First Commonwealth Financial(US:FCF)2026-01-28 14:42Financial Performance - Net income for Q4 2025 was $44.9 million, or $0.43 per share, an increase of $3.5 million, or $0.04 per share from Q3 2025, and an increase of $9.0 million, or $0.08 per share from Q4 2024[4] - Net income for the year ended December 31, 2025, was $152.3 million, compared to $142.6 million in 2024, marking a 6.0% increase[32] - Net income for the quarter was $44,876, up from $41,328 in the prior quarter and $35,849 in the same quarter last year, reflecting a year-over-year growth of 25.3%[40] - Total net income for Q4 2025 reached $44,876,000, up from $41,328,000 in Q3 2025, representing a 6.2% increase[41] Revenue and Income Sources - Core pre-tax pre-provision net revenue (PPNR) for Q4 2025 totaled $63.2 million, an increase of $0.2 million from Q3 2025 and an increase of $11.8 million from Q4 2024[4] - Net interest income (FTE) for Q4 2025 was $113.6 million, an increase of $2.1 million from Q3 2025 and an increase of $18.1 million from Q4 2024[13] - Interest income for Q4 2025 reached $163,925,000, up 9.2% from $149,996,000 in Q4 2024[33] - Total noninterest income for the year ended December 31, 2025, was $96,824,000, down 2.9% from $99,231,000 in 2024[33] Asset and Loan Growth - Average deposits increased by $72.0 million, or 2.8% annualized, compared to the prior quarter, while total loans increased by $28.6 million, or 1.2% annualized[8] - Total loans for the year ended December 31, 2025, grew by $743.7 million, or 8.2% compared to the prior year[14] - Total loans and leases amounted to $9,779,491, an increase from $9,750,854 in the previous quarter and $9,035,745 year-over-year[36] - Total assets as of December 31, 2025, were $12,343,036,000, a 6.5% increase from $11,584,936,000 a year earlier[34] Efficiency and Ratios - The core efficiency ratio for Q4 2025 was 52.84%, an increase of 54 basis points from Q3 2025 and a decrease of 323 basis points from Q4 2024[22] - The core efficiency ratio improved to 54.42% for the year ended December 31, 2025, compared to 55.36% in the previous year[24] - The return on average assets (ROAA) for Q4 2025 was 1.46%, compared to 1.34% in Q3 2025 and 1.23% in Q4 2024[8] - The return on average tangible common equity was 15.90%, an increase from 14.96% in the previous quarter and 14.40% year-over-year[40] Credit Quality - The provision for credit losses in Q4 2025 was $7.0 million, a decrease of $4.3 million compared to Q3 2025[16] - Nonperforming loans totaled $91.8 million, an increase of $3.1 million from the previous quarter, representing 0.94% of total loans[17] - Nonperforming loans as a percentage of end-of-period loans and leases was 0.94% at December 31, 2025, compared to 0.91% in the previous quarter[32] - Net charge-offs for the quarter were $11,272, a decrease from $12,247 in the previous quarter and $13,691 year-over-year, indicating improved asset quality[37] Expenses - For the year ended December 31, 2025, noninterest expense totaled $290.4 million, an increase of $20.5 million from the prior year, primarily due to a $14.7 million rise in salaries and benefits[23] - The company reported a total noninterest expense of $294,828,000 for the year ended December 31, 2025, an increase of 8.8% from $270,745,000 in 2024[33] Capital and Dividends - Capital ratios at December 31, 2025, included Total Capital at 14.5%, Tier I at 12.7%, Leverage at 10.9%, and Common Equity Tier I at 12.1%, exceeding Basel III requirements[26] - First Commonwealth Financial Corporation declared a quarterly dividend of $0.135 per share, reflecting a 3.9% increase from the fourth quarter of 2024[25] Future Outlook - The company will host a quarterly conference call on January 28, 2026, to discuss its financial results for the fourth quarter and full year 2025[27] - The company operates 126 community banking offices across 30 counties in Pennsylvania and Ohio, providing a full range of financial services[28]