First Commonwealth Announces Second Quarter 2025 Earnings; Declares Quarterly Dividend

Financial Performance - First Commonwealth Financial Corporation reported GAAP net income of $33.4 million for Q2 2025, an increase of $0.7 million from Q1 2025 but a decrease of $3.7 million from Q2 2024 [3][8] - Core net income for the same period was $39.5 million, reflecting an increase of $6.7 million from the previous quarter and $2.4 million from the same quarter last year [3][9] - Net interest income (FTE) reached $106.6 million, up $10.7 million from Q1 2025 and $11.3 million from Q2 2024 [3][10] Profitability Metrics - The diluted earnings per share remained stable at $0.32 compared to Q1 2025, while core diluted earnings per share increased to $0.38 from $0.32 in the previous quarter [3][9] - Return on average assets (ROA) was 1.11%, a slight decrease from 1.14% in the previous quarter, while core ROA improved to 1.31% [3][4] - The net interest margin improved to 3.83%, an increase of 21 basis points from the previous quarter and 26 basis points from the same quarter last year [3][11] Asset Quality - The provision for credit losses was $8.9 million, up from $5.7 million in the previous quarter, primarily due to an increase in specific reserves related to a commercial floorplan relationship [6][14] - Total nonperforming loans increased to $99.5 million, up $40.1 million from the previous quarter, largely due to the aforementioned commercial relationship [6][17] - The allowance for credit losses as a percentage of end-of-period loans was 1.39%, an increase from 1.32% in the previous quarter [6][15] Capital and Liquidity - Total shareholder's equity increased by $70.7 million from the previous quarter, driven by equity issued for the CenterGroup acquisition and an increase in retained earnings [6][16] - The Bank-level Total Capital ratio stood at 13.4%, indicating a strong capital position above regulatory requirements [6][16] - The company declared a quarterly dividend of $0.135 per share, representing a 3.9% increase from the same quarter last year [6][24] Growth and Strategic Initiatives - Average deposits (excluding acquired balances) increased by $91.6 million, or 3.8% annualized, compared to the prior quarter [6][12] - Total loans (excluding acquired balances) grew by $183.7 million, or 8.1% annualized, from the previous quarter [6][13] - The company has been recognized by Forbes as one of the World's Best Banks for 2025, marking its fourth consecutive year of recognition [6][6]