First Commonwealth Financial Corporation (NYSE: FCF) has authorized a new $25 million share repurchase program, following the completion of a prior $25 million program in the fourth quarter of 2025. The new program allows the company to repurchase shares through Rule 10b5‑1 plans, open‑market purchases, or private transactions, and it can be suspended or discontinued at any time.
The prior program was completed on December 1 2025, when FCF bought back 1,560,477 shares at a weighted average price of $16.02 per share. The new authorization gives FCF flexibility to return capital to shareholders while maintaining compliance with federal securities laws, and it signals management’s confidence in the company’s financial position and future cash‑flow generation.
First Commonwealth operates 127 community‑banking offices across 30 counties in western and central Pennsylvania and throughout Ohio, offering commercial and consumer banking, mortgage, equipment finance, wealth management, and insurance services. The company has paid dividends for 39 consecutive years and increased its dividend for nine straight years, underscoring its commitment to returning value to shareholders.
The share‑repurchase program is a modest but meaningful commitment that can support the company’s dividend policy and overall capital‑allocation strategy. By reducing the number of outstanding shares, the program can lift earnings per share and signal that the stock is undervalued, which may enhance shareholder value.
In the third quarter of 2025, First Commonwealth reported earnings of $0.39 per share, slightly below the consensus estimate of $0.41, while revenue of $111.12 million matched expectations. The earnings miss was driven by modest margin compression as the company faced higher operating costs and a slight decline in net interest margin. Management highlighted that it is focusing on stabilizing margins, growing deposits, and managing expenses, while the CFO expressed optimism about net interest margin expansion in 2025.
The new share‑repurchase authorization comes at a time when the company is maintaining a strong dividend history and pursuing a disciplined capital‑allocation approach. By authorizing additional buybacks, First Commonwealth signals that it believes its shares are undervalued and that it has sufficient cash flow to support both dividends and share repurchases, reinforcing confidence in its long‑term financial strategy.
The program’s flexibility—allowing Rule 10b5‑1 plans, open‑market purchases, or private transactions—provides management with the ability to execute buybacks efficiently in response to market conditions, while the option to suspend or discontinue the program ensures that capital can be redirected if the company’s financial outlook changes.
Overall, the new $25 million share‑repurchase program reflects First Commonwealth’s confidence in its financial health, its commitment to returning capital to shareholders, and its disciplined approach to capital allocation in a competitive banking environment.
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