First Commonwealth Financial (FCF) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $41.3 million ($0.39 diluted EPS), up from $32.1 million in Q3 2024, with core pre-tax pre-provision income at $62.9 million and core PTPP ROAA of 2.05%.

• Return on average assets was 1.34% for Q3 2025; net interest margin expanded to 3.92%, and average deposits increased 4% quarter-over-quarter.

• Loan growth was 5.7% annualized, with strong contributions from equipment finance, commercial banking, indirect, and home equity lending.

• Tangible book value per share rose 11.6% annualized; tangible common equity ratio increased to 9.6%.

• CenterGroup Financial, Inc. acquisition closed April 30, 2025, adding $292.6 million in loans and $278.0 million in deposits.

Financial highlights

• Net interest income (FTE) was $111.5 million, up $4.9 million from last quarter and $14.6 million year-over-year.

• Net interest margin rose 9bps sequentially and 36bps year-over-year to 3.92%.

• Average loans increased $222.8 million from last quarter; average deposits grew $102.7 million sequentially.

• Noninterest income (excluding securities gains) was $24.5 million, down $0.3 million sequentially and flat year-over-year.

• Net charge-offs for the quarter were $12.2 million, mainly due to a $5.5 million dealer floor plan charge-off and $2.8 million from the sale of CenterBank loans.

Outlook and guidance

• Fourth quarter NIM expected to face short-term downward pressure due to Fed rate cuts and seasonal deposit declines, but recovery to ~3.9% projected in 2026.

• Loan and deposit growth guidance remains mid-single-digit, with continued focus on improving deposit mix and growing transaction accounts.

• Net charge-offs expected to normalize in the mid to high 20 basis points range.

• Fee income anticipated to gradually increase in 2026.

• Quarterly dividend increased 3.7% in April 2025; Q3 dividend declared at $0.135 per share, a 3.9% increase year-over-year.