FCF - Earnings call transcript Q1 2024 | First Commonwealth Financial Corporation

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Operator

Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator for today. At this time, I would like to welcome everyone to the First Commonwealth Financial Corporation First Quarter 2024 Earnings Release Conference Call. [Operator Instructions].

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

Ryan Thomas

Mike and and us Desiree, Executive. McCuen, First everyone. you our Jane Officer; will Thank Financial Reske, Revenue CEO; Thank Financial Chief Revenue Chief to good Corporate Officer; discuss our joining Officer; be call today's today Participating Bank Corporation's Mike President First for Banking and Results. Jim President you, Grebenc, on afternoon, Price, Chief Commonwealth and Quarter Karrip, Financial Brian

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

I will in include of forward-looking risks an call the uncertainties in and slide need these forward-looking for can to today's refer caution from the slide a as to presentation. financial statements. differ the to results this in presentation Page addition also of be GAAP. Today's non-GAAP to not Non-GAAP those listeners financial alternative reported be cause found our measures accordance our forward-looking contain materially statements. reflected with call X and we should prepared in for Before that measures. of viewed begin, could will actual Please measures Reconciliation appendix of results statements on disclaimer that description

Mike. I And turn to will with the over call that,

Thomas Michael Price

but and were $X.XX ROA the the celebrating, a bank XX.XX%, costs, was Despite had affects XXXX. consensus fleet records X.XX% particularly XXXX in First first set most a and certainly period-over-period The fourth worth share strong comparisons. margin and number net higher Thank earnings with it That depository of of interest earnings Core quarter. ratio in respectively. per efficiency ] and everyone. of welcome, the the [ on $X.XX quarter Ryan, you, estimates by pressure Commonwealth through

of due in For the $X.X of million example, release fourth we -- XXXX, quarter of expense to provision the negative had reserves.

expense and million. affected This was tangible assets financial quarter-over-quarter EPS, on return provision quarter more swing typical equity. metrics on That like comparisons return common strongly a core of $X.X

interest $X.X last overwhelming net in income. in the million by a expense decline addition, In million increased the interest million quarter, increase resulting and over $X.X income $X.X in interest

quarter. the pre-provision core pretax that report core in As result, on pre-provision revenue also pre-provision core a a ROA, non-GAAP pretax measures basis, such net from last they we declined as

consumer due our based our million annualized and quarter X.X% XX.X% while quarter. on loan-to-deposit customers, primarily behavior. conditions, Importantly, consumer increased competitor core of seasonal XX.X% ratio from continue end or and consumer taper We've to the fell deposits over to constituted begun from of to million. first business $XX year-end XX.X% or we'll growth watch liquidity market rates growth, fell deposits bulk factors. deposit while CD pricing and balance strengthened as CDs to loans increased annualized first at sheet at $XXX the End-of-period the just

balances X.XX% balances but Loan more no of sheet declines quarter offset the much an the commercial for growth mid-single-digit loans consumer consumer side in low is the line growth Commercial towards right with in to the in grew appear at annualized guidance. and lending. our tilt balance long-term commercial plan us, it's rate surprise. for may to estate That line our movement long-term in on be with very real

including loans our mortgage of increased XX% last and over mortgage over income in originations, selling now mortgage sale on fact, gain We're construction fee quarter.

book Overall, slow with during environment our the is because declines provide [ or driven replacing rate those ] down our of commercial and and the balances refi loans key and we the HELOCs portfolio a by as current and like strengths lot and loans capital any Second pricing loan were auto upward naturally HE mid-single-digits one our maintain exactly because lean runoff activity given the are of of and also pandemic. modest nicely products liquidity grow diversification quarter the in even us of consumer to growth as see planned. balances in guidance. And

big we businesses then ahead. that years bank part core grow and deposits, growth. be regionally execute income, best their As in will and owners fee profitably for the the loans, grow Becoming we will meaningfully a of

and capital at growth First Columbus Commonwealth. present for Cincinnati opportunities The significant regions

management growth truth. low-cost uneventful Our number We've Since C&I this of maintain have our branch quarter further regional appear effort loan success. to Lending from September, With the and momentum scalability us, ensure expertise. made to be changes new our our the nothing funding from Chief the more and enduring business-based and Officer led internal made improve operational mild to create outside concerted upgrade but also a for deposit hiring might advantage. have like our an that gathering we a leadership, efforts could was last

same and Some Banking in in and commercial new management X regional of We've Cincinnati, include portfolio commercial Pittsburgh new the recent new Harrisburg also Corporate leadership naming hired Head region new bankers during presidents period. actions and loan a the documentation.

improving so a other our to of that we transformation and In like keep can results culture out. in we words, say, improvement, to As actively cultivate feet and financial year steadily we year we moving. always continual

over to with CFO, that, our it Jim, turn I'll And

James Reske

Thanks, Mike.

us growth, excess of deposit did liquidity expansion. it as improved Not our down earnings modest balance I'd left loan-to-deposit absence strong $XXX well. margin growth, also activity highlight break it mentioned, the quarter, with combined statement, buyback only and million and due with in balance I ratio elements items. any coupled few to income other the the a Before of the the ratio, at quarter. as modest sheet sheet of to Strong capital of down with cash the loan bring end but the improved Regulatory like retained Mike has

liquidity and first strength capital with to The announce our improved allowed us has actions X earnings. of our internal quarter position generation

First, long-term the and dividend goal our of [ prior in dividend increases smooth for years in a regular increase and shareholders. our year ] per of in with the $X.XX keeping steady

redemption for And was debentures $XXX million secondly, the reasons. timing redemption subordinated The several right of in of outstanding this June on $XX of our million X.

First, treatment sub the [indiscernible] debt would X June refinancing and capital another on options expenses. lost have of Tier its X bit of XX%

improved cap in in well. XX ratios XX by quarter further modeled impact And the risk-based second points. of the quarter, basis consolidated points we the [indiscernible] the total second have in ratio basis Second, quarter. as organically debt mostly the basis That offsets in sub capital XX our organic growth point

the to at repurchase additional the without fund Third, taking liquidity quarter excess provided cash any borrowings. end with on which the

this Fed the we're about sub of coupon at earning paying Finally, in funds off sitting of debt currently the X.XX%, X.X%. currently was it the that tranche and are

million about will approximately company pretax X year $X improved save basis redemption point. per it's the and interest So NIM net in the expense or by margin

deposit first net of basis quarter NIM strong in quarter. interest XX in expense the margin came the a at points Our the build our compressed as by

XX the that the producing didn't went in basis that, the and resulting about negatively anticipated several top of continued would turn quarter Instead, loans cost stability. matching On a originated macro in basis XX points. earning points X%, the up in yield the received points off running In we on over we XX replacement expected increase to that point out yield ago. the ones of were NIM assets basis aggregate X% funds, the approximately fixed new only had assets XX loan at of yield old earning quarter, impacted XX but by basis just the yields. modest of the improve the that first in and We first the on improved entered funds into portfolio effect in are that X relatively aggregate, to swaps by was way. It years by cost

on in runoff we to XXXX, to which Fortunately, XXXX, the the $XX points, on X X runoff produce another year, million those off Those depending to expect swaps million who of trajectory point rates. of but a $XX $XXX NIM XX December. benefit this have the NIM XX only basis benefit in cumulative a further basis in and a to June of million of run

be If rates benefit the swap will of roll-off side macro the high the of the on longer, stay higher range. that

we points $XXX On increased basis by the in quarter. balances, as saw a liability gains more the in saw the in consumer net $XXX increase Despite in category. million low-cost XX a million decline we the with expensive deposit side, costs categories, movements combined households in deposit

dollars strategies just attracting In effective, been fact, the we're deposits, our have our to in but retaining pricing new bank. deposit not

we funding cost benefited participation of the While up term in XX Reserve's quarter. the by up basis cost went because went deposits XX the only bank in basis funds points, points the of from program Federal

still We on got and was over borrowed just curve. in pricing Fed program a the the million, borrowings the $XXX forward while

So to the didn't less at we We Fed's rate. we in borrowings borrow March. with much X.XX% the the are grandfathered because and time on that's We those arbitrage was at enter the speak, intent next what until simply FHLB. the to rate than so program the that needed

with is the rate BTFP pay now, to million on $XXX in enjoyed in ended Fed excess first the deposit cash differential, the the borrowings. the the the prefer would we use we But we why from for to at quarter Ordinarily, we given deposit generation growth which quarter off at stay strong X.X%. program

the quarter. accretive about While effect basis a on have first XXXX, $X.XX a share NIM point tune it's in of income the in and the X obviously did to to suppressive it

was up That good. rates. noninterest nonexistent quarter. reversal to compared in back-to-back are have comparison with and income quarter quarter. quarter that expense was were fourth swap to accrual SBA by affected benefited but interchange spending. changed, were by expense income tax fixed higher first last expense to We a from see gain pleased, desire mortgage quarter both the pick customers noninterest seasonally last in holiday lock and little And also the The fourth to last sale fees however, and the Fee unfavorable occupancy little and to quarter. as down slightly was

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

Thomas Michael Price

operator, pause And could for we if Jim. questions. Thanks, some

Operator

now We will the session. Instructions] begin question-and-answer [Operator

line of question Daniel James. first the with comes Your Raymond Tamayo from

Daniel Tamayo

as rest margin fill I quarter how with what's you're the well even the you margin for core all 'XX first year? detail can on Maybe, swaps. those and rest on margin puts the appreciate year path coming Jim, the the total the in and the But as of and in the about next kind maybe the takes into of thinking the of in the us of

James Reske

Yes, thanks.

cognizant very prepared last absent the forecast you clear compressed that You any remarks, points conscious. And be, we that NIM. the we that the forward. quarters of of and But as fact there's row, would forecasting in have the forecast that to were the from may instability I from every a can same that XX of have quarter. the suggests noticed basis yet X we're about be was just my tell margin NIM thing, kind -- stability going in by I

So that is our forecast.

something were account probably quarters [ longer caught That's last year, down we end to at pencils that X.XX% -- and forecasts actually better environment, those environment. those at in down So on the about will say, better the better. even will the are that. ] sharpened It cuts. preparation our deposit are we couple we rate NIM I were out the year, in gotten cuts, forecast of benefit think of a into by last a -- the rate forecasting have higher catching the in Those the falling gotten I in movements. funds forecasts environment of project X we've value rate that rate slows take Fed

our So depositors to we're going. understand trying where are

of And we've back growth bit. this and disparity deposit little a light growth between saw aggressiveness rates the quarter, the of also, loan deposit in the

we're and that's So line out there, have loan of specialists market deposit that now, growth about we in going thinking of with specialists. growth achieve stability hopefully target. still how they're these top that's Dan. it the more not kind But probably but And to bring

Daniel Tamayo

the be Okay. And then there? the clear, very funds into all the basis X assumption at X your the just that's from That's point to in baked from XXXX negative window, basis benefit swaps mean, Fed impact, helpful. and point I

James Reske

far. of the effect now, a talked cash a suppressant points on I hand that bit -- Fed the has is down here It at second cash X about. X% of right so reason come this basis that the The have first quarter I is, a bit -- little the lot in little in the

million basis $XXX the now. we're right So of $XXX quarter, it sales X it without have right for X at or would points impressive selling million about school, out about effect. If stayed full

But we come program impressive be would attractive thin of it. it's it, $XXX though it first to because stayed at X now we excess a effect. That's going got little $XXX basis average But we was generally the for And the it ended excess If X like business cash quarter, The the a is X we're off full points add, million, hopeful. cash. only the in and money $XXX average million. million quarter something was quarter quarter at only The or was points for effect. to sheet the basis nice that's little just we've margin XXX why pursue. find second down balance leverage even not a and of don't make impressive I stay for

we have year, loan growth X.X%. second the cash half a off at then the to pay those hate from that question that were the borrowing great hope And FHLB the of bit excess borrowings on and would clarifies in we anyway. little things I again find we

Daniel Tamayo

guess, just the go in what what of the where then thoughts first quarter lastly, and contribution and are It on then year? it does. was Yes, may rest accretion, does. your that the to the I

James Reske

Or sorry, you what EPS I'm accretion? mean? do

Daniel Tamayo

discount accretion, purchase accounting. sorry, I'm

James Reske

each was and X basis It's X quarter. X It every first quarter. it about by think basis points points basis I out be in going quarter quarter. points fading out basis the the was for fading to point X

Operator

question the from Our Markets. Karl line of RBC Shepard Capital with comes next

Karl Shepard

for take margin Jim, the I the can of a is that think the couple about little kind to we in mean to those should discussion wanted away XX, you drift higher talk near-term that on over Slide margin it? pick up Is bit. the should the on to that When way think of overall off. a stability next about us and swaps 'XX quarters? message roll I we fair

James Reske

could. about and If are to -- the the your those lot under deposit rates bit bring we're the -- and getting a and replacement question stay closer little It can macro high a those But is tick yields we costs up of closer control. swaps.

closer getting to So we just maturities.

support down a those earnings PowerPoint in we some that is we'd maturities, portion supplement provide of Relations the website. swap impact on disclosure XX of up that NIM the. cumulative for swaps rate call produce answer that bar those off, kind of effect from maybe supplement of the benefit it it until will you that that only those. that next higher rate The can directly, about just and work and could environment rolling have fixed year. But in the keep really for. longer it's stay help way, higher roll portfolio repricing real we So put then spell a of swap off our chart presentation Page that that our thought this for to Investor quarter the to the are is helpful out Microsofts off this that roll we and There's think of It's help. of Right, rate looking and we out those the a an kind the all presentations, -- of well. the macros And question loan page your that it maturities up on we're has will those stability things volume will but spells

Thomas Michael Price

right. in to points. a scenario cumulative margin baseline points basis flat a X your of scenario team XX Jim, and really modeled rate about impact falling the or basis accreting That's

material. it's And that's Karl. XXXX, So through

Karl Shepard

Yes.

case then but to we measured should guys growth so aligning do you know the trying quarter's are assumption? think a this year? you bit outstripping little on loan giving be runway I this is performance X, growth, loan this deposit fair Or of is got loans the about And you very Okay. we've quarter. next for of think

Thomas Michael Price

does think give it I runway. us

the of cost that first new that our through it X.X% deposits. even Centric with little then acquisition this us and if we loan a in And and can quarter, some think I we've growth notwithstanding last some. year. generate capital region proven

a importantly, estate year back of maybe will deposits. this bank, more we've quarter. next X turning And over bit, in we're growing as also and on C&I, or deal that. dial grown about excited the But real business, also excited about that growing core and deposit we're The corporate to better and but that SBA, years. which and the we're Jim each a households, mentioned, so taper going so the company And small X-plus better become the

And so our ability we're to future optimistic grow. about the and

James Reske

circle I actually question, next back, was our X.X%. points Before accretion I X in said basis could if

quarter purchase just record. That's accretion So X%. it around first the accounting ended, for the for just

Operator

comes question KBW. from Motta of the Next Kelly with line

Kelly Motta

loan guess, up of kind I growth. on I'm picking the up question picking on there.

you're most a you're pipelines opportunities where clients? wondering best where you and demand opportunities Just the your could bit about your if talk the seeing seeing from

Thomas Michael Price

now, the what Yes. we replacing at best. Right have and the is volume off on there consumer running really board, just across we're the pinched side,

commercial has pipeline. region. side, depending we C&I, tamped there. and -- real our are the down, the the commercial deal on the but will SBA And pretty a estate, demand or there somewhat X business is be On good a there building pipelines still

So we ago, where year, were would like each guide would X high in digits, it's the fulsome, eclipse maybe not growing we and seem that. we years like single

Now our is more guidance digits. probably like mid-single

Kelly Motta

helpful. super That's

mean Sorry to off. cut to you

Thomas Michael Price

This consideration of have of growth. Anything just President; President you Corporate No add. loan our worries. that and Grebenc, I the McCuen, Mike important is would on Banking. X our Jane Executive Vice an

Jane Grebenc

of Sure. couple things. A

on bullish of that the important hits that only XX% We sheet. and to are SBA, note balance it's

of the get gain on balance we ultimately The gets in and sale lieu other growth. XX% the sold income

now it's because see business reminded the good business. we'll probably the SBA best has SBA rate we are Brian able me that interest that So be booking we're today's environment. to approved under is seeing And

So this SBA Most business of is that all is stuff. good acquisition.

the a Mike pipelines -- and as then think they're we finally I and SBA prospects And so more said, the And muted, growing bit. the we customers but to recession maybe the right spend lot. a do little little corner, think starting bit around commercial seeing starting we like and isn't are I business is a to think business are

Kelly Motta

remarks, maybe had other you have in And Got just it. some heard from production then back the more mortgage, then And mortgage. selling SBA helpful. prepared in super fees, mentioned banks you switching quarter bit item. that mentioned to I've your and That's And there. a nice you a come actually for that line premiums

Just gain levels in on lines this rate if would this wondering good both for off of pretty was or is any sort quarter. QX run sale great. those items and were takes puts a be of If strong

Thomas Michael Price

Yes. thoughts? Jane, any

Jane Grebenc

feel harder I premiums And both going in rates have think the we dollar. businesses, about means right, we're have I in good come work you're for Well, down just to are It run the businesses but where don't overpromise, I the to think about want But both some. each we're we be. to volumes. --

Operator

line comes Matthew question with the Stephens. of Breese from Next

Matthew Breese

everybody. Mike, point a just Good afternoon, of clarification.

to the So traditionally, made it's quarter a but about probably similar in saw about this we've When loan you this point when inclusive, growth. see growth all mid-single-digit definitely consumer we'll we of talking commercial versus talk growth, you implying growth what kind means mid-single-digit year. difference usually quarter? rest and you that to for the loan commercial growth loan in all growth? we Or are Are just of

Thomas Michael Price

nice little indirect done the to some see Maybe consumer of job and which would tailwind a business. market the we little in maintaining particularly end side. consumer is all a auto, get it volumes, like which our from a in, maybe we've -- pricing I'd an means

in there we But -- maybe maybe the so have of is more and point to -- and it get so can half for and -- year, that And tipping year driven. but some the the be maybe second be will undoubtedly. a do be to have a tailwinds lot we commercially more whole would

Matthew Breese

Okay.

x on to than be So the kind of lower all-in factor. the with growth is loan likely growth of probably commercial mid-single-digit more the being side

Thomas Michael Price

the suspect to right, we're hold but to fire I internally going our X%. you're feet

Matthew Breese

Fair enough.

Jane Grebenc

consumer price, is blink right comfortable we to but up Mike, loan blinking, this turn would to The have minute. bit. have volume, auto more bit could softening than business we and we're a we'd little blink little on a

wanted compete if to So turn we to up, we'd on have it price.

Thomas Michael Price

That's right.

Matthew Breese

Jim, a Got for maybe All couple just it. then, right. And you.

hoping comments point pointed have securities the for do on X opening that color more deployment. more this around a those items, strategy at grew in bit. and liquidity out your little we Securities balance a was also bit liquidity sheet You on today. some I

James Reske

of but X.X the liquidities, and take Yes. excess can the right Obviously, duration. looking We're maybe duration and to we X- aggressively. Thanks X-year we're for always security We'll customer deploy at whenever not in Xs. the getting cash get asking. Really some high securities we in buy, now, at Fed. the overnight

a of So for but securities gotten when on-balance just little that bit in the bit yield always right terms now. just uncomfortably We've little bit it making low environment, to buy in back up probably It's loans from a year is up pickup rather the in but little a would got last helps we be security. rate liquidity. securities falling not little sheet now, tremendous a

there. we overnight into have use fund don't for we want finally securities deploy a to So it loan -- just just we're And it opportunity, have to borrowing had not loan growth. and we it to loan really growth. all to if We growth put the

that, of take loan as $XX we'll today, security to the maybe securities is happens thought million $XXX moment, X, my see take keep that we'll is if pay some June on what for left mean, on already growth we going But we it. -- disclosed I million whatever a I have eyes and have we'll our it, the cash. of growth, forward. go sub off we'll half if So some debt

Matthew Breese

than there. Expenses some provide is income that. some came appreciate I and expected this better appreciate then, on for Jim, forward you outlook actually total Okay. do of update what historically, expenses. the I'd and quarter, And in update fee kind

James Reske

our And changing things. isn't really in guidance those Yes.

expenses guidance given. going the I fee and previously the income think consistent to be with we've are the

think on I to the previous did So $XX the thought change -- consensus that it the for $XX mean and $XX need guidance to because to and I to I guidance on but was those $XX be our million million million. analyst I mean fee both million don't actually updated. was side, quarter, the

Matthew Breese

Understood.

Okay. office, And if eyes just credit. some keeping what disclosures, loans hear are then have an but overall more at on of update your love they're on you the about me bit a performing, and and All biggest little kind I'd office, anything the great night. typical of how to top is exposures in up sizes

Thomas Michael Price

loans There's $XX get office, always fact the probably comfortable between $XX a and that only XX few. XX. in million and from have we X million I over

down We've course And last central our business year. somewhat we're granular. district. of pretty exposure thin over pretty we're So the on worked the

want I some to there. us. think we do our have Karrip, just I color? Credit Officer you add with Brian, other $XX million Chief Brian have

Brian Karrip

and Sure, question. for your thanks

in both We X are million, have are strong one DSCRs, low Slide mature well. performing Both yields, #XX. above saw have we strong deals debt we $XX the that LTVs,

million that Third X quarter We're $XX of will months. for extending loan mature.

granularity is think questions. in how our gave emphasizes happy fairly complete. and portfolio, I'd who our could we to and out, with it The it we we see slide how answer overall stratify any and business. maturity it be think how how greater break our think we how office about about the you so are we and about the portfolio We emphasizes clarity ladder, we you

Matthew Breese

nature What is sorry, the extension. the -- of I'm the what's

Brian Karrip

to looking We're property. sell

each so so our agreed, And one have have we a proactive of approach borrowers. we with

a 'XX. one fact, what we we with understand to and your physical let's between then we that physical in mature about, And discussion say, we our and to versus properties sell the the so is occupancy tendency. In better and next our borrower, this to had them We extension, property. and clients so, Matt, do will And inspection can what a each step went wanted is of office economic exit. With did have out plan we an 'XX of doing went they said thoughts? are and X-month the orderly our meet

Matthew Breese

if And reserved That feel your that? there's like content for Okay. sense. loss you well makes any

Brian Karrip

performing Absolutely. -- -- it's that's performing.

Operator

Instructions] in, Navas Davidson. another [Operator question We Manuel from have comes line of D.A. the with coming

Manuel Navas

answered, of A have rates but I'm just different lot some of loan yields wondering on? things. well. of And what the I about been deposit marginal going rates came was What to for to questions was the I want ask -- as marginal the

James Reske

Yes.

So the overall used deposits of like -- new the X.XX% short-term about blend deposits current current is if volume, the we different rate the number threshold have coming was X.X%, [indiscernible] then a ] specialists And in. for the market X.XX%. money you specials on coming volume right [

Manuel Navas

able and little down little So You're that down a price it's was right? X.XX% last quarter, bit, to coming a bit.

James Reske

unit don't if up. think X.X blended from down be X.X%, We I last the last and that's rate X.XX, from it's CD should just should are. sorry, I'm Well, I quarter X.XX. overall say I'd -- a if last I and been Yes. this quarter, quarter, -- down that special have I be the would actually quarter. not mentioned said about

Manuel Navas

out had we there the indirect finance equipment strong and [ yields me new then yields, Remind ]? loan growth. And

James Reske

the out of around for quarter. Yes, you. for right the Xs after Indirect get X% dealer in and reserve, the I it net Equipment the think high to finance, was

Manuel Navas

And X% earlier, said in is around general? commercial roughly I think you

James Reske

little bit in yield a a X.XX%. [indiscernible] for the amount the is of X. quarter. commercial higher, The little X.X% And of Indirect the Yes, low

XXX at of X.X% that's came example, out XXX quarter, million for million the for off rolled Indirect, XXX. So X.X%,

So we just like way the it.

Manuel Navas

going Okay. was ask Nice. OpEx. I to a better question about

kind -- of didn't kind to of out improved just up going hospitalization is I -- is a think bounce expense, a back bit And bit linked it's to little going called of a you that... little that quarter? just

James Reske

it a to because around That's in on of Yes. our a we get We before We will a hospitalization quarter, given experience too self-insure. we But get We for around. quarter level. a expense but if cost in based don't experience. layoff, certain just once much, -- reinsured have we fair bounce does it about layer talked reinsurance [indiscernible] bounced hopeful given low, the to be hospitalization say. it have so of layer publicly, the good

Manuel Navas

Okay.

So staying as expected. previously

Operator

from with of comes Schiraldi Piper question Sandler. the Frank line Next

Frank Schiraldi

on terms of side about laid curious deposit out And of in you're not the at of still not the ratio Is also the kind like the CD loan-to-deposit high that of you're far. given kind And the the there? Just high, -- through flattish that it the the talked with end to commentary loan you line seeing seems expectations you here. guys the growth just so What's you that you're hold kind the and competitive. in market, kind of of obviously competitive rates you're thinking the was deposits what your that but year? be enough grow idea can tapering

Thomas Michael Price

there. a liquidity, terms to think want -- ago, we started help in of -- that's not. like flows the Jane, continue it's -- might and of daily -- commentary grow or and it to auto sparkling indirect a to daily, I done loans. the out our about watch portfolios you you has not the provide the every us getting want yields it we job but we to right, rates any with. we meter some great up year in team Yes, think where water of and And what how do the and are, it how that in does lending replacement whether of And is day impact in terms start consumer

Jane Grebenc

No, Mike.

do. exactly it it, simple that's but when you say Frank, what so we're sounds think to trying I Frank,

Frank Schiraldi

of that And curious the costs is this agree? in stabilize -- now Has of obviously, higher, terms deposit the existing pressure the point? at of mostly sort just terms stuff in is moving it money existing like has portfolio just to in

Thomas Michael Price

us thoughts, Jane, but don't some off? you lead give why I'll

Jane Grebenc

new it slowing rate months seeing is deposits. was we the the like Sure. it months see horrible. We it because we -- to any repricing X see we'd about pricing really Today, been -- but money we've ago, of potentially On in. XX% X gracious existing our given And normalize ago, we and book keep rather are felt repricing. bad. feels starting still see it's coming down. down. slowing And pretty of XX% money and that special about new

Thomas Michael Price

that Frank? helpful, Is

Frank Schiraldi

loan on expect just some the how some commercial yes, banks book. banks yes. going the given to And continued are is a here, we to here, you total lastly, mean, the for And the that grow it of to in are reserve the say you quarter-over-quarter trying of the increase commercial at what reserves of alone Should the you kind the -- build levels, about just coverage day, kind just driver reserve modest loan bit Yes, smaller where reserve like as that just seems thinking I bigger I curious about that? then is think just about to given that just of increase end of of ratio? mean be book? guys,

Thomas Michael Price

add fund that's when obviously what mean reserve, component and Yes. it and would that? in part I built Brian, past. to growth, we we key reserves And have that's a and what's of the you a the building

Brian Karrip

acquisition. the from reserves specific in million $X.X about have we that Just

business to We have grow million our did in to about ratio. so reserves potentially support PCD we support million from some adequate $X.X and we've reserve But reserves, our got growth. $XXX to $XXX in

James Reske

some like Can [ I say, way approach think sounds is up our just way. you words, the very we that this just talking to a then about there's bottoms and asked for be the other do on ] It far is add, ratio let's the that banks they But I very way want find up. -- small clear to well, the you bottom even mentioned, approach. thinking that In to ours thinking ratio I about [indiscernible] similar bankers, that solve from like and question.

our And reflect underwriting if say, at, as economic factors that would that or changes loan GDP changed factors growth. the this we I we changing be changes reserve the some if employment to standards staff, So quantitative hey, factors see think well changing. then all at we we we are conditions in look the or as of look some qualitative quarter made

loan as well as growth. right, Yes,

didn't get do out so the work and X.XX, the find and So way a grew, grow saying, that let's oh, ratio way that is they it rather much, to X.XX. all then the to say, given it portfolio that than turns we we

we about or but know it. I of that way anyway, kind helps not, that's So think don't

Frank Schiraldi

reserves the have are percentage No, as Yes. build just commercial consumer like you guess if of handy. I versus the book total I reserves book, in a what thinking as of you don't I'm through the loans. guess, know I that

Brian Karrip

we it I but get -- don't, could I could back to you.

Thomas Michael Price

had a and spread that We've good to where really, the XX-plus commercial. switch that's could our where and more than heavier relationships, fulsome depository commercial And generally, just reserve is. peers more mix cross-sell between XX-XX. because the our higher and the than XX, the that's with customer of percent consumer that's robust And pretty a is almost probably

Operator

There over are this the call no Price. Mike further Mr. to I'll questions back you. at time. turn

Thomas Michael Price

engagement And First Thank always, we as you, in your appreciate interest Commonwealth. and operator.

improve As But our as our change before, with organization, XXXX we we strategic they we've think do think themes, their growing and living and about is that That from financial really lives can an businesses. think you we of to year-to-year. shared well about don't day. mission improve these the much that our our then every loan We we business, our and neighbors pricing. and

also can in given that think And introductions going together. particularly the then partner forward, our we teams. improve can about regional we each lending getting C&I a put team We year We lot better. the grow

our better in live not just every unit every in every of business. So region, support and become grow, get of the trying facet digital every to but we're mission, business, and line vaguely, business

fun is our just in. And a things, taken after Thank small little our cross us sales a have expect $XX and respective these the that's billion. -- this with even a great Durbin get you. And know you wind those a we and it's our difference out stay so better talk -- of and are business business. consumers we business heads it. lives as at. And in Those make be our We we this and every of of where who to about and year we communities, to year

Operator

conference today's concludes call. This

now You disconnect. may

First Commonwealth Financial (FCF) 24 Apr 242024 Q1 Earnings call transcript