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. SUMMARY RESULTS OF OPERATIONS Net interest income $ 113,201 $ 111,123 $ 95,081 $ 426,087 $ 378,892 Provision for credit losses 7,005 11,327 6,490 32,966 29,170 Provision for credit losses — acquisition day 1 non-PCD — — — 3,759 — Noninterest income 24,716 24,857 25,335 96,824 99,231 Noninterest expense 74,476 72,834 69,304 294,828 270,745 Net income 44,876 41,328 35,849 152,302 142,572 Core net income(5) 44,658 41,166 36,067 158,101 142,709 Earnings per common share (diluted) $ 0.43 $ 0.39 $ 0.35 $ 1.47 $ 1.39 Core earnings per common share (diluted)(6) $ 0.43 $ 0.39 $ 0.35 $ 1.53 $ 1.40 KEY FINANCIAL RATIOS Return on average assets 1.46 % 1.34 % 1.23 % 1.26 % 1.22 % Core return on average assets(7) 1.45 % 1.34 % 1.23 % 1.31 % 1.22 % Return on average assets, pre-provision, pre-tax 2.06 % 2.05 % 1.75 % 1.89 % 1.78 % Core return on average assets, pre-provision, pre-tax 2.05 % 2.05 % 1.76 % 1.92 % 1.78 % Return on average shareholders' equity 11.49 % 10.71 % 10.16 % 10.15 % 10.44 % Return on average tangible common equity(8) 15.90 % 14.96 % 14.40 % 14.17 % 14.94 % Core return on average tangible common equity(9) 15.83 % 14.90 % 14.48 % 14.69 % 14.95 % Core efficiency ratio(2)(10) 52.84 % 52.30 % 56.07 % 54.42 % 55.36 % Net interest margin (FTE)(1) 3.98 % 3.92 % 3.54 % 3.84 % 3.55 % Book value per common share $ 15.11 $ 14.78 $ 13.81 Tangible book value per common share(11) 11.22 10.94 10.04 Market value per common share 16.86 17.05 16.92 Cash dividends declared per common share 0.135 0.135 0.130 0.535 0.515 ASSET QUALITY RATIOS Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 0.94 % 0.91 % 0.68 % Nonperforming assets as a percent of total assets(3) 0.77 % 0.74 % 0.55 % Net charge-offs as a percent of average loans and leases (annualized)(4) 0.46 % 0.51 % 0.61 % Allowance for credit losses as a percent of nonperforming loans and leases(4) 137.07 % 148.04 % 193.48 % Allowance for credit losses as a percent of end-of-period loans and leases(4) 1.32 % 1.34 % 1.32 % CAPITAL RATIOS Shareholders' equity as a percent of total assets 12.6 % 12.5 % 12.1 % Tangible common equity as a percent of tangible assets(12) 9.7 % 9.6 % 9.1 % Leverage Ratio 10.9 % 10.8 % 10.6 % Risk Based Capital - Tier I 12.7 % 12.7 % 12.9 % Risk Based Capital - Total 14.5 % 14.4 % 14.6 % Common Equity - Tier I 12.1 % 12.0 % 12.1 % INCOME STATEMENT Interest income $ 163,925 $ 162,709 $ 149,996 $ 632,688 $ 600,463 Interest expense 50,724 51,586 54,915 206,601 221,571 Net Interest Income 113,201 111,123 95,081 426,087 378,892 Provision for credit losses 7,005 11,327 6,490 32,966 29,170 Provision for credit losses - acquisition day 1 non-PCD — — — 3,759 — Net Interest Income after Provision for Credit Losses 106,196 99,796 88,591 389,362 349,722 Net securities gains (losses) 425 369 1 (4,348 ) (5,446 ) Gain on sale of VISA — — — 5,146 5,664 Trust income 3,379 3,477 3,031 12,907 11,821 Service charges on deposit accounts 5,828 5,913 5,749 22,774 22,518 Insurance and retail brokerage commissions 2,886 3,499 2,654 12,652 11,546 Income from bank owned life insurance 1,725 1,712 1,418 6,877 6,361 Gain on sale of mortgage loans 1,941 2,132 1,645 7,296 5,795 Gain on sale of other loans and assets 2,198 1,085 3,076 6,888 9,111 Card-related interchange income 3,974 3,985 3,923 15,611 21,887 Derivative mark-to-market 25 2 95 (126 ) (46 ) Swap fee income 26 243 797 1,543 885 Other income 2,309 2,440 2,946 9,604 9,135 Total Noninterest Income 24,716 24,857 25,335 96,824 99,231 Salaries and employee benefits 42,265 40,717 38,025 163,981 149,287 Net occupancy 4,981 5,110 4,769 20,714 19,783 Furniture and equipment 4,994 4,427 4,360 18,161 17,453 Data processing 4,197 4,260 4,039 16,359 15,582 Pennsylvania shares tax 483 1,337 1,968 4,495 5,422 Advertising and promotion 1,687 1,931 1,358 6,447 5,535 Intangible amortization 1,494 1,567 1,368 5,503 5,024 Other professional fees and services 1,526 1,843 1,557 6,892 5,533 FDIC insurance 1,535 1,653 1,436 6,117 5,973 Litigation and operational losses 1,080 582 920 2,925 4,592 Loss on sale or write-down of assets 281 87 99 654 451 Loss on early redemption of subordinated debt — — — — 369 Merger and acquisition 150 165 277 4,379 391 Other operating expenses 9,803 9,155 9,128 38,201 35,350 Total Noninterest Expense 74,476 72,834 69,304 294,828 270,745 Income before Income Taxes 56,436 51,819 44,622 191,358 178,208 Income tax provision 11,560 10,491 8,773 39,056 35,636 Net Income $ 44,876 $ 41,328 $ 35,849 $ 152,302 $ 142,572 Shares Outstanding at End of Period 102,840,771 104,293,298 101,758,450 102,840,771 101,758,450 Average Shares Outstanding Assuming Dilution 103,643,551 104,754,917 101,963,018 103,524,130 102,205,497
Author: First Commonwealth Financial Corporation
Published at: 2026-01-27 22:00:00
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