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Mar 31, 2022
First Commonwealth Q1 2022 Earnings Report
Announced first quarter earnings and increased quarterly dividend.
Key Takeaways
First Commonwealth Financial Corporation reported net income of $27.7 million and diluted earnings per share of $0.29 for the first quarter of 2022. The company experienced strong loan growth and solid financial results, with annualized loan growth of 8.8%. The Board of Directors authorized a 4.3% increase in the quarterly cash dividend to shareholders.
Net income was $27.7 million, with diluted earnings per share of $0.29.
Core pre-tax pre-provision net revenue totaled $36.5 million.
Net interest income (FTE) was $68.4 million.
Total loans (excluding PPP loans) increased by $147.2 million, or 8.8% annualized.
First Commonwealth
First Commonwealth
Forward Guidance
The company's asset sensitive balance sheet is well positioned for a rising interest rate environment. The de novo Equipment Finance business booked its first loans during the quarter and is expected to serve as another source of growth.
Positive Outlook
- Asset sensitive balance sheet well positioned for a rising interest rate environment.
- Equipment Finance business expected to serve as another source of growth.
- Strong quarter of broad-based loan growth.
- Solid financial results in the first quarter.
- Resilient indirect auto business produced annualized loan growth of 8.8%.
Challenges Ahead
- Experienced an anticipated slowdown in fee income from record levels in Mortgage business.
- Core efficiency ratio increased by 241 basis points to 59.47% compared to the prior quarter
- Return on average assets (ROAA) declined 27 basis points to 1.18% compared to the prior quarter
- Net interest income (FTE) of $68.4 million decreased $2.1 million from the previous quarter
- Noninterest income of $24.0 million decreased $2.1 million from the previous quarter