falseFIRST COMMONWEALTH FINANCIAL CORP /PA/25-14285282024FY000071253700007125372024-07-232024-07-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 23, 2024
 
First Commonwealth Financial Corporation
(Exact name of registrant as specified in its charter)
 
Pennsylvania001-1113825-1428528
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer
Identification No.)
601 Philadelphia Street
Indiana, PA15701
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (724) 349-7220
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1.00 par valueFCFNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02Results of Operations and Financial Condition
On July 23, 2024, First Commonwealth Financial Corporation (the “Company”) issued a press release announcing financial results for the three and six month periods ended June 30, 2024. A copy of this press release and the related earnings tables are furnished as Exhibit 99.1 to this report and incorporated herein by reference.
Item 7.01Regulation FD Disclosure
On July 23, 2024, the Company announced a cash dividend of $0.13 per share of the Company’s common stock. The dividend declaration is included in the press release announcing financial results for the three and six month periods ended June 30, 2024. A copy of this press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.
Item 9.01Financial Statements and Exhibits
Exhibits
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 23, 2024
 
FIRST COMMONWEALTH FINANCIAL CORPORATION
By:   /s/ James R. Reske
Name: James R. Reske
Title: Executive Vice President, Chief Financial Officer and Treasurer


                                                
Exhibit 99.1

fcfimagea01a.jpg                    
FOR IMMEDIATE RELEASE

First Commonwealth Announces Second Quarter 2024 Earnings; Declares Quarterly Dividend

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

Financial Summary
(dollars in thousands,For the Three Months EndedFor the Six Months Ended
except per share data)June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Reported Results
Net income $37,088 $37,549 $42,781 $74,637 $73,005 
Diluted earnings per share$0.36 $0.37 $0.42 $0.73 $0.72 
Return on average assets1.28 %1.31 %1.54 %1.29 %1.36 %
Return on average equity11.10 %11.40 %13.90 %11.24 %12.29 %
Operating Results (non-GAAP)(1)
Core net income$37,070 $37,639 $42,734 $74,709 $88,121 
Core diluted earnings per share$0.36 $0.37 $0.42 $0.73 $0.87 
Core pre-tax pre-provision net revenue$54,381 $50,833 $56,344 $105,214 $110,825 
Provision expense$7,827 $4,238 $2,790 $12,065 $140 
Provision for credit losses - acquisition day 1 non-PCD————10,653
Net charge-offs$4,402 $4,302 $8,665 $8,704 $9,838 
Reserve build/(release)(2)
$4,556 $1,380 $(339)$5,936 $30,640 
Core return on average assets (ROAA)1.27 %1.31 %1.54 %1.29 %1.64 %
Core pre-tax pre-provision ROAA1.87 %1.77 %2.03 %1.82 %2.06 %
Return on average tangible common equity15.94 %16.51 %20.68 %16.22 %18.30 %
Core return on average tangible common equity15.93 %16.54 %20.66 %16.24 %21.99 %
Core efficiency ratio53.63 %55.05 %52.80 %54.33 %52.61 %
Net interest margin (FTE)3.57 %3.52 %3.85 %3.55 %3.93 %
(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.    
Second Quarter 2024 Highlights
•GAAP Net income of $37.1 million and diluted earnings per share of $0.36 represented a decrease of $0.5 million, or $0.01 per share, from the prior quarter and a decrease of $5.7 million, or $0.06 per share, from the second quarter of 2023
▪Core pre-tax pre-provision net revenue (PPNR)(1) totaled $54.4 million, an increase of $3.5 million from the previous quarter but a decrease of $2.0 million from the second quarter of 2023

                                                
•Net interest income (FTE) of $95.3 million increased $2.7 million from the previous quarter but decreased $2.8 million from the second quarter of 2023
•Noninterest income (excluding securities gains and losses) of $25.2 million increased $1.2 million from the previous quarter and $0.7 from the second quarter of 2023 due in part to higher wealth management sales and card related interchange income
•Noninterest expense (excluding loss on early redemption of subordinated debt and merger-related expense) of $65.4 million which was unchanged from the previous quarter
•Average deposits increased $199.9 million, or 8.7% annualized, compared to the prior quarter
▪End of period deposits decreased $37.5 million, or 1.6% annualized, compared to the prior quarter
•Total loans increased $13.9 million, or 0.6% annualized, from the previous quarter, driven by $36.8 million of growth in equipment finance loans
•The loan-to-deposit ratio increased to 96.1% at the end of the second quarter of 2024 as compared to 95.6% in the previous quarter
•Total shareholder’s equity increased $29.8 million from the previous quarter due to a $23.8 million increase in retained earnings and a $5.7 million improvement in accumulated other comprehensive income (AOCI) due in part to the sale of $75.1 million in available for sale investment securities
▪Tangible book value per share increased $0.30, or 13.0% annualized, from the previous quarter
▪AOCI as a percentage of tangible common equity was 11.6% in the second quarter of 2024 as compared to 12.6% in the previous quarter
•First Commonwealth Bank (the Bank) has been recognized for the sixth consecutive year by Forbes as one of the World’s Best Banks for 2024
Profitability
•The core efficiency ratio(1) of 53.6% improved 142 basis points from the previous quarter
•The return on average assets (ROA) decreased 3 basis points to 1.28% compared to previous quarter
▪The core return on average assets(1) decreased 4 basis points to 1.27% compared to the previous quarter
•Core pre-tax pre-provision ROA(1) for the quarter ended June 30, 2024 increased 10 basis points to 1.87% as compared to 1.77% in the prior quarter and 2.03% in the second quarter of 2023
•The net interest margin of 3.57% increased 5 basis points compared to the prior quarter and decreased 28 basis points as compared to the second quarter of 2023
▪The recognition of deferred interest upon the payoff of a previously nonaccrual loan had a positive impact on the net interest margin of two basis points in the second quarter of 2024
▪The retention of approximately $200 million of additional cash on the Bank’s balance sheet had a negative impact on the net interest margin of six basis points in the second quarter of 2024 as compared to three basis points in the prior quarter
▪Purchasing accounting marks contributed eight basis points to the margin in the second quarter of 2024, unchanged from the prior quarter

                                                
◦On June 1, 2024, the Bank retired $50 million of variable rate subordinate corporate debentures with an interest rate of 7.45%. This transaction is expected to improve the net interest margin by approximately three basis points beginning in the third quarter of 2024.
◦During the second quarter of 2024, security gains and losses included a $5.6 million gain from the conversion of Visa Inc. class B shares.
◦During the second quarter of 2024, the Bank sold approximately $75 million of investment securities yielding 2.17% for a loss of $5.5 million and reinvested the proceeds into approximately $75 million of investments securities yielding 5.49%. This transaction is expected to improve the net interest margin by 2 basis points beginning in the third quarter of 2024.
Asset quality
•The provision for credit losses was $7.8 million, an increase of $3.6 million compared to the previous quarter
•The allowance for credit losses as a percentage of end-of-period loans was 1.37%, an increase of five basis points from the previous quarter
•Total criticized loans increased $29.8 million from the previous quarter
▪Total nonperforming loans of $57.1 million increased $14.7 million from the previous quarter, including $11.1 million of acquired loans that were transferred to nonaccrual status.
•Net charge-offs on loans totaled $4.4 million, an increase of $0.1 million from the previous quarter
▪Net charge-offs as a percentage of average loans (annualized) was 0.20% in the second quarter of 2024 as compared to 0.19% in the previous quarter
Strong capital and liquidity positions
•On June 1, 2024, the Bank retired $50 million of variable rate subordinate corporate debentures that were included in Tier II regulatory capital. This action reduced the Bank’s Total Risk Based Capital by approximately 44 basis points; however, the actual Total Capital Ratio decreased by only eight basis points from the previous quarter due to strong organic capital generation
•The Bank-level Total Capital ratio was 13.1% at June 30, 2024, which represents $292.4 million in excess capital above the regulatory “well capitalized” requirement of 10.0%
•On April 23, 2024, the Board of Directors authorized a 4.0% increase in the quarterly cash dividend to shareholders
•There were 22,961 shares repurchased during the second quarter of 2024 at a weighted average price of $12.48. The remaining capacity under the current program was $17.1 million as of June 30, 2024.
“I’m excited to report that our second quarter results demonstrated the core earnings power of our community-focused regional banking model,” stated T. Michael Price, President and Chief Executive Officer. “It seems we may have turned the corner with NIM compression this quarter and we continue to see pockets of loan demand in our new markets in Pennsylvania and Ohio, while our legacy markets remain a rich source of core deposit growth.” Price continued, “As we move forward, we will continue to adapt to meet the evolving needs of our neighbors and their businesses and help them navigate their financial future.”
Earnings
GAAP Net income for the second quarter of 2024 was $37.1 million, or $0.36 per share, compared to $37.5 million, or $0.37 per share in the first quarter of 2024, and $42.8 million, or $0.42 per share for the second quarter of 2023.

                                                
Net Interest Income and Net Interest Margin
Net interest income (FTE) of $95.3 million increased $2.7 million from the previous quarter and decreased $2.8 million from the prior year quarter. The increase from the previous quarter was primarily due to a five basis point expansion in the net interest margin and a $152.7 million increase in interest earning assets.
The net interest margin for the second quarter of 2024 was 3.57%, an increase of five basis points from the previous quarter and a decrease of 28 basis points from the second quarter of 2023. The increase from the previous quarter was due primarily to a 12 basis point increase in the yield on loans and an 18 basis point increase in the yield on securities, partially offset by a 10 basis point increase in the cost of deposits. The total cost of funds was 2.20% in the second quarter of 2024, which represents an increase of seven basis points from the previous quarter.
Total average deposits grew $199.9 million in the second quarter of 2024 as compared to the previous quarter. Average time deposits grew $117.6 million and interest-bearing demand and savings deposits grew $74.4 million.
Total average investment securities and interest bearing bank deposits grew $134.1 million and total average loans grew $18.6 million in the second quarter of 2024 as compared to the previous quarter.
Asset Quality
Provision expense in the second quarter of 2024 totaled $7.8 million as compared to $4.2 million in the previous quarter. The increase in the provision expense from the previous quarter was the result of a $5.8 million increase in reserves for individually analyzed loans primarily driven by a $14.7 million increase in nonperforming loans.
The allowance for credit losses as a percentage of end-of-period loans in the second quarter of 2024 was 1.37% as compared to 1.32% in the previous quarter.
At June 30, 2024, nonperforming loans totaled $57.1 million, an increase of $14.7 million from the previous quarter. The increase in nonperforming loans was primarily due to the migration of $11.1 million in loans acquired in the Centric acquisition into nonaccrual status.
Nonperforming loans represented 0.63% of total loans for the period ended June 30, 2024 as compared to 0.47% and 0.54% for the periods ended March 31, 2024 and June 30, 2023, respectively.
During the second quarter of 2024, net charge-offs were $4.4 million as compared to $4.3 million in the previous quarter and $8.7 million in the second quarter of 2023.
Net charge-offs as a percentage of average loans (annualized) were 0.20%, 0.19% and 0.40% for the periods ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.
Noninterest Income and Noninterest Expense
Noninterest income (excluding securities gains and losses) totaled $25.2 million for the second quarter of 2024, as compared to $24.0 million for the first quarter of 2024 and $24.5 million for the second quarter of 2023.
The $1.2 million increase from the previous quarter was primarily due to a $0.6 million increase in wealth management services, a $0.4 million increase in card-related interchange income and a $0.3 million increase in gain on sale of mortgage loans, partially offset by a $0.6 million decrease in gain on sale of Small Business Administration (SBA) loans.
During the second quarter of 2024, security gains and losses included a $5.6 million gain from the conversion of Visa Inc. class B shares, of which $5.6 million was realized through shares held at fair value at quarter-end. This gain was offset by a loss of $5.5 million on the sale of $75.1 million in investment securities.
Noninterest expense (excluding losses on the early redemption of subordinated debt and merger-related expense) of $65.4 million was unchanged from the previous quarter. Offsetting changes in comparison with the prior quarter were primarily due to a $0.5 million decrease in occupancy expense, a $0.5 million decrease in operational losses and a $0.4 million decrease in advertising and promotion expense, offset by a $2.0 million increase in salaries and

                                                
benefits (primarily driven by a $1.0 million increase in hospitalization expense and a $1.2 million incentive accrual reversals in the prior quarter).
The core efficiency ratio was 53.6% during the second quarter of 2024 as compared to 55.1% in the previous quarter and 52.8% in the second quarter of 2023.
Full time equivalent staff was 1,472 at June 30, 2024, 1,465 at March 31, 2024, and 1,483 at June 30, 2023.
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 second quarter of 2023. The cash dividend is payable on August 16, 2024 to shareholders of record as of August 2, 2024. This dividend represents a 3.1% projected annual yield utilizing the July 22, 2024 closing market price of $16.62.
First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at June 30, 2024 were 14.2%, 12.5%, 10.2% and 11.7%, 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 second quarter of 2024 on Wednesday, July 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 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 124 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh and Harrisburg, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The Company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.
Forward-Looking Statements
Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, and could be affected by many factors, including, but not limited to: (1) volatility and disruption in national and international financial markets; (2) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (3) inflation, interest rate, commodity price, securities market and monetary fluctuations; (4) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (5) the soundness of other financial institutions; (6)

                                                
political instability; (7) impairment of First Commonwealth’s goodwill or other intangible assets; (8) acts of God or of war or terrorism; (9) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (10) changes in consumer spending, borrowings and savings habits; (11) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (12) technological changes; (13) acquisitions and integration of acquired businesses; (14) First Commonwealth’s ability to attract and retain qualified employees; (15) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (16) the ability to increase market share and control expenses; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (19) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (20) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.




Media Relations:
Ron Wahl
Communications and Media Relations
Phone: 724-463-6806
E-mail: RWahl@fcbanking.com

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

                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
SUMMARY RESULTS OF OPERATIONS
Net interest income$94,992 $92,304 $97,824 $187,296 $192,182 
Provision for credit losses7,827 4,238 2,790 12,065 140 
Provision for credit losses — acquisition day 1 non-PCD— — — — 10,653 
Noninterest income25,210 23,988 24,523 49,198 47,486 
Noninterest expense65,798 65,573 65,943 131,371 137,324 
Net income 37,088 37,549 42,781 74,637 73,005 
Core net income (5)
37,070 37,639 42,734 74,709 88,121 
Earnings per common share (diluted)$0.36 $0.37 $0.42 $0.73 $0.72 
Core earnings per common share (diluted) (6)
$0.36 $0.37 $0.42 $0.73 $0.87 
KEY FINANCIAL RATIOS
Return on average assets1.28 %1.31 %1.54 %1.29 %1.36 %
Core return on average assets (7)
1.27 %1.31 %1.54 %1.29 %1.64 %
Return on average assets, pre-provision, pre-tax1.87 %1.77 %2.03 %1.82 %1.91 %
Core return on average assets, pre-provision, pre-tax1.87 %1.77 %2.03 %1.82 %2.06 %
Return on average shareholders' equity11.10 %11.40 %13.90 %11.24 %12.29 %
Return on average tangible common equity (8)
15.94 %16.51 %20.68 %16.22 %18.30 %
Core return on average tangible common equity (9)
15.93 %16.54 %20.66 %16.24 %21.99 %
Core efficiency ratio (2)(10)
53.63 %55.05 %52.80 %54.33 %52.61 %
Net interest margin (FTE) (1)
3.57 %3.52 %3.85 %3.55 %3.93 %
Book value per common share$13.32 $13.03 $12.03 
Tangible book value per common share (11)
9.56 9.26 8.24 
Market value per common share13.81 13.92 12.65 
Cash dividends declared per common share0.130 0.125 0.125 0.255 0.245 
ASSET QUALITY RATIOS
Nonperforming loans and leases as a percent of end-of-period loans and leases(3)
0.63 %0.47 %0.54 %
Nonperforming assets as a percent of total assets (3)
0.51 %0.38 %0.44 %
Net charge-offs as a percent of average loans and leases (annualized) (4)
0.20 %0.19 %0.40 %
Allowance for credit losses as a percent of nonperforming loans and leases (4)
216.48 %280.59 %278.17 %
Allowance for credit losses as a percent of end-of-period loans and leases (4)
1.37 %1.32 %1.52 %
CAPITAL RATIOS
Shareholders' equity as a percent of total assets11.7 %11.4 %10.9 %
Tangible common equity as a percent of tangible assets (12)
8.7 %8.4 %7.7 %
Leverage Ratio10.2 %10.2 %9.8 %
Risk Based Capital - Tier I12.5 %12.2 %11.5 %
Risk Based Capital - Total14.2 %14.3 %13.7 %
Common Equity - Tier I11.7 %11.4 %10.8 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
INCOME STATEMENT
   Interest income$150,682 $145,462 $131,267 $296,144 $245,856 
   Interest expense55,690 53,158 33,443 108,848 53,674 
Net Interest Income94,992 92,304 97,824 187,296 192,182 
   Provision for credit losses7,827 4,238 2,790 12,065 140 
   Provision for credit losses - acquisition day 1 non-PCD— — — — 10,653 
Net Interest Income after Provision for Credit Losses87,165 88,066 95,034 175,231 181,389 
   Net securities losses(5,535)— — (5,535)— 
   Gain on VISA exchange5,558 — — 5,558 — 
   Trust income2,821 2,727 2,532 5,548 5,018 
   Service charges on deposit accounts5,546 5,383 5,324 10,929 10,242 
   Insurance and retail brokerage commissions2,709 2,246 2,314 4,955 4,866 
   Income from bank owned life insurance1,371 1,294 1,195 2,665 2,422 
   Gain on sale of mortgage loans1,671 1,328 1,253 2,999 1,905 
   Gain on sale of other loans and assets1,408 2,051 1,891 3,459 3,977 
   Card-related interchange income7,137 6,690 7,372 13,827 14,201 
Derivative mark-to-market— 12 81 12 (8)
Swap fee income— — 332 — 577 
   Other income2,524 2,257 2,229 4,781 4,286 
Total Noninterest Income25,210 23,988 24,523 49,198 47,486 
   Salaries and employee benefits37,320 35,324 36,735 72,644 70,999 
   Net occupancy4,822 5,334 4,784 10,156 9,802 
   Furniture and equipment 4,278 4,480 4,284 8,758 8,522 
   Data processing3,840 3,824 3,763 7,664 7,167 
   Pennsylvania shares tax1,126 1,202 1,173 2,328 2,425 
   Advertising and promotion 898 1,319 1,327 2,217 2,990 
   Intangible amortization1,169 1,264 1,282 2,433 2,429 
   Other professional fees and services1,286 1,242 1,182 2,528 2,773 
   FDIC insurance1,286 1,613 1,277 2,899 2,694 
   Litigation and operational losses494 997 894 1,491 1,637 
   Loss on sale or write-down of assets77 143 6 220 47 
   Loss on early redemption of subordinated debt369 — — 369 — 
   Merger and acquisition— 114 (60)114 8,481 
   Other operating expenses8,833 8,717 9,296 17,550 17,358 
Total Noninterest Expense65,798 65,573 65,943 131,371 137,324 
Income before Income Taxes46,577 46,481 53,614 93,058 91,551 
   Income tax provision 9,489 8,932 10,833 18,421 18,546 
Net Income$37,088 $37,549 $42,781 $74,637 $73,005 
Shares Outstanding at End of Period102,297,847102,303,974102,444,915102,297,847102,444,915
Average Shares Outstanding Assuming Dilution102,287,598102,198,899102,760,266102,238,489101,281,899


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
June 30,March 31,June 30,
202420242023
BALANCE SHEET (Period End)
Assets
   Cash and due from banks$109,907 $77,179 $123,095 
   Interest-bearing bank deposits78,386 233,188 325,774 
   Securities available for sale, at fair value1,101,154 1,049,108 784,503 
   Securities held to maturity, at amortized cost453,820 464,708 439,922 
   Loans held for sale50,769 31,895 16,300 
     Loans and leases8,994,890 8,999,870 8,799,836 
     Allowance for credit losses(123,654)(119,098)(133,546)
   Net loans and leases8,871,236 8,880,772 8,666,290 
   Goodwill and other intangibles384,854 385,745 388,451 
   Other assets576,747 571,813 574,269 
Total Assets$11,626,873 $11,694,408 $11,318,604 
Liabilities and Shareholders' Equity
   Noninterest-bearing demand deposits$2,304,830 $2,334,495 $2,624,344 
     Interest-bearing demand deposits619,877 637,908 611,156 
     Savings deposits4,955,718 4,999,822 4,935,124 
     Time deposits1,528,496 1,474,178 975,654 
   Total interest-bearing deposits7,104,091 7,111,908 6,521,934 
   Total deposits9,408,921 9,446,403 9,146,278 
     Short-term borrowings537,613 546,541 542,839 
     Long-term borrowings136,581 186,490 187,276 
   Total borrowings674,194 733,031 730,115 
   Other liabilities181,253 182,254 209,792 
   Shareholders' equity1,362,505 1,332,720 1,232,419 
Total Liabilities and Shareholders' Equity$11,626,873 $11,694,408 $11,318,604 



                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
For the Three Months EndedFor the Six Months Ended
June 30,Yield/March 31,Yield/June 30,Yield/June 30,Yield/June 30,Yield/
2024Rate2024Rate2023Rate2024Rate2023Rate
NET INTEREST MARGIN
Assets
Loans and leases (FTE)(1)(3)
$9,017,288 6.06 %$8,998,649 5.95 %$8,689,021 5.58 %$9,007,969 6.01 %$8,496,305 5.43 %
Securities and interest-bearing bank deposits (FTE) (1)
1,718,769 3.52 %1,584,673 3.23 %1,535,136 2.77 %1,651,720 3.38 %1,408,014 2.51 %
Total Interest-Earning Assets (FTE) (1)
10,736,057 5.66 %10,583,322 5.54 %10,224,157 5.16 %10,659,689 5.60 %9,904,319 5.02 %
Noninterest-earning assets959,103 938,121 932,756 948,612 920,437 
Total Assets$11,695,160 $11,521,443 $11,156,913 $11,608,301 $10,824,756 
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits$5,629,028 2.20 %$5,554,656 2.11 %$5,595,336 1.35 %$5,591,841 2.16 %$5,454,494 1.13 %
Time deposits1,504,544 4.35 %1,386,959 4.21 %930,447 3.03 %1,445,752 4.28 %806,981 2.74 %
Short-term borrowings545,551 4.67 %595,884 4.57 %434,783 4.79 %570,717 4.62 %351,321 4.36 %
Long-term borrowings170,963 5.52 %186,597 5.76 %187,379 5.03 %178,780 5.65 %186,378 5.04 %
Total Interest-Bearing Liabilities7,850,086 2.85 %7,724,096 2.77 %7,147,945 1.88 %7,787,090 2.81 %6,799,174 1.59 %
Noninterest-bearing deposits2,310,274 2,302,338 2,580,842 2,306,306 2,629,575 
Other liabilities190,440 169,683 193,292 180,062 197,860 
Shareholders' equity1,344,360 1,325,326 1,234,834 1,334,843 1,198,147 
Total Noninterest-Bearing Funding Sources3,845,074 3,797,347 4,008,968 3,821,211 4,025,582 
Total Liabilities and Shareholders' Equity$11,695,160 $11,521,443 $11,156,913 $11,608,301 $10,824,756 
Net Interest Margin (FTE) (annualized)(1)
3.57 %3.52 %3.85 %3.55 %3.93 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
June 30,March 31,June 30,
202420242023
Loan and Lease Portfolio Detail
Commercial Loan and Lease Portfolio:
Commercial, financial, agricultural and other$1,312,816 $1,313,898 $1,347,842 
Commercial real estate3,077,013 3,090,950 3,004,962 
Equipment Finance loans and leases316,700 279,938 154,152 
Real estate construction523,595 520,320 474,720 
Total Commercial5,230,124 5,205,106 4,981,676 
Consumer Loan Portfolio:
Closed-end mortgages1,902,173 1,913,479 1,858,660 
Home equity lines of credit492,133 488,793 505,449 
Real estate construction24,460 39,047 100,079 
Total Real Estate - Consumer2,418,766 2,441,319 2,464,188 
Auto & RV loans1,270,044 1,277,212 1,272,557 
Direct installment26,807 26,731 28,881 
Personal lines of credit46,932 46,733 49,168 
Student loans2,217 2,769 3,366 
Total Other Consumer1,346,000 1,353,445 1,353,972 
Total Consumer Portfolio3,764,766 3,794,764 3,818,160 
Total Portfolio Loans and Leases8,994,890 8,999,870 8,799,836 
Loans held for sale50,769 31,895 16,300 
Total Loans and Leases$9,045,659 $9,031,765 $8,816,136 
June 30,March 31,June 30,
202420242023
ASSET QUALITY DETAIL
Nonperforming Loans and Leases:
Loans and leases on nonaccrual basis$31,443 $27,649 $29,322 
Loans on nonaccrual basis - Centric acquisition25,676 14,797 18,687 
       Total Nonperforming Loans and Leases$57,119 $42,446 $48,009 
Other real estate owned ("OREO")484 368 324 
Repossessions ("Repos")1,456 1,442 1,004 
       Total Nonperforming Assets$59,059 $44,256 $49,337 
Loans past due in excess of 90 days and still accruing1,753 1,699 2,474 
Classified loans and leases103,111 89,284 76,419 
Criticized loans and leases241,611 211,857 207,071 
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4)
0.66 %0.49 %0.56 %
Allowance for credit losses$123,654 $119,098 $133,546 

                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Net Charge-offs (Recoveries):
       Commercial, financial, agricultural and other$2,485 $2,242 $6,582 $4,727 $7,086 
       Real estate construction35 (6)— 29 — 
       Commercial real estate331 169 1,423 500 1,381 
       Residential real estate64 21 (32)85 9 
       Loans to individuals1,487 1,876 692 3,363 1,362 
Net Charge-offs$4,402 $4,302 $8,665 $8,704 $9,838 
Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4)
0.20 %0.19 %0.40 %0.19 %0.23 %
Provision for credit losses as a percentage of net charge-offs177.81 %98.51 %32.20 %138.61 %1.42 %
Provision for credit losses$7,827 $4,238 $2,790 $12,065 $140 
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 EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Interest income$150,682 $145,462 $131,267 $296,144 $245,856 
Adjustment to fully taxable equivalent basis (1)
329 323 305 652 610 
Interest income adjusted to fully taxable equivalent basis (non-GAAP)151,011 145,785 131,572 296,796 246,466 
Interest expense55,690 53,158 33,443 108,848 53,674 
Net interest income, (FTE) (1)
$95,321 $92,627 $98,129 $187,948 $192,792 


                                                
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 EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Net Income$37,088 $37,549 $42,781 $74,637 $73,005 
Intangible amortization1,169 1,264 1,282 2,433 2,429 
Tax benefit of amortization of intangibles(245)(265)(269)(511)(510)
Net Income, adjusted for tax affected amortization of intangibles$38,012 $38,548 $43,794 $76,559 $74,924 
Average Tangible Equity:
   Total shareholders' equity$1,344,360 $1,325,326 $1,234,834 $1,334,843 $1,198,147 
   Less: intangible assets385,332 386,040 385,567 385,686 372,571 
       Tangible Equity959,028 939,286 849,267 949,157 825,576 
   Less: preferred stock— — — — — 
       Tangible Common Equity$959,028 $939,286 $849,267 $949,157 $825,576 
(8)Return on Average Tangible Common Equity
15.94 %16.51 %20.68 %16.22 %18.30 %

For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Core Net Income:
Total Net Income$37,088 $37,549 $42,781 $74,637 $73,005 
Net securities losses(23)— — (23)— 
Tax benefit of net securities gains5 — — 5 — 
Merger and acquisition related expenses— 114 (60)114 8,481 
Tax benefit of merger and acquisition related expenses— (24)13 (24)(1,781)
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
$37,070 $37,639 $42,734 $74,709 $88,121 
Average Shares Outstanding Assuming Dilution102,287,598102,198,899102,760,266102,238,489101,281,899
(6) Core Earnings per common share (diluted)
$0.36 $0.37 $0.42 $0.73 $0.87 
Intangible amortization1,169 1,264 1,282 2,433 2,429 
Tax benefit of amortization of intangibles(245)(265)(269)(511)(510)
Core Net Income, adjusted for tax affected amortization of intangibles$37,994 $38,638 $43,747 $76,631 $90,040 
(9) Core Return on Average Tangible Common Equity
15.93 %16.54 %20.66 %16.24 %21.99 %


                                                
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 EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Core Return on Average Assets:
Total Net Income$37,088 $37,549 $42,781 $74,637 $73,005 
Total Average Assets11,695,160 11,521,443 11,156,913 11,608,301 10,824,756 
Return on Average Assets1.28 %1.31 %1.54 %1.29 %1.36 %
Core Net Income (5)
$37,070 $37,639 $42,734 $74,709 $88,121 
Total Average Assets11,695,160 11,521,443 11,156,913 11,608,301 10,824,756 
(7) Core Return on Average Assets
1.27 %1.31 %1.54 %1.29 %1.64 %

For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Core Efficiency Ratio:
Total Noninterest Expense$65,798 $65,573 $65,943 $131,371 $137,324 
Adjustments to Noninterest Expense:
Intangible amortization1,169 1,264 1,282 2,433 2,429 
Merger and acquisition related— 114 (60)114 8,481 
Noninterest Expense - Core$64,629 $64,195 $64,721 $128,824 $126,414 
Net interest income, (FTE)$95,321 $92,627 $98,129 $187,948 $192,792 
Total noninterest income25,210 23,988 24,523 49,198 47,486 
Net securities gains(23)— — (23)— 
Total Revenue120,508 116,615 122,652 237,123 240,278 
Adjustments to Revenue:
Derivative mark-to-market— 12 81 12 (8)
Total Revenue - Core$120,508 $116,603 $122,571 $237,111 $240,286 
(10)Core Efficiency Ratio
53.63 %55.05 %52.80 %54.33 %52.61 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
June 30,March 31,June 30,
202420242023
Tangible Equity:
   Total shareholders' equity$1,362,505 $1,332,720 $1,232,419 
   Less: intangible assets384,854 385,745 388,451 
       Tangible Equity977,651 946,975 843,968 
   Less: preferred stock— — — 
       Tangible Common Equity$977,651 $946,975 $843,968 
Tangible Assets:
   Total assets $11,626,873 $11,694,408 $11,318,604 
   Less: intangible assets384,854 385,745 388,451 
       Tangible Assets$11,242,019 $11,308,663 $10,930,153 
(12)Tangible Common Equity as a percentage of Tangible Assets
8.70 %8.37 %7.72 %
   Shares Outstanding at End of Period102,297,847 102,303,974 102,444,915 
(11)Tangible Book Value Per Common Share
$9.56 $9.26 $8.24 

For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Pre-tax pre-provision income:
Net interest income$94,992 $92,304 $97,824 $187,296 $192,182 
Noninterest income25,21023,98824,52349,19847,486
Noninterest expense65,79865,57365,943131,371137,324
Pre-tax pre-provision income$54,404 $50,719 $56,404 $105,123 $102,344 
   Net securities losses$(23)$— $— $(23)$— 
Merger and acquisition related expenses—114(60)1148,481
Core pre-tax pre-provision income$54,381 $50,833 $56,344 $105,214 $110,825 
Net charge-offs$4,402 $4,302 $8,665 $8,704 $9,838 


v3.24.2
Document and Entity Information Document and Entity Information
Jul. 23, 2024
Document Information [Line Items]  
Entity Incorporation, State or Country Code PA
Amendment Flag false
Entity Registrant Name FIRST COMMONWEALTH FINANCIAL CORP /PA/
Document Fiscal Year Focus 2024
Entity Address, State or Province PA
Entity File Number 001-11138
Entity Tax Identification Number 25-1428528
Document Type 8-K
Entity Address, Address Line One 601 Philadelphia Street
Entity Address, City or Town Indiana,
Entity Address, Postal Zip Code 15701
Document Period End Date Jul. 23, 2024
City Area Code 724
Local Phone Number 349-7220
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Document Fiscal Period Focus FY
Entity Central Index Key 0000712537
Title of 12(b) Security Common Stock, $1.00 par value
Trading Symbol FCF
Security Exchange Name NYSE
First Commonwealth Finan... (NYSE:FCF)
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