First Commonwealth is a regional bank that gets noticed far beyond its Pennsylvania base. In 2023 it was recognized for the fifth consecutive year as one of Forbes World’s Best Banks.
The recent acquisition of Centric extended First Commonwealth’s reach. It is now a $11.5bn operation with 126 community banking offices in 30 counties, reporting record net income in Q4 2023.
Harnessing the democracy of tech drives competition
The human touch is critical for any community bank, but First Commonwealth combines this with the most advanced digital services.
According to President and CEO, Mike Price, the bank works directly with some 35 fintechs, including the Blend platform for mortgages, Nintex for robotic process automation, Ignite for product cross-selling, and FINBOA for customer disputes.
“We live in a world where the technology is very democratic, and a bank of our size can plug in and really take advantage of it. So we can compete with banks much larger than ours – and that’s fun,” Price says.
These platforms work alongside the branches and call center offering, as well as SMS. “Customers can text us – and they do in droves, when they have challenges,” Price adds. “That gets back to digital relevance and meeting the customer where they are at.”
“Technology is very democratic, and a bank of our size can really take advantage of it.”
Mike Price, President and CEO, First Commonwealth
Patience and prudence are key to successful M&A
Price foresees rapid industry consolidation down the line. First Commonwealth’s own acquisition strategy is a careful one, however.
Before joining the bank, Price was involved with over a dozen acquisitions at a larger company. At First Commonwealth, his team has considered 60 deals, but moved ahead on only six.
“The key is patience and discipline,” he explains. “For me, it’s not just in the deal math. For a deal to really work, there has to be a low risk path to execution.”
“For a deal to really work, there has to be a low risk path to execution.”
Mike Price, President and CEO, First Commonwealth
Mission-driven service and constant improvement deliver success
Over the past decade, First Commonwealth has adopted new businesses alongside its commercial and consumer capabilities – breaking into the mortgage, equipment, finance, credit card, indirect auto and small business administration spaces.
The bank’s simple mission is to improve the financial lives of its neighbors and their businesses. In tandem, it is focused on growing profits every year, while getting better, as Price puts it, “in every line of business, every geography and every support unit.” To that end, the company has 30 separate operating plans which are all reviewed at the executive level regularly, with accountability for delivery.
Price believes this mission-driven approach will secure the future of First Commonwealth. “We care a lot about the client and not just the outcome, but the path to the outcome. I think we’re very good at linking the mission of the bank with growing the company,” he says.
A strong and well-informed management team, a lack of internal silos, and good internal partners working together are key. “We also need to follow the banks that have the best ideas,” Price says.
“Lastly, I think each of us needs to be coachable. You have to be humble enough to change and have people around that tell you when the emperor has no clothes on.”
“I think we’re very good at linking the mission of the bank with growing the company.”
Mike Price, President and CEO, First Commonwealth
Featured Guest:
Mike Price
President and CEO, First Commonwealth