First Commonwealth Financial Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 July 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• GAAP earnings rose from first quarter: GAAP net income was $44.6 million, or $0.44 per diluted share, up $0.07 from the first quarter. Core diluted EPS was also $0.44. Source
• Core pre-tax pre-provision revenue rose: Core pre-tax pre-provision net revenue totaled $65.0 million, up $7.1 million from the first quarter and $6.3 million from a year earlier. Source
• Net interest margin reached 4.01%: Net interest margin (FTE) was 4.01%, up nine basis points from the first quarter and 18 basis points from a year earlier. Net interest income (FTE) was $112.8 million. Source
• Lower deposit costs lifted margin: Management attributed the margin gain mainly to lower deposit costs and a better deposit mix. Loan yield rose four basis points and securities yield rose 15 basis points. Source
• Charge-offs rose on six credit resolutions: Net charge-offs were $11.4 million, or 0.49% of average loans annualized, up from $8.2 million and 0.35% in the first quarter. Source
• Core efficiency ratio improved: Core efficiency ratio was 52.24%, down from 55.43% in the first quarter and 54.06% a year earlier. Source

“We successfully balanced profitable loan growth with disciplined funding costs, supporting continued margin expansion and meaningful earnings growth.”

T. Michael Price, President and Chief Executive Officer

Guidance

Earnings and profitability

• GAAP earnings rose from first quarter: GAAP net income was $44.6 million, or $0.44 per diluted share, up $0.07 from the first quarter. Core diluted EPS was also $0.44. Source
• Core pre-tax pre-provision revenue rose: Core pre-tax pre-provision net revenue totaled $65.0 million, up $7.1 million from the first quarter and $6.3 million from a year earlier. Source
• Core return on tangible equity rose: Core return on average tangible common equity was 15.66%, up 221 basis points from the first quarter and 84 basis points from a year earlier. Source
• Core return on assets improved: Core return on average assets was 1.46%, up 22 basis points from the first quarter. Core pre-tax pre-provision ROAA was 2.14%, also up 22 basis points. Source

Net interest income and margin

• Net interest margin reached 4.01%: Net interest margin (FTE) was 4.01%, up nine basis points from the first quarter and 18 basis points from a year earlier. Net interest income (FTE) was $112.8 million. Source
• Lower deposit costs lifted margin: Management attributed the margin gain mainly to lower deposit costs and a better deposit mix. Loan yield rose four basis points and securities yield rose 15 basis points. Source
• Net interest income rose on margin: Net interest income (FTE) rose $3.5 million from the first quarter, helped by an extra day, despite a $28.1 million decline in average interest earning assets. Source
• Cost of funds fell seven basis points: Total cost of funds was 1.79%, down seven basis points from the first quarter. Source

“diversified revenue streams, focus on operating leverage, and regionally led business model positions us to continue creating value for our stakeholders.”

T. Michael Price, President and Chief Executive Officer

Deposits and loan balances

• Average deposits rose, period-end fell: Average deposits grew $52.3 million, or 2.0% annualized. Period-end deposits decreased $149.8 million, or 5.8% annualized. Average time deposits fell $51.3 million. Source
• Average loans fell, period-end rose: Average loans declined $106.3 million, or 4.5% annualized. Period-end total loans rose $46.5 million, or 2.0% annualized, from the first quarter. Source
• Loan-to-deposit ratio increased: Loan-to-deposit ratio rose to 92.7% from 90.9% at the end of the first quarter. Source
• Equipment finance grew, CRE declined: Equipment finance loans and leases rose to $784.8 million from $746.7 million. Commercial real estate loans fell to $3,083.8 million from $3,148.8 million. Source

Asset quality and credit costs

• Provision fell after prior reserve build: Provision expense was $8.9 million, versus $10.7 million in the first quarter, when reserves for individually analyzed commercial credits rose $4.2 million. Source
• Charge-offs rose on six credit resolutions: Net charge-offs were $11.4 million, or 0.49% of average loans annualized, up from $8.2 million and 0.35% in the first quarter. Source
• Nonperforming loans fell to 0.86%: Nonperforming loans totaled $81.6 million, down $10.7 million from the first quarter. The ratio to total loans was 0.86%, down from 0.98%. Source
• Allowance ratio slightly lower: The allowance for credit losses was 1.35% of period-end loans, down from 1.37%, and equal to 156.08% of nonperforming loans. Source

Noninterest income and expense

• Noninterest income rose on sub debt gain: Noninterest income excluding securities gains was $26.7 million, up $2.3 million from the first quarter, including a $0.8 million gain on early redemption of subordinated debt. Source
• Expense fell on vendor rebate: Noninterest expense excluding merger costs was $74.1 million, down $1.3 million from the first quarter, with lower snow removal and FDIC assessment costs. Source
• Core efficiency ratio improved: Core efficiency ratio was 52.24%, down from 55.43% in the first quarter and 54.06% a year earlier. Source
• Staff count slightly lower: Full-time equivalent staff was 1,589, down from 1,592 at March 31, 2026 and up from 1,562 a year earlier. Source

Capital and shareholder returns

• Capital levels exceed Basel III: Management said current capital levels exceed the fully phased-in Basel III requirements issued by U.S. bank regulators. Source
• Bank total capital ratio 14.0%: Bank-level total capital ratio was 14.0%, leaving $393.8 million above the 10.0% well-capitalized requirement, up from $376.3 million in the first quarter. Source
• Buybacks at $18.66 average price: The company repurchased 645,695 shares at a weighted average $18.66 in the quarter, leaving $13.0 million of remaining capacity under the current program at June 30, 2026. Source
• Quarterly dividend $0.14 per share: Quarterly common dividend of $0.14 per share, 3.7% above the second quarter of 2025 level. Source
• Tangible book value per share rose: Tangible book value per share rose to $11.58 from $11.34 in the first quarter. Source
• AOCI rose to 6.04% of TCE: AOCI as a percentage of tangible common equity was 6.04%, up 14 basis points from the first quarter. Source

Coming up, as management said on 28 July 2026

• Dividend payment date: Cash dividend of $0.14 per share is payable August 21, 2026 to holders of record as of August 7, 2026. Source

Figures management reported

Risks management discussed

• External: Management said the economic environment remains dynamic. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 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.