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

    المصدر: Nasdaq GlobeNewswire / 23 يوليو 2024 16:00:01   America/Chicago

    INDIANA, Pa., July 23, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the second quarter of 2024.

    Financial Summary

    (dollars in thousands,For the Three Months Ended For the Six Months Ended
    except per share data)June 30, March 31, June 30, June 30, June 30,
      2024   2024   2023   2024   2023 
    Reported Results         
    Net income$37,088  $37,549  $42,781  $74,637  $73,005 
    Diluted earnings per share$0.36  $0.37  $0.42  $0.73  $0.72 
    Return on average assets 1.28%  1.31%  1.54%  1.29%  1.36%
    Return on average equity 11.10%  11.40%  13.90%  11.24%  12.29%
              
    Operating Results (non-GAAP)(1)         
    Core net income$37,070  $37,639  $42,734  $74,709  $88,121 
    Core diluted earnings per share$0.36  $0.37  $0.42  $0.73  $0.87 
    Core pre-tax pre-provision net revenue$54,381  $50,833  $56,344  $105,214  $110,825 
    Provision expense$7,827  $4,238  $2,790  $12,065  $140 
    Provision for credit losses - acquisition day 1 non-PCD —   —   —   —   10,653 
    Net charge-offs$4,402  $4,302  $8,665  $8,704  $9,838 
    Reserve build/(release)(2)$4,556  $1,380  $(339) $5,936  $30,640 
    Core return on average assets (ROAA) 1.27%  1.31%  1.54%  1.29%  1.64%
    Core pre-tax pre-provision ROAA 1.87%  1.77%  2.03%  1.82%  2.06%
    Return on average tangible common equity 15.94%  16.51%  20.68%  16.22%  18.30%
    Core return on average tangible common equity 15.93%  16.54%  20.66%  16.24%  21.99%
    Core efficiency ratio 53.63%  55.05%  52.80%  54.33%  52.61%
    Net interest margin (FTE) 3.57%  3.52%  3.85%  3.55%  3.93%

    (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.

    Second Quarter 2024 Highlights

    • GAAP Net income of $37.1 million and diluted earnings per share of $0.36 represented a decrease of $0.5 million, or $0.01 per share, from the prior quarter and a decrease of $5.7 million, or $0.06 per share, from the second quarter of 2023
      • Core pre-tax pre-provision net revenue (PPNR)(1) totaled $54.4 million, an increase of $3.5 million from the previous quarter but a decrease of $2.0 million from the second quarter of 2023
    • Net interest income (FTE) of $95.3 million increased $2.7 million from the previous quarter but decreased $2.8 million from the second quarter of 2023
    • Noninterest income (excluding securities gains and losses) of $25.2 million increased $1.2 million from the previous quarter and $0.7 from the second quarter of 2023 due in part to higher wealth management sales and card related interchange income
    • Noninterest expense (excluding loss on early redemption of subordinated debt and merger-related expense) of $65.4 million which was unchanged from the previous quarter
    • Average deposits increased $199.9 million, or 8.7% annualized, compared to the prior quarter
      • End of period deposits decreased $37.5 million, or 1.6% annualized, compared to the prior quarter
    • Total loans increased $13.9 million, or 0.6% annualized, from the previous quarter, driven by $36.8 million of growth in equipment finance loans
    • The loan-to-deposit ratio increased to 96.1% at the end of the second quarter of 2024 as compared to 95.6% in the previous quarter
    • Total shareholder’s equity increased $29.8 million from the previous quarter due to a $23.8 million increase in retained earnings and a $5.7 million improvement in accumulated other comprehensive income (AOCI) due in part to the sale of $75.1 million in available for sale investment securities
      • Tangible book value per share increased $0.30, or 13.0% annualized, from the previous quarter
      • AOCI as a percentage of tangible common equity was 11.6% in the second quarter of 2024 as compared to 12.6% in the previous quarter
    • First Commonwealth Bank (the Bank) has been recognized for the sixth consecutive year by Forbes as one of the World’s Best Banks for 2024

    Profitability

    • The core efficiency ratio(1) of 53.6% improved 142 basis points from the previous quarter
    • The return on average assets (ROA) decreased 3 basis points to 1.28% compared to previous quarter
      • The core return on average assets(1) decreased 4 basis points to 1.27% compared to the previous quarter
    • Core pre-tax pre-provision ROA(1) for the quarter ended June 30, 2024 increased 10 basis points to 1.87% as compared to 1.77% in the prior quarter and 2.03% in the second quarter of 2023
    • The net interest margin of 3.57% increased 5 basis points compared to the prior quarter and decreased 28 basis points as compared to the second quarter of 2023
      • The recognition of deferred interest upon the payoff of a previously nonaccrual loan had a positive impact on the net interest margin of two basis points in the second quarter of 2024
      • The retention of approximately $200 million of additional cash on the Bank’s balance sheet had a negative impact on the net interest margin of six basis points in the second quarter of 2024 as compared to three basis points in the prior quarter
      • Purchasing accounting marks contributed eight basis points to the margin in the second quarter of 2024, unchanged from the prior quarter
    • On June 1, 2024, the Bank retired $50 million of variable rate subordinate corporate debentures with an interest rate of 7.45%. This transaction is expected to improve the net interest margin by approximately three basis points beginning in the third quarter of 2024.
    • During the second quarter of 2024, security gains and losses included a $5.6 million gain from the conversion of Visa Inc. class B shares.
    • During the second quarter of 2024, the Bank sold approximately $75 million of investment securities yielding 2.17% for a loss of $5.5 million and reinvested the proceeds into approximately $75 million of investments securities yielding 5.49%. This transaction is expected to improve the net interest margin by 2 basis points beginning in the third quarter of 2024.

    Asset quality

    • The provision for credit losses was $7.8 million, an increase of $3.6 million compared to the previous quarter
    • The allowance for credit losses as a percentage of end-of-period loans was 1.37%, an increase of five basis points from the previous quarter
    • Total criticized loans increased $29.8 million from the previous quarter
      • Total nonperforming loans of $57.1 million increased $14.7 million from the previous quarter, including $11.1 million of acquired loans that were transferred to nonaccrual status.
    • Net charge-offs on loans totaled $4.4 million, an increase of $0.1 million from the previous quarter
      • Net charge-offs as a percentage of average loans (annualized) was 0.20% in the second quarter of 2024 as compared to 0.19% in the previous quarter

    Strong capital and liquidity positions

    • On June 1, 2024, the Bank retired $50 million of variable rate subordinate corporate debentures that were included in Tier II regulatory capital. This action reduced the Bank’s Total Risk Based Capital by approximately 44 basis points; however, the actual Total Capital Ratio decreased by only eight basis points from the previous quarter due to strong organic capital generation
    • The Bank-level Total Capital ratio was 13.1% at June 30, 2024, which represents $292.4 million in excess capital above the regulatory “well capitalized” requirement of 10.0%
    • On April 23, 2024, the Board of Directors authorized a 4.0% increase in the quarterly cash dividend to shareholders
    • There were 22,961 shares repurchased during the second quarter of 2024 at a weighted average price of $12.48. The remaining capacity under the current program was $17.1 million as of June 30, 2024.

    “I’m excited to report that our second quarter results demonstrated the core earnings power of our community-focused regional banking model,” stated T. Michael Price, President and Chief Executive Officer. “It seems we may have turned the corner with NIM compression this quarter and we continue to see pockets of loan demand in our new markets in Pennsylvania and Ohio, while our legacy markets remain a rich source of core deposit growth.” Price continued, “As we move forward, we will continue to adapt to meet the evolving needs of our neighbors and their businesses and help them navigate their financial future.”

    Earnings

    GAAP Net income for the second quarter of 2024 was $37.1 million, or $0.36 per share, compared to $37.5 million, or $0.37 per share in the first quarter of 2024, and $42.8 million, or $0.42 per share for the second quarter of 2023.

    Net Interest Income and Net Interest Margin

    Net interest income (FTE) of $95.3 million increased $2.7 million from the previous quarter and decreased $2.8 million from the prior year quarter. The increase from the previous quarter was primarily due to a five basis point expansion in the net interest margin and a $152.7 million increase in interest earning assets.

    The net interest margin for the second quarter of 2024 was 3.57%, an increase of five basis points from the previous quarter and a decrease of 28 basis points from the second quarter of 2023. The increase from the previous quarter was due primarily to a 12 basis point increase in the yield on loans and an 18 basis point increase in the yield on securities, partially offset by a 10 basis point increase in the cost of deposits. The total cost of funds was 2.20% in the second quarter of 2024, which represents an increase of seven basis points from the previous quarter.

    Total average deposits grew $199.9 million in the second quarter of 2024 as compared to the previous quarter. Average time deposits grew $117.6 million and interest-bearing demand and savings deposits grew $74.4 million.

    Total average investment securities and interest bearing bank deposits grew $134.1 million and total average loans grew $18.6 million in the second quarter of 2024 as compared to the previous quarter.

    Asset Quality

    Provision expense in the second quarter of 2024 totaled $7.8 million as compared to $4.2 million in the previous quarter. The increase in the provision expense from the previous quarter was the result of a $5.8 million increase in reserves for individually analyzed loans primarily driven by a $14.7 million increase in nonperforming loans.

    The allowance for credit losses as a percentage of end-of-period loans in the second quarter of 2024 was 1.37% as compared to 1.32% in the previous quarter.

    At June 30, 2024, nonperforming loans totaled $57.1 million, an increase of $14.7 million from the previous quarter. The increase in nonperforming loans was primarily due to the migration of $11.1 million in loans acquired in the Centric acquisition into nonaccrual status.

    Nonperforming loans represented 0.63% of total loans for the period ended June 30, 2024 as compared to 0.47% and 0.54% for the periods ended March 31, 2024 and June 30, 2023, respectively.

    During the second quarter of 2024, net charge-offs were $4.4 million as compared to $4.3 million in the previous quarter and $8.7 million in the second quarter of 2023.

    Net charge-offs as a percentage of average loans (annualized) were 0.20%, 0.19% and 0.40% for the periods ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

    Noninterest Income and Noninterest Expense

    Noninterest income (excluding securities gains and losses) totaled $25.2 million for the second quarter of 2024, as compared to $24.0 million for the first quarter of 2024 and $24.5 million for the second quarter of 2023.

    The $1.2 million increase from the previous quarter was primarily due to a $0.6 million increase in wealth management services, a $0.4 million increase in card-related interchange income and a $0.3 million increase in gain on sale of mortgage loans, partially offset by a $0.6 million decrease in gain on sale of Small Business Administration (SBA) loans. 

    During the second quarter of 2024, security gains and losses included a $5.6 million gain from the conversion of Visa Inc. class B shares, of which $5.6 million was realized through shares held at fair value at quarter-end. This gain was offset by a loss of $5.5 million on the sale of $75.1 million in investment securities.

    Noninterest expense (excluding losses on the early redemption of subordinated debt and merger-related expense) of $65.4 million was unchanged from the previous quarter. Offsetting changes in comparison with the prior quarter were primarily due to a $0.5 million decrease in occupancy expense, a $0.5 million decrease in operational losses and a $0.4 million decrease in advertising and promotion expense, offset by a $2.0 million increase in salaries and benefits (primarily driven by a $1.0 million increase in hospitalization expense and a $1.2 million incentive accrual reversals in the prior quarter).

    The core efficiency ratio was 53.6% during the second quarter of 2024 as compared to 55.1% in the previous quarter and 52.8% in the second quarter of 2023.

    Full time equivalent staff was 1,472 at June 30, 2024, 1,465 at March 31, 2024, and 1,483 at June 30, 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 second quarter of 2023. The cash dividend is payable on August 16, 2024 to shareholders of record as of August 2, 2024. This dividend represents a 3.1% projected annual yield utilizing the July 22, 2024 closing market price of $16.62.

    First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at June 30, 2024 were 14.2%, 12.5%, 10.2% and 11.7%, 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 second quarter of 2024 on Wednesday, July 24, 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 Six Months Ended
     June 30, March 31, June 30, June 30, June 30,
      2024   2024   2023   2024   2023 
    SUMMARY RESULTS OF OPERATIONS         
    Net interest income$94,992  $92,304  $97,824  $187,296  $192,182 
    Provision for credit losses 7,827   4,238   2,790   12,065   140 
    Provision for credit losses — acquisition day 1 non-PCD —   —   —   —   10,653 
    Noninterest income 25,210   23,988   24,523   49,198   47,486 
    Noninterest expense 65,798   65,573   65,943   131,371   137,324 
    Net income 37,088   37,549   42,781   74,637   73,005 
    Core net income (5) 37,070   37,639   42,734   74,709   88,121 
    Earnings per common share (diluted)$0.36  $0.37  $0.42  $0.73  $0.72 
    Core earnings per common share (diluted) (6)$0.36  $0.37  $0.42  $0.73  $0.87 
    KEY FINANCIAL RATIOS         
    Return on average assets 1.28%  1.31%  1.54%  1.29%  1.36%
    Core return on average assets (7) 1.27%  1.31%  1.54%  1.29%  1.64%
    Return on average assets, pre-provision, pre-tax 1.87%  1.77%  2.03%  1.82%  1.91%
    Core return on average assets, pre-provision, pre-tax 1.87%  1.77%  2.03%  1.82%  2.06%
    Return on average shareholders' equity 11.10%  11.40%  13.90%  11.24%  12.29%
    Return on average tangible common equity (8) 15.94%  16.51%  20.68%  16.22%  18.30%
    Core return on average tangible common equity (9) 15.93%  16.54%  20.66%  16.24%  21.99%
    Core efficiency ratio (2)(10) 53.63%  55.05%  52.80%  54.33%  52.61%
    Net interest margin (FTE) (1) 3.57%  3.52%  3.85%  3.55%  3.93%
              
    Book value per common share$13.32  $13.03  $12.03     
    Tangible book value per common share (11) 9.56   9.26   8.24     
    Market value per common share 13.81   13.92   12.65     
    Cash dividends declared per common share 0.130   0.125   0.125   0.255   0.245 
    ASSET QUALITY RATIOS         
    Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 0.63%  0.47%  0.54%    
    Nonperforming assets as a percent of total assets (3) 0.51%  0.38%  0.44%    
    Net charge-offs as a percent of average loans and leases (annualized) (4) 0.20%  0.19%  0.40%    
    Allowance for credit losses as a percent of nonperforming loans and leases (4) 216.48%  280.59%  278.17%    
    Allowance for credit losses as a percent of end-of-period loans and leases (4) 1.37%  1.32%  1.52%    
    CAPITAL RATIOS         
    Shareholders' equity as a percent of total assets 11.7%  11.4%  10.9%    
    Tangible common equity as a percent of tangible assets (12) 8.7%  8.4%  7.7%    
    Leverage Ratio 10.2%  10.2%  9.8%    
    Risk Based Capital - Tier I 12.5%  12.2%  11.5%    
    Risk Based Capital - Total 14.2%  14.3%  13.7%    
    Common Equity - Tier I 11.7%  11.4%  10.8%    
                    


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)
     For the Three Months Ended For the Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
    INCOME STATEMENT      
    Interest income$150,682 $145,462 $131,267  $296,144 $245,856 
    Interest expense 55,690  53,158  33,443   108,848  53,674 
    Net Interest Income 94,992  92,304  97,824   187,296  192,182 
    Taxable equivalent adjustment (1) —  —  —   —  — 
    Net Interest Income 94,992  92,304  97,824   187,296  192,182 
    Provision for credit losses 7,827  4,238  2,790   12,065  140 
    Provision for credit losses - acquisition day 1 non-PCD —  —  —   —  10,653 
    Net Interest Income after Provision for Credit Losses 87,165  88,066  95,034   175,231  181,389 
    Net securities losses (5,535) —  —   (5,535) — 
    Gain on VISA exchange 5,558  —  —   5,558  — 
    Trust income 2,821  2,727  2,532   5,548  5,018 
    Service charges on deposit accounts 5,546  5,383  5,324   10,929  10,242 
    Insurance and retail brokerage commissions 2,709  2,246  2,314   4,955  4,866 
    Income from bank owned life insurance 1,371  1,294  1,195   2,665  2,422 
    Gain on sale of mortgage loans 1,671  1,328  1,253   2,999  1,905 
    Gain on sale of other loans and assets 1,408  2,051  1,891   3,459  3,977 
    Card-related interchange income 7,137  6,690  7,372   13,827  14,201 
    Derivative mark-to-market —  12  81   12  (8)
    Swap fee income —  —  332   —  577 
    Other income 2,524  2,257  2,229   4,781  4,286 
    Total Noninterest Income 25,210  23,988  24,523   49,198  47,486 
    Salaries and employee benefits 37,320  35,324  36,735   72,644  70,999 
    Net occupancy 4,822  5,334  4,784   10,156  9,802 
    Furniture and equipment 4,278  4,480  4,284   8,758  8,522 
    Data processing 3,840  3,824  3,763   7,664  7,167 
    Pennsylvania shares tax 1,126  1,202  1,173   2,328  2,425 
    Advertising and promotion 898  1,319  1,327   2,217  2,990 
    Intangible amortization 1,169  1,264  1,282   2,433  2,429 
    Other professional fees and services 1,286  1,242  1,182   2,528  2,773 
    FDIC insurance 1,286  1,613  1,277   2,899  2,694 
    Litigation and operational losses 494  997  894   1,491  1,637 
    Loss on sale or write-down of assets 77  143  6   220  47 
    Loss on early redemption of subordinated debt 369  —  —   369  — 
    Merger and acquisition —  114  (60)  114  8,481 
    Other operating expenses 8,833  8,717  9,296   17,550  17,358 
    Total Noninterest Expense 65,798  65,573  65,943   131,371  137,324 
    Income before Income Taxes 46,577  46,481  53,614   93,058  91,551 
    Income tax provision 9,489  8,932  10,833   18,421  18,546 
    Net Income$37,088 $37,549 $42,781  $74,637 $73,005 
           
    Shares Outstanding at End of Period 102,297,847  102,303,974  102,444,915   102,297,847  102,444,915 
    Average Shares Outstanding Assuming Dilution 102,287,598  102,198,899  102,760,266   102,238,489  101,281,899 
           
    (8) - Does not include accelerated depreciation expense described in Note 7.
     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
          
     June 30, March 31, June 30,
      2024   2024   2023 
    BALANCE SHEET (Period End)     
    Assets     
    Cash and due from banks$109,907  $77,179  $123,095 
    Interest-bearing bank deposits 78,386   233,188   325,774 
    Securities available for sale, at fair value 1,101,154   1,049,108   784,503 
    Securities held to maturity, at amortized cost 453,820   464,708   439,922 
    Loans held for sale 50,769   31,895   16,300 
          
    Loans and leases 8,994,890   8,999,870   8,799,836 
    Allowance for credit losses (123,654)  (119,098)  (133,546)
    Net loans and leases 8,871,236   8,880,772   8,666,290 
          
    Goodwill and other intangibles 384,854   385,745   388,451 
    Other assets 576,747   571,813   574,269 
    Total Assets$11,626,873  $11,694,408  $11,318,604 
          
    Liabilities and Shareholders' Equity     
    Noninterest-bearing demand deposits$2,304,830  $2,334,495  $2,624,344 
          
    Interest-bearing demand deposits 619,877   637,908   611,156 
    Savings deposits 4,955,718   4,999,822   4,935,124 
    Time deposits 1,528,496   1,474,178   975,654 
    Total interest-bearing deposits 7,104,091   7,111,908   6,521,934 
          
    Total deposits 9,408,921   9,446,403   9,146,278 
          
    Short-term borrowings 537,613   546,541   542,839 
    Long-term borrowings 136,581   186,490   187,276 
    Total borrowings 674,194   733,031   730,115 
          
    Other liabilities 181,253   182,254   209,792 
    Shareholders' equity 1,362,505   1,332,720   1,232,419 
    Total Liabilities and Shareholders' Equity$11,626,873  $11,694,408  $11,318,604 
                


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     
     For the Three Months Ended For the Six Months Ended
     June 30,Yield/March 31,Yield/June 30,Yield/ June 30,Yield/June 30,Yield/
     2024Rate2024Rate2023Rate 2024Rate2023Rate
    NET INTEREST MARGIN          
                
    Assets           
    Loans and leases (FTE)(1)(3)$9,017,2886.06%$8,998,6495.95%$8,689,0215.58% $9,007,9696.01%$8,496,3055.43%
    Securities and interest-bearing bank deposits (FTE) (1) 1,718,7693.52% 1,584,6733.23% 1,535,1362.77%  1,651,7203.38% 1,408,0142.51%
    Total Interest-Earning Assets (FTE) (1) 10,736,0575.66% 10,583,3225.54% 10,224,1575.16%  10,659,6895.60% 9,904,3195.02%
    Noninterest-earning assets 959,103  938,121  932,756   948,612  920,437 
    Total Assets$11,695,160 $11,521,443 $11,156,913  $11,608,301 $10,824,756 
                
    Liabilities and Shareholders' Equity           
    Interest-bearing demand and savings deposits$5,629,0282.20%$5,554,6562.11%$5,595,3361.35% $5,591,8412.16%$5,454,4941.13%
    Time deposits 1,504,5444.35% 1,386,9594.21% 930,4473.03%  1,445,7524.28% 806,9812.74%
    Short-term borrowings 545,5514.67% 595,8844.57% 434,7834.79%  570,7174.62% 351,3214.36%
    Long-term borrowings 170,9635.52% 186,5975.76% 187,3795.03%  178,7805.65% 186,3785.04%
    Total Interest-Bearing Liabilities 7,850,0862.85% 7,724,0962.77% 7,147,9451.88%  7,787,0902.81% 6,799,1741.59%
    Noninterest-bearing deposits 2,310,274  2,302,338  2,580,842   2,306,306  2,629,575 
    Other liabilities 190,440  169,683  193,292   180,062  197,860 
    Shareholders' equity 1,344,360  1,325,326  1,234,834   1,334,843  1,198,147 
    Total Noninterest-Bearing Funding Sources 3,845,074  3,797,347  4,008,968   3,821,211  4,025,582 
    Total Liabilities and Shareholders' Equity$11,695,160 $11,521,443 $11,156,913  $11,608,301 $10,824,756 
                
    Net Interest Margin (FTE) (annualized)(1) 3.57% 3.52% 3.85%  3.55% 3.93%
                     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     June 30,March 31,June 30,
      2024  2024  2023 
    Loan and Lease Portfolio Detail   
    Commercial Loan and Lease Portfolio:   
    Commercial, financial, agricultural and other$1,312,816 $1,313,898 $1,347,842 
    Commercial real estate 3,077,013  3,090,950  3,004,962 
    Equipment Finance loans and leases 316,700  279,938  154,152 
    Real estate construction 523,595  520,320  474,720 
    Total Commercial 5,230,124  5,205,106  4,981,676 
        
    Consumer Loan Portfolio:   
    Closed-end mortgages 1,902,173  1,913,479  1,858,660 
    Home equity lines of credit 492,133  488,793  505,449 
    Real estate construction 24,460  39,047  100,079 
    Total Real Estate - Consumer 2,418,766  2,441,319  2,464,188 
        
    Auto & RV loans 1,270,044  1,277,212  1,272,557 
    Direct installment 26,807  26,731  28,881 
    Personal lines of credit 46,932  46,733  49,168 
    Student loans 2,217  2,769  3,366 
    Total Other Consumer 1,346,000  1,353,445  1,353,972 
    Total Consumer Portfolio 3,764,766  3,794,764  3,818,160 
    Total Portfolio Loans and Leases 8,994,890  8,999,870  8,799,836 
    Loans held for sale 50,769  31,895  16,300 
    Total Loans and Leases$9,045,659 $9,031,765 $8,816,136 
        
        
     June 30,March 31,June 30,
      2024  2024  2023 
    ASSET QUALITY DETAIL   
    Nonperforming Loans and Leases:   
    Loans and leases on nonaccrual basis$31,443 $27,649 $29,322 
    Loans on nonaccrual basis - Centric acquisition 25,676  14,797  18,687 
    Total Nonperforming Loans and Leases$57,119 $42,446 $48,009 
    Other real estate owned ("OREO") 484  368  324 
    Repossessions ("Repos") 1,456  1,442  1,004 
    Total Nonperforming Assets$59,059 $44,256 $49,337 
    Loans past due in excess of 90 days and still accruing 1,753  1,699  2,474 
    Classified loans and leases 103,111  89,284  76,419 
    Criticized loans and leases 241,611  211,857  207,071 
        
    Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4) 0.66% 0.49% 0.56%
    Allowance for credit losses$123,654 $119,098 $133,546 
     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     
     For the Three Months Ended For the Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
    Net Charge-offs (Recoveries):      
    Commercial, financial, agricultural and other$2,485 $2,242 $6,582  $4,727 $7,086 
    Real estate construction 35  (6) —   29  — 
    Commercial real estate 331  169  1,423   500  1,381 
    Residential real estate 64  21  (32)  85  9 
    Loans to individuals 1,487  1,876  692   3,363  1,362 
    Net Charge-offs$4,402 $4,302 $8,665  $8,704 $9,838 
           
    Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4) 0.20% 0.19% 0.40%  0.19% 0.23%
    Provision for credit losses as a percentage of net charge-offs 177.81% 98.51% 32.20%  138.61% 1.42%
    Provision for credit losses$7,827 $4,238 $2,790  $12,065 $140 
                     


    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 Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
           
    Interest income$150,682 $145,462 $131,267  $296,144 $245,856 
    Adjustment to fully taxable equivalent basis (1) 329  323  305   652  610 
    Interest income adjusted to fully taxable equivalent basis (non-GAAP) 151,011  145,785  131,572   296,796  246,466 
    Interest expense 55,690  53,158  33,443   108,848  53,674 
    Net interest income, (FTE) (1)$95,321 $92,627 $98,129  $187,948 $192,792 
                     


    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 Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
           
    Net Income$37,088 $37,549 $42,781  $74,637 $73,005 
    Intangible amortization 1,169  1,264  1,282   2,433  2,429 
    Tax benefit of amortization of intangibles (245) (265) (269)  (511) (510)
    Net Income, adjusted for tax affected amortization of intangibles$38,012 $38,548 $43,794  $76,559 $74,924 
           
    Average Tangible Equity:      
    Total shareholders' equity$1,344,360 $1,325,326 $1,234,834  $1,334,843 $1,198,147 
    Less: intangible assets 385,332  386,040  385,567   385,686  372,571 
    Tangible Equity 959,028  939,286  849,267   949,157  825,576 
    Less: preferred stock —  —  —   —  — 
    Tangible Common Equity$959,028 $939,286 $849,267  $949,157 $825,576 
           
    (8)Return on Average Tangible Common Equity 15.94% 16.51% 20.68%  16.22% 18.30%


     For the Three Months Ended For the Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
           
    Core Net Income:      
    Total Net Income$37,088 $37,549 $42,781  $74,637 $73,005 
    Net securities losses (23) —  —   (23) — 
    Tax benefit of net securities gains 5  —  —   5  — 
    Merger and acquisition related expenses —  114  (60)  114  8,481 
    Tax benefit of merger and acquisition related expenses —  (24) 13   (24) (1,781)
    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$37,070 $37,639 $42,734  $74,709 $88,121 
    Average Shares Outstanding Assuming Dilution 102,287,598  102,198,899  102,760,266   102,238,489  101,281,899 
    (6) Core Earnings per common share (diluted)$0.36 $0.37 $0.42  $0.73 $0.87 
           
    Intangible amortization 1,169  1,264  1,282   2,433  2,429 
    Tax benefit of amortization of intangibles (245) (265) (269)  (511) (510)
    Core Net Income, adjusted for tax affected amortization of intangibles$37,994 $38,638 $43,747  $76,631 $90,040 
           
    (9) Core Return on Average Tangible Common Equity 15.93% 16.54% 20.66%  16.24% 21.99%
                     


    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 Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
    Core Return on Average Assets:      
    Total Net Income$37,088 $37,549 $42,781  $74,637 $73,005 
    Total Average Assets 11,695,160  11,521,443  11,156,913   11,608,301  10,824,756 
    Return on Average Assets 1.28% 1.31% 1.54%  1.29% 1.36%
           
    Core Net Income (5)$37,070 $37,639 $42,734  $74,709 $88,121 
    Total Average Assets 11,695,160  11,521,443  11,156,913   11,608,301  10,824,756 
    (7) Core Return on Average Assets 1.27% 1.31% 1.54%  1.29% 1.64%


     For the Three Months Ended For the Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
    Core Efficiency Ratio:      
    Total Noninterest Expense$65,798 $65,573 $65,943  $131,371 $137,324 
    Adjustments to Noninterest Expense:      
    Intangible amortization 1,169  1,264  1,282   2,433  2,429 
    Merger and acquisition related —  114  (60)  114  8,481 
    Noninterest Expense - Core$64,629 $64,195 $64,721  $128,824 $126,414 
           
    Net interest income, (FTE)$95,321 $92,627 $98,129  $187,948 $192,792 
    Total noninterest income 25,210  23,988  24,523   49,198  47,486 
    Net securities gains (23) —  —   (23) — 
    Total Revenue 120,508  116,615  122,652   237,123  240,278 
           
    Adjustments to Revenue:      
    Derivative mark-to-market —  12  81   12  (8)
    Total Revenue - Core$120,508 $116,603 $122,571  $237,111 $240,286 
           
    (10)Core Efficiency Ratio 53.63% 55.05% 52.80%  54.33% 52.61%
                     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     
    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES  
        
     June 30,March 31,June 30,
      2024  2024  2023 
    Tangible Equity:   
    Total shareholders' equity$1,362,505 $1,332,720 $1,232,419 
    Less: intangible assets 384,854  385,745  388,451 
    Tangible Equity 977,651  946,975  843,968 
    Less: preferred stock —  —  — 
    Tangible Common Equity$977,651 $946,975 $843,968 
        
    Tangible Assets:   
    Total assets$11,626,873 $11,694,408 $11,318,604 
    Less: intangible assets 384,854  385,745  388,451 
    Tangible Assets$11,242,019 $11,308,663 $10,930,153 
        
    (12)Tangible Common Equity as a percentage of Tangible Assets 8.70% 8.37% 7.72%
        
    Shares Outstanding at End of Period 102,297,847  102,303,974  102,444,915 
    (11)Tangible Book Value Per Common Share$9.56 $9.26 $8.24 


     For the Three Months Ended For the Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
      2024  2024  2023   2024  2023 
    Pre-tax pre-provision income:      
    Net interest income$94,992 $92,304 $97,824  $187,296 $192,182 
    Noninterest income 25,210  23,988  24,523   49,198  47,486 
    Noninterest expense 65,798  65,573  65,943   131,371  137,324 
    Pre-tax pre-provision income$54,404 $50,719 $56,404  $105,123 $102,344 
           
    Net securities losses$(23)$— $—  $(23)$— 
    Merger and acquisition related expenses —  114  (60)  114  8,481 
    Core pre-tax pre-provision income$54,381 $50,833 $56,344  $105,214 $110,825 
           
    Net charge-offs$4,402 $4,302 $8,665  $8,704 $9,838 
                     

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