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INDIANA, Pa. - First Commonwealth (NYSE:FCF) Financial Corporation (NYSE:FCF) disclosed its financial outcomes for the third quarter of 2024, revealing a net income of $32.1 million, marking a decline from the previous quarter's $37.1 million and from $39.2 million in the third quarter of 2023. Diluted earnings per share also decreased to $0.31 compared to $0.36 in the prior quarter and $0.38 in the same period last year.
The company's net interest income (FTE) for the quarter was $96.9 million, a slight rise from the last quarter but a decrease from the third quarter of 2023. In terms of asset quality, the provision for credit losses increased to $10.6 million, up from $7.8 million in the previous quarter. Nonperforming loans also saw a rise, amounting to $74.7 million, which is an increase from the previous quarter's $57.1 million.
The bank reported a decrease in total loans by $33.4 million, attributing the reduction primarily to a fall in consumer real estate loans. Conversely, average deposits saw an increase, attributed to growth in average time deposits and interest-bearing demand and savings, partially offset by a decrease in average noninterest-bearing deposits.
First Commonwealth's President and CEO, T. Michael Price, commented on the results, highlighting the bank's solid pre-tax pre-provision ROAA and stable net interest margin, alongside significant deposit growth. Price acknowledged the impact of the Durbin amendment but pointed to the company's diverse revenue sources to mitigate the reduction in fee income.
The bank's capital ratios remain above the fully phased-in Basel III capital requirements, and a common stock quarterly dividend of $0.13 per share was declared, payable on November 22, 2024, to shareholders of record as of November 8, 2024.
This financial report is based on a press release statement from First Commonwealth Financial Corporation.
InvestingPro Insights
First Commonwealth Financial Corporation's (NYSE:FCF) recent financial results can be further contextualized with additional insights from InvestingPro. Despite the reported decline in net income and earnings per share, FCF maintains a strong dividend profile. An InvestingPro Tip highlights that the company has raised its dividend for 7 consecutive years, demonstrating a commitment to shareholder returns even in challenging times.
The bank's P/E ratio stands at 10.88, which is relatively low compared to many in the financial sector. This could suggest that the stock might be undervalued, especially considering the company's consistent profitability, as another InvestingPro Tip confirms that FCF has been profitable over the last twelve months.
Interestingly, while the recent quarterly report showed a decrease in total loans, InvestingPro data reveals a revenue growth of 6.55% over the last twelve months as of Q2 2024. This growth, coupled with a dividend yield of 3.04%, may appeal to income-focused investors.
It's worth noting that FCF has experienced a significant price uptick of 29.85% over the last six months, according to InvestingPro data. This positive momentum, combined with the company's dividend history and current valuation metrics, presents a nuanced picture for investors considering FCF stock.
For a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into First Commonwealth Financial Corporation's financial health and market position.
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