First Commonwealth Financial PA | 8-K: FY2026 Q2 Revenue: USD 139.44 M

Revenue: As of FY2026 Q2, the actual value is USD 139.44 M.

EPS: As of FY2026 Q2, the actual value is USD 0.44, beating the estimate of USD 0.4233.

EBIT: As of FY2026 Q2, the actual value is USD 56.27 M.

Corporate Actions

First Commonwealth Financial Corporation announced a cash dividend of $0.14 per share of common stock for the periods ended June 30, 2026. The company’s Board of Directors authorized an additional $75.0 million share repurchase program for its common stock.

Net Income

Net income for the second quarter of 2026 was $44,589 thousand, an increase from $37,548 thousand in the prior quarter and $33,402 thousand in the second quarter of 2025. For the six months ended June 30, 2026, net income was $82,137 thousand, compared to $66,098 thousand for the same period in 2025.Core net income was $44,427 thousand for the second quarter of 2026, up from $37,459 thousand in the previous quarter and $39,496 thousand in the second quarter of 2025. The core net income for the six months ended June 30, 2026, was $81,886 thousand, compared to $72,276 thousand for the six months ended June 30, 2025.

Net Interest Income and Margin

Net interest income (FTE) was $112,827 thousand in the second quarter of 2026, an increase of $3,492 thousand from the previous quarter ($109,335 thousand) and $6,245 thousand from the second quarter of 2025 ($106,582 thousand). For the six months ended June 30, 2026, net interest income (FTE) totaled $222,162 thousand, up from $202,439 thousand in the same period of 2025.The net interest margin (FTE) was 4.01% in the second quarter of 2026, an increase of nine basis points from the prior quarter (3.92%) and 18 basis points from the second quarter of 2025 (3.83%). The total cost of funds decreased by seven basis points to 1.79% in the second quarter of 2026 compared to the previous quarter.

Noninterest Income and Expense

Noninterest income (excluding securities gains) was $26,700 thousand for the second quarter of 2026, an increase of $2,300 thousand from the first quarter of 2026 ($24,400 thousand, excluding securities gains) and $1,900 thousand from the second quarter of 2025 ($24,800 thousand, excluding securities gains). Total noninterest income was $26,997 thousand for the second quarter of 2026, $24,587 thousand for the first quarter of 2026, and $24,749 thousand for the second quarter of 2025. For the six months ended June 30, 2026, total noninterest income was $51,584 thousand, compared to $47,251 thousand for the same period in 2025.Noninterest expense (excluding merger-related expense) was $74,100 thousand in the second quarter of 2026, a decrease of $1,300 thousand from the first quarter of 2026 ($75,400 thousand, excluding merger-related expense) and an increase of $1,800 thousand from the second quarter of 2025 ($72,300 thousand, excluding merger-related expense). Total noninterest expense was $74,235 thousand for the second quarter of 2026, $75,595 thousand for the first quarter of 2026, and $76,268 thousand for the second quarter of 2025. For the six months ended June 30, 2026, total noninterest expense was $149,830 thousand, compared to $147,518 thousand for the same period in 2025.

Operating Profitability Ratios

Core pre-tax pre-provision net revenue (PPNR) totaled $64,999 thousand, an increase of $7,145 thousand from the previous quarter ($57,854 thousand) and $6,322 thousand from the second quarter of 2025 ($58,677 thousand). The core efficiency ratio decreased 320 basis points to 52.24% compared to the prior quarter (55.43%) and decreased 183 basis points from the second quarter of 2025 (54.06%). Core Return on Average Assets (ROAA) increased 22 basis points to 1.46% compared to the prior quarter (1.24%) and 15 basis points from the second quarter of 2025 (1.31%). Core pre-tax pre-provision ROAA increased 22 basis points to 2.14% compared to the prior quarter (1.92%) and 19 basis points from the second quarter of 2025 (1.95%). Core return on average tangible common equity (ROATCE) increased 221 basis points to 15.66% compared to the prior quarter (13.44%) and 84 basis points from the second quarter of 2025 (14.82%).

Asset Quality

The provision for credit losses was $8,931 thousand in the second quarter of 2026, a decrease of $1,802 thousand compared to the previous quarter ($10,733 thousand). The allowance for credit losses as a percentage of period-end loans was 1.35%, a decrease of two basis points from the previous quarter (1.37%). Total nonperforming loans were $81,640 thousand, a decrease of $10,673 thousand from the previous quarter ($92,313 thousand). Net charge-offs totaled $11,441 thousand, an increase of $3,280 thousand from the previous quarter ($8,161 thousand) and $8,683 thousand from the second quarter of 2025 ($2,758 thousand). Net charge-offs as a percentage of average loans (annualized) was 0.49% in the second quarter of 2026, compared to 0.35% in the previous quarter and 0.12% in the second quarter of 2025.

Balance Sheet and Capital Position

Average deposits increased by $52,300 thousand, or 2.0% annualized, compared to the prior quarter. Total loans increased by $46,500 thousand, or 2.0% annualized, from the previous quarter. The loan-to-deposit ratio increased to 92.7% at the end of the second quarter of 2026 from 90.9% at the end of the previous quarter.Tangible book value per share increased by $0.24, or 8.5% annualized, from the previous quarter to $11.58. AOCI as a percentage of tangible common equity increased 14 basis points to 6.04% in the second quarter of 2026. The Bank-level Total Capital Ratio was 14.0% at June 30, 2026, exceeding the regulatory “well capitalized” requirement by $393,800 thousand.

Share Repurchase and Dividends

First Commonwealth Financial Corporation repurchased 645,695 shares at a weighted average price of $18.66 during the second quarter of 2026. The remaining repurchase capacity under the current program was $13,000 thousand as of June 30, 2026. On July 28, 2026, the Board of Directors authorized an additional $75,000 thousand share repurchase program.A common stock quarterly dividend of $0.14 per share was declared, representing a 3.7% increase from the second quarter of 2025. This dividend is payable on August 21, 2026, to shareholders of record as of August 7, 2026, and represents a 2.7% projected annual yield based on the July 27, 2026, closing market price of $20.87.

Outlook

First Commonwealth Financial Corporation expresses confidence in its long-term outlook, citing momentum from the second quarter, which includes profitable loan growth and disciplined funding costs. The company anticipates continued margin expansion and meaningful earnings growth due to these factors. Management believes the strong capital position, diversified revenue streams, focus on operating leverage, and regionally led business model will create stakeholder value despite the dynamic economic environment.