Slide 1: First Commonwealth NYSE: FCF
| ~FIRST fl Commonwealth. TITITTiCTT rrr rrr le © NYSE: FCF
Slide 2: 3Q 2023 Earnings Release Webcast Presentation
3Q 2023 Earnings Release Webcast Presentation October 25, 2023 2
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements about First Commonwealth’s future plans, strategies and financial performance. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often include words such
Slide 4: Third Quarter 2023 Highlights
3Q 2023 Earnings Release Webcast Presentation THIRD QUARTER 2023 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of the company $55.7 million Net interest income (FTE) of $98.1 million was unchanged from the previous quarter Core Pre-tax p
Slide 5: Net Interest Income and Net Interest Margin
3Q 2023 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net interest income (FTE) of $98.1 million Net Interest Income(1) was flat to LQ and up by $15.4 million YoY − $1.6 billion increase in average interest earning assets YoY − Includes $1.0 billion from the Cen
Slide 6: Loans
3Q 2023 Earnings Release Webcast Presentation LOANS Average Loans(1) Average Average loans increased $195.7 million from LQ and $1,622.9 million YoY The yield on loans increased 21bps from LQ (2) Period-end Period-end Loans(1) Total loans(1) increased $118.7 million from the previous quarter,
Slide 7: Deposits
3Q 2023 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average Average deposits increased $48.4 million, or 2.1% annualized, from LQ Average time deposits grew $123.8 million, partially offset by a $61.7 million decrease in noninterest bearing deposits and a $13.7 million decrea
Slide 8: Noninterest Income
3Q 2023 Earnings Release Webcast Presentation NONINTEREST INCOME Change from 3Q23 2Q23 3Q22 2Q23 3Q22 Interchange $7.2 $7.4 $7.0 ($0.2) $0.2 Fee income increased $0.5 million from Service charges 5.6 5.3 5.2 0.3 0.4 LQ and decreased $1.0 million YoY Trust 2.9 2.5 2.8 0.4 0.1 Retail brokerage 1.3 1
Slide 9: Noninterest Expense
3Q 2023 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 3Q23 2Q23 3Q22 2Q23 3Q22 Total noninterest expense increased $1.5 Salaries and benefits $35.6 $36.7 $32.5 ($1.1) $3.1 million from LQ while total operating Occupancy 4.8 4.8 4.6 0.0 0.2 Furniture and equipment 4.4 4.3 4.
Slide 10: Credit Quality
3Q 2023 Earnings Release Webcast Presentation CREDIT QUALITY Provision Expense and Net Charge-offs Provision expense of $5.9 million increased $3.1 million from LQ and was flat YoY − The increase in the provision expense was primarily driven by loan growth and an additional $4.1 in specific reserv
Slide 11: Capital Return
3Q 2023 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios (1) • Strong capital levels allow us to continue to return capital to shareholders • On April 24, 2023, the Board of Directors authorized a 4.2% increase in the quarterly cash dividend to shareholders • There were 259,639 sha
Slide 12: Additional Areas of Focus
ADDITIONAL AREAS OF FOCUS Giuaare alth
Slide 13: Sources of Liquidity
3Q 2023 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of September 30, 2023 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $639.5 $0 $639.5 Other (Excess Pledged) $40.8 $0 $40.8 External Sources: FHLB $2,408.3 $1,062.5 $1,345.7 Federal Reserve
Slide 14: Investment Securities Portfolio
3Q 2023 Earnings Release Webcast Presentation INVESTMENT SECURITIES PORTFOLIO Conservative investment portfolio intended to act as a pool of liquidity Securities Portfolio Composition(1) − LTM securities runoff has been redeployed into higher yielding loans − $131 million in securities were purcha
Slide 15: Granular Core Deposit Franchise
3Q 2023 Earnings Release Webcast Presentation GRANULAR CORE DEPOSIT FRANCHISE Strong, granular, well-diversified depository Insured Deposits − No single private sector industry accounts for more than 3% of total deposits − Average deposit account size ~$18,000 − Average retail account size ~$11,00
Slide 16: CRE Portfolio
3Q 2023 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio % of total 3Q 2023 loans Owner-occupied CRE $ 713.5 8.0% Multifamily 543.4 6.1% Retail 616.2 6.9% Office 450.1 5.1% $8.9B Sept 30, 2023 Office - Medical 50.2 0.6% Hospitality 212.7 2.4% Industria
Slide 17: CRE Portfolio: Office
3Q 2023 Earnings Release Webcast Presentation CRE PORTFOLIO: OFFICE Annual Industry Studies: Analyze key credit metrics Geographic Breakdown(1) for each CRE portfolio Review of office credits >$1 million (89% of office portfolio balances) - Average commitment size $4.7 million - Approximately $9
Slide 18: Appendix
APPENDIX Giuaare alth
Slide 19: Non-GAAP Measures
3Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 3Q23 2Q23 1Q23 4Q22 3Q22 Net Interest Income $97.8 $97.8 $94.4 $88.0 $82.4 Tax equivalent adjustment 0.3 0.3 0.3 0.3 0.2 Net Interest Income (FTE) 98.1 98.1 94.7 88.3 82.6 Noninterest Income (Reported) 24.8 24.6 23.0 2
Slide 20: Non-GAAP Measures
3Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 3Q23 2Q23 1Q23 4Q22 3Q22 Net Income (GAAP) $39.2 $42.8 $30.2 $35.7 $34.0 (after tax) Less: Covid-19 related (after tax) 0.0 0.0 0.0 0.0 0.0 Less: Merger and acquisition related (after tax) 0.3 (0.1) 6.8 1.0 0.4 L
Slide 21: Non-GAAP Measures
3Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 3Q23 2Q23 1Q23 4Q22 3Q22 Total Equity $1,241 $1,232 $1,225 $1,052 $1,023 Less: Intangible assets 387 388 386 313 313 Less: Preferred stock 0 0 0 0 0 Tangible Common
Slide 22: Non-GAAP Measures
3Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Return on Average Tangible Common Equity (%) 3Q23 2Q23 1Q23 4Q22 3Q22 Average Equity $1,249 $1,235 $1,161 $1,041 $1,063 Less: Average intangible assets 388 386 359 312 314 Less: Average preferred stock 0 0 0 0 0 Average Tangible Co