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

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

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

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

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

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

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

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

- **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.

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