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Mar 31, 2020
First Commonwealth Q1 2020 Earnings Report
First Commonwealth's financial performance impacted by COVID-19 and increased loan loss provisions.
Key Takeaways
First Commonwealth Financial Corporation reported a net income of $4.7 million, or $0.05 per share, for the first quarter of 2020. The results reflect good fundamental performance, but were materially impacted by the extraordinary changes in the economic environment due to COVID-19, resulting in a significant reserve build of $27.4 million.
Net income was $4.7 million, or $0.05 per share, impacted by a reserve build of $27.4 million.
Pre-tax pre-provision net revenue increased $2.0 million from Q1 2019 to $37.1 million.
Revenue increased $2.6 million, or 3.0% from Q1 2019, to $87.4 million.
The company temporarily suspended share repurchases in March due to COVID-19.
First Commonwealth
First Commonwealth
Forward Guidance
The company did not provide specific forward guidance, but highlighted its strong capital and liquidity position, combined with robust technology capabilities, to serve its communities and businesses as it navigates these uncertain times.
Positive Outlook
- Strong capital position.
- Strong liquidity position.
- Robust technology capabilities.
- Ability to support communities.
- Ability to support businesses.
Challenges Ahead
- Uncertain economic times.
- COVID-19 impact on loan losses.
- Potential for continued economic contraction.
- Volatility in financial markets.
- Changes in laws and regulations.