Slide 1: First Commonwealth NYSE: FCF
| ~FIRST fl Commonwealth. i ie ee ee a © NYSE: FCF
Slide 2: 3Q 2022 Earnings Release Webcast Presentation
3Q 2022 Earnings Release Webcast Presentation October 26, 2022 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 2022 Highlights
3Q 2022 Earnings Release Webcast Presentation THIRD QUARTER 2022 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of the company $48.9 million Total loans (excl. PPP) grew $238.1 million, or 13.3% annualized from the previous quarter Core P
Slide 5: Net Interest Income and Net Interest Margin
3Q 2022 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1) Net interest income (FTE) of $82.6 million increased by $8.7 million from LQ and $11.7 million YoY − $7.2 million increase in income on variable and adjustable rate loans, driven by hig
Slide 6: Loans
3Q 2022 Earnings Release Webcast Presentation LOANS Average Loans(1) Average Average loans increased $225.6 million $7,262 $6,763 $7,036 from LQ – Excluding PPP loans, average loans increased $238.7 million from LQ, or 13.5% annualized The yield on loans increased 35bps from LQ (excluding PPP lo
Slide 7: Deposits
3Q 2022 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average Average deposits decreased $98.7 million from LQ Average noninterest bearing deposits grew $34.8 million or 5.1% annualized The total cost of deposits of 5bps increased 1bp from LQ Period-end Deposits Period-end
Slide 8: Noninterest Income
3Q 2022 Earnings Release Webcast Presentation NONINTEREST INCOME Change from Total noninterest income increased $1.4 3Q22 2Q22 3Q21 2Q22 3Q21 million from LQ and decreased $1.3 million Interchange $7.0 $7.1 $7.1 ($0.1) ($0.1) YoY Service charges 5.2 4.9 4.8 0.3 0.4 Trust 2.8 2.6 3.1 0.2 (0.3) Reta
Slide 9: Noninterest Expense
3Q 2022 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 3Q22 2Q22 3Q21 2Q22 3Q21 Salaries and benefits $32.4 $30.9 $31.1 $1.5 $1.3 Occupancy 4.6 4.2 4.0 0.4 0.6 Furniture and equipment 4.0 3.9 4.1 0.1 (0.1) Total noninterest expense increased $4.2 PA shares tax 1.6 0.9 1.3 0.
Slide 10: Credit Quality
3Q 2022 Earnings Release Webcast Presentation CREDIT QUALITY Provision Expense and Net Charge-offs Provision expense of $5.9 million increased $1.8 million from LQ and increased $5.6 million YoY − Strong loan growth drove $5.3 million of the increase in the allowance for credit losses − The allowa
Slide 11: Capital Return
3Q 2022 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios Strong capital levels allow us to continue to return capital to shareholders On April 25, 2022, the Board of Directors authorized a 4.3% increase in the quarterly cash dividend to shareholders A total of 324,551 shares
Slide 12: Appendix
APPENDIX Chititonwantth
Slide 13: Non-GAAP Measures
3Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 3Q22 2Q22 1Q22 4Q21 3Q21 Net Interest Income $82.4 $73.7 $68.2 $70.2 $70.6 Tax equivalent adjustment 0.2 0.2 0.2 0.3 0.3 Net Interest Income (FTE) 82.6 73.9 68.4 70.5 70.9 Noninterest Income (Reported) 25.9 24.5 24.0 2
Slide 14: Non-GAAP Measures
3Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 3Q22 2Q22 1Q22 4Q21 3Q21 Net Income (GAAP) $34.0 $30.8 $27.7 $34.8 $34.1 (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) 0.4 0.0 0.0 0.0 0.0 Les
Slide 15: Non-GAAP Measures
3Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Return on Average Tangible Common Equity (%) 3Q22 2Q22 1Q22 4Q21 3Q21 Average Equity $1,063 $1,064 $1,107 $1,117 $1,114 Less: Average intangible assets 314 314 314 315 316 Less: Average preferred stock 0 0 0 0 0 Average Tangible Common
Slide 16: Non-GAAP Measures
3Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Net Interest Margin (%) 3Q22 2Q22 1Q22 4Q21 3Q21 Net Interest Income (FTE) $82.6 $73.9 $68.4 $70.5 $70.9 Less: Income from Paycheck Protection Program Loans (0.3) (0.6) (1.8) (4.1) (5.7) Less: Income from excess cash (0.5) (0.6) 0.