First Commonwealth Financial Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income was $44.9 million ($0.45 per diluted share), an increase of $0.4 million ($0.01) from the second quarter of 2026 and $3.6 million ($0.06) from the third quarter of 2025.
• Core net income was $45.4 million ($0.45 per diluted share), an increase of $1.0 million ($0.01) from the prior quarter and $4.3 million ($0.06) from the prior-year quarter.
• Net interest income (FTE) totaled $116.7 million, up $3.9 million from the previous quarter and $5.3 million from the third quarter of 2025.
• Noninterest income was $26.7 million, unchanged from the previous quarter and up $2.2 million from the third quarter of 2025.
• Noninterest expense (excluding merger-related expenses) was $78.1 million, up $4.0 million from the previous quarter and $5.4 million from the third quarter of 2025.
• Net interest margin (FTE) was 4.11%, an increase of 10 basis points from the prior quarter and 19 basis points from the third quarter of 2025.
• Core efficiency ratio was 53.15%, an increase of 91 basis points from the prior quarter and 85 basis points from the third quarter of 2025.
• Return on average assets (ROAA) was 1.46% (1.48% core), up from 1.34% in the third quarter of 2025.
• Return on average tangible common equity (ROATCE) was 15.73% (15.90% core), up from 14.96% in the third quarter of 2025.
• Provision for credit losses was $14.2 million, an increase of $5.3 million from the previous quarter.
• Net charge-offs were $4.6 million, a decrease of $6.9 million from the previous quarter and $7.7 million from the third quarter of 2025.
• Allowance for credit losses as a percentage of period-end loans was 1.40%, up five basis points from the previous quarter.
• Total loans increased $63.4 million (2.6% annualized) to $9.54 billion from the previous quarter.
• End-of-period deposits increased $13.8 million (0.5% annualized) to $10.27 billion, while average deposits decreased $87.1 million (3.3% annualized).
• Loan-to-deposit ratio increased to 93.2% at the end of the third quarter of 2026.

Guidance and Future Outlook:

• Management stated near-term priorities include continuing to improve credit performance, generating profitable growth, and controlling expenses to create positive operating leverage.
• Management affirmed the belief that a mission-driven community bank of their size remains important and relevant to stakeholders.

Business Segments and Product Lines:

• Commercial loan portfolio included $5.63 billion in commercial, financial, agricultural, and other loans; $3.04 billion in commercial real estate; $827.5 million in equipment finance; and $465.8 million in real estate construction.
• Consumer loan portfolio included $2.42 billion in real estate (closed-end mortgages and home equity lines); $1.42 billion in auto & RV loans; and $42.4 million in personal lines of credit.
• Noninterest income drivers included increases in swap fee income ($0.3 million), trust income ($0.3 million), and gain on sale of mortgage loans ($0.2 million).
• Noninterest expense increases were driven by salaries and benefits ($1.6 million), loss on sale/write-down of assets due to a terminated sale leaseback ($0.8 million), furniture and equipment ($0.7 million), and FDIC insurance ($0.7 million).
• Full-time equivalent staff was 1,575 at September 30, 2026.

Market and Competitive Landscape:

• The company operates 126 community banking offices in 30 counties across western and central Pennsylvania and Ohio, with commercial lending in Pittsburgh, Harrisburg, Canton, Cleveland, Columbus, and Cincinnati.
• Mortgage offices are located in Wexford, Pennsylvania, and Hudson and Lewis Center, Ohio.
• The net interest margin expansion was primarily due to a seven basis point decrease in the cost of deposits and a $104.8 million increase in average loans, offset by a $106.7 million decrease in average cash balances.
• The total cost of funds was 1.74%, a decrease of five basis points from the previous quarter.

Risks and Challenges:

• Nonperforming loans increased $13.6 million to $95.2 million, primarily due to the migration of two commercial credits with an aggregate balance of $21.0 million to nonaccrual status.
• Provision expense increased significantly due to a $3.5 million increase in reserves for unfunded commitments and a $6.7 million increase in reserves for three individually analyzed commercial credits.
• Net charge-offs as a percentage of average loans (annualized) were 0.19% in the third quarter of 2026, compared to 0.49% in the previous quarter.
• Classified loans and leases totaled $174.6 million, and criticized loans and leases totaled $288.0 million.

Management Commentary and Tone:

• T. Michael Price, President and CEO, noted that third-quarter results reflected higher revenue, net interest margin expansion, and modest loan growth, alongside higher provision expense and operating expenses.
• Management expressed confidence in the relevance of their community bank model and focus on operational efficiency.

Other Key Points:

• The Board of Directors declared a common stock quarterly dividend of $0.14 per share, a 3.7% increase from the third quarter of 2025, payable on November 20, 2026.
• On October 27, 2026, the Board authorized an additional $25 million share repurchase program.
• During the third quarter, the company purchased $54.7 million in renewable energy tax credits, reducing taxes payable by $4.7 million.
• 4,156,764 shares were repurchased during the third quarter at a weighted average price of $21.18.
• Common Equity Tier I Capital Ratio was 11.9% at September 30, 2026, representing $539.4 million in excess capital above the regulatory "well capitalized" requirement.
• The company purchased $54.7 million in renewable energy tax credits, at a discount, a process which began in the second quarter.