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    First Commonwealth Announces Third Quarter 2023 Earnings; Declares Quarterly Dividend

    INDIANA, Pa., Oct. 24, 2023 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2023.

    Financial Summary

    (dollars in thousands, For the Three Months Ended   For the Nine Months Ended
    except per share data) September 30,   June 30,   September 30,   September 30,   September 30,
        2023       2023       2022       2023       2022  
    Reported Results                  
    Net income $ 39,231     $ 42,781     $ 33,968     $ 112,236     $ 92,448  
    Diluted earnings per share $ 0.38     $ 0.42     $ 0.36     $ 1.10     $ 0.98  
    Return on average assets   1.38 %     1.54 %     1.41 %     1.37 %     1.29 %
    Return on average equity   12.46 %     13.90 %     12.67 %     12.35 %     11.47 %
                       
    Operating Results (non-GAAP)(1)                  
    Core net income $ 39,611     $ 42,734     $ 34,353     $ 127,732     $ 92,811  
    Core diluted earnings per share $ 0.39     $ 0.42     $ 0.37     $ 1.26     $ 0.99  
    Core pre-tax pre-provision net revenue $ 55,652     $ 56,344     $ 48,860     $ 166,477     $ 127,749  
    Provision for credit losses $ 5,885     $ 2,790     $ 5,923     $ 6,025     $ 11,986  
    Provision for credit losses - acquisition day 1 non-PCD $     $     $     $ 10,653     $  
    Net charge-offs $ 3,976     $ 8,665     $ 2,461     $ 13,814     $ 5,123  
    Reserve build/(release)(2) $ 791     $ (339 )   $ 2,490     $ 31,431     $ 3,571  
    Core return on average assets (ROAA)   1.39 %     1.54 %     1.43 %     1.55 %     1.30 %
    Core pre-tax pre-provision ROAA   1.95 %     2.03 %     2.03 %     2.03 %     1.79 %
    Return on average tangible common equity   18.55 %     20.68 %     18.28 %     18.39 %     16.51 %
    Core return on average tangible common equity   18.73 %     20.66 %     18.48 %     20.86 %     16.58 %
    Core efficiency ratio   53.42 %     52.80 %     54.06 %     52.88 %     56.32 %
    Net interest margin (FTE)   3.76 %     3.85 %     3.76 %     3.87 %     3.45 %

    (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.        

    Third Quarter 2023 Highlights

    • Net income of $39.2 million and diluted earnings per share of $0.38 represented a decrease of $3.6 million, or $0.04 per share, from the prior quarter and an increase of $5.3 million, or $0.02 per share, from the third quarter of 2022
    • Core pre-tax pre-provision net revenue (PPNR)(1) totaled $55.7 million, a decrease of $0.7 million from the previous quarter and an increase of $6.8 million from the third quarter of 2022
    • Average deposits increased $48.4 million, or 2.1% annualized, compared to the prior quarter, due to a $123.8 million increase in average time deposits partially offset by a $61.7 million decrease in average noninterest-bearing deposits
      • End of period deposits increased $94.8 million, or 4.1% annualized, compared to the prior quarter
      • 80.4% of deposits were insured or secured as of September 30, 2023
    • The loan-to-deposit ratio increased 30 basis points to 96.7% at the end of the third quarter of 2023
      • Loans and available for sale (AFS) securities as a percentage of total deposits was 106.1% as of September 30, 2023
    • Net interest income (FTE) of $98.1 million was relatively unchanged from the previous quarter and increased $15.4 million from the third quarter of 2022
    • Noninterest income (excluding security gains and losses) of $24.9 million increased $0.4 million from the previous quarter due in part to higher Trust revenue
    • Noninterest expense (excluding merger-related expense) of $67.0 million increased $1.0 million from the previous quarter due primarily to elevated operational losses and FDIC insurance expense
    • Total shareholder’s equity increased $8.1 million from the previous quarter due to a $26.4 million increase in retained earnings, partially offset by a $15.5 million decrease in accumulated other comprehensive income (AOCI) resulting from the impact of higher 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 $0.11, or 5.4% annualized, from the previous quarter
      • AOCI as a percentage of tangible common equity increased 164 basis points to 18.1% in the third quarter of 2023

    Profitability

    • The core efficiency ratio(1) of 53.42% increased 62 basis points from the previous quarter and improved 64 basis points from the third quarter of 2022
    • The return on average assets (ROA) decreased 16 basis points to 1.38% compared to the previous quarter
      • The core return on average assets(1) decreased 15 basis points to 1.39% compared to the previous quarter
    • Core pre-tax pre-provision ROA(1) for the quarter ended September 30, 2023 was 1.95% as compared to 2.03% in the prior quarter and 2.03% in the third quarter of 2022
    • The net interest margin of 3.76% decreased 9 basis points compared to the prior quarter and was unchanged as compared to the third quarter of 2022
      • Purchase accounting accretion contributed 10 basis points to the margin in the third quarter, a decrease of 4 basis points from the prior quarter
      • The retention of approximately $207.3 million of additional cash on the Bank’s balance sheet for liquidity purposes had a negative impact on the net interest margin of 8 basis points in the third quarter

    Asset quality

    • The provision for credit losses was $5.9 million, an increase of $3.1 million compared to the previous quarter
    • The allowance for credit losses as a percentage of end-of-period loans was 1.51%, a decrease of 1 basis point from the previous quarter
    • Total classified loans decreased $10.1 million from the previous quarter, from $76.4 million, or 0.87% of total loans and leases, to $66.3 million, or 0.74% of total loans and leases
      • Total nonperforming assets of $49.5 million increased $0.1 million from the previous quarter
    • Net charge-offs on loans totaled $4.0 million, a decrease of $4.7 million from the previous quarter and includes $1.2 million of acquired loans that were reserved for through purchase accounting marks
      • Net charge-offs (annualized) as a percentage of average loans outstanding was 0.18% in the third quarter of 2023 as compared to 0.40% in the previous quarter, 0.05% of which was attributable to the aforementioned charge off of acquired loans

    Strong capital and liquidity positions

    • Total available liquidity of $4.4 billion at September 30, 2023
      • Cash and AFS securities as a percentage of total assets decreased 36 basis points to 10.5%
      • Total available liquidity represented 241% of uninsured/unsecured deposits, and combined with cash represented 248% of uninsured/unsecured deposits
    • Bank-level Tier 1 Capital ratio of 10.8%, which represents $259.1 million in excess capital above the regulatory “well capitalized” requirement of 8.0%
    • A total of 259,639 shares at a weighted average price of $12.36 were repurchased during the third quarter of 2023 under the Company’s previously authorized share repurchase program.   The remaining repurchase capacity under the current program was $18.3 million as of September 30, 2023

    “Our results this quarter were strong and overcame 9 basis points of net interest margin compression.   Fortunately, the pace of increases in our funding costs continued to moderate throughout the third quarter while loan yields continue to improve,” stated T. Michael Price, President and Chief Executive Officer.   “I am also enthusiastic about where we are at as a company.   We continue to improve our businesses each and every quarter, despite a challenging macro-economic environment for banks this year.   Our asset quality, liquidity and capital also remain strong and will enable us to continue our journey of becoming the best bank for our neighbors and their businesses.”

    Earnings

    Net income for the third quarter of 2023 was $39.2 million, or $0.38 per share, compared to $42.8 million, or $0.42 per share in the second quarter of 2023, and $34.0 million, or $0.36 per share for the third quarter of 2022.

    Net Interest Income and Net Interest Margin

    Net interest income (FTE) of $98.1 million was essentially unchanged from the previous quarter and increased $15.4 million from the prior year quarter.   The increase from the prior year quarter was primarily due to a $1.6 billion increase in average interest-earning assets, which includes $1.0 billion in average interest-earning assets acquired in the Centric acquisition.

    The net interest margin for the third quarter of 2023 was 3.76%, a decrease of 9 basis points from the previous quarter and unchanged from the third quarter of 2022.   The decrease from the previous quarter was due primarily to a 28 basis point increase in the cost of deposits, partially offset by a 21 basis point increase in the yield on loans.   The total cost of funds was 1.70% in the third quarter of 2023, which represents an increase of 32 basis points from the previous quarter.

    Total average deposits grew $48.4 million in the third quarter of 2023 as compared to the previous quarter.   Average time deposits grew $123.8 million, which offset a $61.7 million decrease in average noninterest-bearing deposits and a $13.7 million decrease in average interest-bearing demand and savings deposits.  

    Total portfolio loans increased $101.9 million, or 4.6% annualized, from the previous quarter, driven by strong commercial loan growth, including $36.0 million of growth in Equipment Finance loans and a $45.1 million increase in Commercial Real Estate loans.   Total consumer Mortgage loans, including loans for construction, increased $26.7 million from the previous quarter.  

    Average interest-earning assets increased $125.6 million, or 4.9% annualized, from the previous quarter.   Average loans increased $195.7 million, or 8.9% annualized, which offset a $70.1 million decrease in average investment securities and interest-bearing bank deposits.

    Asset Quality

    Provision expense in the third quarter of 2023 totaled $5.9 million as compared to $2.8 million in the previous quarter.   The increase in the provision expense was primarily driven by loan growth and an additional $4.1 million in specific reserves for an updated appraisal on a nonaccrual commercial loan.   The increase in provision expense was partially offset by the effect of improvement in the Bank’s high risk portfolio and improved economic factors.

    The allowance for credit losses in the third quarter of 2023 totaled $134.3 million as compared to $133.5 million in the previous quarter.   The increase from the previous quarter was primarily the result of the aforementioned specific reserves, partially offset by $4.0 million in net charge-offs ($1.2 million of which was related to acquired loans that had been the subject of purchase accounting marks in the first quarter as part of the Centric acquisition).

    The allowance for credit losses as a percentage of end-of-period loans in the third quarter of 2023 was 1.51% as compared to 1.52% in the previous quarter.

    At September 30, 2023, nonperforming loans totaled $47.9 million, a decrease of $0.1 million from the previous quarter.  

    Nonperforming loans represented 0.54% of total loans for the period ended September 30, 2023 as compared to 0.54% and 0.48% for the periods ended June 30, 2023 and September 30, 2022, respectively.

    During the third quarter of 2023, net charge-offs were $4.0 million as compared to $8.7 million in the previous quarter and $2.5 million in the third quarter of 2022.   The decrease from the prior period was primarily due to the charge off of $7.6 million in commercial loans that were acquired in the Centric acquisition, for which the allowance was created in the first quarter of 2023 through purchase accounting marks at the time of the acquisition.

    Net charge-offs (annualized) as a percentage of average loans were 0.18%, 0.40% and 0.13% for the periods ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively.

    Noninterest Income and Noninterest Expense

    Noninterest income (excluding security gains and losses) totaled $24.9 million for the third quarter of 2023, as compared to $24.5 million for the second quarter of 2023 and $25.9 million for the third quarter of 2022.   There were $0.1 million in net security losses during the third quarter of 2023 and no security gains or losses in the comparable periods.

    The $0.4 million increase from the previous quarter was primarily due to a $0.4 million increase in Trust revenue and a $0.3 million increase in service charges on deposit accounts, partially offset by a $0.9 million decrease in gains on the sale of Small Business Administration (SBA) loans.   

    Noninterest expense (excluding $0.4 million of merger-related expense) totaled $67.0 million for the third quarter of 2023, as compared to $66.0 million for the second quarter of 2023 and $59.5 million for the third quarter of 2022.   Expense increased in comparison with the prior quarter primarily due to a $0.7 million increase in operational losses driven by a $0.9 million recognition of identified losses as part of the implementation of a new debit card charge-off processing system, an increase of $0.6 million due to higher FDIC insurance expense due to the acquisition of Centric Financial Corporation, an increase of $0.4 million in Pennsylvania shares tax and an increase of $0.4 million in other professional fees.   These increases were partially offset by a $1.1 million decrease in salaries and benefits compared to the prior quarter due to a $1.0 million decrease in hospitalization expense.

    The core efficiency ratio was 53.4% during the third quarter of 2023 as compared to 52.8% in the previous quarter and 54.1% in the third quarter of 2022.

    Full time equivalent staff was 1,481 at September 30, 2023, 1,483 at June 30, 2023, and 1,422 at September 30, 2022.  

    Dividends and Capital

    First Commonwealth declared a common stock quarterly dividend of $0.125 per share, which represents a 4.2% increase from the third quarter of 2022. The cash dividend is payable on November 17, 2023 to shareholders of record as of November 3, 2023. This dividend represents a 4.1% projected annual yield utilizing the October 23, 2023 closing market price of $12.06.

    First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at September 30, 2023 were 13.8%, 11.6%, 9.9% and 10.9%, respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

    Conference Call

    First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter of 2023 on Wednesday, October 25, 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 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:
    Kristine Levan
    Senior Vice President / Marketing and Communication Manager
    Phone: 724-463-4777
    E-mail: Klevan@fcbanking.com 

    Investor Relations:
    Ryan M. Thomas
    Vice President / Finance and Investor Relations
    Phone: 724-463-1690
    E-mail: RThomas1@fcbanking.com 


    FIRST COMMONWEALTH FINANCIAL CORPORATION            
    CONSOLIDATED FINANCIAL DATA                  
    Unaudited                  
    (dollars in thousands, except per share data)                  
      For the Three Months Ended   For the Nine Months Ended
      September 30,   June 30,   September 30,   September 30,   September 30,
        2023       2023       2022       2023       2022  
    SUMMARY RESULTS OF OPERATIONS                  
    Net interest income $ 97,757     $ 97,824     $ 82,360     $ 289,939     $ 224,194  
    Provision for credit losses   5,885       2,790       5,923       6,025       11,986  
    Provision for credit losses — acquisition day 1 non-PCD                     10,653        
    Noninterest income   24,826       24,523       25,914       72,312       74,399  
    Noninterest expense   67,413       65,943       59,901       204,737       171,304  
    Net income   39,231       42,781       33,968       112,236       92,448  
    Core net income(5)   39,611       42,734       34,353       127,732       92,811  
    Earnings per common share (diluted) $ 0.38     $ 0.42     $ 0.36     $ 1.10     $ 0.98  
    Core earnings per common share (diluted)(6) $ 0.39     $ 0.42     $ 0.37     $ 1.26     $ 0.99  
    KEY FINANCIAL RATIOS                  
    Return on average assets   1.38 %     1.54 %     1.41 %     1.37 %     1.29 %
    Core return on average assets(7)   1.39 %     1.54 %     1.43 %     1.55 %     1.30 %
    Return on average assets, pre-provision, pre-tax   1.94 %     2.03 %     2.01 %     1.92 %     1.78 %
    Core return on average assets, pre-provision, pre-tax   1.95 %     2.03 %     2.03 %     2.03 %     1.79 %
    Return on average shareholders' equity   12.46 %     13.90 %     12.67 %     12.35 %     11.47 %
    Return on average tangible common equity(8)   18.55 %     20.68 %     18.28 %     18.39 %     16.51 %
    Core return on average tangible common equity(9)   18.73 %     20.66 %     18.48 %     20.86 %     16.58 %
    Core efficiency ratio(2)(10)   53.42 %     52.80 %     54.06 %     52.88 %     56.32 %
    Net interest margin (FTE)(1)   3.76 %     3.85 %     3.76 %     3.87 %     3.45 %
                       
    Book value per common share $ 12.14     $ 12.03     $ 10.95          
    Tangible book value per common share(11)   8.35       8.24       7.60          
    Market value per common share   12.21       12.65       12.84          
    Cash dividends declared per common share   0.125       0.125       0.120       0.370       0.355  
    ASSET QUALITY RATIOS                  
    Nonperforming loans and leases as a percent of end-of-period loans and leases(3)   0.54 %     0.54 %     0.48 %        
    Nonperforming assets as a percent of total assets(3)   0.43 %     0.44 %     0.38 %        
    Net charge-offs as a percent of average loans and leases (annualized)(4)   0.18 %     0.40 %     0.13 %        
    Allowance for credit losses as a percent of nonperforming loans and leases(4)   280.31 %     278.17 %     269.23 %        
    Allowance for credit losses as a percent of end-of-period loans and leases(4)   1.51 %     1.52 %     1.31 %        
    CAPITAL RATIOS                  
    Shareholders' equity as a percent of total assets   10.9 %     10.9 %     10.7 %        
    Tangible common equity as a percent of tangible assets(12)   7.7 %     7.7 %     7.7 %        
    Leverage Ratio   9.9 %     9.8 %     10.1 %        
    Risk Based Capital - Tier I   11.6 %     11.5 %     12.1 %        
    Risk Based Capital - Total   13.8 %     13.7 %     14.5 %        
    Common Equity - Tier I   10.9 %     10.8 %     11.2 %        
                                   


    FIRST COMMONWEALTH FINANCIAL CORPORATION        
    CONSOLIDATED FINANCIAL DATA            
    Unaudited            
    (dollars in thousands, except per share data)            
      For the Three Months Ended   For the Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023     2023     2022     2023     2022
    INCOME STATEMENT            
    Interest income $ 139,885   $ 131,267   $ 85,700   $ 385,741   $ 233,672
    Interest expense   42,128     33,443     3,340     95,802     9,478
    Net Interest Income   97,757     97,824     82,360     289,939     224,194
    Provision for credit losses   5,885     2,790     5,923     6,025     11,986
    Provision for credit losses - acquisition day 1 non-PCD               10,653    
    Net Interest Income after Provision for Credit Losses   91,872     95,034     76,437     273,261     212,208
    Net securities gains   (103 )           (103 )   2
    Trust income   2,949     2,532     2,777     7,967     8,063
    Service charges on deposit accounts   5,600     5,324     5,194     15,842     14,695
    Insurance and retail brokerage commissions   2,305     2,314     2,048     7,171     6,806
    Income from bank owned life insurance   1,242     1,195     1,419     3,664     4,310
    Gain on sale of mortgage loans   1,270     1,253     1,485     3,175     4,328
    Gain on sale of other loans and assets   1,027     1,891     1,093     5,004     4,511
    Card-related interchange income   7,221     7,372     6,980     21,422     20,607
    Derivative mark-to-market   35     81     6     27     395
    Swap fee income   452     332     2,326     1,029     3,933
    Other income   2,828     2,229     2,586     7,114     6,749
    Total Noninterest Income   24,826     24,523     25,914     72,312     74,399
    Salaries and employee benefits   35,640     36,735     32,486     106,639     94,367
    Net occupancy   4,782     4,784     4,629     14,584     13,586
    Furniture and equipment   4,414     4,284     4,005     12,936     11,592
    Data processing   3,857     3,763     3,721     11,024     10,379
    Pennsylvania shares tax   1,588     1,173     1,569     4,013     3,487
    Advertising and promotion   1,662     1,327     1,278     4,652     3,938
    Intangible amortization   1,344     1,282     746     3,773     2,470
    Other professional fees and services   1,603     1,182     1,204     4,376     3,622
    FDIC insurance   1,920     1,277     796     4,614     2,196
    Litigation and operational losses   1,626     894     758     3,263     1,987
    Loss on sale or write-down of assets   50     6     54     97     215
    Merger and acquisition   379     (60 )   448     8,860     448
    Other operating expenses   8,548     9,296     8,207     25,906     23,017
    Total Noninterest Expense   67,413     65,943     59,901     204,737     171,304
    Income before Income Taxes   49,285     53,614     42,450     140,836     115,303
    Income tax provision   10,054     10,833     8,482     28,600     22,855
    Net Income $ 39,231   $ 42,781   $ 33,968   $ 112,236   $ 92,448
                 
    Shares Outstanding at End of Period   102,184,652     102,444,915     93,377,064     102,184,652     93,377,064
    Average Shares Outstanding Assuming Dilution   102,442,878     102,760,266     93,450,259     101,674,970     93,994,158
                 


    FIRST COMMONWEALTH FINANCIAL CORPORATION      
    CONSOLIDATED FINANCIAL DATA          
    Unaudited          
    (dollars in thousands)          
               
      September 30,   June 30,   September 30,
        2023       2023       2022  
    BALANCE SHEET (Period End)          
    Assets          
    Cash and due from banks $ 122,982     $ 123,095     $ 106,153  
    Interest-bearing bank deposits   214,088       325,774       74,619  
    Securities available for sale, at fair value   866,582       784,503       802,871  
    Securities held to maturity, at amortized cost   429,558       439,922       474,790  
    Loans held for sale   33,127       16,300       13,811  
               
    Loans and leases   8,901,725       8,799,836       7,348,917  
    Allowance for credit losses   (134,337 )     (133,546 )     (96,093 )
    Net loans and leases   8,767,388       8,666,290       7,252,824  
               
    Goodwill and other intangibles   387,328       388,451       312,950  
    Other assets   600,935       574,269       540,612  
    Total Assets $ 11,421,988     $ 11,318,604     $ 9,578,630  
               
    Liabilities and Shareholders' Equity          
    Noninterest-bearing demand deposits $ 2,535,704     $ 2,624,344     $ 2,782,654  
               
    Interest-bearing demand deposits   632,062       611,156       354,310  
    Savings deposits   4,928,607       4,935,124       4,608,762  
    Time deposits   1,144,692       975,654       331,923  
    Total interest-bearing deposits   6,705,361       6,521,934       5,294,995  
               
    Total deposits   9,241,065       9,146,278       8,077,649  
               
    Short-term borrowings   544,060       542,839       97,932  
    Long-term borrowings   187,017       187,276       181,489  
    Total borrowings   731,077       730,115       279,421  
               
    Other liabilities   209,315       209,792       198,985  
    Shareholders' equity   1,240,531       1,232,419       1,022,575  
    Total Liabilities and Shareholders' Equity $ 11,421,988     $ 11,318,604     $ 9,578,630  
                           


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


      For the Three Months Ended   For the Nine Months Ended
      September 30, Yield/ June 30, Yield/ September 30, Yield/   September 30, Yield/ September 30, Yield/
        2023 Rate   2023 Rate   2022 Rate     2023 Rate   2022 Rate
    NET INTEREST MARGIN                  
                           
    Assets                      
    Loans and leases (FTE)(1)(3) $ 8,884,731 5.79 % $ 8,689,021 5.58 % $ 7,261,790 4.31 %   $ 8,627,203 5.56 % $ 7,065,213 4.04 %
    Securities and interest-bearing bank deposits (FTE) (1)   1,465,069 2.85 %   1,535,136 2.77 %   1,446,315 1.92 %     1,427,243 2.63 %   1,661,862 1.70 %
    Total Interest-Earning Assets (FTE) (1)   10,349,800 5.37 %   10,224,157 5.16 %   8,708,105 3.92 %     10,054,446 5.14 %   8,727,075 3.59 %
    Noninterest-earning assets   957,258     932,756     825,989       932,844     826,007  
    Total Assets $ 11,307,058   $ 11,156,913   $ 9,534,094     $ 10,987,290   $ 9,553,082  
                           
    Liabilities and Shareholders' Equity                      
    Interest-bearing demand and savings deposits $ 5,581,623 1.67 % $ 5,595,336 1.35 % $ 4,952,279 0.07 %   $ 5,497,336 1.31 % $ 5,000,018 0.05 %
    Time deposits   1,054,216 3.48 %   930,447 3.03 %   336,346 0.24 %     890,299 3.03 %   354,938 0.26 %
    Short-term borrowings   504,025 5.23 %   434,783 4.79 %   102,073 0.19 %     402,782 4.73 %   104,343 0.11 %
    Long-term borrowings   187,122 5.94 %   187,379 5.03 %   181,596 4.94 %     186,629 5.35 %   181,856 4.96 %
    Total Interest-Bearing Liabilities   7,326,986 2.28 %   7,147,945 1.88 %   5,572,294 0.24 %     6,977,046 1.84 %   5,641,155 0.22 %
    Noninterest-bearing deposits   2,519,184     2,580,842     2,746,258       2,592,373     2,701,458  
    Other liabilities   211,447     193,292     152,208       202,438     132,431  
    Shareholders' equity   1,249,441     1,234,834     1,063,334       1,215,433     1,078,038  
    Total Noninterest-Bearing Funding Sources   3,980,072     4,008,968     3,961,800       4,010,244     3,911,927  
    Total Liabilities and Shareholders' Equity $ 11,307,058   $ 11,156,913   $ 9,534,094     $ 10,987,290   $ 9,553,082  
                           
    Net Interest Margin (FTE) (annualized)(1)   3.76 %   3.85 %   3.76 %     3.87 %   3.45 %
                                     


    FIRST COMMONWEALTH FINANCIAL CORPORATION  
    CONSOLIDATED FINANCIAL DATA      
    Unaudited      
    (dollars in thousands)      
      September 30, June 30, September 30,
        2023     2023     2022  
    Loan and Lease Portfolio Detail      
    Commercial Loan and Lease Portfolio:      
    Commercial, financial, agricultural and other $ 1,305,905   $ 1,347,842   $ 1,125,429  
    Commercial real estate   3,050,084     3,004,962     2,393,276  
    Equipment Finance loans and leases   190,116     154,152     43,777  
    Real estate construction   508,875     474,720     326,539  
    Total Commercial   5,054,980     4,981,676     3,889,021  
           
    Consumer Loan Portfolio:      
    Closed-end mortgages   1,915,506     1,858,660     1,631,655  
    Home equity lines of credit   499,275     505,449     522,249  
    Real estate construction   66,672     100,079     96,151  
    Total Real Estate - Consumer   2,481,453     2,464,188     2,250,055  
           
    Auto & RV loans   1,285,380     1,272,557     1,120,838  
    Direct installment   27,888     28,881     33,528  
    Personal lines of credit   48,718     49,168     51,514  
    Student loans   3,306     3,366     3,961  
    Total Other Consumer   1,365,292     1,353,972     1,209,841  
    Total Consumer Portfolio   3,846,745     3,818,160     3,459,896  
      Total Portfolio Loans and Leases   8,901,725     8,799,836     7,348,917  
    Loans held for sale   33,127     16,300     13,811  
      Total Loans and Leases $ 8,934,852   $ 8,816,136   $ 7,362,728  
           
           
      September 30, June 30, September 30,
        2023     2023     2022  
    ASSET QUALITY DETAIL      
    Nonperforming Loans and Leases:      
    Loans and leases on nonaccrual basis * $ 25,902   $ 29,322   $ 29,476  
    Loans on nonaccrual basis - Centric acquisition   22,022     18,687      
    Troubled debt restructured loans on accrual basis *           6,216  
    Total Nonperforming Loans and Leases $ 47,924   $ 48,009   $ 35,692  
    Other real estate owned ("OREO")   765     324     322  
    Repossessions ("Repos")   762     1,004     600  
    Total Nonperforming Assets $ 49,451   $ 49,337   $ 36,614  
    Loans past due in excess of 90 days and still accruing   2,484     2,474     1,548  
    Classified loans and leases   66,272     76,419     45,656  
    Criticized loans and leases   193,192     207,071     139,258  
           
    Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos(4)   0.56 %   0.56 %   0.50 %
    Allowance for credit losses $ 134,337   $ 133,546   $ 96,093  
    *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 Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023     2023     2022       2023     2022  
    Net Charge-offs (Recoveries):            
    Commercial, financial, agricultural and other $ 1,664   $ 6,582   $ 698     $ 8,750   $ 1,523  
    Real estate construction           (9 )         (9 )
    Commercial real estate   166     1,423     1,003       1,547     1,536  
    Residential real estate   247     (32 )   36       256     120  
    Loans to individuals   1,899     692     733       3,261     1,953  
    Net Charge-offs $ 3,976   $ 8,665   $ 2,461     $ 13,814   $ 5,123  
                 
    Net charge-offs as a percentage of average loans and leases outstanding (annualized)(4)   0.18 %   0.40 %   0.13 %     0.21 %   0.10 %
    Provision for credit losses as a percentage of net charge-offs   148.01 %   32.20 %   240.67 %     43.62 %   233.96 %
    Provision for credit losses $ 5,885   $ 2,790   $ 5,923     $ 6,025   $ 11,986  


    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES      
    Note: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons.
                 
    (1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%.
    (2) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.
    (3) Includes held for sale loans.    
    (4) Excludes held for sale loans.    
      For the Three Months Ended   For the Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023   2023   2022     2023   2022
                 
    Interest income $ 139,885 $ 131,267 $ 85,700   $ 385,741 $ 233,672
    Adjustment to fully taxable equivalent basis (1)   313   305   261     923   759
    Interest income adjusted to fully taxable equivalent basis (non-GAAP)   140,198   131,572   85,961     386,664   234,431
    Interest expense   42,128   33,443   3,340     95,802   9,478
    Net interest income, (FTE) (1) $ 98,070 $ 98,129 $ 82,621   $ 290,862 $ 224,953
                           


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)


    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES      
                 
      For the Three Months Ended   For the Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023     2023     2022       2023     2022  
                 
    Net Income $ 39,231   $ 42,781   $ 33,968     $ 112,236   $ 92,448  
    Intangible amortization   1,344     1,282     746       3,773     2,470  
    Tax benefit of amortization of intangibles   (282 )   (269 )   (157 )     (792 )   (519 )
    Net Income, adjusted for tax affected amortization of intangibles $ 40,293   $ 43,794   $ 34,557     $ 115,217   $ 94,399  
                 
    Average Tangible Equity:            
    Total shareholders' equity $ 1,249,441   $ 1,234,834   $ 1,063,334     $ 1,215,433   $ 1,078,038  
    Less: intangible assets   387,782     385,567     313,336       377,697     313,726  
    Tangible Equity   861,659     849,267     749,998       837,736     764,312  
    Less: preferred stock                      
    Tangible Common Equity $ 861,659   $ 849,267   $ 749,998     $ 837,736   $ 764,312  
                 
    (8)Return on Average Tangible Common Equity   18.55 %   20.68 %   18.28 %     18.39 %   16.51 %
                                     


      For the Three Months Ended   For the Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023     2023     2022       2023     2022  
                 
    Core Net Income:            
    Total Net Income $ 39,231   $ 42,781   $ 33,968     $ 112,236   $ 92,448  
    Net securities gains   103               103     (2 )
    Tax benefit of net securities gains   (22 )             (22 )    
    Merger and acquisition related expenses   379     (60 )   448       8,860     448  
    Tax benefit of merger and acquisition related expenses   (80 )   13     (94 )     (1,861 )   (94 )
    COVID-19 related           39           118  
    Tax benefit of COVID-19 related           (8 )         (25 )
    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 $ 39,611   $ 42,734   $ 34,353     $ 127,732   $ 92,811  
    Average Shares Outstanding Assuming Dilution   102,442,878     102,760,266     93,450,259       101,674,970     93,994,158  
    (6)Core Earnings per common share (diluted) $ 0.39   $ 0.42   $ 0.37     $ 1.26   $ 0.99  
                 
    Intangible amortization   1,344     1,282     746       3,773     2,470  
    Tax benefit of amortization of intangibles   (282 )   (269 )   (157 )     (792 )   (519 )
        Core Net Income, adjusted for tax affected amortization of intangibles $ 40,673   $ 43,747   $ 34,942     $ 130,713   $ 94,762  
                 
    (9)Core Return on Average Tangible Common Equity   18.73 %   20.66 %   18.48 %     20.86 %   16.58 %
                                     


    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)


    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES          
                 
      For the Three Months Ended   For the Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023     2023     2022       2023     2022  
    Core Return on Average Assets:            
    Total Net Income $ 39,231   $ 42,781   $ 33,968     $ 112,236   $ 92,448  
    Total Average Assets   11,307,058     11,156,913     9,534,094       10,987,290     9,553,082  
    Return on Average Assets   1.38 %   1.54 %   1.41 %     1.37 %   1.29 %
                 
    Core Net Income(5) $ 39,611   $ 42,734   $ 34,353     $ 127,732   $ 92,811  
    Total Average Assets   11,307,058     11,156,913     9,534,094       10,987,290     9,553,082  
    (7)Core Return on Average Assets   1.39 %   1.54 %   1.43 %     1.55 %   1.30 %
                                     


      For the Three Months Ended   For the Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023     2023     2022       2023     2022  
    Core Efficiency Ratio:            
    Total Noninterest Expense $ 67,413   $ 65,943   $ 59,901     $ 204,737   $ 171,304  
    Adjustments to Noninterest Expense:            
    Intangible amortization   1,344     1,282     746       3,773     2,470  
    Merger and acquisition related   379     (60 )   448       8,860     448  
    COVID-19 related           39           118  
    Branch consolidation related                     (104 )
      Noninterest Expense - Core $ 65,690   $ 64,721   $ 58,668     $ 192,104   $ 168,372  
                 
    Net interest income, (FTE) $ 98,070   $ 98,129   $ 82,621     $ 290,862   $ 224,953  
    Total noninterest income   24,826     24,523     25,914       72,312     74,399  
    Net securities gains   103               103     (2 )
    Total Revenue   122,999     122,652     108,535       363,277     299,350  
                 
    Adjustments to Revenue:            
    Derivative mark-to-market   35     81     6       27     395  
      Total Revenue - Core $ 122,964   $ 122,571   $ 108,529     $ 363,250   $ 298,955  
                 
    (10)Core Efficiency Ratio   53.42 %   52.80 %   54.06 %     52.88 %   56.32 %
                                     


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


    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES    
           
      September 30, June 30, September 30,
        2023     2023     2022  
    Tangible Equity:      
    Total shareholders' equity $ 1,240,531   $ 1,232,419   $ 1,022,575  
    Less: intangible assets   387,328     388,451     312,950  
    Tangible Equity   853,203     843,968     709,625  
    Less: preferred stock            
    Tangible Common Equity $ 853,203   $ 843,968   $ 709,625  
           
    Tangible Assets:      
    Total assets $ 11,421,988   $ 11,318,604   $ 9,578,630  
    Less: intangible assets   387,328     388,451     312,950  
    Tangible Assets $ 11,034,660   $ 10,930,153   $ 9,265,680  
           
    (12)Tangible Common Equity as a percentage of Tangible Assets   7.73 %   7.72 %   7.66 %
           
    Shares Outstanding at End of Period   102,184,652     102,444,915     93,377,064  
    (11)Tangible Book Value Per Common Share $ 8.35   $ 8.24   $ 7.60  


      For the Three Months Ended   For the Nine Months Ended
      September 30, June 30, September 30,   September 30, September 30,
        2023   2023     2022     2023   2022  
    Pre-tax pre-provision income:            
    Net interest income $ 97,757 $ 97,824   $ 82,360   $ 289,939 $ 224,194  
    Noninterest income   24,826   24,523     25,914     72,312   74,399  
    Noninterest expense   67,413   65,943     59,901     204,737   171,304  
    Pre-tax pre-provision income $ 55,170 $ 56,404   $ 48,373   $ 157,514 $ 127,289  
                 
    Net securities gains $ 103 $   $   $ 103 $ (2 )
    Merger and acquisition related expenses   379   (60 )   448     8,860   448  
    COVID-19 related         39       118  
    Branch consolidation               (104 )
    Core pre-tax pre-provision income $ 55,652 $ 56,344   $ 48,860   $ 166,477 $ 127,749  
                 
    Net charge-offs $ 3,976 $ 8,665   $ 2,461   $ 13,814 $ 5,123  

     





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    First Commonwealth Announces Third Quarter 2023 Earnings; Declares Quarterly Dividend INDIANA, Pa., Oct. 24, 2023 (GLOBE NEWSWIRE) - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2023. Financial Summary (dollars in thousands,For the Three Months Ended For the Nine …