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First Commonwealth Financial Corp. (FCF)
NYSE:FCF
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First Commonwealth
(NYSE:FCF)
67Neutral
First Commonwealth (FCF) vs. S&P 500 (SPY)
Market Cap
$1.58B
Dividend Yield3.36%
Average Volume (3M)794.47K
Price to Earnings (P/E)11.1
Beta (1Y)0.98
Revenue Growth11.61%
EPS Growth-9.42%
CountryUS
Employees1,485
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.39
Shares Outstanding101,815,960
10 Day Avg. Volume1,170,237
30 Day Avg. Volume794,468
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.53
Price to Cash Flow (P/CF)29.40
P/FCF Ratio6.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside28.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
First Commonwealth Business Overview & Revenue Model
Company DescriptionFirst Commonwealth Financial Corporation (FCF) is a financial services company headquartered in Indiana, Pennsylvania. It operates primarily in the banking sector, offering a wide range of financial products and services to individual and business clients. Its core offerings include personal and commercial banking, wealth management, insurance services, and investment advisory solutions, with a focus on enhancing financial wellness for its customers.
How the Company Makes MoneyFirst Commonwealth Financial Corporation generates revenue primarily through interest income from its lending activities, including personal loans, mortgages, and commercial loans. Another significant revenue stream comes from non-interest income, which includes fees and service charges from its deposit accounts, investment advisory and wealth management services, as well as insurance commissions. The company also benefits from strategic partnerships and collaborations within the financial sector, which enhance its product offerings and market reach.
First Commonwealth Financial Statement Overview
Summary
First Commonwealth demonstrates a solid financial performance with consistent revenue growth and controlled debt levels. While profitability metrics like net profit margin have faced some pressure, the strong balance sheet and stable cash flow position suggest an overall healthy financial status. Continued focus on improving margins and operational efficiency could enhance future performance.Income Statement
First Commonwealth has shown consistent revenue growth, with a notable increase in total revenue from 2019 to 2024. However, the net profit margin decreased from 33.6% in 2023 to 23.7% in 2024, indicating a decline in profitability. Despite this, the positive revenue growth trajectory and gross profit margin stability suggest a solid performance in generating revenue.70
Positive
Balance Sheet
The company's debt-to-equity ratio improved significantly from 0.57 in 2020 to 0.06 in 2024, showing effective debt management. The equity ratio is stable, indicating a strong equity base relative to assets. However, the return on equity decreased slightly, showing some challenges in generating returns on equity.65
Positive
Cash Flow
Free cash flow has been consistent, with a slight decrease in 2024 compared to 2023. The operating cash flow to net income ratio decreased, indicating a need to enhance operational efficiency. Despite this, the cash flow position remains strong, providing a stable financial footing.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 478.12M | 467.27M | 410.93M | 385.30M | 362.75M | Gross Profit |
| 600.46M | 626.39M | 380.23M | 358.63M | 337.98M | EBIT |
| 4.59M | 261.23M | 185.27M | 172.82M | 90.20M | EBITDA |
| 0.00 | 215.74M | 2.83M | 2.32M | 1.41M | Net Income Common Stockholders |
| 142.57M | 157.06M | 128.18M | 138.26M | 73.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.25B | 146.99M | 916.90M | 1.45B | 1.20B | Total Assets |
| 11.58B | 11.46B | 9.81B | 9.55B | 9.07B | Total Debt |
| 80.14M | 749.76M | 553.92M | 320.58M | 350.63M | Net Debt |
| -24.91M | 602.76M | 399.67M | -74.79M | -5.95M | Total Liabilities |
| 10.18B | 10.15B | 8.75B | 8.44B | 8.00B | Stockholders Equity |
| 1.41B | 1.31B | 1.05B | 1.11B | 1.07B |
| Cash Flow | Free Cash Flow | |||
| 129.46M | 140.73M | 140.21M | 154.41M | 98.08M | Operating Cash Flow |
| 129.46M | 162.76M | 151.41M | 165.05M | 105.70M | Investing Cash Flow |
| -121.72M | -586.28M | -588.79M | -565.30M | -483.14M | Financing Cash Flow |
| -21.32M | 416.26M | 196.25M | 439.05M | 612.16M |
First Commonwealth Technical Analysis
Negative
15.54
Price Trends
16.16
Negative
16.93
Negative
16.38
Negative
Market Momentum
-0.16
Negative
40.73
Neutral
27.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCF, the sentiment is Negative. The current price of 15.54 is below the 20-day moving average (MA) of 15.69, below the 50-day MA of 16.16, and below the 200-day MA of 16.38, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCF.
First Commonwealth Risk Analysis
First Commonwealth disclosed 32 risk factors in its most recent earnings report. First Commonwealth reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Commonwealth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.83B | 9.52 | 16.19% | 2.48% | 12.13% | 10.42% | |
75 Outperform | $1.48B | 11.13 | 12.51% | 2.36% | 12.26% | 7.48% | |
67 Neutral | $1.58B | 11.10 | 10.49% | 3.36% | 11.61% | -9.42% | |
63 Neutral | $14.20B | 10.11 | 9.01% | 4.34% | 16.34% | -11.27% | |
62 Neutral | $3.27B | 11.44 | 9.69% | 3.84% | 21.10% | -4.20% | |
61 Neutral | $909.08M | 12.68 | 10.25% | 3.89% | 41.65% | 668.73% | |
61 Neutral | $4.93B | 12.50 | 7.62% | 4.30% | 6.80% | 1.48% |
* Financial Sector Average
Performance Comparison
FCF
First Commonwealth
15.54
2.47
18.90%
SRCE
1St Source
59.81
10.82
22.09%
FULT
Fulton Financial
18.09
3.19
21.41%
OFG
OFG Bancorp
40.24
5.03
14.29%
TMP
Tompkins Financial Corporation
62.98
17.22
37.63%
UBSI
United Bankshares
34.67
1.74
5.28%
First Commonwealth Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -6.89% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with strong deposit growth, improved credit metrics, and strategic acquisitions as highlights. However, challenges with loan growth, elevated credit costs, and net interest margin compression were noted as lowlights.Highlights
Strong Deposit Growth
Average deposits grew 8.7% in the fourth quarter, with a year-over-year increase of $451.1 million or 5%.
Improvement in Credit Metrics
Non-performing loans (NPLs) declined from 0.83% to 0.68%, and reserves-to-loans remained above peer levels.
Fee Income Resilience
Despite a $6.7 million impact from the Durbin Amendment, fee income increased year-over-year by $2.6 million due to improvements in mortgage, wealth, and SBA.
Strategic Acquisition
Announced acquisition of CenterBank in Cincinnati, which is expected to contribute positively to earnings from the third quarter of 2025.
Net Promoter Score and Customer Satisfaction
Customer experience metrics improved with historic highs in Net Promoter Score and branch customer satisfaction.
Lowlights
Loan Growth Challenges
Loan growth was modest at $23.5 million in the fourth quarter, with an annualized growth rate of just 1.04%.
Credit Costs and Charge-Offs
Elevated credit costs and charge-offs were noted, largely driven by acquired Centric loans, though these were previously reserved for.
Interest Margin Compression
Total net interest margin (NIM) compressed by 2 basis points in the fourth quarter.
Deposit Pressure
Deposit pricing pressure persisted, with a modest 1 basis point decline in total deposit cost.
Company Guidance
During the Fourth Quarter 2024 Earnings Conference Call, First Commonwealth Financial Corporation provided detailed guidance on their financial performance and outlook. The company met consensus earnings estimates of $0.35 per share with a pre-tax pre-provision ROA of 1.77% and ROE of 1.23%. Their net interest margin (NIM) stood at 3.54%, while the core efficiency ratio was reported at 56.1%. The company saw an 8.7% increase in average deposits for the quarter, attributed in part to a large commercial customer deposit, and a 5% increase year-over-year. The loan-to-deposit ratio improved to 92.5%, indicating room for lending growth. First Commonwealth anticipates mid-single-digit loan growth in 2025, driven by commercial real estate and C&I loans, and expects NIM to expand by 10 to 20 basis points by the end of 2025. Fee income is projected to be around $22 million to $23 million per quarter starting in the first quarter of 2025. The company also highlighted improvements in credit metrics, with non-performing loans declining from 0.83% to 0.68%. Additionally, they announced the strategic acquisition of CenterBank, expected to close in the second quarter of 2025, which is projected to contribute about $0.01 per share to EPS per quarter starting in the third quarter. The company remains optimistic about their balance sheet's position for growth and profitability heading into 2025.First Commonwealth Corporate Events
DividendsFinancial Disclosures
First Commonwealth Reports Mixed 2024 Financial Results
Neutral
Jan 28, 2025
First Commonwealth Financial Corporation, a financial services provider, reported its financial results for the fourth quarter and entire year of 2024, showcasing a mixed performance compared to previous periods. The firm announced a quarterly cash dividend of $0.13 per share as of January 28, 2025, alongside a net income of $35.8 million for the fourth quarter, marking an increase from the previous quarter but a decrease from the same period in 2023. The report highlighted growth in average deposits and total loans, particularly in Equipment Finance and Commercial Real Estate, while also noting declines in net interest income and noninterest income compared to the prior quarter.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.