NYSE$FCF

First Commonwealth Financial Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Announced first quarter earnings and increased quarterly dividend.

First Commonwealth Financial Corporation reported a strong first quarter with net income of $39.8 million, driven by positive operating leverage and improved asset quality trends. The company also increased its quarterly dividend by 4.5%.

  • Net income reached $39.8 million, with diluted earnings per share at $0.41, marking an increase from the previous quarter.
  • Pre-tax pre-provision net revenue totaled $44.9 million, showing growth compared to both the previous quarter and the first quarter of 2020.
  • The company demonstrated positive operating leverage with core revenue growth and a decrease in core noninterest expense.
  • Asset quality improved, reflected in a decrease in the provision for credit losses and a reduction in nonaccrual loans.

Headline financials

Total Revenue

$96.8M

Previous: $87M+11.3%
EPS (adj)

$0.41

Previous: $0.05+720.0%
Core Efficiency Ratio

53.2%

Previous: 58.2%-8.6%
Free Cash Flow

$39.8M

Previous: $4.73M+741.3%
Net Income

$39.8M

Previous: $4.73M+741.3%
Operating Income

$84.3M

Previous: $66.8M+26.1%
Gross Profit

$96.8M

Previous: $87M+11.3%
Cash & Equivalents

$505M

Previous: $134M+276.1%
Total Assets

$9.42B

Previous: $8.52B+10.6%

Revenue & EPS history

First Commonwealth · Revenue · Quarterly

$96.8M

Q1 2021+11.3%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

First Commonwealth · $7.9M total across 3 segments · Q2 2021

  • Gain on Mortgage Loans
    $3.08M
  • Trust Income
    $2.71M
  • Gain on Other Loans/Assets
    $2.11M

Forward guidance

While no specific forward guidance was provided, the CEO expressed optimism about the company's trajectory, citing positive asset quality trends, growth in consumer loans, and building commercial pipelines.

Tailwinds

  • Asset quality trends are positive, reflected in the reserve release.
  • Consumer loans are growing, indicating strong demand.
  • Commercial pipelines have started to build, suggesting future growth opportunities.
  • Fee generating businesses had another solid quarter, contributing to overall profitability.
  • First Commonwealth Bank recognized as one of the World's Best Banks for the third consecutive year.

Headwinds

  • The report does not explicitly mention any negatives in forward guidance.
  • Interest rate environment may pose challenges to net interest margin.
  • Competition in the financial services industry remains intense.
  • Potential for changes in laws and regulations could impact operations.
  • Uncertainties related to the COVID-19 pandemic could affect future performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.6%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+1.8%

Avg return

30 days after

49%

33 / 67 earnings

Positive

+13.6%

Q1 2010

Best reaction

-16.5%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-1.0%+1.3%
Q4 2025-0.7%+3.2%-1.0%
Q3 2025-5.1%-5.7%-0.9%
Q1 2025+1.6%+3.8%+2.7%
Q4 2024-3.9%-2.6%-2.3%
Q3 2024-1.2%-3.6%+11.1%
Q2 2024+4.1%+11.8%-1.7%
Q1 2024+3.4%+2.0%+2.3%
Q4 2023-6.9%-10.0%-13.4%
Q3 2023-4.2%-0.6%+10.4%
Q2 2023+2.0%+2.5%-7.8%
Q1 2023+2.5%+5.2%+8.6%
Q4 2022-8.2%+0.1%+13.1%
Q3 2022-1.7%+3.1%+5.1%
Q2 2022+3.1%+3.5%+2.9%
Q1 2022-4.0%-6.5%-3.5%
Q4 2021-3.4%-0.2%-5.7%
Q3 2021-0.3%+5.2%+10.9%
Q2 2021-1.5%-1.8%-1.1%
Q1 2021+0.3%+1.0%+5.9%
Q4 2020-7.1%-6.8%+9.5%
Q3 2020-6.5%-4.3%+14.7%
Q2 2020+6.3%+1.3%+8.1%
Q1 2020+4.7%-6.2%-9.8%
Q4 2019-2.5%-2.2%-11.4%
Q3 2019+4.3%+2.9%+2.3%
Q2 2019+3.5%+4.8%-4.0%
Q1 2019-0.7%+1.4%-3.3%
Q4 2018+1.8%+1.9%+4.8%
Q3 2018-16.5%-10.7%-4.7%
Q2 2018+3.2%+6.0%+2.7%
Q1 2018+2.1%+2.3%+5.3%
Q4 2017-1.5%-1.8%-6.2%
Q3 2017+3.0%+1.8%+1.5%
Q2 2017-1.7%-1.1%-3.1%
Q1 2017+2.6%-1.6%-4.1%
Q4 2016+3.8%+1.3%+1.4%
Q3 2016+2.1%+1.8%+25.6%
Q2 2016+1.8%+1.3%+5.2%
Q1 2016+1.4%
Q4 2015+4.2%
Q3 2015+1.4%
Q2 2015-0.3%
Q1 2015+3.9%
Q4 2014-7.0%
Q3 2014+0.0%
Q2 2014+0.7%
Q1 2014+4.1%
Q4 2013+0.1%
Q3 2013+8.8%
Q2 2013-7.8%
Q1 2013+1.6%
Q4 2012-5.4%
Q3 2012-3.7%
Q2 2012-1.6%
Q1 2011-0.9%
Q1 2012+1.3%
Q4 2009-2.0%
Q4 2011-2.0%
Q4 2010-2.0%
Q3 2011-6.5%
Q2 2011-10.9%
Q3 2009+0.3%
Q3 2010+0.3%
Q2 2010-4.2%
Q2 2009-4.2%
Q1 2010+13.6%

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