for the quarter ended June 30, 2025 increased 32 basis points to 1.95% as compared to 1.63% in the prior quarter and 1.87% in the second quarter of 2024 The net interest margin of 3.83% increased 21 basis points compared to the prior quarter and increased 26 basis points as compared to the second quarter of 2024 The acquisition of CenterBank contributed four basis points of the increase from the prior quarter due to the accretion of purchase accounting marks The expiration of $150 million in macro swaps on May 1 st contributed three basis points to the increase from prior quarter Higher yields on new loan volume contributed nine basis points of the increase from prior quarter A five basis point improvement in the cost of funds contributed five basis points of the increase from prior quarter 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. FIRST COMMONWEALTH FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data) For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 SUMMARY RESULTS OF OPERATIONS Net interest income $ 106,241 $ 95,522 $ 94,992 $ 201,763 $ 187,296 Provision for credit losses 8,898 5,736 7,827 14,634 12,065 Provision for credit losses — acquisition day 1 non-PCD 3,759 — — 3,759 — Noninterest income 24,749 22,502 25,210 47,251 49,198 Noninterest expense 76,268 71,250 65,798 147,518 131,371 Net income 33,402 32,696 37,088 66,098 74,637 Core net income(5) 39,496 32,779 37,070 72,276 74,709 Earnings per common share (diluted) $ 0.32 $ 0.32 $ 0.36 $ 0.64 $ 0.73 Core earnings per common share (diluted)(6) $ 0.38 $ 0.32 $ 0.36 $ 0.70 $ 0.73 KEY FINANCIAL RATIOS Return on average assets 1.11 % 1.14 % 1.28 % 1.12 % 1.29 % Core return on average assets(7) 1.31 % 1.14 % 1.27 % 1.23 % 1.29 % Return on average assets, pre-provision, pre-tax 1.81 % 1.62 % 1.87 % 1.72 % 1.82 % Core return on average assets, pre-provision, pre-tax 1.95 % 1.63 % 1.87 % 1.79 % 1.82 % Return on average shareholders' equity 8.97 % 9.28 % 11.10 % 9.12 % 11.24 % Return on average tangible common equity(8) 12.59 % 13.02 % 15.94 % 12.80 % 16.22 % Core return on average tangible common equity(9) 14.82 % 13.05 % 15.93 % 13.96 % 16.24 % Core efficiency ratio(2)(10) 54.06 % 59.08 % 53.63 % 56.44 % 54.33 % Net interest margin (FTE)(1) 3.83 % 3.62 % 3.57 % 3.73 % 3.55 % Book value per common share $ 14.47 $ 14.20 $ 13.32 Tangible book value per common share(11) 10.63 10.44 9.56 Market value per common share 16.23 15.54 13.81 Cash dividends declared per common share 0.135 0.130 0.130 0.265 0.255 ASSET QUALITY RATIOS Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 1.04 % 0.65 % 0.63 % Nonperforming assets as a percent of total assets(3) 0.83 % 0.52 % 0.51 % Net charge-offs as a percent of average loans and leases (annualized)(4) 0.12 % 0.14 % 0.20 % Allowance for credit losses as a percent of nonperforming loans and leases(4) 133.62 % 201.89 % 216.48 % Allowance for credit losses as a percent of end-of-period loans and leases(4) 1.39 % 1.32 % 1.37 % CAPITAL RATIOS Shareholders' equity as a percent of total assets 12.4 % 12.3 % 11.7 % Tangible common equity as a percent of tangible assets(12) 9.4 % 9.3 % 8.7 % Leverage Ratio 10.7 % 10.7 % 10.2 % Risk Based Capital - Tier I 12.7 % 12.9 % 12.5 % Risk Based Capital - Total 14.4 % 14.7 % 14.2 % Common Equity - Tier I 12.0 % 12.2 % 11.7 %
Author: First Commonwealth Financial Corporation
Published at: 2025-07-29 21:00:00
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