First Commonwealth Financial Corporation (NYSE: FCF) today
announced financial results for the fourth quarter and full year of
2022.
Financial Summary
(dollars in thousands, |
For the Three Months Ended |
|
For the Years Ended |
except per share data) |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reported
Results |
|
|
|
|
|
|
|
|
|
Net income |
$ |
35,733 |
|
|
$ |
33,968 |
|
|
$ |
34,776 |
|
|
$ |
128,181 |
|
|
$ |
138,257 |
|
Diluted earnings per
share |
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.37 |
|
|
$ |
1.37 |
|
|
$ |
1.44 |
|
Return on average assets |
|
1.47 |
% |
|
|
1.41 |
% |
|
|
1.45 |
% |
|
|
1.34 |
% |
|
|
1.47 |
% |
Return on average equity |
|
13.61 |
% |
|
|
12.67 |
% |
|
|
12.36 |
% |
|
|
11.99 |
% |
|
|
12.55 |
% |
|
|
|
|
|
|
|
|
|
|
Operating Results
(non-GAAP)(1) |
|
|
|
|
|
|
|
|
|
Core net income |
$ |
36,750 |
|
|
$ |
34,353 |
|
|
$ |
34,753 |
|
|
$ |
129,561 |
|
|
$ |
138,518 |
|
Core diluted earnings
per share |
$ |
0.39 |
|
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
1.38 |
|
|
$ |
1.45 |
|
Core pre-tax pre-provision net
revenue |
$ |
55,289 |
|
|
$ |
48,860 |
|
|
$ |
40,868 |
|
|
$ |
183,038 |
|
|
$ |
171,771 |
|
Provision expense |
$ |
9,120 |
|
|
$ |
5,923 |
|
|
$ |
(2,729 |
) |
|
$ |
21,106 |
|
|
$ |
(1,376 |
) |
Net charge-offs |
$ |
2,014 |
|
|
$ |
2,461 |
|
|
$ |
(1,064 |
) |
|
$ |
7,137 |
|
|
$ |
8,410 |
|
Reserve
build/(release)(2) |
$ |
6,813 |
|
|
$ |
2,490 |
|
|
$ |
(1,663 |
) |
|
$ |
10,384 |
|
|
$ |
(8,787 |
) |
Core return on average assets
(ROAA) |
|
1.51 |
% |
|
|
1.43 |
% |
|
|
1.45 |
% |
|
|
1.35 |
% |
|
|
1.47 |
% |
Core pre-tax pre-provision
ROAA |
|
2.28 |
% |
|
|
2.03 |
% |
|
|
1.71 |
% |
|
|
1.91 |
% |
|
|
1.83 |
% |
Return on average tangible
common equity |
|
19.77 |
% |
|
|
18.28 |
% |
|
|
17.56 |
% |
|
|
17.30 |
% |
|
|
17.95 |
% |
Core return on average
tangible common equity |
|
20.32 |
% |
|
|
18.48 |
% |
|
|
17.55 |
% |
|
|
17.49 |
% |
|
|
17.98 |
% |
Core efficiency ratio |
|
50.00 |
% |
|
|
54.06 |
% |
|
|
57.06 |
% |
|
|
54.59 |
% |
|
|
54.69 |
% |
Net interest margin (FTE) |
|
3.99 |
% |
|
|
3.76 |
% |
|
|
3.23 |
% |
|
|
3.58 |
% |
|
|
3.26 |
% |
(1) Core operating results are a non-GAAP measure used by
management to measure performance in operating the business that
management believes enhances investors' ability to better
understand the underlying business performance and trends related
to core business activities. A full reconciliation of non-GAAP
financial measures can be found at the end of the financial
statements which accompany this release.(2) Reserve
build/(release) represents the net change in the Company's
allowance for credit losses (ACL) from the prior
period.
Fourth Quarter 2022
Highlights
- Net income of $35.7 million and diluted
earnings per share totaled $0.38, an increase of $1.8 million, or
$0.02 per share from the previous quarter and an increase of $1.0
million, or $0.01 per share from the fourth quarter of 2021
- Record core pre-tax pre-provision net
revenue (PPNR)(1) totaled $55.3 million, an increase of $6.4
million from the previous quarter and an increase of $14.4 million
from the fourth quarter of 2021
- Total loans increased $291.3 million,
or 15.7% annualized, from the previous quarter, driven by
broad-based growth in nearly all commercial and consumer categories
- Average loans increased $229.6 million,
or 12.5% annualized, from the previous quarter
- Record net interest income (FTE) of
$88.3 million increased $5.7 million from the previous quarter and
$17.8 million from the fourth quarter of 2021
- Noninterest income of $24.3 million
decreased $1.6 million from the previous quarter due to a $1.6
million decrease in commercial swap fee income
- Noninterest expense (excluding $1.3
million of merger and COVID-19 related expenses) of $57.0 million
decreased $2.4 million from the previous quarter
- Average deposits decreased $75.2
million, or 3.7% annualized, compared to the prior quarter
- Total shareholders’ equity increased
$29.5 million from the previous quarter due to a $24.5 million
increase in retained earnings and a $4.6 million increase in
accumulated other comprehensive income (AOCI)
- Tangible book value per share grew
16.7% annualized compared to the prior quarter
- The Bank was named the #1 Small
Business Association (SBA) lender in the SBA’s designated
Pittsburgh District for the second consecutive year and ranked #2
overall in the state of Pennsylvania
Profitability
- Core return on average assets (ROAA)
improved eight basis points to 1.51% compared to the previous
quarter
- Core pre-tax pre-provision ROAA(1) for
the quarter ended December 31, 2022 was 2.28% as compared to 2.03%
in the prior quarter and 1.71% in the fourth quarter of 2021
- The net interest margin of 3.99%
increased 23 basis points from the prior quarter and increased 76
basis points from the fourth quarter of 2021
- The core efficiency ratio(1) of 50.00%
decreased 406 basis points from the previous quarter and decreased
706 basis points from the fourth quarter of 2021
Strong capital position
- Bank-level Tier 1 Capital ratio of
11.3%, which represents $261.5 million in excess capital above the
regulatory “well capitalized” requirement of 8.0%
- There were no shares repurchased during
the fourth quarter of 2022. The remaining repurchase capacity under
the current program was $5.9 million as of December 31, 2022
Asset quality
- The provision for credit losses was
$9.1 million, an increase of $3.2 million compared to the previous
quarter due primarily to additional reserves associated with the
$291.3 million increase in loans during the fourth quarter of
2022
- The allowance for credit losses as a
percentage of end-of-period loans was 1.35% compared to 1.31% in
the previous quarter
- Total criticized loans decreased $6.4
million from the previous quarter
- Net charge-offs on loans totaled $2.0
million, a decrease of $0.4 million from the previous quarter
- Net charge-offs as a percentage of
average loans outstanding (excluding PPP loans, annualized) were
0.11% in the fourth quarter of 2022 as compared to 0.13% in the
previous quarter
Full Year 2022 Highlights
Franchise Growth
- On August 30, 2022, the Company
announced its planned expansion into Central and Eastern
Pennsylvania with the acquisition of Centric Financial Corporation
(OTCPK: CFCX). The legal close of this transaction is expected to
be completed on January 31, 2023
- Total loans grew $863.2 million, or
12.7% compared to the prior year (excluding Paycheck Protection
Program “PPP” loans)
- Average deposits grew $190.1 million,
or 2.4% compared to the prior year, including $128.1 million, or
5.0%, in average noninterest-bearing deposits
- End of period deposits grew $23.0
million, or 0.3% compared to the prior year, including $11.7
million, or 0.4%, in average noninterest-bearing deposits
Earnings
- For the year ended December 31, 2022,
net income was $128.2 million, or $1.37 diluted earnings per share
- Core net income(1) was $129.6 million,
or $1.38 diluted earnings per share, compared to $138.5 million, or
$1.45 diluted earnings per share in the prior year
- Record core pre-tax pre-provision
income(1) of $183.0 million grew $11.3 million, or 6.6% from the
prior year, despite a $20.5 million decrease in PPP income
- Operating leverage was positive for the
year ended December 31, 2022
- Core revenue(1) grew $27.6 million, or
7.2%, from the prior year despite the aforementioned decrease in
PPP revenue
- Core noninterest expense(1) increased
$14.7 million, or 7.0%, from the prior year
Profitability
- The core efficiency ratio(1) improved
10 basis points to 54.59% compared to the prior year
- The return on average assets (ROAA) for
the year ended December 31, 2022 was 1.34%
- Core ROAA(1) for
the year ended December 31, 2022 was 1.35% as compared to 1.47% in
the prior year
- Core pre-tax
pre-provision ROAA(1) for the year ended December 31, 2022 was
1.91% as compared to 1.83% in the prior year
“Our results for the quarter were strong, resulting in a record
2.28% Core Pre-Tax, Pre-Provision ROAA and a healthy 1.51% Core
ROAA,” stated T. Michael Price, President and Chief Executive
Officer. “Loans grew by 15.7% annualized in the fourth
quarter, with broad-based production in all of our regions as well
as our commercial and consumer portfolios.” Price
continued, “As we look to the year ahead, we are excited about the
integration of Centric Bank into our franchise as well as the
opportunities that exist with an enhanced presence in their
markets. In addition, our de novo Equipment Finance
business is on pace to contribute meaningfully to our growth and
augment our commercial lending business. And our
ongoing investments in talent, technology and our regional business
model continue to position us well – all to the benefit of our
clients, employees, communities and shareholders."
Earnings
Net income for the fourth quarter of 2022 was $35.7 million, or
$0.38 per share, compared to $34.0 million, or $0.36 per share in
the third quarter of 2022 and $34.8 million, or $0.37 per share for
the fourth quarter of 2021.
Net income for the year ended December 31, 2022 was $128.2
million, or $1.37 per share, compared to $138.3 million, or $1.44
per share for the same period in 2021.
Net Interest Income and Net Interest Margin
Net interest income (FTE) of $88.3 million increased $5.7
million from the previous quarter and increased $17.8 million from
the prior year quarter. The increase from the previous
quarter was primarily due to a $7.9 million increase in income on
variable and adjustable rate loans, partially offset by a $3.0
million increase in deposit costs.
The net interest margin for the fourth quarter of 2022 was
3.99%, an increase of 23 basis points from the previous quarter and
an increase of 76 basis points from the fourth quarter of
2021. Loan yields increased 44 basis points from the
previous quarter primarily due to the aforementioned increase in
income on variable and adjustable rate loans, and, together with a
$229.6 million increase in average loans, more than offset a 15
basis point increase in the cost of deposits and a $162.9 million
increase in average short-term borrowings.
Total average deposits decreased $75.2 million in the fourth
quarter of 2022 as compared to the previous quarter. A
$68.0 million decrease in average interest-bearing demand and
savings deposits was partially offset by a $9.4 million increase in
time deposits.
Total end-of-period deposits decreased $72.2 million, or 3.5%
annualized, from the previous quarter.
Asset Quality
Provision expense in the fourth quarter of 2022 totaled $9.1
million as compared to $5.9 million in the previous
quarter. The increase in provision expense during the
quarter was primarily driven by strong loan growth that drove a
$4.6 million increase in the allowance for credit losses (ACL). The
ACL was also impacted by an increase of $3.7 million in reserves
due to various inputs such as the forecasted U.S. unemployment
rate, the Gross Domestic Product (GDP) forecast and changes in
estimated prepayment speeds.
Nonperforming loans totaled $35.5 million, a decrease of $0.2
million from the previous quarter and a decrease of $19.7 million
from the fourth quarter of 2021. Nonperforming loans
represented 0.46% of total loans (excluding PPP loans) as compared
to 0.49% and 0.81% for the periods ended September 30, 2022 and
December 31, 2021, respectively.
At December 31, 2022, criticized loans totaled $132.9 million, a
decrease of $6.4 million from the previous quarter.
During the fourth quarter of 2022, net charge-offs were $2.0
million as compared to net charge-offs of $2.5 million in the
previous quarter and ($1.1) million in the fourth quarter of
2021.
Net charge-offs as a percentage of average loans (excluding PPP,
annualized) were 0.11%, 0.13% and (0.06%) for the periods ended
December 31, 2022, September 30, 2022 and December 31, 2021,
respectively.
Noninterest Income and Noninterest Expense
Noninterest income totaled $24.3 million for the fourth quarter
of 2022, as compared to $25.9 million for the third quarter of 2022
and $26.1 million for the fourth quarter of 2021. The
$1.6 million decrease from the previous quarter was primarily due
to a $1.6 million decrease in commercial swap fee
income.
For the year ended December 31, 2022, noninterest income totaled
$98.7 million, a decrease of $8.0 million from the prior
year. The decrease from the prior year was due to an
$8.3 million decrease in gain on sale of Mortgage loans and a $2.0
million decrease in derivative mark-to-market, partially offset by
a $2.1 million increase in swap fee income and a $1.7 million
increase in service charges on deposit accounts.
Noninterest expense (excluding $1.3 million of merger, branch
consolidation, and COVID-19 related expenses) totaled $57.0 million
for the fourth quarter of 2022, as compared to $59.4 million for
the third quarter of 2022 and $55.5 million for the fourth quarter
of 2021. The $2.4 million decrease from the previous quarter was
primarily the result of a $0.9 million adjustment in the present
value of future BOLI obligations (which is included in salaries and
employee benefits) and a $0.6 million decrease in Pennsylvania
state shares tax as the result of tax credits from prior
periods.
The core efficiency ratio was 50.00% during the fourth quarter
of 2022 as compared to 54.06% in the previous quarter and 57.06% in
the fourth quarter of 2021.
For the year ended December 31, 2022, noninterest expense
(excluding $1.7 million of merger, branch consolidation and
COVID-19 related expenses) totaled $227.9 million, as compared to
$213.5 million in the prior year. The $14.4 million increase from
the prior year was primarily driven by a $6.5 million increase in
salaries and benefits, a $1.5 million increase in data processing
expense and a $1.5 million increase in occupancy
expense.
The core efficiency ratio was 54.59% for the year ended December
31, 2022 as compared to 54.69% in the previous year.
Full time equivalent staff was 1,424 at December 31, 2022, 1,422
at September 30, 2022, and 1,426 at December 31,
2021.
Dividends and Capital
First Commonwealth Financial Corporation declared a common stock
quarterly dividend of $0.12 per share, which represents a 4.3%
increase from the fourth quarter of 2021. The cash dividend is
payable on February 17, 2023 to shareholders of record as of
February 3, 2023. This dividend represents a 3.4% projected annual
yield utilizing the January 23, 2023 closing market price of
$14.06.
First Commonwealth’s capital ratios for Total, Tier I, Leverage
and Common Equity Tier I at December 31, 2022 were 14.4%, 12.0%,
10.2% and 11.1%, respectively. First Commonwealth’s current
capital levels exceed the fully phased-in Basel III capital
requirements issued by U.S. bank regulators.
Conference Call
First Commonwealth will host a quarterly conference call to
discuss its financial results for the fourth quarter and full year
2022 on Wednesday, January 25, 2023 at 2:00 PM (ET). The call can
be accessed by dialing (toll free) 1-888-330-3181 conference ID #
4651379 or through the company’s web page,
http://www.fcbanking.com/InvestorRelations. A replay of the call
will be available approximately one hour following the conclusion
of the conference by dialing 1-800-770-2030 and entering the
conference ID # 4651379. A link to the webcast replay will also be
accessible on the company’s webpage for 30 days.
About First Commonwealth Financial
Corporation
First Commonwealth Financial Corporation (NYSE: FCF),
headquartered in Indiana, Pennsylvania, is a financial services
Company with 119 community banking offices in 26 counties
throughout western and central Pennsylvania and throughout Ohio, as
well as business banking operations in Pittsburgh, Pennsylvania,
and Canton, Cleveland, Columbus and Cincinnati, Ohio. The Company
also operates mortgage offices in Wexford, Pennsylvania, as well as
Hudson, and Lewis Center, Ohio. First Commonwealth provides a full
range of commercial banking, consumer banking, mortgage, equipment
finance, wealth management and insurance products and services
through its subsidiaries First Commonwealth Bank and First
Commonwealth Insurance Agency. For more information about First
Commonwealth or to open an account today, please visit
www.fcbanking.com.
Forward-Looking Statements
Certain statements contained in this release that are not
historical facts may constitute “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and are intended to be covered by the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, notwithstanding that such statements are not
specifically identified as such. In addition, certain statements
may be contained in our future filings with the Securities and
Exchange Commission, in press releases, and in oral and written
statements made by us or with our approval that are not statements
of historical fact and constitute “forward-looking statements” as
well. These statements, which are based on certain assumptions and
describe our future plans, strategies and expectations, can
generally be identified by the use of words such as “may,” “will,”
“should,” “could,” “would,” “plan,” “believe,” “expect,”
“anticipate,” “intend,” “estimate” or words of similar meaning.
These forward-looking statements are subject to significant risks,
assumptions and uncertainties, including uncertainties regarding
the impact of the COVID-19 pandemic, and could be affected by many
factors, including, but not limited to: (1) the effects
of the COVID-19 pandemic on First Commonwealth and its
customers; (2) volatility and disruption in national and
international financial markets; (3) the effects of and changes in
trade and monetary and fiscal policies and laws, including the
interest rate policies of the Federal Reserve Board; (4) inflation,
interest rate, commodity price, securities market and monetary
fluctuations; (5) the effect of changes in laws and regulations
(including laws and regulations concerning taxes, banking,
securities and insurance) with which First Commonwealth or its
customers must comply; (6) the soundness of other financial
institutions; (7) political instability; (8) impairment of First
Commonwealth’s goodwill or other intangible assets; (9) acts of God
or of war or terrorism; (10) the timely development and acceptance
of new products and services and perceived overall value of these
products and services by users; (11) changes in consumer spending,
borrowings and savings habits; (12) changes in the financial
performance and/or condition of First Commonwealth’s borrowers;
(13) technological changes; (14) acquisitions and integration of
acquired businesses; (15) First Commonwealth’s ability to attract
and retain qualified employees; (16) changes in the competitive
environment in First Commonwealth’s markets and among banking
organizations and other financial service providers; (17) the
ability to increase market share and control expenses; (18) the
effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies, as well as the Public Company
Accounting Oversight Board, the Financial Accounting Standards
Board and other accounting standard setters; (19) the reliability
of First Commonwealth’s vendors, internal control systems or
information systems; (20) the costs and effects of legal and
regulatory developments, the resolution of legal proceedings or
regulatory or other governmental inquiries, the results of
regulatory examinations or reviews and the ability to obtain
required regulatory approvals; and (21) other risks and
uncertainties described in this report and in the other reports
that we file with the Securities and Exchange Commission, including
our most recent Annual Report on Form 10-K. Further, statements
about the potential effects of the COVID-19 pandemic on our
business, financial condition, liquidity and results of operations
may constitute forward-looking statements and are subject to the
risk that the actual effects may differ, possibly materially, from
what is reflected in those forward-looking statements due to
factors and future developments that are uncertain, unpredictable
and in many cases beyond our control, including the scope and
duration of the pandemic, actions taken by governmental authorities
in response to the pandemic, and the direct and indirect impact of
the pandemic on our customers, clients, third parties and
us.
In light of these risks, uncertainties and assumptions, you
should not place undue reliance on any forward-looking statements
in this release. We undertake no obligation to publicly update or
otherwise revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Media Relations:Jonathan E. LongwillVice
President / Communications and Media RelationsPhone:
724-463-6806E-mail: JLongwill@fcbanking.com
Investor Relations:Ryan M. ThomasVice President
/ Finance and Investor RelationsPhone: 724-463-1690E-mail:
RThomas1@fcbanking.com
FIRST
COMMONWEALTH FINANCIAL CORPORATION |
|
|
|
|
|
|
CONSOLIDATED FINANCIAL
DATA |
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
SUMMARY RESULTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
88,027 |
|
|
$ |
82,360 |
|
|
$ |
70,254 |
|
|
$ |
312,221 |
|
|
$ |
278,541 |
|
Provision for credit
losses |
|
9,120 |
|
|
|
5,923 |
|
|
|
(2,729 |
) |
|
|
21,106 |
|
|
|
(1,376 |
) |
Noninterest income |
|
24,309 |
|
|
|
25,914 |
|
|
|
26,071 |
|
|
|
98,708 |
|
|
|
106,757 |
|
Noninterest expense |
|
58,334 |
|
|
|
59,901 |
|
|
|
55,428 |
|
|
|
229,638 |
|
|
|
213,857 |
|
Net income |
|
35,733 |
|
|
|
33,968 |
|
|
|
34,776 |
|
|
|
128,181 |
|
|
|
138,257 |
|
Core net income(5) |
|
36,750 |
|
|
|
34,353 |
|
|
|
34,753 |
|
|
|
129,561 |
|
|
|
138,518 |
|
Earnings per common
share (diluted) |
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.37 |
|
|
$ |
1.37 |
|
|
$ |
1.44 |
|
Core earnings per
common share (diluted)(6) |
$ |
0.39 |
|
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
1.38 |
|
|
$ |
1.45 |
|
KEY FINANCIAL
RATIOS |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.47 |
% |
|
|
1.41 |
% |
|
|
1.45 |
% |
|
|
1.34 |
% |
|
|
1.47 |
% |
Core return on average
assets(7) |
|
1.51 |
% |
|
|
1.43 |
% |
|
|
1.45 |
% |
|
|
1.35 |
% |
|
|
1.47 |
% |
Return on average assets,
pre-provision, pre-tax |
|
2.22 |
% |
|
|
2.01 |
% |
|
|
1.71 |
% |
|
|
1.89 |
% |
|
|
1.82 |
% |
Core return on average assets,
pre-provision, pre-tax |
|
2.28 |
% |
|
|
2.03 |
% |
|
|
1.71 |
% |
|
|
1.91 |
% |
|
|
1.83 |
% |
Return on average
shareholders' equity |
|
13.61 |
% |
|
|
12.67 |
% |
|
|
12.36 |
% |
|
|
11.99 |
% |
|
|
12.55 |
% |
Return on average tangible
common equity(8) |
|
19.77 |
% |
|
|
18.28 |
% |
|
|
17.56 |
% |
|
|
17.30 |
% |
|
|
17.95 |
% |
Core return on average
tangible common equity(9) |
|
20.32 |
% |
|
|
18.48 |
% |
|
|
17.55 |
% |
|
|
17.49 |
% |
|
|
17.98 |
% |
Core efficiency
ratio(2)(10) |
|
50.00 |
% |
|
|
54.06 |
% |
|
|
57.06 |
% |
|
|
54.59 |
% |
|
|
54.69 |
% |
Net interest margin
(FTE)(1) |
|
3.99 |
% |
|
|
3.76 |
% |
|
|
3.23 |
% |
|
|
3.58 |
% |
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
11.27 |
|
|
$ |
10.95 |
|
|
$ |
11.77 |
|
|
|
|
|
Tangible book value per common
share(11) |
|
7.92 |
|
|
|
7.60 |
|
|
|
8.43 |
|
|
|
|
|
Market value per common
share |
|
13.97 |
|
|
|
12.84 |
|
|
|
16.09 |
|
|
|
|
|
Cash dividends declared per
common share |
|
0.120 |
|
|
|
0.120 |
|
|
|
0.115 |
|
|
|
0.475 |
|
|
|
0.455 |
|
ASSET QUALITY
RATIOS |
|
|
|
|
|
|
|
|
|
Nonperforming loans as a
percent of end-of-period loans and leases(3) |
|
0.46 |
% |
|
|
0.48 |
% |
|
|
0.80 |
% |
|
|
|
|
Nonperforming loans as a
percent of end-of-period loans and leases, excluding PPP
loans(3) |
|
0.46 |
% |
|
|
0.49 |
% |
|
|
0.81 |
% |
|
|
|
|
Nonperforming assets as a
percent of total assets(3) |
|
0.37 |
% |
|
|
0.38 |
% |
|
|
0.59 |
% |
|
|
|
|
Nonperforming assets as a
percent of total assets, excluding PPP loans(3) |
|
0.37 |
% |
|
|
0.38 |
% |
|
|
0.59 |
% |
|
|
|
|
Net charge-offs as a percent
of average loans and leases (annualized)(4) |
|
0.11 |
% |
|
|
0.13 |
% |
|
(0.06)% |
|
|
|
|
Net charge-offs as a percent
of average loans and leases, excluding PPP loans
(annualized)(4) |
|
0.11 |
% |
|
|
0.13 |
% |
|
(0.06)% |
|
|
|
|
Allowance for credit losses as
a percent of nonperforming loans(4) |
|
289.98 |
% |
|
|
269.23 |
% |
|
|
167.67 |
% |
|
|
|
|
Allowance for credit losses as
a percent of end-of-period loans and leases(4) |
|
1.35 |
% |
|
|
1.31 |
% |
|
|
1.35 |
% |
|
|
|
|
Allowance for credit losses as
a percent of end-of-period loans and leases, excluding PPP
loans(4) |
|
1.35 |
% |
|
|
1.31 |
% |
|
|
1.37 |
% |
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
Shareholders' equity as a
percent of total assets |
|
10.7 |
% |
|
|
10.7 |
% |
|
|
11.6 |
% |
|
|
|
|
Tangible common equity as a
percent of tangible assets(12) |
|
7.8 |
% |
|
|
7.7 |
% |
|
|
8.6 |
% |
|
|
|
|
Tangible common equity as a
percent of tangible assets, excluding PPP loans(12) |
|
7.8 |
% |
|
|
7.7 |
% |
|
|
8.7 |
% |
|
|
|
|
Leverage Ratio |
|
10.2 |
% |
|
|
10.1 |
% |
|
|
9.7 |
% |
|
|
|
|
Risk Based Capital - Tier
I |
|
12.0 |
% |
|
|
12.1 |
% |
|
|
12.2 |
% |
|
|
|
|
Risk Based Capital -
Total |
|
14.4 |
% |
|
|
14.5 |
% |
|
|
14.6 |
% |
|
|
|
|
Common Equity - Tier I |
|
11.1 |
% |
|
|
11.2 |
% |
|
|
11.3 |
% |
|
|
|
|
FIRST
COMMONWEALTH FINANCIAL CORPORATION |
|
|
|
|
CONSOLIDATED FINANCIAL
DATA |
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
|
2022 |
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
INCOME
STATEMENT |
|
|
|
|
|
|
Interest income |
$ |
96,281 |
|
$ |
85,700 |
$ |
73,530 |
|
|
$ |
329,953 |
|
$ |
293,838 |
|
Interest expense |
|
8,254 |
|
|
3,340 |
|
3,276 |
|
|
|
17,732 |
|
|
15,297 |
|
Net Interest
Income |
|
88,027 |
|
|
82,360 |
|
70,254 |
|
|
|
312,221 |
|
|
278,541 |
|
Provision for credit losses |
|
9,120 |
|
|
5,923 |
|
(2,729 |
) |
|
|
21,106 |
|
|
(1,376 |
) |
Net Interest Income
after Provision for Credit Losses |
|
78,907 |
|
|
76,437 |
|
72,983 |
|
|
|
291,115 |
|
|
279,917 |
|
Net securities gains |
|
— |
|
|
— |
|
— |
|
|
|
2 |
|
|
16 |
|
Trust income |
|
2,455 |
|
|
2,777 |
|
2,771 |
|
|
|
10,518 |
|
|
11,111 |
|
Service charges on deposit accounts |
|
4,946 |
|
|
5,194 |
|
4,857 |
|
|
|
19,641 |
|
|
17,984 |
|
Insurance and retail brokerage commissions |
|
2,051 |
|
|
2,048 |
|
2,134 |
|
|
|
8,857 |
|
|
8,502 |
|
Income from bank owned life insurance |
|
1,149 |
|
|
1,419 |
|
1,487 |
|
|
|
5,459 |
|
|
6,433 |
|
Gain on sale of mortgage loans |
|
948 |
|
|
1,485 |
|
1,940 |
|
|
|
5,276 |
|
|
13,555 |
|
Gain on sale of other loans and assets |
|
1,525 |
|
|
1,093 |
|
1,849 |
|
|
|
6,036 |
|
|
8,130 |
|
Card-related interchange income |
|
6,996 |
|
|
6,980 |
|
7,069 |
|
|
|
27,603 |
|
|
27,954 |
|
Derivative mark-to-market |
|
(27 |
) |
|
6 |
|
973 |
|
|
|
368 |
|
|
2,344 |
|
Swap fee income |
|
752 |
|
|
2,326 |
|
828 |
|
|
|
4,685 |
|
|
2,543 |
|
Other income |
|
3,514 |
|
|
2,586 |
|
2,163 |
|
|
|
10,263 |
|
|
8,185 |
|
Total Noninterest
Income |
|
24,309 |
|
|
25,914 |
|
26,071 |
|
|
|
98,708 |
|
|
106,757 |
|
Salaries and employee benefits |
|
31,664 |
|
|
32,486 |
|
31,422 |
|
|
|
126,031 |
|
|
119,506 |
|
Net occupancy |
|
4,451 |
|
|
4,629 |
|
3,972 |
|
|
|
18,037 |
|
|
16,586 |
|
Furniture and equipment |
|
3,990 |
|
|
4,005 |
|
3,776 |
|
|
|
15,582 |
|
|
15,642 |
|
Data processing |
|
3,543 |
|
|
3,721 |
|
2,933 |
|
|
|
13,922 |
|
|
12,373 |
|
Pennsylvania shares tax |
|
960 |
|
|
1,569 |
|
1,257 |
|
|
|
4,447 |
|
|
4,604 |
|
Advertising and promotion |
|
1,093 |
|
|
1,278 |
|
1,154 |
|
|
|
5,031 |
|
|
4,983 |
|
Intangible amortization |
|
726 |
|
|
746 |
|
900 |
|
|
|
3,196 |
|
|
3,497 |
|
Other professional fees and services |
|
1,272 |
|
|
1,204 |
|
1,351 |
|
|
|
4,894 |
|
|
4,501 |
|
FDIC insurance |
|
675 |
|
|
796 |
|
565 |
|
|
|
2,871 |
|
|
2,529 |
|
Litigation and operational losses |
|
847 |
|
|
758 |
|
700 |
|
|
|
2,834 |
|
|
2,324 |
|
Loss on sale or write-down of assets |
|
128 |
|
|
54 |
|
80 |
|
|
|
343 |
|
|
303 |
|
Merger and acquisition |
|
1,254 |
|
|
448 |
|
— |
|
|
|
1,702 |
|
|
— |
|
COVID-19 related |
|
33 |
|
|
39 |
|
92 |
|
|
|
151 |
|
|
449 |
|
Branch consolidation |
|
— |
|
|
— |
|
(121 |
) |
|
|
(104 |
) |
|
(103 |
) |
Other operating expenses |
|
7,698 |
|
|
8,168 |
|
7,347 |
|
|
|
30,701 |
|
|
26,663 |
|
Total Noninterest
Expense |
|
58,334 |
|
|
59,901 |
|
55,428 |
|
|
|
229,638 |
|
|
213,857 |
|
Income before Income
Taxes |
|
44,882 |
|
|
42,450 |
|
43,626 |
|
|
|
160,185 |
|
|
172,817 |
|
Income tax provision |
|
9,149 |
|
|
8,482 |
|
8,850 |
|
|
|
32,004 |
|
|
34,560 |
|
Net
Income |
$ |
35,733 |
|
$ |
33,968 |
$ |
34,776 |
|
|
$ |
128,181 |
|
$ |
138,257 |
|
|
|
|
|
|
|
|
Shares Outstanding at End of
Period |
|
93,376,314 |
|
|
93,377,064 |
|
94,233,152 |
|
|
|
93,376,314 |
|
|
94,233,152 |
|
Average Shares Outstanding
Assuming Dilution |
|
93,489,398 |
|
|
93,450,259 |
|
95,020,353 |
|
|
|
93,887,447 |
|
|
95,840,285 |
|
|
|
|
|
|
|
|
FIRST
COMMONWEALTH FINANCIAL CORPORATION |
|
|
|
CONSOLIDATED FINANCIAL
DATA |
|
|
|
|
|
Unaudited |
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
BALANCE SHEET (Period
End) |
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
124,254 |
|
|
$ |
106,153 |
|
|
$ |
84,738 |
|
Interest-bearing bank deposits |
|
29,990 |
|
|
|
74,619 |
|
|
|
310,634 |
|
Securities available for sale, at fair value |
|
789,075 |
|
|
|
802,871 |
|
|
|
1,054,218 |
|
Securities held to maturity, at amortized cost |
|
461,162 |
|
|
|
474,790 |
|
|
|
541,311 |
|
Loans held for sale |
|
11,869 |
|
|
|
13,811 |
|
|
|
18,583 |
|
|
|
|
|
|
|
Loans and leases |
|
7,642,143 |
|
|
|
7,348,917 |
|
|
|
6,839,230 |
|
Allowance for credit losses |
|
(102,906 |
) |
|
|
(96,093 |
) |
|
|
(92,522 |
) |
Net loans and leases |
|
7,539,237 |
|
|
|
7,252,824 |
|
|
|
6,746,708 |
|
|
|
|
|
|
|
Goodwill and other intangibles |
|
312,533 |
|
|
|
312,950 |
|
|
|
314,516 |
|
Other assets |
|
537,546 |
|
|
|
540,612 |
|
|
|
474,385 |
|
Total
Assets |
$ |
9,805,666 |
|
|
$ |
9,578,630 |
|
|
$ |
9,545,093 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
2,670,508 |
|
|
$ |
2,782,654 |
|
|
$ |
2,658,782 |
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
357,769 |
|
|
|
354,310 |
|
|
|
291,476 |
|
Savings deposits |
|
4,572,183 |
|
|
|
4,608,762 |
|
|
|
4,647,197 |
|
Time deposits |
|
405,009 |
|
|
|
331,923 |
|
|
|
385,043 |
|
Total interest-bearing deposits |
|
5,334,961 |
|
|
|
5,294,995 |
|
|
|
5,323,716 |
|
|
|
|
|
|
|
Total deposits |
|
8,005,469 |
|
|
|
8,077,649 |
|
|
|
7,982,498 |
|
|
|
|
|
|
|
Short-term borrowings |
|
372,694 |
|
|
|
97,932 |
|
|
|
138,315 |
|
Long-term borrowings |
|
181,224 |
|
|
|
181,489 |
|
|
|
182,269 |
|
Total borrowings |
|
553,918 |
|
|
|
279,421 |
|
|
|
320,584 |
|
|
|
|
|
|
|
Other liabilities |
|
194,205 |
|
|
|
198,985 |
|
|
|
132,639 |
|
Shareholders' equity |
|
1,052,074 |
|
|
|
1,022,575 |
|
|
|
1,109,372 |
|
Total Liabilities and
Shareholders' Equity |
$ |
9,805,666 |
|
|
$ |
9,578,630 |
|
|
$ |
9,545,093 |
|
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in
thousands) |
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
Yield/ |
September 30, |
Yield/ |
December 31, |
Yield/ |
|
December 31, |
Yield/ |
December 31, |
Yield/ |
|
|
2022 |
Rate |
|
2022 |
Rate |
|
2021 |
Rate |
|
|
2022 |
Rate |
|
2021 |
Rate |
NET
INTEREST MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, excluding PPP loans (FTE)(1)(3) |
$ |
7,486,822 |
4.76 |
% |
$ |
7,254,594 |
4.30 |
% |
$ |
6,680,346 |
3.73 |
% |
|
$ |
7,151,998 |
4.20 |
% |
$ |
6,464,446 |
3.80 |
% |
PPP Loans |
|
4,530 |
2.89 |
% |
|
7,196 |
14.61 |
% |
|
111,544 |
14.44 |
% |
|
|
20,626 |
12.91 |
% |
|
312,746 |
7.41 |
% |
Securities and interest-bearing bank deposits (FTE) (1) |
|
1,286,561 |
2.08 |
% |
|
1,446,315 |
1.92 |
% |
|
1,878,755 |
1.46 |
% |
|
|
1,567,266 |
1.78 |
% |
|
1,809,417 |
1.46 |
% |
Total Interest-Earning Assets (FTE)
(1) |
|
8,777,913 |
4.36 |
% |
|
8,708,105 |
3.92 |
% |
|
8,670,645 |
3.38 |
% |
|
|
8,739,890 |
3.79 |
% |
|
8,586,609 |
3.43 |
% |
Noninterest-earning assets |
|
863,049 |
|
|
825,989 |
|
|
815,872 |
|
|
|
835,343 |
|
|
807,455 |
|
Total
Assets |
$ |
9,640,962 |
|
$ |
9,534,094 |
|
$ |
9,486,517 |
|
|
$ |
9,575,233 |
|
$ |
9,394,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand and savings deposits |
$ |
4,884,236 |
0.29 |
% |
$ |
4,952,279 |
0.07 |
% |
$ |
4,882,318 |
0.06 |
% |
|
$ |
4,970,835 |
0.11 |
% |
$ |
4,812,004 |
0.07 |
% |
Time deposits |
|
345,749 |
0.57 |
% |
|
336,346 |
0.24 |
% |
|
395,444 |
0.31 |
% |
|
|
352,622 |
0.34 |
% |
|
449,452 |
0.49 |
% |
Short-term borrowings |
|
264,987 |
2.86 |
% |
|
102,073 |
0.19 |
% |
|
126,695 |
0.07 |
% |
|
|
144,834 |
1.38 |
% |
|
119,801 |
0.08 |
% |
Long-term borrowings |
|
181,333 |
4.96 |
% |
|
181,596 |
4.94 |
% |
|
182,371 |
4.91 |
% |
|
|
181,724 |
4.96 |
% |
|
200,961 |
4.70 |
% |
Total Interest-Bearing Liabilities |
|
5,676,305 |
0.58 |
% |
|
5,572,294 |
0.24 |
% |
|
5,586,828 |
0.23 |
% |
|
|
5,650,015 |
0.31 |
% |
|
5,582,218 |
0.27 |
% |
Noninterest-bearing deposits |
|
2,729,716 |
|
|
2,746,258 |
|
|
2,652,812 |
|
|
|
2,708,580 |
|
|
2,580,460 |
|
Other liabilities |
|
193,685 |
|
|
152,208 |
|
|
130,373 |
|
|
|
147,871 |
|
|
130,007 |
|
Shareholders' equity |
|
1,041,256 |
|
|
1,063,334 |
|
|
1,116,504 |
|
|
|
1,068,767 |
|
|
1,101,379 |
|
Total Noninterest-Bearing Funding Sources |
|
3,964,657 |
|
|
3,961,800 |
|
|
3,899,689 |
|
|
|
3,925,218 |
|
|
3,811,846 |
|
Total Liabilities and
Shareholders' Equity |
$ |
9,640,962 |
|
$ |
9,534,094 |
|
$ |
9,486,517 |
|
|
$ |
9,575,233 |
|
$ |
9,394,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
(FTE) (annualized)(1) |
|
3.99 |
% |
|
3.76 |
% |
|
3.23 |
% |
|
|
3.58 |
% |
|
3.26 |
% |
FIRST
COMMONWEALTH FINANCIAL CORPORATION |
|
CONSOLIDATED FINANCIAL
DATA |
|
|
|
Unaudited |
|
|
|
(dollars in thousands) |
|
|
|
|
December 31, |
September 30, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Loan and Lease
Portfolio Detail |
|
|
|
Commercial Loan and Lease Portfolio: |
|
|
|
Commercial, financial, agricultural and other |
$ |
1,127,778 |
|
$ |
1,120,499 |
|
$ |
1,102,154 |
|
Paycheck Protection Program |
|
4,254 |
|
|
4,930 |
|
|
71,298 |
|
Commercial real estate |
|
2,425,012 |
|
|
2,393,276 |
|
|
2,251,097 |
|
Equipment Finance loans and leases |
|
79,674 |
|
|
43,777 |
|
|
— |
|
Real estate construction |
|
395,439 |
|
|
326,539 |
|
|
382,764 |
|
Total Commercial |
|
4,032,157 |
|
|
3,889,021 |
|
|
3,807,313 |
|
|
|
|
|
Consumer Loan Portfolio: |
|
|
|
Closed-end mortgages |
|
1,682,092 |
|
|
1,631,655 |
|
|
1,368,816 |
|
Home equity lines of credit |
|
512,577 |
|
|
522,249 |
|
|
551,434 |
|
Real estate construction |
|
117,662 |
|
|
96,151 |
|
|
111,692 |
|
Total Real Estate - Consumer |
|
2,312,331 |
|
|
2,250,055 |
|
|
2,031,942 |
|
|
|
|
|
Auto & RV loans |
|
1,210,451 |
|
|
1,120,838 |
|
|
901,280 |
|
Direct installment |
|
31,938 |
|
|
33,528 |
|
|
40,937 |
|
Personal lines of credit |
|
51,514 |
|
|
51,514 |
|
|
52,809 |
|
Student loans |
|
3,752 |
|
|
3,961 |
|
|
4,949 |
|
Total Other Consumer |
|
1,297,655 |
|
|
1,209,841 |
|
|
999,975 |
|
Total Consumer Portfolio |
|
3,609,986 |
|
|
3,459,896 |
|
|
3,031,917 |
|
Total Portfolio Loans and Leases |
|
7,642,143 |
|
|
7,348,917 |
|
|
6,839,230 |
|
Loans held for sale |
|
11,869 |
|
|
13,811 |
|
|
18,583 |
|
Total Loans and Leases |
$ |
7,654,012 |
|
$ |
7,362,728 |
|
$ |
6,857,813 |
|
|
|
|
|
|
|
|
|
|
December 31, |
September 30, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
ASSET QUALITY
DETAIL |
|
|
|
Nonperforming
Loans: |
|
|
|
Loans on nonaccrual basis |
$ |
20,193 |
|
$ |
20,495 |
|
$ |
34,926 |
|
Loans held for sale on a
nonaccrual basis |
|
— |
|
|
— |
|
|
— |
|
Troubled debt restructured
loans on nonaccrual basis |
|
8,852 |
|
|
8,981 |
|
|
13,134 |
|
Troubled debt restructured
loans on accrual basis |
|
6,442 |
|
|
6,216 |
|
|
7,120 |
|
Total
Nonperforming Loans |
$ |
35,487 |
|
$ |
35,692 |
|
$ |
55,180 |
|
Other real estate owned
("OREO") |
|
534 |
|
|
322 |
|
|
642 |
|
Repossessions ("Repos") |
|
454 |
|
|
600 |
|
|
397 |
|
Total
Nonperforming Assets |
$ |
36,475 |
|
$ |
36,614 |
|
$ |
56,219 |
|
Loans past due in excess of 90
days and still accruing |
|
1,991 |
|
|
1,548 |
|
|
1,606 |
|
Classified loans |
|
44,447 |
|
|
45,656 |
|
|
77,563 |
|
Criticized loans |
|
132,863 |
|
|
139,258 |
|
|
198,126 |
|
|
|
|
|
Nonperforming assets as a
percentage of total loans and leases, plus OREO and Repos(4) |
|
0.48 |
% |
|
0.50 |
% |
|
0.82 |
% |
Allowance for credit
losses |
$ |
102,906 |
|
$ |
96,093 |
|
$ |
92,522 |
|
|
|
|
|
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands) |
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Net Charge-offs
(Recoveries): |
|
|
|
|
|
|
Commercial, financial, agricultural and other |
$ |
444 |
|
$ |
698 |
|
$ |
(1,633 |
) |
|
$ |
1,967 |
|
$ |
4,590 |
|
Real estate construction |
|
— |
|
|
(9 |
) |
|
(11 |
) |
|
|
(9 |
) |
|
(146 |
) |
Commercial real estate |
|
182 |
|
|
1,003 |
|
|
(5 |
) |
|
|
1,718 |
|
|
1,524 |
|
Residential real estate |
|
32 |
|
|
36 |
|
|
20 |
|
|
|
152 |
|
|
(159 |
) |
Loans to individuals |
|
1,356 |
|
|
733 |
|
|
565 |
|
|
|
3,309 |
|
|
2,601 |
|
Net
Charge-offs |
$ |
2,014 |
|
$ |
2,461 |
|
$ |
(1,064 |
) |
|
$ |
7,137 |
|
$ |
8,410 |
|
|
|
|
|
|
|
|
Net charge-offs as a
percentage of average loans outstanding (annualized)(4) |
|
0.11 |
% |
|
0.13 |
% |
(0.06)% |
|
|
0.10 |
% |
|
0.12 |
% |
Net charge-offs as a
percentage of average loans outstanding, excluding PPP loans
(annualized)(4) |
|
0.11 |
% |
|
0.13 |
% |
(0.06)% |
|
|
0.10 |
% |
|
0.13 |
% |
Provision for credit losses as
a percentage of net charge-offs |
|
452.83 |
% |
|
240.67 |
% |
|
256.48 |
% |
|
|
295.73 |
% |
(16.36)% |
Provision for credit
losses |
$ |
9,120 |
|
$ |
5,923 |
|
$ |
(2,729 |
) |
|
$ |
21,106 |
|
$ |
(1,376 |
) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
Note: Management believes that it is standard practice in the
banking industry to present these non-GAAP measures. These measures
provide useful information to management and investors by allowing
them to make peer comparisons. |
|
|
|
|
|
|
|
(1) Net interest
income has been computed on a fully taxable equivalent basis
("FTE") using the federal income tax statutory rate of 21%. |
(2) Core
efficiency ratio excludes from total revenue the impact of
derivative mark-to-market and excludes from "total noninterest
expense" the amortization of intangibles, unfunded commitment
expense and any other unusual items deemed by management to not be
related to normal operations, such as merger, acquisition and
severance costs. |
(3) Includes held
for sale loans. |
|
|
(4) Excludes held
for sale loans. |
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
Interest income |
$ |
96,281 |
$ |
85,700 |
$ |
73,530 |
|
$ |
329,953 |
$ |
293,838 |
Adjustment to fully taxable
equivalent basis (1) |
|
290 |
|
261 |
|
266 |
|
|
1,049 |
|
1,100 |
Interest income adjusted to
fully taxable equivalent basis (non-GAAP) |
|
96,571 |
|
85,961 |
|
73,796 |
|
|
331,002 |
|
294,938 |
Interest expense |
|
8,254 |
|
3,340 |
|
3,276 |
|
|
17,732 |
|
15,297 |
Net interest income, (FTE)
(1) |
$ |
88,317 |
$ |
82,621 |
$ |
70,520 |
|
$ |
313,270 |
$ |
279,641 |
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands, except
per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Net
Income |
$ |
35,733 |
|
$ |
33,968 |
|
$ |
34,776 |
|
|
$ |
128,181 |
|
$ |
138,257 |
|
Intangible amortization |
|
726 |
|
|
746 |
|
|
900 |
|
|
|
3,196 |
|
|
3,497 |
|
Tax benefit of amortization of intangibles |
|
(152 |
) |
|
(157 |
) |
|
(189 |
) |
|
|
(671 |
) |
|
(734 |
) |
Net Income, adjusted for tax affected amortization of
intangibles |
$ |
36,307 |
|
$ |
34,557 |
|
$ |
35,487 |
|
|
$ |
130,706 |
|
$ |
141,020 |
|
|
|
|
|
|
|
|
Average Tangible
Equity: |
|
|
|
|
|
|
Total shareholders' equity |
$ |
1,041,256 |
|
$ |
1,063,334 |
|
$ |
1,116,504 |
|
|
$ |
1,068,767 |
|
$ |
1,101,379 |
|
Less: intangible assets |
|
312,634 |
|
|
313,336 |
|
|
314,860 |
|
|
|
313,451 |
|
|
315,589 |
|
Tangible Equity |
|
728,622 |
|
|
749,998 |
|
|
801,644 |
|
|
|
755,316 |
|
|
785,790 |
|
Less: preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Tangible Common Equity |
$ |
728,622 |
|
$ |
749,998 |
|
$ |
801,644 |
|
|
$ |
755,316 |
|
$ |
785,790 |
|
|
|
|
|
|
|
|
(8)Return on Average Tangible Common
Equity |
|
19.77 |
% |
|
18.28 |
% |
|
17.56 |
% |
|
|
17.30 |
% |
|
17.95 |
% |
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Core Net
Income: |
|
|
|
|
|
|
Total Net Income |
$ |
35,733 |
|
$ |
33,968 |
|
$ |
34,776 |
|
|
$ |
128,181 |
|
$ |
138,257 |
|
Net securities gains |
|
— |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
(16 |
) |
Tax benefit of net securities gains |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
3 |
|
Merger & acquisition related expenses |
|
1,254 |
|
|
448 |
|
|
— |
|
|
|
1,702 |
|
|
— |
|
Tax benefit of merger & acquisition related expenses |
|
(263 |
) |
|
(94 |
) |
|
— |
|
|
|
(357 |
) |
|
— |
|
COVID-19 related |
|
33 |
|
|
39 |
|
|
92 |
|
|
|
151 |
|
|
449 |
|
Tax benefit of COVID 19 related |
|
(7 |
) |
|
(8 |
) |
|
(19 |
) |
|
|
(32 |
) |
|
(94 |
) |
Branch consolidation related |
|
— |
|
|
— |
|
|
(121 |
) |
|
|
(104 |
) |
|
(103 |
) |
Tax benefit of bank consolidation related expenses |
|
— |
|
|
— |
|
|
25 |
|
|
|
22 |
|
|
22 |
|
(5) Core net income |
$ |
36,750 |
|
$ |
34,353 |
|
$ |
34,753 |
|
|
$ |
129,561 |
|
$ |
138,518 |
|
Average Shares Outstanding Assuming Dilution |
|
93,489,398 |
|
|
93,450,259 |
|
|
95,020,353 |
|
|
|
93,887,447 |
|
|
95,840,285 |
|
(6) Core Earnings per common share
(diluted) |
$ |
0.39 |
|
$ |
0.37 |
|
$ |
0.37 |
|
|
$ |
1.38 |
|
$ |
1.45 |
|
|
|
|
|
|
|
|
Intangible amortization |
|
726 |
|
|
746 |
|
|
900 |
|
|
|
3,196 |
|
|
3,497 |
|
Tax benefit of amortization of intangibles |
|
(152 |
) |
|
(157 |
) |
|
(189 |
) |
|
|
(671 |
) |
|
(734 |
) |
Core Net Income, adjusted for tax affected
amortization of intangibles |
$ |
37,324 |
|
$ |
34,942 |
|
$ |
35,464 |
|
|
$ |
132,086 |
|
$ |
141,281 |
|
|
|
|
|
|
|
|
(9) Core Return on Average Tangible
Common Equity |
|
20.32 |
% |
|
18.48 |
% |
|
17.55 |
% |
|
|
17.49 |
% |
|
17.98 |
% |
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands,
except per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Core Return on Average
Assets: |
|
|
|
|
|
|
Total Net Income |
$ |
35,733 |
|
$ |
33,968 |
|
$ |
34,776 |
|
|
$ |
128,181 |
|
$ |
138,257 |
|
Total Average Assets |
|
9,640,962 |
|
|
9,534,094 |
|
|
9,486,517 |
|
|
|
9,575,233 |
|
|
9,394,064 |
|
Return on Average Assets |
|
1.47 |
% |
|
1.41 |
% |
|
1.45 |
% |
|
|
1.34 |
% |
|
1.47 |
% |
|
|
|
|
|
|
|
Core Net Income (5) |
$ |
36,750 |
|
$ |
34,353 |
|
$ |
34,753 |
|
|
$ |
129,561 |
|
$ |
138,518 |
|
Total Average Assets |
|
9,640,962 |
|
|
9,534,094 |
|
|
9,486,517 |
|
|
|
9,575,233 |
|
|
9,394,064 |
|
(7) Core Return on Average
Assets |
|
1.51 |
% |
|
1.43 |
% |
|
1.45 |
% |
|
|
1.35 |
% |
|
1.47 |
% |
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Core Efficiency
Ratio: |
|
|
|
|
|
|
Total Noninterest Expense |
$ |
58,334 |
|
$ |
59,901 |
|
$ |
55,428 |
|
|
$ |
229,638 |
|
$ |
213,857 |
|
Adjustments to Noninterest Expense: |
|
|
|
|
|
|
Intangible amortization |
|
726 |
|
|
746 |
|
|
900 |
|
|
|
3,196 |
|
|
3,497 |
|
Merger and acquisition related |
|
1,254 |
|
|
448 |
|
|
— |
|
|
|
1,702 |
|
|
— |
|
COVID-19 related |
|
33 |
|
|
39 |
|
|
92 |
|
|
|
151 |
|
|
449 |
|
Branch consolidation related |
|
— |
|
|
— |
|
|
(121 |
) |
|
|
(104 |
) |
|
(103 |
) |
Noninterest Expense - Core |
$ |
56,321 |
|
$ |
58,668 |
|
$ |
54,557 |
|
|
$ |
224,693 |
|
$ |
210,014 |
|
|
|
|
|
|
|
|
Net interest income, (FTE) |
$ |
88,317 |
|
$ |
82,621 |
|
$ |
70,520 |
|
|
$ |
313,270 |
|
$ |
279,641 |
|
Total noninterest income |
|
24,309 |
|
|
25,914 |
|
|
26,071 |
|
|
|
98,708 |
|
|
106,757 |
|
Net securities gains |
|
— |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
(16 |
) |
Total Revenue |
|
112,626 |
|
|
108,535 |
|
|
96,591 |
|
|
|
411,976 |
|
|
386,382 |
|
|
|
|
|
|
|
|
Adjustments to Revenue: |
|
|
|
|
|
|
Derivative mark-to-market |
|
(27 |
) |
|
6 |
|
|
973 |
|
|
|
368 |
|
|
2,344 |
|
Total Revenue - Core |
$ |
112,653 |
|
$ |
108,529 |
|
$ |
95,618 |
|
|
$ |
411,608 |
|
$ |
384,038 |
|
|
|
|
|
|
|
|
(10) Core Efficiency
Ratio |
|
50.00 |
% |
|
54.06 |
% |
|
57.06 |
% |
|
|
54.59 |
% |
|
54.69 |
% |
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
|
|
|
|
December 31, |
September 30, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Tangible
Equity: |
|
|
|
Total shareholders' equity |
$ |
1,052,074 |
|
$ |
1,022,575 |
|
$ |
1,109,372 |
|
Less: intangible assets |
|
312,533 |
|
|
312,950 |
|
|
314,516 |
|
Tangible Equity |
|
739,541 |
|
|
709,625 |
|
|
794,856 |
|
Less: preferred stock |
|
— |
|
|
— |
|
|
— |
|
Tangible Common Equity |
$ |
739,541 |
|
$ |
709,625 |
|
$ |
794,856 |
|
|
|
|
|
Tangible
Assets: |
|
|
|
Total assets |
$ |
9,805,666 |
|
$ |
9,578,630 |
|
$ |
9,545,093 |
|
Less: intangible assets |
|
312,533 |
|
|
312,950 |
|
|
314,516 |
|
Tangible Assets |
$ |
9,493,133 |
|
$ |
9,265,680 |
|
$ |
9,230,577 |
|
Less: PPP loans |
|
4,254 |
|
|
4,930 |
|
|
71,298 |
|
Tangible Assets, excluding PPP loans |
$ |
9,488,879 |
|
$ |
9,260,750 |
|
$ |
9,159,279 |
|
|
|
|
|
(12)Tangible Common Equity as a percentage
of Tangible Assets |
|
7.79 |
% |
|
7.66 |
% |
|
8.61 |
% |
(12)Tangible Common Equity as a percentage
of Tangible Assets, excluding PPP loans |
|
7.79 |
% |
|
7.66 |
% |
|
8.68 |
% |
|
|
|
|
Shares Outstanding at End of Period |
|
93,376,314 |
|
|
93,377,064 |
|
|
94,233,152 |
|
(11)Tangible Book Value Per Common
Share |
$ |
7.92 |
|
$ |
7.60 |
|
$ |
8.43 |
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
2022 |
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Pre-tax pre-provision
income: |
|
|
|
|
|
|
Net interest income |
$ |
88,027 |
$ |
82,360 |
$ |
70,254 |
|
|
$ |
312,221 |
|
$ |
278,541 |
|
Noninterest income |
|
24,309 |
|
25,914 |
|
26,071 |
|
|
|
98,708 |
|
|
106,757 |
|
Noninterest expense |
|
58,334 |
|
59,901 |
|
55,428 |
|
|
|
229,638 |
|
|
213,857 |
|
Pre-tax pre-provision income |
$ |
54,002 |
$ |
48,373 |
$ |
40,897 |
|
|
$ |
181,291 |
|
$ |
171,441 |
|
|
|
|
|
|
|
|
Net securities gains |
$ |
— |
$ |
— |
$ |
— |
|
|
$ |
(2 |
) |
$ |
(16 |
) |
Merger and acquisition related expenses |
|
1,254 |
|
448 |
|
0 |
|
|
|
1,702 |
|
|
0 |
|
COVID-19 related |
|
33 |
|
39 |
|
92 |
|
|
|
151 |
|
|
449 |
|
Branch consolidation |
|
— |
|
— |
|
(121 |
) |
|
|
(104 |
) |
|
(103 |
) |
Core pre-tax
pre-provision income |
$ |
55,289 |
$ |
48,860 |
$ |
40,868 |
|
|
$ |
183,038 |
|
$ |
171,771 |
|
|
|
|
|
|
|
|
Net charge-offs |
$ |
2,014 |
$ |
2,461 |
$ |
(1,064 |
) |
|
$ |
7,137 |
|
$ |
8,410 |
|
FIRST COMMONWEALTH
FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL
DATA |
Unaudited |
(dollars in thousands) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP
MEASURES |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Core Net Interest
Margin: |
|
|
|
|
|
|
Net Interest Income (FTE) |
$ |
88,317 |
|
$ |
82,621 |
|
$ |
70,520 |
|
|
$ |
313,270 |
|
$ |
279,641 |
|
Less: Income from PPP Loans |
|
33 |
|
|
265 |
|
|
4,059 |
|
|
|
2,663 |
|
|
23,184 |
|
Less: Income from Excess Cash |
|
302 |
|
|
538 |
|
|
100 |
|
|
|
1,660 |
|
|
390 |
|
Core Net Interest
Income (FTE) |
$ |
87,982 |
|
$ |
81,818 |
|
$ |
66,361 |
|
|
$ |
308,947 |
|
$ |
256,067 |
|
|
|
|
|
|
|
|
Average Interest-Earning
Assets |
$ |
8,777,913 |
|
$ |
8,708,105 |
|
$ |
8,670,645 |
|
|
$ |
8,739,890 |
|
$ |
8,586,609 |
|
Less: PPP Loans |
|
4,530 |
|
|
7,196 |
|
|
111,544 |
|
|
|
20,626 |
|
|
312,746 |
|
Less: Excess Cash |
|
27,091 |
|
|
99,707 |
|
|
241,426 |
|
|
|
181,568 |
|
|
309,626 |
|
Core Average
Interest-Earning Assets |
$ |
8,746,292 |
|
$ |
8,601,202 |
|
$ |
8,317,675 |
|
|
$ |
8,537,696 |
|
$ |
7,964,237 |
|
|
|
|
|
|
|
|
Core Net Interest
Margin (Non-GAAP) |
|
3.99 |
% |
|
3.77 |
% |
|
3.17 |
% |
|
|
3.62 |
% |
|
3.22 |
% |
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