First · NYSE:FCF

First — First Commonwealth Financial — Q1 2021 Earnings Presentation

18 slides from First's earnings presentation, Apr 28, 2021

  1. Slide 1: NYSE: FCF

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  2. Slide 2: 1Q 2021 Earnings Release Webcast Presentation

    1Q 2021 Earnings Release Webcast Presentation April 28, 2021 2

  3. 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

  4. Slide 4: First Quarter 2021 Highlights

    1Q 2021 Earnings Release Webcast Presentation FIRST QUARTER 2021 HIGHLIGHTS Continued progress on improving our fundamental Highlights performance $45.0 million  Efforts to diversify the balance sheet and revenue streams resulting in a strong fee income quarter Core Pre-tax pre-provision – Mortgage

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

    1Q 2021 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1)  Net interest income (FTE) increased by $1.9 million from LQ − $2.4 million increase in fees and interest on PPP loans o 1Q21 totaled $7.9 million compared to $5.5 million in 4Q20 – Aver

  6. Slide 6: Loans

    1Q 2021 Earnings Release Webcast Presentation LOANS Average Loans(1) Average  Average loans decreased $154 million from LQ – Excluding PPP loans, average loans decreased $95 million from LQ  The yield on loans increased 1bps from LQ (excluding PPP loans) (2) (2) Period-end Period-end Loans(1)  Lo

  7. Slide 7: Deposits

    1Q 2021 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average  Average deposits increased $20 million from LQ and increased $828 million YoY  Average noninterest bearing deposits grew $100.9 million and offset an $81.1 million decrease in average time deposits  The cost of total

  8. Slide 8: Noninterest Income

    1Q 2021 Earnings Release Webcast Presentation NONINTEREST INCOME  Total fee income decreased $1.0 million from LQ and increased $5.0 million YoY Change from 1Q21 4Q20 1Q20 4Q20 1Q20 − Fee income represented 27.2% of Interchange $6.4 $6.4 $5.3 $0.0 $1.1 total operating revenue(1) Service charges 4.0

  9. Slide 9: Noninterest Expense

    1Q 2021 Earnings Release Webcast Presentation NONINTEREST EXPENSE 1Q21 4Q20 1Q20 Change from 4Q20 1Q20  Salaries and benefits decreased $2.7 Salaries and benefits $28.7 $31.4 $30.0 ($2.7) ($1.3) million to the previous quarter. The Occupancy 4.8 3.7 5.0 1.1 (0.2) decrease from the previous quarter

  10. Slide 10: Credit Quality

    1Q 2021 Earnings Release Webcast Presentation CREDIT QUALITY Provision Expense and Net Charge-offs  Provision expense of ($4.4) million decreased $12.1 million from LQ. The primary drivers include: − Changes relating to unfunded commitments − Lower loan outstandings in certain commercial portfolios

  11. Slide 11: COVID-19: Deferrals

    1Q 2021 Earnings Release Webcast Presentation COVID-19: DEFERRALS(1) Initial deferrals were offered to all customers regardless of circumstances; additional 90 day deferrals are being assessed based on credit determination Total Loans Deferrals (December 31, 2020) Deferrals (March 31, 2021) $ in mil

  12. Slide 12: COVID-19: Highest Impacted Commercial Portfolios

    1Q 2021 Earnings Release Webcast Presentation COVID-19: HIGHEST IMPACTED COMMERCIAL PORTFOLIOS Non-pass (% port) Nonperforming (% port) (2) Balance Outstanding 1Q21 1Q21 Deferrals $ in millions # loans $ bal % tot lns 1Q20 4Q20 $ % 1Q20 4Q20 $ % 4Q20 % port 1Q21 % port (1) Commercial Portfolio Retai

  13. Slide 13: Capital Return

    1Q 2021 Earnings Release Webcast Presentation CAPITAL RETURN  Strong capital levels allow us to continue Payout Ratios to return capital to shareholders  Completed remaining $15.6 million authorization from a previous $25 million share repurchase program on October 9, 2020, repurchasing 2.0 millio

  14. Slide 14: Appendix

    APPENDIX &l Coli flonwealth

  15. Slide 15: Non-GAAP Measures

    1Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 1Q21 4Q20 3Q20 2Q20 1Q20 Net Interest Income $69.4 $67.5 $66.3 $66.7 $67.7 Tax equivalent adjustment 0.3 0.3 0.4 0.4 0.4 Net Interest Income (FTE) 69.7 67.8 66.7 67.1 68.1 Noninterest Income (Reported) 27.4 26.6 26.8 2

  16. Slide 16: Non-GAAP Measures

    1Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 1Q21 4Q20 3Q20 2Q20 1Q20 Net Income (GAAP) $39.8 $25.7 $19.2 $23.9 $4.7 (after tax) Less: Covid-19 related (after tax) 0.1 0.2 0.1 0.3 0.0 Less: Merger and acquisition related (after tax) 0.0 0.0 0.0 0.0 0.0 Less

  17. Slide 17: Non-GAAP Measures

    1Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Return on Average Tangible Common Equity (%) 1Q21 4Q20 3Q20 2Q20 1Q20 Average Equity $1,076 $1,078 $1,088 $1,072 $1,071 Less: Average intangible assets 316 317 318 319 319 Less: Average preferred stock 0 0 0 0 0 Average Tangible Common

  18. Slide 18: Non-GAAP Measures

    1Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Net Interest Margin (%) 1Q21 4Q20 3Q20 2Q20 1Q20 Net Interest Income (FTE) $69.8 $67.8 $66.7 $67.1 $68.1 Less: Income from Paycheck Protection Program Loans (7.9) (5.4) (3.8) (2.7) 0.0 Less: Income from excess cash (0.1) (0.1) (0.1

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