First Commonwealth Financial Corp Q1 2026 Net Income Drops

By Chris Stiles • Tuesday, April 28 11:11 • Permanent Link

First Commonwealth Financial Corp. reported first-quarter 2026 net income of $37.5 million, down from $44.9 million in the fourth quarter of 2025 but up from $32.7 million a year earlier. Diluted earnings per share were $0.37, compared with $0.43 in the prior quarter and $0.32 in the first quarter of 2025.

Net interest income on a fully taxable equivalent basis fell to $109.3 million from $113.5 million in the fourth quarter, but rose from $95.8 million a year ago. Net interest margin narrowed to 3.92% from 3.98% in the prior quarter, though it was up from 3.62% in the year-earlier period.

Core pre-tax pre-provision net revenue was $57.9 million, down from $63.2 million in the fourth quarter and up from $46.9 million in the first quarter of 2025. The company’s core efficiency ratio worsened to 55.43% from 52.84% in the prior quarter, but improved from 59.08% a year earlier.

Noninterest income, excluding security gains, was $24.4 million, up $0.1 million from the fourth quarter and $1.9 million higher than the first quarter of 2025. Noninterest expense, excluding merger-related items, rose to $75.5 million from $74.3 million in the prior quarter and from $71.2 million a year earlier.

Provision for credit losses climbed to $10.7 million from $7.0 million in the fourth quarter, while net charge-offs fell to $8.2 million from $11.3 million. The allowance for credit losses rose to 1.37% of end-of-period loans from 1.32% at year-end.

Nonperforming loans increased to $92.3 million from $91.8 million in the prior quarter and from $59.4 million a year earlier. Criticized loans rose to $284.6 million, up $17.5 million from the fourth quarter. Net charge-offs as a percentage of average loans were 0.35%, down from 0.46% in the prior quarter and up from 0.14% a year earlier.

Average deposits increased $67.1 million from the prior quarter, while end-of-period deposits rose $158.9 million. The loan-to-deposit ratio fell 447 basis points to 90.9%.

Tangible book value per share increased $0.12 from the prior quarter. The company repurchased 1.28 million shares in the quarter at a weighted average price of $17.67.

The board raised the quarterly cash dividend 3.7% to $0.14 per share. Today the company's shares have moved -1.17% to a price of $18.62. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.