First Commonwealth Financial Reports Q1 2025 Results with $32.7 Million Net Income

First Commonwealth Financial Corporation reported its financial results for the first quarter of 2025, revealing a net income of $32.7 million, or $0.32 per diluted share, compared to $37.5 million, or $0.37 per diluted share, in the same period of 2024. The decrease in net income was attributed to a $5.7 million increase in noninterest expenses, a $1.5 million decline in noninterest income, and a $1.5 million increase in the provision for credit losses. However, net interest income rose by $3.2 million, driven by a decrease in the cost of interest-bearing liabilities and an increase in the yield on interest-earning assets.

Total assets increased to $11.8 billion as of March 31, 2025, up from $11.6 billion at the end of 2024. The company's loan portfolio also grew, with net loans and leases reaching $9.1 billion, an increase from $9.0 billion at the end of the previous year. Total deposits rose to $9.9 billion, compared to $9.7 billion at the end of 2024, reflecting a $183.6 million increase during the first quarter. The increase in deposits was primarily driven by growth in interest-bearing demand and savings accounts.

In terms of operational developments, First Commonwealth completed the acquisition of CenterGroup Financial, Inc. on April 30, 2025, which added approximately $341.6 million in total assets, $302.5 million in loans, and $278.1 million in deposits. This strategic move is expected to enhance the company's presence in the Cincinnati market. The company also reported an increase in its employee headcount, with 1,538 full-time equivalent employees as of March 31, 2025, compared to 1,465 a year earlier.

The provision for credit losses increased to $5.7 million for the first quarter of 2025, up from $4.2 million in the same period of 2024. The allowance for credit losses remained stable at 1.32% of total loans and leases, with nonperforming loans as a percentage of total loans increasing to 0.65% from 0.47% a year earlier. The company reported net charge-offs of $3.1 million for the quarter, a decrease from $4.3 million in the prior year.

Looking ahead, First Commonwealth remains focused on managing its credit risk and enhancing its operational efficiency. The company anticipates that the integration of CenterGroup Financial will contribute positively to its growth strategy. Additionally, management is closely monitoring economic conditions and market trends to navigate potential challenges and capitalize on opportunities in the financial services sector.