• First Commonwealth Announces Fourth Quarter and Full Year 2024 Earnings; Declares Quarterly Dividend

    Source: Nasdaq GlobeNewswire / 28 Jan 2025 16:00:01   America/Chicago

    INDIANA, Pa., Jan. 28, 2025 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the fourth quarter and full year of 2024.

    Financial Summary

    (dollars in thousands,For the Three Months Ended For the Year Ended
    except per share data)December 31, September 30, December 31, December 31, December 31,
     2024 2024 2023 2024 2023
    Reported Results         
    Net income$35,849  $32,086  $44,827  $142,572  $157,063 
    Diluted earnings per share$0.35  $0.31  $0.44  $1.39  $1.54 
    Return on average assets 1.23%  1.08%  1.56%  1.22%  1.42%
    Return on average equity 10.16%  9.19%  14.11%  10.44%  12.80%
              
    Operating Results (non-GAAP)(1)         
    Core net income$36,067  $31,933  $44,964  $142,709  $172,697 
    Core diluted earnings per share$0.35  $0.31  $0.44  $1.40  $1.70 
    Core pre-tax pre-provision net revenue$51,388  $50,949  $55,028  $207,551  $221,505 
    Provision expense$6,490  $10,615  $(1,865) $29,170  $14,813 
    Net charge-offs$13,691  $8,785  $16,338  $31,180  $30,152 
    Reserve build/(release)(2)$(7,206) $2,458  $(16,619) $1,188  $14,812 
    Core return on average assets (ROAA) 1.23%  1.08%  1.56%  1.22%  1.56%
    Core pre-tax pre-provision ROAA 1.76%  1.72%  1.91%  1.78%  2.00%
    Return on average tangible common equity 14.40%  13.09%  20.78%  14.94%  19.01%
    Core return on average tangible common equity 14.48%  13.02%  20.85%  14.95%  20.86%
    Core efficiency ratio 56.07%  56.66%  53.00%  55.36%  52.91%
    Net interest margin (FTE) 3.54%  3.56%  3.65%  3.55%  3.81%


    (1)Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures may be found at the end of the financial statements which accompany this release.
    (2)Reserve build/(release) represents the net change in the Company's allowance for credit losses (ACL) from the prior period.

           

    Fourth Quarter 2024 Highlights

    • Net income of $35.8 million and diluted earnings per share of $0.35 represent an increase of $3.8 million, or $0.04 per share from the previous quarter and a decrease of $9.0 million, or $0.09 per share from the fourth quarter of 2023
    • Core pre-tax pre-provision net revenue (PPNR)(1) totaled $51.4 million, an increase of $0.4 million from the previous quarter and a decrease of $3.6 million from the fourth quarter of 2023
    • Average deposits increased $207.1 million, or 8.7% annualized, compared to the prior quarter
    • Total loans increased $23.5 million, or 1.0% annualized, from the previous quarter, driven by growth in the Equipment Finance and Commercial Real Estate portfolios
    • Net interest income (FTE) of $95.4 million decreased $1.4 million from the previous quarter and decreased $0.6 million from the fourth quarter of 2023
    • Noninterest income (excluding a $0.2 million gain on investment securities in 3Q 2024) of $25.3 million decreased $0.8 million from the previous quarter
    • Noninterest expense (excluding $0.3 million of merger-related expenses in 4Q 2024) of $69.0 million decreased $1.0 million from the previous quarter
    • Total shareholders’ equity decreased $4.5 million from the previous quarter due to a $19.4 million increase in unrealized losses in accumulated other comprehensive income (AOCI) from the previous quarter and share repurchases totaling $7.9 million

    Profitability

    • Core return on average assets (ROAA) was 1.23% as compared to 1.08% in the previous quarter and 1.56% in the fourth quarter of 2023
    • Core pre-tax pre-provision ROAA(1) for the quarter ended December 31, 2024 was 1.76% as compared to 1.72% in the prior quarter and 1.91% in the fourth quarter of 2023
    • The net interest margin of 3.54% decreased two basis points from the prior quarter and decreased 11 basis points from the fourth quarter of 2023
    • The core efficiency ratio(1) of 56.1% improved 59 basis points from the previous quarter

    Strong capital position

    • Bank-level Total Regulatory Capital ratio of 13.6%, which represents $333.0 million in excess capital above the regulatory “well capitalized” requirement of 10.0%
    • A total of 476,979 shares at a weighted average price of $16.60 were repurchased during the fourth quarter of 2024 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was $6.7 million as of December 31, 2024

    Asset quality

    • The provision for credit losses was $6.5 million, a decrease of $4.1 million compared to the previous quarter
    • The allowance for credit losses as a percentage of end-of-period loans was 1.32%, as compared to 1.41% in the previous quarter
    • Total nonperforming loans decreased $13.3 million from the previous quarter
    • Net charge-offs on loans totaled $13.7 million, an increase of $4.9 million from the previous quarter
      • Approximately $8.0 million of the quarterly net charge-offs were loans specifically reserved for in previous quarters
      • Net charge-offs (annualized) as a percentage of average loans outstanding was 0.61% in the fourth quarter of 2024 as compared to 0.39% in the previous quarter

    Subsequent to Fourth Quarter 2024

    • The company sold its remaining Visa-B shares in January 2025, resulting in a gain of approximately $5.1 million that will be recognized in the first quarter of 2025. The proceeds from the sale offset commensurate losses the company incurred as the result of the sale of securities with a book value of $53.7 million carrying a yield of 2.6%, followed by the purchase of securities with a yield of approximately 5.4%

    Full Year 2024 Highlights

    Earnings

    • Net income of $142.6 million and diluted earnings per share of $1.39
      • Core net income(1) was $142.7 million, or $1.40 diluted earnings per share, compared to $172.7 million, or $1.70 diluted earnings per share in the prior year
    • Core pre-tax pre-provision income(1) of $207.6 million decreased $14.0 million from the prior year

    Profitability

    • The return on average assets (ROAA) for the year ended December 31, 2024 was 1.22% as compared to 1.42% in the prior year
    • Core pre-tax pre-provision ROAA(1) for the year ended December 31, 2024 was 1.78% as compared to 2.00% in the prior year
    • The core efficiency ratio(1) increased 244 basis points to 55.36% compared to the prior year

    Franchise Growth

    • Average deposits grew $451.1 million, or 5.0% compared to the prior year
      • End of period deposits grew $485.7 million, or 5.3% compared to the prior year
    • Total loans grew $37.2 million, or 0.4% compared to the prior year
    • The loan-to-deposit ratio was 93.4% for the year ended December 31, 2024 as compared to 97.9% in the prior year

    “Despite deposit pricing pressure challenges, higher credit costs, and six months of lost interchange revenue from the Durbin amendment, we ended 2024 with a robust pre-tax pre-provision ROA of 1.76% and an efficiency ratio of 56.07%, demonstrating the strength of our organization,” stated T. Michael Price, President and Chief Executive Officer. “With historic highs in customer satisfaction and net promoter scores, we’re not just growing profitably but also building deeper trust and stronger connections with our customers.” Price continued, “Last year laid the foundation for sustainable growth, and as we move into 2025, our focus on mid-single-digit loan growth, core deposit acquisition, and operational efficiency will propel us forward.”

    Earnings

    Net income for the fourth quarter of 2024 was $35.8 million, or $0.35 per share, compared to $32.1 million, or $0.31 per share in the third quarter of 2024 and $44.8 million, or $0.44 per share for the fourth quarter of 2023.

    Net income for the year ended December 31, 2024 was $142.6 million, or $1.39 per share, compared to $157.1 million, or $1.54 per share for the same period in 2023.

    Net Interest Income and Net Interest Margin

    Net interest income (FTE) of $95.4 million decreased $1.4 million from the previous quarter and decreased $0.6 million from the prior year quarter. The decrease from the previous quarter was primarily due to a two basis point decrease in the net interest margin and a $219.5 million decrease in lower-yielding interest bearing bank deposits.

    The net interest margin for the fourth quarter of 2024 was 3.54%, a decrease of two basis points from the previous quarter and a decrease of 11 basis points from the fourth quarter of 2023. The total cost of funds decreased nine basis points due to a $442.9 million decrease in higher-cost short-term borrowings, partially offset by a $115.7 million increase in long-term borrowings and a 12 basis point decrease in the yield on loans. The total cost of deposits decreased one basis point to 2.07% as compared to the previous quarter.

    Total average deposits increased $207.1 million, or 8.7% annualized in the fourth quarter of 2024 as compared to the previous quarter primarily due to a large commercial customer deposit received at the end of the previous quarter. Total end-of-period deposits decreased $67.5 million, or 2.7% annualized, from the previous quarter primarily due to seasonal withdrawals of public fund deposits.

    Asset Quality

    Provision for credit losses totaled $6.5 million in the fourth quarter of 2024 as compared to $10.6 million in the previous quarter. The decrease in provision expense during the quarter was primarily driven by higher specific reserves in the previous quarter and improved quantitative factors and loan mix.

    Nonperforming loans totaled $61.5 million, a decrease of $13.3 million from the previous quarter and an increase of $22.0 million from the fourth quarter of 2023. Nonperforming loans represented 0.68% of total loans as compared to 0.83% and 0.44% for the periods ended September 30, 2024 and December 31, 2023, respectively.

    At December 31, 2024, criticized loans totaled $224.2 million, a decrease of $17.8 million from the previous quarter.

    During the fourth quarter of 2024, net charge-offs were $13.7 million as compared to net charge-offs of $8.8 million in the previous quarter and $16.3 million in the fourth quarter of 2023. The increase from the prior quarter was primarily driven by the charge-off of three commercial credits totaling $8.0 million, for which $7.0 million in specific reserves had been previously provided.

    Net charge-offs (annualized) as a percentage of average loans were 0.61%, 0.39% and 0.72% for the periods ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    Noninterest Income and Noninterest Expense

    Noninterest income (excluding $0.2 million gain on investment securities in 3Q 2024) totaled $25.3 million for the fourth quarter of 2024, as compared to $24.5 million for the third quarter of 2024 and $24.3 million for the fourth quarter of 2023. The $0.8 million increase from the previous quarter was primarily due to a $0.7 million increase in swap fee income, a $0.5 million increase in gain on sale of Mortgage loans and a $0.5 million gain on a limited partnership included in other revenue, partially offset by a $0.9 million decrease income from bank owned life insurance (BOLI).

    For the year ended December 31, 2024, noninterest income (excluding $0.2 million gain sale of investment securities in 2024 and $0.1 million loss on sale of investment securities in 2023) totaled $99.0 million, an increase of $2.3 million from the prior year. The increase from the prior year was primarily due to a $1.8 million increase in gain on sale of Mortgage loans, a $1.5 million increase gain on sale of SBA loans, a $1.5 million increase in BOLI income, a $1.3 million increase in Trust income and a $1.1 million increase in service charges, offsetting a $6.8 million decrease in card-related interchange income due to the Bank being subject to six months of the Durbin amendment.

    Noninterest expense (excluding $0.3 million and $0.2 million of merger related expenses in 4Q 2024 and 4Q 2023, respectively) totaled $69.0 million for the fourth quarter of 2024, as compared to $70.1 million for the third quarter of 2024 and $65.0 million for the fourth quarter of 2023. The $1.0 million decrease from the previous quarter was primarily the result of a $1.3 million decrease in operational losses and a $0.6 million decrease in salaries and benefits, partially offset by a $0.8 million increase in accrued Pennsylvania shares tax obligations.

    The core efficiency ratio was 56.07% during the fourth quarter of 2024 as compared to 56.66% in the previous quarter and 53.00% in the fourth quarter of 2023.

    For the year ended December 31, 2024, noninterest expense (excluding $0.4 million of merger related expenses and $0.4 million loss on the early redemption of subordinated debt in 2024 and $9.0 million of merger related expenses in 2023) totaled $270.0 million, as compared to $260.9 million in the prior year. The $9.1 million increase from the prior year was primarily driven by a $6.4 million increase in salaries and benefits, a $1.1 million increase in Pennsylvania shares tax obligations and a $0.6 million increase in occupancy costs, partially offset by a $0.4 million decrease in other professional fees and a $0.3 million decrease in FDIC insurance.

    The core efficiency ratio was 55.36% for the year ended December 31, 2024 as compared to 52.91% in the previous year.

    Full time equivalent staff was 1,512 at December 31, 2024, 1,500 at September 30, 2024, and 1,475 at December 31, 2023.

    Dividends and Capital

    First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.13 per share, which represents a 4.0% increase from the fourth quarter of 2023. The cash dividend is payable on February 21, 2025 to shareholders of record as of February 7, 2025. This dividend represents a 3.1% projected annual yield utilizing the January 27, 2025 closing market price of $16.77.

    First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at December 31, 2024 were 14.6%, 12.9%, 10.6% and 12.1%, respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

    Conference Call

    First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full year 2024 on Wednesday, January 29, 2025 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-888-330-3181 conference ID # 4651379 or through the company’s web page, http://www.fcbanking.com/InvestorRelations. A replay of the call will be available approximately one hour following the conclusion of the conference by dialing 1-800-770-2030 and entering the conference ID # 4651379. A link to the webcast replay will also be accessible on the company’s webpage for 30 days.

    About First Commonwealth Financial Corporation

    First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services Company with 124 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh and Harrisburg, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The Company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.

    Forward-Looking Statements

    Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, and could be affected by many factors, including, but not limited to: (1) volatility and disruption in national and international financial markets; (2) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (3) inflation, interest rate, commodity price, securities market and monetary fluctuations; (4) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (5) the soundness of other financial institutions; (6) political instability; (7) impairment of First Commonwealth’s goodwill or other intangible assets; (8) acts of God or of war or terrorism; (9) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (10) changes in consumer spending, borrowings and savings habits; (11) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (12) technological changes; (13) acquisitions and integration of acquired businesses; (14) First Commonwealth’s ability to attract and retain qualified employees; (15) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (16) the ability to increase market share and control expenses; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (19) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (20) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

    In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    Media Relations:
    Ron Wahl
    Communications and Media Relations
    Phone: 724-463-6806
    E-mail: RWahl@fcbanking.com

    Investor Relations:
    Ryan M. Thomas
    Vice President / Finance and Investor Relations
    Phone: 724-463-1690
    E-mail: RThomas1@fcbanking.com

     
    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)
     For the Three Months Ended For the Year Ended
     December 31, September 30, December 31, December 31, December 31,
      2024   2024   2023   2024   2023 
    SUMMARY RESULTS OF OPERATIONS         
    Net interest income$95,081  $96,515  $95,737  $378,892  $385,676 
    Provision for credit losses 6,490   10,615   (1,865)  29,170   4,160 
    Provision for credit losses — acquisition day 1 non-PCD —   —   —   —   10,653 
    Noninterest income 25,335   24,698   24,297   99,231   96,609 
    Noninterest expense 69,304   70,070   65,180   270,745   269,917 
    Net income 35,849   32,086   44,827   142,572   157,063 
    Core net income (5) 36,067   31,933   44,964   142,709   172,697 
    Earnings per common share (diluted)$0.35  $0.31  $0.44  $1.39  $1.54 
    Core earnings per common share (diluted) (6)$0.35  $0.31  $0.44  $1.40  $1.70 
    KEY FINANCIAL RATIOS         
    Return on average assets 1.23%  1.08%  1.56%  1.22%  1.42%
    Core return on average assets (7) 1.23%  1.08%  1.56%  1.22%  1.56%
    Return on average assets, pre-provision, pre-tax 1.75%  1.73%  1.91%  1.78%  1.91%
    Core return on average assets, pre-provision, pre-tax 1.76%  1.72%  1.91%  1.78%  2.00%
    Return on average shareholders' equity 10.16%  9.19%  14.11%  10.44%  12.80%
    Return on average tangible common equity (8) 14.40%  13.09%  20.78%  14.94%  19.01%
    Core return on average tangible common equity (9) 14.48%  13.02%  20.85%  14.95%  20.86%
    Core efficiency ratio (2)(10) 56.07%  56.66%  53.00%  55.36%  52.91%
    Net interest margin (FTE) (1) 3.54%  3.56%  3.65%  3.55%  3.81%
              
    Book value per common share$13.81  $13.79  $12.87     
    Tangible book value per common share (11) 10.04   10.03   9.09     
    Market value per common share 16.92   17.15   15.44     
    Cash dividends declared per common share 0.130   0.130   0.125   0.515   0.495 
    ASSET QUALITY RATIOS         
    Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 0.68%  0.83%  0.44%    
    Nonperforming assets as a percent of total assets (3) 0.55%  0.64%  0.36%    
    Net charge-offs as a percent of average loans and leases (annualized) (4) 0.61%  0.39%  0.72%    
    Allowance for credit losses as a percent of nonperforming loans and leases (4) 193.48%  168.77%  298.23%    
    Allowance for credit losses as a percent of end-of-period loans and leases (4) 1.32%  1.41%  1.31%    
    CAPITAL RATIOS         
    Shareholders' equity as a percent of total assets 12.1%  11.8%  11.5%    
    Tangible common equity as a percent of tangible assets (12) 9.1%  8.8%  8.4%    
    Leverage Ratio 10.6%  10.3%  10.0%    
    Risk Based Capital - Tier I 12.9%  12.7%  11.9%    
    Risk Based Capital - Total 14.6%  14.5%  13.9%    
    Common Equity - Tier I 12.1%  12.0%  11.2%    


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)
     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024 2024  2023   2024  2023 
    INCOME STATEMENT      
    Interest income$149,996$154,323 $144,257  $600,463 $529,998 
    Interest expense 54,915 57,808  48,520   221,571  144,322 
    Net Interest Income 95,081 96,515  95,737   378,892  385,676 
    Provision for credit losses 6,490 10,615  (1,865)  29,170  4,160 
    Provision for credit losses - acquisition day 1 non-PCD — —  —   —  10,653 
    Net Interest Income after Provision for Credit Losses 88,591 85,900  97,602   349,722  370,863 
    Net securities gains (losses) 1 88  —   (5,446) (103)
    Gain on VISA exchange — 106  —   5,664  — 
    Trust income 3,031 3,242  2,549   11,821  10,516 
    Service charges on deposit accounts 5,749 5,840  5,595   22,518  21,437 
    Insurance and retail brokerage commissions 2,654 3,087  2,825   11,546  10,929 
    Income from bank owned life insurance 1,418 2,278  1,211   6,361  4,875 
    Gain on sale of mortgage loans 1,645 1,151  776   5,795  3,951 
    Gain on sale of other loans and assets 3,076 2,576  1,740   9,111  6,744 
    Card-related interchange income 3,923 4,137  7,218   21,887  28,640 
    Derivative mark-to-market 95 (153) (13)  (46) 14 
    Swap fee income 797 88  490   885  1,519 
    Other income 2,946 2,258  1,906   9,135  8,087 
    Total Noninterest Income 25,335 24,698  24,297   99,231  96,609 
    Salaries and employee benefits 38,025 38,618  36,232   149,287  142,871 
    Net occupancy 4,769 4,858  4,637   19,783  19,221 
    Furniture and equipment 4,360 4,335  4,372   17,453  17,308 
    Data processing 4,039 3,879  3,986   15,582  15,010 
    Pennsylvania shares tax 1,968 1,126  351   5,422  4,364 
    Advertising and promotion 1,358 1,960  1,061   5,535  5,713 
    Intangible amortization 1,368 1,223  1,210   5,024  4,983 
    Other professional fees and services 1,557 1,448  1,543   5,533  5,919 
    FDIC insurance 1,436 1,638  1,646   5,973  6,260 
    Litigation and operational losses 920 2,181  1,378   4,592  4,641 
    Loss on sale or write-down of assets 99 132  107   451  204 
    Loss on early redemption of subordinated debt — —  —   369  — 
    Merger and acquisition 277 —  174   391  9,034 
    Other operating expenses 9,128 8,672  8,483   35,350  34,389 
    Total Noninterest Expense 69,304 70,070  65,180   270,745  269,917 
    Income before Income Taxes 44,622 40,528  56,719   178,208  197,555 
    Income tax provision 8,773 8,442  11,892   35,636  40,492 
    Net Income$35,849$32,086 $44,827  $142,572 $157,063 
           
    Shares Outstanding at End of Period 101,758,450 102,237,941  102,114,664   101,758,450  102,114,664 
    Average Shares Outstanding Assuming Dilution 101,963,018 102,418,964  102,264,768   102,205,497  101,822,201 
           


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
          
     December 31, September 30, December 31,
      2024   2024   2023 
    BALANCE SHEET (Period End)     
    Assets     
    Cash and due from banks$105,051  $126,598  $125,436 
    Interest-bearing bank deposits 28,358   455,711   21,557 
    Securities available for sale, at fair value 1,178,577   1,165,392   1,071,857 
    Securities held to maturity, at amortized cost 405,639   430,425   419,009 
    Loans held for sale 51,991   46,785   29,820 
          
    Loans and leases 8,983,754   8,965,500   8,968,761 
    Allowance for credit losses (118,906)  (126,112)  (117,718)
    Net loans and leases 8,864,848   8,839,388   8,851,043 
          
    Goodwill and other intangibles 383,352   384,172   386,535 
    Other assets 567,120   534,728   554,231 
    Total Assets$11,584,936  $11,983,199  $11,459,488 
          
    Liabilities and Shareholders' Equity     
    Noninterest-bearing demand deposits$2,249,615  $2,463,971  $2,388,533 
          
    Interest-bearing demand deposits 688,596   671,667   629,138 
    Savings deposits 4,989,342   4,953,206   4,886,781 
    Time deposits 1,750,466   1,656,708   1,287,857 
    Total interest-bearing deposits 7,428,404   7,281,581   6,803,776 
          
    Total deposits 9,678,019   9,745,552   9,192,309 
          
    Short-term borrowings 80,139   538,828   597,835 
    Long-term borrowings 262,985   136,285   186,757 
    Total borrowings 343,124   675,113   784,592 
          
    Other liabilities 158,628   152,918   168,313 
    Shareholders' equity 1,405,165   1,409,616   1,314,274 
    Total Liabilities and Shareholders' Equity$11,584,936  $11,983,199  $11,459,488 



    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     For the Three Months Ended For the Year Ended
     December 31,Yield/September 30,Yield/December 31,Yield/ December 31,Yield/December 31,Yield/
     2024Rate2024Rate2023Rate 2024Rate2023Rate
    NET INTEREST MARGIN          
                
    Assets           
    Loans and leases (FTE)(1)(3)$9,034,0965.97%$9,004,8086.09%$8,974,6135.89% $9,013,7426.02%$8,714,7705.64%
    Interest bearing bank deposits 58,4695.22% 278,0065.49% 112,7225.61%  164,3395.52% 176,1465.39%
    Securities (FTE)(1) 1,620,8233.43% 1,542,7923.34% 1,353,2402.85%  1,536,8123.27% 1,260,8542.37%
    Total Interest-Earning Assets (FTE) (1) 10,713,3885.58% 10,825,6065.68% 10,440,5755.49%  10,714,8935.62% 10,151,7705.23%
    Noninterest-earning assets 912,328  950,926  961,555   940,073  940,083 
    Total Assets$11,625,716 $11,776,532 $11,402,130  $11,654,966 $11,091,853 
                
    Liabilities and Shareholders' Equity           
    Interest-bearing demand and savings deposits$5,703,7632.22%$5,657,7962.27%$5,540,3641.90% $5,636,5532.20%$5,508,1821.46%
    Time deposits 1,730,2514.32% 1,575,9754.40% 1,217,3563.81%  1,549,9994.32% 972,7353.28%
    Short-term borrowings 98,1134.28% 541,0104.62% 548,6805.43%  444,4534.60% 439,5564.95%
    Long-term borrowings 252,0645.07% 136,4085.44% 186,8605.75%  186,5505.51% 186,6875.45%
    Total Interest-Bearing Liabilities 7,784,1912.81% 7,911,1892.91% 7,493,2602.57%  7,817,5552.83% 7,107,1602.03%
    Noninterest-bearing deposits 2,293,343  2,286,482  2,434,560   2,298,065  2,552,596 
    Other liabilities 144,153  189,571  213,492   173,426  205,224 
    Shareholders' equity 1,404,029  1,389,290  1,260,818   1,365,920  1,226,873 
    Total Noninterest-Bearing Funding Sources 3,841,525  3,865,343  3,908,870   3,837,411  3,984,693 
    Total Liabilities and Shareholders' Equity$11,625,716 $11,776,532 $11,402,130  $11,654,966 $11,091,853 
                
    Net Interest Margin (FTE) (annualized)(1) 3.54% 3.56% 3.65%  3.55% 3.81%


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     December 31,September 30,December 31,
      2024  2024  2023 
    Loan and Lease Portfolio Detail   
    Commercial Loan and Lease Portfolio:   
    Commercial, financial, agricultural and other$1,250,669 $1,263,008 $1,310,405 
    Commercial real estate 3,124,704  3,069,438  3,053,152 
    Equipment finance loans and leases 427,320  366,527  232,944 
    Real estate construction 475,367  522,548  541,633 
    Total Commercial 5,278,060  5,221,521  5,138,134 
        
    Consumer Loan Portfolio:   
    Closed-end mortgages 1,849,223  1,878,980  1,926,254 
    Home equity lines of credit 492,480  495,396  490,622 
    Real estate construction 8,017  18,227  56,102 
    Total Real Estate - Consumer 2,349,720  2,392,603  2,472,978 
        
    Auto & RV loans 1,280,645  1,275,765  1,277,969 
    Direct installment 25,935  26,425  27,167 
    Personal lines of credit 47,313  47,076  49,355 
    Student loans 2,081  2,110  3,158 
    Total Other Consumer 1,355,974  1,351,376  1,357,649 
    Total Consumer Portfolio 3,705,694  3,743,979  3,830,627 
    Total Portfolio Loans and Leases 8,983,754  8,965,500  8,968,761 
    Loans held for sale 51,991  46,785  29,820 
    Total Loans and Leases$9,035,745 $9,012,285 $8,998,581 
        
        
     December 31,September 30,December 31,
      2024  2024  2023 
    ASSET QUALITY DETAIL   
    Nonperforming Loans and Leases:   
    Loans and leases on nonaccrual basis$45,827 $50,929 $24,997 
    Loans on nonaccrual basis - Centric acquisition 15,629  23,794  14,475 
    Total Nonperforming Loans and Leases$61,456 $74,723 $39,472 
    Other real estate owned ("OREO") 895  669  422 
    Repossessions ("Repos") 792  1,188  1,024 
    Total Nonperforming Assets$63,143 $76,580 $40,918 
    Loans past due in excess of 90 days and still accruing 2,064  1,191  9,436 
    Classified loans and leases 96,296  114,751  87,056 
    Criticized loans and leases 224,175  241,962  210,187 
        
    Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4) 0.70% 0.85% 0.46%
    Allowance for credit losses$118,906 $126,112 $117,718 
     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024  2024  2023   2024  2023 
    Net Charge-offs (Recoveries):      
    Commercial, financial, agricultural and other$4,102 $5,870 $9,951  $14,699 $18,701 
    Real estate construction 1,057  —  —   1,086  — 
    Commercial real estate 6,620  1,381  4,579   8,501  6,126 
    Residential real estate (27) 55  58   113  314 
    Loans to individuals 1,939  1,479  1,750   6,781  5,011 
    Net Charge-offs$13,691 $8,785 $16,338  $31,180 $30,152 
           
    Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4) 0.61% 0.39% 0.72%  0.35% 0.35%
    Provision for credit losses as a percentage of net charge-offs 47.40% 120.83% (11.42)%  93.55% 13.80%
    Provision for credit losses$6,490 $10,615 $(1,865) $29,170 $4,160 


    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
    Note: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons.

    (1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%.
    (2) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.
    (3) Includes held for sale loans.
    (4) Excludes held for sale loans.

       
     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024 2024 2023  2024 2023
           
    Interest income$149,996$154,323$144,257 $600,463$529,998
    Adjustment to fully taxable equivalent basis (1) 354 342 314  1,347 1,237
    Interest income adjusted to fully taxable equivalent basis (non-GAAP) 150,350 154,665 144,571  601,810 531,235
    Interest expense 54,915 57,808 48,520  221,571 144,322
    Net interest income, (FTE) (1)$95,435$96,857$96,051 $380,239$386,913


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)
     
    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
           
     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024  2024  2023   2024  2023 
           
    Net Income$35,849 $32,086 $44,827  $142,572 $157,063 
    Intangible amortization 1,368  1,223  1,210   5,024  4,983 
    Tax benefit of amortization of intangibles (287) (257) (254)  (1,055) (1,046)
    Net Income, adjusted for tax affected amortization of intangibles$36,930 $33,052 $45,783  $146,541 $161,000 
           
    Average Tangible Equity:      
    Total shareholders' equity$1,404,029 $1,389,290 $1,260,818  $1,365,920 $1,226,873 
    Less: intangible assets 383,620  384,404  386,896   384,844  380,016 
    Tangible Equity 1,020,409  1,004,886  873,922   981,076  846,857 
    Less: preferred stock —  —  —   —  — 
    Tangible Common Equity$1,020,409 $1,004,886 $873,922  $981,076 $846,857 
           
    (8)Return on Average Tangible Common Equity 14.40% 13.09% 20.78%  14.94% 19.01%


     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024  2024  2023   2024  2023 
           
    Core Net Income:      
    Total Net Income$35,849 $32,086 $44,827  $142,572 $157,063 
    Net securities (gains) losses (1) (194) —   (218) 103 
    Tax benefit of net securities gains —  41  —   46  (22)
    Merger and acquisition related expenses 277  —  174   391  9,034 
    Tax benefit of merger and acquisition related expenses (58) —  (37)  (82) (1,897)
    Provision for credit losses - acquisition day 1 non-PCD —  —  —   —  10,653 
    Tax benefit of provision for credit losses - acquisition day 1 non-PCD —  —  —   —  (2,237)
    (5) Core net income$36,067 $31,933 $44,964  $142,709 $172,697 
    Average Shares Outstanding Assuming Dilution 101,963,018  102,418,964  102,264,768   102,205,497  101,822,201 
    (6) Core Earnings per common share (diluted)$0.35 $0.31 $0.44  $1.40 $1.70 
           
    Intangible amortization 1,368  1,223  1,210   5,024  4,983 
    Tax benefit of amortization of intangibles (287) (257) (254)  (1,055) (1,046)
    Core Net Income, adjusted for tax affected amortization of intangibles$37,148 $32,899 $45,920  $146,678 $176,634 
           
    (9) Core Return on Average Tangible Common Equity 14.48% 13.02% 20.85%  14.95% 20.86%


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)
     
    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
           
     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024  2024  2023   2024  2023 
    Core Return on Average Assets:      
    Total Net Income$35,849 $32,086 $44,827  $142,572 $157,063 
    Total Average Assets 11,625,716  11,776,532  11,402,130   11,654,966  11,091,853 
    Return on Average Assets 1.23% 1.08% 1.56%  1.22% 1.42%
           
    Core Net Income (5)$36,067 $31,933 $44,964  $142,709 $172,697 
    Total Average Assets 11,625,716  11,776,532  11,402,130   11,654,966  11,091,853 
    (7) Core Return on Average Assets 1.23% 1.08% 1.56%  1.22% 1.56%


     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024  2024  2023   2024  2023 
    Core Efficiency Ratio:      
    Total Noninterest Expense$69,304 $70,070 $65,180  $270,745 $269,917 
    Adjustments to Noninterest Expense:      
    Intangible amortization 1,368  1,223  1,210   5,024  4,983 
    Merger and acquisition related 277  —  174   391  9,034 
    Noninterest Expense - Core$67,659 $68,847 $63,796  $265,330 $255,900 
           
    Net interest income, (FTE)$95,435 $96,857 $96,051  $380,239 $386,913 
    Total noninterest income 25,335  24,698  24,297   99,231  96,609 
    Net securities (gains) losses (1) (194) —   (218) 103 
    Total Revenue 120,769  121,361  120,348   479,252  483,625 
           
    Adjustments to Revenue:      
    Derivative mark-to-market 95  (153) (13)  (46) 14 
    Total Revenue - Core$120,674 $121,514 $120,361  $479,298 $483,611 
           
    (10)Core Efficiency Ratio 56.07% 56.66% 53.00%  55.36% 52.91%


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     
    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
        
     December 31,September 30,December 31,
      2024  2024  2023 
    Tangible Equity:   
    Total shareholders' equity$1,405,165 $1,409,616 $1,314,274 
    Less: intangible assets 383,352  384,172  386,535 
    Tangible Equity 1,021,813  1,025,444  927,739 
    Less: preferred stock —  —  — 
    Tangible Common Equity$1,021,813 $1,025,444 $927,739 
        
    Tangible Assets:   
    Total assets$11,584,936 $11,983,199 $11,459,488 
    Less: intangible assets 383,352  384,172  386,535 
    Tangible Assets$11,201,584 $11,599,027 $11,072,953 
        
    (12)Tangible Common Equity as a percentage of Tangible Assets 9.12% 8.84% 8.38%
        
    Shares Outstanding at End of Period 101,758,450  102,237,941  102,114,664 
    (11)Tangible Book Value Per Common Share$10.04 $10.03 $9.09 


     For the Three Months Ended For the Year Ended
     December 31,September 30,December 31, December 31,December 31,
      2024  2024  2023  2024  2023
    Pre-tax pre-provision income:      
    Net interest income$95,081 $96,515 $95,737 $378,892 $385,676
    Noninterest income 25,335  24,698  24,297  99,231  96,609
    Noninterest expense 69,304  70,070  65,180  270,745  269,917
    Pre-tax pre-provision income$51,112 $51,143 $54,854 $207,378 $212,368
           
    Net securities (gains) losses$(1)$(194)$— $(218)$103
    Merger and acquisition related expenses 277  —  174  391  9,034
    Core pre-tax pre-provision income$51,388 $50,949 $55,028 $207,551 $221,505
           
    Net charge-offs$13,691 $8,785 $16,338 $31,180 $30,152

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