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INDIANA, Pa. - First Commonwealth Financial Corporation (NYSE: FCF), a regional bank with a market capitalization of $1.55 billion and a P/E ratio of 10.9x, disclosed its financial results for the first quarter of 2025, revealing a decrease in net income and diluted earnings per share compared to both the previous quarter and the first quarter of 2024. Net income stood at $32.7 million, or $0.32 per diluted share, a drop from the $35.8 million and $0.37 per share reported in the first quarter of the previous year. According to InvestingPro analysis, the company currently appears overvalued relative to its Fair Value.
The company’s core pre-tax pre-provision net revenue (PPNR) also saw a decline, falling to $46.9 million from the $50.8 million reported in the same quarter of the previous year. This decrease was attributed mainly to a reduction in noninterest income, including a $1.0 million decrease in gains from the sale of Small Business Administration (SBA) loans.
Despite the downturn in some financial metrics, First Commonwealth experienced growth in its loan and deposit portfolios. End-of-period loans increased by $99.0 million, while deposits saw an increase of $183.6 million from the previous quarter, with notable growth in savings and noninterest-bearing deposits.
The company’s net interest income (FTE) slightly increased by $0.4 million from the prior quarter, and the net interest margin improved to 3.62%, up from 3.52% in the first quarter of 2024.
Asset quality indicators showed mixed results, with the provision for credit losses decreasing to $5.7 million from $6.5 million in the previous quarter. Meanwhile, nonperforming loans decreased by $2.1 million from the previous quarter, although they were higher year over year.
In a move that may appeal to shareholders, First Commonwealth announced a 3.9% increase in its quarterly cash dividend, set to be completed on April 30, 2025. The company now offers a 3.4% dividend yield and has maintained dividend payments for 39 consecutive years, with 8 years of consecutive increases, according to InvestingPro data. Subscribers can access 12+ additional ProTips and comprehensive financial metrics for deeper analysis.
The bank’s capital ratios remained strong, with the Bank-level Total Capital Ratio at 13.6%, indicating $342.0 million in excess capital above regulatory requirements. No shares were repurchased in the first quarter, leaving a remaining capacity of $6.7 million under the current program.
First Commonwealth’s CEO expressed satisfaction with the company’s performance, emphasizing robust loan growth and deposit increases. The firm is set to further expand its presence with the upcoming completion of its acquisition of CenterGroup Financial, expected to close in the coming weeks. InvestingPro’s Financial Health Score rates the company as "GOOD" with particularly strong marks in profitability metrics. For detailed analysis and future growth prospects, investors can access the comprehensive Pro Research Report, available for FCF and 1,400+ other US stocks on InvestingPro.
These results are based on a press release statement from First Commonwealth Financial Corporation.
In other recent news, First Commonwealth Financial Corporation reported its Q4 2024 earnings, revealing a slight miss on earnings per share (EPS), which came in at $0.35, just below the forecast of $0.36. However, the company exceeded revenue expectations with $120.42 million compared to the $119.68 million forecast. The company demonstrated strong performance in areas such as loan growth and efficiency improvements, with a notable enhancement in the loan-to-deposit ratio, which improved to 92.5%. Additionally, First Commonwealth Financial has received all necessary regulatory approvals for its merger with CenterGroup Financial, Inc., a significant step towards finalizing the transaction expected in the second quarter of 2025. This merger includes the integration of CenterBank into First Commonwealth Bank, pending approval from CenterGroup shareholders. The acquisition of Center Bank is anticipated to contribute $0.01 to EPS per quarter starting in Q3 2025. Analysts from firms like Raymond James and RBC Capital Markets have shown interest in the company’s performance, particularly regarding deposit cost management and loan growth strategies. These developments reflect First Commonwealth’s strategic efforts to enhance its market presence and financial operations.
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