2026 Stock Repurchase Announcement
Pursuant to the Stock Repurchase Program approved by First Commonwealth Mortgage Trust (“Trust”) shareholders in 2017, the Trust Managers have approved for 2026 the Trust's repurchase of up to 5% of the outstanding shares of the Trust’s stock for a price of $5.38 per share, which is 90% of the Net Book Value of the shares of $6.15 as of December 31, 2025, less the recent 2026 dividend payment of $0.16 per share. If the shares tendered exceed 5% of the Trust’s outstanding shares, the purchase will be prorated amongst the participating shareholders, subject to certain exceptions described below.
In connection with the Stock Repurchase Program, the Trust is required to send notification of a Trust Manager approved repurchase offer to all of its shareholders, once approved by the Trust Managers. You will receive a notice similar to this each time a repurchase offer is approved by the Trust Managers. The Trust will offer to repurchase shares within a reasonable time period after the Trust’s December 31st audited financial statements have been completed by its auditors and accountants, if such periodic repurchases are approved by the Trust Managers.
If you are not interested in selling your shares to the Trust at this time, you do not have to do anything and can disregard this Notice of Voluntary Stock Repurchase Offer (the “Notice”).
All Repurchase Request Forms must be completed in proper form and received by Equiniti Trust Company, LLC by 4:00 p.m. Central Time on Tuesday, June 30, 2026 (the “Expiration Date”), to be effective. Please follow the instructions on the form and mail to the Equiniti Trust Company, LLC’s address as set forth on the Repurchase Request Form.
If you have any questions, please contact the Depositary Agent, Equiniti Trust Company, LLC, at 1-800-468-9716. We greatly appreciate your trust in us, and we thank you for investing in the Trust.
Robert W. Scharar
President
First Commonwealth Mortgage Trust (the "Trust") is a Texas real estate investment trust. It was originally organized as a Massachusetts business trust in 1984 and was reformed in Texas as a real estate investment trust in 2008. The Trust was formed for the purpose of originating and purchasing real estate loans, trust deeds, mortgages or real estate lien promissory notes associated with real properties ("Mortgage Loans") located in the continental United States.
The Trust's primary investment objective is to maximize cash distributions to its shareholders based on funds available for distribution, which includes funds provided from operations and, from time to time, gains realized on the sale of investments.
The Trust was organized and has qualified as a real estate investment trust ("REIT") in accordance with federal tax laws and regulations. So long as the Trust complies with such laws and regulations, with limited exceptions, the Trust will not be taxed under federal income tax laws on that portion of its taxable income that it distributes to its shareholders. The Trust intends to distribute substantially all of its real estate investment trust taxable income to its shareholders.