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.

The FDIC has decided to rescind its 2024 merger policy statement, which had added uncertainty to the bank merger application process. The regulator plans to revert to the previous policy as an interim measure while conducting a broader re-evaluation of its bank merger review process. The American Bankers Association supports this move, welcoming the decision to remove uncertainty for banks looking to make strategic decisions. The volume of bank mergers has fluctuated between 49 and 152 annually from 2004 to 2023, with the highest point in 2012. Recent mergers include WesBanco's acquisition of Premier Financial and First Commonwealth Financial's purchase of CenterGroup Financial. Robert Wagner, principal of Three Rivers Fund Advisors, emphasizes the challenges faced by small banks, suggesting consolidation is necessary for profitability.