EX-99.1 2 fcf-ex991_20230425x8k.htm EX-99.1 PRESS RELEASE Document
                                                
Exhibit 99.1

fcfimagea01.jpg                    
FOR IMMEDIATE RELEASE

First Commonwealth Announces First Quarter 2023 Earnings; Increases Quarterly Dividend

Indiana, PA, April 25, 2023 - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the first quarter of 2023.

Financial Summary
(dollars in thousands,For the Three Months Ended
except per share data)March 31,December 31,March 31,
202320222022
Reported Results
Net income $30,224 $35,733 $27,726 
Diluted earnings per share$0.30 $0.38 $0.29 
Return on average assets1.17 %1.47 %1.18 %
Return on average equity10.56 %13.61 %10.15 %
Operating Results (non-GAAP)(1)
Core net income$45,387 $36,750 $27,814 
Core diluted earnings per share$0.45 $0.39 $0.29 
Core pre-tax pre-provision net revenue$54,481 $55,289 $36,537 
Provision for credit losses$(2,650)$9,120 $1,964 
Provision for credit losses - acquisition day 1 non-PCD$10,653 $— $— 
Net charge-offs$1,173 $2,014 $1,134 
Reserve build/(release)(2)
$30,979 $6,813 $(1,334)
Core return on average assets (ROAA)1.75 %1.51 %1.18 %
Core pre-tax pre-provision ROAA2.11 %2.28 %1.56 %
Return on average tangible common equity15.75 %19.77 %14.52 %
Core return on average tangible common equity23.42 %20.32 %14.57 %
Core efficiency ratio52.41 %50.00 %59.47 %
Net interest margin (FTE)4.01 %3.99 %3.19 %
(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.    
First Quarter 2023 Highlights
Financial results
•Net income of $30.2 million and diluted earnings per share totaled $0.30, a decrease of $5.5 million, or $0.08 per share from the previous quarter. The results during the first quarter of 2023 included $19.2 million, or $0.15 per share, of merger-related expenses from the Company’s acquisition of Centric Financial Corporation (Centric).

                                                
◦Reported results included notable items related to the acquisition of Centric, including merger-related expenses of $8.5 million and impacts to provision for credit losses of $10.7 million
◦Acquired Centric loans and deposits totaled $949.2 million and $757.0 million, respectively, as of January 31, 2023, the date of acquisition
◦Average acquired Centric loans and deposits contributed $631.8 million and $441.9 million, respectively, for the first quarter of 2023
•Core pre-tax pre-provision net revenue (PPNR)(1) totaled $54.5 million, a decrease of $0.8 million from the previous quarter and an increase of $18.0 million from the first quarter of 2022, primarily as a result of an 82 basis point increase in the net interest margin (FTE) and a $878.2 million increase in average interest-earning assets
◦PPNR ROAA was 1.78% in the first quarter of 2023 as compared to 2.22% in the previous quarter
◦Core PPNR ROAA was 2.11% in the first quarter of 2023 as compared to 2.28% in the previous quarter
•Average deposits increased $713.4 million from the previous quarter, including $441.9 million in average deposits acquired from Centric. Average organic deposits grew $271.5 million, or 13.8% annualized from the previous quarter, including the transfer of $109.1 million of average off-balance sheet Trust deposits onto the Company’s balance sheet
◦End of period deposits (excluding acquired deposits) increased $472.5 million, or 23.9% annualized from the previous quarter
◦83% of deposits were insured or secured as of March 31, 2023
•Total loans (excluding acquired loans) increased $64.8 million, or 3.4% annualized from the previous quarter
•Loan-to-deposit ratio decreased 175 basis points to 93.9% in the first quarter of 2023
◦Loans and available for sale (AFS) and held to maturity (HTM) securities as a percentage of total deposits decreased 396 basis points to 107.3%
•Record net interest income (FTE) of $94.7 million increased $6.3 million from the previous quarter and $26.2 million from the first quarter of 2022
•Noninterest income of $23.0 million decreased $1.3 million from the previous quarter primarily due to a $1.6 million gain on a limited partnership investment in the previous quarter
•Noninterest expense (excluding merger-related expense) of $62.8 million increased $5.8 million from the previous quarter due primarily to higher operating costs resulting from the Centric acquisition
•Total shareholder’s equity increased $172.9 million from the previous quarter due to $141.4 million in common equity issuance resulting from the Centric acquisition and a $13.1 million, or 9.5% 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.
◦Tangible book value per share increased $0.21, or 10.8% annualized from the previous quarter
◦AOCI as a percentage of tangible common equity decreased 377 basis points to 14.8% in the first quarter of 2023
Profitability
•The net interest margin of 4.01% increased 2 basis points compared to the prior quarter
◦The core net interest margin (adjusted for net purchase accounting marks) decreased 4 basis points to 3.94%
•The core efficiency ratio(1) increased by 241 basis points to 52.41% compared to the prior quarter
•The core ROAA increased 24 basis points to 1.75% compared to the prior quarter
•Core pre-tax pre-provision ROAA(1) for the quarter ended March 31, 2023 was 2.11% as compared to 2.28% in the prior quarter and 1.55% in the prior year quarter

                                                
Strong capital and liquidity positions
•Total available liquidity of $4.1 billion
◦Cash and AFS securities as a percentage of total assets increased 102 basis points to 10.6%
•On April 24, 2023, the Board of Directors authorized a 4.2% increase in the quarterly cash dividend to shareholders
•Bank-level Tier 1 Capital ratio of 10.9%, which represents $266.0 million in excess capital above the regulatory “well capitalized” requirement of 8.0%
•There were 21,342 shares repurchased at a weighted average price of $13.58. The remaining capacity under the current program was $5.6 million as of March 31, 2023. On April 24, 2023, the Board of Directors authorized a $25 million increase in the share repurchase program.
Asset quality
•The total provision for credit losses was $8.0 million, a decrease of $1.1 million from the previous quarter
◦Provision expense included $10.7 million related to day-1 non-Purchase Credit Deteriorated (PCD) loans resulting from the Centric acquisition
•Reserve build/(release)(2) was $31.0 million primarily resulting from acquired loans, bringing reserves to total loans to 1.55% from 1.35% in the previous quarter
•Nonperforming loans of $44.2 million increased $8.7 million from the previous quarter and included $14.8 million of acquired loans on a nonaccrual status
•Net charge-offs on loans totaled $1.2 million, a decrease of $0.8 million from the previous quarter
◦Net charge-offs/(recoveries) as a percentage of average loans outstanding (annualized) was 0.06% in the first quarter of 2023, a decrease from 0.11% in the previous quarter
“I am pleased with our first quarter results, with organic deposit growth outstripping loan originations and a resilient net interest margin that overcame the most funding pressure we’ve seen since the Federal Reserve began raising rates in March of 2022,” stated T. Michael Price, President and Chief Executive Officer. “While our loan growth moderated in the first quarter, we believe our geographic expansion and the scaling of our de novo equipment finance business will help offset any slowdown in borrower demand." Price continued, "We all received a healthy reminder this quarter of how important balance sheet management and appropriate risk oversight are to the banking industry. Our capital, liquidity and financial positions remain strong and we believe our granular, diversified core depository highlights the value of our franchise."
Earnings
Net income for the first quarter of 2023 was $30.2 million, or $0.30 per share, compared to $35.7 million, or $0.38 per share in the fourth quarter of 2022 and $27.7 million, or $0.29 per share for the first quarter of 2022.
Net Interest Income and Net Interest Margin
Net interest income (FTE) of $94.7 million increased $6.3 million from the previous quarter and $26.2 million from the prior year quarter. The increase from the prior quarter was primarily due to an $803.0 million increase in average interest earning assets, which includes $637.6 million in average earning assets from the Centric acquisition.
The net interest margin for the first quarter of 2023 was 4.01%, an increase of two basis points from the previous quarter and an increase of 82 basis points from the first quarter of 2022. The increase from the fourth quarter of 2022 was due primarily to a six basis point increase in purchase accounting accretion and a 52 basis point increase in the yield on loans, offset by a 52 basis point increase in the cost of deposits.
Total average deposits (excluding acquired deposits) grew $271.5 million in the first quarter of 2023 as compared to the previous quarter. Average interest-bearing demand and savings deposits (excluding acquired deposits) grew $176.8 million and average time deposits (excluding acquired deposits) grew $282.4 million, which was partially offset by a $187.7 million decrease in average noninterest-bearing deposits (excluding acquired deposits).

                                                
Asset Quality
Provision expense in the first quarter of 2023 totaled $8.0 million and included $10.7 million of day-1 non-PCD provision expense resulting from the Centric acquisition. The decrease in the provision expense for the non-acquired portfolio was primarily the result of a decrease in unfunded commitment reserves related to decreases in construction commitments and lower loan originations as compared to the previous quarter.
The allowance for credit losses (ACL) as a percentage of end-of-period loans was 1.55% in the first quarter of 2023 as compared to 1.35% in the previous quarter.
At March 31, 2023, nonperforming loans totaled $44.2 million, an increase of $8.7 million from the previous quarter and an increase of $6.8 million from the previous year quarter. The increase from the prior quarters was primarily due to $14.8 million of nonperforming loans acquired from the Centric acquisition in the first quarter of 2023 and the adoption of ASU 2022-02 which removed $6.4 million of accruing troubled debt restructured (TDRs) in the prior quarter.
Nonperforming loans represented 0.51% of total loans as of March 31, 2023 as compared to 0.46% and 0.54% for the periods ended December 31, 2022 and March 31, 2022, respectively.
At March 31, 2023, criticized loans totaled $189.9 million, an increase of $57.0 million from the previous quarter. The increase from the previous quarter was primarily due to $70.2 million of criticized loans purchased in the Centric acquisition.
During the first quarter of 2023, net charge-offs/(recoveries) were $1.2 million, compared to $2.0 million in the prior quarter and $1.1 million in the first quarter of 2022. Net charge-offs were 0.06%, 0.11% and 0.07% of average loans (annualized) for the periods ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively.
Noninterest Income and Noninterest Expense
Noninterest income totaled $23.0 million for the first quarter of 2023, as compared to $24.3 million for the fourth quarter of 2022 and $24.0 million for the first quarter of 2022. There were no material securities gains during the current or comparable quarters.
The $1.3 million decrease from the previous quarter was primarily driven by a $1.6 million gain on a limited partnership investment included in other revenue in the previous quarter and a $0.5 million decrease in swap fee income, partially offset by a $0.9 million increase in the gain on sale of Small Business Administration (SBA) loans.
Noninterest expense (excluding merger-related) totaled $62.8 million for the first quarter of 2023, as compared to $57.1 million for the fourth quarter of 2022 and $55.7 million for the first quarter of 2022. The $5.8 million increase from the previous quarter was primarily the result of a $2.6 million increase in salaries and benefits, a $0.7 million increase in FDIC insurance, a $0.6 million increase in occupancy expense, and a $0.6 million increase in advertising and promotion expenses. The increase in operating expenses was primarily driven by the Centric acquisition and an increase of 112 full time equivalent staff.
The core efficiency ratio was 52.41% during the first quarter of 2023 as compared to 50.00% in the previous quarter and 59.47% in the first quarter of 2022.
Full time equivalent staff was 1,536 at March 31, 2023, 1,424 at December 31, 2022, and 1,432 at March 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 previous quarter. The cash dividend is payable on May 19, 2023 to shareholders of record as of May 5, 2023. This dividend represents a 4.2% projected annual yield utilizing the April 24, 2023 closing market price of $11.86.
First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at March 31, 2023 were 13.8%, 11.5%, 10.2% and 10.8% 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 first quarter of 2023 on Wednesday, April 26, 2023 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 website 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, 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, including uncertainties regarding the impact of the COVID-19 pandemic, and could be affected by many factors, including, but not limited to: (1) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; (2) future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses; (3) the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; (4) management’s ability to effectively execute its business plans; (5) mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; (6) the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; (7) the effect of changes in accounting policies and practices; (8) changes in consumer spending, borrowing and saving and changes in unemployment; (9) changes in customers’ performance and creditworthiness; (10) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; (11) current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; (12) the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes the Coronavirus disease 2019 (“COVID-19”), global pandemic, and the impact on the performance of our loan and lease portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; (13) our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; (14) financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; (15) the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; (16) the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; (17) a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (18) the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; (19) our ability to develop and execute effective business plans and strategies; and (20) other risks and uncertainties described in the reports that First Commonwealth files with the Securities and Exchange Commission, including its 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:
Jonathan E. Longwill
Vice President / Communications and Media Relations
Phone: 724-463-6806
E-mail: JLongwill@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
March 31,December 31,March 31,
202320222022
SUMMARY RESULTS OF OPERATIONS
Net interest income$94,358 $88,027 $68,172 
Provision for credit losses(2,650)9,120 1,964 
Provision for credit losses — acquisition day 1 non-PCD10,653 — — 
Noninterest income122,963 24,309 23,976 
Noninterest expense71,381 58,334 55,724 
Net income 30,224 35,733 27,726 
Core net income (5)
45,387 36,750 27,814 
Earnings per common share (diluted)$0.30 $0.38 $0.29 
Core earnings per common share (diluted) (6)
$0.45 $0.39 $0.29 
KEY FINANCIAL RATIOS
Return on average assets1.17 %1.47 %1.18 %
Core return on average assets (7)
1.75 %1.51 %1.18 %
Return on average assets, pre-provision, pre-tax1.78 %2.22 %1.55 %
Core return on average assets, pre-provision, pre-tax2.11 %2.28 %1.56 %
Return on average shareholders' equity10.56 %13.61 %10.15 %
Return on average tangible common equity (8)
15.75 %19.77 %14.52 %
Core return on average tangible common equity (9)
23.42 %20.32 %14.57 %
Core efficiency ratio (2)(10)
52.41 %50.00 %59.47 %
Net interest margin (FTE) (1)
4.01 %3.99 %3.19 %
Book value per common share$11.87 $11.27 $11.32 
Tangible book value per common share (11)
8.13 7.92 7.99 
Market value per common share12.43 13.97 15.16 
Cash dividends declared per common share0.120 0.120 0.115 
ASSET QUALITY RATIOS
Nonperforming loans and leases as a percent of end-of-period loans and leases(3)
0.51 %0.46 %0.54 %
Nonperforming assets as a percent of total assets (3)
0.41 %0.37 %0.40 %
Net charge-offs as a percent of average loans and leases (annualized) (4)
0.06 %0.11 %0.07 %
Allowance for credit losses as a percent of nonperforming loans and leases (4)
302.67 %289.98 %243.38 %
Allowance for credit losses as a percent of end-of-period loans and leases (4)
1.55 %1.35 %1.31 %
CAPITAL RATIOS
Shareholders' equity as a percent of total assets11.0 %10.7 %11.1 %
Tangible common equity as a percent of tangible assets (12)
7.8 %7.8 %8.1 %
Leverage Ratio10.2 %10.2 %9.8 %
Risk Based Capital - Tier I11.5 %12.0 %12.2 %
Risk Based Capital - Total13.8 %14.4 %14.7 %
Common Equity - Tier I10.8 %11.1 %11.3 %

1

                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
For the Three Months Ended
March 31,December 31,March 31,
202320222022
INCOME STATEMENT
   Interest income$114,589 $96,281 $71,244 
   Interest expense20,231 8,254 3,072 
Net Interest Income94,358 88,027 68,172 
   Provision for credit losses(2,650)9,120 1,964 
   Provision for credit losses - acquisition day 1 non-PCD10,653 — — 
Net Interest Income after Provision for Credit Losses86,355 78,907 66,208 
   Net securities gains— — 2 
   Trust income2,486 2,455 2,713 
   Service charges on deposit accounts4,918 4,946 4,615 
   Insurance and retail brokerage commissions2,552 2,051 2,272 
   Income from bank owned life insurance1,227 1,149 1,508 
   Gain on sale of mortgage loans652 948 1,282 
   Gain on sale of other loans and assets2,086 1,525 2,319 
   Card-related interchange income6,829 6,996 6,490 
Derivative mark-to-market(89)(27)347 
Swap fee income245 752 453 
   Other income2,057 3,514 1,975 
Total Noninterest Income22,963 24,309 23,976 
   Salaries and employee benefits34,264 31,664 30,932 
   Net occupancy5,018 4,451 4,787 
   Furniture and equipment 4,238 3,990 3,730 
   Data processing3,404 3,543 3,188 
   Pennsylvania shares tax1,252 960 1,005 
   Advertising and promotion 1,663 1,093 1,226 
   Intangible amortization1,147 726 862 
   Other professional fees and services1,591 1,272 1,221 
   FDIC insurance1,417 675 698 
   Litigation and operational losses743 847 600 
   Loss on sale or write-down of assets41 128 75 
   Merger and acquisition8,541 1,254 — 
   Other operating expenses8,062 7,731 7,400 
Total Noninterest Expense71,381 58,334 55,724 
Income before Income Taxes37,937 44,882 34,460 
   Income tax provision 7,713 9,149 6,734 
Net Income$30,224 $35,733 $27,726 
Shares Outstanding at End of Period103,193,12793,376,31494,299,039
Average Shares Outstanding Assuming Dilution99,779,81693,489,39894,311,324


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
March 31,December 31,March 31,
202320222022
BALANCE SHEET (Period End)
Assets
   Cash and due from banks$113,692 $124,254 $120,289 
   Interest-bearing bank deposits282,110 29,990 404,516 
   Securities available for sale, at fair value786,813 789,075 946,346 
   Securities held to maturity, at amortized cost451,278 461,162 512,911 
   Loans held for sale11,050 11,869 10,506 
     Loans and leases8,656,945 7,642,143 6,952,112 
     Allowance for credit losses(133,885)(102,906)(91,188)
   Net loans and leases8,523,060 7,539,237 6,860,924 
   Goodwill and other intangibles385,998 312,533 314,066 
   Other assets559,751 537,546 472,566 
Total Assets$11,113,752 $9,805,666 $9,642,124 
Liabilities and Shareholders' Equity
   Noninterest-bearing demand deposits$2,698,225 $2,670,508 $2,719,645 
     Interest-bearing demand deposits547,015 357,769 305,623 
     Savings deposits5,127,037 4,572,183 4,782,445 
     Time deposits862,671 405,009 364,134 
   Total interest-bearing deposits6,536,723 5,334,961 5,452,202 
   Total deposits9,234,948 8,005,469 8,171,847 
     Short-term borrowings278,978 372,694 95,748 
     Long-term borrowings187,531 181,224 182,012 
   Total borrowings466,509 553,918 277,760 
   Other liabilities187,281 194,205 124,898 
   Shareholders' equity1,225,014 1,052,074 1,067,619 
Total Liabilities and Shareholders' Equity$11,113,752 $9,805,666 $9,642,124 



                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
For the Three Months Ended
March 31,Yield/December 31,Yield/March 31,Yield/
2023Rate2022Rate2022Rate
NET INTEREST MARGIN
Assets
Loans and leases (FTE)(1)(3)
$8,301,449 5.27 %$7,491,352 4.76 %$6,893,628 3.80 %
Securities and interest-bearing bank deposits (FTE) (1)
1,279,477 2.20 %1,286,561 2.08 %1,809,131 1.54 %
Total Interest-Earning Assets (FTE) (1)
9,580,926 4.86 %8,777,913 4.36 %8,702,759 3.33 %
Noninterest-earning assets907,982 863,049 821,819 
Total Assets$10,488,908 $9,640,962 $9,524,578 
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits$5,312,086 0.88 %$4,884,236 0.29 %$4,980,390 0.04 %
Time deposits682,144 2.34 %345,749 0.57 %374,484 0.29 %
Short-term borrowings266,932 3.65 %264,987 2.86 %115,544 0.07 %
Long-term borrowings185,367 5.06 %181,333 4.96 %182,119 4.98 %
Total Interest-Bearing Liabilities6,446,529 1.27 %5,676,305 0.58 %5,652,537 0.22 %
Noninterest-bearing deposits2,678,849 2,729,716 2,645,551 
Other liabilities202,476 193,685 119,075 
Shareholders' equity1,161,054 1,041,256 1,107,415 
Total Noninterest-Bearing Funding Sources4,042,379 3,964,657 3,872,041 
Total Liabilities and Shareholders' Equity$10,488,908 $9,640,962 $9,524,578 
Net Interest Margin (FTE) (annualized)(1)
4.01 %3.99 %3.19 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
March 31,December 31,March 31,
202320222022
Loan and Lease Portfolio Detail
Commercial Loan and Lease Portfolio:
Commercial, financial, agricultural and other$1,361,858 $1,132,032 $1,121,185 
Commercial real estate2,991,930 2,425,012 2,344,281 
Equipment Finance loans and leases109,221 79,674 2,505 
Real estate construction422,831 395,439 307,411 
Total Commercial4,885,840 4,032,157 3,775,382 
Consumer Loan Portfolio:
Closed-end mortgages1,807,941 1,682,092 1,467,133 
Home equity lines of credit515,926 512,577 539,088 
Real estate construction119,071 117,662 91,577 
Total Real Estate - Consumer2,442,938 2,312,331 2,097,798 
Auto & RV loans1,244,874 1,210,451 984,001 
Direct installment30,381 31,938 37,751 
Personal lines of credit49,399 51,514 52,614 
Student loans3,513 3,752 4,566 
Total Other Consumer1,328,167 1,297,655 1,078,932 
Total Consumer Portfolio3,771,105 3,609,986 3,176,730 
Total Portfolio Loans and Leases8,656,945 7,642,143 6,952,112 
Loans held for sale11,050 11,869 10,506 
Total Loans and Leases$8,667,995 $7,654,012 $6,962,618 
March 31,December 31,March 31,
202320222022
ASSET QUALITY DETAIL
Nonperforming Loans and Leases:
Loans and leases on nonaccrual basis *$29,413 $29,045 $30,580 
Loans on nonaccrual basis - Centric acquisition14,821 — — 
Troubled debt restructured loans on accrual basis *— 6,442 6,887 
       Total Nonperforming Loans and Leases$44,234 $35,487 $37,467 
Other real estate owned ("OREO")424 534 667 
Repossessions ("Repos")553 454 397 
       Total Nonperforming Assets$45,211 $36,475 $38,531 
Loans past due in excess of 90 days and still accruing1,440 1,991 1,921 
Classified loans and leases76,962 44,447 75,270 
Criticized loans and leases189,873 132,863 174,060 
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4)
0.52 %0.48 %0.55 %
Allowance for credit losses$133,885 $102,906 $91,188 
*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
March 31,December 31,March 31,
202320222022
Net Charge-offs (Recoveries):
       Commercial, financial, agricultural and other$504 $444 $395 
       Real estate construction— — — 
       Commercial real estate(42)182 (14)
       Residential real estate41 32 110 
       Loans to individuals670 1,356 643 
Net Charge-offs$1,173 $2,014 $1,134 
Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4)
0.06 %0.11 %0.07 %
Provision for credit losses as a percentage of net charge-offs(225.92)%452.83 %173.19 %
Provision for credit losses$(2,650)$9,120 $1,964 
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
March 31,December 31,March 31,
202320222022
Interest income$114,589 $96,281 $71,244 
Adjustment to fully taxable equivalent basis (1)
305 290 253 
Interest income adjusted to fully taxable equivalent basis (non-GAAP)114,894 96,571 71,497 
Interest expense20,231 8,254 3,072 
Net interest income, (FTE) (1)
$94,663 $88,317 $68,425 


                                                
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
March 31,December 31,March 31,
202320222022
Net Income$30,224 $35,733 $27,726 
Intangible amortization1,147 726 862 
Tax benefit of amortization of intangibles(241)(152)(181)
Net Income, adjusted for tax affected amortization of intangibles$31,130 $36,307 $28,407 
Average Tangible Equity:
   Total shareholders' equity$1,161,054 $1,041,256 $1,107,415 
   Less: intangible assets359,431 312,634 314,235 
       Tangible Equity801,623 728,622 793,180 
   Less: preferred stock— — — 
       Tangible Common Equity$801,623 $728,622 $793,180 
(8)Return on Average Tangible Common Equity
15.75 %19.77 %14.52 %
For the Three Months Ended
March 31,December 31,March 31,
202320222022
Core Net Income:
Total Net Income$30,224 $35,733 $27,726 
Net securities gains— — (2)
Merger and acquisition related expenses8,541 1,254 — 
Tax benefit of merger and acquisition related expenses(1,794)(263)— 
   COVID-19 related— 33 17 
Tax benefit of COVID-19 related— (7)(4)
Provision for credit losses - acquisition day 1 non-PCD10,653 — — 
Tax benefit of provision for credit losses - acquisition day 1 non-PCD(2,237)— — 
Branch consolidation related— — 98 
Tax benefit of bank consolidation related expenses— — (21)
(5) Core net income
$45,387 $36,750 $27,814 
Average Shares Outstanding Assuming Dilution99,779,81693,489,39894,311,324
(6) Core Earnings per common share (diluted)
$0.45 $0.39 $0.29 
Intangible amortization1,147 726 862 
Tax benefit of amortization of intangibles(241)(152)(181)
Core Net Income, adjusted for tax affected amortization of intangibles$46,293 $37,324 $28,495 
(9) Core Return on Average Tangible Common Equity
23.42 %20.32 %14.57 %


                                                
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
March 31,December 31,March 31,
202320222022
Core Return on Average Assets:
Total Net Income$30,224 $35,733 $27,726 
Total Average Assets10,488,908 9,640,962 9,524,578 
Return on Average Assets1.17 %1.47 %1.18 %
Core Net Income (5)
$45,387 $36,750 $27,814 
Total Average Assets10,488,908 9,640,962 9,524,578 
(7) Core Return on Average Assets
1.75 %1.51 %1.18 %
For the Three Months Ended
March 31,December 31,March 31,
202320222022
Core Efficiency Ratio:
Total Noninterest Expense$71,381 $58,334 $55,724 
Adjustments to Noninterest Expense:
Intangible amortization1,147 726 862 
Merger and acquisition related8,541 1,254 — 
   COVID-19 related— 33 17 
Branch consolidation related— — 98 
Noninterest Expense - Core$61,693 $56,321 $54,747 
Net interest income, (FTE)$94,663 $88,317 $68,425 
Total noninterest income22,963 24,309 23,976 
Net securities gains— — (2)
Total Revenue117,626 112,626 92,399 
Adjustments to Revenue:
Derivative mark-to-market(89)(27)347 
Total Revenue - Core$117,715 $112,653 $92,052 
(10)Core Efficiency Ratio
52.41 %50.00 %59.47 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
March 31,December 31,March 31,
202320222022
Tangible Equity:
   Total shareholders' equity$1,225,014 $1,052,074 $1,067,619 
   Less: intangible assets385,998 312,533 314,066 
       Tangible Equity839,016 739,541 753,553 
   Less: preferred stock— — — 
       Tangible Common Equity$839,016 $739,541 $753,553 
Tangible Assets:
   Total assets $11,113,752 $9,805,666 $9,642,124 
   Less: intangible assets385,998 312,533 314,066 
       Tangible Assets$10,727,754 $9,493,133 $9,328,058 
(12)Tangible Common Equity as a percentage of Tangible Assets
7.82 %7.79 %8.08 %
   Shares Outstanding at End of Period103,193,127 93,376,314 94,299,039 
(11)Tangible Book Value Per Common Share
$8.13 $7.92 $7.99 

For the Three Months Ended
March 31,December 31,March 31,
202320222022
Pre-tax pre-provision income:
Net interest income$94,358 $88,027 $68,172 
Noninterest income22,96324,30923,976
Noninterest expense71,38158,33455,724
Pre-tax pre-provision income$45,940 $54,002 $36,424 
   Net securities gains$— $— $(2)
Merger and acquisition related expenses8,5411,254—
   COVID-19 related—3317
   Branch consolidation——98
Core pre-tax pre-provision income$54,481 $55,289 $36,537 
Net charge-offs$1,173 $2,014 $1,134