First Commonwealth Financial Corporation (NYSE:FCF), a regional bank with a market capitalization of $1.6 billion and a "Fair" financial health score according to InvestingPro, has announced it received all necessary regulatory approvals for its merger with CenterGroup Financial, Inc. (CGFI), a key step towards finalizing the transaction expected in the second quarter of 2025. The merger includes CenterBank’s integration into First Commonwealth Bank, which has already been approved by the Federal Deposit Insurance Corporation.

The Pennsylvania Department of Banking and Securities also approved the merger of CGFI into First Commonwealth, including the consolidation of subsidiary banks. Additionally, the Federal Reserve Bank of Cleveland granted a waiver for First Commonwealth’s merger application requirements. The deal’s closure now hinges on the approval of CGFI shareholders.

First Commonwealth Financial Corporation operates 125 community banking offices across various counties in Pennsylvania and Ohio, along with commercial lending and mortgage offices. The company offers a range of services including commercial and consumer banking, mortgage, equipment finance, wealth management, and insurance. Trading at a P/E ratio of 11.4x and offering a dividend yield of 3.3%, the bank has maintained dividend payments for 39 consecutive years, demonstrating strong financial stability. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.

CGFI’s subsidiary, CenterBank, focuses on community banking in the Greater Cincinnati market, offering deposit accounts, residential mortgages, and full-service banking to owner-managed businesses. CenterBank emphasizes personalized service and risk management while striving for growth within profitability and capital level constraints.

The merger aims to enhance the financial operations and market presence of First Commonwealth in the banking industry. However, the completion of the merger is subject to certain conditions, including CGFI shareholder approval. Investors and security holders are advised to read the proxy statement/prospectus and other relevant documents filed with the SEC for important information regarding the merger.

The companies have advised that forward-looking statements in their joint press release are subject to various risks and uncertainties, which could cause actual results to differ from expectations. These factors include meeting closing conditions, integration challenges, and changes in economic conditions, among others.

This news is based on a press release statement from First Commonwealth Financial Corporation.

In other recent news, First Commonwealth Financial Corporation reported its Q4 2024 earnings, showing a slight miss on earnings per share (EPS), which came in at $0.35 compared to the forecast of $0.36. However, the company exceeded revenue expectations, achieving $120.42 million against a forecast of $119.68 million. Despite the earnings miss, the company announced the acquisition of Center Bank, which is expected to enhance earnings in 2025. Analysts from firms such as Raymond James and RBC Capital Markets have noted the potential for improved financial performance following this acquisition. The company’s loan to deposit ratio improved to 92.5%, indicating strong financial health. First Commonwealth Financial also reported a net interest margin of 3.54%, reflecting effective interest rate management. Looking ahead, the company projects mid-single-digit loan growth for 2025 and anticipates the net interest margin to expand by 10-20 basis points. The acquisition of Center Bank is expected to contribute an additional $0.01 to EPS per quarter starting in Q3 2025.

First Commonwealth nears completion of CenterGroup merger

First Commonwealth Financial Corporation (NYSE: FCF), a regional bank with a market capitalization of $1.6 billion, announced it has received all necessary regulatory approvals for its merger with CenterGroup Financial, Inc. (CGFI). The merger includes CenterBank’s integration into First Commonwealth Bank, expected to be completed in the second quarter of 2025. The deal's closure now hinges on the approval of CGFI shareholders.