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First Commonwealth Financial

Financials

Price	13.42	EPS	1
Shares	99	P/E	17
MCap	1,323	P/FCF	17
Net Debt	106	EBIT	141
TEV	1,429	TEV/EBIT	10
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-08
10-K	2019-12-31	Filed 2020-03-02
10-Q	2019-09-30	Filed 2019-11-08
10-Q	2019-06-30	Filed 2019-08-07
10-Q	2019-03-31	Filed 2019-05-07
10-K	2018-12-31	Filed 2019-03-01
10-Q	2018-09-30	Filed 2018-11-08
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-31	Filed 2018-03-01
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-03-14
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-09
10-K	2015-12-31	Filed 2016-02-29
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-07
10-Q	2015-03-31	Filed 2015-05-08
10-K	2014-12-31	Filed 2015-03-02
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-07
10-Q	2014-03-31	Filed 2014-05-09
10-K	2013-12-31	Filed 2014-03-03
10-Q	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-08-08
10-Q	2013-03-31	Filed 2013-05-08
10-K	2012-12-31	Filed 2013-03-13
10-Q	2012-09-30	Filed 2012-11-08
10-Q	2012-06-30	Filed 2012-08-07
10-Q	2012-03-31	Filed 2012-05-08
10-K	2011-12-31	Filed 2012-03-05
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-10
10-K	2010-12-31	Filed 2011-03-03
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-07-30
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-01

Reports

8-K	2020-10-27	Earnings, Regulation FD, Exhibits
8-K	2020-09-18	Other Events, Exhibits
8-K	2020-09-10	Regulation FD, Exhibits
8-K	2020-07-28	Earnings, Regulation FD, Exhibits
8-K	2020-04-28
8-K	2020-04-28
8-K	2020-01-28
8-K	2019-11-14
8-K	2019-10-29
8-K	2019-07-23
8-K	2019-04-23
8-K	2019-04-23
8-K	2019-04-22
8-K	2019-03-04
8-K	2019-02-21
8-K	2019-01-29
8-K	2018-10-23
8-K	2018-08-15
8-K	2018-07-24
8-K	2018-05-21
8-K	2018-05-16
8-K	2018-05-11
8-K	2018-05-01
8-K	2018-04-24
8-K	2018-04-24
8-K	2018-02-22
8-K	2018-01-23
8-K	2018-01-10
8-K	2018-01-03

First Commonwealth Financial Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow

fcf-20200930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


ý			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-11138

First Commonwealth Financial Corporation

(Exact name of registrant as specified in its charter)


Pennsylvania		25-1428528
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

601 Philadelphia Street
Indiana	PA	15701
(Address of principal executive offices)		(Zip Code)

724-349-7220

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ¨ Smaller reporting company ☐ Emerging growth company ☐

Non-accelerated filer ¨ (Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The number of shares outstanding of issuer’s common stock, $1.00 par value, as of November 5, 2020, was 96,132,751.

Table of Contents

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

FORM 10-Q

INDEX


		PAGE

PART I.	Financial Information

ITEM 1.	Financial Statements and Supplementary Data

	Included in Part I of this report:

	First Commonwealth Financial Corporation and Subsidiaries

	Consolidated Statements of Financial Condition (Unaudited)	3
	Consolidated Statements of Income (Unaudited)	4
	Consolidated Statements of Comprehensive Income (Unaudited)	5
	Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	6
	Consolidated Statements of Cash Flows (Unaudited)	8
	Notes to the Unaudited Consolidated Financial Statements	9

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	47

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	72

ITEM 4.	Controls and Procedures	72

PART II.	Other Information

ITEM 1.	Legal Proceedings	73

ITEM 1A.	Risk Factors	73

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73

ITEM 3.	Defaults Upon Senior Securities	73

ITEM 4.	Mine Safety Disclosures	73

ITEM 5.	Other Information	73

ITEM 6.	Exhibits	74

	Signatures	75

Table of Contents

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)


	September 30, 2020		December 31, 2019

	(dollars in thousands, except share data)
Assets
Cash and due from banks	$	97,060	$	102,346
Interest-bearing bank deposits	283,037		19,510
Securities available for sale, at fair value	908,236		902,292
Securities held to maturity, at amortized cost (Fair value of $276,988 and $338,718 at September 30, 2020 and December 31,2019, respectively)	268,638		337,123
Other investments	12,966		16,761
Loans held for sale	37,998		15,989
Loans:
Portfolio loans	6,949,716		6,189,148
Allowance for credit losses	(88,307)		(51,637)
Net loans	6,861,409		6,137,511
Premises and equipment, net(1)	128,041		137,268
Other real estate owned	1,079		2,228
Goodwill	303,328		303,328
Amortizing intangibles, net	14,095		16,366
Bank owned life insurance	224,660		220,723
Other assets	148,819		97,328
Total assets	$	9,289,366	$	8,308,773
Liabilities
Deposits (all domestic):
Noninterest-bearing	$	2,301,821	$	1,690,247
Interest-bearing	5,402,086		4,987,368
Total deposits	7,703,907		6,677,615
Short-term borrowings	122,356		201,853
Subordinated debentures	170,572		170,450
Other long-term debt	56,424		56,917
Capital lease obligation	6,494		6,815
Total long-term debt	233,490		234,182
Other liabilities	156,782		139,458
Total liabilities	8,216,535		7,253,108
Shareholders’ Equity
Preferred stock, $1 par value per share, 3,000,000 shares authorized, none issued	—		—
Common stock, $1 par value per share, 200,000,000 shares authorized; 113,914,902 shares issued at September 30, 2020 and December 31, 2019, and 96,924,781 and 98,311,840 shares outstanding at September 30, 2020 and December 31, 2019, respectively	113,915		113,915
Additional paid-in capital	494,682		493,737
Retained earnings	592,704		577,348
Accumulated other comprehensive income, net	19,111		5,579
Treasury stock (16,990,121 and 15,603,062 shares at September 30, 2020 and December 31, 2019, respectively)	(147,581)		(134,914)

Total shareholders’ equity	1,072,831		1,055,665
Total liabilities and shareholders’ equity	$	9,289,366	$	8,308,773

(1)September 30, 2020 balance includes $2.6 million in available for sale assets as a result of the branch consolidation initiative.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

ITEM 1. Financial Statements and Supplementary Data (Continued)

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(dollars in thousands, except share data)
Interest Income
Interest and fees on loans	$	67,474	$	74,714	$	207,290	$	218,524
Interest and dividends on investments:
Taxable interest	5,598		6,995		19,064		22,871
Interest exempt from federal income taxes	268		398		850		1,231
Dividends	159		387		536		1,419
Interest on bank deposits	94		81		163		181
Total interest income	73,593		82,575		227,903		244,226
Interest Expense
Interest on deposits	4,621		9,846		18,756		27,298
Interest on short-term borrowings	35		1,620		670		8,075
Interest on subordinated debentures	2,146		2,232		6,434		6,930
Interest on other long-term debt	356		362		1,065		656
Interest on lease obligations	66		70		199		210

Total interest expense	7,224		14,130		27,124		43,169
Net Interest Income	66,369		68,445		200,779		201,057
Provision for credit losses	11,212		2,708		49,038		9,638
Net Interest Income after Provision for Credit Losses	55,157		65,737		151,741		191,419
Noninterest Income



Net securities gains	20		9		47		15
Trust income	2,554		2,325		6,774		6,221
Service charges on deposit accounts	4,035		4,954		12,066		13,792
Insurance and retail brokerage commissions	2,156		1,912		5,982		5,887
Income from bank owned life insurance	1,547		1,540		4,963		4,408
Gain on sale of mortgage loans	6,437		2,599		13,226		6,101
Gain on sale of other loans and assets	1,871		970		3,151		3,831
Card-related interchange income	6,441		5,629		17,589		15,800
Derivatives mark to market	(160)		(45)		(2,122)		(88)

Swap fee income	41		421		864		1,634
Other income	1,827		1,865		5,314		5,356
Total noninterest income	26,769		22,179		67,854		62,957
Noninterest Expense
Salaries and employee benefits	28,823		28,674		87,573		83,205
Net occupancy	4,609		4,521		13,979		13,878
Furniture and equipment	4,033		3,904		11,468		11,396
Data processing	2,741		2,825

EX-31.1	fcf-ex31120200930x10q.htm
EX-31.2	fcf-ex31220200930x10q.htm
EX-32.1	fcf-ex32120200930x10q.htm
EX-32.2	fcf-ex32220200930x10q.htm

FCF 10Q Quarterly Report

First Commonwealth Financial Earnings 2020-09-30