First · NYSE:FCF

First — First Commonwealth Financial — Q4 2024 Earnings Presentation

23 slides from First's earnings presentation, Jan 29, 2025

  1. Slide 1: First Commonwealth NYSE: FCF

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  2. Slide 2: 4Q 2024 Earnings Release Webcast Presentation

    4Q 2024 Earnings Release Webcast Presentation January 29, 2025 2

  3. 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

  4. Slide 4: Fourth Quarter 2024 Highlights

    4Q 2024 Earnings Release Webcast Presentation FOURTH QUARTER 2024 HIGHLIGHTS Diversified balance sheet and revenue streams continue to Highlights improve the fundamental earnings of the company  Core EPS of $0.35, an increase of $0.04 from the previous quarter $51.4 million ꟷ Provision expense was

  5. Slide 5: Net Interest Income and Net Interest Margin

    4Q 2024 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1)  Net interest income (FTE) of $95.4 million decreased $1.5 million from LQ and decreased $0.7 million YoY  Net interest margin of 3.54% decreased 2bp from LQ and decreased 11bps YoY − Y

  6. Slide 6: Loans

    4Q 2024 Earnings Release Webcast Presentation LOANS Average Loans(1) Average  Average loans decreased $29.3 million from LQ and increased $59.5 million YoY  The yield on loans decreased 12bps from LQ but increased 8bps YoY (2) Period-end Loans(1) Period-end  Total loans(1) increased $37.2 million

  7. Slide 7: Deposits

    4Q 2024 Earnings Release Webcast Presentation DEPOSITS Average Average Deposits  Average deposits increased $207.1 million, or 8.7% annualized from LQ  A large customer deposit of approximately $175 million was received in the final days of the previous quarter which drove the majority of the aver

  8. Slide 8: Noninterest Income

    4Q 2024 Earnings Release Webcast Presentation NONINTEREST INCOME  Fee income increased $0.5 million from LQ and increased $0.9 million YoY Change from 4Q24 3Q24 4Q23 3Q24 4Q23 Interchange $3.9 $4.1 $7.2 ($0.2) ($3.3)  Swap fee income increased $0.7 million Service Charges 5.7 5.8 5.6 (0.1) 0.1 Tru

  9. Slide 9: Noninterest Expense

    4Q 2024 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 4Q24 3Q24 4Q23 3Q24 4Q23 ($0.6) $1.8 Salaries and benefits Occupancy $38.0 4.8 $38.6 4.9 $36.2 4.6 (0.1) 0.2  Total noninterest expense decreased Furniture and equipment 4.4 4.3 4.4 0.1 0.0 $0.8 million from LQ and increa

  10. Slide 10: Credit Quality

    4Q 2024 Earnings Release Webcast Presentation  Provision expense of $6.5 million decreased $4.1 CREDIT QUALITY million from LQ due primarily to higher specific reserves for three commercial credits in the previous quarter Provision Expense and Net Charge-offs  The allowance for credit losses as a

  11. Slide 11: Capital Return

    4Q 2024 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios (1) • Strong capital levels allow us to continue to return capital to shareholders • There were 476,979 shares repurchased during the fourth quarter of 2024; remaining capacity under the current program was $6.7 million as of

  12. Slide 12: Additional Areas of Focus

    4Q 2024 Earnings Release Webcast Presentation ADDITIONAL AREAS OF FOCUS 12

  13. Slide 13: Sources of Liquidity

    4Q 2024 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of September 30, 2024 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $699.1 $0 $699.1 Other (Excess Pledged) $79.6 $0 $79.6 External Sources: FHLB $2,524.3 $270.5 $2,253.8 Federal Reserve $1

  14. Slide 14: Receive Fixed Macro Swaps

    4Q 2024 Earnings Release Webcast Presentation RECEIVE FIXED MACRO SWAPS Macro Swap Maturity Schedule(1)  $50mm of receive fixed macro swaps matured in 4Q24; $250mm mature in 2025 and $175mm mature in 2026  Under these swaps, FCB receives a fixed rate of approximately 50-100bps and pays 1mSOFR (cur

  15. Slide 15: Investment Securities Portfolio

    4Q 2024 Earnings Release Webcast Presentation INVESTMENT SECURITIES PORTFOLIO Securities Portfolio Composition(1)  Conservative investment portfolio intended to act as a pool of liquidity − $126.3 million in securities were purchased in 4Q24 with a weighted average yield of 4.95% $1.6B 26% HTM/  W

  16. Slide 16: Granular Core Deposit Franchise

    4Q 2024 Earnings Release Webcast Presentation GRANULAR CORE DEPOSIT FRANCHISE  Strong, granular, well-diversified depository Insured Deposits − Average deposit account size ~$18,500 − Average retail account size ~$11,000 − Average business account size ~$70,000 − 77% of deposits were insured or sec

  17. Slide 17: CRE Portfolio

    4Q 2024 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio % of total 4Q 24 loans Owner-occupied CRE $ 722.6 8.0% Multifamily 597.1 6.6% Retail 651.5 7.2% Office 410.9 4.5% Office - Medical 59.0 0.7% Hospitality 191.4 2.1% $9.0B Industrial Distr./Warehou

  18. Slide 18: CRE Portfolio: Office

    4Q 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

  19. Slide 19: Appendix

    4Q 2024 Earnings Release Webcast Presentation APPENDIX 19

  20. Slide 20: Non-GAAP Measures

    4Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 4Q24 3Q24 2Q24 1Q24 4Q23 Net Interest Income $95.1 $96.5 $92.3 $95.7 $95.7 Tax equivalent adjustment 0.4 0.3 0.3 0.3 0.3 Net Interest Income (FTE) 95.5 96.8 92.6 96.0 96.0 Noninterest Income (Reported) 25.3 24.7 24.0 2

  21. Slide 21: Non-GAAP Measures

    4Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 4Q24 3Q24 2Q24 1Q24 4Q23 Net Income (GAAP) $35.8 $32.1 $37.5 $44.8 $44.8 (after tax) Less: Realized gains/ (losses) on securities (after tax) 0.0 (0.2) 0.0 0.0 0.0 Less: Merger and acquisition related (after tax)

  22. Slide 22: Non-GAAP Measures

    4Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 4Q24 3Q24 2Q24 1Q24 4Q23 Total Equity $1,405 $1,410 $1,333 $1,314 $1,314 Less: Intangible assets 383 384 386 386 387 Less: Preferred stock 0 0 0 0 0 Tangible Common

  23. Slide 23: Non-GAAP Measures

    4Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Return on Average Tangible Common Equity (%) 4Q24 3Q24 2Q24 1Q24 4Q23 Average Equity $1,404 $1,389 $1,325 $1,261 $1,261 Less: Average intangible assets 384 384 386 387 387 Less: Average preferred stock 0 0 0 0 0 Average Tangible Co

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