First Commonwealth Financial Reports 2024 Earnings and Outlook

First Commonwealth Financial ( (FCF) ) has released its Q4 earnings. Here is a breakdown of the information First Commonwealth Financial presented to its investors.

First Commonwealth Financial Corporation, headquartered in Indiana, Pennsylvania, is a financial services company providing a range of banking and insurance products throughout Pennsylvania and Ohio.

First Commonwealth Financial Corporation reported its financial results for the fourth quarter and full year of 2024, highlighting a net income of $35.8 million for the fourth quarter, a decrease from $44.8 million in the same quarter of 2023, and a full-year net income of $142.6 million, down from $157.1 million in 2023. Despite these decreases, the company declared a quarterly dividend, reflecting its commitment to returning value to shareholders.

Key financial metrics from the report include a core return on average assets of 1.23% for the fourth quarter and a net interest margin of 3.54%, both of which saw slight declines compared to the previous year’s figures. Total loans grew by $23.5 million in the fourth quarter, driven by increases in the Equipment Finance and Commercial Real Estate portfolios, while average deposits increased by $207.1 million. However, the net interest income and noninterest income both saw declines compared to prior periods.

The company’s asset quality showed mixed results, with a decrease in nonperforming loans by $13.3 million from the previous quarter, yet an increase in net charge-offs to $13.7 million. First Commonwealth also maintained a strong capital position with a Total Regulatory Capital ratio of 13.6%, indicating a solid buffer above regulatory requirements.

Looking ahead, First Commonwealth’s management remains focused on sustainable growth into 2025, emphasizing mid-single-digit loan growth, core deposit acquisition, and operational efficiency, while navigating challenges such as deposit pricing pressures and higher credit costs.