FCF First Commonwealth Financial Corp

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,
		2024				2023				2023
Reported Results
Net income	$	37,549			$	44,827			$	30,224
Diluted earnings per share	$	0.37			$	0.44			$	0.30
Return on average assets		1.31	%			1.56	%			1.17	%
Return on average equity		11.40	%			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 ROAA		1.77	%			1.91	%			2.11	%
Return on average tangible common equity		16.51	%			20.78	%			15.75	%
Core return on average tangible common equity		16.54	%			20.85	%			23.42	%
Core efficiency ratio		55.05	%			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 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
	March 31,				December 31,				March 31,
		2024				2023				2023
SUMMARY RESULTS OF OPERATIONS
Net interest income	$	92,304			$	95,737			$	94,358
Provision for credit losses		4,238				(1,865	)			(2,650	)
Provision for credit losses — acquisition day 1 non-PCD		—				—				10,653
Noninterest income		23,988				24,297				22,963
Noninterest expense		65,573				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 assets		1.31	%			1.56	%			1.17	%
Core return on average assets (7)		1.31	%			1.56	%			1.75	%
Return on average assets, pre-provision, pre-tax		1.77	%			1.91	%			1.78	%
Core return on average assets, pre-provision, pre-tax		1.77	%			1.91	%			2.11	%
Return on average shareholders' equity		11.40	%			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 share		13.92				15.44				12.43
Cash dividends declared per common share		0.125				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 assets		11.4	%			11.5	%			11.0	%
Tangible common equity as a percent of tangible assets (12)		8.4	%			8.4	%			7.8	%
Leverage Ratio		10.2	%			10.0	%			10.2	%
Risk Based Capital - Tier I		12.2	%			11.9	%			11.5	%
Risk Based Capital - Total		14.3	%			13.9	%			13.8	%
Common Equity - Tier I		11.4	%			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,
		2024		2023			2023
INCOME STATEMENT
Interest income	$	145,462	$	144,257		$	114,589
Interest expense		53,158		48,520			20,231
Net Interest Income		92,304		95,737			94,358
Provision for credit losses		4,238		(1,865	)		(2,650	)
Provision for credit losses - acquisition day 1 non-PCD		—		—			10,653
Net Interest Income after Provision for Credit Losses		88,066		97,602			86,355
Net securities gains		—		—			—
Trust income		2,727		2,549			2,486
Service charges on deposit accounts		5,383		5,595			4,918
Insurance and retail brokerage commissions		2,246		2,457			2,552
Income from bank owned life insurance		1,294		1,211			1,227
Gain on sale of mortgage loans		1,328		776			652
Gain on sale of other loans and assets		2,051		1,740			2,086
Card-related interchange income		6,690		7,218			6,829
Derivative mark-to-market		12		(13	)		(89	)
Swap fee income		—		490			245
Other income		2,257		2,274			2,057
Total Noninterest Income		23,988		24,297			22,963
Salaries and employee benefits		35,324		36,232			34,264
Net occupancy		5,334		4,637			5,018
Furniture and equipment		4,480		4,372			4,238
Data processing		3,824		3,986			3,404
Pennsylvania shares tax		1,202		351			1,252
Advertising and promotion		1,319		1,061			1,663
Intangible amortization		1,264		1,210			1,147
Other professional fees and services		1,242		1,543			1,591
FDIC insurance		1,613		1,646			1,417
Litigation and operational losses		997		1,378			743
Loss on sale or write-down of assets		143		107			41
Merger and acquisition		114		174			8,541
Other operating expenses		8,717		8,483			8,062
Total Noninterest Expense		65,573		65,180			71,381
Income before Income Taxes		46,481		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 Period		102,303,974		102,114,664			103,193,127
Average Shares Outstanding Assuming Dilution		102,198,899		102,264,768			99,779,816

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
	March 31,				December 31,				March 31,
		2024				2023				2023
BALANCE SHEET (Period End)
Assets
Cash and due from banks	$	77,179			$	125,436			$	113,692
Interest-bearing bank deposits		233,188				21,557				282,110
Securities available for sale, at fair value		1,049,108				1,071,857				786,813
Securities held to maturity, at amortized cost		464,708				419,009				451,278
Loans held for sale		31,895				29,820				11,050
Loans and leases		8,999,870				8,968,761				8,656,945
Allowance for credit losses		(119,098	)			(117,718	)			(133,885	)
Net loans and leases		8,880,772				8,851,043				8,523,060
Goodwill and other intangibles		385,745				386,535				385,998
Other assets		571,813				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 deposits		637,908				629,138				547,015
Savings deposits		4,999,822				4,886,781				5,127,037
Time deposits		1,474,178				1,287,857				862,671
Total interest-bearing deposits		7,111,908				6,803,776				6,536,723
Total deposits		9,446,403				9,192,309				9,234,948
Short-term borrowings		546,541				597,835				278,978
Long-term borrowings		186,490				186,757				187,531
Total borrowings		733,031				784,592				466,509
Other liabilities		182,254				168,313				187,281
Shareholders' equity		1,332,720				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/
		2024	Rate			2023	Rate			2023	Rate
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 assets		938,121				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 deposits		1,386,959	4.21	%		1,217,356	3.81	%		682,144	2.34	%
Short-term borrowings		595,884	4.57	%		548,680	5.43	%		266,932	3.65	%
Long-term borrowings		186,597	5.76	%		186,860	5.75	%		185,367	5.06	%
Total Interest-Bearing Liabilities		7,724,096	2.77	%		7,493,260	2.57	%		6,446,529	1.27	%
Noninterest-bearing deposits		2,302,338				2,434,560				2,678,849
Other liabilities		169,683				213,492				202,476
Shareholders' equity		1,325,326				1,260,818				1,161,054
Total Noninterest-Bearing Funding Sources		3,797,347				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,
		2024			2023			2023
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 estate		3,090,950			3,053,152			2,991,930
Equipment Finance loans and leases		279,938			232,944			109,221
Real estate construction		520,320			541,633			422,831
Total Commercial		5,205,106			5,138,134			4,885,840
Consumer Loan Portfolio:
Closed-end mortgages		1,913,479			1,926,254			1,807,941
Home equity lines of credit		488,793			490,622			515,926
Real estate construction		39,047			56,102			119,071
Total Real Estate - Consumer		2,441,319			2,472,978			2,442,938
Auto & RV loans		1,277,212			1,277,969			1,244,874
Direct installment		26,731			27,167			30,381
Personal lines of credit		46,733			49,355			49,399
Student loans		2,769			3,158			3,513
Total Other Consumer		1,353,445			1,357,649			1,328,167
Total Consumer Portfolio		3,794,764			3,830,627			3,771,105
Total Portfolio Loans and Leases		8,999,870			8,968,761			8,656,945
Loans held for sale		31,895			29,820			11,050
Total Loans and Leases	$	9,031,765		$	8,998,581		$	8,667,995
	March 31,			December 31,			March 31,
		2024			2023			2023
ASSET QUALITY DETAIL
Nonperforming Loans and Leases:
Loans and leases on nonaccrual basis *	$	27,649		$	24,997		$	29,413
Loans on nonaccrual basis - Centric acquisition		14,797			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 accruing		1,699			9,436			1,440
Classified loans and leases		89,284			87,056			76,962
Criticized loans and leases		211,857			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,
		2024			2023			2023
Net Charge-offs (Recoveries):
Commercial, financial, agricultural and other	$	2,242		$	9,951		$	504
Real estate construction		(6	)		—			—
Commercial real estate		169			4,579			(42	)
Residential real estate		21			58			41
Loans to individuals		1,876			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-offs		98.51	%		(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,
		2024		2023		2023
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 expense		53,158		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,
		2024			2023			2023
Net Income	$	37,549		$	44,827		$	30,224
Intangible amortization		1,264			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 assets		386,040			386,896			359,431
Tangible Equity		939,286			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,
		2024			2023			2023
Core Net Income:
Total Net Income	$	37,549		$	44,827		$	30,224
Merger and acquisition related expenses		114			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 Dilution		102,198,899			102,264,768			99,779,816
(6) Core Earnings per common share (diluted)	$	0.37		$	0.44		$	0.45
Intangible amortization		1,264			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,
		2024			2023			2023
Core Return on Average Assets:
Total Net Income	$	37,549		$	44,827		$	30,224
Total Average Assets		11,521,443			11,402,130			10,488,908
Return on Average Assets		1.31	%		1.56	%		1.17	%
Core Net Income (5)	$	37,639		$	44,964		$	45,387
Total Average Assets		11,521,443			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,
		2024			2023			2023
Core Efficiency Ratio:
Total Noninterest Expense	$	65,573		$	65,180		$	71,381
Adjustments to Noninterest Expense:
Intangible amortization		1,264			1,210			1,147
Merger and acquisition related		114			174			8,541
Noninterest Expense - Core	$	64,195		$	63,796		$	61,693
Net interest income, (FTE)	$	92,627		$	96,051		$	94,663
Total noninterest income		23,988			24,297			22,963
Net securities gains		—			—			—
Total Revenue		116,615			120,348			117,626
Adjustments to Revenue:
Derivative mark-to-market		12			(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,
			2024			2023			2023
	Tangible Equity:
	Total shareholders' equity	$	1,332,720		$	1,314,274		$	1,225,014
	Less: intangible assets		385,745			386,535			385,998
	Tangible Equity		946,975			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 assets		385,745			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 Period		102,303,974			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,
		2024		2023		2023
Pre-tax pre-provision income:
Net interest income	$	92,304	$	95,737	$	94,358
Noninterest income		23,988		24,297		22,963
Noninterest expense		65,573		65,180		71,381
Pre-tax pre-provision income	$	50,719	$	54,854	$	45,940
Net securities gains	$	—	$	—	$	—
Merger and acquisition related expenses		114		174		8,541
Core pre-tax pre-provision income	$	50,833	$	55,028	$	54,481
Net charge-offs	$	4,302	$	16,338	$	1,173