(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Item 2.02 | Results of Operations and Financial Condition |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits |
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||||||||
By: | /s/ James R. Reske | |||||||||||||
Name: | James R. Reske | |||||||||||||
Title: | Executive Vice President, Chief Financial Officer and Treasurer |
(dollars in thousands, | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
except per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Reported Results | |||||||||||||||||||||||||||||
Net income | $33,968 | $30,754 | $34,092 | $92,448 | $103,481 | ||||||||||||||||||||||||
Diluted earnings per share | $0.36 | $0.33 | $0.36 | $0.98 | $1.08 | ||||||||||||||||||||||||
Return on average assets | 1.41 | % | 1.28 | % | 1.42 | % | 1.29 | % | 1.48 | % | |||||||||||||||||||
Return on average equity | 12.67 | % | 11.60 | % | 12.14 | % | 11.47 | % | 12.62 | % | |||||||||||||||||||
Operating Results (non-GAAP)(1) | |||||||||||||||||||||||||||||
Core net income | $34,353 | $30,643 | $34,131 | $92,811 | $103,764 | ||||||||||||||||||||||||
Core diluted earnings per share | $0.37 | $0.33 | $0.36 | $0.99 | $1.08 | ||||||||||||||||||||||||
Core pre-tax pre-provision net revenue | $48,860 | $42,352 | $42,913 | $127,749 | $130,903 | ||||||||||||||||||||||||
Provision expense | $5,923 | $4,099 | $330 | $11,986 | $1,353 | ||||||||||||||||||||||||
Net charge-offs | $2,461 | $1,528 | $2,277 | $5,123 | $9,474 | ||||||||||||||||||||||||
Reserve build/(release)(2) | $2,490 | $2,415 | ($2,853) | $3,571 | ($7,124) | ||||||||||||||||||||||||
Core return on average assets (ROAA) | 1.43 | % | 1.28 | % | 1.43 | % | 1.30 | % | 1.48 | % | |||||||||||||||||||
Core pre-tax pre-provision ROAA | 2.03 | % | 1.77 | % | 1.79 | % | 1.79 | % | 1.87 | % | |||||||||||||||||||
Return on average tangible common equity | 18.28 | % | 16.81 | % | 17.28 | % | 16.51 | % | 18.08 | % | |||||||||||||||||||
Core return on average tangible common equity | 18.48 | % | 16.75 | % | 17.30 | % | 16.58 | % | 18.13 | % | |||||||||||||||||||
Core efficiency ratio | 54.06 | % | 55.87 | % | 55.27 | % | 56.32 | % | 53.90 | % | |||||||||||||||||||
Net interest margin (FTE) | 3.76 | % | 3.38 | % | 3.23 | % | 3.45 | % | 3.27 | % | |||||||||||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
SUMMARY RESULTS OF OPERATIONS | |||||||||||||||||||||||||||||
Net interest income | $ | 82,360 | $ | 73,662 | $ | 70,645 | $ | 224,194 | $ | 208,287 | |||||||||||||||||||
Provision for credit losses | 5,923 | 4,099 | 330 | 11,986 | 1,353 | ||||||||||||||||||||||||
Noninterest income | 25,914 | 24,509 | 27,245 | 74,399 | 80,686 | ||||||||||||||||||||||||
Noninterest expense | 59,901 | 55,679 | 55,027 | 171,304 | 158,429 | ||||||||||||||||||||||||
Net income | 33,968 | 30,754 | 34,092 | 92,448 | 103,481 | ||||||||||||||||||||||||
Core net income (5) | 34,353 | 30,643 | 34,131 | 92,811 | 103,764 | ||||||||||||||||||||||||
Earnings per common share (diluted) | $ | 0.36 | $ | 0.33 | $ | 0.36 | $ | 0.98 | $ | 1.08 | |||||||||||||||||||
Core earnings per common share (diluted) (6) | $ | 0.37 | $ | 0.33 | $ | 0.36 | $ | 0.99 | $ | 1.08 | |||||||||||||||||||
KEY FINANCIAL RATIOS | |||||||||||||||||||||||||||||
Return on average assets | 1.41 | % | 1.28 | % | 1.42 | % | 1.29 | % | 1.48 | % | |||||||||||||||||||
Core return on average assets (7) | 1.43 | % | 1.28 | % | 1.43 | % | 1.30 | % | 1.48 | % | |||||||||||||||||||
Return on average assets, pre-provision, pre-tax | 2.01 | % | 1.78 | % | 1.79 | % | 1.78 | % | 1.86 | % | |||||||||||||||||||
Core return on average assets, pre-provision, pre-tax | 2.03 | % | 1.77 | % | 1.79 | % | 1.79 | % | 1.87 | % | |||||||||||||||||||
Return on average shareholders' equity | 12.67 | % | 11.60 | % | 12.14 | % | 11.47 | % | 12.62 | % | |||||||||||||||||||
Return on average tangible common equity (8) | 18.28 | % | 16.81 | % | 17.28 | % | 16.51 | % | 18.08 | % | |||||||||||||||||||
Core return on average tangible common equity (9) | 18.48 | % | 16.75 | % | 17.30 | % | 16.58 | % | 18.13 | % | |||||||||||||||||||
Core efficiency ratio (2)(10) | 54.06 | % | 55.87 | % | 55.27 | % | 56.32 | % | 53.90 | % | |||||||||||||||||||
Net interest margin (FTE) (1) | 3.76 | % | 3.38 | % | 3.23 | % | 3.45 | % | 3.27 | % | |||||||||||||||||||
Book value per common share | $ | 10.95 | $ | 11.20 | $ | 11.69 | |||||||||||||||||||||||
Tangible book value per common share (11) | 7.60 | 7.85 | 8.38 | ||||||||||||||||||||||||||
Market value per common share | 12.84 | 13.42 | 13.63 | ||||||||||||||||||||||||||
Cash dividends declared per common share | 0.120 | 0.120 | 0.115 | 0.355 | 0.340 | ||||||||||||||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||||||||||||
Nonperforming loans as a percent of end-of-period loans and leases(3) | 0.48 | % | 0.50 | % | 0.56 | % | |||||||||||||||||||||||
Nonperforming loans as a percent of end-of-period loans and leases, excluding PPP loans (3) | 0.49 | % | 0.50 | % | 0.58 | % | |||||||||||||||||||||||
Nonperforming assets as a percent of total assets (3) | 0.38 | % | 0.38 | % | 0.41 | % | |||||||||||||||||||||||
Nonperforming assets as a percent of total assets, excluding PPP loans (3) | 0.38 | % | 0.38 | % | 0.42 | % | |||||||||||||||||||||||
Net charge-offs as a percent of average loans and leases (annualized) (4) | 0.13 | % | 0.09 | % | 0.13 | % | |||||||||||||||||||||||
Net charge-offs as a percent of average loans and leases,, excluding PPP loans (annualized) (4) | 0.13 | % | 0.09 | % | 0.14 | % | |||||||||||||||||||||||
Allowance for credit losses as a percent of nonperforming loans (4) | 269.23 | % | 262.25 | % | 247.30 | % | |||||||||||||||||||||||
Allowance for credit losses as a percent of end-of-period loans and leases (4) | 1.31 | % | 1.31 | % | 1.40 | % | |||||||||||||||||||||||
Allowance for credit losses as a percent of end-of-period loans and leases, excluding PPP loans (4) | 1.31 | % | 1.32 | % | 1.43 | % | |||||||||||||||||||||||
CAPITAL RATIOS | |||||||||||||||||||||||||||||
Shareholders' equity as a percent of total assets | 10.7 | % | 11.0 | % | 11.7 | % | |||||||||||||||||||||||
Tangible common equity as a percent of tangible assets (12) | 7.7 | % | 8.0 | % | 8.7 | % | |||||||||||||||||||||||
Tangible common equity as a percent of tangible assets, excluding PPP loans (12) | 7.7 | % | 8.0 | % | 8.9 | % | |||||||||||||||||||||||
Leverage Ratio | 10.1 | % | 9.8 | % | 9.6 | % | |||||||||||||||||||||||
Risk Based Capital - Tier I | 12.1 | % | 12.2 | % | 12.4 | % | |||||||||||||||||||||||
Risk Based Capital - Total | 14.5 | % | 14.6 | % | 15.0 | % | |||||||||||||||||||||||
Common Equity - Tier I | 11.2 | % | 11.2 | % | 11.5 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||||||||||||||
CONSOLIDATED FINANCIAL DATA | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
INCOME STATEMENT | ||||||||||||||||||||
Interest income | $ | 85,700 | $ | 76,728 | $ | 74,196 | $ | 233,672 | $ | 220,308 | ||||||||||
Interest expense | 3,340 | 3,066 | 3,551 | 9,478 | 12,021 | |||||||||||||||
Net Interest Income | 82,360 | 73,662 | 70,645 | 224,194 | 208,287 | |||||||||||||||
Provision for credit losses | 5,923 | 4,099 | 330 | 11,986 | 1,353 | |||||||||||||||
Net Interest Income after Provision for Credit Losses | 76,437 | 69,563 | 70,315 | 212,208 | 206,934 | |||||||||||||||
Net securities gains | — | — | — | 2 | 16 | |||||||||||||||
Trust income | 2,777 | 2,573 | 3,118 | 8,063 | 8,340 | |||||||||||||||
Service charges on deposit accounts | 5,194 | 4,886 | 4,770 | 14,695 | 13,127 | |||||||||||||||
Insurance and retail brokerage commissions | 2,048 | 2,486 | 2,218 | 6,806 | 6,368 | |||||||||||||||
Income from bank owned life insurance | 1,419 | 1,383 | 1,486 | 4,310 | 4,946 | |||||||||||||||
Gain on sale of mortgage loans | 1,485 | 1,561 | 3,485 | 4,328 | 11,615 | |||||||||||||||
Gain on sale of other loans and assets | 1,093 | 1,099 | 2,480 | 4,511 | 6,281 | |||||||||||||||
Card-related interchange income | 6,980 | 7,137 | 7,052 | 20,607 | 20,885 | |||||||||||||||
Derivative mark-to-market | 6 | 42 | 218 | 395 | 1,371 | |||||||||||||||
Swap fee income | 2,326 | 1,154 | 317 | 3,933 | 1,715 | |||||||||||||||
Other income | 2,586 | 2,188 | 2,101 | 6,749 | 6,022 | |||||||||||||||
Total Noninterest Income | 25,914 | 24,509 | 27,245 | 74,399 | 80,686 | |||||||||||||||
Salaries and employee benefits | 32,486 | 30,949 | 31,066 | 94,367 | 88,084 | |||||||||||||||
Net occupancy | 4,629 | 4,170 | 3,960 | 13,586 | 12,614 | |||||||||||||||
Furniture and equipment | 4,005 | 3,857 | 4,052 | 11,592 | 11,866 | |||||||||||||||
Data processing | 3,721 | 3,470 | 3,196 | 10,379 | 9,440 | |||||||||||||||
Pennsylvania shares tax | 1,569 | 913 | 1,257 | 3,487 | 3,347 | |||||||||||||||
Advertising and promotion | 1,278 | 1,434 | 1,150 | 3,938 | 3,829 | |||||||||||||||
Intangible amortization | 746 | 862 | 868 | 2,470 | 2,597 | |||||||||||||||
Other professional fees and services | 1,204 | 1,197 | 1,308 | 3,622 | 3,150 | |||||||||||||||
FDIC insurance | 796 | 702 | 830 | 2,196 | 1,964 | |||||||||||||||
Litigation and operational losses | 758 | 629 | 589 | 1,987 | 1,624 | |||||||||||||||
Loss on sale or write-down of assets | 54 | 86 | 171 | 215 | 223 | |||||||||||||||
Merger and acquisition | 448 | — | — | 448 | — | |||||||||||||||
COVID-19 related | 39 | 62 | 50 | 118 | 357 | |||||||||||||||
Branch consolidation | — | (202) | — | (104) | 18 | |||||||||||||||
Other operating expenses | 8,168 | 7,550 | 6,530 | 23,003 | 19,316 | |||||||||||||||
Total Noninterest Expense | 59,901 | 55,679 | 55,027 | 171,304 | 158,429 | |||||||||||||||
Income before Income Taxes | 42,450 | 38,393 | 42,533 | 115,303 | 129,191 | |||||||||||||||
Income tax provision | 8,482 | 7,639 | 8,441 | 22,855 | 25,710 | |||||||||||||||
Net Income | $ | 33,968 | $ | 30,754 | $ | 34,092 | $ | 92,448 | $ | 103,481 | ||||||||||
Shares Outstanding at End of Period | 93,377,064 | 93,705,120 | 95,209,685 | 93,377,064 | 95,209,685 | |||||||||||||||
Average Shares Outstanding Assuming Dilution | 93,450,259 | 94,245,770 | 95,892,304 | 93,994,158 | 96,130,602 | |||||||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||||||||
Unaudited | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
September 30, | June 30, | September 30, | |||||||||||||||
2022 | 2022 | 2021 | |||||||||||||||
BALANCE SHEET (Period End) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 106,153 | $ | 120,267 | $ | 94,579 | |||||||||||
Interest-bearing bank deposits | 74,619 | 179,533 | 240,095 | ||||||||||||||
Securities available for sale, at fair value | 802,871 | 877,287 | 1,137,675 | ||||||||||||||
Securities held to maturity, at amortized cost | 474,790 | 492,229 | 548,057 | ||||||||||||||
Loans held for sale | 13,811 | 12,876 | 19,925 | ||||||||||||||
Loans and leases | 7,348,917 | 7,119,754 | 6,732,580 | ||||||||||||||
Allowance for credit losses | (96,093) | (93,603) | (94,185) | ||||||||||||||
Net loans and leases | 7,252,824 | 7,026,151 | 6,638,395 | ||||||||||||||
Goodwill and other intangibles | 312,950 | 313,449 | 315,092 | ||||||||||||||
Other assets | 540,612 | 504,635 | 484,036 | ||||||||||||||
Total Assets | $ | 9,578,630 | $ | 9,526,427 | $ | 9,477,854 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||
Noninterest-bearing demand deposits | $ | 2,782,654 | $ | 2,726,242 | $ | 2,656,229 | |||||||||||
Interest-bearing demand deposits | 354,310 | 273,360 | 265,782 | ||||||||||||||
Savings deposits | 4,608,762 | 4,708,868 | 4,609,393 | ||||||||||||||
Time deposits | 331,923 | 345,075 | 405,081 | ||||||||||||||
Total interest-bearing deposits | 5,294,995 | 5,327,303 | 5,280,256 | ||||||||||||||
Total deposits | 8,077,649 | 8,053,545 | 7,936,485 | ||||||||||||||
Short-term borrowings | 97,932 | 88,923 | 117,754 | ||||||||||||||
Long-term borrowings | 181,489 | 181,752 | 182,519 | ||||||||||||||
Total borrowings | 279,421 | 270,675 | 300,273 | ||||||||||||||
Other liabilities | 198,985 | 153,049 | 128,241 | ||||||||||||||
Shareholders' equity | 1,022,575 | 1,049,158 | 1,112,855 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 9,578,630 | $ | 9,526,427 | $ | 9,477,854 |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||
CONSOLIDATED FINANCIAL DATA | ||
Unaudited | ||
(dollars in thousands) |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | Yield/ | June 30, | Yield/ | September 30, | Yield/ | September 30, | Yield/ | September 30, | Yield/ | ||||||||||||||||||||||||||
2022 | Rate | 2022 | Rate | 2021 | Rate | 2022 | Rate | 2021 | Rate | ||||||||||||||||||||||||||
NET INTEREST MARGIN | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Loans and leases, excluding PPP loans (FTE)(1)(3) | $ | 7,254,594 | 4.30 | % | $ | 7,015,886 | 3.95 | % | $ | 6,538,477 | 3.75 | % | $ | 7,039,163 | 4.00 | % | $ | 6,391,688 | 3.82 | % | |||||||||||||||
PPP Loans | 7,196 | 14.61 | % | 20,290 | 12.02 | % | 225,262 | 10.05 | % | 26,050 | 13.50 | % | 380,551 | 6.72 | % | ||||||||||||||||||||
Securities and interest-bearing bank deposits (FTE) (1) | 1,446,315 | 1.92 | % | 1,734,126 | 1.68 | % | 1,937,385 | 1.43 | % | 1,661,862 | 1.70 | % | 1,786,050 | 1.46 | % | ||||||||||||||||||||
Total Interest-Earning Assets (FTE) (1) | 8,708,105 | 3.92 | % | 8,770,302 | 3.52 | % | 8,701,124 | 3.39 | % | 8,727,075 | 3.59 | % | 8,558,289 | 3.45 | % | ||||||||||||||||||||
Noninterest-earning assets | 825,989 | 830,167 | 801,377 | 826,007 | 804,619 | ||||||||||||||||||||||||||||||
Total Assets | $ | 9,534,094 | $ | 9,600,469 | $ | 9,502,501 | $ | 9,553,082 | $ | 9,362,908 | |||||||||||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||||||||
Interest-bearing demand and savings deposits | $ | 4,952,279 | 0.07 | % | $ | 5,067,692 | 0.05 | % | $ | 4,899,328 | 0.07 | % | $ | 5,000,018 | 0.05 | % | $ | 4,788,309 | 0.08 | % | |||||||||||||||
Time deposits | 336,346 | 0.24 | % | 354,403 | 0.26 | % | 417,274 | 0.36 | % | 354,938 | 0.26 | % | 467,653 | 0.54 | % | ||||||||||||||||||||
Short-term borrowings | 102,073 | 0.19 | % | 95,561 | 0.08 | % | 118,112 | 0.06 | % | 104,343 | 0.11 | % | 117,478 | 0.09 | % | ||||||||||||||||||||
Long-term borrowings | 181,596 | 4.94 | % | 181,859 | 4.96 | % | 182,623 | 4.92 | % | 181,856 | 4.96 | % | 207,225 | 4.64 | % | ||||||||||||||||||||
Total Interest-Bearing Liabilities | 5,572,294 | 0.24 | % | 5,699,515 | 0.22 | % | 5,617,337 | 0.25 | % | 5,641,155 | 0.22 | % | 5,580,665 | 0.29 | % | ||||||||||||||||||||
Noninterest-bearing deposits | 2,746,258 | 2,711,458 | 2,647,089 | 2,701,458 | 2,556,078 | ||||||||||||||||||||||||||||||
Other liabilities | 152,208 | 125,646 | 124,286 | 132,431 | 129,883 | ||||||||||||||||||||||||||||||
Shareholders' equity | 1,063,334 | 1,063,850 | 1,113,789 | 1,078,038 | 1,096,282 | ||||||||||||||||||||||||||||||
Total Noninterest-Bearing Funding Sources | 3,961,800 | 3,900,954 | 3,885,164 | 3,911,927 | 3,782,243 | ||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 9,534,094 | $ | 9,600,469 | $ | 9,502,501 | $ | 9,553,082 | $ | 9,362,908 | |||||||||||||||||||||||||
Net Interest Margin (FTE) (annualized)(1) | 3.76 | % | 3.38 | % | 3.23 | % | 3.45 | % | 3.27 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||
Unaudited | |||||||||||
(dollars in thousands) | |||||||||||
September 30, | June 30, | September 30, | |||||||||
2022 | 2022 | 2021 | |||||||||
Loan and Lease Portfolio Detail | |||||||||||
Commercial Loan and Lease Portfolio: | |||||||||||
Commercial, financial, agricultural and other | $ | 1,120,499 | $ | 1,136,593 | $ | 1,072,489 | |||||
Paycheck Protection Program | 4,930 | 12,928 | 152,102 | ||||||||
Commercial real estate | 2,393,276 | 2,319,094 | 2,231,890 | ||||||||
Equipment Finance loans and leases | 43,777 | 21,062 | — | ||||||||
Real estate construction | 326,539 | 292,400 | 318,120 | ||||||||
Total Commercial | 3,889,021 | 3,782,077 | 3,774,601 | ||||||||
Consumer Loan Portfolio: | |||||||||||
Closed-end mortgages | 1,631,655 | 1,567,561 | 1,311,052 | ||||||||
Home equity lines of credit | 522,249 | 532,640 | 564,323 | ||||||||
Real estate construction | 96,151 | 100,592 | 105,896 | ||||||||
Total Real Estate - Consumer | 2,250,055 | 2,200,793 | 1,981,271 | ||||||||
Auto & RV loans | 1,120,838 | 1,047,104 | 886,367 | ||||||||
Direct installment | 33,528 | 35,245 | 32,509 | ||||||||
Personal lines of credit | 51,514 | 50,249 | 52,667 | ||||||||
Student loans | 3,961 | 4,286 | 5,165 | ||||||||
Total Other Consumer | 1,209,841 | 1,136,884 | 976,708 | ||||||||
Total Consumer Portfolio | 3,459,896 | 3,337,677 | 2,957,979 | ||||||||
Total Portfolio Loans and Leases | 7,348,917 | 7,119,754 | 6,732,580 | ||||||||
Loans held for sale | 13,811 | 12,876 | 19,925 | ||||||||
Total Loans and Leases | $ | 7,362,728 | $ | 7,132,630 | $ | 6,752,505 | |||||
September 30, | June 30, | September 30, | |||||||||
2022 | 2022 | 2021 | |||||||||
ASSET QUALITY DETAIL | |||||||||||
Nonperforming Loans: | |||||||||||
Loans on nonaccrual basis | $ | 20,495 | $ | 19,594 | $ | 14,466 | |||||
Loans held for sale on a nonaccrual basis | — | — | — | ||||||||
Troubled debt restructured loans on nonaccrual basis | 8,981 | 9,694 | 16,210 | ||||||||
Troubled debt restructured loans on accrual basis | 6,216 | 6,404 | 7,410 | ||||||||
Total Nonperforming Loans | $ | 35,692 | $ | 35,692 | $ | 38,086 | |||||
Other real estate owned ("OREO") | 322 | 93 | 502 | ||||||||
Repossessions ("Repos") | 600 | 621 | 453 | ||||||||
Total Nonperforming Assets | $ | 36,614 | $ | 36,406 | $ | 39,041 | |||||
Loans past due in excess of 90 days and still accruing | 1,548 | 3,155 | 1,135 | ||||||||
Classified loans | 45,656 | 46,798 | 58,780 | ||||||||
Criticized loans | 139,258 | 146,780 | 195,791 | ||||||||
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4) | 0.50 | % | 0.51 | % | 0.58 | % | |||||
Allowance for credit losses | $ | 96,093 | $ | 93,603 | $ | 94,185 | |||||
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||
CONSOLIDATED FINANCIAL DATA | ||
Unaudited | ||
(dollars in thousands) |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Net Charge-offs (Recoveries): | ||||||||||||||||||||
Commercial, financial, agricultural and other | $ | 698 | $ | 430 | $ | 1,960 | $ | 1,523 | $ | 6,223 | ||||||||||
Real estate construction | (9) | — | — | (9) | (135) | |||||||||||||||
Commercial real estate | 1,003 | 547 | 12 | 1,536 | 1,529 | |||||||||||||||
Residential real estate | 36 | (26) | (87) | 120 | (179) | |||||||||||||||
Loans to individuals | 733 | 577 | 392 | 1,953 | 2,036 | |||||||||||||||
Net Charge-offs | $ | 2,461 | $ | 1,528 | $ | 2,277 | $ | 5,123 | $ | 9,474 | ||||||||||
Net charge-offs as a percentage of average loans outstanding (annualized) (4) | 0.13 | % | 0.09 | % | 0.13 | % | 0.10 | % | 0.19 | % | ||||||||||
Net charge-offs as a percentage of average loans outstanding, excluding PPP loans (annualized) (4) | 0.13 | % | 0.09 | % | 0.14 | % | 0.10 | % | 0.20 | % | ||||||||||
Provision for credit losses as a percentage of net charge-offs | 240.67 | % | 268.26 | % | 14.49 | % | 233.96 | % | 14.28 | % | ||||||||||
Provision for credit losses | $ | 5,923 | $ | 4,099 | $ | 330 | $ | 11,986 | $ | 1,353 |
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 Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Interest income | $ | 85,700 | $ | 76,728 | $ | 74,196 | $ | 233,672 | $ | 220,308 | ||||||||||
Adjustment to fully taxable equivalent basis (1) | 261 | 244 | 235 | 759 | 834 | |||||||||||||||
Interest income adjusted to fully taxable equivalent basis (non-GAAP) | 85,961 | 76,972 | 74,431 | 234,431 | 221,142 | |||||||||||||||
Interest expense | 3,340 | 3,066 | 3,551 | 9,478 | 12,021 | |||||||||||||||
Net interest income, (FTE) (1) | $ | 82,621 | $ | 73,906 | $ | 70,880 | $ | 224,953 | $ | 209,121 |
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 Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Net Income | $ | 33,968 | $ | 30,754 | $ | 34,092 | $ | 92,448 | $ | 103,481 | ||||||||||
Intangible amortization | 746 | 862 | 868 | 2,470 | 2,597 | |||||||||||||||
Tax benefit of amortization of intangibles | (157) | (181) | (182) | (519) | (545) | |||||||||||||||
Net Income, adjusted for tax affected amortization of intangibles | $ | 34,557 | $ | 31,435 | $ | 34,778 | $ | 94,399 | $ | 105,533 | ||||||||||
Average Tangible Equity: | ||||||||||||||||||||
Total shareholders' equity | $ | 1,063,334 | $ | 1,063,850 | $ | 1,113,789 | $ | 1,078,038 | $ | 1,096,282 | ||||||||||
Less: intangible assets | 313,336 | 313,617 | 315,303 | 313,726 | 315,835 | |||||||||||||||
Tangible Equity | 749,998 | 750,233 | 798,486 | 764,312 | 780,447 | |||||||||||||||
Less: preferred stock | — | — | — | — | — | |||||||||||||||
Tangible Common Equity | $ | 749,998 | $ | 750,233 | $ | 798,486 | $ | 764,312 | $ | 780,447 | ||||||||||
(8)Return on Average Tangible Common Equity | 18.28 | % | 16.81 | % | 17.28 | % | 16.51 | % | 18.08 | % | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Core Net Income: | ||||||||||||||||||||
Total Net Income | $ | 33,968 | $ | 30,754 | $ | 34,092 | $ | 92,448 | $ | 103,481 | ||||||||||
Net securities gains | — | — | — | (2) | (16) | |||||||||||||||
Tax benefit of net securities gains | — | — | — | — | 3 | |||||||||||||||
Merger & acquisition related expenses | 448 | — | — | 448 | — | |||||||||||||||
Tax benefit of merger & acquisition related expenses | (94) | — | — | (94) | — | |||||||||||||||
COVID-19 related | 39 | 62 | 50 | 118 | 357 | |||||||||||||||
Tax benefit of COVID 19 related | (8) | (13) | (11) | (25) | (75) | |||||||||||||||
Branch consolidation related | — | (202) | — | (104) | 18 | |||||||||||||||
Tax benefit of bank consolidation related expenses | — | 42 | — | 22 | (4) | |||||||||||||||
(5) Core net income | $ | 34,353 | $ | 30,643 | $ | 34,131 | $ | 92,811 | $ | 103,764 | ||||||||||
Average Shares Outstanding Assuming Dilution | 93,450,259 | 94,245,770 | 95,892,304 | 93,994,158 | 96,130,602 | |||||||||||||||
(6) Core Earnings per common share (diluted) | $ | 0.37 | $ | 0.33 | $ | 0.36 | $ | 0.99 | $ | 1.08 | ||||||||||
Intangible amortization | 746 | 862 | 868 | 2,470 | 2,597 | |||||||||||||||
Tax benefit of amortization of intangibles | (157) | (181) | (182) | (519) | (545) | |||||||||||||||
Core Net Income, adjusted for tax affected amortization of intangibles | $ | 34,942 | $ | 31,324 | $ | 34,817 | $ | 94,762 | $ | 105,816 | ||||||||||
(9) Core Return on Average Tangible Common Equity | 18.48 | % | 16.75 | % | 17.30 | % | 16.58 | % | 18.13 | % |
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 Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Core Return on Average Assets: | ||||||||||||||||||||
Total Net Income | $ | 33,968 | $ | 30,754 | $ | 34,092 | $ | 92,448 | $ | 103,481 | ||||||||||
Total Average Assets | 9,534,094 | 9,600,469 | 9,502,501 | 9,553,082 | 9,362,908 | |||||||||||||||
Return on Average Assets | 1.41 | % | 1.28 | % | 1.42 | % | 1.29 | % | 1.48 | % | ||||||||||
Core Net Income (5) | $ | 34,353 | $ | 30,643 | $ | 34,131 | $ | 92,811 | $ | 103,764 | ||||||||||
Total Average Assets | 9,534,094 | 9,600,469 | 9,502,501 | 9,553,082 | 9,362,908 | |||||||||||||||
(7) Core Return on Average Assets | 1.43 | % | 1.28 | % | 1.43 | % | 1.30 | % | 1.48 | % |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Core Efficiency Ratio: | ||||||||||||||||||||
Total Noninterest Expense | $ | 59,901 | $ | 55,679 | $ | 55,027 | $ | 171,304 | $ | 158,429 | ||||||||||
Adjustments to Noninterest Expense: | ||||||||||||||||||||
Intangible amortization | 746 | 862 | 868 | 2,470 | 2,597 | |||||||||||||||
Merger and acquisition related | 448 | — | — | 448 | — | |||||||||||||||
COVID-19 related | 39 | 62 | 50 | 118 | 357 | |||||||||||||||
Branch consolidation related | — | (202) | — | (104) | 18 | |||||||||||||||
Noninterest Expense - Core | $ | 58,668 | $ | 54,957 | $ | 54,109 | $ | 168,372 | $ | 155,457 | ||||||||||
Net interest income, (FTE) | $ | 82,621 | $ | 73,906 | $ | 70,880 | $ | 224,953 | $ | 209,121 | ||||||||||
Total noninterest income | 25,914 | 24,509 | 27,245 | 74,399 | 80,686 | |||||||||||||||
Net securities gains | — | — | — | (2) | (16) | |||||||||||||||
Total Revenue | 108,535 | 98,415 | 98,125 | 299,350 | 289,791 | |||||||||||||||
Adjustments to Revenue: | ||||||||||||||||||||
Derivative mark-to-market | 6 | 42 | 218 | 395 | 1,371 | |||||||||||||||
Total Revenue - Core | $ | 108,529 | $ | 98,373 | $ | 97,907 | $ | 298,955 | $ | 288,420 | ||||||||||
(10)Core Efficiency Ratio | 54.06 | % | 55.87 | % | 55.27 | % | 56.32 | % | 53.90 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||
CONSOLIDATED FINANCIAL DATA | ||
Unaudited | ||
(dollars in thousands) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
September 30, | June 30, | September 30, | |||||||||
2022 | 2022 | 2021 | |||||||||
Tangible Equity: | |||||||||||
Total shareholders' equity | $ | 1,022,575 | $ | 1,049,158 | $ | 1,112,855 | |||||
Less: intangible assets | 312,950 | 313,449 | 315,092 | ||||||||
Tangible Equity | 709,625 | 735,709 | 797,763 | ||||||||
Less: preferred stock | — | — | — | ||||||||
Tangible Common Equity | $ | 709,625 | $ | 735,709 | $ | 797,763 | |||||
Tangible Assets: | |||||||||||
Total assets | $ | 9,578,630 | $ | 9,526,427 | $ | 9,477,854 | |||||
Less: intangible assets | 312,950 | 313,449 | 315,092 | ||||||||
Tangible Assets | $ | 9,265,680 | $ | 9,212,978 | $ | 9,162,762 | |||||
Less: PPP loans | 4,930 | 12,928 | 152,102 | ||||||||
Tangible Assets, excluding PPP loans | $ | 9,260,750 | $ | 9,200,050 | $ | 9,010,660 | |||||
(12)Tangible Common Equity as a percentage of Tangible Assets | 7.66 | % | 7.99 | % | 8.71 | % | |||||
(12)Tangible Common Equity as a percentage of Tangible Assets, excluding PPP loans | 7.66 | % | 8.00 | % | 8.85 | % | |||||
Shares Outstanding at End of Period | 93,377,064 | 93,705,120 | 95,209,685 | ||||||||
(11)Tangible Book Value Per Common Share | $ | 7.60 | $ | 7.85 | $ | 8.38 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Pre-tax pre-provision income: | ||||||||||||||||||||
Net interest income | $ | 82,360 | $ | 73,662 | $ | 70,645 | $ | 224,194 | $ | 208,287 | ||||||||||
Noninterest income | 25,914 | 24,509 | 27,245 | 74,399 | 80,686 | |||||||||||||||
Noninterest expense | 59,901 | 55,679 | 55,027 | 171,304 | 158,429 | |||||||||||||||
Pre-tax pre-provision income | $ | 48,373 | $ | 42,492 | $ | 42,863 | $ | 127,289 | $ | 130,544 | ||||||||||
Net securities gains | $ | — | $ | — | $ | — | $ | (2) | $ | (16) | ||||||||||
Merger and acquisition related expenses | 448 | 0 | 0 | 448 | 0 | |||||||||||||||
COVID-19 related | 39 | 62 | 50 | 118 | 357 | |||||||||||||||
Branch consolidation | — | (202) | — | (104) | 18 | |||||||||||||||
Core pre-tax pre-provision income | $ | 48,860 | $ | 42,352 | $ | 42,913 | $ | 127,749 | $ | 130,903 | ||||||||||
Net charge-offs | $ | 2,461 | $ | 1,528 | $ | 2,277 | $ | 5,123 | $ | 9,474 |
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 Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Core Net Interest Margin: | ||||||||||||||||||||
Net Interest Income (FTE) | $ | 82,621 | $ | 73,906 | $ | 70,880 | $224,953 | $209,121 | ||||||||||||
Less: Income from PPP Loans | 265 | 608 | 5,473 | 2,630 | 13,415 | |||||||||||||||
Less: Income from Excess Cash | 538 | 644 | 88 | 1,308 | 162 | |||||||||||||||
Core Net Interest Income (FTE) | $ | 81,818 | $ | 72,654 | $ | 65,319 | $221,015 | $195,544 | ||||||||||||
Average Interest-Earning Assets | $ | 8,708,105 | $ | 8,770,302 | $ | 8,701,124 | $8,727,075 | $8,558,289 | ||||||||||||
Less: PPP Loans | 7,196 | 20,290 | 225,262 | 26,050 | 380,551 | |||||||||||||||
Less: Excess Cash | 99,707 | 324,896 | 352,093 | 233,626 | 340,691 | |||||||||||||||
Core Average Interest-Earning Assets | $ | 8,601,202 | $ | 8,425,116 | $ | 8,123,769 | $8,467,399 | $7,837,047 | ||||||||||||
Core Net Interest Margin (Non-GAAP) | 3.77 | % | 3.46 | % | 3.19 | % | 3.49 | % | 3.34 | % |
Document and Entity Information Document and Entity Information |
Oct. 25, 2022 |
---|---|
Document Information [Line Items] | |
Entity Incorporation, State or Country Code | PA |
Amendment Flag | false |
Entity Registrant Name | FIRST COMMONWEALTH FINANCIAL CORP /PA/ |
Document Fiscal Year Focus | 2022 |
Entity Address, State or Province | PA |
Entity File Number | 001-11138 |
Entity Tax Identification Number | 25-1428528 |
Document Type | 8-K |
Entity Address, Address Line One | 601 Philadelphia Street |
Entity Address, City or Town | Indiana, |
Entity Address, Postal Zip Code | 15701 |
Document Period End Date | Oct. 25, 2022 |
City Area Code | 724 |
Local Phone Number | 349-7220 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0000712537 |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | FCF |
Security Exchange Name | NYSE |
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