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Mar 31
First Commonwealth Q1 2025 Earnings Report
First Commonwealth Financial Corporation reported its financial results for the first quarter of 2025, with a decrease in net income and diluted earnings per share compared to the prior quarter and the first quarter of 2024.
Key Takeaways
First Commonwealth Financial Corporation reported a net income of $32.7 million and diluted earnings per share of $0.32 for the first quarter of 2025. This represents a decrease from both the prior quarter and the first quarter of 2024. The company's core pre-tax pre-provision net revenue also decreased, primarily due to a decrease in noninterest income. Despite this, the net interest margin increased, and the company maintained strong capital positions, including an authorized increase in its quarterly cash dividend.
GAAP Net income for Q1 2025 was $32.7 million, a decrease of $3.2 million from the prior quarter and $4.9 million from Q1 2024.
Diluted earnings per share for Q1 2025 were $0.32, down $0.03 from the prior quarter and $0.05 from Q1 2024.
Core pre-tax pre-provision net revenue totaled $46.9 million, a decrease of $4.5 million from the prior quarter, mainly due to a $2.8 million decrease in noninterest income.
The net interest margin (FTE) increased by 8 basis points to 3.62% compared to the prior quarter and by 10 basis points from Q1 2024.
First Commonwealth
First Commonwealth
First Commonwealth Revenue by Segment
Revenue by Segment
Trust Income Revenue
CapyFin.comService Charges on Deposit Accounts Revenue
CapyFin.comInsurance and Retail Brokerage Commissions Revenue
CapyFin.comIncome from Bank Owned Life Insurance Revenue
CapyFin.comGain on Sale of Mortgage Loans Revenue
CapyFin.comGain on Sale of Other Loans and Assets Revenue
CapyFin.comCard-Related Interchange Income Revenue
CapyFin.comDerivative Mark-to-Market Revenue
CapyFin.comSwap Fee Income Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
First Commonwealth Financial Corporation anticipates continued growth and strategic expansion, with the acquisition of CenterGroup Financial expected to be completed soon, strengthening its presence in Cincinnati.
Positive Outlook
- The acquisition of CenterGroup Financial is expected to be completed on April 30, 2025, strengthening market presence.
- The Board of Directors authorized a 3.9% increase in the quarterly cash dividend to shareholders.
- The Bank-level Total Capital Ratio of 13.6% indicates $342.0 million in excess capital above regulatory requirements.
- End of period loans increased $99.0 million, or 4.4% annualized, driven by commercial loan growth.
- End of period deposits increased $183.6 million, or 7.7% annualized, including significant increases in savings and noninterest-bearing deposits.
Challenges Ahead
- Net income decreased by $3.2 million from the prior quarter and $4.9 million from the first quarter of 2024.
- Core pre-tax pre-provision net revenue decreased by $4.5 million from the prior quarter, primarily due to a $2.8 million decrease in noninterest income.
- Noninterest expense increased by $2.1 million from the previous quarter, mainly due to a $2.4 million increase in salaries and benefits.
- Net charge-offs, while decreasing from the prior quarter, still represent a cost to the company.
- The core efficiency ratio increased to 59.08% compared to 56.07% in the prior quarter, indicating less efficiency.