FCF · First Commonwealth Financial Corporation

First Commonwealth Financial Corporation reported first quarter 2026 GAAP net income of $37.5 million ($0.37 per diluted share), down from $44.9 million ($0.43) in the prior quarter but up from $32.7 million ($0.32) in the year-ago quarter. The sequential decline was driven by a $4.2 million decrease in net interest income (FTE) to $109.3 million, partly due to fewer days and lower average loans, and a $3.7 million increase in provision for credit losses to $10.7 million. The net interest margin (FTE) contracted 6 basis points to 3.92% from the prior quarter, but expanded 30 bps year-over-year. Core pre-tax pre-provision net revenue fell $5.3 million sequentially to $57.9 million, reflecting lower net interest income and a slight increase in noninterest expense. Noninterest income (excluding securities gains) was relatively flat at $24.4 million. Asset quality metrics showed mixed trends: nonperforming loans increased slightly to $92.3 million (0.98% of total loans), while net charge-offs decreased to $8.2 million (0.35% annualized) from $11.3 million in the prior quarter. The allowance for credit losses increased to 1.37% of loans. Management noted credit headwinds but highlighted strengthening capital and liquidity, supported by a strong net interest margin and stable fee income. The Board authorized a 3.7% increase in the quarterly cash dividend to $0.14 per share, payable May 22, 2026. The company also repurchased 1,284,457 shares at a weighted average price of $17.67 during the quarter, with $18.4 million remaining under the buyback program. Capital ratios remain well above regulatory requirements.