falseFIRST COMMONWEALTH FINANCIAL CORP /PA/25-14285282024FY000071253700007125372024-10-292024-10-29

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): October 29, 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 October 29, 2024, First Commonwealth Financial Corporation (the “Company”) issued a press release announcing financial results for the three and nine month periods ended September 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 October 29, 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 nine month periods ended September 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: October 29, 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

fcfimagea01.jpg                    
FOR IMMEDIATE RELEASE

First Commonwealth Announces Third Quarter 2024 Earnings; Declares Quarterly Dividend

Indiana, PA, October 29, 2024 - 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 EndedFor the Nine Months Ended
except per share data)September 30,June 30,September 30,September 30,September 30,
20242024202320242023
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 assets1.08 %1.28 %1.38 %1.22 %1.37 %
Return on average equity9.19 %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 ROAA1.72 %1.87 %1.95 %1.79 %2.03 %
Return on average tangible common equity13.09 %15.94 %18.55 %15.13 %18.39 %
Core return on average tangible common equity13.02 %15.93 %18.73 %15.12 %20.86 %
Core efficiency ratio56.66 %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 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 Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
SUMMARY RESULTS OF OPERATIONS
Net interest income$96,515 $94,992 $97,757 $283,811 $289,939 
Provision for credit losses10,615 7,827 5,885 22,680 6,025 
Provision for credit losses — acquisition day 1 non-PCD— — — — 10,653 
Noninterest income24,698 25,210 24,826 73,896 72,312 
Noninterest expense70,070 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 assets1.08 %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-tax1.73 %1.87 %1.94 %1.79 %1.92 %
Core return on average assets, pre-provision, pre-tax1.72 %1.87 %1.95 %1.79 %2.03 %
Return on average shareholders' equity9.19 %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 share17.15 13.81 12.21 
Cash dividends declared per common share0.130 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 assets11.8 %11.7 %10.9 %
Tangible common equity as a percent of tangible assets (12)
8.8 %8.7 %7.7 %
Leverage Ratio10.3 %10.2 %9.9 %
Risk Based Capital - Tier I12.7 %12.5 %11.6 %
Risk Based Capital - Total14.5 %14.2 %13.8 %
Common Equity - Tier I12.0 %11.7 %10.9 %


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
INCOME STATEMENT
   Interest income$154,323 $150,682 $139,885 $450,467 $385,741 
   Interest expense57,808 55,690 42,128 166,656 95,802 
Net Interest Income96,515 94,992 97,757 283,811 289,939 
   Provision for credit losses10,615 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 Losses85,900 87,165 91,872 261,131 273,261 
Net securities gains (losses)88 (5,535)(103)(5,447)(103)
   Gain on VISA exchange106 5,558 — 5,664 — 
   Trust income3,242 2,821 2,949 8,790 7,967 
   Service charges on deposit accounts5,840 5,546 5,600 16,769 15,842 
   Insurance and retail brokerage commissions2,663 2,709 2,305 7,618 7,171 
   Income from bank owned life insurance2,278 1,371 1,242 4,943 3,664 
   Gain on sale of mortgage loans1,151 1,671 1,270 4,150 3,175 
   Gain on sale of other loans and assets2,576 1,408 1,027 6,035 5,004 
   Card-related interchange income4,137 7,137 7,221 17,964 21,422 
Derivative mark-to-market(153)— 35 (141)27 
Swap fee income88 — 452 88 1,029 
   Other income2,682 2,524 2,828 7,463 7,114 
Total Noninterest Income24,698 25,210 24,826 73,896 72,312 
   Salaries and employee benefits38,618 37,320 35,640 111,262 106,639 
   Net occupancy4,858 4,822 4,782 15,014 14,584 
   Furniture and equipment 4,335 4,278 4,414 13,093 12,936 
   Data processing3,879 3,840 3,857 11,543 11,024 
   Pennsylvania shares tax1,126 1,126 1,588 3,454 4,013 
   Advertising and promotion 1,960 898 1,662 4,177 4,652 
   Intangible amortization1,223 1,169 1,344 3,656 3,773 
   Other professional fees and services1,448 1,286 1,603 3,976 4,376 
   FDIC insurance1,638 1,286 1,920 4,537 4,614 
   Litigation and operational losses2,181 494 1,626 3,672 3,263 
   Loss on sale or write-down of assets132 77 50 352 97 
   Loss on early redemption of subordinated debt— 369 — 369 — 
   Merger and acquisition— — 379 114 8,860 
   Other operating expenses8,672 8,833 8,548 26,222 25,906 
Total Noninterest Expense70,070 65,798 67,413 201,441 204,737 
Income before Income Taxes40,528 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 Period102,237,941102,297,847102,184,652102,237,941102,184,652
Average Shares Outstanding Assuming Dilution102,418,964102,287,598102,442,878102,293,213101,674,970


                                                
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
September 30,June 30,September 30,
202420242023
BALANCE SHEET (Period End)
Assets
   Cash and due from banks$126,598 $109,907 $122,982 
   Interest-bearing bank deposits455,711 78,386 214,088 
   Securities available for sale, at fair value1,165,392 1,101,154 866,582 
   Securities held to maturity, at amortized cost430,425 453,820 429,558 
   Loans held for sale46,785 50,769 33,127 
     Loans and leases8,965,500 8,994,890 8,901,725 
     Allowance for credit losses(126,112)(123,654)(134,337)
   Net loans and leases8,839,388 8,871,236 8,767,388 
   Goodwill and other intangibles384,172 384,854 387,328 
   Other assets534,728 576,747 600,935 
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 deposits671,667 619,877 632,062 
     Savings deposits4,953,206 4,955,718 4,928,607 
     Time deposits1,656,708 1,528,496 1,144,692 
   Total interest-bearing deposits7,281,581 7,104,091 6,705,361 
   Total deposits9,745,552 9,408,921 9,241,065 
     Short-term borrowings538,828 537,613 544,060 
     Long-term borrowings136,285 136,581 187,017 
   Total borrowings675,113 674,194 731,077 
   Other liabilities152,918 181,253 209,315 
   Shareholders' equity1,409,616 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 EndedFor the Nine Months Ended
September 30,Yield/June 30,Yield/September 30,Yield/September 30,Yield/September 30,Yield/
2024Rate2024Rate2023Rate2024Rate2023Rate
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 deposits278,006 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 assets950,926 959,103 957,258 949,389 932,844 
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 deposits1,575,975 4.40 %1,504,544 4.35 %1,054,216 3.48 %1,489,476 4.33 %890,299 3.03 %
Short-term borrowings541,010 4.62 %545,551 4.67 %504,025 5.23 %560,743 4.62 %402,782 4.73 %
Long-term borrowings136,408 5.44 %170,963 5.52 %187,122 5.94 %164,553 5.59 %186,629 5.35 %
Total Interest-Bearing Liabilities7,911,189 2.91 %7,850,086 2.85 %7,326,986 2.28 %7,828,758 2.84 %6,977,046 1.84 %
Noninterest-bearing deposits2,286,482 2,310,274 2,519,184 2,299,650 2,592,373 
Other liabilities189,571 190,440 211,447 183,255 202,438 
Shareholders' equity1,389,290 1,344,360 1,249,441 1,353,125 1,215,433 
Total Noninterest-Bearing Funding Sources3,865,343 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,
202420242023
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 estate3,069,438 3,077,013 3,050,084 
Equipment Finance loans and leases366,527 316,700 190,116 
Real estate construction522,548 523,595 508,875 
Total Commercial5,221,521 5,230,124 5,054,980 
Consumer Loan Portfolio:
Closed-end mortgages1,878,980 1,902,173 1,915,506 
Home equity lines of credit495,396 492,133 499,275 
Real estate construction18,227 24,460 66,672 
Total Real Estate - Consumer2,392,603 2,418,766 2,481,453 
Auto & RV loans1,275,765 1,270,044 1,285,380 
Direct installment26,425 26,807 27,888 
Personal lines of credit47,076 46,932 48,718 
Student loans2,110 2,217 3,306 
Total Other Consumer1,351,376 1,346,000 1,365,292 
Total Consumer Portfolio3,743,979 3,764,766 3,846,745 
Total Portfolio Loans and Leases8,965,500 8,994,890 8,901,725 
Loans held for sale46,785 50,769 33,127 
Total Loans and Leases$9,012,285 $9,045,659 $8,934,852 
September 30,June 30,September 30,
202420242023
ASSET QUALITY DETAIL
Nonperforming Loans and Leases:
Loans and leases on nonaccrual basis$50,929 $31,443 $25,902 
Loans on nonaccrual basis - Centric acquisition23,794 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 accruing1,191 1,753 2,484 
Classified loans and leases114,751 103,111 66,272 
Criticized loans and leases241,962 241,611 193,192 
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 EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
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 estate1,381 331 166 1,881 1,547 
       Residential real estate55 64 247 140 256 
       Loans to individuals1,479 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-offs120.83 %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 EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
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 expense57,808 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 EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
Net Income$32,086 $37,088 $39,231 $106,723 $112,236 
Intangible amortization1,223 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 assets384,404 385,332 387,782 385,255 377,697 
       Tangible Equity1,004,886 959,028 861,659 967,870 837,736 
   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 EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
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 gains41 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 Dilution102,418,964102,287,598102,442,878102,293,213101,674,970
(6) Core Earnings per common share (diluted)
$0.31 $0.36 $0.39 $1.04 $1.26 
Intangible amortization1,223 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 EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
Core Return on Average Assets:
Total Net Income$32,086 $37,088 $39,231 $106,723 $112,236 
Total Average Assets11,776,532 11,695,160 11,307,058 11,664,788 10,987,290 
Return on Average Assets1.08 %1.28 %1.38 %1.22 %1.37 %
Core Net Income (5)
$31,933 $37,070 $39,611 $106,642 $127,732 
Total Average Assets11,776,532 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 EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
Core Efficiency Ratio:
Total Noninterest Expense$70,070 $65,798 $67,413 $201,441 $204,737 
Adjustments to Noninterest Expense:
Intangible amortization1,223 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 income24,698 25,210 24,826 73,896 72,312 
Net securities (gains) losses(194)(23)103 (217)103 
Total Revenue121,361 120,508 122,999 358,484 363,277 
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,
202420242023
Tangible Equity:
   Total shareholders' equity$1,409,616 $1,362,505 $1,240,531 
   Less: intangible assets384,172 384,854 387,328 
       Tangible Equity1,025,444 977,651 853,203 
   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 assets384,172 384,854 387,328 
       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 Period102,237,941 102,297,847 102,184,652 
(11)Tangible Book Value Per Common Share
$10.03 $9.56 $8.35 

For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
Pre-tax pre-provision income:
Net interest income$96,515 $94,992 $97,757 $283,811 $289,939 
Noninterest income24,69825,21024,82673,89672,312
Noninterest expense70,07065,79867,413201,441204,737
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—03791148,860
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 


v3.24.3
Document and Entity Information Document and Entity Information
Oct. 29, 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 Oct. 29, 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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