First Commonwealth Financial Corporation reported a mixed performance for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. Total assets increased to $11.98 billion from $11.46 billion at the end of 2023, driven by a rise in total deposits, which grew to $9.75 billion from $9.19 billion. The company’s retained earnings also saw an increase, reaching $948.5 million, up from $881.1 million.

For the three months ended September 30, 2024, net income was $32.1 million, a decline from $39.2 million in the same quarter of 2023. This decrease was attributed to a $1.2 million drop in net interest income, which fell to $96.9 million, and a significant increase in the provision for credit losses, which rose to $11.2 million from $4.8 million in the prior year. The net interest margin also decreased to 3.56% from 3.76%.

In terms of revenue, total interest income for the nine months ended September 30, 2024, increased to $450.5 million, up from $385.7 million in 2023. However, total interest expense also rose sharply to $166.7 million from $95.8 million, leading to a net interest income of $284.8 million, down from $290.9 million. The provision for credit losses for the nine months was $25.9 million, significantly higher than $7.4 million in the previous year.

Noninterest income showed slight growth, totaling $73.9 million for the nine months, compared to $72.3 million in 2023. Trust income and gains from the sale of loans contributed positively, while card-related interchange income declined due to regulatory impacts.

The company’s strategic developments included the acquisition of Centric in January 2023, which added $979.5 million in loans, although the revenue from this acquisition could not be separately identified due to full integration. The company also repurchased 169,811 shares during the nine months at an average price of $16.24 per share, as part of its ongoing share repurchase program.

As of September 30, 2024, the allowance for credit losses stood at $126.1 million, or 1.41% of total loans, reflecting an increase in nonperforming loans to $74.7 million from $39.5 million at the end of 2023. The company maintained a strong capital position, meeting all capital adequacy requirements and reporting total shareholders’ equity of $1.41 billion, up from $1.31 billion at the end of 2023.