First Commonwealth Financial Stock Earnings Reports

First Commonwealth reported Q1 2026 net income of $37.5 million ($0.37 EPS), modestly below consensus. Net interest income declined as loan balances fell (including a $210M sale of Eastern PA commercial loans) and elevated commercial loan payoffs ($630M in Q1, +$150M YoY) pressured NII; NIM was 3.92% (in line with guidance). Management expects NIM expansion as replacement yields on new fixed-rate loans are ~54 bps higher and $150M of swaps roll off, and they have modestly raised NIM guidance toward the low-4% range by year-end under a one-cut Fed base case. Deposits grew (6.3% end-to-end annualized) and the lower loan-to-deposit ratio (~91%) gives the bank room to test lower deposit rates to manage funding costs. Credit: provision for loan losses rose to $10.7M (including $9.6M of specific reserves for three larger credits); NPLs remain elevated at 0.98% with ~$28.1M (30% of NPLs) SBA-guaranteed. Noninterest expense increased to $75.5M (efficiency ratio 55.4%); management plans to slow expense growth and target improved efficiency as the bank scales. Capital deployment: $22.7M of buybacks in the quarter (with $25M repurchase authorization remaining) and a $0.02 dividend increase (11th consecutive year of raises). Strategic highlights: Center Bank acquisition exceeding expectations (helped Cincinnati growth), strong residential mortgage and SBA/wealth performance, continued fintech/AI adoption, and focus on growing the bank steadily while improving credit performance and efficiency. Outlook: management reiterated mid-single-digit loan growth ambition, expects NIM to drift up toward low-4% by year-end, and to continue buybacks within capital-generation limits.