
|
|
Risk Based Capital - Tier
I |
|
11.5 |
% |
|
|
11.5 |
% |
|
|
12.2 |
% |
|
|
|
|
Risk Based Capital -
Total |
|
13.7 |
% |
|
|
13.8 |
% |
|
|
14.6 |
% |
|
|
|
|
Common Equity - Tier I |
|
10.8 |
% |
|
|
10.8 |
% |
|
|
11.2 |
% |
|
|
|
|
FIRST
COMMONWEALTH FINANCIAL CORPORATION |
|
|
|
|
CONSOLIDATED FINANCIAL
DATA |
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
INCOME
STATEMENT |
|
|
|
|
|
|
Interest income |
$ |
131,267 |
|
$ |
114,589 |
|
$ |
76,728 |
|
$ |
245,856 |
|
$ |
147,972 |
Interest expense |
|
33,443 |
|
|
20,231 |
|
|
3,066 |
|
|
53,674 |
|
|
6,138 |
Net Interest
Income |
|
97,824 |
|
|
94,358 |
|
|
73,662 |
|
|
192,182 |
|
|
141,834 |
Provision for credit losses |
|
2,790 |
|
|
(2,650 |
) |
|
4,099 |
|
|
140 |
|
|
6,063 |
Provision for credit losses - acquisition day 1 non-PCD |
|
— |
|
|
10,653 |
|
|
— |
|
|
10,653 |
|
|
— |
Net Interest Income
after Provision for Credit Losses |
|
95,034 |
|
|
86,355 |
|
|
69,563 |
|
|
181,389 |
|
|
135,771 |
Net securities gains |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
Trust income |
|
2,532 |
|
|
2,486 |
|
|
2,573 |
|
|
5,018 |
|
|
5,286 |
Service charges on deposit accounts |
|
5,324 |
|
|
4,918 |
|
|
4,886 |
|
|
10,242 |
|
|
9,501 |
Insurance and retail brokerage commissions |
|
2,314 |
|
|
2,552 |
|
|
2,486 |
|
|
4,866 |
|
|
4,758 |
Income from bank owned life insurance |
|
1,195 |
|
|
1,227 |
|
|
1,383 |
|
|
2,422 |
|
|
2,891 |
Gain on sale of mortgage loans |
|
1,253 |
|
|
652 |
|
|
1,561 |
|
|
1,905 |
|
|
2,843 |
Gain on sale of other loans and assets |
|
1,891 |
|
|
2,086 |
|
|
1,099 |
|
|
3,977 |
|
|
3,418 |
Card-related interchange income |
|
7,372 |
|
|
6,829 |
|
|
7,137 |
|
|
14,201 |
|
|
13,627 |
Derivative mark-to-market |
|
81 |
|
|
(89 |
) |
|
42 |
|
|
(8 |
) |
|
389 |
Swap fee income |
|
332 |
|
|
245 |
|
|
1,154 |
|
|
577 |
|
|
1,607 |
Other income |
|
2,229 |
|
|
2,057 |
|
|
2,188 |
|
|
4,286 |
|
|
4,163 |
Total Noninterest
Income |
|
24,523 |
|
|
22,963 |
|
|
24,509 |
|
|
47,486 |
|
|
48,485 |
Salaries and employee benefits |
|
36,735 |
|
|
34,264 |
|
|
30,949 |
|
|
70,999 |
|
|
61,881 |
Net occupancy |
|
4,784 |
|
|
5,018 |
|
|
4,170 |
|
|
9,802 |
|
|
8,957 |
Furniture and equipment |
|
4,284 |
|
|
4,238 |
|
|
3,857 |
|
|
8,522 |
|
|
7,587 |
Data processing |
|
3,763 |
|
|
3,404 |
|
|
3,470 |
|
|
7,167 |
|
|
6,658 |
Pennsylvania shares tax |
|
1,173 |
|
|
1,252 |
|
|
913 |
|
|
2,425 |
|
|
1,918 |
Advertising and promotion |
|
1,327 |
|
|
1,663 |
|
|
1,434 |
|
|
2,990 |
|
|
2,660 |
Intangible amortization |
|
1,282 |
|
|
1,147 |
|
|
862 |
|
|
2,429 |
|
|
1,724 |
Other professional fees and services |
|
1,182 |
|
|
1,591 |
|
|
1,197 |
|
|
2,773 |
|
|
2,418 |
FDIC insurance |
|
1,277 |
|
|
1,417 |
|
|
702 |
|
|
2,694 |
|
|
1,400 |
Litigation and operational losses |
|
894 |
|
|
743 |
|
|
629 |
|
|
1,637 |
|
|
1,229 |
Loss on sale or write-down of assets |
|
6 |
|
|
41 |
|
|
86 |
|
|
47 |
|
|
161 |
Merger and acquisition |
|
(60 |
) |
|
8,541 |
|
|
— |
|
|
8,481 |
|
|
— |
Other operating expenses |
|
9,296 |
|
|
8,062 |
|
|
7,410 |
|
|
17,358 |
|
|
14,810 |
Total Noninterest
Expense |
|
65,943 |
|
|
71,381 |
|
|
55,679 |
|
|
137,324 |
|
|
111,403 |
Income before Income
Taxes |
|
53,614 |
|
|
37,937 |
|
|
38,393 |
|
|
91,551 |
|
|
72,853 |
Income tax provision |
|
10,833 |
|
|
7,713 |
|
|
7,639 |
|
|
18,546 |
|
|
14,373 |
Net
Income |
$ |
42,781 |
|
$ |
30,224 |
|
$ |
30,754 |
|
$ |
73,005 |
|
$ |
58,480 |
|
|
|
|
|
|
|
Shares Outstanding at End of
Period |
|
102,444,915 |
|
|
103,193,127 |
|
|
93,705,120 |
|
|
102,444,915 |
|
|
93,705,120 |
Average Shares Outstanding
Assuming Dilution |
|
102,760,266 |
|
|
99,779,816 |
|
|
94,245,770 |
|
|
101,281,899 |
|
|
94,273,808 |
|
|
|
|
|
|
|
FIRST
COMMONWEALTH FINANCIAL CORPORATION |
|
|
|
CONSOLIDATED FINANCIAL
DATA |
|
|
|
|
|
Unaudited |
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
BALANCE SHEET (Period
End) |
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
123,095 |
|
|
$ |
113,692 |
|
|
$ |
120,267 |
|
Interest-bearing bank deposits |
|
325,774 |
|
|
|
282,110 |
|
|
|
179,533 |
|
Securities available for sale, at fair value |
|
784,503 |
|
|
|
786,813 |
|
|
|
877,287 |
|
Securities held to maturity, at amortized cost |
|
439,922 |
|
|
|
451,278 |
|
|
|
492,229 |
|
Loans held for sale |
|
16,300 |
|
|
|
11,050 |
|
|
|
12,876 |
|
|
|
|
|
|
|
Loans and leases |
|
8,799,836 |
|
|
|
8,656,945 |
|
|
|
7,119,754 |
|
Allowance for credit losses |
|
(133,546 |
) |
|
|
(133,885 |
) |
|
|
(93,603 |
) |
Net loans and leases |
|
8,666,290 |
|
|
|
8,523,060 |
|
|
|
7,026,151 |
|
|
|
|
|
|
|
Goodwill and other intangibles |
|
388,451 |
|
|
|
385,998 |
|
|
|
313,449 |
|
Other assets |
|
574,269 |
|
|
|
559,751 |
|
|
|
504,635 |
|
Total
Assets |
$ |
11,318,604 |
|
|
$ |
11,113,752 |
|
|
$ |
9,526,427 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
2,624,344 |
|
|
$ |
2,698,225 |
|
|
$ |
2,726,242 |
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
611,156 |
|
|
|
547,015 |
|
|
|
273,360 |
|
Savings deposits |
|
4,935,124 |
|
|
|
5,127,037 |
|
|
|
4,708,868 |
|
Time deposits |
|
975,654 |
|
|
|
862,671 |
|
|
|
345,075 |
|
Total interest-bearing deposits |
|
6,521,934 |
|
|
|
6,536,723 |
|
|
|
5,327,303 |
|
|
|
|
|
|
|
Total deposits |
|
9,146,278 |
|
|
|
9,234,948 |
|
|
|
8,053,545 |
|
|
|
|
|
|
|
Short-term borrowings |
|
542,839 |
|
|
|
278,978 |
|
|
|
88,923 |
|
Long-term borrowings |
|
187,276 |
|
|
|
187,531 |
|
|
|
181,752 |
|
Total borrowings |
|
730,115 |
|
|
|
466,509 |
|
|
|
270,675 |
|
|
|
|
|
|
|
Other liabilities |
|
209,792 |
|
|
|
187,281 |
|
|
|
153,049 |
|
Shareholders' equity |
|
1,232,419 |
|
|
|
1,225,014 |
|
|
|
1,049,158 |
|
Total Liabilities and
Shareholders' Equity |
$ |
11,318,604 |
|
|
$ |
11,113,752 |
|
|
$ |
9,526,427 |
|
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in
thousands) |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
Yield/ |
March 31, |
Yield/ |
June 30, |
Yield/ |
|
June 30, |
Yield/ |
June 30, |
Yield/ |
|
|
2023 |
Rate |
|
2023 |
Rate |
|
2022 |
Rate |
|
|
2023 |
Rate |
|
2022 |
Rate |
NET
INTEREST MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Loans and leases (FTE)(1)(3) |
$ |
8,689,021 |
5.58 |
% |
$ |
8,301,449 |
5.27 |
% |
$ |
7,036,176 |
3.97 |
% |
|
$ |
8,496,305 |
5.43 |
% |
$ |
6,965,296 |
3.89 |
% |
Securities and interest-bearing bank deposits (FTE)(1) |
|
1,535,136 |
2.77 |
% |
|
1,279,477 |
2.20 |
% |
|
1,734,126 |
1.68 |
% |
|
|
1,408,014 |
2.51 |
% |
|
1,771,421 |
1.61 |
% |
Total Interest-Earning Assets
(FTE)(1) |
|
10,224,157 |
5.16 |
% |
|
9,580,926 |
4.86 |
% |
|
8,770,302 |
3.52 |
% |
|
|
9,904,319 |
5.02 |
% |
|
8,736,717 |
3.43 |
% |
Noninterest-earning assets |
|
932,756 |
|
|
907,982 |
|
|
830,167 |
|
|
|
920,437 |
|
|
826,016 |
|
Total
Assets |
$ |
11,156,913 |
|
$ |
10,488,908 |
|
$ |
9,600,469 |
|
|
$ |
10,824,756 |
|
$ |
9,562,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand and savings deposits |
$ |
5,595,336 |
1.35 |
% |
$ |
5,312,086 |
0.88 |
% |
$ |
5,067,692 |
0.05 |
% |
|
$ |
5,454,494 |
1.13 |
% |
$ |
5,024,283 |
0.04 |
% |
Time deposits |
|
930,447 |
3.03 |
% |
|
682,144 |
2.34 |
% |
|
354,403 |
0.26 |
% |
|
|
806,981 |
2.74 |
% |
|
364,388 |
0.27 |
% |
Short-term borrowings |
|
434,783 |
4.79 |
% |
|
266,932 |
3.65 |
% |
|
95,561 |
0.08 |
% |
|
|
351,321 |
4.36 |
% |
|
105,497 |
0.07 |
% |
Long-term borrowings |
|
187,379 |
5.03 |
% |
|
185,367 |
5.06 |
% |
|
181,859 |
4.96 |
% |
|
|
186,378 |
5.04 |
% |
|
181,988 |
4.97 |
% |
Total Interest-Bearing Liabilities |
|
7,147,945 |
1.88 |
% |
|
6,446,529 |
1.27 |
% |
|
5,699,515 |
0.22 |
% |
|
|
6,799,174 |
1.59 |
% |
|
5,676,156 |
0.22 |
% |
Noninterest-bearing deposits |
|
2,580,842 |
|
|
2,678,849 |
|
|
2,711,458 |
|
|
|
2,629,575 |
|
|
2,678,686 |
|
Other liabilities |
|
193,292 |
|
|
202,476 |
|
|
125,646 |
|
|
|
197,860 |
|
|
122,379 |
|
Shareholders' equity |
|
1,234,834 |
|
|
1,161,054 |
|
|
1,063,850 |
|
|
|
1,198,147 |
|
|
1,085,512 |
|
Total Noninterest-Bearing Funding Sources |
|
4,008,968 |
|
|
4,042,379 |
|
|
3,900,954 |
|
|
|
4,025,582 |
|
|
3,886,577 |
|
Total Liabilities and
Shareholders' Equity |
$ |
11,156,913 |
|
$ |
10,488,908 |
|
$ |
9,600,469 |
|
|
$ |
10,824,756 |
|
$ |
9,562,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
(FTE) (annualized)(1) |
|
3.85 |
% |
|
4.01 |
% |
|
3.38 |
% |
|
|
3.93 |
% |
|
3.29 |
% |
FIRST
COMMONWEALTH FINANCIAL CORPORATION |
|
CONSOLIDATED FINANCIAL
DATA |
|
|
|
Unaudited |
|
|
|
(dollars in thousands) |
|
|
|
|
June 30, |
March 31, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Loan and Lease
Portfolio Detail |
|
|
|
Commercial Loan and Lease Portfolio: |
|
|
|
Commercial, financial, agricultural and other |
$ |
1,347,842 |
|
$ |
1,361,858 |
|
$ |
1,149,521 |
|
Commercial real estate |
|
3,004,962 |
|
|
2,991,930 |
|
|
2,319,094 |
|
Equipment Finance loans and leases |
|
154,152 |
|
|
109,221 |
|
|
21,062 |
|
Real estate construction |
|
474,720 |
|
|
422,831 |
|
|
292,400 |
|
Total Commercial |
|
4,981,676 |
|
|
4,885,840 |
|
|
3,782,077 |
|
|
|
|
|
Consumer Loan Portfolio: |
|
|
|
Closed-end mortgages |
|
1,858,660 |
|
|
1,807,941 |
|
|
1,567,561 |
|
Home equity lines of credit |
|
505,449 |
|
|
515,926 |
|
|
532,640 |
|
Real estate construction |
|
100,079 |
|
|
119,071 |
|
|
100,592 |
|
Total Real Estate - Consumer |
|
2,464,188 |
|
|
2,442,938 |
|
|
2,200,793 |
|
|
|
|
|
Auto & RV loans |
|
1,272,557 |
|
|
1,244,874 |
|
|
1,047,104 |
|
Direct installment |
|
28,881 |
|
|
30,381 |
|
|
35,245 |
|
Personal lines of credit |
|
49,168 |
|
|
49,399 |
|
|
50,249 |
|
Student loans |
|
3,366 |
|
|
3,513 |
|
|
4,286 |
|
Total Other Consumer |
|
1,353,972 |
|
|
1,328,167 |
|
|
1,136,884 |
|
Total Consumer Portfolio |
|
3,818,160 |
|
|
3,771,105 |
|
|
3,337,677 |
|
Total Portfolio Loans and Leases |
|
8,799,836 |
|
|
8,656,945 |
|
|
7,119,754 |
|
Loans held for sale |
|
16,300 |
|
|
11,050 |
|
|
12,876 |
|
Total Loans and Leases |
$ |
8,816,136 |
|
$ |
8,667,995 |
|
$ |
7,132,630 |
|
|
|
|
|
|
|
|
|
|
June 30, |
March 31, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
ASSET QUALITY
DETAIL |
|
|
|
Nonperforming Loans
and Leases: |
|
|
|
Loans and leases on nonaccrual
basis * |
$ |
29,322 |
|
$ |
29,413 |
|
$ |
29,288 |
|
Loans on nonaccrual basis -
Centric acquisition |
|
18,687 |
|
|
14,821 |
|
|
— |
|
Troubled debt restructured
loans on accrual basis * |
|
— |
|
|
— |
|
|
6,404 |
|
Total Nonperforming Loans and Leases |
$ |
48,009 |
|
$ |
44,234 |
|
$ |
35,692 |
|
Other real estate owned
("OREO") |
|
324 |
|
|
424 |
|
|
93 |
|
Repossessions ("Repos") |
|
1,004 |
|
|
553 |
|
|
621 |
|
Total Nonperforming Assets |
$ |
49,337 |
|
$ |
45,211 |
|
$ |
36,406 |
|
Loans past due in excess of 90
days and still accruing |
|
2,474 |
|
|
1,440 |
|
|
3,155 |
|
Classified loans and
leases |
|
76,419 |
|
|
76,962 |
|
|
46,798 |
|
Criticized loans and
leases |
|
207,071 |
|
|
189,873 |
|
|
146,780 |
|
|
|
|
|
Nonperforming assets as a
percentage of total loans and leases, plus OREO and Repos(4) |
|
0.56 |
% |
|
0.52 |
% |
|
0.51 |
% |
Allowance for credit
losses |
$ |
133,546 |
|
$ |
133,885 |
|
$ |
93,603 |
|
*TDR's were
eliminated as of January 1, 2023 as part of implementing ASU
2022-02, Financial Instruments Credit Losses (Topic 326): Troubled
Debt Restructurings and Vintage Disclosures. |
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands) |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Net Charge-offs
(Recoveries): |
|
|
|
|
|
|
Commercial, financial, agricultural and other |
$ |
6,582 |
|
$ |
504 |
|
$ |
430 |
|
|
$ |
7,086 |
|
$ |
825 |
|
Real estate construction |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Commercial real estate |
|
1,423 |
|
|
(42 |
) |
|
547 |
|
|
|
1,381 |
|
|
533 |
|
Residential real estate |
|
(32 |
) |
|
41 |
|
|
(26 |
) |
|
|
9 |
|
|
84 |
|
Loans to individuals |
|
692 |
|
|
670 |
|
|
577 |
|
|
|
1,362 |
|
|
1,220 |
|
Net
Charge-offs |
$ |
8,665 |
|
$ |
1,173 |
|
$ |
1,528 |
|
|
$ |
9,838 |
|
$ |
2,662 |
|
|
|
|
|
|
|
|
Net charge-offs as a
percentage of average loans and leases outstanding
(annualized)(4) |
|
0.40 |
% |
|
0.06 |
% |
|
0.09 |
% |
|
|
0.23 |
% |
|
0.08 |
% |
Provision for credit losses as
a percentage of net charge-offs |
|
32.20 |
% |
(225.92)% |
|
268.26 |
% |
|
|
1.42 |
% |
|
227.76 |
% |
Provision for credit
losses |
$ |
2,790 |
|
$ |
(2,650 |
) |
$ |
4,099 |
|
|
$ |
140 |
|
$ |
6,063 |
|
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
Note: Management believes that it is standard practice in the
banking industry to present these non-GAAP measures. These measures
provide useful information to management and investors by allowing
them to make peer comparisons. |
|
|
|
|
|
|
|
(1)Net interest
income has been computed on a fully taxable equivalent basis
("FTE") using the federal income tax statutory rate of 21%. |
(2)Core
efficiency ratio excludes from total revenue the impact of
derivative mark-to-market and excludes from "total noninterest
expense" the amortization of intangibles and any other unusual
items deemed by management to not be related to normal operations,
such as merger, acquisition and severance costs. |
(3)Includes held
for sale loans. |
|
|
(4)Excludes held
for sale loans. |
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Interest income |
$ |
131,267 |
$ |
114,589 |
$ |
76,728 |
|
$ |
245,856 |
$ |
147,972 |
Adjustment to fully taxable
equivalent basis(1) |
|
305 |
|
305 |
|
244 |
|
|
610 |
|
498 |
Interest income adjusted to
fully taxable equivalent basis (non-GAAP) |
|
131,572 |
|
114,894 |
|
76,972 |
|
|
246,466 |
|
148,470 |
Interest expense |
|
33,443 |
|
20,231 |
|
3,066 |
|
|
53,674 |
|
6,138 |
Net interest income,
(FTE)(1) |
$ |
98,129 |
$ |
94,663 |
$ |
73,906 |
|
$ |
192,792 |
$ |
142,332 |
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands, except
per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net
Income |
$ |
42,781 |
|
$ |
30,224 |
|
$ |
30,754 |
|
|
$ |
73,005 |
|
$ |
58,480 |
|
Intangible amortization |
|
1,282 |
|
|
1,147 |
|
|
862 |
|
|
|
2,429 |
|
|
1,724 |
|
Tax benefit of amortization of intangibles |
|
(269 |
) |
|
(241 |
) |
|
(181 |
) |
|
|
(510 |
) |
|
(362 |
) |
Net Income, adjusted for tax affected amortization of
intangibles |
$ |
43,794 |
|
$ |
31,130 |
|
$ |
31,435 |
|
|
$ |
74,924 |
|
$ |
59,842 |
|
|
|
|
|
|
|
|
Average Tangible
Equity: |
|
|
|
|
|
|
Total shareholders' equity |
$ |
1,234,834 |
|
$ |
1,161,054 |
|
$ |
1,063,850 |
|
|
$ |
1,198,147 |
|
$ |
1,085,512 |
|
Less: intangible assets |
|
385,567 |
|
|
359,431 |
|
|
313,617 |
|
|
|
372,571 |
|
|
313,924 |
|
Tangible Equity |
|
849,267 |
|
|
801,623 |
|
|
750,233 |
|
|
|
825,576 |
|
|
771,588 |
|
Less: preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Tangible Common Equity |
$ |
849,267 |
|
$ |
801,623 |
|
$ |
750,233 |
|
|
$ |
825,576 |
|
$ |
771,588 |
|
|
|
|
|
|
|
|
(8)Return on Average Tangible Common
Equity |
|
20.68 |
% |
|
15.75 |
% |
|
16.81 |
% |
|
|
18.30 |
% |
|
15.64 |
% |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Core Net
Income: |
|
|
|
|
|
|
Total Net Income |
$ |
42,781 |
|
$ |
30,224 |
|
$ |
30,754 |
|
|
$ |
73,005 |
|
$ |
58,480 |
|
Net securities gains |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(2 |
) |
Merger and acquisition related expenses |
|
(60 |
) |
|
8,541 |
|
|
— |
|
|
|
8,481 |
|
|
— |
|
Tax benefit of merger and acquisition related expenses |
|
13 |
|
|
(1,794 |
) |
|
— |
|
|
|
(1,781 |
) |
|
— |
|
COVID-19 related |
|
— |
|
|
— |
|
|
62 |
|
|
|
— |
|
|
79 |
|
Tax benefit of COVID-19 related |
|
— |
|
|
— |
|
|
(13 |
) |
|
|
— |
|
|
(17 |
) |
Provision for credit losses - acquisition day 1 non-PCD |
|
— |
|
|
10,653 |
|
|
— |
|
|
|
10,653 |
|
|
— |
|
Tax benefit of provision for credit losses - acquisition day 1
non-PCD |
|
— |
|
|
(2,237 |
) |
|
— |
|
|
|
(2,237 |
) |
|
— |
|
Branch consolidation related |
|
— |
|
|
— |
|
|
(202 |
) |
|
|
— |
|
|
(104 |
) |
Tax benefit of bank consolidation related expenses |
|
— |
|
|
— |
|
|
42 |
|
|
|
— |
|
|
22 |
|
(5)Core net income |
$ |
42,734 |
|
$ |
45,387 |
|
$ |
30,643 |
|
|
$ |
88,121 |
|
$ |
58,458 |
|
Average Shares Outstanding Assuming Dilution |
|
102,760,266 |
|
|
99,779,816 |
|
|
94,245,770 |
|
|
|
101,281,899 |
|
|
94,273,808 |
|
(6)Core Earnings per common share
(diluted) |
$ |
0.42 |
|
$ |
0.45 |
|
$ |
0.33 |
|
|
$ |
0.87 |
|
$ |
0.62 |
|
|
|
|
|
|
|
|
Intangible amortization |
|
1,282 |
|
|
1,147 |
|
|
862 |
|
|
|
2,429 |
|
|
1,724 |
|
Tax benefit of amortization of intangibles |
|
(269 |
) |
|
(241 |
) |
|
(181 |
) |
|
|
(510 |
) |
|
(362 |
) |
Core Net Income, adjusted for tax affected amortization of
intangibles |
$ |
43,747 |
|
$ |
46,293 |
|
$ |
31,324 |
|
|
$ |
90,040 |
|
$ |
59,820 |
|
|
|
|
|
|
|
|
(9)Core Return on Average Tangible Common
Equity |
|
20.66 |
% |
|
23.42 |
% |
|
16.75 |
% |
|
|
21.99 |
% |
|
15.63 |
% |
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands,
except per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Core Return on Average
Assets: |
|
|
|
|
|
|
Total Net Income |
$ |
42,781 |
|
$ |
30,224 |
|
$ |
30,754 |
|
|
$ |
73,005 |
|
$ |
58,480 |
|
Total Average Assets |
|
11,156,913 |
|
|
10,488,908 |
|
|
9,600,469 |
|
|
|
10,824,756 |
|
|
9,562,733 |
|
Return on Average Assets |
|
1.54 |
% |
|
1.17 |
% |
|
1.28 |
% |
|
|
1.36 |
% |
|
1.23 |
% |
|
|
|
|
|
|
|
Core Net Income(5) |
$ |
42,734 |
|
$ |
45,387 |
|
$ |
30,643 |
|
|
$ |
88,121 |
|
$ |
58,458 |
|
Total Average Assets |
|
11,156,913 |
|
|
10,488,908 |
|
|
9,600,469 |
|
|
|
10,824,756 |
|
|
9,562,733 |
|
(7)Core Return on Average
Assets |
|
1.54 |
% |
|
1.75 |
% |
|
1.28 |
% |
|
|
1.64 |
% |
|
1.23 |
% |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Core Efficiency
Ratio: |
|
|
|
|
|
|
Total Noninterest Expense |
$ |
65,943 |
|
$ |
71,381 |
|
$ |
55,679 |
|
|
$ |
137,324 |
|
$ |
111,403 |
|
Adjustments to Noninterest Expense: |
|
|
|
|
|
|
Intangible amortization |
|
1,282 |
|
|
1,147 |
|
|
862 |
|
|
|
2,429 |
|
|
1,724 |
|
Merger and acquisition related |
|
(60 |
) |
|
8,541 |
|
|
— |
|
|
|
8,481 |
|
|
— |
|
COVID-19 related |
|
— |
|
|
— |
|
|
62 |
|
|
|
— |
|
|
79 |
|
Branch consolidation related |
|
— |
|
|
— |
|
|
(202 |
) |
|
|
— |
|
|
(104 |
) |
Noninterest Expense - Core |
$ |
64,721 |
|
$ |
61,693 |
|
$ |
54,957 |
|
|
$ |
126,414 |
|
$ |
109,704 |
|
|
|
|
|
|
|
|
Net interest income, (FTE) |
$ |
98,129 |
|
$ |
94,663 |
|
$ |
73,906 |
|
|
$ |
192,792 |
|
$ |
142,332 |
|
Total noninterest income |
|
24,523 |
|
|
22,963 |
|
|
24,509 |
|
|
|
47,486 |
|
|
48,485 |
|
Net securities gains |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(2 |
) |
Total Revenue |
|
122,652 |
|
|
117,626 |
|
|
98,415 |
|
|
|
240,278 |
|
|
190,815 |
|
|
|
|
|
|
|
|
Adjustments to Revenue: |
|
|
|
|
|
|
Derivative mark-to-market |
|
81 |
|
|
(89 |
) |
|
42 |
|
|
|
(8 |
) |
|
389 |
|
Total Revenue - Core |
$ |
122,571 |
|
$ |
117,715 |
|
$ |
98,373 |
|
|
$ |
240,286 |
|
$ |
190,426 |
|
|
|
|
|
|
|
|
(10)Core Efficiency Ratio |
|
52.80 |
% |
|
52.41 |
% |
|
55.87 |
% |
|
|
52.61 |
% |
|
57.61 |
% |
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
|
|
|
|
June 30, |
March 31, |
June 30, |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Tangible
Equity: |
|
|
|
Total shareholders' equity |
$ |
1,232,419 |
|
$ |
1,225,014 |
|
$ |
1,049,158 |
|
Less: intangible assets |
|
388,451 |
|
|
385,998 |
|
|
313,449 |
|
Tangible Equity |
|
843,968 |
|
|
839,016 |
|
|
735,709 |
|
Less: preferred stock |
|
— |
|
|
— |
|
|
— |
|
Tangible Common Equity |
$ |
843,968 |
|
$ |
839,016 |
|
$ |
735,709 |
|
|
|
|
|
Tangible
Assets: |
|
|
|
Total assets |
$ |
11,318,604 |
|
$ |
11,113,752 |
|
$ |
9,526,427 |
|
Less: intangible assets |
|
388,451 |
|
|
385,998 |
|
|
313,449 |
|
Tangible Assets |
$ |
10,930,153 |
|
$ |
10,727,754 |
|
$ |
9,212,978 |
|
|
|
|
|
(12)Tangible Common Equity as a percentage
of Tangible Assets |
|
7.72 |
% |
|
7.82 |
% |
|
7.99 |
% |
|
|
|
|
Shares Outstanding at End of
Period |
|
102,444,915 |
|
|
103,193,127 |
|
|
93,705,120 |
|
(11)Tangible Book Value Per Common
Share |
$ |
8.24 |
|
$ |
8.13 |
|
$ |
7.85 |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2023 |
|
2022 |
|
|
|
2023 |
|
2022 |
|
Pre-tax pre-provision
income: |
|
|
|
|
|
|
Net interest income |
$ |
97,824 |
|
$ |
94,358 |
$ |
73,662 |
|
|
$ |
192,182 |
$ |
141,834 |
|
Noninterest income |
|
24,523 |
|
|
22,963 |
|
24,509 |
|
|
|
47,486 |
|
48,485 |
|
Noninterest expense |
|
65,943 |
|
|
71,381 |
|
55,679 |
|
|
|
137,324 |
|
111,403 |
|
Pre-tax pre-provision income |
$ |
56,404 |
|
$ |
45,940 |
$ |
42,492 |
|
|
$ |
102,344 |
$ |
78,916 |
|
|
|
|
|
|
|
|
Net securities gains |
$ |
— |
|
$ |
— |
$ |
— |
|
|
$ |
— |
$ |
(2 |
) |
Merger and acquisition related expenses |
|
(60 |
) |
|
8,541 |
|
— |
|
|
|
8,481 |
|
— |
|
COVID-19 related |
|
— |
|
|
— |
|
62 |
|
|
|
— |
|
79 |
|
Branch consolidation |
|
— |
|
|
— |
|
(202 |
) |
|
|
— |
|
(104 |
) |
Core pre-tax
pre-provision income |
$ |
56,344 |
|
$ |
54,481 |
$ |
42,352 |
|
|
$ |
110,825 |
$ |
78,889 |
|
|
|
|
|
|
|
|
Net charge-offs |
$ |
8,665 |
|
$ |
1,173 |
$ |
1,528 |
|
|
$ |
9,838 |
$ |
2,662 |
|
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