Core Viewpoint - First Commonwealth Financial (FCF) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is solely based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects an improvement in First Commonwealth Financial's earnings outlook, potentially leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in First Commonwealth Financial's underlying business, which should encourage investors to push the stock higher [6]. Importance of Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock movements, making tracking these revisions beneficial for investment decisions [7]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specific Earnings Estimates for First Commonwealth Financial - First Commonwealth Financial is projected to earn $1.41 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 0.7% [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 0.7%, indicating a positive trend in earnings estimates [9]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [10]. - The upgrade of First Commonwealth Financial to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for higher stock movement in the near term [11].

Group 1 - Africa Oil Corporation has announced a name change to Meren Energy, reflecting a strategic rebranding effort [2] - The company reported impressive first quarter 2025 results, indicating strong financial performance and effective balance sheet management [2] - Meren Energy is valued at approximately $900 million, highlighting its significant market presence [2] Group 2 - The company is focused on maximizing returns through a fact-based research strategy, which includes thorough analysis of financial documents and market reports [2] - The Value Portfolio, associated with the company, specializes in building retirement portfolios, emphasizing the importance of actionable investment strategies [2]

PART I [Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) This section provides a comprehensive overview of the company's financial performance and position [Financial Statements and Supplementary Data](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the unaudited consolidated financial statements for First Commonwealth Financial Corporation for the period ended March 31, 2025, including detailed notes on accounting policies and key financial areas [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew to **$11.79 billion** as of March 31, 2025, from **$11.58 billion** at year-end 2024, driven by an increase in net loans and leases Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2025 (in billions) | December 31, 2024 (in billions) | | :--- | :--- | :--- | | **Total Assets** | **$11.79** | **$11.58** | | Net Loans and Leases | $8.97 | $8.86 | | **Total Liabilities** | **$10.34** | **$10.18** | | Total Deposits | $9.86 | $9.68 | | **Total Shareholders' Equity** | **$1.45** | **$1.41** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, net income was **$32.7 million**, a decrease from **$37.5 million** in the same period of 2024, primarily due to lower net interest income and higher noninterest expense Quarterly Income Statement Summary (Unaudited) | Metric | Three Months Ended Mar 31, 2025 (in millions) | Three Months Ended Mar 31, 2024 (in millions) | | :--- | :--- | :--- | | Net Interest Income | $95.52 | $92.30 | | Provision for credit losses | $5.74 | $4.24 | | Total noninterest income | $22.50 | $23.99 | | Total noninterest expense | $71.25 | $65.57 | | **Net Income** | **$32.70** | **$37.55** | | **Diluted Earnings per Share** | **$0.32** | **$0.37** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the first quarter of 2025 was **$54.0 million**, a significant increase from **$30.2 million** in the prior year's quarter, driven by a positive swing in other comprehensive income due to unrealized gains on securities Comprehensive Income Summary (Unaudited) | Metric | Three Months Ended Mar 31, 2025 (in millions) | Three Months Ended Mar 31, 2024 (in millions) | | :--- | :--- | :--- | | Net Income | $32.70 | $37.55 | | Total other comprehensive income (loss) | $21.34 | $(7.34) | | **Comprehensive Income** | **$54.04** | **$30.21** | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity increased from **$1.405 billion** at the end of 2024 to **$1.447 billion** at March 31, 2025, primarily due to net income and other comprehensive income - Key drivers for the change in shareholders' equity in Q1 2025 were net income of **$32.7 million** and other comprehensive income of **$21.3 million**, partially offset by cash dividends of **$13.2 million** and treasury stock acquisitions of **$1.8 million**[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was **$55.9 million**, while net cash used in investing activities was **$213.6 million**, resulting in a net increase in cash and cash equivalents of **$7.9 million** Cash Flow Summary (Unaudited) | Activity | Three Months Ended Mar 31, 2025 (in millions) | Three Months Ended Mar 31, 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $55.89 | $39.65 | | Net cash used in investing activities | $(213.56) | $(64.24) | | Net cash provided by financing activities | $165.62 | $187.97 | | **Net increase in cash and cash equivalents** | **$7.95** | **$163.37** | [Notes to the Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the financial statements, covering accounting policies, recent acquisitions, credit quality, financial instruments, and other material information - On December 18, 2024, the company entered an agreement to acquire CenterGroup Financial, Inc. (CGFI), which will add approximately **$341.6 million** in assets and **$302.5 million** in loans, with the all-stock transaction completed on April 30, 2025[16](index=16&type=chunk) - Commitments to extend credit stood at **$2.33 billion** as of March 31, 2025, an increase from **$2.25 billion** at year-end 2024, with the liability for credit risk on these commitments increasing to **$5.7 million** from **$4.1 million**[24](index=24&type=chunk)[26](index=26&type=chunk) - In Q1 2025, the company sold its VISA Class B-2 shares, which had a zero basis, resulting in a **$5.1 million** gain[36](index=36&type=chunk) - Total non-pass loans (rated OAEM, Substandard, or Doubtful) decreased to **$190.5 million** as of March 31, 2025, from **$224.2 million** at December 31, 2024[69](index=69&type=chunk)[72](index=72&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=50&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for the first quarter of 2025, highlighting a decrease in net income to **$32.7 million** from **$37.5 million** year-over-year, primarily due to higher noninterest expense - Q1 2025 net income decreased to **$32.7 million** (**$0.32** per diluted share) from **$37.5 million** (**$0.37** per diluted share) in Q1 2024, primarily caused by a **$5.7 million** increase in noninterest expense[184](index=184&type=chunk) - Net interest margin (fully taxable equivalent) expanded to **3.62%** in Q1 2025 from **3.52%** in Q1 2024, driven by a **10 basis point** decrease in the cost of interest-bearing liabilities and a **3 basis point** increase in the yield on interest-earning assets[186](index=186&type=chunk)[187](index=187&type=chunk) - Card-related interchange income fell by **$3.0 million** year-over-year due to the company becoming subject to the Durbin Amendment on July 1, 2024, after its assets exceeded **$10.0 billion**[206](index=206&type=chunk)[207](index=207&type=chunk) - Noninterest expense rose by **$5.7 million** (**9%**) year-over-year, mainly due to a **$5.1 million** increase in salaries and benefits, which included higher incentive expense and hospitalization costs[210](index=210&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the 'Market Risk' discussion from Item 2, detailing the company's exposure to interest rate risk through gap analysis and net interest income sensitivity models - The information regarding market risk is incorporated by reference from the 'Market Risk' section within Item 2 of this report[268](index=268&type=chunk) [Controls and Procedures](index=70&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures are effective in ensuring timely and accurate reporting of required information - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[270](index=270&type=chunk) PART II [Other Information](index=71&type=section&id=PART%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other material disclosures [Legal Proceedings](index=71&type=section&id=ITEM%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 6 of the financial statements, with management anticipating no material ultimate liability - The company refers to Note 6 for details on legal proceedings, stating that the range of reasonably possible losses beyond any recorded liability is between **$0** and **$1 million**[27](index=27&type=chunk)[272](index=272&type=chunk) [Risk Factors](index=71&type=section&id=ITEM%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the company's 2024 Form 10-K[273](index=273&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None reported[274](index=274&type=chunk) [Other Information](index=71&type=section&id=ITEM%205.%20Other%20Information) The company disclosed that James Reske, Executive Vice President and Chief Financial Officer, entered into a Rule 10b5-1 trading arrangement on March 20, 2025 - On March 20, 2025, CFO James Reske established a Rule 10b5-1 trading plan to sell **39,774 shares** for diversification between August 2025 and March 2027[274](index=274&type=chunk) [Exhibits](index=72&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including incentive plans, executive agreements, and CEO/CFO certifications - Exhibits filed include new incentive plans for 2025, executive agreements, and required CEO/CFO certifications[275](index=275&type=chunk)

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NYSE: FCF 1Q 2025 Earnings Release Webcast Presentation April 30, 2025 2 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, notwithst ...

Group 1 - SM Energy's Q1 2025 production was near the high-end of expectations despite rising lease operating expenses [2] - Oil prices have decreased to the mid-to-high $50s range [2] - The company does not plan to adjust its strategies in response to the current oil price trends [2]

Core Viewpoint - First Commonwealth Financial Corporation has successfully completed the acquisition of CenterGroup Financial, Inc., enhancing its presence in the Cincinnati market and expanding its service offerings to customers [1][2]. Company Overview - First Commonwealth is headquartered in Indiana, Pennsylvania, and operates 125 banking offices across 30 counties in Pennsylvania and Ohio, with additional business banking operations in major cities [5]. - The company provides a comprehensive range of financial services, including commercial banking, consumer banking, mortgage, equipment finance, wealth management, and insurance products through its subsidiaries [5]. Merger Details - The merger with CenterGroup Financial, Inc. includes the integration of CenterBank, which is recognized as a business-focused community bank [2]. - Following a full systems conversion scheduled for June 2025, CenterBank customers will gain access to First Commonwealth's extensive network of 55,000 surcharge-free ATMs and 127 retail offices [2]. Customer Benefits - Customers will benefit from a wider array of products and services, including mortgage and personal loans, wealth management, insurance, and enhanced online and mobile banking solutions [3]. - Commercial customers will have access to various financing solutions, cash management services, and payment processing options [3].

Financial Data and Key Metrics Changes - First Commonwealth reported core earnings per share of $0.32 for Q1 2025, with a return on assets of 1.14%, down from 1.23% in Q4 2024 due to rising expenses and falling fee income [6][10] - Loans grew at an annualized rate of 4.4%, totaling $99 million, with commercial loans accounting for $63 million or 64% of the increase [6][7] - Net interest margin (NIM) increased by eight basis points to 3.62%, while deposit costs fell to 1.99% [7][8] - The efficiency ratio rose to 59.08%, up from 56.07% in the previous quarter, with total expenses increasing by $2.1 million to $71.1 million [10][21] Business Line Data and Key Metrics Changes - Equipment finance and indirect auto lending contributed significantly to loan growth, with strong application volume continuing into April [6][7] - Fee income decreased by $1.5 million in Q1 2025, attributed to a $3.5 million hit from the Durbin Amendment and a decline in SBA gain on sale income [10][20] - The company anticipates fee income to improve in Q2 2025, projecting $23 million to $24 million, with a seasonal decline expected in Q4 [20] Market Data and Key Metrics Changes - The company noted that consumer financial health remains stable, comprising about 68% to 70% of U.S. GDP and 40% of its lending business [9] - The impact of tariffs and inflation on clients has been monitored, with many businesses adapting their supply chains effectively [12][13] Company Strategy and Development Direction - The company is focused on improving liquidity, with a loan-to-deposit ratio decreasing from 97% to 92% over the past two years [8] - The acquisition of Centre Bank is expected to enhance efficiency and margin, with the integration of new talent seen as a strategic fit for growth [11][128] - The company aims to increase fee income as a percentage of overall revenue, leveraging its regional model and local relationships [137] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth despite potential headwinds from tariffs, with strong pipelines in various markets [14][9] - The company is cautious about the economic environment, particularly regarding inflation and its potential impact on consumers and businesses [10][12] - Future NIM guidance anticipates expansion due to macro swaps and potential Fed rate cuts, with expectations of reaching the high 370s by year-end [18][42] Other Important Information - The Board of Directors approved a dividend increase of $0.01 per share, maintaining a dividend yield of approximately 3.54% [12] - The company has $6.7 million remaining under its buyback program, with no buyback activity in Q1 2025 due to the timing of the Centre Bank acquisition [22][49] Q&A Session Summary Question: Loan growth guidance and equipment finance portfolio momentum - Management noted healthy application volume in equipment finance and attributed growth to increased demand amid tariff anticipation [26][27] Question: Borrower sentiment and commercial real estate activity - Management indicated improved activity in commercial real estate and a strong pipeline, with a focus on growing the commercial and industrial book [28][29] Question: Deposit growth and rates - Management acknowledged that deposit growth was driven by savings, with a strategy to maintain liquidity despite lower rates [34][35] Question: NIM guidance and deposit costs - Management clarified that NIM guidance assumes stable deposit costs, with potential for upside if deposit rates can be lowered further [41][42] Question: SBA gain on sale outlook - Management expects SBA gain on sale income to improve as the year progresses, with a healthy pipeline of deals [75][78] Question: Center Bank acquisition impact - Management expressed excitement about the talent acquired from Centre Bank and its potential to enhance growth in the Cincinnati market [128][129]

Financial Data and Key Metrics Changes - First Commonwealth reported core earnings per share of $0.32 for Q1 2025, with a return on assets of 1.14%, down from 1.23% in Q4 2024 due to rising expenses and falling fee income [5][9] - Loans grew at an annualized rate of 4.4%, totaling $99 million, with commercial loans accounting for $63 million or 64% of the increase [5][6] - Net interest margin (NIM) increased by eight basis points to 3.62%, while deposit costs fell to 1.99% [6][15] - The efficiency ratio rose to 59.08%, up from 56.07% in the previous quarter, with total expenses increasing by $2.1 million to $71.1 million [9][21] Business Line Data and Key Metrics Changes - Fee income decreased by $1.5 million in Q1 2025, impacted by a $3.5 million reduction in interchange income due to the Durbin Amendment [9][20] - The equipment finance and indirect auto lending segments contributed significantly to loan growth, with strong application volumes continuing into April [5][26] - The commercial real estate (CRE) sector showed increased activity compared to the previous year, with a strong pipeline for construction loans [30][31] Market Data and Key Metrics Changes - The consumer financial health appears stable, with consumers representing approximately 68% to 70% of U.S. GDP and about 40% of First Commonwealth's lending business [8] - The company is closely monitoring the impact of tariffs and inflation on its clients, with many businesses adapting their supply chains effectively [11][12] Company Strategy and Development Direction - The company aims to improve liquidity, evidenced by a decrease in the loan-to-deposit ratio from 97% to 92% over the past two years [7] - The acquisition of Centre Bank is expected to enhance efficiency and margin, with the integration of new talent viewed positively [10][122] - The company is focused on becoming the best bank for business, with investments in regional banking teams and equipment finance [10][131] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth despite potential headwinds from tariffs, with strong pipelines in various markets [13][19] - The return of inflation could weaken consumer and business households, but current consumer health is deemed stable [8][11] - The company anticipates NIM expansion throughout 2025, with guidance reflecting potential Fed rate cuts [17][18] Other Important Information - The Board of Directors approved a dividend increase of $0.01 per share, maintaining a dividend yield of approximately 3.54% [11][22] - The company has $6.7 million remaining under its buyback program, with no buyback activity in Q1 2025 due to the timing of the Centre Bank acquisition [22][48] Q&A Session Summary Question: Loan growth guidance and equipment finance portfolio momentum - Management noted healthy application volume in equipment finance and expects continued growth despite potential economic slowdowns [25][26] Question: Borrower sentiment and commercial loan growth - The commercial real estate sector is more active than the previous year, with a strong pipeline and improved borrower sentiment [28][30] Question: Deposit growth and rates - The growth in deposits was driven by the savings segment, with a shift from CDs to money markets as rates were adjusted [33][36] Question: NIM guidance and deposit costs - The NIM guidance assumes stable deposit costs, with potential for upside if deposit rates can be lowered further [39][41] Question: SBA gain on sale outlook - Management expects SBA gain on sale income to improve as the year progresses, with a healthy pipeline of deals [73][78] Question: Credit trends and provisioning - The company is in a good position regarding reserves, with charge-offs down and provisioning remaining stable [118][119] Question: Centre Bank acquisition impact - The acquisition is expected to enhance loan growth and operational efficiency, with positive integration of new talent [122][124]