First Commonwealth Financial Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 28 January 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net income rose to $44.9 million: Net income was $44.9 million, or $0.43 diluted EPS, up $3.5 million from the third quarter and $9.0 million from the fourth quarter of 2024. Source
• Core pre-tax pre-provision income edged up: Core PPNR was $63.2 million, up $0.2 million from the third quarter and $11.8 million from the fourth quarter of 2024. Core net income was $44.7 million, or $0.43 per diluted share. Source
• Asset yields rose on auto and equipment: Yield on earning assets rose three basis points. Indirect auto loan yields rose 11 basis points, and average indirect auto balances grew $32.3 million. Source
• Loan-to-deposit ratio rose to 95.4%: The loan-to-deposit ratio was 95.4% for 2025, up from 93.4% in the prior year. Source
• Provision fell after dealer floorplan charge: Provision expense was $7.0 million, down from $11.3 million. The prior quarter included a $4.4 million provision for a dealer floorplan relationship; unfunded-commitment provision fell $2.3 million. Source
• Nonperforming loans rose $3.1 million: Nonperforming loans were $91.8 million, or 0.94% of total loans, up from 0.91% last quarter. Nonperforming assets were 0.77% of total assets. Source
• Quarterly expense rose $1.7 million: Noninterest expense excluding merger costs was $74.3 million. Salaries and benefits rose $1.5 million, and software expense rose $0.7 million. Source
• Bank capital sits $348.0 million above minimum: Bank-level total regulatory capital ratio was 13.4%, which is $348.0 million above the 10.0% well capitalized requirement. Source

“We delivered improved profitability this quarter while maintaining sound credit quality and strengthening our balance sheet through core deposit growth.”

T. Michael Price, President and Chief Executive Officer

Guidance

What changed from last quarter

• New: Board authorized an additional $25.0 million of share repurchase authority in January 2026. Source
• New: $225.4 million of commercial loans were designated held for sale, lifting loans held for sale by $208.9 million in the quarter. Source

Earnings and profitability

• Net income rose to $44.9 million: Net income was $44.9 million, or $0.43 diluted EPS, up $3.5 million from the third quarter and $9.0 million from the fourth quarter of 2024. Source
• Core pre-tax pre-provision income edged up: Core PPNR was $63.2 million, up $0.2 million from the third quarter and $11.8 million from the fourth quarter of 2024. Core net income was $44.7 million, or $0.43 per diluted share. Source
• Full-year net income reached $152.3 million: Full-year net income was $152.3 million, or $1.47 per share, against $1.39 in 2024. Full-year core diluted EPS was $1.53, against $1.40. Source

Net interest income drivers

• Asset yields rose on auto and equipment: Yield on earning assets rose three basis points. Indirect auto loan yields rose 11 basis points, and average indirect auto balances grew $32.3 million. Source
• Funding costs eased on NOW accounts: Total cost of funds fell three basis points, led by a 16 basis point drop in non-personal NOW account cost and lower average short-term borrowings. Source
• Full-year margin reached 3.84%: The full-year net interest margin on an FTE basis was 3.84%, against 3.55% in 2024. Source

“The progress we made this year - both financially and operationally - positions us well to continue delivering long term value for our shareholders and supporting the financial success of our customers and communities.”

T. Michael Price, President and Chief Executive Officer

Loans and deposits

• Full-year loans grew 5.0%: Excluding acquired loans, total loans grew $451.9 million, or 5.0%, over the prior year. Including acquired loans, total loans grew 8.2%. Source
• Full-year average deposits rose 6.1%: Average deposits grew $580.1 million, or 6.1%. Excluding acquired deposits, average deposits grew $393.5 million, or 4.2%. Source
• Loan-to-deposit ratio rose to 95.4%: The loan-to-deposit ratio was 95.4% for 2025, up from 93.4% in the prior year. Source
• Period-end deposits slipped in quarter: End-of-period deposits fell $19.6 million, or 0.8% annualized, in the quarter, while average deposits rose $72.0 million. Source

Asset quality and provisions

• Provision fell after dealer floorplan charge: Provision expense was $7.0 million, down from $11.3 million. The prior quarter included a $4.4 million provision for a dealer floorplan relationship; unfunded-commitment provision fell $2.3 million. Source
• Nonperforming loans rose $3.1 million: Nonperforming loans were $91.8 million, or 0.94% of total loans, up from 0.91% last quarter. Nonperforming assets were 0.77% of total assets. Source
• Reserves released $3.8 million in quarter: The allowance fell $3.8 million in the quarter. The allowance was 1.32% of end-of-period loans, against 1.34% previously. 2025 reserves were built by $6.9 million. Source
• Net charge-offs fell to $11.3 million: Net charge-offs were $11.3 million, down $1.0 million. Highlights give 0.47% annualized, while the narrative gives 0.46%. Source

Noninterest income and expense

• Noninterest income edged lower: Noninterest income excluding securities gains was $24.3 million, down $0.2 million from the third quarter. Source
• Wealth fees fell while SBA gains rose: Wealth advisory fees fell $0.7 million and swap fees fell $0.2 million, while gains on SBA loan sales rose $0.8 million. Source
• Quarterly expense rose $1.7 million: Noninterest expense excluding merger costs was $74.3 million. Salaries and benefits rose $1.5 million, and software expense rose $0.7 million. Source
• Full-year expense rose $20.5 million: Full-year noninterest expense excluding merger costs was $290.4 million, up from $270.0 million. Core efficiency ratio was 54.42% for 2025. Source

Capital and shareholder returns

• Bank capital sits $348.0 million above minimum: Bank-level total regulatory capital ratio was 13.4%, which is $348.0 million above the 10.0% well capitalized requirement. Source
• Fourth-quarter buybacks of 1.45 million shares: Shares repurchased totaled 1,451,296 at a weighted average price of $15.94, under previously authorized programs. Source
• $22.7 million buyback capacity at year-end: Remaining repurchase capacity under the current program was $22.7 million at December 31, 2025, before the January authorization. Source
• Tangible book value per share up 11.8%: Tangible book value per share increased $1.18 over the year, or 11.8%. Source

Workforce, footprint and share count

• Full-time staff rose to 1,567: Full-time equivalent staff was 1,567 at December 31, 2025, up from 1,548 at September 30, 2025 and 1,512 a year earlier. Source
• Community banking offices number 126: The company reported 126 community banking offices in 30 counties, versus 127 in the third-quarter release. Source
• Shares outstanding fell at year-end: Shares outstanding at period end were 102,840,771, down from 104,293,298 at September 30, 2025. Source

Coming up, as management said on 28 January 2026

• Dividend payable February 20, 2026: The cash dividend is payable February 20, 2026 to shareholders of record as of February 6, 2026. Source

Figures management reported

Risks management discussed

• Financial: Criticized loans rose $19.0 million in the quarter, reaching $267.2 million at year-end. Source
• Regulatory: Card-related interchange income fell $6.3 million for 2025 as the Bank became subject to the Durbin amendment for a full twelve months. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.