NYSE:FCF

Stock Analysis Report

First Commonwealth Financial

Executive Summary

First Commonwealth Financial Corporation, through its subsidiaries, provides consumer and commercial banking services to individuals, and small and mid-sized businesses in the United States.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has First Commonwealth Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.5%

FCF

0.7%

US Banks

2.4%

US Market


1 Year Return

-31.1%

FCF

-28.9%

US Banks

-10.0%

US Market

Return vs Industry: FCF matched the US Banks industry which returned -32.9% over the past year.

Return vs Market: FCF underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

FCFIndustryMarket
7 Day5.5%0.7%2.4%
30 Day-7.2%-18.9%-11.0%
90 Day-34.5%-39.2%-19.4%
1 Year-29.1%-31.1%-26.8%-28.9%-8.1%-10.0%
3 Year-18.9%-25.0%-17.2%-23.3%17.3%9.6%
5 Year16.0%1.2%8.1%-4.4%36.1%21.1%

Price Volatility Vs. Market

How volatile is First Commonwealth Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Commonwealth Financial undervalued compared to its fair value and its price relative to the market?

45.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCF ($8.93) is trading below our estimate of fair value ($18.35)

Significantly Below Fair Value: FCF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FCF is good value based on its PE Ratio (8.3x) compared to the Banks industry average (8.6x).

PE vs Market: FCF is good value based on its PE Ratio (8.3x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: FCF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FCF is overvalued based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is First Commonwealth Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCF's earnings are forecast to decline over the next 3 years (-2.1% per year).

Earnings vs Market: FCF's earnings are forecast to decline over the next 3 years (-2.1% per year).

High Growth Earnings: FCF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FCF's revenue (4.5% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: FCF's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCF's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has First Commonwealth Financial performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCF has high quality earnings.

Growing Profit Margin: FCF's current net profit margins (31.1%) are lower than last year (32.9%).


Past Earnings Growth Analysis

Earnings Trend: FCF's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: FCF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FCF had negative earnings growth (-2%) over the past year, making it difficult to compare to the Banks industry average (10.9%).


Return on Equity

High ROE: FCF's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is First Commonwealth Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FCF's level of assets compared to its equity is low.

Allowance for Bad Loans: FCF has a sufficient allowance for bad loans.

Low Risk Liabilities: FCF's liabilities are made up of primarily low risk sources of funding.

Loan Level: FCF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FCF's loans are broadly funded by customer deposits.

Level of Bad Loans: FCF has an appropriate level of bad loans (0.52%)


Next Steps

Dividend

What is First Commonwealth Financial's current dividend yield, its reliability and sustainability?

4.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FCF's dividend (4.93%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: FCF's dividend (4.93%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: FCF's dividend payments have been volatile in the past 10 years.

Growing Dividend: FCF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.3%), FCF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCF's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Mike Price (56yo)

8.25s

Tenure

US$1,100,205

Compensation

Mr. Thomas Michael Price, also known as Mike, has been the Chief Executive Officer and President of First Commonwealth Financial Corporation since March 7, 2012 and serves as its Chief Executive Officer of ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.10M) is below average for companies of similar size in the US market ($USD3.25M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Price
President8.25yrsUS$1.10m0.25% $2.2m
Jane Grebenc
Executive VPno dataUS$873.17k0.11% $988.7k
James Reske
Executive VP6yrsUS$784.95k0.061% $552.4k
Matthew Tomb
Executive VP9.42yrsUS$622.96k0.061% $549.4k
Brian Karrip
Chief Credit Officer & Executive VP3.33yrsUS$737.94k0.051% $460.7k
Ryan Thomas
Vice President / Finance and Investor Relationsno datano datano data
Linda Metzmaier
Chief Compliance Officer8.42yrsno datano data
Amy Jeffords
Assistant Vice President of Communications & Community Relationsno datano datano data
Carrie Riggle
Executive Vice President of Human Resources7.08yrsno data0.043% $389.6k
Norman Montgomery
Executive VP & Business Integration Group Managerno dataUS$478.81k0.075% $676.2k

7.7yrs

Average Tenure

53yo

Average Age

Experienced Management: FCF's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Price
President8.25yrsUS$1.10m0.25% $2.2m
Jon Gorney
Independent Director7.25yrsUS$92.00k0.024% $216.4k
David Dahlmann
Chairman of the Board & Lead Director14.25yrsUS$180.00k0.056% $505.3k
Ray Charley
Independent Director22.25yrsUS$80.00k0.31% $2.8m
Johnston Glass
Independent Director34.25yrsUS$92.00k0.080% $721.8k
Robert Ventura
Independent Director16.25yrsUS$92.00k0.048% $435.0k
David Greenfield
Independent Director10yrsUS$92.00k0.036% $329.3k
Julie Caponi
Independent Director13yrsUS$94.50k0.047% $426.9k
Luke Latimer
Independent Director9yrsUS$72.00k0.15% $1.3m
Gary Claus
Independent Director9yrsUS$80.00k0.039% $356.1k

11.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: FCF's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FCF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First Commonwealth Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Commonwealth Financial Corporation
  • Ticker: FCF
  • Exchange: NYSE
  • Founded: 1934
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$903.285m
  • Shares outstanding: 98.08m
  • Website: https://www.fcbanking.com

Number of Employees


Location

  • First Commonwealth Financial Corporation
  • 601 Philadelphia Street
  • Indiana
  • Pennsylvania
  • 15701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCFNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1990
FCFDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1990

Biography

First Commonwealth Financial Corporation, through its subsidiaries, provides consumer and commercial banking services to individuals, and small and mid-sized businesses in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (ATM) services, as well as Internet, mobile, and telephone banking services. The company’s commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. It also offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. As of March 4, 2019, the company operated 137 community banking offices in western and central Pennsylvania, as well as northeastern, central, and southwestern Ohio. It also leases 3 mortgage loan production offices and 3 corporate loan production offices, as well as operates a network of 150 automated teller machines. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 00:34
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.