First Commonwealth Financial(US:FCF)2025-10-28 21:24Financial Performance - GAAP net income for Q3 2025 was $41.3 million, or $0.39 per share, an increase of $7.9 million from the previous quarter and $9.2 million from Q3 2024[4] - Core net income for Q3 2025 was $41.2 million, or $0.39 per share, up $1.7 million from the previous quarter and $9.2 million from Q3 2024[7] - Net income for Q3 2025 reached $41,328,000, up 24% from $33,402,000 in Q2 2025 and a 29% increase from $32,086,000 in Q3 2024[30] - Core net income for Q3 2025 was $41,166,000, compared to $39,496,000 in Q2 2025 and $31,933,000 in Q3 2024, reflecting a 4% quarter-over-quarter increase and a 29% year-over-year increase[30] - Total revenue for Q3 2025 reached $135,962,000, up from $131,331,000 in Q2 2025 and $121,361,000 in Q3 2024[39] Interest Income and Margin - Net interest income (FTE) reached $111.5 million, increasing by $4.9 million from the previous quarter and $14.6 million from the prior year[10] - Net interest income for Q3 2025 was $111,123,000, an increase of 4% from $106,241,000 in Q2 2025 and a 15% increase from $96,515,000 in Q3 2024[30] - The net interest margin for Q3 2025 was 3.92%, up 9 basis points from the previous quarter and 36 basis points from Q3 2024[11] - The net interest margin (FTE) improved to 3.92% in Q3 2025 from 3.83% in Q2 2025 and 3.56% in Q3 2024[30] Loans and Deposits - Total loans increased by $137.0 million, or 5.7% annualized, from the previous quarter[7] - Average deposits grew by $102.7 million, or 4.0% annualized, compared to the prior quarter[11] - Total deposits increased to $10,231,340,000 as of September 30, 2025, up 4.9% from $9,745,552,000 a year earlier[32] - Total Loans and Leases increased to $9,750,854 thousand as of September 30, 2025, up from $9,613,808 thousand in June 2025, representing a growth of 1.43%[34] Credit Quality - The provision for credit losses was $11.3 million, an increase of $2.4 million compared to the previous quarter[6] - Nonperforming loans totaled $88.7 million, a decrease of $10.8 million from the previous quarter[14] - The allowance for credit losses as a percent of nonperforming loans and leases was 148.04% in Q3 2025, up from 133.62% in Q2 2025 and down from 168.77% in Q3 2024[30] - Nonperforming Assets as a percentage of total loans and leases, plus OREO and Repos decreased to 0.94% from 1.06% in June 2025, indicating improved asset quality[34] - Net Charge-offs for the three months ended September 30, 2025, totaled $12,247 thousand, significantly higher than $2,758 thousand in the previous quarter, resulting in a net charge-off ratio of 0.51%[35] Efficiency and Returns - The core efficiency ratio improved to 52.3%, a 176 basis point improvement from the previous quarter[21] - Average Tangible Common Equity Return was 14.90% for the three months ended September 30, 2025, compared to 14.82% in the previous quarter, reflecting strong profitability[38] - Core return on average assets for Q3 2025 was 1.34%, compared to 1.11% in Q2 2025 and 1.08% in Q3 2024[39] - Tangible common equity as a percentage of tangible assets increased to 9.58% in Q3 2025 from 9.42% in Q2 2025 and 8.84% in Q3 2024[40] Dividends and Shareholder Equity - A quarterly dividend of $0.135 per share was declared, representing a 3.9% increase from Q3 2024[23] - Shareholders' equity as a percent of total assets was 12.5% in Q3 2025, slightly up from 12.4% in Q2 2025 and 11.8% in Q3 2024[30] - Shareholders' equity increased to $1,541,837,000 as of September 30, 2025, up from $1,409,616,000 a year earlier[32]