FCF First Commonwealth Financial Corp

First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2024.

Financial Summary

(dollars in thousands,		For the Three Months Ended												For the Nine Months Ended
except per share data)		September 30,				June 30,				September 30,				September 30,				September 30,
			2024				2024				2023				2024				2023
Reported Results
Net income		$	32,086			$	37,088			$	39,231			$	106,723			$	112,236
Diluted earnings per share		$	0.31			$	0.36			$	0.38			$	1.04			$	1.10
Return on average assets			1.08	%			1.28	%			1.38	%			1.22	%			1.37	%
Return on average equity			9.19	%			11.10	%			12.46	%			10.54	%			12.35	%
Operating Results (non-GAAP)(1)
Core net income		$	31,933			$	37,070			$	39,611			$	106,642			$	127,732
Core diluted earnings per share		$	0.31			$	0.36			$	0.39			$	1.04			$	1.26
Core pre-tax pre-provision net revenue		$	50,949			$	54,381			$	55,652			$	156,163			$	166,477
Provision expense		$	10,615			$	7,827			$	5,885			$	22,680			$	6,025
Provision for credit losses - acquisition day 1 non-PCD		$	—			$	—			$	—			$	—			$	10,653
Net charge-offs		$	8,785			$	4,402			$	3,976			$	17,489			$	13,814
Reserve build/(release)(2)		$	2,458			$	4,556			$	791			$	8,394			$	31,431
Core return on average assets (ROAA)			1.08	%			1.27	%			1.39	%			1.22	%			1.55	%
Core pre-tax pre-provision ROAA			1.72	%			1.87	%			1.95	%			1.79	%			2.03	%
Return on average tangible common equity			13.09	%			15.94	%			18.55	%			15.13	%			18.39	%
Core return on average tangible common equity			13.02	%			15.93	%			18.73	%			15.12	%			20.86	%
Core efficiency ratio			56.66	%			53.63	%			53.42	%			55.12	%			52.88	%
Net interest margin (FTE)			3.56	%			3.57	%			3.76	%			3.55	%			3.87	%
(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.

Third Quarter 2024 Highlights

• Net income of $32.1 million and diluted earnings per share of $0.31 represented a decrease of $5.0 million, or $0.05 per share, from the prior quarter and a decrease of $7.1 million, or $0.07 per share, from the third quarter of 2023
• Core pre-tax pre-provision net revenue (PPNR)(1) totaled $50.9 million, a decrease of $3.4 million from the previous quarter and a decrease of $4.7 million from the third quarter of 2023
• Net interest income (FTE) of $96.9 million increased $1.5 million from the previous quarter and decreased $1.2 million from the third quarter of 2023
• Average deposits increased $76.4 million, or 3.2% annualized, compared to the prior quarter, due to a $71.4 million increase in average time deposits and a $28.8 million increase in interest-bearing demand and savings partially offset by a $23.8 million decrease in average noninterest-bearing deposits
  • End of period deposits increased $336.6 million, or 14.2% annualized, compared to the prior quarter
• Total loans decreased $33.4 million, or 1.5% annualized, from the previous quarter, driven by a $26.1 million decrease in consumer real estate loans
  • The loan-to-deposit ratio decreased 366 basis points to 92.5% at the end of the third quarter of 2024
• Noninterest income (excluding security gains and losses) of $24.5 million decreased $0.7 million from the previous quarter which reflects a $3.0 million decrease in card related interchange income resulting from a full quarter effect of the Durbin amendment
• Noninterest expense of $70.1 million increased $4.3 million from the previous quarter due primarily to elevated operational losses and employee-related salaries and benefits
• Total shareholders' equity increased $47.1 million from the previous quarter, primarily due to a $30.3 million increase in accumulated other comprehensive income (AOCI) resulting from the impact of lower interest rates on the fair value of the Company’s available for sale investment portfolio and interest rate swap agreements, combined with an $18.8 million increase in retained earnings
  • Tangible book value per share increased $0.47, or 19.7% annualized, from the previous quarter
  • AOCI as a percentage of tangible common equity decreased 350 basis points to 8.1% in the third quarter of 2024

Profitability

• Core pre-tax pre-provision ROA(1) for the quarter ended September 30, 2024 was 1.72% as compared to 1.87% in the prior quarter and 1.95% in the third quarter of 2023
• The net interest margin (FTE) of 3.56% decreased one basis point compared to the prior quarter and decreased 20 basis points as compared to the third quarter of 2023
  • Purchase accounting accretion contributed seven basis points to the margin in the third quarter, a decrease of one basis point from the prior quarter
  • The retention of $278 million of excess cash on the Bank’s balance sheet had a negative impact on the net interest margin of nine basis points in the third quarter
• The core efficiency ratio(1) of 56.66% increased 303 basis points from the previous quarter and increased 324 basis points compared to the third quarter of 2023
• The return on average assets (ROA) decreased 20 basis points to 1.08% compared to the previous quarter and decreased 30 basis points compared to the third quarter of 2023
  • The core return on average assets(1) decreased 19 basis points to 1.08% compared to the previous quarter and decreased 31 basis points compared to the third quarter of 2023

Asset quality

• The provision for credit losses was $10.6 million, an increase of $2.8 million compared to the previous quarter
• The allowance for credit losses as a percentage of end-of-period loans was 1.41%, an increase of four basis points from the previous quarter
• Total nonperforming loans of $74.7 million increased $17.6 million from the previous quarter
  • Approximately $23.8 million or 31.8% of nonperforming loans were acquired
• Total classified loans increased $11.6 million from the previous quarter, from $103.1 million, or 1.15% of total loans and leases, to $114.8 million, or 1.28% of total loans and leases
• Net charge-offs on loans totaled $8.8 million, an increase of $4.4 million from the previous quarter and includes $6.2 million of acquired loans that were reserved for through purchase accounting marks
  • Net charge-offs (annualized) as a percentage of average loans outstanding was 0.39% in the third quarter of 2024 as compared to 0.20% in the previous quarter, 27 basis points of which was attributable to the charge off of acquired loans

Strong capital and liquidity positions

• Total available liquidity of $4.9 billion at September 30, 2024
• Bank-level Tier 1 Capital ratio of 11.7%, which represents $339.3 million in excess capital above the regulatory “well capitalized” requirement of 8.0%
• A total of 146,850 shares at a weighted average price of $16.83 were repurchased during the third quarter of 2024 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was $14.6 million as of September 30, 2024

“First Commonwealth’s third quarter results highlight our continued strength, with a solid 1.73% pre-tax pre-provision ROAA and a stable net interest margin coupled with meaningful deposit growth,” stated T. Michael Price, President and Chief Executive Officer. “Despite a $3.0 million headwind from the Durbin amendment kicking in, our organization demonstrated its diverse revenue sources to largely blunt the reduction in fee income.” Price continues, “While we experienced elevated credit expenses this quarter, we remain focused on disciplined growth and I am confident in our ability to optimize shareholder value to the benefit of all of our long-term stakeholders.”

Earnings

Net income for the third quarter of 2024 was $32.1 million, or $0.31 per share, compared to $37.1 million, or $0.36 per share in the second quarter of 2024, and $39.2 million, or $0.38 per share for the third quarter of 2023.

Net Interest Income and Net Interest Margin

Net interest income (FTE) of $96.9 million was increased $1.5 million from the previous quarter and decreased $1.2 million from the prior year quarter. The increase from the prior quarter was primarily due to an $89.5 million increase in average interest-earning assets, partially offset by a decrease in the net interest margin.

The net interest margin (FTE) for the third quarter of 2024 was 3.56%, a decrease of one basis point from the previous quarter and a decrease of 20 basis points from the third quarter of 2023. The decrease from the previous quarter was due primarily to a 10 basis point decrease in variable rate commercial loans, partially offset by a 19 basis point increase in the yield on indirect auto loans and an 11 basis point increase in the yield on investment securities. The yield on total interest earning assets increased two basis points from the previous quarter, which was offset by a five basis point increase in the cost of funds. The total cost of funds was 2.26% in the third quarter of 2024.

Total average deposits grew $76.4 million in the third quarter of 2024 as compared to the previous quarter. Average time deposits grew $71.4 million and interest-bearing demand and savings deposits grew $28.8 million, which offset a $23.8 million decrease in average noninterest-bearing deposits.

Total loans decreased $33.4 million, or 1.5% annualized, from the previous quarter, driven by a $49.8 million decrease in commercial and industrial (C&I) loans and a $23.2 million decrease in closed-end 1-4 family mortgages, partially offset by a $49.8 million increase in equipment finance loans and leases.

Average interest-earning assets increased $89.5 million, or 3.3% annualized, from the previous quarter. Average interest bearing bank deposits increased $69.6 million and average investment securities increased $32.4 million which offset a $12.5 million decrease in average loans.

Asset Quality

Provision expense in the third quarter of 2024 totaled $10.6 million as compared to $7.8 million in the previous quarter. The $2.8 million increase in the provision expense was primarily driven by a $4.4 million increase in net charge-offs and a $2.5 million increase in specific reserves for two commercial credits that were moved to nonaccrual status during the quarter.

The allowance for credit losses in the third quarter of 2024 totaled $126.1 million as compared to $123.7 million in the previous quarter. The increase from the previous quarter was primarily the result of the aforementioned specific reserves, partially offset by $8.8 million in net charge-offs ($3.6 million of which were related to specific reserves recognized in prior periods).

The allowance for credit losses as a percentage of end-of-period loans in the third quarter of 2024 was 1.41% as compared to 1.37% in the previous quarter.

At September 30, 2024, nonperforming loans totaled $74.7 million, an increase of $17.6 million from the previous quarter.

Nonperforming loans represented 0.83% of total loans for the period ended September 30, 2024 as compared to 0.63% and 0.54% for the periods ended June 30, 2024 and September 30, 2023, respectively.

During the third quarter of 2024, net charge-offs were $8.8 million as compared to $4.4 million in the previous quarter and $4.0 million in the third quarter of 2023. The increase from the prior quarter was primarily due to the charge off of $5.1 million for two commercial loans.

Net charge-offs (annualized) as a percentage of average loans were 0.39%, 0.20% and 0.18% for the periods ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

Noninterest Income and Noninterest Expense

Noninterest income (excluding security gains and losses) totaled $24.5 million for the third quarter of 2024, as compared to $25.2 million for the second quarter of 2024 and $24.9 million for the third quarter of 2023. The $0.7 million decrease from the previous quarter was primarily due to a $3.0 million decrease in card-related interchange resulting from the effect of the Durbin amendment reduction, partially offset by a $1.0 million increase in gain on sale of Small Business Administration (SBA) loans and a $0.9 million increase in bank owned life insurance revenue.

Noninterest expense totaled $70.1 million for the third quarter of 2024, as compared to $65.8 million for the second quarter of 2024 and $67.4 million for the third quarter of 2023. Expense increased in comparison with the prior quarter primarily due to a $1.7 million increase in operational losses, a $1.3 million increase in salaries and benefits due to higher severance and hospitalization expense and a $1.1 million increase in advertising and promotion expense due to a $0.4 million debit card incentive payment received from a 3rd party vendor in the prior quarter along with higher checking account promotion expense.

The core efficiency ratio was 56.7% during the third quarter of 2024 as compared to 53.6% in the previous quarter and 53.4% in the third quarter of 2023.

Full time equivalent staff was 1,500 at September 30, 2024, 1,472 at June 30, 2024, and 1,481 at September 30, 2023.

Dividends and Capital

First Commonwealth declared a common stock quarterly dividend of $0.13 per share, which represents a 4.0% increase from the third quarter of 2023. The cash dividend is payable on November 22, 2024 to shareholders of record as of November 8, 2024. This dividend represents a 3.0% projected annual yield utilizing the October 28, 2024 closing market price of $17.09.

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at September 30, 2024 were 14.5%, 12.7%, 10.3% and 12.0%, respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter of 2024 on Wednesday, October 30, 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 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 Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
		2024				2024				2023				2024				2023
SUMMARY RESULTS OF OPERATIONS
Net interest income	$	96,515			$	94,992			$	97,757			$	283,811			$	289,939
Provision for credit losses		10,615				7,827				5,885				22,680				6,025
Provision for credit losses — acquisition day 1 non-PCD		—				—				—				—				10,653
Noninterest income		24,698				25,210				24,826				73,896				72,312
Noninterest expense		70,070				65,798				67,413				201,441				204,737
Net income		32,086				37,088				39,231				106,723				112,236
Core net income(5)		31,933				37,070				39,611				106,642				127,732
Earnings per common share (diluted)	$	0.31			$	0.36			$	0.38			$	1.04			$	1.10
Core earnings per common share (diluted)(6)	$	0.31			$	0.36			$	0.39			$	1.04			$	1.26
KEY FINANCIAL RATIOS
Return on average assets		1.08	%			1.28	%			1.38	%			1.22	%			1.37	%
Core return on average assets(7)		1.08	%			1.27	%			1.39	%			1.22	%			1.55	%
Return on average assets, pre-provision, pre-tax		1.73	%			1.87	%			1.94	%			1.79	%			1.92	%
Core return on average assets, pre-provision, pre-tax		1.72	%			1.87	%			1.95	%			1.79	%			2.03	%
Return on average shareholders' equity		9.19	%			11.10	%			12.46	%			10.54	%			12.35	%
Return on average tangible common equity(8)		13.09	%			15.94	%			18.55	%			15.13	%			18.39	%
Core return on average tangible common equity(9)		13.02	%			15.93	%			18.73	%			15.12	%			20.86	%
Core efficiency ratio(2)(10)		56.66	%			53.63	%			53.42	%			55.12	%			52.88	%
Net interest margin (FTE)(1)		3.56	%			3.57	%			3.76	%			3.55	%			3.87	%
Book value per common share	$	13.79			$	13.32			$	12.14
Tangible book value per common share(11)		10.03				9.56				8.35
Market value per common share		17.15				13.81				12.21
Cash dividends declared per common share		0.130				0.130				0.125				0.385				0.370
ASSET QUALITY RATIOS
Nonperforming loans and leases as a percent of end-of-period loans and leases(3)		0.83	%			0.63	%			0.54	%
Nonperforming assets as a percent of total assets(3)		0.64	%			0.51	%			0.43	%
Net charge-offs as a percent of average loans and leases (annualized)(4)		0.39	%			0.20	%			0.18	%
Allowance for credit losses as a percent of nonperforming loans and leases(4)		168.77	%			216.48	%			280.31	%
Allowance for credit losses as a percent of end-of-period loans and leases(4)		1.41	%			1.37	%			1.51	%
CAPITAL RATIOS
Shareholders' equity as a percent of total assets		11.8	%			11.7	%			10.9	%
Tangible common equity as a percent of tangible assets(12)		8.8	%			8.7	%			7.7	%
Leverage Ratio		10.3	%			10.2	%			9.9	%
Risk Based Capital - Tier I		12.7	%			12.5	%			11.6	%
Risk Based Capital - Total		14.5	%			14.2	%			13.8	%
Common Equity - Tier I		12.0	%			11.7	%			10.9	%

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
	For the Three Months Ended										For the Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2024			2024			2023				2024			2023
INCOME STATEMENT
Interest income	$	154,323		$	150,682		$	139,885			$	450,467		$	385,741
Interest expense		57,808			55,690			42,128				166,656			95,802
Net Interest Income		96,515			94,992			97,757				283,811			289,939
Provision for credit losses		10,615			7,827			5,885				22,680			6,025
Provision for credit losses - acquisition day 1 non-PCD		—			—			—				—			10,653
Net Interest Income after Provision for Credit Losses		85,900			87,165			91,872				261,131			273,261
Net securities gains (losses)		88			(5,535	)		(103	)			(5,447	)		(103	)
Gain on VISA exchange		106			5,558			—				5,664			—
Trust income		3,242			2,821			2,949				8,790			7,967
Service charges on deposit accounts		5,840			5,546			5,600				16,769			15,842
Insurance and retail brokerage commissions		2,663			2,709			2,305				7,618			7,171
Income from bank owned life insurance		2,278			1,371			1,242				4,943			3,664
Gain on sale of mortgage loans		1,151			1,671			1,270				4,150			3,175
Gain on sale of other loans and assets		2,576			1,408			1,027				6,035			5,004
Card-related interchange income		4,137			7,137			7,221				17,964			21,422
Derivative mark-to-market		(153	)		—			35				(141	)		27
Swap fee income		88			—			452				88			1,029
Other income		2,682			2,524			2,828				7,463			7,114
Total Noninterest Income		24,698			25,210			24,826				73,896			72,312
Salaries and employee benefits		38,618			37,320			35,640				111,262			106,639
Net occupancy		4,858			4,822			4,782				15,014			14,584
Furniture and equipment		4,335			4,278			4,414				13,093			12,936
Data processing		3,879			3,840			3,857				11,543			11,024
Pennsylvania shares tax		1,126			1,126			1,588				3,454			4,013
Advertising and promotion		1,960			898			1,662				4,177			4,652
Intangible amortization		1,223			1,169			1,344				3,656			3,773
Other professional fees and services		1,448			1,286			1,603				3,976			4,376
FDIC insurance		1,638			1,286			1,920				4,537			4,614
Litigation and operational losses		2,181			494			1,626				3,672			3,263
Loss on sale or write-down of assets		132			77			50				352			97
Loss on early redemption of subordinated debt		—			369			—				369			—
Merger and acquisition		—			—			379				114			8,860
Other operating expenses		8,672			8,833			8,548				26,222			25,906
Total Noninterest Expense		70,070			65,798			67,413				201,441			204,737
Income before Income Taxes		40,528			46,577			49,285				133,586			140,836
Income tax provision		8,442			9,489			10,054				26,863			28,600
Net Income	$	32,086		$	37,088		$	39,231			$	106,723		$	112,236
Shares Outstanding at End of Period		102,237,941			102,297,847			102,184,652				102,237,941			102,184,652
Average Shares Outstanding Assuming Dilution		102,418,964			102,287,598			102,442,878				102,293,213			101,674,970

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
	September 30,				June 30,				September 30,
		2024				2024				2023
BALANCE SHEET (Period End)
Assets
Cash and due from banks	$	126,598			$	109,907			$	122,982
Interest-bearing bank deposits		455,711				78,386				214,088
Securities available for sale, at fair value		1,165,392				1,101,154				866,582
Securities held to maturity, at amortized cost		430,425				453,820				429,558
Loans held for sale		46,785				50,769				33,127
Loans and leases		8,965,500				8,994,890				8,901,725
Allowance for credit losses		(126,112	)			(123,654	)			(134,337	)
Net loans and leases		8,839,388				8,871,236				8,767,388
Goodwill and other intangibles		384,172				384,854				387,328
Other assets		534,728				576,747				600,935
Total Assets	$	11,983,199			$	11,626,873			$	11,421,988
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	2,463,971			$	2,304,830			$	2,535,704
Interest-bearing demand deposits		671,667				619,877				632,062
Savings deposits		4,953,206				4,955,718				4,928,607
Time deposits		1,656,708				1,528,496				1,144,692
Total interest-bearing deposits		7,281,581				7,104,091				6,705,361
Total deposits		9,745,552				9,408,921				9,241,065
Short-term borrowings		538,828				537,613				544,060
Long-term borrowings		136,285				136,581				187,017
Total borrowings		675,113				674,194				731,077
Other liabilities		152,918				181,253				209,315
Shareholders' equity		1,409,616				1,362,505				1,240,531
Total Liabilities and Shareholders' Equity	$	11,983,199			$	11,626,873			$	11,421,988

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

	For the Three Months Ended													For the Nine Months Ended
	September 30,		Yield/		June 30,		Yield/		September 30,		Yield/			September 30,		Yield/		September 30,		Yield/
		2024	Rate			2024	Rate			2023	Rate				2024	Rate			2023	Rate
NET INTEREST MARGIN
Assets
Loans and leases (FTE)(1)(3)	$	9,004,808	6.09	%	$	9,017,288	6.06	%	$	8,884,731	5.79	%		$	9,006,908	6.03	%	$	8,627,203	5.56	%
Interest bearing bank deposits		278,006	5.49	%		208,360	5.58	%		235,761	5.63	%			199,887	5.55	%		197,522	5.35	%
Securities (FTE)(1)		1,542,792	3.34	%		1,510,409	3.23	%		1,229,308	2.32	%			1,508,604	3.21	%		1,229,721	2.20	%
Total Interest-Earning Assets (FTE)(1)		10,825,606	5.68	%		10,736,057	5.66	%		10,349,800	5.37	%			10,715,399	5.63	%		10,054,446	5.14	%
Noninterest-earning assets		950,926				959,103				957,258					949,389				932,844
Total Assets	$	11,776,532			$	11,695,160			$	11,307,058				$	11,664,788			$	10,987,290
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits	$	5,657,796	2.27	%	$	5,629,028	2.20	%	$	5,581,623	1.67	%		$	5,613,986	2.19	%	$	5,497,336	1.31	%
Time deposits		1,575,975	4.40	%		1,504,544	4.35	%		1,054,216	3.48	%			1,489,476	4.33	%		890,299	3.03	%
Short-term borrowings		541,010	4.62	%		545,551	4.67	%		504,025	5.23	%			560,743	4.62	%		402,782	4.73	%
Long-term borrowings		136,408	5.44	%		170,963	5.52	%		187,122	5.94	%			164,553	5.59	%		186,629	5.35	%
Total Interest-Bearing Liabilities		7,911,189	2.91	%		7,850,086	2.85	%		7,326,986	2.28	%			7,828,758	2.84	%		6,977,046	1.84	%
Noninterest-bearing deposits		2,286,482				2,310,274				2,519,184					2,299,650				2,592,373
Other liabilities		189,571				190,440				211,447					183,255				202,438
Shareholders' equity		1,389,290				1,344,360				1,249,441					1,353,125				1,215,433
Total Noninterest-Bearing Funding Sources		3,865,343				3,845,074				3,980,072					3,836,030				4,010,244
Total Liabilities and Shareholders' Equity	$	11,776,532			$	11,695,160			$	11,307,058				$	11,664,788			$	10,987,290
Net Interest Margin (FTE) (annualized)(1)			3.56	%			3.57	%			3.76	%				3.55	%			3.87	%

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
	September 30,			June 30,			September 30,
		2024			2024			2023
Loan and Lease Portfolio Detail
Commercial Loan and Lease Portfolio:
Commercial, financial, agricultural and other	$	1,263,008		$	1,312,816		$	1,305,905
Commercial real estate		3,069,438			3,077,013			3,050,084
Equipment Finance loans and leases		366,527			316,700			190,116
Real estate construction		522,548			523,595			508,875
Total Commercial		5,221,521			5,230,124			5,054,980
Consumer Loan Portfolio:
Closed-end mortgages		1,878,980			1,902,173			1,915,506
Home equity lines of credit		495,396			492,133			499,275
Real estate construction		18,227			24,460			66,672
Total Real Estate - Consumer		2,392,603			2,418,766			2,481,453
Auto & RV loans		1,275,765			1,270,044			1,285,380
Direct installment		26,425			26,807			27,888
Personal lines of credit		47,076			46,932			48,718
Student loans		2,110			2,217			3,306
Total Other Consumer		1,351,376			1,346,000			1,365,292
Total Consumer Portfolio		3,743,979			3,764,766			3,846,745
Total Portfolio Loans and Leases		8,965,500			8,994,890			8,901,725
Loans held for sale		46,785			50,769			33,127
Total Loans and Leases	$	9,012,285		$	9,045,659		$	8,934,852
	September 30,			June 30,			September 30,
		2024			2024			2023
ASSET QUALITY DETAIL
Nonperforming Loans and Leases:
Loans and leases on nonaccrual basis	$	50,929		$	31,443		$	25,902
Loans on nonaccrual basis - Centric acquisition		23,794			25,676			22,022
Total Nonperforming Loans and Leases	$	74,723		$	57,119		$	47,924
Other real estate owned ("OREO")		669			484			765
Repossessions ("Repos")		1,188			1,456			762
Total Nonperforming Assets	$	76,580		$	59,059		$	49,451
Loans past due in excess of 90 days and still accruing		1,191			1,753			2,484
Classified loans and leases		114,751			103,111			66,272
Criticized loans and leases		241,962			241,611			193,192
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos(4)		0.85	%		0.66	%		0.56	%
Allowance for credit losses	$	126,112		$	123,654		$	134,337

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

	For the Three Months Ended										For the Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2024			2024			2023				2024			2023
Net Charge-offs (Recoveries):
Commercial, financial, agricultural and other	$	5,870		$	2,485		$	1,664			$	10,597		$	8,750
Real estate construction		—			35			—				29			—
Commercial real estate		1,381			331			166				1,881			1,547
Residential real estate		55			64			247				140			256
Loans to individuals		1,479			1,487			1,899				4,842			3,261
Net Charge-offs	$	8,785		$	4,402		$	3,976			$	17,489		$	13,814
Net charge-offs as a percentage of average loans and leases outstanding (annualized)(4)		0.39	%		0.20	%		0.18	%			0.26	%		0.21	%
Provision for credit losses as a percentage of net charge-offs		120.83	%		177.81	%		148.01	%			129.68	%		43.62	%
Provision for credit losses	$	10,615		$	7,827		$	5,885			$	22,680		$	6,025

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
Note: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons.
(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%.
(2) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.
(3) Includes held for sale loans.
(4) Excludes held for sale loans.
	For the Three Months Ended							For the Nine Months Ended
	September 30,		June 30,		September 30,			September 30,		September 30,
		2024		2024		2023			2024		2023
Interest income	$	154,323	$	150,682	$	139,885		$	450,467	$	385,741
Adjustment to fully taxable equivalent basis(1)		342		329		313			994		923
Interest income adjusted to fully taxable equivalent basis (non-GAAP)		154,665		151,011		140,198			451,461		386,664
Interest expense		57,808		55,690		42,128			166,656		95,802
Net interest income, (FTE)(1)	$	96,857	$	95,321	$	98,070		$	284,805	$	290,862

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
	For the Three Months Ended										For the Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2024			2024			2023				2024			2023
Net Income	$	32,086		$	37,088		$	39,231			$	106,723		$	112,236
Intangible amortization		1,223			1,169			1,344				3,656			3,773
Tax benefit of amortization of intangibles		(257	)		(245	)		(282	)			(768	)		(792	)
Net Income, adjusted for tax affected amortization of intangibles	$	33,052		$	38,012		$	40,293			$	109,611		$	115,217
Average Tangible Equity:
Total shareholders' equity	$	1,389,290		$	1,344,360		$	1,249,441			$	1,353,125		$	1,215,433
Less: intangible assets		384,404			385,332			387,782				385,255			377,697
Tangible Equity		1,004,886			959,028			861,659				967,870			837,736
Less: preferred stock		—			—			—				—			—
Tangible Common Equity	$	1,004,886		$	959,028		$	861,659			$	967,870		$	837,736
(8)Return on Average Tangible Common Equity		13.09	%		15.94	%		18.55	%			15.13	%		18.39	%

	For the Three Months Ended										For the Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2024			2024			2023				2024			2023
Core Net Income:
Total Net Income	$	32,086		$	37,088		$	39,231			$	106,723		$	112,236
Net securities (gains) losses		(194	)		(23	)		103				(217	)		103
Tax benefit of net securities gains		41			5			(22	)			46			(22	)
Merger and acquisition related expenses		—			—			379				114			8,860
Tax benefit of merger and acquisition related expenses		—			—			(80	)			(24	)		(1,861	)
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	$	31,933		$	37,070		$	39,611			$	106,642		$	127,732
Average Shares Outstanding Assuming Dilution		102,418,964			102,287,598			102,442,878				102,293,213			101,674,970
(6)Core Earnings per common share (diluted)	$	0.31		$	0.36		$	0.39			$	1.04		$	1.26
Intangible amortization		1,223			1,169			1,344				3,656			3,773
Tax benefit of amortization of intangibles		(257	)		(245	)		(282	)			(768	)		(792	)
Core Net Income, adjusted for tax affected amortization of intangibles	$	32,899		$	37,994		$	40,673			$	109,530		$	130,713
(9)Core Return on Average Tangible Common Equity		13.02	%		15.93	%		18.73	%			15.12	%		20.86	%

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
	For the Three Months Ended										For the Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2024			2024			2023				2024			2023
Core Return on Average Assets:
Total Net Income	$	32,086		$	37,088		$	39,231			$	106,723		$	112,236
Total Average Assets		11,776,532			11,695,160			11,307,058				11,664,788			10,987,290
Return on Average Assets		1.08	%		1.28	%		1.38	%			1.22	%		1.37	%
Core Net Income(5)	$	31,933		$	37,070		$	39,611			$	106,642		$	127,732
Total Average Assets		11,776,532			11,695,160			11,307,058				11,664,788			10,987,290
(7)Core Return on Average Assets		1.08	%		1.27	%		1.39	%			1.22	%		1.55	%

	For the Three Months Ended										For the Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2024			2024			2023				2024			2023
Core Efficiency Ratio:
Total Noninterest Expense	$	70,070		$	65,798		$	67,413			$	201,441		$	204,737
Adjustments to Noninterest Expense:
Intangible amortization		1,223			1,169			1,344				3,656			3,773
Merger and acquisition related		—			—			379				114			8,860
Noninterest Expense - Core	$	68,847		$	64,629		$	65,690			$	197,671		$	192,104
Net interest income, (FTE)	$	96,857		$	95,321		$	98,070			$	284,805		$	290,862
Total noninterest income		24,698			25,210			24,826				73,896			72,312
Net securities (gains) losses		(194	)		(23	)		103				(217	)		103
Total Revenue		121,361			120,508			122,999				358,484			363,277
Adjustments to Revenue:
Derivative mark-to-market		(153	)		—			35				(141	)		27
Total Revenue - Core	$	121,514		$	120,508		$	122,964			$	358,625		$	363,250
(10)Core Efficiency Ratio		56.66	%		53.63	%		53.42	%			55.12	%		52.88	%

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
	September 30,			June 30,			September 30,
		2024			2024			2023
Tangible Equity:
Total shareholders' equity	$	1,409,616		$	1,362,505		$	1,240,531
Less: intangible assets		384,172			384,854			387,328
Tangible Equity		1,025,444			977,651			853,203
Less: preferred stock		—			—			—
Tangible Common Equity	$	1,025,444		$	977,651		$	853,203
Tangible Assets:
Total assets	$	11,983,199		$	11,626,873		$	11,421,988
Less: intangible assets		384,172			384,854			387,328
Tangible Assets	$	11,599,027		$	11,242,019		$	11,034,660
(12)Tangible Common Equity as a percentage of Tangible Assets		8.84	%		8.70	%		7.73	%
Shares Outstanding at End of Period		102,237,941			102,297,847			102,184,652
(11)Tangible Book Value Per Common Share	$	10.03		$	9.56		$	8.35

	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
		2024			2024			2023			2024			2023
Pre-tax pre-provision income:
Net interest income	$	96,515		$	94,992		$	97,757		$	283,811		$	289,939
Noninterest income		24,698			25,210			24,826			73,896			72,312
Noninterest expense		70,070			65,798			67,413			201,441			204,737
Pre-tax pre-provision income	$	51,143		$	54,404		$	55,170		$	156,266		$	157,514
Net securities (gains) losses	$	(194	)	$	(23	)	$	103		$	(217	)	$	103
Merger and acquisition related expenses		—			0			379			114			8,860
Core pre-tax pre-provision income	$	50,949		$	54,381		$	55,652		$	156,163		$	166,477
Net charge-offs	$	8,785		$	4,402		$	3,976		$	17,489		$	13,814