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Jun 30, 2020
First Commonwealth Q2 2020 Earnings Report
Announced second quarter 2020 earnings.
Key Takeaways
First Commonwealth Financial Corporation reported a net income of $23.9 million, or $0.24 per share, for the second quarter of 2020. The company's performance was driven by an increase in average interest-earning assets and improved mortgage gain on sale.
Net income was $23.9 million, with diluted earnings per share at $0.24, up from the previous quarter.
Provision for loan losses decreased by $24.1 million compared to the previous quarter, totaling $6.9 million.
Pre-tax pre-provision net revenue was $36.1 million.
Period-end loans increased by $612.8 million from the previous quarter, including $570.9 million in PPP loans.
First Commonwealth
First Commonwealth
Forward Guidance
In light of the rapidly changing operating environment and uncertain economic outlook, First Commonwealth has implemented Project THRIVE with the express goal of emerging on the other side of this crisis stronger than ever.
Positive Outlook
- Growing our business
- Maintaining adequate capital
- Protecting against further NIM compression
- Reducing operating expenses
- Targeting a 20% reduction in retail locations by December 31, 2020
Challenges Ahead
- Rapidly changing operating environment
- Uncertain economic outlook
- Potential for further NIM compression
- Need to reduce operating expenses
- Economic contraction as a result of the COVID-19 pandemic and the impact of such contraction on First Commonwealth and its customers