First Commonwealth (FCF) AI Stock Analysis

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First Commonwealth

(NYSE:FCF)

74Outperform

First Commonwealth Financial's stock is well-positioned with strong financial performance, highlighted by robust revenue growth and effective leverage management. The technical indicators suggest positive momentum, but caution is warranted due to potential overbought conditions. Valuation metrics are favorable, offering potential for both capital gains and income. The recent earnings call presented a balanced view, with positive loan growth offset by challenges in fee income and expenses, along with macroeconomic risks.

First Commonwealth (FCF) vs. S&P 500 (SPY)

Market Cap

$1.69B

Dividend Yield3.23%

Average Volume (3M)843.12K

Price to Earnings (P/E)11.9

Beta (1Y)0.90

Revenue Growth6.33%

EPS GrowthN/A

CountryUS

Employees1,538

SectorFinancial

Sector Strength87

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.32

Shares Outstanding104,939,030

10 Day Avg. Volume533,567

30 Day Avg. Volume843,119

Financial Highlights & Ratios

PEG Ratio-3.23

Price to Book (P/B)0.14

Price to Sales (P/S)0.00

P/FCF Ratio18.88

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$18.00

Price Target Upside11.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

First Commonwealth Business Overview & Revenue Model

Company DescriptionFirst 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 MoneyFirst Commonwealth Financial Corporation generates revenue primarily through interest income from its lending activities, including personal loans, mortgages, and commercial loans. Another significant revenue stream comes from non-interest income, which includes fees and service charges from its deposit accounts, investment advisory and wealth management services, as well as insurance commissions. The company also benefits from strategic partnerships and collaborations within the financial sector, which enhance its product offerings and market reach.

First Commonwealth Financial Statement Overview

Summary

First Commonwealth demonstrates solid financial health with strong profitability, effective balance sheet management, and robust cash flow generation. While the company exhibits strengths in revenue growth and leverage management, there is room for improvement in operational efficiency and return on equity.

Income Statement

Positive

First Commonwealth has demonstrated strong revenue growth and profitability. The TTM data shows a solid gross profit margin of 98.5% and a net profit margin of 31.3%. Revenue growth has been steady, indicating robust business operations. However, EBIT and EBITDA margins suggest room for improvement in operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a strong equity base with an equity ratio of 100%. The debt-to-equity ratio is low at 0.65, indicating prudent financial leverage management. However, the return on equity is moderate at 11.7%, suggesting room to improve shareholder returns.

Cash Flow

Positive

Operating cash flow remains healthy, with a strong operating cash flow to net income ratio. Free cash flow is positive, supporting potential reinvestment and debt servicing. However, fluctuations in investing and financing cash flows suggest potential volatility in cash management.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
439.95M	478.12M	467.27M	410.93M	385.30M	362.75M
	Gross Profit
433.36M	478.12M	626.39M	380.23M	358.63M	337.98M
	EBIT
90.85M	184.01M	261.23M	185.27M	172.82M	90.20M
	EBITDA
48.10M	0.00	215.74M	2.83M	2.32M	1.41M
	Net Income Common Stockholders
137.72M	142.57M	157.06M	128.18M	138.26M	73.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.31B	1.25B	146.99M	916.90M	1.45B	1.20B
	Total Assets
11.79B	11.58B	11.46B	9.81B	9.55B	9.07B
	Total Debt
77.52M	317.99M	749.76M	553.92M	320.58M	350.63M
	Net Debt
-41.28M	184.58M	602.76M	399.67M	-74.79M	-5.95M
	Total Liabilities
10.34B	10.18B	10.15B	8.75B	8.44B	8.00B
	Stockholders Equity
11.79B	1.41B	1.31B	1.05B	1.11B	1.07B
Cash Flow		Free Cash Flow
84.43M	113.92M	140.73M	140.21M	154.41M	98.08M
	Operating Cash Flow
83.16M	129.46M	162.76M	151.41M	165.05M	105.70M
	Investing Cash Flow
-32.98M	-121.72M	-586.28M	-588.79M	-565.30M	-483.14M
	Financing Cash Flow
-209.30M	-21.32M	416.26M	196.25M	439.05M	612.16M

First Commonwealth Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.08

Price Trends

50DMA

15.22

Positive

100DMA

15.76

Positive

200DMA

16.34

Negative

Market Momentum

MACD

0.30

Negative

RSI

62.23

Neutral

STOCH

68.47

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 16.08 is above the 20-day moving average (MA) of 15.56, above the 50-day MA of 15.22, and below the 200-day MA of 16.34, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 68.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCF.

First Commonwealth Risk Analysis

First Commonwealth disclosed 32 risk factors in its most recent earnings report. First Commonwealth reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

First Commonwealth Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWBI	76 Outperform	$1.62B	14.11	7.19%	6.33%	6.27%	-12.50%
CUBI	74 Outperform	$1.71B	13.57	8.14%	―	-5.61%	-44.11%
FCF	74 Outperform	$1.69B	11.94	9.91%	3.23%	6.33%	―
FBNC	69 Neutral	$1.75B	20.04	6.03%	2.08%	-2.00%	-23.84%
LKFN	68 Neutral	$1.57B	17.47	13.44%	3.20%	5.03%	-3.19%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%
CLBK	48 Neutral	$1.58B	97.23	-0.15%	―	4.29%	-109.93%

* Financial Sector Average

Performance Comparison

FCF

First Commonwealth

16.06

2.54

18.79%

FBNC

First Bancorp

42.46

10.75

33.90%

LKFN

Lakeland Financial

61.27

0.64

1.06%

NWBI

Northwest Bancshares

12.64

1.99

18.69%

CUBI

Customers Bancorp

53.80

6.41

13.53%

CLBK

Columbia Financial

15.03

-0.87

-5.47%

First Commonwealth Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 5.93%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted positive aspects such as loan and deposit growth, net interest margin expansion, and strategic acquisitions. However, these were offset by challenges like decreased return on assets, reduced fee income, and increased expenses. Additionally, external economic factors like tariffs and inflation present potential risks.

Q1-2025 Updates

Positive Updates

Loan Growth and Deposit Improvement

Loans grew at an annualized rate of 4.4%, with commercial loans accounting for 64% of the increase. Deposit costs fell to 1.99%, and deposits grew at an annualized rate of 7.7%.

Net Interest Margin Expansion

Net interest margin increased by 8 basis points to 3.62%, with expectations of further expansion due to macro swaps expiring.

Dividend Increase

The Board approved a dividend increase, bringing the dividend yield to approximately 3.5% and the payout ratio to 40%.

Successful CenterBank Acquisition

The acquisition of CenterBank was completed, which is expected to boost efficiency, margin, and talent pool.

Negative Updates

Decrease in Return on Assets

Return on assets decreased from 1.23% in the previous quarter to 1.14% due to rising expenses and falling fee income.

Fee Income Decline

Fee income dropped by $1.5 million in the first quarter, with specific challenges in SBA gain on sale income, which was down by about $1 million.

Increased Expenses

Expenses rose by $2.1 million to $71.1 million, driven by higher salaries, wages, and snow removal costs.

Tariff and Inflation Concerns

Uncertainty around tariffs and inflation could pose risks to consumer and business financial health, potentially impacting future growth.

Company Guidance

During the First Commonwealth Financial Corporation's first-quarter 2025 earnings release call, the company reported core earnings per share of $0.32, aligning with consensus estimates. They experienced a decline in return on assets to 1.14% from 1.23% in the previous quarter due to increased expenses and decreased fee income. Loans grew at an annualized rate of 4.4%, with commercial loans contributing $63 million, or 64% of the quarterly increase. The net interest margin rose by 8 basis points to 3.62%, as deposit costs fell to 1.99%. The company also noted a decrease in the loan-to-deposit ratio to 92% over the past two years, indicating improved liquidity. Fee income dropped by $1.5 million, while expenses increased by $2.1 million, leading to an efficiency ratio rise to 59.08%. The board approved a $0.01 increase in dividends, maintaining a payout ratio of approximately 40%. The company expects continued improvement in credit conditions and anticipates further expansion of the net interest margin, particularly as macro swaps expire throughout the year.

First Commonwealth Corporate Events

DividendsFinancial Disclosures

First Commonwealth Reports Q1 2025 Earnings and Dividend

Neutral

Apr 29, 2025

On April 29, 2025, First Commonwealth Financial Corporation announced its first quarter 2025 earnings, reporting a net income of $32.7 million, which marks a decrease from the previous quarter and the same quarter in 2024. The company also declared an increased quarterly cash dividend of $0.135 per share. Despite the decrease in net income, the company saw growth in commercial loans and deposits, with a notable increase in savings deposits. However, noninterest income decreased due to lower gains on the sale of Small Business Administration loans, and noninterest expenses rose from the previous quarter.

Spark’s Take on FCF Stock

According to Spark, TipRanks’ AI Analyst, FCF is a Neutral.

First Commonwealth Financial Corporation exhibits strong financial fundamentals with consistent revenue growth and effective debt management. Despite some challenges in profitability and loan growth, the positive outlook from the recent earnings call and strategic acquisitions provide a strong foundation for future growth. The stock’s technical indicators suggest caution, but the valuation and dividend yield present attractive opportunities for investors.

To see Spark’s full report on FCF stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.