INDIANA, Pa. - First Commonwealth (NYSE:FCF) Financial Corporation (NYSE: FCF) disclosed its financial outcomes for the first quarter of 2024, with a mixed performance in comparison to the same period in the previous year and the preceding quarter.
The company reported a GAAP net income of $37.5 million, or $0.37 per diluted share, which marks an increase from the $30.2 million, or $0.30 per share, recorded in the first quarter of 2023. Still, this figure represents a decline from the $44.8 million, or $0.44 per share, seen in the fourth quarter of 2023.
The reported net interest margin for the first quarter stood at 3.52%, a decrease from both the fourth quarter of 2023 and the first quarter of the previous year. The core efficiency ratio slightly worsened to 55.05% from 53.00% in the previous quarter. Moreover, the core return on average assets (ROAA) fell to 1.31% from 1.56% in the fourth quarter of 2023.
First Commonwealth experienced a modest increase in average deposits, with a 2.3% annualized growth, and total loans rose by 1.5% annualized from the prior quarter. The provision for credit losses was $4.2 million, contrasting with a credit of ($1.9) million in the previous quarter. The company’s allowance for credit losses as a percentage of total loans increased marginally to 1.32% from 1.31%.
On the capital front, the company's Board of Directors authorized a 4.0% increase in the quarterly cash dividend to shareholders. Furthermore, the bank-level Common Equity Tier 1 Capital (CET1) ratio was reported at 11.1%, indicating a robust capital position.
T. Michael Price, President and CEO, expressed satisfaction with the company's performance, particularly noting the strong pre-tax, pre-provision return on average assets and return on average tangible common equity. He emphasized the company's focus on disciplined financial management and confidence in delivering sustainable value to shareholders.
The information is based on a press release statement from First Commonwealth Financial Corporation. The company will host a conference call to discuss the financial results in more detail.
InvestingPro Insights
First Commonwealth Financial Corporation (NYSE: FCF) has shown resilience in its first-quarter performance, and a deeper dive into the company's metrics via InvestingPro reveals a few key insights that may interest investors. According to InvestingPro data, the company boasts a market capitalization of $1.35 billion, reflecting its standing in the financial sector.
The Price to Earnings (P/E) ratio, a measure of the company's current share price relative to its per-share earnings, stands at an attractive 8.63, indicating that the stock might be undervalued when considering its near-term earnings growth potential. This is further substantiated by a PEG ratio of 0.69, suggesting that the company's stock price is poised favorably in relation to its earnings growth.
From a profitability perspective, First Commonwealth Financial has been profitable over the last twelve months, which aligns with the optimistic view of the company's CEO on its robust financial management.
This profitability is further underscored by a solid dividend track record, as the company has not only maintained but also raised dividend payments for 38 consecutive years—a testament to its financial stability and commitment to shareholder returns.
Still, analysts have tempered expectations, with six analysts revising their earnings estimates downwards for the upcoming period. This could signal caution regarding future profitability or potential headwinds that the company may face. Despite this, the company's dividend yield stands at a compelling 3.76%, which may continue to attract income-focused investors.
InvestingPro Tips also highlight that First Commonwealth Financial is trading at a low P/E ratio relative to near-term earnings growth, which may indicate an investment opportunity for those looking at the fundamentals. Moreover, there are more InvestingPro Tips available for those interested in a more comprehensive analysis, including 6 additional tips that can be accessed through the InvestingPro platform.
For investors seeking to take advantage of these insights and more, a special offer is available: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This is an excellent opportunity to gain access to valuable financial data and analysis that can guide investment decisions for First Commonwealth Financial Corporation and other stocks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.