NYSE$FCF

First Commonwealth Financial Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

First Commonwealth's financial performance increased in Q2 2022, with net income and diluted earnings per share rising compared to the previous quarter and the same period last year.

First Commonwealth Financial Corporation reported a net income of $30.8 million and diluted earnings per share of $0.33 for Q2 2022. The company experienced growth in core pre-tax pre-provision net revenue and positive operating leverage, driven by loan growth and an increase in net interest income.

  • Net income reached $30.8 million, with diluted earnings per share at $0.33, up from both the prior quarter and Q2 2021.
  • Core pre-tax pre-provision net revenue totaled $42.4 million, showing an increase from the previous quarter.
  • Total loans (excluding PPP loans) grew by $186.0 million, or 10.8% annualized, from the previous quarter.
  • Net interest income (FTE) increased to $73.9 million, driven by higher yields on variable and adjustable-rate loans.

Headline financials

Total Revenue

$98.2M

Previous: $94.3M+4.1%
EPS (adj)

$0.33

Previous: $0.31+6.5%
Net Interest Margin (FTE)

3.4%

No prior period
Core Efficiency Ratio

55.9%

Previous: 53.2%+5.0%
Free Cash Flow

$30.8M

Previous: $29.6M+3.8%
Net Income

$30.8M

Previous: $29.6M+3.8%
Operating Income

$85.2M

Previous: $83M+2.6%
Gross Profit

$98.2M

Previous: $94.3M+4.1%
Cash & Equivalents

$300M

Previous: $284M+5.4%
Total Assets

$9.53B

Previous: $9.4B+1.3%

Revenue & EPS history

First Commonwealth · Revenue · Quarterly

$98.2M

Q2 2022+4.1%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
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

First Commonwealth aims to maintain positive operating leverage throughout 2022, despite potential revenue challenges from a slowdown in mortgage banking income. The company's asset-sensitive balance sheet and deposit franchise are expected to benefit from the increasing interest rate environment. The company believes it is well-positioned to navigate a possible recession.

Tailwinds

  • Expected benefit from rising interest rate environment due to asset-sensitive balance sheet.
  • Stable funding sourced from deposit franchise.
  • Lower-risk, more diversified loan portfolio.
  • Enhanced credit administration function.
  • Commitment to achieving positive operating leverage in 2022.

Headwinds

  • Potential revenue headwinds from slowing mortgage banking income.
  • Uncertainties regarding the impact of the COVID-19 pandemic.
  • Volatility and disruption in national and international financial markets.
  • Inflation, interest rate, commodity price, securities market and monetary fluctuations.
  • Potential challenges of a recessionary environment.

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 2022

Historical avgQ2 2022

-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