First Commonwealth Financial Corporation (NYSE:FCF) Q2 2023 Earnings Conference Call July 26, 2023 2:00 PM ET

Company Participants

Mike Price - President, Chief Executive Officer

Jim Reske - Chief Financial Officer

Jane Grebenc - Bank President, Chief Revenue Officer

Brian Karrip - Chief Credit Officer

Ryan Thomas - Vice President of Finance, Investor Relations

Conference Call Participants

Daniel Tamayo - Raymond James

Karl Shepard - RBC Capital Markets

Michael Perito - KBW

Manuel Navas - D.A. Davidson

Matthew Breese - Stephens

Daniel Cardenas - Janney Montgomery Scott

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Commonwealth Financial Corporation, Second Quarter ‘23 Earnings Release Conference Call.

I would now like to turn the conference over to Ryan Thomas, Vice President of Finance and Investor Relations. Please go ahead.

Ryan Thomas

Thank you, Bundy, and good afternoon everyone. Thank you for joining us today to discuss the First Commonwealth Financial Corporation's Second Quarter Financial Results.

Participating on today's call will be Mike Price, President and CEO; Jim Reske, Chief Financial Officer; Jane Grebenc, Bank President and Chief Revenue Officer; and Brian Karrip, our Chief Credit Officer.

As a reminder, a copy of yesterday's earnings release can be accessed by logging on to fcbanking.com and selecting the Investor Relations link at the top of the page. We have also included a slide presentation on our Investor Relations website with supplemental financial information that will be referenced during today's call.

Before we begin, I need to caution listeners that this call will contain forward-looking statements. Please refer to our forward-looking statements disclaimer on page three of the slide presentation for a description of risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements.

Today's call will also include non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to and not as an alternative for our reported results prepared in accordance with GAAP. A reconciliation of these measures can be found in the appendix of today's slide presentation.

And with that, I'll turn it over to Mike.

Mike Price

Hey. Thank you, Ryan, and welcome everyone. Net income of $42.8 million translated to $0.42 of earnings per share, which beat consensus estimate by $0.001. Other headline figures include a 1.45% core ROA, a 52.8% efficiency ratio and a net interest margin of 3.85%.

On a linked quarter basis, our net interest income was up $3.5 million to $98.1 million, despite some NIM contraction. As a full quarter of the Centric acquisition hit the income statement, loans grew, and average deposits increased.