First Commonwealth Financial Reports $142.6 Million Net Income for Fiscal Year 2024

First Commonwealth Financial Corporation reported a net income of $142.6 million for the fiscal year ending December 31, 2024, translating to $1.39 per diluted share. This represents a decrease from the previous year's net income of $157.1 million, or $1.54 per diluted share. The decline in profitability was attributed to a $6.8 million drop in net interest income and a $14.4 million increase in the provision for credit losses, which included a significant adjustment related to the acquisition of Centric Financial Corporation in January 2023. The company's return on average equity was 10.4%, down from 12.8% in 2023, while the return on average assets decreased to 1.22% from 1.42%.

Total assets for First Commonwealth increased to $11.6 billion, up from $11.5 billion in 2023, with total loans and leases reaching $9.0 billion. The loan portfolio saw a modest growth of $15 million compared to the previous year, driven primarily by an increase in commercial loans, particularly in the equipment finance sector. The company also reported a total deposit increase of $485.7 million, reflecting a shift in customer preferences towards higher-yielding deposit products as interest rates rose.

Strategically, First Commonwealth has been active in expanding its footprint through acquisitions. In January 2023, it completed the acquisition of Centric Financial Corporation, which added seven full-service banking offices and one loan production office in Pennsylvania. Additionally, in December 2024, the company announced an agreement to acquire CenterGroup Financial Inc., which will enhance its presence in the Cincinnati market. This acquisition is expected to close in the first half of 2025 and will add approximately $348.4 million in total assets.

Operationally, First Commonwealth employed 1,485 full-time and 60 part-time employees as of December 31, 2024, with a focus on enhancing employee engagement and retention. The company reported a turnover rate of 23.4%, a reduction from the previous year, indicating improved employee satisfaction. The bank operates 124 community banking offices across Pennsylvania and Ohio, with a network of 132 ATMs, and has been investing in digital banking solutions to enhance customer experience.

Looking ahead, First Commonwealth anticipates continued growth through both organic means and strategic acquisitions. The company aims to enhance its market share while managing risks associated with credit quality and interest rate fluctuations. The management remains optimistic about the potential for increased profitability as it integrates recent acquisitions and adapts to changing market conditions.