First Commonwealth Financial Corp Q1 2024 Earnings – Net Income $37.5M

By Bobby Samwell • Tuesday, April 23 15:30 • Permanent Link

First Commonwealth Financial Corporation (NYSE: FCF) announced its financial results for the first quarter of 2024, reporting a net income of $37.5 million and diluted earnings per share of $0.37. This marks an increase of $7.3 million, or $0.07 per share, from the first quarter of 2023 and a decrease of $7.3 million, or $0.07 per share, from the prior quarter.

Key financial metrics for the first quarter of 2024 include: Core net income of $37.6 million and core diluted earnings per share of $0.37, compared to $45.4 million and $0.45 in the previous year. Net interest income (fte) of $92.6 million, a decrease of $3.4 million from the previous quarter and $2.0 million from the prior year quarter. Noninterest income of $24.0 million, a decrease of $0.3 million from the previous quarter. Noninterest expense (excluding merger-related expense) of $65.5 million, an increase of $0.5 million from the previous quarter. Total provision for credit losses of $4.2 million, an increase of $6.1 million from the previous quarter. Reserve build/(release) of $1.4 million, bringing reserves to total loans to 1.32% from 1.31% in the previous quarter.

The company also announced a 4.0% increase in the quarterly cash dividend to shareholders, reflecting a strong capital position with a bank-level common equity tier 1 capital (CET1) ratio of 11.1%, representing $435.3 million in excess capital above the regulatory "well capitalized" requirement of 6.5%.

In terms of assets and liabilities, average deposits increased by $51.7 million from the previous quarter, while total loans increased by $33.2 million, or 1.5% annualized. The loan-to-deposit ratio decreased by 228 basis points to 95.6% in the first quarter of 2024.

First Commonwealth Financial Corporation's CEO, T. Michael Price, expressed satisfaction with the performance, citing a strong pre-tax, pre-provision return on average assets of 1.77% and return on average tangible common equity of 16.51%. He emphasized the company's commitment to disciplined financial management and profitability.

The company's capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators, providing a strong foundation for its operations and growth.

The market has reacted to these announcements by moving the company's shares 1.5% to a price of $13.49. For the full picture, make sure to review First's 8-K report.

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