First Commonwealth Financial (FCF) Tops Q3 EPS by 1c

First Commonwealth Financial (NYSE: FCF) reported Q3 EPS of $0.24, $0.01 better than the analyst estimate of $0.23.

Third Quarter 2020 Highlights

Financial results

• Net income of $19.2 million and diluted earnings per share of $0.20, a decrease of $0.04 per share from the previous quarter -- Core net income of $23.8 million and diluted earnings per share of $0.24, unchanged from the previous quarter
• Provision for loan losses of $11.2 million increased $4.4 million from the previous quarter
• Core pre-tax pre-provision net revenue (PPNR)(1) was $41.1 million, an increase of $5.0 million from the previous quarter and an increase of $1.2 million from the third quarter of 2019 -- Core PPNR ROAA was 1.74%, an increase of 13 basis points from the previous quarter
• Quarterly and year-to-date positive operating leverage -- Core revenue increased $4.6 million, or 5.1% from the previous quarter and $6.4 million, or 2.4% from the first nine months of the previous year -- Core noninterest expense increased $39 thousand, or 0.1% from the previous quarter and $2.9 million, or 1.9% from the first nine months of the previous year
• Net interest income of $66.7 million was essentially flat from the previous quarter, decreasing by $0.3 million due to an 18 basis point decline in the net interest margin, most of which was offset by a $338.5 million increase in average interest-earning assets
• Noninterest income of $26.8 million increased $5.0 million from the previous quarter driven by record mortgage volume and strong SBA gain on sale revenue
• Noninterest expense of $58.2 million increased $5.4 million from the previous quarter due to $5.8 million in charges related to the Company’s previously disclosed voluntary early retirement program and the consolidation of 20% of the Company’s branch facilities -- Core expenses were well controlled and essentially flat from the previous quarter -- The core efficiency ratio improved to 54.5% as compared to 57.2% in the previous quarter
• Total period-end loans (excluding PPP loans) increased $32.6 million, or 2.0% annualized, from the previous quarter driven by improved real estate secured consumer and indirect auto demand
• Average deposits increased $320.1 million (or 17.1% annualized) from the previous quarter due in part to deposit growth associated with PPP loan funds, and period-end deposits decreased $78.3 million (or 4.0% annualized)

For earnings history and earnings-related data on First Commonwealth Financial (FCF) click here.

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