GlobeNewswire·Apr 28, 2026, 7:00 AM ET

First Commonwealth Announces First Quarter 2026 Earnings; Increases Quarterly Dividend

FCF

First Commonwealth Financial Corporation reported first quarter 2026 net income of $37.5 million, or $0.37 per diluted share, compared to $44.9 million ($0.43 per share) in the prior quarter and $32.7 million ($0.32 per share) in the same period of 2025.
Core net income for the quarter was $37.5 million, or $0.37 per diluted share, with core pre-tax pre-provision net revenue totaling $57.9 million.
Net interest income (FTE) decreased $4.2 million to $109.3 million from the prior quarter, primarily due to fewer days in the quarter, a $170.1 million decrease in average loans, and net interest margin compression.
The net interest margin for the quarter was 3.92%, a decrease of 6 basis points from the prior quarter but an increase of 30 basis points from the first quarter of 2025.
Average deposits increased $67.1 million from the previous quarter, while end-of-period deposits rose $158.9 million to $10.4 billion.
End-of-period loans excluding held for sale decreased $74.2 million, driven largely by the sale of a $225.4 million commercial portfolio that had been moved to held for sale at year-end.
Nonperforming loans increased $0.6 million to $92.3 million, while the allowance for credit losses rose $3.4 million to $129.2 million, resulting in reserves to total loans of 1.37%.
Provision for credit losses was $10.7 million, an increase of $3.7 million from the prior quarter, primarily due to a $4.2 million increase in reserves for individually analyzed commercial credits.
Net charge-offs totaled $8.2 million, a decrease of $3.1 million from the prior quarter, representing 0.35% of average loans on an annualized basis.
Noninterest expense increased $1.2 million to $75.5 million from the prior quarter, driven by higher Pennsylvania shares tax, salaries, occupancy, and loss on asset sales.
The core efficiency ratio increased to 55.43% from 52.84% in the prior quarter, reflecting higher expenses relative to core revenue.
Tangible book value per share increased $0.12 to $11.34, representing a 4.3% annualized increase from the previous quarter.
The Board of Directors authorized a 3.7% increase in the quarterly cash dividend to $0.14 per share, payable on May 22, 2026.
The company repurchased 1,284,457 shares at a weighted average price of $17.67 during the quarter, leaving $18.4 million in remaining repurchase capacity.
Total capital ratio stood at 14.9%, with the bank-level Total Capital Ratio at 13.8%, exceeding regulatory "well capitalized" requirements by $376.3 million.