Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures may be found at the end of the financial statements which accompany this release.
Reserve build/(release) represents the net change in the Company’s allowance for credit losses (ACL) from the prior period.
Third Quarter 2025 Highlights
Financial results
* GAAP net income of $41.3 million and diluted earnings per share of $0.39 represented an increase of $7.9 million from the prior quarter and an increase of $9.2 million, or $0.08 per share, from the third quarter of 2024.
* Net interest income (FTE) of $111.5 million increased $4.9 million from the previous quarter and increased $14.6 million from the third quarter of 2024.
* Noninterest income (excluding securities gains and losses) of $24.5 million decreased $0.3 million from the previous quarter and was unchanged from the prior year quarter.
* Noninterest expense (excluding merger-related expense) of $72.7 million increased $0.4 million from the previous quarter and $2.6 million from the prior year quarter.
* Average deposits increased $102.7 million, or 4.0% annualized, compared to the prior quarter.
* Total loans increased $137.0 million, or 5.7% annualized, from the previous quarter.
* The loan-to-deposit ratio increased to 95.3% at the end of the third quarter of 2025 as compared to 95.1% at the end of the previous quarter.
* Total shareholder’s equity increased $24.1 million from the previous quarter due to a $17.2 million increase in retained earnings (net of $10.5 million in share repurchases) and a $6.9 million improvement in accumulated other comprehensive income (AOCI).
* First Commonwealth Bank (the Bank) has been recognized for the fourth consecutive year by Forbes as one of the World’s Best Banks for 2025
Profitability
* The core efficiency ratio of 52.3% improved 176 basis points from the previous quarter.
* Return on average assets (ROA) increased 23 basis points to 1.34% compared to the previous quarter.
* Core pre-tax pre-provision ROA for the quarter ended September 30, 2025 was 2.05%, up from 1.95% in the prior quarter.
* Net interest margin expanded to 3.92%, up 9 basis points from the prior quarter and 36 basis points from the third quarter of 2024.
* Total security gains were $0.4 million during the third quarter of 2025
Asset quality
* The provision for credit losses was $11.3 million, an increase of $2.4 million compared to the previous quarter (excluding acquisition Day-1 non-PCD provision for CenterGroup)
* The allowance for credit losses as a percentage of period-end loans was 1.34%, a decrease of five basis points from the previous quarter
* Total criticized loans decreased $6.7 million from the previous quarter
* Net charge-offs on loans totaled $12.2 million, an increase of $9.5 million from the previous quarter, primarily due to a $5.5 million chargeoff for the aforementioned floorplan relationship, as well as a $2.8 million chargeoff associated with the sale of five recently acquired loans from Center Group that collectively carried a $2.6 million loan mark
Strong capital and liquidity positions
* The Bank-level Total Capital ratio was 13.4% at September 30, 2025, which represents $348.9 million in excess capital above the regulatory “well capitalized” requirement of 10.0%
* On April 28, 2025, the Board of Directors authorized a 3.7% increase in the quarterly cash dividend to shareholders
* There were 625,483 shares repurchased during the third quarter of 2025. The remaining capacity under the currently authorized program was $20.7 million as of September 30, 2025.
“Our third quarter results reflect continued momentum across our core banking operations,” stated T. Michael Price, President and Chief Executive Officer. “We delivered strong net interest income growth, maintained disciplined expense management, and improved asset quality metrics. These results demonstrate our commitment to building long-term value for our shareholders and supporting the financial well-being of our customers and communities.”
Earnings
GAAP net income for the third quarter of 2025 was $41.3 million, or $0.39 per share, compared to $33.4 million, or $0.32 per share in the second quarter of 2025, and $32.1 million, or $0.31 per share for the third quarter of 2024.
Core net income for the third quarter of 2025 was $41.2 million, or $0.39 per share, compared to $39.5 million, or $0.38 per share in the second quarter of 2025, and $31.9 million, or $0.31 per share for the third quarter of 2024.
Net Interest Income and Net Interest Margin
Net interest income (FTE) of $111.5 million increased $4.9 million from the previous quarter and increased $14.6 million from the prior year quarter. The increase from the previous quarter was primarily due to a 9 basis point expansion in the net interest margin and a $133.8 million increase in interest earning assets.
The net interest margin for the third quarter of 2025 was 3.92%, an increase of 9 basis points from the previous quarter and an increase of 36 basis points from the third quarter of 2024. The increase from the previous quarter was due primarily to a lower cost of funds.
Total average deposits grew $102.7 million, or 4.0% annualized, in the third quarter of 2025 as compared to the previous quarter.
Total average loans grew $222.8 million, or 9.4% annualized, in the third quarter of 2025 as compared to the previous quarter.
Asset Quality
Provision expense in the third quarter of 2025 totaled $11.3 million as compared to $8.9 million in the previous quarter (excluding acquisition Day-1 non-PCD provision for CenterGroup).
The allowance for credit losses as a percentage of end-of-period loans in the third quarter of 2025 was 1.34% as compared to 1.39% in the previous quarter.
At September 30, 2025, nonperforming loans totaled $88.7 million, a decrease of $10.8 million from the previous quarter. The decrease from the prior quarter was driven by a decreased balance of $15.9 million for an individual commercial floorplan relationship that was transferred to nonaccrual status during the second quarter of 2025.
Nonperforming loans represented 0.91% of total loans for the period ended September 30, 2025 as compared to 1.04% and 0.83% for the periods ended June 30, 2025 and September 30, 2024, respectively.
During the third quarter of 2025, net charge-offs were $12.2 million as compared to $2.8 million in the previous quarter and $8.8 million in the third quarter of 2024. The increase from the previous quarter was due to a $5.5 million chargeoff for the aforementioned floorplan relationship and a $2.8 million chargeoff from the sale of five recently acquired loans with a $2.6 million loan mark.
Net charge-offs as a percentage of average loans (annualized) were 0.51%, 0.12% and 0.39% for the periods ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
Noninterest Income and Noninterest Expense
Noninterest income (excluding securities gains and losses) totaled $24.5 million for the third quarter of 2025, a $0.3 million decrease from the second quarter of 2025 and unchanged from the third quarter of 2024.
The quarter-over-quarter change was driven by a $0.3 million increase in gain on sale of mortgage loans, a $0.4 million increase in trust income, and a $0.4 million increase in brokerage commissions, offset by a $1.1 million decrease in gain on sale of other loans primarily due to gains on the sale of other real estate owned (OREO) properties in the prior quarter.
Total security gains were $0.4 million during the third quarter of 2025 due to the early call of a discounted note.
Noninterest expense (excluding merger-related expense) of $72.7 million increased $0.4 million from the previous quarter. The increase was primarily due to a $0.5 million increase in advertising and promotional expense and a $0.3 million increase in intangible amortization, partially offset by a $0.4 million decrease in other loan expense.
The core efficiency ratio was 52.3% during the third quarter of 2025 as compared to 54.1% in the previous quarter and 56.7% in the third quarter of 2024.
Full time equivalent staff was 1,548 at September 30, 2025, 1,562 at June 30, 2025, and 1,500 at September 30, 2024.
Dividends and Capital
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.135 per share, which represents a 3.9% increase from the third quarter of 2024. The cash dividend is payable on November 21, 2025 to shareholders of record as of November 7, 2025. This dividend represents a 3.3% projected annual yield utilizing the October 27, 2025 closing market price of $16.31.
First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at September 30, 2025 were 14.4%, 12.7%, 10.8% and 12.0%, respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter of 2025 on Wednesday, October 29, 2025 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-888-330-3181 conference ID # 4651379 or through the Company’s web page, http://www.fcbanking.com/InvestorRelations. A replay of the call will be available approximately one hour following the conclusion of the conference by dialing 1-800-770-2030 and entering the conference ID # 4651379. A link to the webcast replay will also be accessible on the Company’s webpage for 30 days.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services Company with 127 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh and Harrisburg, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The Company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit http://www.fcbanking.com.
Forward-Looking Statements
Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, and could be affected by many factors, including, but not limited to: (1) volatility and disruption in national and international financial markets; (2) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (3) inflation, interest rate, commodity price, securities market and monetary fluctuations; (4) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (5) the soundness of other financial institutions; (6) political instability; (7) impairment of First Commonwealth’s goodwill or other intangible assets; (8) acts of God or of war or terrorism; (9) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (10) changes in consumer spending, borrowings and savings habits; (11) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (12) technological changes; (13) acquisitions and integration of acquired businesses; (14) First Commonwealth’s ability to attract and retain qualified employees; (15) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (16) the ability to increase market share and control expenses; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (19) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (20) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Media Relations:
Ron Wahl
Communications and Media Relations
Phone: 724-463-6806
E-mail: [email protected]
Investor Relations:
Ryan M. Thomas
Vice President / FP&A and Investor Relations
Phone: 724-463-1690
E-mail: [email protected]
Deposits on the above balance sheet for periods prior to June 30, 2025 reflect a reclassification to interest-bearing deposits from savings deposits in order to remove the impact of an internal sweep program related to regulatory reserve requirements. The internal sweep program was terminated in the second quarter of 2025, therefore prior periods are now shown without the reclassification.
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