EX-99.1 2 fcf-ex991_20240423x8k.htm EX-99.1 PRESS RELEASE Document
                                                
Exhibit 99.1

fcfimagea01.jpg                    
FOR IMMEDIATE RELEASE

First Commonwealth Announces First Quarter 2024 Earnings; Increases Quarterly Dividend

Indiana, PA, April 23, 2024 - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the first quarter of 2024.

Financial Summary
(dollars in thousands,For the Three Months Ended
except per share data)March 31,December 31,March 31,
202420232023
Reported Results
Net income $37,549 $44,827 $30,224 
Diluted earnings per share$0.37 $0.44 $0.30 
Return on average assets1.31 %1.56 %1.17 %
Return on average equity11.40 %14.11 %10.56 %
Operating Results (non-GAAP)(1)
Core net income$37,639 $44,964 $45,387 
Core diluted earnings per share$0.37 $0.44 $0.45 
Core pre-tax pre-provision net revenue$50,833 $55,028 $54,481 
Provision expense$4,238 $(1,865)$(2,650)
Provision for credit losses - acquisition day 1 non-PCD$— $— $10,653 
Net charge-offs$4,302 $16,338 $1,173 
Reserve build/(release)(2)
$1,380 $(16,619)$30,979 
Core return on average assets (ROAA)1.31 %1.56 %1.75 %
Core pre-tax pre-provision ROAA1.77 %1.91 %2.11 %
Return on average tangible common equity16.51 %20.78 %15.75 %
Core return on average tangible common equity16.54 %20.85 %23.42 %
Core efficiency ratio55.05 %53.00 %52.41 %
Net interest margin (FTE)3.52 %3.65 %4.01 %
(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.    
First Quarter 2024 Highlights
Financial results
•GAAP Net income of $37.5 million and diluted earnings per share totaled $0.37, an increase of $7.3 million, or $0.07 per share from the first quarter of 2023 and a decrease of $7.3 million, or $0.07 per share from the prior quarter. The results during the first quarter of 2023 included $19.2 million, or $0.15 per share, of merger-related expenses and day-1 non-purchased credit deterioration (PCD) provision from the Company’s acquisition of Centric Financial Corporation (Centric).

                                                
◦Core pre-tax pre-provision net revenue (PPNR)(1) totaled $50.8 million, a decrease of $3.6 million from the first quarter of 2023 and a decrease of $4.2 million from the previous quarter. The decrease from the prior quarter was primarily as a result of a 13 basis point decrease in the net interest margin (FTE)
•Average deposits increased $51.7 million from the previous quarter, or 2.3% annualized, including a $169.6 million increase in average time deposits offsetting a $132.2 million decrease in noninterest-bearing deposits.
◦End of period deposits increased $254.1 million, or 11.1% annualized from the previous quarter, including a $186.3 million increase in time deposits and a $113.0 million increase in savings deposits offsetting a $54.0 million decrease in noninterest-bearing deposits
◦82% of deposits were insured or secured as of March 31, 2024
•Total loans increased $33.2 million, or 1.5% annualized from the previous quarter
•The loan-to-deposit ratio decreased 228 basis points to 95.6% in the first quarter of 2024
•Net interest income (FTE) of $92.6 million decreased $3.4 million from the previous quarter and $2.1 million from the first quarter of 2023
•Noninterest income of $24.0 million decreased $0.3 million from the previous quarter
•Noninterest expense (excluding merger-related expense) of $65.5 million increased $0.5 million from the previous quarter
•Tangible book value per share increased $0.17, or 7.4% annualized from the previous quarter
◦AOCI as a percentage of tangible common equity increased 53 basis points to 12.58% in the first quarter of 2024
Profitability
•The net interest margin of 3.52% decreased 13 basis points compared to the prior quarter
•The core efficiency ratio(1) increased by 205 basis points to 55.05% compared to the prior quarter
•The core ROAA decreased 25 basis points to 1.31% compared to the prior quarter
•Core pre-tax pre-provision ROAA(1) of 1.77% for the quarter ended March 31, 2023
Strong capital positions
•On April 22, 2024, the Board of Directors authorized a 4.0% increase in the quarterly cash dividend to shareholders
•Bank-level Common Equity Tier 1 Capital (CET1) ratio of 11.1%, which represents $435.3 million in excess capital above the regulatory “well capitalized” requirement of 6.5%
•There were no shares repurchased in the first quarter of 2024. The remaining capacity under the current program was $17.4 million as of March 31, 2024.
•On June 1, 2024, the Bank will retire $50 million of variable rate subordinate corporate debentures with a current interest rate of 7.45%. This will reduce Total Risk Based Capital by approximately 44 basis points and improve the net interest margin by approximately three basis points beginning in the third quarter of 2024. The Company expects to incur approximately $360 thousand in other operating expenses in the second quarter of 2024 related to this redemption.
Asset quality
•The total provision for credit losses was $4.2 million, an increase of $6.1 million from the ($1.9) million provision for credit losses in the previous quarter.
•Reserve build/(release)(2) was $1.4 million, which brings reserves to total loans to 1.32% of total loans from 1.31% in the previous quarter
•Nonperforming loans of $42.4 million increased $3.0 million from the previous quarter

                                                
•Net charge-offs on loans totaled $4.3 million, a decrease of $12.0 million from the prior quarter, which included approximately $12.0 million of net charge-offs for loans specifically reserved for in previous quarters
◦Net charge-offs as a percentage of average loans outstanding (annualized) was 0.19% in the first quarter of 2024, a decrease of 53 basis points from the previous quarter
“We are pleased to report another solid quarter of performance, highlighted by our strong pre-tax, pre-provision return on average assets of 1.77% and return on average tangible common equity of 16.51%,” stated T. Michael Price, President and Chief Executive Officer. Our commitment to disciplined financial management and profitability remain our primary focus. And we are confident in our ability to navigate the evolving economic environment and deliver sustainable value for our shareholders.”
Earnings
Net income for the first quarter of 2024 was $37.5 million, or $0.37 per share, compared to $44.8 million, or $0.44 per share in the fourth quarter of 2023 and $30.2 million, or $0.30 per share for the first quarter of 2023.
Net Interest Income and Net Interest Margin
Net interest income (FTE) of $92.6 million decreased $3.4 million from the previous quarter and $2.0 million from the prior year quarter. The decrease from the prior quarter was primarily due to a 13 basis point decline in the net interest margin.
The net interest margin for the first quarter of 2024 was 3.52% as compared to 3.65% in the prior quarter and 4.01% in the year ago quarter. The decrease from the prior quarter was primarily due to a 19 basis point increase in the cost of funds only partially offset by a 6 basis point increase in the yield on loans.
Total average deposits grew $51.7 million in the first quarter of 2023 as compared to the previous quarter. Average time deposits grew $169.6 million and the cost of total time deposits increased 40 basis points from the prior quarter. The increase in time deposits was partially offset by a $132.2 million decrease in average noninterest-bearing deposits.
End of period deposits increased $254.1 million from the previous quarter, including a $186.3 million increase in time deposits and a $113.0 million increase in savings deposits, offsetting a $54.0 million decrease in noninterest-bearing deposits.
Asset Quality
Provision for credit losses totaled $4.2 million in the first quarter of 2024 as compared to ($1.9) million in the previous quarter. The increase from the previous quarter was primarily driven by net charge-offs.
The allowance for credit losses (ACL) as a percentage of end-of-period loans was 1.32% in the first quarter of 2024 as compared to 1.31% in the previous quarter.
At March 31, 2024, nonperforming assets totaled $44.3 million as compared to $40.9 million in the prior quarter and $45.2 million in the first quarter of 2023.
Nonperforming loans represented 0.47% of total loans as of March 31, 2024 as compared to 0.44% and 0.51% for the periods ended December 31, 2023 and March 31, 2023, respectively.
At March 31, 2024, criticized loans totaled $211.9 million, an increase of $1.7 million from the previous quarter.
During the first quarter of 2024, net charge-offs were $4.3 million, compared to $16.3 million in the prior quarter and $1.2 million in the first quarter of 2023. Net charge-offs during the prior quarter were primarily driven by acquired loans.
Net charge-offs were 0.19%, 0.72% and 0.06% of average loans (annualized) for the periods ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
Noninterest Income and Noninterest Expense
Noninterest income totaled $24.0 million for the first quarter of 2024, as compared to $24.3 million for the fourth quarter of 2023 and $23.0 million for the first quarter of 2023. There were no material securities gains during the current or comparable quarters.
The $0.3 million decrease from the previous quarter was primarily driven by a $0.5 million seasonal decrease in card-related interchange income and a $0.5 million decrease in commercial swap fees, partially offset by a $0.6 million increase in gain on sale of mortgage loans due to an increased mix of sold loans and a $0.3 million increase in gain on sale of Small Business Administration (SBA) loans.

                                                
Noninterest expense (excluding merger-related) totaled $65.5 million for the first quarter of 2024, as compared to $65.0 million for the fourth quarter of 2023 and $62.8 million for the first quarter of 2023. The $0.5 million increase from the previous quarter was primarily the result of a $0.9 million increase in PA shares tax due to a release of accrued tax obligations in the prior quarter and a $0.7 million increase in occupancy expense. This increase was partially offset by a $0.9 million decrease in salaries and employee benefits due to a $1.3 million decrease in hospitalization expense.
The core efficiency ratio was 55.05% during the first quarter of 2024 as compared to 53.00% in the previous quarter and 52.41% in the first quarter of 2023.
Full time equivalent staff was 1,465, 1,475 and 1,536 at March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
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 previous quarter. The cash dividend is payable on May 17, 2024 to shareholders of record as of May 3, 2024. This dividend represents a 3.9% projected annual yield utilizing the April 22, 2024 closing market price of $13.29.
First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at March 31, 2024 were 14.3%, 12.2%, 10.2% and 11.4% 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 2024 on Wednesday, April 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 web.
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
March 31,December 31,March 31,
202420232023
SUMMARY RESULTS OF OPERATIONS
Net interest income$92,304 $95,737 $94,358 
Provision for credit losses4,238 (1,865)(2,650)
Provision for credit losses — acquisition day 1 non-PCD— — 10,653 
Noninterest income23,988 24,297 22,963 
Noninterest expense65,573 65,180 71,381 
Net income 37,549 44,827 30,224 
Core net income (5)
37,639 44,964 45,387 
Earnings per common share (diluted)$0.37 $0.44 $0.30 
Core earnings per common share (diluted) (6)
$0.37 $0.44 $0.45 
KEY FINANCIAL RATIOS
Return on average assets1.31 %1.56 %1.17 %
Core return on average assets (7)
1.31 %1.56 %1.75 %
Return on average assets, pre-provision, pre-tax1.77 %1.91 %1.78 %
Core return on average assets, pre-provision, pre-tax1.77 %1.91 %2.11 %
Return on average shareholders' equity11.40 %14.11 %10.56 %
Return on average tangible common equity (8)
16.51 %20.78 %15.75 %
Core return on average tangible common equity (9)
16.54 %20.85 %23.42 %
Core efficiency ratio (2)(10)
55.05 %53.00 %52.41 %
Net interest margin (FTE) (1)
3.52 %3.65 %4.01 %
Book value per common share$13.03 $12.87 $11.87 
Tangible book value per common share (11)
9.26 9.09 8.13 
Market value per common share13.92 15.44 12.43 
Cash dividends declared per common share0.125 0.125 0.120 
ASSET QUALITY RATIOS
Nonperforming loans and leases as a percent of end-of-period loans and leases(3)
0.47 %0.44 %0.51 %
Nonperforming assets as a percent of total assets (3)
0.38 %0.36 %0.41 %
Net charge-offs as a percent of average loans and leases (annualized) (4)
0.19 %0.72 %0.06 %
Allowance for credit losses as a percent of nonperforming loans and leases (4)
280.59 %298.23 %302.67 %
Allowance for credit losses as a percent of end-of-period loans and leases (4)
1.32 %1.31 %1.55 %
CAPITAL RATIOS
Shareholders' equity as a percent of total assets11.4 %11.5 %11.0 %
Tangible common equity as a percent of tangible assets (12)
8.4 %8.4 %7.8 %
Leverage Ratio10.2 %10.0 %10.2 %
Risk Based Capital - Tier I12.2 %11.9 %11.5 %
Risk Based Capital - Total14.3 %13.9 %13.8 %
Common Equity - Tier I11.4 %11.2 %10.8 %


                                                
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,
202420232023
INCOME STATEMENT
   Interest income$145,462 $144,257 $114,589 
   Interest expense53,158 48,520 20,231 
Net Interest Income92,304 95,737 94,358 
   Provision for credit losses4,238 (1,865)(2,650)
   Provision for credit losses - acquisition day 1 non-PCD— — 10,653 
Net Interest Income after Provision for Credit Losses88,066 97,602 86,355 
   Net securities gains— — — 
   Trust income2,727 2,549 2,486 
   Service charges on deposit accounts5,383 5,595 4,918 
   Insurance and retail brokerage commissions2,246 2,457 2,552 
   Income from bank owned life insurance1,294 1,211 1,227 
   Gain on sale of mortgage loans1,328 776 652 
   Gain on sale of other loans and assets2,051 1,740 2,086 
   Card-related interchange income6,690 7,218 6,829 
Derivative mark-to-market12 (13)(89)
Swap fee income— 490 245 
   Other income2,257 2,274 2,057 
Total Noninterest Income23,988 24,297 22,963 
   Salaries and employee benefits35,324 36,232 34,264 
   Net occupancy5,334 4,637 5,018 
   Furniture and equipment 4,480 4,372 4,238 
   Data processing3,824 3,986 3,404 
   Pennsylvania shares tax1,202 351 1,252 
   Advertising and promotion 1,319 1,061 1,663 
   Intangible amortization1,264 1,210 1,147 
   Other professional fees and services1,242 1,543 1,591 
   FDIC insurance1,613 1,646 1,417 
   Litigation and operational losses997 1,378 743 
   Loss on sale or write-down of assets143 107 41 
   Merger and acquisition114 174 8,541 
   Other operating expenses8,717 8,483 8,062 
Total Noninterest Expense65,573 65,180 71,381 
Income before Income Taxes46,481 56,719 37,937 
   Income tax provision 8,932 11,892 7,713 
Net Income$37,549 $44,827 $30,224 
Shares Outstanding at End of Period102,303,974102,114,664103,193,127
Average Shares Outstanding Assuming Dilution102,198,899102,264,76899,779,816


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
March 31,December 31,March 31,
202420232023
BALANCE SHEET (Period End)
Assets
   Cash and due from banks$77,179 $125,436 $113,692 
   Interest-bearing bank deposits233,188 21,557 282,110 
   Securities available for sale, at fair value1,049,108 1,071,857 786,813 
   Securities held to maturity, at amortized cost464,708 419,009 451,278 
   Loans held for sale31,895 29,820 11,050 
     Loans and leases8,999,870 8,968,761 8,656,945 
     Allowance for credit losses(119,098)(117,718)(133,885)
   Net loans and leases8,880,772 8,851,043 8,523,060 
   Goodwill and other intangibles385,745 386,535 385,998 
   Other assets571,813 554,231 559,751 
Total Assets$11,694,408 $11,459,488 $11,113,752 
Liabilities and Shareholders' Equity
   Noninterest-bearing demand deposits$2,334,495 $2,388,533 $2,698,225 
     Interest-bearing demand deposits637,908 629,138 547,015 
     Savings deposits4,999,822 4,886,781 5,127,037 
     Time deposits1,474,178 1,287,857 862,671 
   Total interest-bearing deposits7,111,908 6,803,776 6,536,723 
   Total deposits9,446,403 9,192,309 9,234,948 
     Short-term borrowings546,541 597,835 278,978 
     Long-term borrowings186,490 186,757 187,531 
   Total borrowings733,031 784,592 466,509 
   Other liabilities182,254 168,313 187,281 
   Shareholders' equity1,332,720 1,314,274 1,225,014 
Total Liabilities and Shareholders' Equity$11,694,408 $11,459,488 $11,113,752 



                                                
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/
2024Rate2023Rate2023Rate
NET INTEREST MARGIN
Assets
Loans and leases (FTE)(1)(3)
$8,998,649 5.95 %$8,974,613 5.89 %$8,301,449 5.27 %
Securities and interest-bearing bank deposits (FTE) (1)
1,584,673 3.23 %1,465,962 3.06 %1,279,477 2.20 %
Total Interest-Earning Assets (FTE) (1)
10,583,322 5.54 %10,440,575 5.49 %9,580,926 4.86 %
Noninterest-earning assets938,121 961,555 907,982 
Total Assets$11,521,443 $11,402,130 $10,488,908 
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits$5,554,656 2.11 %$5,540,364 1.90 %$5,312,086 0.88 %
Time deposits1,386,959 4.21 %1,217,356 3.81 %682,144 2.34 %
Short-term borrowings595,884 4.57 %548,680 5.43 %266,932 3.65 %
Long-term borrowings186,597 5.76 %186,860 5.75 %185,367 5.06 %
Total Interest-Bearing Liabilities7,724,096 2.77 %7,493,260 2.57 %6,446,529 1.27 %
Noninterest-bearing deposits2,302,338 2,434,560 2,678,849 
Other liabilities169,683 213,492 202,476 
Shareholders' equity1,325,326 1,260,818 1,161,054 
Total Noninterest-Bearing Funding Sources3,797,347 3,908,870 4,042,379 
Total Liabilities and Shareholders' Equity$11,521,443 $11,402,130 $10,488,908 
Net Interest Margin (FTE) (annualized)(1)
3.52 %3.65 %4.01 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
March 31,December 31,March 31,
202420232023
Loan and Lease Portfolio Detail
Commercial Loan and Lease Portfolio:
Commercial, financial, agricultural and other$1,313,898 $1,310,405 $1,361,858 
Commercial real estate3,090,950 3,053,152 2,991,930 
Equipment Finance loans and leases279,938 232,944 109,221 
Real estate construction520,320 541,633 422,831 
Total Commercial5,205,106 5,138,134 4,885,840 
Consumer Loan Portfolio:
Closed-end mortgages1,913,479 1,926,254 1,807,941 
Home equity lines of credit488,793 490,622 515,926 
Real estate construction39,047 56,102 119,071 
Total Real Estate - Consumer2,441,319 2,472,978 2,442,938 
Auto & RV loans1,277,212 1,277,969 1,244,874 
Direct installment26,731 27,167 30,381 
Personal lines of credit46,733 49,355 49,399 
Student loans2,769 3,158 3,513 
Total Other Consumer1,353,445 1,357,649 1,328,167 
Total Consumer Portfolio3,794,764 3,830,627 3,771,105 
Total Portfolio Loans and Leases8,999,870 8,968,761 8,656,945 
Loans held for sale31,895 29,820 11,050 
Total Loans and Leases$9,031,765 $8,998,581 $8,667,995 
March 31,December 31,March 31,
202420232023
ASSET QUALITY DETAIL
Nonperforming Loans and Leases:
Loans and leases on nonaccrual basis$27,649 $24,997 $29,413 
Loans on nonaccrual basis - Centric acquisition14,797 14,475 14,821 
       Total Nonperforming Loans and Leases$42,446 $39,472 $44,234 
Other real estate owned ("OREO")368 422 424 
Repossessions ("Repos")1,442 1,024 553 
       Total Nonperforming Assets$44,256 $40,918 $45,211 
Loans past due in excess of 90 days and still accruing1,699 9,436 1,440 
Classified loans and leases89,284 87,056 76,962 
Criticized loans and leases211,857 210,187 189,873 
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4)
0.49 %0.46 %0.52 %
Allowance for credit losses$119,098 $117,718 $133,885 

                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
For the Three Months Ended
March 31,December 31,March 31,
202420232023
Net Charge-offs (Recoveries):
       Commercial, financial, agricultural and other$2,242 $9,951 $504 
       Real estate construction(6)— — 
       Commercial real estate169 4,579 (42)
       Residential real estate21 58 41 
       Loans to individuals1,876 1,750 670 
Net Charge-offs$4,302 $16,338 $1,173 
Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4)
0.19 %0.72 %0.06 %
Provision for credit losses as a percentage of net charge-offs98.51 %(11.42)%(225.92)%
Provision for credit losses$4,238 $(1,865)$(2,650)
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,
202420232023
Interest income$145,462 $144,257 $114,589 
Adjustment to fully taxable equivalent basis (1)
323 314 305 
Interest income adjusted to fully taxable equivalent basis (non-GAAP)145,785 144,571 114,894 
Interest expense53,158 48,520 20,231 
Net interest income, (FTE) (1)
$92,627 $96,051 $94,663 


                                                
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,
202420232023
Net Income$37,549 $44,827 $30,224 
Intangible amortization1,264 1,210 1,147 
Tax benefit of amortization of intangibles(265)(254)(241)
Net Income, adjusted for tax affected amortization of intangibles$38,548 $45,783 $31,130 
Average Tangible Equity:
   Total shareholders' equity$1,325,326 $1,260,818 $1,161,054 
   Less: intangible assets386,040 386,896 359,431 
       Tangible Equity939,286 873,922 801,623 
   Less: preferred stock— — — 
       Tangible Common Equity$939,286 $873,922 $801,623 
(8)Return on Average Tangible Common Equity
16.51 %20.78 %15.75 %

For the Three Months Ended
March 31,December 31,March 31,
202420232023
Core Net Income:
Total Net Income$37,549 $44,827 $30,224 
Merger and acquisition related expenses114 174 8,541 
Tax benefit of merger and acquisition related expenses(24)(37)(1,794)
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
$37,639 $44,964 $45,387 
Average Shares Outstanding Assuming Dilution102,198,899102,264,76899,779,816
(6) Core Earnings per common share (diluted)
$0.37 $0.44 $0.45 
Intangible amortization1,264 1,210 1,147 
Tax benefit of amortization of intangibles(265)(254)(241)
Core Net Income, adjusted for tax affected amortization of intangibles$38,638 $45,920 $46,293 
(9) Core Return on Average Tangible Common Equity
16.54 %20.85 %23.42 %


                                                
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,
202420232023
Core Return on Average Assets:
Total Net Income$37,549 $44,827 $30,224 
Total Average Assets11,521,443 11,402,130 10,488,908 
Return on Average Assets1.31 %1.56 %1.17 %
Core Net Income (5)
$37,639 $44,964 $45,387 
Total Average Assets11,521,443 11,402,130 10,488,908 
(7) Core Return on Average Assets
1.31 %1.56 %1.75 %

For the Three Months Ended
March 31,December 31,March 31,
202420232023
Core Efficiency Ratio:
Total Noninterest Expense$65,573 $65,180 $71,381 
Adjustments to Noninterest Expense:
Intangible amortization1,264 1,210 1,147 
Merger and acquisition related114 174 8,541 
Noninterest Expense - Core$64,195 $63,796 $61,693 
Net interest income, (FTE)$92,627 $96,051 $94,663 
Total noninterest income23,988 24,297 22,963 
Net securities gains— — — 
Total Revenue116,615 120,348 117,626 
Adjustments to Revenue:
Derivative mark-to-market12 (13)(89)
Total Revenue - Core$116,603 $120,361 $117,715 
(10)Core Efficiency Ratio
55.05 %53.00 %52.41 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
March 31,December 31,March 31,
202420232023
Tangible Equity:
   Total shareholders' equity$1,332,720 $1,314,274 $1,225,014 
   Less: intangible assets385,745 386,535 385,998 
       Tangible Equity946,975 927,739 839,016 
   Less: preferred stock— — — 
       Tangible Common Equity$946,975 $927,739 $839,016 
Tangible Assets:
   Total assets $11,694,408 $11,459,488 $11,113,752 
   Less: intangible assets385,745 386,535 385,998 
       Tangible Assets$11,308,663 $11,072,953 $10,727,754 
(12)Tangible Common Equity as a percentage of Tangible Assets
8.37 %8.38 %7.82 %
   Shares Outstanding at End of Period102,303,974 102,114,664 103,193,127 
(11)Tangible Book Value Per Common Share
$9.26 $9.09 $8.13 

For the Three Months Ended
March 31,December 31,March 31,
202420232023
Pre-tax pre-provision income:
Net interest income$92,304 $95,737 $94,358 
Noninterest income23,98824,29722,963
Noninterest expense65,57365,18071,381
Pre-tax pre-provision income$50,719 $54,854 $45,940 
Merger and acquisition related expenses1141748,541
Core pre-tax pre-provision income$50,833 $55,028 $54,481 
Net charge-offs$4,302 $16,338 $1,173