• First Commonwealth Announces Third Quarter 2024 Earnings; Declares Quarterly Dividend

    Source: Nasdaq GlobeNewswire / 29 Oct 2024 17:00:01   America/New_York

    INDIANA, Pa., Oct. 29, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2024.

    Financial Summary

     (dollars in thousands,For the Three Months Ended For the Nine Months Ended
     except per share data)September 30, June 30, September 30, September 30, September 30,
       2024   2024   2023   2024   2023 
     Reported Results         
     Net income$32,086  $37,088  $39,231  $106,723  $112,236 
     Diluted earnings per share$0.31  $0.36  $0.38  $1.04  $1.10 
     Return on average assets 1.08%  1.28%  1.38%  1.22%  1.37%
     Return on average equity 9.19%  11.10%  12.46%  10.54%  12.35%
               
     Operating Results (non-GAAP)(1)         
     Core net income$31,933  $37,070  $39,611  $106,642  $127,732 
     Core diluted earnings per share$0.31  $0.36  $0.39  $1.04  $1.26 
     Core pre-tax pre-provision net revenue$50,949  $54,381  $55,652  $156,163  $166,477 
     Provision expense$10,615  $7,827  $5,885  $22,680  $6,025 
     Provision for credit losses - acquisition day 1 non-PCD$—  $—  $—  $—  $10,653 
     Net charge-offs$8,785  $4,402  $3,976  $17,489  $13,814 
     Reserve build/(release)(2)$2,458  $4,556  $791  $8,394  $31,431 
     Core return on average assets (ROAA) 1.08%  1.27%  1.39%  1.22%  1.55%
     Core pre-tax pre-provision ROAA 1.72%  1.87%  1.95%  1.79%  2.03%
     Return on average tangible common equity 13.09%  15.94%  18.55%  15.13%  18.39%
     Core return on average tangible common equity 13.02%  15.93%  18.73%  15.12%  20.86%
     Core efficiency ratio 56.66%  53.63%  53.42%  55.12%  52.88%
     Net interest margin (FTE) 3.56%  3.57%  3.76%  3.55%  3.87%
    (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. 
      

    Third Quarter 2024 Highlights

    • Net income of $32.1 million and diluted earnings per share of $0.31 represented a decrease of $5.0 million, or $0.05 per share, from the prior quarter and a decrease of $7.1 million, or $0.07 per share, from the third quarter of 2023
    • Core pre-tax pre-provision net revenue (PPNR)(1) totaled $50.9 million, a decrease of $3.4 million from the previous quarter and a decrease of $4.7 million from the third quarter of 2023
    • Net interest income (FTE) of $96.9 million increased $1.5 million from the previous quarter and decreased $1.2 million from the third quarter of 2023
    • Average deposits increased $76.4 million, or 3.2% annualized, compared to the prior quarter, due to a $71.4 million increase in average time deposits and a $28.8 million increase in interest-bearing demand and savings partially offset by a $23.8 million decrease in average noninterest-bearing deposits
      • End of period deposits increased $336.6 million, or 14.2% annualized, compared to the prior quarter
    • Total loans decreased $33.4 million, or 1.5% annualized, from the previous quarter, driven by a $26.1 million decrease in consumer real estate loans
      • The loan-to-deposit ratio decreased 366 basis points to 92.5% at the end of the third quarter of 2024
    • Noninterest income (excluding security gains and losses) of $24.5 million decreased $0.7 million from the previous quarter which reflects a $3.0 million decrease in card related interchange income resulting from a full quarter effect of the Durbin amendment
    • Noninterest expense of $70.1 million increased $4.3 million from the previous quarter due primarily to elevated operational losses and employee-related salaries and benefits
    • Total shareholders' equity increased $47.1 million from the previous quarter, primarily due to a $30.3 million increase in accumulated other comprehensive income (AOCI) resulting from the impact of lower interest rates on the fair value of the Company’s available for sale investment portfolio and interest rate swap agreements, combined with an $18.8 million increase in retained earnings
      • Tangible book value per share increased $0.47, or 19.7% annualized, from the previous quarter
      • AOCI as a percentage of tangible common equity decreased 350 basis points to 8.1% in the third quarter of 2024

    Profitability

    • Core pre-tax pre-provision ROA(1) for the quarter ended September 30, 2024 was 1.72% as compared to 1.87% in the prior quarter and 1.95% in the third quarter of 2023
    • The net interest margin (FTE) of 3.56% decreased one basis point compared to the prior quarter and decreased 20 basis points as compared to the third quarter of 2023
      • Purchase accounting accretion contributed seven basis points to the margin in the third quarter, a decrease of one basis point from the prior quarter
      • The retention of $278 million of excess cash on the Bank’s balance sheet had a negative impact on the net interest margin of nine basis points in the third quarter
    • The core efficiency ratio(1) of 56.66% increased 303 basis points from the previous quarter and increased 324 basis points compared to the third quarter of 2023
    • The return on average assets (ROA) decreased 20 basis points to 1.08% compared to the previous quarter and decreased 30 basis points compared to the third quarter of 2023
      • The core return on average assets(1) decreased 19 basis points to 1.08% compared to the previous quarter and decreased 31 basis points compared to the third quarter of 2023

    Asset quality

    • The provision for credit losses was $10.6 million, an increase of $2.8 million compared to the previous quarter
    • The allowance for credit losses as a percentage of end-of-period loans was 1.41%, an increase of four basis points from the previous quarter
    • Total nonperforming loans of $74.7 million increased $17.6 million from the previous quarter
      • Approximately $23.8 million or 31.8% of nonperforming loans were acquired
    • Total classified loans increased $11.6 million from the previous quarter, from $103.1 million, or 1.15% of total loans and leases, to $114.8 million, or 1.28% of total loans and leases
    • Net charge-offs on loans totaled $8.8 million, an increase of $4.4 million from the previous quarter and includes $6.2 million of acquired loans that were reserved for through purchase accounting marks
      • Net charge-offs (annualized) as a percentage of average loans outstanding was 0.39% in the third quarter of 2024 as compared to 0.20% in the previous quarter, 27 basis points of which was attributable to the charge off of acquired loans

    Strong capital and liquidity positions

    • Total available liquidity of $4.9 billion at September 30, 2024
    • Bank-level Tier 1 Capital ratio of 11.7%, which represents $339.3 million in excess capital above the regulatory “well capitalized” requirement of 8.0%
    • A total of 146,850 shares at a weighted average price of $16.83 were repurchased during the third quarter of 2024 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was $14.6 million as of September 30, 2024

    “First Commonwealth’s third quarter results highlight our continued strength, with a solid 1.73% pre-tax pre-provision ROAA and a stable net interest margin coupled with meaningful deposit growth,” stated T. Michael Price, President and Chief Executive Officer. “Despite a $3.0 million headwind from the Durbin amendment kicking in, our organization demonstrated its diverse revenue sources to largely blunt the reduction in fee income.” Price continues, “While we experienced elevated credit expenses this quarter, we remain focused on disciplined growth and I am confident in our ability to optimize shareholder value to the benefit of all of our long-term stakeholders.”

    Earnings

    Net income for the third quarter of 2024 was $32.1 million, or $0.31 per share, compared to $37.1 million, or $0.36 per share in the second quarter of 2024, and $39.2 million, or $0.38 per share for the third quarter of 2023.

    Net Interest Income and Net Interest Margin

    Net interest income (FTE) of $96.9 million was increased $1.5 million from the previous quarter and decreased $1.2 million from the prior year quarter. The increase from the prior quarter was primarily due to an $89.5 million increase in average interest-earning assets, partially offset by a decrease in the net interest margin.

    The net interest margin (FTE) for the third quarter of 2024 was 3.56%, a decrease of one basis point from the previous quarter and a decrease of 20 basis points from the third quarter of 2023. The decrease from the previous quarter was due primarily to a 10 basis point decrease in variable rate commercial loans, partially offset by a 19 basis point increase in the yield on indirect auto loans and an 11 basis point increase in the yield on investment securities. The yield on total interest earning assets increased two basis points from the previous quarter, which was offset by a five basis point increase in the cost of funds. The total cost of funds was 2.26% in the third quarter of 2024.

    Total average deposits grew $76.4 million in the third quarter of 2024 as compared to the previous quarter. Average time deposits grew $71.4 million and interest-bearing demand and savings deposits grew $28.8 million, which offset a $23.8 million decrease in average noninterest-bearing deposits.

    Total loans decreased $33.4 million, or 1.5% annualized, from the previous quarter, driven by a $49.8 million decrease in commercial and industrial (C&I) loans and a $23.2 million decrease in closed-end 1-4 family mortgages, partially offset by a $49.8 million increase in equipment finance loans and leases.

    Average interest-earning assets increased $89.5 million, or 3.3% annualized, from the previous quarter. Average interest bearing bank deposits increased $69.6 million and average investment securities increased $32.4 million which offset a $12.5 million decrease in average loans.

    Asset Quality

    Provision expense in the third quarter of 2024 totaled $10.6 million as compared to $7.8 million in the previous quarter. The $2.8 million increase in the provision expense was primarily driven by a $4.4 million increase in net charge-offs and a $2.5 million increase in specific reserves for two commercial credits that were moved to nonaccrual status during the quarter.

    The allowance for credit losses in the third quarter of 2024 totaled $126.1 million as compared to $123.7 million in the previous quarter. The increase from the previous quarter was primarily the result of the aforementioned specific reserves, partially offset by $8.8 million in net charge-offs ($3.6 million of which were related to specific reserves recognized in prior periods).

    The allowance for credit losses as a percentage of end-of-period loans in the third quarter of 2024 was 1.41% as compared to 1.37% in the previous quarter.

    At September 30, 2024, nonperforming loans totaled $74.7 million, an increase of $17.6 million from the previous quarter.

    Nonperforming loans represented 0.83% of total loans for the period ended September 30, 2024 as compared to 0.63% and 0.54% for the periods ended June 30, 2024 and September 30, 2023, respectively.

    During the third quarter of 2024, net charge-offs were $8.8 million as compared to $4.4 million in the previous quarter and $4.0 million in the third quarter of 2023. The increase from the prior quarter was primarily due to the charge off of $5.1 million for two commercial loans.

    Net charge-offs (annualized) as a percentage of average loans were 0.39%, 0.20% and 0.18% for the periods ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    Noninterest Income and Noninterest Expense

    Noninterest income (excluding security gains and losses) totaled $24.5 million for the third quarter of 2024, as compared to $25.2 million for the second quarter of 2024 and $24.9 million for the third quarter of 2023. The $0.7 million decrease from the previous quarter was primarily due to a $3.0 million decrease in card-related interchange resulting from the effect of the Durbin amendment reduction, partially offset by a $1.0 million increase in gain on sale of Small Business Administration (SBA) loans and a $0.9 million increase in bank owned life insurance revenue.

    Noninterest expense totaled $70.1 million for the third quarter of 2024, as compared to $65.8 million for the second quarter of 2024 and $67.4 million for the third quarter of 2023. Expense increased in comparison with the prior quarter primarily due to a $1.7 million increase in operational losses, a $1.3 million increase in salaries and benefits due to higher severance and hospitalization expense and a $1.1 million increase in advertising and promotion expense due to a $0.4 million debit card incentive payment received from a 3rd party vendor in the prior quarter along with higher checking account promotion expense.

    The core efficiency ratio was 56.7% during the third quarter of 2024 as compared to 53.6% in the previous quarter and 53.4% in the third quarter of 2023.

    Full time equivalent staff was 1,500 at September 30, 2024, 1,472 at June 30, 2024, and 1,481 at September 30, 2023.

    Dividends and Capital

    First Commonwealth declared a common stock quarterly dividend of $0.13 per share, which represents a 4.0% increase from the third quarter of 2023. The cash dividend is payable on November 22, 2024 to shareholders of record as of November 8, 2024. This dividend represents a 3.0% projected annual yield utilizing the October 28, 2024 closing market price of $17.09.

    First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at September 30, 2024 were 14.5%, 12.7%, 10.3% and 12.0%, 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 third quarter of 2024 on Wednesday, October 30, 2024 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 Nine Months Ended
     September 30, June 30, September 30, September 30, September 30,
      2024   2024   2023   2024   2023 
    SUMMARY RESULTS OF OPERATIONS         
    Net interest income$96,515  $94,992  $97,757  $283,811  $289,939 
    Provision for credit losses 10,615   7,827   5,885   22,680   6,025 
    Provision for credit losses — acquisition day 1 non-PCD —   —   —   —   10,653 
    Noninterest income 24,698   25,210   24,826   73,896   72,312 
    Noninterest expense 70,070   65,798   67,413   201,441   204,737 
    Net income 32,086   37,088   39,231   106,723   112,236 
    Core net income(5) 31,933   37,070   39,611   106,642   127,732 
    Earnings per common share (diluted)$0.31  $0.36  $0.38  $1.04  $1.10 
    Core earnings per common share (diluted)(6)$0.31  $0.36  $0.39  $1.04  $1.26 
    KEY FINANCIAL RATIOS         
    Return on average assets 1.08%  1.28%  1.38%  1.22%  1.37%
    Core return on average assets(7) 1.08%  1.27%  1.39%  1.22%  1.55%
    Return on average assets, pre-provision, pre-tax 1.73%  1.87%  1.94%  1.79%  1.92%
    Core return on average assets, pre-provision, pre-tax 1.72%  1.87%  1.95%  1.79%  2.03%
    Return on average shareholders' equity 9.19%  11.10%  12.46%  10.54%  12.35%
    Return on average tangible common equity(8) 13.09%  15.94%  18.55%  15.13%  18.39%
    Core return on average tangible common equity(9) 13.02%  15.93%  18.73%  15.12%  20.86%
    Core efficiency ratio(2)(10) 56.66%  53.63%  53.42%  55.12%  52.88%
    Net interest margin (FTE)(1) 3.56%  3.57%  3.76%  3.55%  3.87%
              
    Book value per common share$13.79  $13.32  $12.14     
    Tangible book value per common share(11) 10.03   9.56   8.35     
    Market value per common share 17.15   13.81   12.21     
    Cash dividends declared per common share 0.130   0.130   0.125   0.385   0.370 
    ASSET QUALITY RATIOS         
    Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 0.83%  0.63%  0.54%    
    Nonperforming assets as a percent of total assets(3) 0.64%  0.51%  0.43%    
    Net charge-offs as a percent of average loans and leases (annualized)(4) 0.39%  0.20%  0.18%    
    Allowance for credit losses as a percent of nonperforming loans and leases(4) 168.77%  216.48%  280.31%    
    Allowance for credit losses as a percent of end-of-period loans and leases(4) 1.41%  1.37%  1.51%    
    CAPITAL RATIOS         
    Shareholders' equity as a percent of total assets 11.8%  11.7%  10.9%    
    Tangible common equity as a percent of tangible assets(12) 8.8%  8.7%  7.7%    
    Leverage Ratio 10.3%  10.2%  9.9%    
    Risk Based Capital - Tier I 12.7%  12.5%  11.6%    
    Risk Based Capital - Total 14.5%  14.2%  13.8%    
    Common Equity - Tier I 12.0%  11.7%  10.9%    
                    


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)
           
     For the Three Months Ended For the Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024  2024  2023   2024  2023 
    INCOME STATEMENT      
    Interest income$154,323 $150,682 $139,885  $450,467 $385,741 
    Interest expense 57,808  55,690  42,128   166,656  95,802 
    Net Interest Income 96,515  94,992  97,757   283,811  289,939 
    Provision for credit losses 10,615  7,827  5,885   22,680  6,025 
    Provision for credit losses - acquisition day 1 non-PCD —  —  —   —  10,653 
    Net Interest Income after Provision for Credit Losses 85,900  87,165  91,872   261,131  273,261 
    Net securities gains (losses) 88  (5,535) (103)  (5,447) (103)
    Gain on VISA exchange 106  5,558  —   5,664  — 
    Trust income 3,242  2,821  2,949   8,790  7,967 
    Service charges on deposit accounts 5,840  5,546  5,600   16,769  15,842 
    Insurance and retail brokerage commissions 2,663  2,709  2,305   7,618  7,171 
    Income from bank owned life insurance 2,278  1,371  1,242   4,943  3,664 
    Gain on sale of mortgage loans 1,151  1,671  1,270   4,150  3,175 
    Gain on sale of other loans and assets 2,576  1,408  1,027   6,035  5,004 
    Card-related interchange income 4,137  7,137  7,221   17,964  21,422 
    Derivative mark-to-market (153) —  35   (141) 27 
    Swap fee income 88  —  452   88  1,029 
    Other income 2,682  2,524  2,828   7,463  7,114 
    Total Noninterest Income 24,698  25,210  24,826   73,896  72,312 
    Salaries and employee benefits 38,618  37,320  35,640   111,262  106,639 
    Net occupancy 4,858  4,822  4,782   15,014  14,584 
    Furniture and equipment 4,335  4,278  4,414   13,093  12,936 
    Data processing 3,879  3,840  3,857   11,543  11,024 
    Pennsylvania shares tax 1,126  1,126  1,588   3,454  4,013 
    Advertising and promotion 1,960  898  1,662   4,177  4,652 
    Intangible amortization 1,223  1,169  1,344   3,656  3,773 
    Other professional fees and services 1,448  1,286  1,603   3,976  4,376 
    FDIC insurance 1,638  1,286  1,920   4,537  4,614 
    Litigation and operational losses 2,181  494  1,626   3,672  3,263 
    Loss on sale or write-down of assets 132  77  50   352  97 
    Loss on early redemption of subordinated debt —  369  —   369  — 
    Merger and acquisition —  —  379   114  8,860 
    Other operating expenses 8,672  8,833  8,548   26,222  25,906 
    Total Noninterest Expense 70,070  65,798  67,413   201,441  204,737 
    Income before Income Taxes 40,528  46,577  49,285   133,586  140,836 
    Income tax provision 8,442  9,489  10,054   26,863  28,600 
    Net Income$32,086 $37,088 $39,231  $106,723 $112,236 
           
    Shares Outstanding at End of Period 102,237,941  102,297,847  102,184,652   102,237,941  102,184,652 
    Average Shares Outstanding Assuming Dilution 102,418,964  102,287,598  102,442,878   102,293,213  101,674,970 
           


    FIRST COMMONWEALTH FINANCIAL CORPORATION  
    CONSOLIDATED FINANCIAL DATA     
    Unaudited     
    (dollars in thousands)     
          
     September 30, June 30, September 30,
      2024   2024   2023 
    BALANCE SHEET (Period End)     
    Assets     
    Cash and due from banks$126,598  $109,907  $122,982 
    Interest-bearing bank deposits 455,711   78,386   214,088 
    Securities available for sale, at fair value 1,165,392   1,101,154   866,582 
    Securities held to maturity, at amortized cost 430,425   453,820   429,558 
    Loans held for sale 46,785   50,769   33,127 
          
    Loans and leases 8,965,500   8,994,890   8,901,725 
    Allowance for credit losses (126,112)  (123,654)  (134,337)
    Net loans and leases 8,839,388   8,871,236   8,767,388 
          
    Goodwill and other intangibles 384,172   384,854   387,328 
    Other assets 534,728   576,747   600,935 
    Total Assets$11,983,199  $11,626,873  $11,421,988 
          
    Liabilities and Shareholders' Equity     
    Noninterest-bearing demand deposits$2,463,971  $2,304,830  $2,535,704 
          
    Interest-bearing demand deposits 671,667   619,877   632,062 
    Savings deposits 4,953,206   4,955,718   4,928,607 
    Time deposits 1,656,708   1,528,496   1,144,692 
    Total interest-bearing deposits 7,281,581   7,104,091   6,705,361 
          
    Total deposits 9,745,552   9,408,921   9,241,065 
          
    Short-term borrowings 538,828   537,613   544,060 
    Long-term borrowings 136,285   136,581   187,017 
    Total borrowings 675,113   674,194   731,077 
          
    Other liabilities 152,918   181,253   209,315 
    Shareholders' equity 1,409,616   1,362,505   1,240,531 
    Total Liabilities and Shareholders' Equity$11,983,199  $11,626,873  $11,421,988 
     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)


     For the Three Months Ended For the Nine Months Ended
     September 30,Yield/June 30,Yield/September 30,Yield/ September 30,Yield/September 30,Yield/
      2024Rate 2024Rate 2023Rate  2024Rate 2023Rate
    NET INTEREST MARGIN         
                
    Assets           
    Loans and leases (FTE)(1)(3)$9,004,8086.09%$9,017,2886.06%$8,884,7315.79% $9,006,9086.03%$8,627,2035.56%
    Interest bearing bank deposits 278,0065.49% 208,3605.58% 235,7615.63%  199,8875.55% 197,5225.35%
    Securities (FTE)(1) 1,542,7923.34% 1,510,4093.23% 1,229,3082.32%  1,508,6043.21% 1,229,7212.20%
    Total Interest-Earning Assets (FTE)(1) 10,825,6065.68% 10,736,0575.66% 10,349,8005.37%  10,715,3995.63% 10,054,4465.14%
    Noninterest-earning assets 950,926  959,103  957,258   949,389  932,844 
    Total Assets$11,776,532 $11,695,160 $11,307,058  $11,664,788 $10,987,290 
                
    Liabilities and Shareholders' Equity           
    Interest-bearing demand and savings deposits$5,657,7962.27%$5,629,0282.20%$5,581,6231.67% $5,613,9862.19%$5,497,3361.31%
    Time deposits 1,575,9754.40% 1,504,5444.35% 1,054,2163.48%  1,489,4764.33% 890,2993.03%
    Short-term borrowings 541,0104.62% 545,5514.67% 504,0255.23%  560,7434.62% 402,7824.73%
    Long-term borrowings 136,4085.44% 170,9635.52% 187,1225.94%  164,5535.59% 186,6295.35%
    Total Interest-Bearing Liabilities 7,911,1892.91% 7,850,0862.85% 7,326,9862.28%  7,828,7582.84% 6,977,0461.84%
    Noninterest-bearing deposits 2,286,482  2,310,274  2,519,184   2,299,650  2,592,373 
    Other liabilities 189,571  190,440  211,447   183,255  202,438 
    Shareholders' equity 1,389,290  1,344,360  1,249,441   1,353,125  1,215,433 
    Total Noninterest-Bearing Funding Sources 3,865,343  3,845,074  3,980,072   3,836,030  4,010,244 
    Total Liabilities and Shareholders' Equity$11,776,532 $11,695,160 $11,307,058  $11,664,788 $10,987,290 
                
    Net Interest Margin (FTE) (annualized)(1) 3.56% 3.57% 3.76%  3.55% 3.87%
     


    FIRST COMMONWEALTH FINANCIAL CORPORATION 
    CONSOLIDATED FINANCIAL DATA   
    Unaudited   
    (dollars in thousands)   
     September 30,June 30,September 30,
      2024  2024  2023 
    Loan and Lease Portfolio Detail   
    Commercial Loan and Lease Portfolio:   
    Commercial, financial, agricultural and other$1,263,008 $1,312,816 $1,305,905 
    Commercial real estate 3,069,438  3,077,013  3,050,084 
    Equipment Finance loans and leases 366,527  316,700  190,116 
    Real estate construction 522,548  523,595  508,875 
    Total Commercial 5,221,521  5,230,124  5,054,980 
        
    Consumer Loan Portfolio:   
    Closed-end mortgages 1,878,980  1,902,173  1,915,506 
    Home equity lines of credit 495,396  492,133  499,275 
    Real estate construction 18,227  24,460  66,672 
    Total Real Estate - Consumer 2,392,603  2,418,766  2,481,453 
        
    Auto & RV loans 1,275,765  1,270,044  1,285,380 
    Direct installment 26,425  26,807  27,888 
    Personal lines of credit 47,076  46,932  48,718 
    Student loans 2,110  2,217  3,306 
    Total Other Consumer 1,351,376  1,346,000  1,365,292 
    Total Consumer Portfolio 3,743,979  3,764,766  3,846,745 
       Total Portfolio Loans and Leases 8,965,500  8,994,890  8,901,725 
    Loans held for sale 46,785  50,769  33,127 
       Total Loans and Leases$9,012,285 $9,045,659 $8,934,852 
        
        
     September 30,June 30,September 30,
      2024  2024  2023 
    ASSET QUALITY DETAIL   
    Nonperforming Loans and Leases:   
    Loans and leases on nonaccrual basis$50,929 $31,443 $25,902 
    Loans on nonaccrual basis - Centric acquisition 23,794  25,676  22,022 
    Total Nonperforming Loans and Leases$74,723 $57,119 $47,924 
    Other real estate owned ("OREO") 669  484  765 
    Repossessions ("Repos") 1,188  1,456  762 
    Total Nonperforming Assets$76,580 $59,059 $49,451 
    Loans past due in excess of 90 days and still accruing 1,191  1,753  2,484 
    Classified loans and leases 114,751  103,111  66,272 
    Criticized loans and leases 241,962  241,611  193,192 
        
    Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos(4) 0.85% 0.66% 0.56%
    Allowance for credit losses$126,112 $123,654 $134,337 
     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)


     For the Three Months Ended For the Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024  2024  2023   2024  2023 
    Net Charge-offs (Recoveries):      
    Commercial, financial, agricultural and other$5,870 $2,485 $1,664  $10,597 $8,750 
    Real estate construction —  35  —   29  — 
    Commercial real estate 1,381  331  166   1,881  1,547 
    Residential real estate 55  64  247   140  256 
    Loans to individuals 1,479  1,487  1,899   4,842  3,261 
    Net Charge-offs$8,785 $4,402 $3,976  $17,489 $13,814 
           
    Net charge-offs as a percentage of average loans and leases outstanding (annualized)(4) 0.39% 0.20% 0.18%  0.26% 0.21%
    Provision for credit losses as a percentage of net charge-offs 120.83% 177.81% 148.01%  129.68% 43.62%
    Provision for credit losses$10,615 $7,827 $5,885  $22,680 $6,025 
     


    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 Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024 2024 2023  2024 2023
           
    Interest income$154,323$150,682$139,885 $450,467$385,741
    Adjustment to fully taxable equivalent basis(1) 342 329 313  994 923
    Interest income adjusted to fully taxable equivalent basis (non-GAAP) 154,665 151,011 140,198  451,461 386,664
    Interest expense 57,808 55,690 42,128  166,656 95,802
    Net interest income, (FTE)(1)$96,857$95,321$98,070 $284,805$290,862
     


    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 Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024  2024  2023   2024  2023 
           
    Net Income$32,086 $37,088 $39,231  $106,723 $112,236 
    Intangible amortization 1,223  1,169  1,344   3,656  3,773 
    Tax benefit of amortization of intangibles (257) (245) (282)  (768) (792)
    Net Income, adjusted for tax affected amortization of intangibles$33,052 $38,012 $40,293  $109,611 $115,217 
           
    Average Tangible Equity:      
    Total shareholders' equity$1,389,290 $1,344,360 $1,249,441  $1,353,125 $1,215,433 
    Less: intangible assets 384,404  385,332  387,782   385,255  377,697 
    Tangible Equity 1,004,886  959,028  861,659   967,870  837,736 
    Less: preferred stock —  —  —   —  — 
    Tangible Common Equity$1,004,886 $959,028 $861,659  $967,870 $837,736 
           
    (8)Return on Average Tangible Common Equity 13.09% 15.94% 18.55%  15.13% 18.39%


     For the Three Months Ended For the Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024  2024  2023   2024  2023 
           
    Core Net Income:      
    Total Net Income$32,086 $37,088 $39,231  $106,723 $112,236 
    Net securities (gains) losses (194) (23) 103   (217) 103 
    Tax benefit of net securities gains 41  5  (22)  46  (22)
    Merger and acquisition related expenses —  —  379   114  8,860 
    Tax benefit of merger and acquisition related expenses —  —  (80)  (24) (1,861)
    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$31,933 $37,070 $39,611  $106,642 $127,732 
    Average Shares Outstanding Assuming Dilution 102,418,964  102,287,598  102,442,878   102,293,213  101,674,970 
    (6)Core Earnings per common share (diluted)$0.31 $0.36 $0.39  $1.04 $1.26 
           
    Intangible amortization 1,223  1,169  1,344   3,656  3,773 
    Tax benefit of amortization of intangibles (257) (245) (282)  (768) (792)
    Core Net Income, adjusted for tax affected amortization of intangibles$32,899 $37,994 $40,673  $109,530 $130,713 
           
    (9)Core Return on Average Tangible Common Equity 13.02% 15.93% 18.73%  15.12% 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 Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024  2024  2023   2024  2023 
    Core Return on Average Assets:      
    Total Net Income$32,086 $37,088 $39,231  $106,723 $112,236 
    Total Average Assets 11,776,532  11,695,160  11,307,058   11,664,788  10,987,290 
    Return on Average Assets 1.08% 1.28% 1.38%  1.22% 1.37%
           
    Core Net Income(5)$31,933 $37,070 $39,611  $106,642 $127,732 
    Total Average Assets 11,776,532  11,695,160  11,307,058   11,664,788  10,987,290 
    (7)Core Return on Average Assets 1.08% 1.27% 1.39%  1.22% 1.55%


     For the Three Months Ended For the Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024  2024  2023   2024  2023 
    Core Efficiency Ratio:      
    Total Noninterest Expense$70,070 $65,798 $67,413  $201,441 $204,737 
    Adjustments to Noninterest Expense:      
    Intangible amortization 1,223  1,169  1,344   3,656  3,773 
    Merger and acquisition related —  —  379   114  8,860 
    Noninterest Expense - Core$68,847 $64,629 $65,690  $197,671 $192,104 
           
    Net interest income, (FTE)$96,857 $95,321 $98,070  $284,805 $290,862 
    Total noninterest income 24,698  25,210  24,826   73,896  72,312 
    Net securities (gains) losses (194) (23) 103   (217) 103 
    Total Revenue 121,361  120,508  122,999   358,484  363,277 
           
    Adjustments to Revenue:      
    Derivative mark-to-market (153) —  35   (141) 27 
    Total Revenue - Core$121,514 $120,508 $122,964  $358,625 $363,250 
           
    (10)Core Efficiency Ratio 56.66% 53.63% 53.42%  55.12% 52.88%
     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)


    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES  
        
     September 30,June 30,September 30,
      2024  2024  2023 
    Tangible Equity:   
    Total shareholders' equity$1,409,616 $1,362,505 $1,240,531 
    Less: intangible assets 384,172  384,854  387,328 
    Tangible Equity 1,025,444  977,651  853,203 
    Less: preferred stock —  —  — 
    Tangible Common Equity$1,025,444 $977,651 $853,203 
        
    Tangible Assets:   
    Total assets$11,983,199 $11,626,873 $11,421,988 
    Less: intangible assets 384,172  384,854  387,328 
    Tangible Assets$11,599,027 $11,242,019 $11,034,660 
        
    (12)Tangible Common Equity as a percentage of Tangible Assets 8.84% 8.70% 7.73%
        
    Shares Outstanding at End of Period 102,237,941  102,297,847  102,184,652 
    (11)Tangible Book Value Per Common Share$10.03 $9.56 $8.35 


     For the Three Months Ended For the Nine Months Ended
     September 30,June 30,September 30, September 30,September 30,
      2024  2024  2023  2024  2023
    Pre-tax pre-provision income:      
    Net interest income$96,515 $94,992 $97,757 $283,811 $289,939
    Noninterest income 24,698  25,210  24,826  73,896  72,312
    Noninterest expense 70,070  65,798  67,413  201,441  204,737
    Pre-tax pre-provision income$51,143 $54,404 $55,170 $156,266 $157,514
           
    Net securities (gains) losses$(194)$(23)$103 $(217)$103
    Merger and acquisition related expenses —  0  379  114  8,860
    Core pre-tax pre-provision income$50,949 $54,381 $55,652 $156,163 $166,477
           
    Net charge-offs$8,785 $4,402 $3,976 $17,489 $13,814

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