First Commonwealth Financial(US:FCF)2025-11-10 21:02Financial Performance - Net income for the three months ended September 30, 2025, was $41,328 thousand, a 28.8% increase from $32,086 thousand in the same period of 2024[8]. - Basic earnings per share increased to $0.40 for the three months ended September 30, 2025, compared to $0.31 for the same period in 2024, marking a growth of 29.0%[8]. - Net interest income after provision for credit losses was $99,796 thousand for the three months ended September 30, 2025, compared to $85,900 thousand for the same period in 2024, reflecting a year-over-year increase of 16.2%[8]. - Segment net income for Q3 2025 was $41,328,000, up from $32,086,000 in Q3 2024, representing a growth of 28.5%[202]. - Net interest income for Q3 2025 increased to $111,123,000 from $96,515,000 in Q3 2024, and for the nine months ended September 30, 2025, it rose to $312,886,000 from $283,811,000 in 2024, reflecting a growth of 15.1% year-over-year[202]. Asset and Deposit Growth - Total assets increased to $12,310,376 thousand as of September 30, 2025, up from $11,584,936 thousand at December 31, 2024, representing a growth of 6.3%[6]. - Total deposits reached $10,231,340 thousand, up 5.7% from $9,678,019 thousand at December 31, 2024[6]. - The net increase in deposits for the nine months ended September 30, 2025, was $275,392 thousand, a decrease from $553,269 thousand in 2024, indicating a decline of 50.2%[15]. Loan and Lease Performance - Total loans and leases rose to $9,558,683 thousand, an increase of 7.8% from $8,864,848 thousand at the end of 2024[6]. - Total loans and leases increased to $9,688,288 thousand as of September 30, 2025, up from $8,983,754 thousand as of December 31, 2024, representing an increase of approximately 7.8%[68]. - The commercial, financial, agricultural, and other loan category rose to $2,009,025 thousand, a 19.7% increase from $1,677,989 thousand in the previous year[68]. - The total outstanding balance for loans to individuals rose to $1,442,295 thousand, compared to $1,355,974 thousand, reflecting a growth of 6.4%[68]. Credit Quality and Losses - The allowance for credit losses increased to $129,605 thousand as of September 30, 2025, from $118,906 thousand at December 31, 2024, indicating a proactive approach to risk management[6]. - The provision for credit losses increased to $29,720 thousand in 2025 from $22,680 thousand in 2024, indicating a rise of 31.5%[15]. - Total net charge-offs for the nine months ended September 30, 2025, were $18.1 million, slightly up from $17.5 million in the same period of 2024, reflecting an increase of about 3.4%[96]. - The credit quality profile shows that $9,440,074 thousand of loans are classified as Pass, while total Non-Pass loans amount to $248,214 thousand as of September 30, 2025[86]. Acquisition and Integration - The Company completed the acquisition of CenterGroup Financial, Inc. on April 30, 2025, for a total consideration of $46.206 million, which included 3,016,009 shares of common stock valued at $15.32 per share[18][20]. - The fair value of total assets acquired from Center was $336.164 million, while the total liabilities assumed amounted to $304.457 million, resulting in identifiable net assets of $31.707 million and goodwill of $14.499 million[19]. - The acquisition added three full-service banking offices and a mortgage office in the Cincinnati, Ohio market to the Company's operations[18]. Noninterest Income and Expenses - Total noninterest income for Q3 2025 was $24,857,000, a slight increase from $24,698,000 in Q3 2024, while total noninterest income for the nine months ended September 30, 2025, was $72,108,000, down from $73,896,000 in the same period of 2024[199]. - Salaries and employee benefits for Q3 2025 increased to $40,717,000 from $38,618,000 in Q3 2024, indicating a rise of 5.4%[202]. - Card-related interchange income decreased to $3,985,000 in Q3 2025 from $4,137,000 in Q3 2024, reflecting a decline of 3.7%[202]. Market and Economic Conditions - Future economic conditions and interest rate fluctuations are expected to impact the company's performance and strategic planning[205]. - The company anticipates continued growth in net interest income and noninterest income, driven by strategic initiatives and market expansion efforts[205].