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Sep 30, 2023
First Commonwealth Q3 2023 Earnings Report
Reported strong third quarter results, overcoming net interest margin compression and demonstrating improvements across various business areas.
Key Takeaways
First Commonwealth Financial Corporation reported a net income of $39.2 million, or $0.38 per share, for the third quarter of 2023. The company saw an increase in average deposits and end-of-period deposits, along with a rise in net interest income and noninterest income. Asset quality remained strong, with a decrease in total classified loans. The company's capital and liquidity positions remained robust.
Net income was $39.2 million, with diluted earnings per share at $0.38.
Core pre-tax pre-provision net revenue totaled $55.7 million.
Average deposits increased by $48.4 million, or 2.1% annualized.
Net interest income (FTE) was $98.1 million, relatively unchanged from the previous quarter.
First Commonwealth
First Commonwealth
Forward Guidance
The company did not provide specific forward guidance in the provided document. However, the CEO expressed enthusiasm about the company's current position and its ability to improve businesses despite a challenging macroeconomic environment.
Positive Outlook
- Strong results in the third quarter.
- Pace of increases in funding costs continued to moderate.
- Loan yields continue to improve.
- Strong asset quality.
- Strong liquidity and capital positions.
Challenges Ahead
- Net interest margin compression of 9 basis points.
- Challenging macro-economic environment for banks.
- Elevated operational losses.
- Higher FDIC insurance expense.
- AOCI decreased due to higher interest rates.