First Commonwealth’s Q1 Net Income Slides to $37.5M; Dividend Raised 3.7%
First Commonwealth Financial reported Q1 2026 net income of $37.5 million and diluted EPS of $0.37, down from $44.9 million and $0.43 in Q4. End-of-period loans fell 3.2% annualized as deposits rose 6.3%, cutting the loan-to-deposit ratio to 90.9%, and the board increased the dividend by 3.7%.
1. Q1 Financial Results
First Commonwealth generated GAAP net income of $37.5 million and diluted EPS of $0.37 in Q1 2026, down from $44.9 million and $0.43 in Q4 2025. Net interest income (FTE) totaled $109.3 million, a $4.2 million decrease sequentially and a $13.5 million increase year-over-year.
2. Loan and Deposit Trends
End-of-period loans, excluding held-for-sale, decreased by $74.2 million (3.2% annualized) as a $225.4 million commercial portfolio sale closed. Deposits grew by $158.9 million (6.3% annualized), bringing the loan-to-deposit ratio down 447 basis points to 90.9%.
3. Capital Actions and Shareholder Returns
The board approved a 3.7% quarterly dividend increase and repurchased 1.28 million shares at an average price of $17.67, leaving $18.4 million in buyback capacity. The bank-level total capital ratio stood at 13.8%, providing $376.3 million above the 10.0% well-capitalized threshold.
4. Asset Quality and Reserves
Provision expense rose to $10.7 million, primarily for commercial credit reserves, while net charge-offs declined to $8.2 million. Reserves to total loans held at 1.37% and nonperforming loans were $92.3 million, with two $5.6 million credits subsequently resolved.