What factors drove the changes in First Commonwealth Financial's revenue and profit?

Did First Commonwealth Financial beat or miss consensus estimates last quarter?

What is the market's earnings forecast for First Commonwealth Financial next quarter?

What is the revenue and EPS growth rate for First Commonwealth Financial year over year?

What is First Commonwealth Financial's latest dividend and current dividend yield?

What does First Commonwealth Financial do and what are its main business segments?

What guidance did First Commonwealth Financial's management provide for the next earnings period?

What were the key takeaways from First Commonwealth Financial's earnings call?

- **NIM Expansion**: 9 bps to 3.92% Q/Q, deposit costs down 7 bps to 1.84%. 
- **Loan Growth**: $137M (5.7%) across equipment, commercial, and home equity. 
- **Credit Improvement**: NPLs to 0.91%, TBV +11.6% annualized. 
- **2026 Outlook**: NIM ~3.90%, 3% expense growth, $20.7M share buybacks. 
- **Risk Resolution**: Dealer floor plan fraud nearly resolved, minimal ongoing impact.

**【CEO Summary Section】**
- **Financial Performance Highlights**: Net interest margin (NIM) expanded by 9 basis points to 3.92%, driven by a 7 basis point decline in deposit costs to 1.84%. Average deposits grew 4% year-over-year, with loan growth of $137 million (5.7%) across equipment finance, commercial banking, indirect, and home equity lending. 
- **Credit Metrics**: Nonperforming loans (NPLs) declined to 0.91% from 1.04%, with net charge-offs at 51 basis points (34 basis points from a dealer floor plan fraud resolution). Core provision expense increased $2.4 million Q/Q to $11.3 million, largely due to the floor plan issue. 
- **Efficiency and Growth**: Efficiency ratio improved to 52.3% from 54.1%, and tangible book value (TBV) grew 11.6% annualized linked-quarter. 

**【CFO Financial Commentary】**
- **NIM and Spread Income**: NIM expansion of 9 bps was supported by $4.9 million increase in spread income, offsetting $261,000 decline in fee income (due to lower mortgage gain-on-sale). 
- **Expense Management**: Core noninterest expense rose $350,000 Q/Q due to incentive accruals, with 2026 expense growth guided at ~3%. 
- **Share Repurchases**: 625,000 shares repurchased at $16.81 avg price, with $20.7M remaining under current authorization. 
- **2026 Outlook**: NIM expected to stabilize near 3.90% (±5 bps), driven by fixed-rate loan repricing and macro swap expirations. 

**【Q&A Key Highlights】**
- **Credit Resolution**: Dealer floor plan fraud ($31.9M exposure) resolved with $5.5M charge-off and $3.1M reserve addition, reducing NPLs to $16M. Expect full resolution by year-end. 
- **NIM Pressure**: Q4 NIM may decline 5-10 bps due to Fed rate cuts and seasonal deposit runoff, but 2026 outlook stable at ~3.90%. 
- **Deposit Strategy**: Focus on transaction accounts (90%+ retention) and repricing time deposits, with money market yields over 3% reduced to 49%. 
- **M&A Activity**: Open to acquisitions under $1B, prioritizing deposit growth and fee income. 
- **Equipment Finance Growth**: 10%+ quarterly growth sustainable for ~1 year, driven by depreciation incentives and team expertise.

First Commonwealth Financial Corporation (FCF) Q3 2025 Earnings Call Transcript

- **Record NIM Expansion**: 21 bps to 3.83%, driven by organic growth and CenterBank acquisition, with 2025 guidance of low to mid-3.90s.
- **Loan Growth Momentum**: 8.1% annualized net interest income growth, fueled by Equipment Finance and Ohio market expansion.
- **Credit Stability**: Charge-offs expected to normalize at 25-30 bps, despite $40 million NPL increase from one-off events.
- **Share Buyback Plan**: $25 million new authority to repurchase shares at prices below $17.50.
- **Strategic Focus**: Mid-single-digit loan growth, fee income diversification, and Pennsylvania infrastructure investments.

**【CEO Summary Section】**
- Core EPS of $0.38 exceeded consensus by $0.03, with net interest margin (NIM) expanding 21 basis points to 3.83% due to improved loan yields and lower deposit costs.
- Loan growth of 8.1% annualized drove a $10.7 million increase in net interest income to $106.2 million, supported by strong performance across Equipment Finance, small business, and Ohio markets.
- Total deposits grew 9% year-to-date to $10.1 billion, with Ohio contributing $4 billion in new loan growth and the CenterBank acquisition adding $295 million in loans and $278 million in deposits.
- Credit metrics showed positive trends, with provision expense of $12.6 million tied to a single commercial floorplan loan and CenterBank acquisition. Nonperforming loans increased by $40.1 million due to these events.

**【CFO Financial Commentary】**
- NIM expansion of 21 bps was driven by organic growth (9 bps from assets, 5 bps from liabilities) and $4 million from CenterBank loan marks. Guidance for 2025 NIM is low to mid-3.90s, with potential for further expansion if the Fed halts rate cuts.
- Fee income increased $2.1 million to $24.7 million, led by mortgage, SBA, and wealth services. Operating expenses rose $1.1 million due to CenterBank integration and loan volume growth.
- Tangible book value per share grew 7.3% annualized, with $25 million in new share repurchase authority approved.

**【Q&A Highlights】**
- **Margin Guidance**: 2025 NIM expected to reach low to mid-3.90s, with additional 5 bps if no Fed cuts. Loan yield replacement of 42 bps in Q2 is sustainable through rate cuts.
- **Share Buybacks**: Repurchases will occur at prices below $17.50, with $6.2 million remaining from prior authorization.
- **Credit Quality**: Charge-offs expected to normalize at 25-30 bps, with Equipment Finance and indirect lending outperforming peers.
- **Growth Strategy**: Focus on mid-single-digit loan growth, deposit funding, and fee income expansion. Ohio and Western PA remain key growth markets, with potential for rural de novo expansion.
- **AI and Infrastructure**: Pennsylvania's $90 billion AI and energy investments may drive infrastructure lending opportunities in data centers and gas pipelines.

First Commonwealth Financial Corporation (FCF) Q2 2025 Earnings Call Transcript

- **Core Earnings Beat Expectations**: $0.32 EPS met estimates, despite ROA decline due to expenses.
- **Strong Loan Growth**: 4.4% annualized loan growth, driven by commercial and equipment finance.
- **NIM Expansion**: 8 bps Q/Q to 3.62%, with further upside from macro swap expirations.
- **Fee Income Resilience**: Offset Durbin Amendment hit with growth in service charges and swaps.
- **Strategic Acquisition**: CenterBank adds $165M in SBA loans and enhances Cincinnati market presence.
- **Tariff Resilience**: Clients report mixed impacts, but pipelines remain strong with no credit issues.
- **Capital Strength**: Tangible book value up 16.3% annualized, with $6.7M buyback capacity.

**【CEO Summary Section】**
- **Core Earnings**: Reported $0.32 core EPS, meeting consensus estimates. Return on assets (ROA) was 1.14%, down from 1.23% due to higher expenses and lower fee income.
- **Loan Growth**: Loans grew at a 4.4% annualized rate ($99 million), with commercial loans accounting for 64% of growth. Equipment finance and auto lending contributed meaningfully.
- **Net Interest Margin (NIM)**: NIM rose 8 basis points to 3.62%, driven by declining deposit costs (1.99%) and macro swap expirations. Deposit growth of 7.7% annually was achieved without increasing beta.
- **Fee Income**: Down $1.5 million Q/Q, but other fee businesses (service charges, swaps) offset the $3.5 million Durbin Amendment hit. Efficiency ratio rose to 59.08%.
- **Expenses**: Increased $2.1 million to $71.1 million, primarily due to incentive compensation and FTE growth. CenterBank acquisition costs added to the run rate.
- **Dividend Increase**: Board approved a $0.01 per share dividend increase, bringing yield to 3.5% and payout ratio to 40%.
- **Tariff Impact**: Clients report mixed effects; some sectors (steel) benefit, while others (polymers, coal) face challenges. Pipelines remain strong.
- **Regional Momentum**: Northern Ohio, Pittsburgh, and Cincinnati markets show strong growth. A $10 billion natural gas plant in Western PA highlights infrastructure investment opportunities.

**【CFO Financial Commentary】**
- **NIM Guidance**: Expects NIM to expand to high 370s by year-end (3.78%-3.79%) under 3 Fed rate cuts. If no cuts, NIM could reach high 380s. $150M macro swap expires Q2, adding 7 bps to NIM.
- **Loan Growth**: Mid-single-digit growth maintained. CRE and C&I pipelines are robust, with construction activity resuming post-pandemic.
- **Fee Income Outlook**: Q2 fee income expected to be $1M higher than Q1 ($23M-$24M), with seasonal decline in Q4.
- **Expense Management**: Q1 expenses included $1.5M in prior-year incentive payments and $0.7M in snow removal costs. Q2 expenses expected to stabilize at $71M-$73M.
- **Capital Ratios**: Tangible book value grew 16.3% annualized. AOCI reduction and retained earnings drove capital strength. $6.7M buyback capacity remains under authorization.

**【Q&A Key Highlights】**
- **Equipment Finance Momentum**: Application volume remains strong, with no credit impact from tariffs. Competitors' market pullback created opportunities.
- **Commercial Real Estate Pipeline**: Construction loans are increasing, with developers benefiting from lower rates and deferred projects.
- **Deposit Strategy**: Prioritized growth over rate reduction, with deposit costs falling 8 bps Q/Q. Savings growth outpaced CDs as customers waited for rate clarity.
- **Expense Leverage**: FTE growth (12% YoY) reflects investment in regional teams. Q2 focus on process improvements to reduce inefficiencies.
- **SBA Performance**: Q1 gain-on-sale down $1M, but pipeline strength suggests improvement in Q2. Margins remain stable despite rate headwinds.
- **CenterBank Integration**: Adds $165M in SBA loans, enhances Cincinnati mortgage business, and brings accretive talent. 2026 accretion expected at 2.5%-3%.
- **NIM Sensitivity**: Deposit cost assumptions are conservative; upside exists if rates decline faster than expected.
- **M&A Strategy**: Disciplined approach focuses on Ohio and Pennsylvania. Cincinnati market seen as high-growth opportunity post-acquisition.

First Commonwealth Financial (FCF)-30 Apr 25-2025 Q1 Earnings call transcript

- **Revenue Resilience**: Q4 EPS $0.35 met estimates, with strong deposit growth (5% annualized) and improved credit metrics (NPLs 0.68%).
- **Growth Drivers**: 2025 loan growth target mid-single-digit, fueled by C&amp;I Equipment Finance (+$61M Q4) and CRE. Center Bank acquisition adds $0.01 EPS/Q1 from Q3 2025.
- **NIM Expansion**: 2025 NIM +10-20bps via loan growth and positive replacement yields. 8-10bps contribution from macro swaps, offsetting 2 rate cuts.
- **Fee Offset Success**: Mortgage, SBA, and wealth fees offset $6.7M Durbin impact, with Q4 fee income up $0.8M vs. Q3.
- **Credit Strength**: Reserves above peers, NPLs down 20%, and Centric portfolio improving with $8M Q4 charge-offs.


**【CEO Summary Section】**
- **Revenue Performance**: Q4 2024 EPS of $0.35 met consensus, with pretax pre-provision ROA of 1.77% and ROE of 12.3%. Full-year deposit growth of 5% (average $451.1M) reduced loan-to-deposit ratio to 92.5%.
- **Strategic Initiatives**: Acquired Center Bank in Cincinnati to enhance C&amp;I growth. Equipment Finance grew $61M in Q4, targeting mid-single-digit loan growth in 2025. 
- **Challenges**: Tepid loan demand due to high rates, but C&amp;I Equipment Finance and CRE showed strength. Credit costs moderated, with NPLs declining to 0.68%.

**【CFO Financial Commentary】**
- **Earnings**: Q4 core EPS $0.35 (+$0.04 vs. Q3), driven by $4.1M provision expense decline. Fee income offset $6.7M Durbin impact, growing mortgage, SBA, and wealth management.
- **Balance Sheet**: Loans +$23.5M (1.04% annualized). Deposit growth skewed by $175M corporate inflow, but cost of deposits down 1bp to 2.07%. 
- **NIM Outlook**: 2025 NIM expansion of 10-20bps, driven by loan growth (mid-single-digit) and positive replacement yields (+40bps). 2 rate cuts assumed, with 8-10bps from macro swaps.
- **Expense Management**: Q4 noninterest expense $68.3M, up $1M vs. Q3. Fraud losses declined with enhanced detection. 2025 guidance: $68-69M Q1, +$2M in Q2 for merit hikes.

**【Q&A Highlights】**
- **Fee Income**: Mortgage, SBA, and swap fees offset Durbin impact. Q4 swap income $0.7M, up 20% vs. Q3. 2025 fee guidance $22-23M/Q1, growing sequentially.
- **Loan Growth**: 2025 target mid-single-digit, driven by C&amp;I (Equipment Finance, indirect auto) and CRE. Equipment Finance to reach 10% of loan book.
- **Credit Quality**: NPLs down to 0.68%, reserves above peer levels. Centric portfolio improvement, with $8M charge-offs in Q4.
- **Acquisition Impact**: Center Bank adds $0.01 EPS/Q1 starting Q3 2025. 3M shares issued, no accretable yield impact.
- **NIM Risks**: 1/3 of loan book floats, rate cuts could slow prepayment speeds. 2026 NIM stability depends on loan growth and deposit repricing.


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