First Commonwealth Financial Corp (NYSE:FCF) Q2 2022 Earnings Conference Call July 27, 2022 2:00 PM ET
Company Participants
Ryan Thomas - VP, Finance and IR
Thomas Price - President, CEO & Director
James Reske - EVP, CFO & Treasurer
Conference Call Participants
Stephen Moss - B. Riley Securities, Inc.
Karl Shepard - RBC Capital Markets
Michael Perito - KBW
Frank Schiraldi - Piper Sandler & Co.
Matthew Breese - Stephens Inc.
Daniel Tamayo - Raymond James & Associates
Operator
Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Commonwealth Financial Corporation Second Quarter 2022 Earnings Call. [Operator Instructions].
Ryan Thomas, Vice President of Finance and Investor Relations, you may begin your conference.
Ryan Thomas
Thank you, Emma, and good afternoon, everyone. Thank you for joining us today to discuss 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 3 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. Reconciliation of these measures can be found in the appendix of today's slide presentation.
With that, I will turn the call over to Mike.
Thomas Price
Thank you, Ryan, and welcome, everyone. Net income of $30.8 million produced core earnings per share of $0.33 for the second quarter of 2022, which was up by $0.04 over the first quarter, robust annualized loan growth of 10.8% ex PPP, coupled with net interest margin expansion to 3.38% helped drive a $5.5 million improvement in net interest income to $73.7 million and a $5.8 million improvement in core pretax pre-provision net revenue to $42.5 million in the second quarter, and that's despite a $1.2 million decline in PPP income, noninterest or fee income was up $535,000 in the second quarter to $24.5 million, as increases in swap, interchange income and mortgage were offset by a downdraft in SBA gain on sale income.