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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	2020-03-31	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	2020-04-28	Earnings, Regulation FD, Exhibits
8-K	2020-04-28	Shareholder Vote, Exhibits
8-K	2020-01-28	Earnings, Regulation FD, Exhibits
8-K	2019-11-14	Officers, Exhibits
8-K	2019-10-29	Earnings, Regulation FD, Exhibits
8-K	2019-07-23	Earnings, Regulation FD, Exhibits
8-K	2019-04-23	Earnings, Regulation FD, Exhibits
8-K	2019-04-23	Shareholder Vote
8-K	2019-04-22	Other Events, Exhibits
8-K	2019-03-04	Regulation FD, Exhibits
8-K	2019-02-21	Officers
8-K	2019-01-29	Earnings, Regulation FD, Exhibits
8-K	2018-10-23	Earnings, Regulation FD, Exhibits
8-K	2018-08-15	Accountant, Exhibits
8-K	2018-07-24	Earnings, Regulation FD, Exhibits
8-K	2018-05-21	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2018-05-16	Regulation FD, Exhibits
8-K	2018-05-11	Other Events, Exhibits
8-K	2018-05-01	Enter Agreement, Sale of Shares, Other Events, Exhibits
8-K	2018-04-24	Shareholder Vote
8-K	2018-04-24	Earnings, Regulation FD, Exhibits
8-K	2018-02-22	Officers
8-K	2018-01-23	Earnings, Regulation FD, Exhibits
8-K	2018-01-10	Other Events, Exhibits
8-K	2018-01-03	Other Events

First Commonwealth Financial Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow

fcf-20200331

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 March 31, 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

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 May 7, 2020, was 98,134,697.

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)	7
	Notes to the Unaudited Consolidated Financial Statements	8

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	57

ITEM 4.	Controls and Procedures	57

PART II.	Other Information

ITEM 1.	Legal Proceedings	58

ITEM 1A.	Risk Factors	58

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59

ITEM 3.	Defaults Upon Senior Securities	59

ITEM 4.	Mine Safety Disclosures	59

ITEM 5.	Other Information	59

ITEM 6.	Exhibits	60

	Signatures	61

Table of Contents

ITEM 1. Financial Statements and Supplementary Data

FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)


	March 31, 2020		December 31, 2019
	(Unaudited)
	(dollars in thousands, except share data)
Assets
Cash and due from banks	$	118,413	$	102,346
Interest-bearing bank deposits	15,762		19,510
Securities available for sale, at fair value	972,626		902,292
Securities held to maturity, at amortized cost (Fair value of $327,592 and $338,718 at March 31, 2020 and December 31,2019, respectively)	318,256		337,123
Other investments	19,415		16,761
Loans held for sale	25,783		15,989
Loans:
Portfolio loans	6,313,944		6,189,148
Allowance for credit losses	(79,075)		(51,637)
Net loans	6,234,869		6,137,511
Premises and equipment, net	136,896		137,268
Other real estate owned	2,697		2,228
Goodwill	303,328		303,328
Amortizing intangibles, net	15,563		16,366
Bank owned life insurance	222,132		220,723
Other assets	129,365		97,328
Total assets	$	8,515,105	$	8,308,773
Liabilities
Deposits (all domestic):
Noninterest-bearing	$	1,751,524	$	1,690,247
Interest-bearing	5,171,564		4,987,368
Total deposits	6,923,088		6,677,615
Short-term borrowings	146,971		201,853
Subordinated debentures	170,490		170,450
Other long-term debt	56,755		56,917
Capital lease obligation	6,710		6,815
Total long-term debt	233,955		234,182
Other liabilities	153,167		139,458
Total liabilities	7,457,181		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 March 31, 2020 and December 31, 2019, and 98,015,396 and 98,311,840 shares outstanding at March 31, 2020 and December 31, 2019, respectively	113,915		113,915
Additional paid-in capital	494,181		493,737
Retained earnings	571,256		577,348
Accumulated other comprehensive income, net	17,352		5,579
Treasury stock (15,899,506 and 15,603,062 shares at March 31, 2020 and December 31, 2019, respectively)	(138,780)		(134,914)

Total shareholders’ equity	1,057,924		1,055,665
Total liabilities and shareholders’ equity	$	8,515,105	$	8,308,773

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
	March 31,
	2020		2019
	(dollars in thousands, except share data)
Interest Income
Interest and fees on loans	$	71,740	$	70,421
Interest and dividends on investments:
Taxable interest	6,973		8,164
Interest exempt from federal income taxes	315		418
Dividends	264		537
Interest on bank deposits	37		54
Total interest income	79,329		79,594
Interest Expense
Interest on deposits	8,449		8,175
Interest on short-term borrowings	588		3,438
Interest on subordinated debentures	2,146		2,354
Interest on other long-term debt	355		71
Interest on lease obligations	67		70

Total interest expense	11,605		14,108
Net Interest Income	67,724		65,486
Provision for credit losses	30,967		4,095
Net Interest Income after Provision for Credit Losses	36,757		61,391
Noninterest Income



Net securities gains	19		—
Trust income	2,111		1,926
Service charges on deposit accounts	4,745		4,245
Insurance and retail brokerage commissions	1,995		1,961
Income from bank owned life insurance	1,616		1,426
Gain on sale of mortgage loans	2,546		1,428
Gain on sale of other loans and assets	699		1,084
Card-related interchange income	5,262		4,730
Derivatives mark to market	(1,741)		(26)

Swap fee income	214		393
Other income	1,807		1,705
Total noninterest income	19,273		18,872
Noninterest Expense
Salaries and employee benefits	29,977		27,220
Net occupancy	4,973		4,916
Furniture and equipment	3,778		3,668
Data processing	2,467		2,544
Advertising and promotion	1,150		1,240
Pennsylvania shares tax	738		916
Intangible amortization	934		754
Collection and repossession	564		547
Other professional fees and services	910		754
FDIC insurance	28		574
Loss on sale or write-down of assets	213		65

Litigation and operational losses	390		401
Unfunded commitment reserve	(2,539)		(381)

Other operating	6,688		6,512
Total noninterest expense	50,271		49,730
Income Before Income Taxes	5,759		30,533
Income tax provision	1,032		5,944
Net Income	$	4,727	$	24,589
Average Shares Outstanding	98,123,627		98,479,041
Average Shares Outstanding Assuming Dilution	98,361,494		98,706,827
Per Share Data:
Basic Earnings per Share	$	0.05	$	0.25
Diluted Earnings per Share	$	0.05	$	0.25
Cash Dividends Declared per Common Share	$	0.11	$	0.10

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 COMPREHENSIVE INCOME (Unaudited)


	For the Three Months Ended
	March 31,
	2020		2019
	(dollars in thousands)
Net Income	$	4,727	$	24,589
Other comprehensive income, before tax expense:
Unrealized holding gains on securities arising during the period	19,503		9,030

Less: reclassification adjustment for gains on securities included in net income	(19)		—
Unrealized holding (losses) gains on derivatives arising during the period	(4,581)		133

Total other comprehensive income, before tax expense	14,903		9,163
Income tax expense related to items of other comprehensive income	(3,130)		(1,924)
Total other comprehensive income	11,773		7,239
Comprehensive Income	$	16,500	$	31,828

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 CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)


	Shares Outstanding	Common Stock		Additional Paid-in- Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss), net		Treasury Stock		Total Shareholders’ Equity
	(dollars in thousands, except share and per share data)
Balance at December 31, 2019	98,311,840	$	113,915	$	493,737	$	577,348	$	5,579	$	(134,914)	$	1,055,665


Net income						4,727						4,727
Other comprehensive income

EX-10.1	fcf-20200331xexx101202.htm
EX-10.2	fcf-20200331xexx102202.htm
EX-31.1	fcf-ex31120200331x10q.htm
EX-31.2	fcf-ex31220200331x10q.htm
EX-32.1	fcf-ex32120200331x10q.htm
EX-32.2	fcf-ex32220200331x10q.htm

FCF 10Q Quarterly Report

First Commonwealth Financial Earnings 2020-03-31