First Commonwealth (FCF) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: 3.12%
• Average Volume (3M): 633.34K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.70
• Revenue Growth: 3.80%
• EPS Growth: -6.23%
• Country: US
• Employees: 1,538
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.39
• Shares Outstanding: 103,765,980
• 10 Day Avg. Volume: 561,870
• 30 Day Avg. Volume: 633,341
• PEG Ratio: -1.25
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 15.14
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 11.39
• 1Y Price Target: $19.00
• Price Target Upside: 24.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): $521.60M

• Rating: 76 Outperform
• Price Target: $18.50 ▲(20.99% Upside)

First Commonwealth Financial Corporation shows strong financial performance with robust profitability and a solid balance sheet. The stock is attractively valued with a reasonable P/E ratio and a good dividend yield. Technical indicators suggest a positive trend, though caution is advised due to potential overbought conditions. The earnings call and recent corporate events further support a positive outlook, despite some challenges.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates minimal leverage, enhancing financial stability and providing flexibility for future investments.

Loan and Deposit Growth

Robust loan and deposit growth signals strong customer demand and effective business expansion, supporting long-term revenue growth.

Governance Enhancement

The addition of a director with expertise in IT and cybersecurity strengthens governance and risk management, crucial for sustainable operations.

Negative Factors

Dealer Floor Plan Fraud Impact

Significant charge-offs from fraud impact financial results and highlight potential weaknesses in risk management practices.

Net Charge-Off Increase

Increased charge-offs can strain profitability and indicate challenges in credit quality, affecting long-term financial health.

Potential Net Interest Margin Pressure

Potential margin compression from rate cuts could reduce interest income, impacting profitability and financial performance.

First Commonwealth Business Overview & Revenue Model

Company Description

First Commonwealth Financial Corporation (FCF) is a financial services holding company based in Indiana, Pennsylvania. The company operates through its subsidiaries, primarily in the banking sector, providing a range of financial products and services, including retail and commercial banking, wealth management, and insurance solutions. FCF serves individuals, businesses, and government entities, focusing on delivering personalized financial services tailored to the needs of its diverse clientele.

How the Company Makes Money

First Commonwealth generates revenue through various key streams primarily centered around interest income and non-interest income. Interest income is earned from loans and mortgages issued to customers, which typically constitutes the largest portion of its revenue. This includes commercial loans, consumer loans, and mortgage loans. Additionally, the company earns non-interest income through fees associated with its banking services, which may include account maintenance fees, transaction fees, and service charges. Wealth management services contribute to non-interest income as well, providing financial advisory services, asset management, and trust services. Furthermore, First Commonwealth may engage in partnerships with other financial institutions and service providers to enhance its product offerings and expand its customer base, which can also contribute to its overall earnings.

First Commonwealth Financial Statement Overview

Summary

First Commonwealth demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust, characterized by low leverage and a strong equity position. Cash flow generation is stable, though there is room for improvement in cash flow flexibility. The company is well-positioned in the regional banking sector, but should monitor cost management to maintain margins.

Income Statement

First Commonwealth shows a solid revenue growth trajectory with a TTM revenue growth rate of 1.21%. The company maintains healthy margins, with a TTM gross profit margin of 62.24% and a net profit margin of 25.89%. However, there is a slight decline in gross profit margin compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet is strong with a low TTM debt-to-equity ratio of 0.012, indicating minimal leverage and financial stability. The return on equity is modest at 3.44%, suggesting efficient use of equity capital. The equity ratio is high, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a TTM free cash flow growth rate of 7.11%. The operating cash flow to net income ratio is nearly 1, indicating robust cash generation relative to earnings. However, the free cash flow to net income ratio of 0.97 suggests limited cash flow flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	716.13M	699.69M	626.61M	428.66M	400.60M	395.69M
Gross Profit	469.13M	448.95M	467.47M	389.82M	386.67M	306.03M
EBITDA	186.43M	184.01M	201.66M	170.74M	184.26M	101.86M
Net Income	143.28M	142.57M	157.06M	128.18M	138.26M	73.45M
Balance Sheet
Total Assets	12.31B	11.58B	11.46B	9.81B	9.55B	9.07B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.28B	1.17B	916.90M	1.44B	1.19B
Total Debt	411.61M	343.12M	784.59M	553.92M	320.58M	350.63M
Total Liabilities	10.77B	10.18B	10.15B	8.75B	8.44B	8.00B
Stockholders Equity	1.54B	1.41B	1.31B	1.05B	1.11B	1.07B
Cash Flow
Free Cash Flow	145.53M	113.92M	128.72M	140.21M	154.41M	98.08M
Operating Cash Flow	149.31M	129.46M	150.76M	151.41M	165.05M	105.70M
Investing Cash Flow	-416.12M	-121.72M	-574.27M	-588.79M	-565.30M	-483.14M
Financing Cash Flow	-154.09M	-21.32M	416.26M	196.25M	439.05M	612.16M

First Commonwealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCF, the sentiment is Positive. The current price of 15.29 is below the 20-day moving average (MA) of 16.34, below the 50-day MA of 16.12, and below the 200-day MA of 15.96, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 89.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCF.

First Commonwealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	79 Outperform	$1.66B	9.45	21.81%	0.27%	7.80%	19.38%
OFG	78 Outperform	$1.84B	9.52	14.82%	2.73%	3.98%	6.75%
CHCO	78 Outperform	$1.80B	14.40	16.42%	2.65%	6.09%	11.49%
FCF	76 Outperform	$1.78B	12.39	9.71%	3.12%	3.80%	-6.23%
NWBI	69 Neutral	$1.87B	14.52	6.55%	6.28%	15.86%	16.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VBTX	59 Neutral	―	―	7.25%	3.50%	-1.28%	32.40%

First Commonwealth Corporate Events

First Commonwealth Announces New Share Repurchase Program

On December 1, 2025, First Commonwealth Financial Corporation announced a new $25 million share repurchase program following the completion of a similar program in the fourth quarter of 2025, where 1,560,477 shares were repurchased at an average price of $16.02. This initiative, authorized by the Board of Directors, allows management to repurchase shares through various methods in compliance with federal securities laws, potentially impacting the company’s stock value and shareholder returns.

First Commonwealth Appoints Joseph DiVito Jr. as Director

On November 1, 2025, First Commonwealth Financial Corporation appointed Joseph V. DiVito Jr. as a new director on its Board, expanding the board from 12 to 13 members. DiVito, who brings extensive expertise in information technology, cybersecurity, and regulatory compliance, will serve on the Audit and Risk Committees. His appointment is expected to enhance the company’s governance and risk management capabilities, reflecting First Commonwealth’s commitment to navigating the complex financial and digital landscape.

First Commonwealth Reports Strong Q3 2025 Financial Results

On October 28, 2025, First Commonwealth Financial Corporation announced its financial results for the third quarter of 2025, reporting a GAAP net income of $41.3 million, which marks an increase from both the previous quarter and the same quarter in 2024. The company also declared a quarterly cash dividend of $0.135 per share, reflecting its strong financial performance and commitment to returning value to shareholders. This announcement underscores First Commonwealth’s solid financial positioning and its ability to generate consistent earnings growth, which is likely to positively impact its stakeholders and enhance its competitive stance in the financial services industry.