Slide 1: First Commonwealth NYSE: FCF
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Slide 2: 2Q 2024 Earnings Release Webcast Presentation
2Q 2024 Earnings Release Webcast Presentation July 24, 2024 2
Slide 3: Forward-Looking Statements
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 “Exch
Slide 4: Second Quarter 2024 Highlights
2Q 2024 Earnings Release Webcast Presentation SECOND QUARTER 2024 HIGHLIGHTS Diversified balance sheet and revenue streams continue to Highlights improve the fundamental earnings of the company Core EPS of $0.36 which is a decrease of $0.01 in the previous $54.4 million quarter Core Pre‐tax pre‐pr
Slide 5: Net Interest Income and Net Interest Margin
2Q 2024 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1) Net interest income (FTE) of $95.3 million increased $2.7 million to LQ and decreased $2.8 million YoY Net interest margin of 3.57% increased 5bps from LQ and decreased 28bps YoY − Yi
Slide 6: Loans
2Q 2024 Earnings Release Webcast Presentation LOANS Average Loans(1) Average Average loans increased $18.6 million from LQ and $328.3 million YoY The yield on loans increased 11bps from LQ (2) Period-end Period-end Loans(1) Total loans(1) increased $13.9 million from the previous quarter, or 0
Slide 7: Deposits
2Q 2024 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average Average deposits increased $199.9 million, or 8.7% annualized from LQ Average time deposits grew $117.6 million, interest-bearings demand and savings increased $74.4 million and noninterest bearing deposits increased
Slide 8: Noninterest Income
2Q 2024 Earnings Release Webcast Presentation NONINTEREST INCOME Fee income increased $1.1 million from Change from LQ and increased $0.7 million YoY 2Q24 1Q24 2Q23 1Q24 2Q23 Interchange $7.1 $6.7 $7.4 $0.4 ($0.3) Service Charges Trust 5.5 2.8 5.4 2.7 5.3 2.5 0.1 0.1 0.2 0.3 Retail brokerage fee
Slide 9: Noninterest Expense
2Q 2024 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 2Q24 1Q24 2Q23 1Q24 2Q23 Total noninterest expense was Salaries and benefits $37.3 $35.3 $36.7 $2.0 (0.5) $0.6 0.0 unchanged from LQ and decreased $0.5 Occupancy 4.8 5.3 4.8 Furniture and equipment 4.3 4.5 4.3 (0.2) 0.0
Slide 10: Credit Quality
2Q 2024 Earnings Release Webcast Presentation CREDIT QUALITY Provision expense of $7.8 million increased $3.6 million from LQ primarily to an increase in specific Provision Expense and Net Charge-offs reserves on acquired nonaccrual loans The allowance for credit losses as a percentage of end-of
Slide 11: Capital Return
2Q 2024 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios (1) • Strong capital levels allow us to continue to return capital to shareholders • There were 22,961 shares repurchased during the second quarter of 2024; remaining capacity under the current program was $17.1 million as of
Slide 12: Additional Areas of Focus
2Q 2024 Earnings Release Webcast Presentation ADDITIONAL AREAS OF FOCUS 12
Slide 13: Sources of Liquidity
2Q 2024 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of June 30, 2024 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $284.1 $0 $284.1 Other (Excess Pledged) $81.3 $0 $81.3 External Sources: FHLB $2,394.1 $216.8 $2,177.3 Federal Reserve $1,671.
Slide 14: Receive Fixed Macro Swaps
2Q 2024 Earnings Release Webcast Presentation RECEIVE FIXED MACRO SWAPS Macro Swap Maturity Schedule(1) $50mm of receive fixed macro swaps mature in 2024; $250mm mature in 2025 and $175mm mature in 2026 Under these swaps, FCB receives a fixed rate of approximately 50-100bps and pays 1mSOFR (curr
Slide 15: Investment Securities Portfolio
2Q 2024 Earnings Release Webcast Presentation INVESTMENT SECURITIES PORTFOLIO Securities Portfolio Composition(1) Conservative investment portfolio intended to act as a pool of liquidity − $167.9 million in securities were purchased in 2Q24 Weighted average duration of approximately $1.5B 29% HT
Slide 16: Granular Core Deposit Franchise
2Q 2024 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 17: CRE Portfolio
2Q 2024 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio % of total 2Q 24 loans Owner-occupied CRE $ 720.0 8.0% Multifamily 590.5 6.5% Retail 626.0 6.9% Office 398.4 4.4% Office - Medical 63.5 0.7% Hospitality 219.7 2.4% $9.0B Industrial Distr./Warehou
Slide 18: CRE Portfolio: Office
2Q 2024 Earnings Release Webcast Presentation CRE PORTFOLIO: OFFICE Risk profile reflects well-diversified, granular portfolio and conservative credit culture Office credits >$1 million (90% of Office portfolio balances) are formally reviewed by a committee annually Geographic Breakdown(1) Avera
Slide 19: Appendix
2Q 2024 Earnings Release Webcast Presentation APPENDIX 19
Slide 20: Non-GAAP Measures
2Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 2Q24 1Q24 4Q23 3Q23 2Q23 Net Interest Income $95.0 $92.3 $95.7 $97.8 $97.8 Tax equivalent adjustment 0.3 0.3 0.3 0.3 0.3 Net Interest Income (FTE) 95.3 92.6 96.0 98.1 98.1 Noninterest Income (Reported) 25.2 24.0 24.3 2
Slide 21: Non-GAAP Measures
2Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 2Q24 1Q24 4Q23 3Q23 2Q23 Net Income (GAAP) $37.1 $37.5 $44.8 $39.2 $42.8 (after tax) Less: Realized gains/ (losses) on securities (after tax) 0.0 0.0 0.0 0.1 0.0 Less: Merger and acquisition related (after tax) 0
Slide 22: Non-GAAP Measures
2Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 2Q24 1Q24 4Q23 3Q23 2Q23 Total Equity $1,363 $1,333 $1,314 $1,241 $1,232 Less: Intangible assets 385 386 386 387 389 Less: Preferred stock 0 0 0 0 0 Tangible Common
Slide 23: Non-GAAP Measures
2Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Return on Average Tangible Common Equity (%) 2Q24 1Q24 4Q23 3Q23 2Q23 Average Equity $1,344 $1,325 $1,261 $1,249 $1,235 Less: Average intangible assets 385 386 387 388 386 Less: Average preferred stock 0 0 0 0 0 Average Tangible Co