First Commonwealth's quarterly profit more than doubled, largely because of significant improvement in credit quality.
The $6.3 billion-asset company said in a press release Wednesday that its second-quarter earnings totaled $11.9 million. The Indiana, Pa., company earned $5.8 million in the same quarter a year earlier. Earnings of 13 cents a share were in line with average estimate of analysts polled by Bloomberg.
Improvements in asset quality drove the profit increase. The company slashed its loan-loss provision by 69%, to $3.3 million. Net chargeoffs fell 55%, to $7.1 million.
Income from interest-bearing assets fell by 1%, to $45.3 million. The net interest margin compressed by 9 basis points, to 3.26%.
A one-time gain on the sale of real estate also boosted earnings. Noninterest income jumped 14%, to $17 million.
Operating expenses rose just 1%, to $46.2 million. The company attributed the increase to a conversion of its IT systems and higher salary-related costs.