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Jun 30, 2022
First Commonwealth Q2 2022 Earnings Report
First Commonwealth's financial performance increased in Q2 2022, with net income and diluted earnings per share rising compared to the previous quarter and the same period last year.
Key Takeaways
First Commonwealth Financial Corporation reported a net income of $30.8 million and diluted earnings per share of $0.33 for Q2 2022. The company experienced growth in core pre-tax pre-provision net revenue and positive operating leverage, driven by loan growth and an increase in net interest income.
Net income reached $30.8 million, with diluted earnings per share at $0.33, up from both the prior quarter and Q2 2021.
Core pre-tax pre-provision net revenue totaled $42.4 million, showing an increase from the previous quarter.
Total loans (excluding PPP loans) grew by $186.0 million, or 10.8% annualized, from the previous quarter.
Net interest income (FTE) increased to $73.9 million, driven by higher yields on variable and adjustable-rate loans.
Forward Guidance
First Commonwealth aims to maintain positive operating leverage throughout 2022, despite potential revenue challenges from a slowdown in mortgage banking income. The company's asset-sensitive balance sheet and deposit franchise are expected to benefit from the increasing interest rate environment. The company believes it is well-positioned to navigate a possible recession.
Positive Outlook
- Expected benefit from rising interest rate environment due to asset-sensitive balance sheet.
- Stable funding sourced from deposit franchise.
- Lower-risk, more diversified loan portfolio.
- Enhanced credit administration function.
- Commitment to achieving positive operating leverage in 2022.
Challenges Ahead
- Potential revenue headwinds from slowing mortgage banking income.
- Uncertainties regarding the impact of the COVID-19 pandemic.
- Volatility and disruption in national and international financial markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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