NYSE$FCF

First Commonwealth Financial Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported earnings for the fourth quarter and full year 2019 and increased quarterly dividend by 10.0%.

First Commonwealth Financial Corporation reported a net income of $26.8 million, or $0.27 diluted earnings per share, for the quarter ended December 31, 2019. Total revenue grew by 6.6% from the prior year quarter, and the company completed its acquisition of 14 former Santander branches.

  • Total gross loans grew $85 million, or 5.6% (annualized), compared to the prior quarter.
  • Average noninterest bearing deposits grew $113 million, or 28.9% (annualized) compared to the prior quarter.
  • Net income was $26.8 million (or $0.27 diluted earnings per share), resulting in an ROA of 1.30% and an ROE of 10.13%.
  • Total revenue grew $5.7 million, or 6.6%, from the prior year quarter.

Headline financials

Total Revenue

$91.7M

Previous: $86M+6.6%
EPS (adj)

$0.27

Previous: $0.27+0.0%
Net Interest Margin (FTE)

3.7%

No prior period
Core Efficiency Ratio

57.2%

No prior period
Nonperforming Loans Ratio

0.5%

No prior period
Net Charge-Offs Ratio

0.2%

No prior period
Allowance for Credit Losses

0.8%

No prior period
Leverage Ratio

10.2%

No prior period
Tier I Capital Ratio

12.0%

No prior period
Total Capital Ratio

14.3%

No prior period
CET1 Capital Ratio

10.9%

No prior period
Capital Expenditures

$17.4M

Previous: $9.6M+81.1%
Free Cash Flow

$13.4M

Previous: $32.1M-58.2%
Net Income

$26.8M

Previous: $27M-0.7%
Operating Income

$33.7M

No prior period
Cash & Equivalents

$122M

Previous: $98.9M+23.2%
Total Assets

$8.31B

Previous: $7.83B+6.1%

Revenue & EPS history

First Commonwealth · Revenue · Quarterly

$91.7M

Q4 2019+6.6%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

First Commonwealth · $4.73M total across 3 segments · Q4 2019

  • Trust Income
    $2.1M
  • Gain on Mortgage Loans
    $1.66M
  • Gain on Other Loans/Assets
    $962K

Forward guidance

The company expects headwinds from the lower interest rate environment going into 2020 but the management has confidence in their team’s ability to continue to produce positive long-term performance for their shareholders.

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 Q4 2019

Historical avgQ4 2019

-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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