• First Commonwealth Announces Fourth Quarter and Full Year 2023 Earnings; Declares Quarterly Dividend

    Source: Nasdaq GlobeNewswire / 30 Jan 2024 17:00:01   America/New_York

    INDIANA, Pa., Jan. 30, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the fourth quarter and full year of 2023.

    Financial Summary

    (dollars in thousands,For the Three Months Ended For the Years Ended
    except per share data)December 31, September 30, December 31, December 31, December 31,
      2023   2023   2022   2023   2022 
    Reported Results         
    Net income$44,827  $39,231  $35,733  $157,063  $128,181 
    Diluted earnings per share$0.44  $0.38  $0.38  $1.54  $1.37 
    Return on average assets 1.56%  1.38%  1.47%  1.42%  1.34%
    Return on average equity 14.11%  12.46%  13.61%  12.80%  11.99%
              
    Operating Results (non-GAAP)(1)         
    Core net income$44,964  $39,611  $36,750  $172,697  $129,561 
    Core diluted earnings per share$0.44  $0.39  $0.39  $1.70  $1.38 
    Core pre-tax pre-provision net revenue$55,028  $55,652  $55,289  $221,505  $183,038 
    Provision expense$(1,865) $5,885  $9,120  $14,813  $21,106 
    Net charge-offs$16,338  $3,976  $2,014  $30,152  $7,137 
    Reserve build/(release)(2)$(16,619) $791  $6,813  $14,812  $10,384 
    Core return on average assets (ROAA) 1.56%  1.39%  1.51%  1.56%  1.35%
    Core pre-tax pre-provision ROAA 1.91%  1.95%  2.28%  2.00%  1.91%
    Return on average tangible common equity 20.78%  18.55%  19.77%  19.01%  17.30%
    Core return on average tangible common equity 20.85%  18.73%  20.32%  20.86%  17.49%
    Core efficiency ratio 53.00%  53.42%  50.00%  52.91%  54.59%
    Net interest margin (FTE) 3.65%  3.76%  3.99%  3.81%  3.58%

    (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 can 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 2023 Highlights

    • Record net income of $44.8 million and record diluted earnings per share of $0.44 represent an increase of $5.6 million, or $0.06 per share from the previous quarter and an increase of $9.1 million, or $0.06 per share from the fourth quarter of 2022
    • Core pre-tax pre-provision net revenue (PPNR)(1) totaled $55.0 million, a decrease of $0.6 million from the previous quarter and a decrease of $0.3 million from the fourth quarter of 2022
    • Total loans increased $63.7 million, or 2.8% annualized, from the previous quarter, driven by growth in the Equipment Finance and Commercial Construction portfolios
      • Average loans increased $89.9 million, or 4.0% annualized, from the previous quarter
    • Average deposits increased $37.3 million, or 1.6% annualized, compared to the prior quarter
    • Net interest income (FTE) of $96.1 million decreased $2.0 million from the previous quarter but increased $7.7 million from the fourth quarter of 2022
    • Noninterest income (excluding $0.1 million losses on investment securities in 3Q 2023) of $24.3 million decreased $0.6 million from the previous quarter
    • Noninterest expense (excluding $0.2 million and $0.4 million of merger related expenses in 4Q 2023 and 3Q 2023, respectively) of $65.0 million decreased $2.0 million from the previous quarter
    • Total shareholders’ equity increased $73.7 million from the previous quarter due to a $42.3 million decrease in unrealized losses on available-for-sale (AFS) securities and interest rate swaps, and a $32.1 million increase in retained earnings
    • Tangible book value per share grew 8.9% (not annualized) compared to the prior quarter to $9.09

    Profitability

    • Core return on average assets (ROAA) improved seventeen basis points to 1.56% compared to the previous quarter
    • Core pre-tax pre-provision ROAA(1) for the quarter ended December 31, 2023 was 1.91% as compared to 1.95% in the prior quarter and 2.28% in the fourth quarter of 2022
    • The net interest margin of 3.65% decreased 11 basis points from the prior quarter but increased 34 basis points from the fourth quarter of 2022
    • The core efficiency ratio(1) of 53.00% decreased 42 basis points from the previous quarter but increased 301 basis points from the fourth quarter of 2022

    Strong capital position

    • Bank-level Common Equity Tier 1 Capital (CET1) ratio of 11.0%, which represents $420.2 million in excess capital above the regulatory “well capitalized” requirement of 6.5%
    • A total of 73,184 shares at a weighted average price of $11.75 were repurchased during the fourth quarter of 2023 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was $17.4 million as of December 31, 2023

    Asset quality

    • The provision for credit losses was ($1.9) million, a decrease of $7.8 million compared to the previous quarter
    • The allowance for credit losses as a percentage of end-of-period loans was 1.31%, as compared to 1.51% in the previous quarter
    • Total nonperforming loans decreased $8.5 million from the previous quarter
    • Net charge-offs on loans totaled $16.3 million, an increase of $12.4 million from the previous quarter
      • Approximately $12.0 million of the quarterly net charge-offs were loans specifically reserved for in previous quarters
      • Net charge-offs as a percentage of average loans outstanding was 0.72% in the fourth quarter of 2023 as compared to 0.18% in the previous quarter

    Full Year 2023 Highlights

    Franchise Growth

    • On January 31, 2023, the company completed its planned expansion into Central and Eastern Pennsylvania with the acquisition of Centric Financial Corporation (Centric)
    • Total loans grew $421.0 million, or 5.5% compared to the prior year (excluding $923.6 million of loans acquired in the Centric acquisition at close)
    • Average deposits grew $308.8 million, or 3.8% compared to the prior year (excluding $692.7 million of average annualized deposits acquired in the Centric acquisition at close)
      • End of period deposits grew $429.8 million, or 5.4% compared to the prior year (excluding $757.0 million of deposits acquired in the Centric acquisition)

    Earnings

    • Record $157.1 million net income and $1.54 diluted earnings per share
      • Core net income(1) was $172.7 million, or $1.70 diluted earnings per share, compared to $129.6 million, or $1.38 diluted earnings per share in the prior year
    • Core pre-tax pre-provision income(1) grew $38.5 million, or 21.0% from the prior year
    • Operating leverage was positive for the year ended December 31, 2023
      • Core revenue(1) grew $71.5 million, or 17.4%, from the prior year
      • Core noninterest expense(1) increased $31.2 million, or 13.9%, from the prior year

    Profitability

    • The core efficiency ratio(1) improved 167 basis points to 52.91% compared to the prior year
    • The return on average assets (ROAA) for the year ended December 31, 2023 was 1.42%
      • Core ROAA(1) for the year ended December 31, 2023 was 1.56% as compared to 1.35% in the prior year
      • Core pre-tax pre-provision ROAA(1) for the year ended December 31, 2023 was 2.00% as compared to 1.91% in the prior year

    “I am proud of the progress we made as a company in 2023. We overcame a very challenging deposit gathering environment, expanded our retail franchise in Central PA and grew within our existing geographies to produce record core earnings per share of $1.70 with a core pre-tax, pre-provision ROAA of 2.00%,” stated T. Michael Price, President and CEO. “While the economic outlook remains uncertain going into 2024, we will remain focused on building on this positive momentum and continuing to live out our mission to improve the financial lives of our neighbors and their businesses.”

    Earnings

    Net income for the fourth quarter of 2023 was $44.8 million, or $0.44 per share, compared to $39.2 million, or $0.38 per share in the third quarter of 2023 and $35.7 million, or $0.38 per share for the fourth quarter of 2022.

    Net income for the year ended December 31, 2023 was $157.1 million, or $1.54 per share, compared to $128.2 million, or $1.37 per share for the same period in 2022.

    Net Interest Income and Net Interest Margin

    Net interest income (FTE) of $96.1 million decreased $2.0 million from the previous quarter and increased $7.7 million from the prior year quarter. The increase from the previous quarter was primarily due to an 11 basis point decrease in the net interest margin, partially offset by a $90.8 million increase in average interest-earning assets.

    The net interest margin for the fourth quarter of 2023 was 3.65%, a decrease of 11 basis points from the previous quarter and a decrease of 34 basis points from the fourth quarter of 2022. The total cost of deposits increased 23 basis points due to a $285.8 million increase in higher cost money market and time deposits and a decrease of $248.6 million in demand deposit and savings accounts, partially offset by a 10 basis point increase in loan yields due to higher replacement yields on new loan volume and a $89.9 million increase in average loans.

    Total average deposits increased $37.3 million, or 1.6% annualized in the fourth quarter of 2023 as compared to the previous quarter. Total end-of-period deposits decreased $48.8 million, or 2.1% annualized, from the previous quarter primarily due to a seasonal decline in public funds.

    Asset Quality

    Provision for credit losses totaled ($1.9) million in the fourth quarter of 2023 as compared to $5.9 million in the previous quarter. The decrease in provision expense during the quarter was primarily driven by lower unfunded commitments and improved qualitative factors, including in the company’s high risk portfolio.

    Nonperforming loans totaled $39.5 million, a decrease of $8.5 million from the previous quarter and an increase of $4.0 million from the fourth quarter of 2022. Nonperforming loans represented 0.44% of total loans as compared to 0.54% and 0.46% for the periods ended September 30, 2023 and December 31, 2022, respectively.

    At December 31, 2023, criticized loans totaled $210.2 million, an increase of $17.0 million from the previous quarter.

    During the fourth quarter of 2023, net charge-offs were $16.3 million as compared to net charge-offs of $4.0 million in the previous quarter and $2.0 million in the fourth quarter of 2022. The increase from the prior quarter was driven by $8.2 million acquired loans with a combined specific reserve of $6.0 million and $4.3 million for a commercial real estate credit which was reserved for in prior periods.

    Net charge-offs (annualized) as a percentage of average loans were 0.72%, 0.18% and 0.11% for the periods ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively.

    Noninterest Income and Noninterest Expense

    Noninterest income (excluding gains and losses on investment securities) totaled $24.3 million for the fourth quarter of 2023, as compared to $24.9 million for the third quarter of 2023 and $24.3 million for the fourth quarter of 2022. The $0.6 million decrease from the previous quarter was primarily due to a $0.5 million decrease in gain on sale of Mortgage loans and a $0.4 million decrease in Trust income, partially offset by a $0.6 million increase in gain on sale of Small Business Administration (SBA) loans.

    For the year ended December 31, 2023, noninterest income (excluding gains and losses on investment securities) totaled $96.7 million, a decrease of $2.0 million from the prior year. The decrease from the prior year was primarily due to a $3.2 million decrease in commercial swap fee income and a $1.3 million decrease in gain on sale of mortgage loans, partially offset by a $1.8 million increase in service charges on deposit accounts and a $1.0 million increase in card related interchange income.

    There were $0.1 million of net security losses in 2023 and no material gains or losses in the prior year.

    Noninterest expense (excluding merger related expenses) totaled $65.0 million for the fourth quarter of 2023, as compared to $67.0 million for the third quarter of 2023 and $57.1 million for the fourth quarter of 2022. The $2.0 million decrease from the previous quarter was primarily the result of a $1.2 million decrease in accrued Pennsylvania shares tax obligations and a $0.6 million decrease in advertising and promotion expenses, partially offset by a $0.6 million increase in salaries and benefits.

    The core efficiency ratio was 53.00% during the fourth quarter of 2023 as compared to 53.42% in the previous quarter and 50.00% in the fourth quarter of 2022.

    For the year ended December 31, 2023, noninterest expense (excluding merger related expenses) totaled $260.9 million, as compared to $227.9 million in the prior year. The $32.9 million increase from the prior year was primarily driven by higher operating expenses following the company’s acquisition of Centric on January 31, 2023.

    The core efficiency ratio was 52.91% for the year ended December 31, 2023 as compared to 54.59% in the previous year.

    Full time equivalent staff was 1,475 at December 31, 2023, 1,481 at September 30, 2023, and 1,424 at December 31, 2022.

    Dividends and Capital

    First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.125 per share, which represents a 4.2% increase from the fourth quarter of 2022. The cash dividend is payable on February 23, 2024 to shareholders of record as of February 9, 2024. This dividend represents a 3.3% projected annual yield utilizing the January 29, 2024 closing market price of $15.05.

    First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at December 31, 2023 were 13.9%, 11.9%, 10.0% and 11.2%, 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 2023 on Wednesday, January 31, 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 126 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 Years Ended
     December 31, September 30, December 31, December 31, December 31,
      2023   2023   2022   2023   2022 
    SUMMARY RESULTS OF OPERATIONS         
    Net interest income$95,737  $97,757  $88,027  $385,676  $312,221 
    Provision for credit losses (1,865)  5,885   9,120   4,160   21,106 
    Provision for credit losses — acquisition day 1 non-PCD —   —   —   10,653   — 
    Noninterest income 24,297   24,826   24,309   96,609   98,708 
    Noninterest expense 65,180   67,413   58,334   269,917   229,638 
    Net income 44,827   39,231   35,733   157,063   128,181 
    Core net income(5) 44,964   39,611   36,750   172,697   129,561 
    Earnings per common share (diluted)$0.44  $0.38  $0.38  $1.54  $1.37 
    Core earnings per common share (diluted)(6)$0.44  $0.39  $0.39  $1.70  $1.38 
    KEY FINANCIAL RATIOS         
    Return on average assets 1.56%  1.38%  1.47%  1.42%  1.34%
    Core return on average assets(7) 1.56%  1.39%  1.51%  1.56%  1.35%
    Return on average assets, pre-provision, pre-tax 1.91%  1.94%  2.22%  1.91%  1.89%
    Core return on average assets, pre-provision, pre-tax 1.91%  1.95%  2.28%  2.00%  1.91%
    Return on average shareholders' equity 14.11%  12.46%  13.61%  12.80%  11.99%
    Return on average tangible common equity(8) 20.78%  18.55%  19.77%  19.01%  17.30%
    Core return on average tangible common equity(9) 20.85%  18.73%  20.32%  20.86%  17.49%
    Core efficiency ratio(2)(10) 53.00%  53.42%  50.00%  52.91%  54.59%
    Net interest margin (FTE)(1) 3.65%  3.76%  3.99%  3.81%  3.58%
              
    Book value per common share$12.87  $12.14  $11.27     
    Tangible book value per common share(11) 9.09   8.35   7.92     
    Market value per common share 15.44   12.21   13.97     
    Cash dividends declared per common share 0.125   0.125   0.120   0.495   0.475 
    ASSET QUALITY RATIOS         
    Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 0.44%  0.54%  0.46%    
    Nonperforming assets as a percent of total assets(3) 0.36%  0.43%  0.37%    
    Net charge-offs as a percent of average loans and leases (annualized)(4) 0.72%  0.18%  0.11%    
    Allowance for credit losses as a percent of nonperforming loans and leases(4) 298.23%  280.31%  289.98%    
    Allowance for credit losses as a percent of end-of-period loans and leases(4) 1.31%  1.51%  1.35%    
    CAPITAL RATIOS         
    Shareholders' equity as a percent of total assets 11.5%  10.9%  10.7%    
    Tangible common equity as a percent of tangible assets(12) 8.4%  7.7%  7.8%    
    Leverage Ratio 10.0%  9.9%  10.2%    
    Risk Based Capital - Tier I 11.9%  11.6%  12.0%    
    Risk Based Capital - Total 13.9%  13.8%  14.4%    
    Common Equity - Tier I 11.2%  10.9%  11.1%    


    FIRST COMMONWEALTH FINANCIAL CORPORATION    
    CONSOLIDATED FINANCIAL DATA      
    Unaudited      
    (dollars in thousands, except per share data)      
     For the Three Months Ended For the Years Ended
     December 31,September 30,December 31, December 31,December 31,
      2023  2023  2022   2023  2022
    INCOME STATEMENT      
    Interest income$144,257 $139,885 $96,281  $529,998 $329,953
    Interest expense 48,520  42,128  8,254   144,322  17,732
    Net Interest Income 95,737  97,757  88,027   385,676  312,221
    Provision for credit losses (1,865) 5,885  9,120   4,160  21,106
    Provision for credit losses - acquisition day 1 non-PCD —  —  —   10,653  —
    Net Interest Income after Provision for Credit Losses 97,602  91,872  78,907   370,863  291,115
    Net securities gains —  (103) —   (103) 2
    Trust income 2,549  2,949  2,455   10,516  10,518
    Service charges on deposit accounts 5,595  5,600  4,946   21,437  19,641
    Insurance and retail brokerage commissions 2,457  2,305  2,051   9,628  8,857
    Income from bank owned life insurance 1,211  1,242  1,149   4,875  5,459
    Gain on sale of mortgage loans 776  1,270  948   3,951  5,276
    Gain on sale of other loans and assets 1,740  1,027  1,525   6,744  6,036
    Card-related interchange income 7,218  7,221  6,996   28,640  27,603
    Derivative mark-to-market (13) 35  (27)  14  368
    Swap fee income 490  452  752   1,519  4,685
    Other income 2,274  2,828  3,514   9,388  10,263
    Total Noninterest Income 24,297  24,826  24,309   96,609  98,708
    Salaries and employee benefits 36,232  35,640  31,664   142,871  126,031
    Net occupancy 4,637  4,782  4,451   19,221  18,037
    Furniture and equipment 4,372  4,414  3,990   17,308  15,582
    Data processing 3,986  3,857  3,543   15,010  13,922
    Pennsylvania shares tax 351  1,588  960   4,364  4,447
    Advertising and promotion 1,061  1,662  1,093   5,713  5,031
    Intangible amortization 1,210  1,344  726   4,983  3,196
    Other professional fees and services 1,543  1,603  1,272   5,919  4,894
    FDIC insurance 1,646  1,920  675   6,260  2,871
    Litigation and operational losses 1,378  1,626  847   4,641  2,834
    Loss on sale or write-down of assets 107  50  128   204  343
    Merger and acquisition 174  379  1,254   9,034  1,702
    Other operating expenses 8,483  8,548  7,731   34,389  30,748
    Total Noninterest Expense 65,180  67,413  58,334   269,917  229,638
    Income before Income Taxes 56,719  49,285  44,882   197,555  160,185
    Income tax provision 11,892  10,054  9,149   40,492  32,004
    Net Income$44,827 $39,231 $35,733  $157,063 $128,181
           
    Shares Outstanding at End of Period 102,114,664  102,184,652  93,376,314   102,114,664  93,376,314
    Average Shares Outstanding Assuming Dilution 102,264,768  102,442,878  93,489,398   101,822,201  93,887,447
           


    FIRST COMMONWEALTH FINANCIAL CORPORATION   
    CONSOLIDATED FINANCIAL DATA     
    Unaudited     
    (dollars in thousands)     
          
     December 31, September 30, December 31,
      2023   2023   2022 
    BALANCE SHEET (Period End)     
    Assets     
    Cash and due from banks$125,436  $122,982  $124,254 
    Interest-bearing bank deposits 21,557   214,088   29,990 
    Securities available for sale, at fair value 1,071,857   866,582   789,075 
    Securities held to maturity, at amortized cost 419,009   429,558   461,162 
    Loans held for sale 29,820   33,127   11,869 
          
    Loans and leases 8,968,761   8,901,725   7,642,143 
    Allowance for credit losses (117,718)  (134,337)  (102,906)
    Net loans and leases 8,851,043   8,767,388   7,539,237 
          
    Goodwill and other intangibles 386,535   387,328   312,533 
    Other assets 554,231   600,935   537,546 
    Total Assets$11,459,488  $11,421,988  $9,805,666 
          
    Liabilities and Shareholders' Equity     
    Noninterest-bearing demand deposits$2,388,533  $2,535,704  $2,670,508 
          
    Interest-bearing demand deposits 629,138   632,062   357,769 
    Savings deposits 4,886,781   4,928,607   4,572,183 
    Time deposits 1,287,857   1,144,692   405,009 
    Total interest-bearing deposits 6,803,776   6,705,361   5,334,961 
          
    Total deposits 9,192,309   9,241,065   8,005,469 
          
    Short-term borrowings 597,835   544,060   372,694 
    Long-term borrowings 186,757   187,017   181,224 
    Total borrowings 784,592   731,077   553,918 
          
    Other liabilities 168,313   209,315   194,205 
    Shareholders' equity 1,314,274   1,240,531   1,052,074 
    Total Liabilities and Shareholders' Equity$11,459,488  $11,421,988  $9,805,666 


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
     For the Three Months Ended For the Years Ended
     December 31,Yield/September 30,Yield/December 31,Yield/ December 31,Yield/December 31,Yield/
     2023Rate2023Rate2022Rate 2023Rate2022Rate
    NET INTEREST MARGIN         
                
    Assets           
    Loans and leases (FTE)(1)(3)$8,974,6135.89%$8,884,7315.79%$7,491,3524.76% $8,714,7705.64%$7,172,6244.23%
    Securities and interest-bearing bank deposits (FTE)(1) 1,465,9623.06% 1,465,0692.85% 1,286,5612.08%  1,437,0002.74% 1,567,2661.78%
    Total Interest-Earning Assets (FTE)(1) 10,440,5755.49% 10,349,8005.37% 8,777,9134.36%  10,151,7705.23% 8,739,8903.79%
    Noninterest-earning assets 961,555  957,258  863,049   940,083  835,343 
    Total Assets$11,402,130 $11,307,058 $9,640,962  $11,091,853 $9,575,233 
                
    Liabilities and Shareholders' Equity           
    Interest-bearing demand and savings deposits$5,540,3641.90%$5,581,6231.67%$4,884,2360.29% $5,508,1821.46%$4,970,8350.11%
    Time deposits 1,217,3563.81% 1,054,2163.48% 345,7490.57%  972,7353.28% 352,6220.34%
    Short-term borrowings 548,6805.43% 504,0255.23% 264,9872.86%  439,5564.95% 144,8341.38%
    Long-term borrowings 186,8605.75% 187,1225.94% 181,3334.96%  186,6875.45% 181,7244.96%
    Total Interest-Bearing Liabilities 7,493,2602.57% 7,326,9862.28% 5,676,3050.58%  7,107,1602.03% 5,650,0150.31%
    Noninterest-bearing deposits 2,434,560  2,519,184  2,729,716   2,552,596  2,708,580 
    Other liabilities 213,492  211,447  193,685   205,224  147,871 
    Shareholders' equity 1,260,818  1,249,441  1,041,256   1,226,873  1,068,767 
    Total Noninterest-Bearing Funding Sources 3,908,870  3,980,072  3,964,657   3,984,693  3,925,218 
    Total Liabilities and Shareholders' Equity$11,402,130 $11,307,058 $9,640,962  $11,091,853 $9,575,233 
                
    Net Interest Margin (FTE) (annualized)(1) 3.65% 3.76% 3.99%  3.81% 3.58%


    FIRST COMMONWEALTH FINANCIAL CORPORATION 
    CONSOLIDATED FINANCIAL DATA   
    Unaudited   
    (dollars in thousands)   
     December 31,September 30,December 31,
      2023  2023  2022 
    Loan and Lease Portfolio Detail   
    Commercial Loan and Lease Portfolio:   
    Commercial, financial, agricultural and other$1,310,405 $1,305,905 $1,132,032 
    Commercial real estate 3,053,152  3,050,084  2,425,012 
    Equipment Finance loans and leases 232,944  190,116  79,674 
    Real estate construction 541,633  508,875  395,439 
    Total Commercial 5,138,134  5,054,980  4,032,157 
        
    Consumer Loan Portfolio:   
    Closed-end mortgages 1,926,254  1,915,506  1,682,092 
    Home equity lines of credit 490,622  499,275  512,577 
    Real estate construction 56,102  66,672  117,662 
    Total Real Estate - Consumer 2,472,978  2,481,453  2,312,331 
        
    Auto & RV loans 1,277,969  1,285,380  1,210,451 
    Direct installment 27,167  27,888  31,938 
    Personal lines of credit 49,355  48,718  51,514 
    Student loans 3,158  3,306  3,752 
    Total Other Consumer 1,357,649  1,365,292  1,297,655 
    Total Consumer Portfolio 3,830,627  3,846,745  3,609,986 
    Total Portfolio Loans and Leases 8,968,761  8,901,725  7,642,143 
    Loans held for sale 29,820  33,127  11,869 
    Total Loans and Leases$8,998,581 $8,934,852 $7,654,012 
        
        
     December 31,September 30,December 31,
      2023  2023  2022 
    ASSET QUALITY DETAIL   
    Nonperforming Loans and Leases:   
    Loans and leases on nonaccrual basis *$24,997 $25,902 $29,045 
    Loans on nonaccrual basis - Centric acquisition 14,475  22,022  — 
    Troubled debt restructured loans on accrual basis * —  —  6,442 
    Total Nonperforming Loans and Leases$39,472 $47,924 $35,487 
    Other real estate owned ("OREO") 422  765  534 
    Repossessions ("Repos") 1,024  762  454 
    Total Nonperforming Assets$40,918 $49,451 $36,475 
    Loans past due in excess of 90 days and still accruing 9,436  2,484  1,991 
    Classified loans and leases 87,056  66,272  44,447 
    Criticized loans and leases 210,187  193,192  132,863 
        
    Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos(4) 0.46% 0.56% 0.48%
    Allowance for credit losses$117,718 $134,337 $102,906 
    *TDR's were eliminated as of January 1, 2023 as part of implementing ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.


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

     For the Three Months Ended For the Years Ended
     December 31,September 30,December 31, December 31,December 31,
      2023  2023  2022   2023  2022 
    Net Charge-offs (Recoveries):      
    Commercial, financial, agricultural and other$9,951 $1,664 $444  $18,701 $1,967 
    Real estate construction —  —  —   —  (9)
    Commercial real estate 4,579  166  182   6,126  1,718 
    Residential real estate 58  247  32   314  152 
    Loans to individuals 1,750  1,899  1,356   5,011  3,309 
    Net Charge-offs$16,338 $3,976 $2,014  $30,152 $7,137 
           
    Net charge-offs as a percentage of average loans and leases outstanding (annualized)(4) 0.72% 0.18% 0.11%  0.35% 0.10%
    Provision for credit losses as a percentage of net charge-offs(11.42)% 148.01% 452.83%  13.80% 295.73%
    Provision for credit losses$(1,865)$5,885 $9,120  $4,160 $21,106 


    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 Years Ended
     December 31,September 30,December 31, December 31,December 31,
     202320232022 20232022
           
    Interest income$144,257$139,885$96,281 $529,998$329,953
    Adjustment to fully taxable equivalent basis(1) 314 313 290  1,237 1,049
    Interest income adjusted to fully taxable equivalent basis (non-GAAP) 144,571 140,198 96,571  531,235 331,002
    Interest expense 48,520 42,128 8,254  144,322 17,732
    Net interest income, (FTE)(1)$96,051$98,070$88,317 $386,913$313,270


    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 Years Ended
     December 31,September 30,December 31, December 31,December 31,
      2023  2023  2022   2023  2022 
           
    Net Income$44,827 $39,231 $35,733  $157,063 $128,181 
    Intangible amortization 1,210  1,344  726   4,983  3,196 
    Tax benefit of amortization of intangibles (254) (282) (152)  (1,046) (671)
    Net Income, adjusted for tax affected amortization of intangibles$45,783 $40,293 $36,307  $161,000 $130,706 
           
    Average Tangible Equity:      
    Total shareholders' equity$1,260,818 $1,249,441 $1,041,256  $1,226,873 $1,068,767 
    Less: intangible assets 386,896  387,782  312,634   380,016  313,451 
    Tangible Equity 873,922  861,659  728,622   846,857  755,316 
    Less: preferred stock —  —  —   —  — 
    Tangible Common Equity$873,922 $861,659 $728,622  $846,857 $755,316 
           
    (8)Return on Average Tangible Common Equity 20.78% 18.55% 19.77%  19.01% 17.30%


     For the Three Months Ended For the Years Ended
     December 31,September 30,December 31, December 31,December 31,
      2023  2023  2022   2023  2022 
           
    Core Net Income:      
    Total Net Income$44,827 $39,231 $35,733  $157,063 $128,181 
    Net securities gains —  103  —   103  (2)
    Tax benefit of net securities gains —  (22) —   (22) — 
    Merger and acquisition related expenses 174  379  1,254   9,034  1,702 
    Tax benefit of merger and acquisition related expenses (37) (80) (263)  (1,897) (357)
    COVID-19 related —  —  33   —  151 
    Tax benefit of COVID-19 related —  —  (7)  —  (32)
    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) — 
    Branch consolidation related —  —  —   —  (104)
    Tax benefit of branch consolidation related expenses —  —  —   —  22 
    (5)Core net income$44,964 $39,611 $36,750  $172,697 $129,561 
    Average Shares Outstanding Assuming Dilution 102,264,768  102,442,878  93,489,398   101,822,201  93,887,447 
    (6)Core Earnings per common share (diluted)$0.44 $0.39 $0.39  $1.70 $1.38 
           
    Intangible amortization 1,210  1,344  726   4,983  3,196 
    Tax benefit of amortization of intangibles (254) (282) (152)  (1,046) (671)
    Core Net Income, adjusted for tax affected amortization of intangibles$45,920 $40,673 $37,324  $176,634 $132,086 
           
    (9)Core Return on Average Tangible Common Equity 20.85% 18.73% 20.32%  20.86% 17.49%


    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 Years Ended
     December 31,September 30,December 31, December 31,December 31,
      2023  2023  2022   2023  2022 
    Core Return on Average Assets:      
    Total Net Income$44,827 $39,231 $35,733  $157,063 $128,181 
    Total Average Assets 11,402,130  11,307,058  9,640,962   11,091,853  9,575,233 
    Return on Average Assets 1.56% 1.38% 1.47%  1.42% 1.34%
           
    Core Net Income(5)$44,964 $39,611 $36,750  $172,697 $129,561 
    Total Average Assets 11,402,130  11,307,058  9,640,962   11,091,853  9,575,233 
    (7)Core Return on Average Assets 1.56% 1.39% 1.51%  1.56% 1.35%


     For the Three Months Ended For the Years Ended
     December 31,September 30,December 31, December 31,December 31,
      2023  2023  2022   2023  2022 
    Core Efficiency Ratio:      
    Total Noninterest Expense$65,180 $67,413 $58,334  $269,917 $229,638 
    Adjustments to Noninterest Expense:      
    Intangible amortization 1,210  1,344  726   4,983  3,196 
    Merger and acquisition related 174  379  1,254   9,034  1,702 
    COVID-19 related —  —  33   —  151 
    Branch consolidation related —  —  —   —  (104)
    Noninterest Expense - Core$63,796 $65,690 $56,321  $255,900 $224,693 
           
    Net interest income, (FTE)$96,051 $98,070 $88,317  $386,913 $313,270 
    Total noninterest income 24,297  24,826  24,309   96,609  98,708 
    Net securities gains —  103  —   103  (2)
    Total Revenue 120,348  122,999  112,626   483,625  411,976 
           
    Adjustments to Revenue:      
    Derivative mark-to-market (13) 35  (27)  14  368 
    Total Revenue - Core$120,361 $122,964 $112,653  $483,611 $411,608 
           
    (10)Core Efficiency Ratio 53.00% 53.42% 50.00%  52.91% 54.59%


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)    		  
       
    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES  
        
     December 31,September 30,December 31,
      2023  2023  2022 
    Tangible Equity:   
    Total shareholders' equity$1,314,274 $1,240,531 $1,052,074 
    Less: intangible assets 386,535  387,328  312,533 
    Tangible Equity 927,739  853,203  739,541 
    Less: preferred stock —  —  — 
    Tangible Common Equity$927,739 $853,203 $739,541 
        
    Tangible Assets:   
    Total assets$11,459,488 $11,421,988 $9,805,666 
    Less: intangible assets 386,535  387,328  312,533 
    Tangible Assets$11,072,953 $11,034,660 $9,493,133 
        
    (12)Tangible Common Equity as a percentage of Tangible Assets 8.38% 7.73% 7.79%
        
    Shares Outstanding at End of Period 102,114,664  102,184,652  93,376,314 
    (11)Tangible Book Value Per Common Share$9.09 $8.35 $7.92 


     For the Three Months Ended For the Years Ended
     December 31,September 30,December 31, December 31,December 31,
      2023 2023 2022  2023 2022 
    Pre-tax pre-provision income:      
    Net interest income$95,737$97,757$88,027 $385,676$312,221 
    Noninterest income 24,297 24,826 24,309  96,609 98,708 
    Noninterest expense 65,180 67,413 58,334  269,917 229,638 
    Pre-tax pre-provision income$54,854$55,170$54,002 $212,368$181,291 
           
    Net securities gains$—$103$— $103$(2)
    Merger and acquisition related expenses 174 379 1,254  9,034 1,702 
    COVID-19 related — — 33  — 151 
    Branch consolidation — — —  — (104)
    Core pre-tax pre-provision income$55,028$55,652$55,289 $221,505$183,038 
           
    Net charge-offs$16,338$3,976$2,014 $30,152$7,137 

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