Regional banking company First Commonwealth Financial (NYSE: FCF) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 14.3% year on year to $137.9 million. Its non-GAAP profit of $0.43 per share was 3.2% above analysts’ consensus estimates.
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First Commonwealth Financial (FCF) Q4 CY2025 Highlights:
- Net Interest Income: $113.2 million vs analyst estimates of $111.8 million (19.1% year-on-year growth, 1.3% beat)
- Net Interest Margin: 4% vs analyst estimates of 3.9% (11.2 basis point beat)
- Revenue: $137.9 million vs analyst estimates of $135.7 million (14.3% year-on-year growth, 1.6% beat)
- Efficiency Ratio: 52.8% vs analyst estimates of 53.4% (60.2 basis point beat)
- Adjusted EPS: $0.43 vs analyst estimates of $0.42 (3.2% beat)
- Tangible Book Value per Share: $11.22 vs analyst estimates of $11.19 (10.8% year-on-year growth, in line)
- Market Capitalization: $1.81 billion
“Our fourth quarter results capped off a strong year for First Commonwealth, highlighted by solid loan and deposit growth, continued expansion of our net interest margin, and stable capital levels,” said T. Michael Price, President and Chief Executive Officer.
Company Overview
Tracing its roots back to the Great Depression era of 1934, First Commonwealth Financial (NYSE: FCF) is a financial holding company that provides consumer and commercial banking, wealth management, and insurance services across Pennsylvania and Ohio.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Unfortunately, First Commonwealth Financial’s 7.4% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the banking sector and is a tough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First Commonwealth Financial’s recent performance shows its demand has slowed as its annualized revenue growth of 4.1% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First Commonwealth Financial reported year-on-year revenue growth of 14.3%, and its $137.9 million of revenue exceeded Wall Street’s estimates by 1.6%.
Net interest income made up 77.7% of the company’s total revenue during the last five years, meaning lending operations are First Commonwealth Financial’s largest source of revenue.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
First Commonwealth Financial’s TBVPS grew at an impressive 7.4% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 10.7% annually over the last two years from $9.15 to $11.22 per share.
Over the next 12 months, Consensus estimates call for First Commonwealth Financial’s TBVPS to grow by 11.1% to $12.47, mediocre growth rate.
Key Takeaways from First Commonwealth Financial’s Q4 Results
It was encouraging to see First Commonwealth Financial beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its EPS slightly beat. Zooming out, we think this was a mixed quarter. The stock remained flat at $17.72 immediately after reporting.
Big picture, is First Commonwealth Financial a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
