First Commonwealth misses Q3 profit estimates on higher costs, credit loss provisions
Overview
U.S. regional bank's Q3 adjusted EPS and adjusted net income missed analyst expectations
Net interest income and margin increased, but provision for credit losses also rose
Company authorized additional $25 mln share repurchase program
Outlook
Company did not provide specific financial guidance for future periods in its press release
Result Drivers
NET INTEREST MARGIN EXPANSION - Co said Q3 net interest margin rose due to lower deposit costs, higher loan yields and upward repricing of fixed-rate loans
HIGHER PROVISION EXPENSE - Co said provision for credit losses increased due to reserve build for unfunded commitments and three commercial credits, two transferred to nonaccrual status
OPERATING EXPENSES - Co said noninterest expense rose, driven by higher salaries and benefits, asset write-downs, equipment costs and FDIC insurance
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Miss | $0.45 | $0.46 (7 Analysts) |
Q3 EPS | $0.45 | ||
Q3 Adjusted Net Income | Miss | $45.44 mln | $45.92 mln (7 Analysts) |
Q3 Net Income | $44.94 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for First Commonwealth Financial Corp is $24.00, about 14.2% above its October 27 closing price of $21.02
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)