NYSE$FCF

First Commonwealth Financial Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced second quarter 2021 earnings.

First Commonwealth Financial Corporation reported a net income of $29.6 million and diluted earnings per share of $0.31 for the second quarter of 2021. The company experienced loan growth, an increase in net interest income, and a decrease in noninterest expense.

  • Net income of $29.6 million and diluted earnings per share totaled $0.31, an increase of $5.8 million, or $0.07 per share from the second quarter of 2020
  • Core pre-tax pre-provision net revenue totaled $42.9 million, an increase of $6.8 million from the second quarter of 2020.
  • Portfolio loans (excluding Paycheck Protection Program (PPP) loans) increased $189.7 million, or 12.1% annualized from the previous quarter.
  • The core efficiency ratio of 53.21% improved 352 basis points from the second quarter of 2020 and was relatively unchanged from the previous quarter

Headline financials

Total Revenue

$94.3M

Previous: $88.5M+6.5%
EPS (adj)

$0.31

Previous: $0.24+29.2%
Core Efficiency Ratio

53.2%

No prior period
Leverage Ratio

9.6%

Previous: 9.3%+3.2%
Free Cash Flow

$29.6M

Previous: $23.9M+24.2%
Net Income

$29.6M

Previous: $23.9M+24.2%
Operating Income

$83M

Previous: $70.9M+17.0%
Gross Profit

$94.3M

Previous: $88.5M+6.5%
Cash & Equivalents

$284M

Previous: $458M-37.9%
Total Assets

$9.4B

Previous: $9.36B+0.4%

Revenue & EPS history

First Commonwealth · Revenue · Quarterly

$94.3M

Q2 2021+6.5%vs Q2 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

The CEO expressed satisfaction with the second quarter results, highlighting loan growth and commitment to operating leverage despite net interest margin compression. The company aims to continue controlling expenses while investing in future growth, including entering the equipment finance business.

Tailwinds

  • Loan growth accelerated in multiple categories.
  • Year-to-date annualized loan growth is within the mid-single-digit long-term target.
  • Commitment to achieving positive operating leverage.
  • Continued track record of controlling expenses.
  • Entry into the equipment finance business to diversify earnings.

Headwinds

  • Revenue headwinds from net interest margin compression.
  • Decrease from the previous quarter was primarily due to a $2.4 million decrease in fees and interest on PPP loans
  • The provision for credit losses was $5.4 million, an increase of $9.8 million compared to the previous quarter when the provision for credit losses was ($4.4) million
  • The $1.2 million decrease from the previous quarter was primarily due to a $2.0 million decrease in gain on sale of mortgage loans due to an increase in new mortgage originations being retained in the Bank's loan portfolio and a $1.7 million decrease in the derivative mark-to-market adjustment on interest rate swaps as a result of changes in fair value due to movement in bond spreads, swap rates and counterparty credit risk, which negatively impacted noninterest income.
  • Net charge-offs in the second quarter of 2021 were negatively impacted by a $3.6 million charge-off related to an individual commercial borrower.

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 2021

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro