FCF First Commonwealth Financial Corp

First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the fourth quarter and full year of 2023.

Financial Summary

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

(1) Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures can be found at the end of the financial statements which accompany this release.(2) Reserve build/(release) represents the net change in the Company's allowance for credit losses (ACL) from the prior period.        

Fourth Quarter 2023 Highlights

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

Profitability

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

Strong capital position

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

Asset quality

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

Full Year 2023 Highlights

Franchise Growth

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

Earnings

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

Profitability

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

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

Earnings

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

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

Net Interest Income and Net Interest Margin

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

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

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

Asset Quality

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

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

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

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

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

Noninterest Income and Noninterest Expense

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

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

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

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

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

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

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

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

Dividends and Capital

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

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at December 31, 2023 were 13.9%, 11.9%, 10.0% and 11.2%, respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full year 2023 on Wednesday, January 31, 2024 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-888-330-3181 conference ID # 4651379 or through the company’s web page, http://www.fcbanking.com/InvestorRelations. A replay of the call will be available approximately one hour following the conclusion of the conference by dialing 1-800-770-2030 and entering the conference ID # 4651379. A link to the webcast replay will also be accessible on the company’s webpage for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services company with 126 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh and Harrisburg, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.

Forward-Looking Statements

Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, and could be affected by many factors, including, but not limited to: (1) volatility and disruption in national and international financial markets; (2) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (3) inflation, interest rate, commodity price, securities market and monetary fluctuations; (4) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (5) the soundness of other financial institutions; (6) political instability; (7) impairment of First Commonwealth’s goodwill or other intangible assets; (8) acts of God or of war or terrorism; (9) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (10) changes in consumer spending, borrowings and savings habits; (11) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (12) technological changes; (13) acquisitions and integration of acquired businesses; (14) First Commonwealth’s ability to attract and retain qualified employees; (15) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (16) the ability to increase market share and control expenses; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (19) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (20) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Relations:Ron WahlCommunications and Media RelationsPhone: 724-463-6806E-mail: RWahl@fcbanking.com

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

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

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

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

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands)
	For the Three Months Ended													For the Years Ended
	December 31,		Yield/		September 30,		Yield/		December 31,		Yield/			December 31,		Yield/		December 31,		Yield/
	2023		Rate		2023		Rate		2022		Rate			2023		Rate		2022		Rate
NET INTEREST MARGIN
Assets
Loans and leases (FTE)(1)(3)	$	8,974,613	5.89	%	$	8,884,731	5.79	%	$	7,491,352	4.76	%		$	8,714,770	5.64	%	$	7,172,624	4.23	%
Securities and interest-bearing bank deposits (FTE)(1)		1,465,962	3.06	%		1,465,069	2.85	%		1,286,561	2.08	%			1,437,000	2.74	%		1,567,266	1.78	%
Total Interest-Earning Assets (FTE)(1)		10,440,575	5.49	%		10,349,800	5.37	%		8,777,913	4.36	%			10,151,770	5.23	%		8,739,890	3.79	%
Noninterest-earning assets		961,555				957,258				863,049					940,083				835,343
Total Assets	$	11,402,130			$	11,307,058			$	9,640,962				$	11,091,853			$	9,575,233
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits	$	5,540,364	1.90	%	$	5,581,623	1.67	%	$	4,884,236	0.29	%		$	5,508,182	1.46	%	$	4,970,835	0.11	%
Time deposits		1,217,356	3.81	%		1,054,216	3.48	%		345,749	0.57	%			972,735	3.28	%		352,622	0.34	%
Short-term borrowings		548,680	5.43	%		504,025	5.23	%		264,987	2.86	%			439,556	4.95	%		144,834	1.38	%
Long-term borrowings		186,860	5.75	%		187,122	5.94	%		181,333	4.96	%			186,687	5.45	%		181,724	4.96	%
Total Interest-Bearing Liabilities		7,493,260	2.57	%		7,326,986	2.28	%		5,676,305	0.58	%			7,107,160	2.03	%		5,650,015	0.31	%
Noninterest-bearing deposits		2,434,560				2,519,184				2,729,716					2,552,596				2,708,580
Other liabilities		213,492				211,447				193,685					205,224				147,871
Shareholders' equity		1,260,818				1,249,441				1,041,256					1,226,873				1,068,767
Total Noninterest-Bearing Funding Sources		3,908,870				3,980,072				3,964,657					3,984,693				3,925,218
Total Liabilities and Shareholders' Equity	$	11,402,130			$	11,307,058			$	9,640,962				$	11,091,853			$	9,575,233
Net Interest Margin (FTE) (annualized)(1)			3.65	%			3.76	%			3.99	%				3.81	%			3.58	%

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

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

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
Note: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons.
(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%.
(2)Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.
(3)Includes held for sale loans.
(4)Excludes held for sale loans.
	For the Three Months Ended							For the Years Ended
	December 31,		September 30,		December 31,			December 31,		December 31,
	2023		2023		2022			2023		2022
Interest income	$	144,257	$	139,885	$	96,281		$	529,998	$	329,953
Adjustment to fully taxable equivalent basis(1)		314		313		290			1,237		1,049
Interest income adjusted to fully taxable equivalent basis (non-GAAP)		144,571		140,198		96,571			531,235		331,002
Interest expense		48,520		42,128		8,254			144,322		17,732
Net interest income, (FTE)(1)	$	96,051	$	98,070	$	88,317		$	386,913	$	313,270

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

	For the Three Months Ended										For the Years Ended
	December 31,			September 30,			December 31,				December 31,			December 31,
		2023			2023			2022				2023			2022
Core Net Income:
Total Net Income	$	44,827		$	39,231		$	35,733			$	157,063		$	128,181
Net securities gains		—			103			—				103			(2	)
Tax benefit of net securities gains		—			(22	)		—				(22	)		—
Merger and acquisition related expenses		174			379			1,254				9,034			1,702
Tax benefit of merger and acquisition related expenses		(37	)		(80	)		(263	)			(1,897	)		(357	)
COVID-19 related		—			—			33				—			151
Tax benefit of COVID-19 related		—			—			(7	)			—			(32	)
Provision for credit losses - acquisition day 1 non-PCD		—			—			—				10,653			—
Tax benefit of provision for credit losses - acquisition day 1 non-PCD		—			—			—				(2,237	)		—
Branch consolidation related		—			—			—				—			(104	)
Tax benefit of branch consolidation related expenses		—			—			—				—			22
(5)Core net income	$	44,964		$	39,611		$	36,750			$	172,697		$	129,561
Average Shares Outstanding Assuming Dilution		102,264,768			102,442,878			93,489,398				101,822,201			93,887,447
(6)Core Earnings per common share (diluted)	$	0.44		$	0.39		$	0.39			$	1.70		$	1.38
Intangible amortization		1,210			1,344			726				4,983			3,196
Tax benefit of amortization of intangibles		(254	)		(282	)		(152	)			(1,046	)		(671	)
Core Net Income, adjusted for tax affected amortization of intangibles	$	45,920		$	40,673		$	37,324			$	176,634		$	132,086
(9)Core Return on Average Tangible Common Equity		20.85	%		18.73	%		20.32	%			20.86	%		17.49	%

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands, except per share data)
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
	For the Three Months Ended										For the Years Ended
	December 31,			September 30,			December 31,				December 31,			December 31,
		2023			2023			2022				2023			2022
Core Return on Average Assets:
Total Net Income	$	44,827		$	39,231		$	35,733			$	157,063		$	128,181
Total Average Assets		11,402,130			11,307,058			9,640,962				11,091,853			9,575,233
Return on Average Assets		1.56	%		1.38	%		1.47	%			1.42	%		1.34	%
Core Net Income(5)	$	44,964		$	39,611		$	36,750			$	172,697		$	129,561
Total Average Assets		11,402,130			11,307,058			9,640,962				11,091,853			9,575,233
(7)Core Return on Average Assets		1.56	%		1.39	%		1.51	%			1.56	%		1.35	%

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

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

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