Q3 2024 First Commonwealth Financial Corp Earnings Call Transcript
Key Points
- First Commonwealth Financial Corp (FCF) reported core earnings per share of 31 cents for the third quarter of 2024.
- Deposits grew, contributing to a reduction in the loan-to-deposit ratio by 360 basis points to 92.5%.
- The company achieved recognition as the number two SBA lender by dollars in Western Pennsylvania for the 2024 fiscal year.
- Customer satisfaction and net promoter scores reached five-year peaks, indicating strong customer relations.
- The company has been successful in attracting new commercial banking talent, which is expected to drive future growth.
- Net interest margin fell by one basis point to 3.56%, impacted by a rate cut and excess cash holdings.
- Provision expense increased by $2.8 million over the second quarter, largely due to specific reserves for legacy loans and charge-offs related to the Centric acquisition.
- The acquired Centric portfolio continues to impact credit performance, accounting for a significant portion of charge-offs.
- Expenses were elevated at $70.1 million, up $4.3 million from the previous quarter, due to one-time items such as operational losses and severance expenses.
- The company experienced a $3 million decrease in interchange income due to the Durbin amendment, impacting non-interest income.
Thank you for standing by and welcome to the First Commonwealth Financial Corporation third quarter, 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again. Press the star one. Thank you. I now like to turn the call over to Ryan Thomas, Vice President of Finance and Investor Relations. You may begin.
Thanks Rob and good afternoon, everyone. Thank you for joining us today to discuss First Commonwealth Financial Corporation's third quarter. Financial results participating on today's call will be Mike Price President and CEO Jim Reske, Chief Financial Officer, Jane Grabens Bank President and Chief Revenue Officer, Brian Saki, Chief Credit Officer, and Mike mcewen, our Chief Lending Officer as a reminder, a copy
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