NYSE$FCF

First Commonwealth Financial Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced second quarter 2020 earnings.

First Commonwealth Financial Corporation reported a net income of $23.9 million, or $0.24 per share, for the second quarter of 2020. The company's performance was driven by an increase in average interest-earning assets and improved mortgage gain on sale.

  • Net income was $23.9 million, with diluted earnings per share at $0.24, up from the previous quarter.
  • Provision for loan losses decreased by $24.1 million compared to the previous quarter, totaling $6.9 million.
  • Pre-tax pre-provision net revenue was $36.1 million.
  • Period-end loans increased by $612.8 million from the previous quarter, including $570.9 million in PPP loans.

Headline financials

Total Revenue

$88.5M

Previous: $89M-0.6%
EPS (adj)

$0.24

Previous: $0.28-14.3%
Leverage Ratio

9.3%

No prior period
Free Cash Flow

$23.9M

Previous: $27.3M-12.6%
Net Income

$23.9M

Previous: $27.3M-12.6%
Operating Income

$70.9M

Previous: $66.4M+6.8%
Gross Profit

$88.5M

Previous: $89M-0.6%
Cash & Equivalents

$458M

Previous: $96.3M+375.4%
Total Assets

$9.36B

Previous: $8.07B+16.0%

Revenue & EPS history

First Commonwealth · Revenue · Quarterly

$88.5M

Q2 2020-0.6%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
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

In light of the rapidly changing operating environment and uncertain economic outlook, First Commonwealth has implemented Project THRIVE with the express goal of emerging on the other side of this crisis stronger than ever.

Tailwinds

  • Growing our business
  • Maintaining adequate capital
  • Protecting against further NIM compression
  • Reducing operating expenses
  • Targeting a 20% reduction in retail locations by December 31, 2020

Headwinds

  • Rapidly changing operating environment
  • Uncertain economic outlook
  • Potential for further NIM compression
  • Need to reduce operating expenses
  • Economic contraction as a result of the COVID-19 pandemic and the impact of such contraction on First Commonwealth and its customers

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 Q2 2020

Historical avgQ2 2020

-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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