Financial Data and Key Metrics Changes - The company reported a robust 17% revenue growth, reaching $1.5 billion for the first quarter of fiscal 2026 [4][14] - Adjusted diluted EPS increased by 5% to $1.22, while diluted EPS decreased by 10% to $1.06 [14][15] - Total expenses rose by 29% to $998 million, primarily due to the Paycor acquisition [15] - Cash flow from operations was $718 million, with a return on equity of 40% [15] Business Line Data and Key Metrics Changes - Management Solutions revenue increased by 21% to $1.2 billion, driven by the Paycor acquisition and higher revenue per client [14] - PEO and Insurance Solutions revenue grew by 3% to $329 million, supported by an increase in average PEO worksite employees [14] - Interest on funds held for clients surged by 27% to $48 million due to the inclusion of Paycor balances [15] Market Data and Key Metrics Changes - The small business employment environment remains stable, with no signs of recession and moderate wage inflation [11][12] - The company noted a strong demand for its PEO services, with mid-single-digit worksite employee growth [11][26] Company Strategy and Development Direction - The integration of Paycor is progressing well, with targeted revenue synergies and cost synergies expected to exceed initial estimates [4][5] - The company is focusing on cross-selling opportunities, particularly in retirement, ASO, and PEO solutions to Paycor's client base [5][6] - New product offerings, such as BillPay, are aimed at enhancing service delivery and client experience [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment, citing renewed business confidence due to clarity on tariffs, taxes, and inflation [11][12] - The company reaffirmed its fiscal 2026 revenue growth outlook of 16.5% to 18.5%, with adjusted diluted EPS growth now expected to be between 9% and 11% [16][17] Other Important Information - The company has launched several AI-driven initiatives to enhance operational efficiency and client support [9][10] - Paychex was recognized by Newsweek as one of America's greatest companies and most admired workplaces, highlighting the importance of its workforce [13] Q&A Session Summary Question: Update on demand environment and employer size segments - Management noted that demand remains consistent, with solid activity across all segments, particularly in the micro segment [20][21] Question: Paycor's recurring revenue growth - Management confirmed that recurring revenue for Paycor is expected to grow in double digits for the full year, despite some headwinds in Q1 [22] Question: PEO environment characterization - Management indicated that the PEO continues to perform well, with record retention and strong demand, despite some competitive challenges in specific markets [25][26] Question: Direct expenses and SG&A comparison - Management highlighted that direct expenses showed strong leverage, while SG&A expenses were impacted by the Paycor acquisition [31][32] Question: Integration-related disruptions affecting Paycor's growth - Management clarified that Q1 performance was in line with expectations, and integration challenges were being managed effectively [36][38] Question: Retention rates and bankruptcy impacts - Management reported strong retention rates, with concentrated losses in small businesses due to bankruptcies, but overall retention remains robust [50][51] Question: PEO market competitiveness - Management described the competitive environment as stable, with a focus on delivering value rather than engaging in aggressive pricing strategies [59][60] Question: Bill.com partnership and customer profile - Management expressed excitement about the Bill.com partnership, aimed at enhancing payment capabilities for small businesses [65][66] Question: AI integration and productivity improvements - Management discussed ongoing AI initiatives to improve productivity and client service, emphasizing the potential for significant value creation [72][73] Question: Cost synergies and future milestones - Management indicated that most cost synergy actions are complete, with additional opportunities in procurement and operational efficiencies [88][89]

Financial Data and Key Metrics Changes - Total revenue increased by 17% year-over-year to $1.5 billion [13] - Management Solutions revenue rose by 21% to $1.2 billion, driven by the addition of Paycor and higher revenue per client [13] - PEO and Insurance Solutions revenue grew by 3% to $329 million, supported by an increase in average PEO worksite employees [13] - Total expenses increased by 29% to $998 million, primarily due to the Paycor acquisition [14] - Adjusted diluted EPS increased by 5% to $1.22, while diluted EPS decreased by 10% to $1.06 [14][15] Business Line Data and Key Metrics Changes - Management Solutions revenue growth was significantly influenced by Paycor, contributing approximately 17% to the overall growth [13] - PEO business showed mid-single-digit worksite employee growth, with strong demand and record retention [11][25] - Interest on funds held for clients increased by 27% to $48 million due to the inclusion of Paycor balances [14] Market Data and Key Metrics Changes - The small business employment environment remains stable, with no signs of recession and moderate wage inflation [11][12] - The demand environment is consistent, with increased activity and solid RPO bookings, particularly in the micro segment [19] Company Strategy and Development Direction - The integration of Paycor is on track, with targeted revenue synergies and cost synergies expected to reach approximately $90 million [4][14] - The company is focusing on cross-selling opportunities, particularly in retirement, ASO, and PEO solutions to Paycor's client base [5] - New marketing campaigns and partnerships, such as the CPA Partner Pro portal and BillPay powered by Bill.com, are aimed at expanding service offerings [8][9] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the macro environment, citing renewed business confidence due to clarity on tariffs, taxes, and inflation [12] - The company expects total revenue growth for fiscal 2026 to be between 16.5% and 18.5%, with adjusted diluted EPS growth now expected to be between 9% and 11% [15][16] - The PEO model is seen as a key growth driver, allowing small businesses to offer competitive benefits [11] Other Important Information - The company has launched AI-driven tools to enhance client experiences and operational efficiency, including generative AI solutions for HR guidance [10][92] - Paychex was recognized by Newsweek as one of America's greatest companies and most admired workplaces, highlighting the importance of company culture [12] Q&A Session Summary Question: Update on demand environment and employer size segments - Demand remains consistent with historical trends, with increased activity and solid RPO bookings across segments [19] Question: Paycor recurring revenue growth expectations - Recurring revenue for Paycor is expected to grow in double digits for the full year, aligning with expectations [21] Question: PEO environment characterization - The PEO business continues to perform well, with mid-single-digit worksite employee growth and record retention [25][26] Question: Direct expenses and operating expenses outlook - Direct expenses showed strong leverage, with ongoing operating expenses expected to remain consistent with current trends [32] Question: Impact of regulatory environment on business - The small business market remains resilient, with stability in employment and wage inflation below 3% [104]

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].