NYSE$FCF

First Commonwealth Financial Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

First Commonwealth's financial performance increased in Q2 2023, with notable growth in net income and earnings per share.

First Commonwealth Financial Corporation reported a strong second quarter in 2023, with net income of $42.8 million and diluted earnings per share of $0.42. The company saw increases in core pre-tax pre-provision net revenue and total loans, driven by commercial loan growth. Deposit levels also increased, and the company's asset quality remained solid.

  • Net income reached $42.8 million, with diluted earnings per share at $0.42, marking increases from both the previous quarter and the second quarter of 2022.
  • Core pre-tax pre-provision net revenue totaled $56.3 million, showing growth from the prior quarter and the same period last year.
  • Total loans increased by $148.1 million, driven by commercial loan growth, including a $44.9 million rise in Equipment Finance loans.
  • Average deposits increased by $433.5 million, influenced by the inclusion of acquired deposit balances from the Centric acquisition.

Headline financials

Total Revenue

$122M

Previous: $98.2M+24.6%
EPS (adj)

$0.42

Previous: $0.33+27.3%
Core Efficiency Ratio

52.8%

Previous: 55.9%-5.5%
Free Cash Flow

$42.8M

Previous: $30.8M+39.1%
Net Income

$42.8M

Previous: $30.8M+39.1%
Operating Income

$69.6M

Previous: $85.2M-18.3%
Gross Profit

$122M

Previous: $98.2M+24.6%
Cash & Equivalents

$449M

Previous: $300M+49.7%
Total Assets

$11.3B

Previous: $9.53B+18.8%

Revenue & EPS history

First Commonwealth · Revenue · Quarterly

$122M

Q2 2023+24.6%vs Q2 2022
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 anticipates ongoing pressures on funding costs due to the higher interest rate environment, but believes its granular core deposit base will enable effective management through market uncertainty.

Tailwinds

  • Granular core deposit base positions the company well to manage through market uncertainty.
  • Strategic growth initiatives are expected to continue driving company performance.
  • Core efficiency ratio of 52.8% reflects operational effectiveness.
  • Solid asset quality supports financial stability.
  • Continued commitment to improve the financial lives of neighbors and their businesses.

Headwinds

  • Higher interest rate environment is expected to continue pressuring funding costs.
  • Uptick in net charge-offs stemming from loans marked with the acquisition of Centric Bank.
  • Potential market uncertainty could impact financial performance.
  • Elevated hospitalization expenses increased noninterest expense.
  • Decrease in accumulated other comprehensive income (AOCI) resulting from the impact of higher interest rates.

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 2023

Historical avgQ2 2023

-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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