First Commonwealth (FCF) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 3.11%
• Average Volume (3M): 618.11K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.72
• Revenue Growth: 3.80%
• EPS Growth: -6.23%
• Country: US
• Employees: 1,538
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 103,765,980
• 10 Day Avg. Volume: 632,950
• 30 Day Avg. Volume: 618,105
• 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: 1.15
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: 11.80
• 1Y Price Target: $19.80
• Price Target Upside: 8.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $20.00 ▲(9.53% Upside)

FCF scores well on financial strength (low leverage, solid margins, steady cash generation) and a positive earnings-call outlook with disciplined expenses and continued capital returns, offset by near-term NIM pressure guidance and modest credit/asset-quality headwinds. Technicals and valuation are supportive but not extreme drivers.

Positive Factors

Strong balance sheet / very low leverage

Extremely low leverage and a high equity ratio give the bank durable financial flexibility. This capital strength supports lending through stress, funds strategic initiatives and buybacks, and reduces refinancing risk, underpinning long-term stability and investor confidence.

Stable cash generation and positive FCF growth

Consistent free cash flow growth and operating cash near earnings show the franchise converts earnings into cash reliably. That sustained cash generation supports dividends, repurchases and reinvestment, although FCF near net income signals limited excess flexibility.

Successful regional acquisition aiding expansion

An acquisition that retains customers and integrates well expands footprint and cross-sell opportunities. Durable regional scale gains can lift loan and deposit bases, diversify revenue, and lower per-unit costs if execution continues, strengthening competitive position over time.

Negative Factors

Fraud-related charge-offs and reserve build

Material fraud charge-offs expose underwriting and operational control gaps that can recur if not fully remediated. Higher provisions and oversight costs can persistently weigh on credit performance, elevate loss rates and reduce earnings predictability until controls are demonstrably strengthened.

Potential net interest margin pressure

NIM compression from lower rates or slower deposit repricing is a structural margin risk for regional banks. Sustained NIM pressure would constrain core earnings unless offset by higher fee income, cost cuts, or asset mix shifts, limiting medium-term profitability resilience.

Leadership transition / execution risk

Retirement of a senior integration and operations executive creates execution risk during a period of acquisitions and operational change. Hand-offs can slow initiatives, strain integration timelines and governance, and raise the chance of implementation mistakes that affect efficiency and growth.

First Commonwealth Business Overview & Revenue Model

Company Description

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. It also offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. As of December 31, 2021, the company operated 118 community banking offices in western and central Pennsylvania, as well as northeastern, central, and southwestern Ohio; corporate banking centers in Pittsburgh, Pennsylvania, as well as Columbus, Canton, and Cleveland, Ohio; and mortgage banking offices in Wexford, Pennsylvania, and Hudson, Westlake, as well as Lewis Center, Ohio. It also operates 136 automated teller machines. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.

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

Fundamentals are solid: strong profitability (TTM net margin 25.89%) and a very low debt-to-equity ratio (0.012) support balance-sheet strength. Cash generation is steady (operating cash flow to net income near 1 and FCF growth 7.11%), though slightly declining gross margin and limited FCF flexibility temper the score.

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: 18.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 18.26 is above the 20-day moving average (MA) of 18.14, above the 50-day MA of 17.47, and above the 200-day MA of 16.47, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 38.14 is Neutral, 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	78 Outperform	$2.03B	11.36	23.62%	0.27%	7.80%	19.38%
CHCO	77 Outperform	$1.82B	14.17	16.42%	2.65%	6.09%	11.49%
FCF	76 Outperform	$1.91B	12.49	9.71%	3.11%	3.80%	-6.23%
OFG	73 Outperform	$1.85B	9.21	14.82%	2.73%	3.98%	6.75%
NWBI	71 Outperform	$1.90B	14.16	7.22%	6.48%	15.86%	16.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Commonwealth Corporate Events

First Commonwealth announces leadership change and boosts capital returns

On January 27, 2026, First Commonwealth announced that Executive Vice President and Business Integration Group Manager Norman Montgomery plans to retire on May 1, 2026, marking an upcoming leadership transition in a key operational role. The company also reported improved fourth-quarter and full-year 2025 results, highlighted by higher net income, stronger returns on assets and equity, and expanding net interest margin, while the board declared a quarterly cash dividend of $0.135 per share and authorized an additional $25 million share repurchase program, underscoring management’s confidence in capital strength and its commitment to shareholder returns against a backdrop of moderate loan and deposit growth.

The most recent analyst rating on (FCF) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on First Commonwealth stock, see the FCF Stock Forecast page.

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.

The most recent analyst rating on (FCF) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on First Commonwealth stock, see the FCF Stock Forecast page.

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.

The most recent analyst rating on (FCF) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on First Commonwealth stock, see the FCF Stock Forecast page.