On Tuesday, Shares of First Commonwealth Financial Corporation (NYSE: FCF) showed the bullish trend with a higher momentum of 1.26% to $12.82. The company traded total volume of 242.207K shares as contrast to its average volume of 340.24K shares. The company has a market value of $1.26B and about 98.35M shares outstanding.
First Commonwealth Financial Corporation (FCF) recently declared that net income for the first quarter of 2019 was $24.60M, resulting in diluted earnings per share of $0.25, as contrast to net income of $23.30M and diluted earnings per share of $0.24 for the first quarter of 2018, a boost of $1.30M and $0.01, or 5.7% and 4.2%, respectively.
Net income for the first quarter of 2019 was $24.60M, as contrast to $23.30M for the first quarter of 2018, a boost of $1.30M, or 5.7%, year-over-year.
Core net income (adjusted for acquisition expenses) was $24.60M, as contrast to $23.50M for the first quarter of 2018 and $27.00M in the fourth quarter of 2018, a boost of $1.10M, or 4.5%, year-over-year and a decrease of $2.40M from the prior quarter.
Net Interest Margin and Net Interest Income:
Total average interest-earning assets increased $107.00M from the previous quarter because of strong commercial and industrial loan growth.
Total average deposits grew by $107.60M in the first quarter of 2019 contrast to the previous quarter. Growth was driven by a $76.00M increase in average interest-bearing transaction accounts, a $23.80M increase in average time deposits and a $7.80M increase in average noninterest-bearing deposits.
Asset quality trends continued to improve during the quarter. At March 31, 2019, nonperforming loans totaled $31.30M, a decrease of $0.70M from December 31, 2018 and a decrease of $26.00M from March 31, 2018. Nonperforming loans as a percentage of total loans were 0.53%, 0.55% and 1.06% for the periods ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively.
The provision for credit losses totaled $4.10M for the quarter ended March 31, 2019, a boost of $2.60M as contrast to the prior quarter and a decrease of $2.80M from the same quarter last year. The increase from the previous quarter was due in part to the release of $1.70M in excess specific reserves in the fourth quarter related to the successful resolution of a commercial credit, as well as reserves for strong organic loan growth. For the originated loan portfolio at March 31, 2019, the allowance for credit losses to total originated loans was 0.92%, contrast to 0.90% at December 31, 2018 and 1.07% at March 31, 2018.
During the first quarter of 2019, net charge-offs were $2.20M, contrast to $4.50M in the prior quarter and $1.50M in the first quarter of 2018. Net charge-offs were 0.15%, 0.31% and 0.11% of average loans (annualized) for the periods ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively.
Noninterest Income and Noninterest Expense:
Noninterest income totaled $18.90M for the first quarter of 2019, as contrast to $20.50M for the fourth quarter of 2018 and $19.20M for the first quarter of 2018 (excluding net securities gains). The $0.30M decrease from the previous year was because of a decrease of $0.80M in swap-related derivative mark-to-market income, which was partially offset by a boost of $0.50M in gain on sale of loans and other assets because of higher Small Business Administration (“SBA”) lending activities as contrast to the first quarter of 2018.
The $1.70M decrease in noninterest income from the prior quarter was the result of $1.00M less in service charges and card-related interchange income (driven by seasonally lower volume and six more processing days in the fourth quarter), as well as a $0.60M decrease in gain sale of loans and other assets because of a gain on the sale of a nonperforming loan in the prior quarter and a $0.40M insurance recovery in the prior quarter. This was partially offset by a $0.30M increase in gain on sale of mortgage loans.
Net securities gains were $2.80M during the first quarter of 2018; no such gains were recorded in the current or previous quarter. The gains in the prior year quarter were attributable to the successful auction calls of two pooled trust preferred securities, for which the company had formerly recognized an other-than-temporary impairment charge.
Noninterest expense (excluding merger-related expenses) totaled $49.70M for the first quarter of 2019, as contrast to $50.00M for the fourth quarter of 2018 and $46.50M for the first quarter of 2018. The $0.30M decrease from the previous quarter was mainly the result of a $0.70M decrease in other professional fees and a $0.60M decrease in Pennsylvania state shares tax. These decreases were partially offset by a $0.60M increase in occupancy expenses (due mainly to higher snow removal expense during the first quarter) and a $0.50M increase in advertising and promotion expense as the company invests in expanding its brand into new markets.
The $3.20M increase in noninterest expense from the first quarter of 2018 was driven mostly by higher expenses following the company’s recent acquisition of Foundation Bank on May 1, 2018, as well as the expansion of its commercial, SBA and mortgage lending teams.
The Company offered net profit margin of 35.60%. ROE was recorded as 11.10% while beta factor was 1.14. The stock, as of recent close, has shown the weekly downbeat performance of -0.54% which was maintained at 6.13% in this year.