Financial Data and Key Metrics Changes - Core Earnings Per Share for Q3 2024 were $0.31, with loans remaining flat and deposits increasing. The net interest margin decreased by 1 basis point to 3.56% due to declining rates in anticipation of a Fed rate cut [7][8] - The efficiency ratio was reported at 56.66%, with core pretax pre-provision net revenue of $50.9 million, which was within $1 million of analyst consensus [8] Business Line Data and Key Metrics Changes - Non-interest income decreased by only $683,000 despite a $3 million drop in interchange income due to the Durbin amendment, with expectations for non-interest income in Q4 to be between $22 million and $24 million [11] - Total expenses for Q3 were $70.1 million, up $4.3 million from the previous quarter, influenced by one-time items totaling approximately $1.8 million [12] Market Data and Key Metrics Changes - The bank achieved recognition as the number two SBA lender by dollars in Western Pennsylvania for the 2024 fiscal year [13] - Customer satisfaction scores reached five-year peaks, with overall scores at 90.4 and net promoter scores at 70.3, both exceeding industry benchmarks [13] Company Strategy and Development Direction - The company is focused on rebuilding the Centric portfolio while strategically reducing exposure to certain sectors and shifting to selling nearly all mortgage originations [14] - The management expressed confidence in future growth driven by new commercial banking talent and a growth mindset among regional presidents [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointment in Q3 earnings per share but noted positive momentum in business and prospects for stronger growth ahead [14] - The credit performance from the Centric acquisition is expected to converge with the overall strong credit metrics of the bank, becoming a key source of future growth [15] Other Important Information - Tangible book value per share increased by $0.47 to $10.03, with share repurchases occurring at an average price of $16.83 [28] - The bank plans to pay down remaining borrowings when the Fed raises rates in November [19] Q&A Session Summary Question: What is the expected growth for the securities portfolio? - The company expects the securities portfolio to expand by about $100 million over the course of 2025 [30] Question: Can you provide details on the specific reserves taken this quarter? - Specific reserves included a $2.7 million reserve on a $10 million construction loan and a $2.8 million reserve on a $4.8 million term loan [32][33] Question: What is the outlook for charge-offs related to legacy credits? - The company anticipates resolution on legacy credits within the next quarter or two, with no significant incremental provisioning expected [36][37] Question: What is the expected trend for deposit costs? - Management indicated that the rate of increase in deposit costs is expected to decrease, with a potential plateau in the fourth quarter [69][70] Question: What is the appetite for deposit growth moving forward? - The company aims for a smooth, steady glide path in deposit growth, targeting a loan to deposit ratio of 92.5% [85]

Core Insights - First Commonwealth Financial (FCF) reported revenue of $121.21 million for Q3 2024, a year-over-year decline of 1.1% [1] - The earnings per share (EPS) for the same period was $0.31, down from $0.39 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $118.4 million, resulting in a surprise of +2.38% [1] - However, the EPS fell short of the consensus estimate of $0.36, leading to an EPS surprise of -13.89% [1] Financial Metrics - Core Efficiency Ratio stood at 56.7%, slightly above the average estimate of 56.3% from three analysts [3] - Net interest margin (FTE) was reported at 3.6%, matching the average estimate from three analysts [3] - Total Interest-Earning Assets (FTE) reached $10.83 billion, surpassing the average estimate of $10.72 billion [3] - Total Non-Interest Income was $24.70 million, exceeding the average estimate of $22.30 million [3] - Gain on sale of mortgage loans was $1.15 million, below the average estimate of $1.94 million [3] - Gain on sale of other loans and assets was $2.58 million, significantly higher than the average estimate of $1.24 million [3] - Net Interest Income was reported at $96.52 million, above the average estimate of $95.65 million [3] - Card-related interchange income was $4.14 million, exceeding the average estimate of $3.86 million [3] - Net interest income (FTE) was $96.86 million, slightly below the average estimate of $97 million [3] - Trust income was $3.24 million, above the average estimate of $2.98 million [3] - Service charges on deposit accounts were $5.84 million, marginally above the average estimate of $5.83 million [3] - Insurance and retail brokerage commissions were $2.66 million, below the average estimate of $2.90 million [3] Stock Performance - Shares of First Commonwealth Financial have returned -0.4% over the past month, compared to a +1.7% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

First Commonwealth Financial (FCF) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -13.89%. A quarter ago, it was expected that this financial holding company would post earnings of $0.35 per share when it actually produced earnings of $0.36, delivering a surprise of 2.86%. Over the ...

Exhibit 99.1 Financial Summary (1) FOR IMMEDIATE RELEASE First Commonwealth Announces Third Quarter 2024 Earnings; Declares Quarterly Dividend Indiana, PA, October 29, 2024 - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2024. | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------|-------|----------------------|-------|-------------------------------------- ...

INDIANA, Pa., Oct. 29, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2024. Financial Summary | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------|-------|---------------------------------------- ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

INDIANA, Pa., Oct. 15, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) announced today that it will host a conference call on Wednesday, October 30, 2024 at 2:00 p.m. Eastern Time to discuss financial results for the quarter ended September 30, 2024. The call will be hosted by T. Michael Price, President and Chief Executive Officer. He will be joined by James R. Reske, Executive Vice President and Chief Financial Officer, Jane Grebenc, Executive Vice President and Chief Revenue ...

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