First Commonwealth Financial (FCF) Q4 2025 earnings summary

Executive summary

• Core EPS for Q4 2025 was $0.43, up $0.04 sequentially, with net interest margin expanding to 3.98% and core ROA at 1.45%.

• Average deposits and total loans grew 2.8% and 1.2% respectively in Q4, with annualized loan growth at 8.2% and deposit growth at 6.1% for the year.

• Fee income represented 18% of total revenue, with a focus on further growth through the regional banking model.

• Completed the CenterBank acquisition, contributing to deposit and loan growth, and repurchased 2.1 million shares in 2025, offsetting most shares issued for the acquisition.

• The Board approved $50 million in new share repurchase programs, with $22.7 million remaining at year-end and an additional $25 million authorized in January 2026.

Financial highlights

• Net interest income for 2025 was $427.5 million, up $47.2 million year-over-year, with Q4 net interest income (FTE) at $113.6 million, up $2.1 million sequentially.

• Deposit costs fell 1 basis point to 1.83% in Q4; average deposit growth for the year was 6.1%.

• Non-interest income fell $3 million year-over-year, despite $6.3 million in Durbin amendment headwinds.

• Core efficiency ratio for Q4 was 52.8%, with core non-interest expense up $1.7 million from the prior quarter due to hiring and software costs.

• Provision expense was $7.0 million, down $4.3 million from the previous quarter.

Outlook and guidance

• NIM expected to dip 5-10 basis points in Q1 2026, then gradually improve to around 4% by year-end, with macro swap maturities providing a cumulative 3bps benefit by year-end 2026.

• Loan growth guidance for 2026 is mid-single digits, similar to 2025, with strong commercial and construction pipelines.

• Non-interest income expected to remain flat in 2026; operating cost increases targeted at 3% year-over-year.

• Stock buybacks will continue, with $22.7 million remaining under current authorization and an additional $25 million approved.

• The company maintains strong capital and liquidity positions to support continued capital return and growth.