First · NYSE:FCF

First — First Commonwealth Financial — Q2 2023 Earnings Presentation

22 slides from First's earnings presentation, Jul 26, 2023

  1. Slide 1: First Commonwealth NYSE: FCF

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  2. Slide 2: 2Q 2023 Earnings Release Webcast Presentation

    2Q 2023 Earnings Release Webcast Presentation July 26, 2023 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: Second Quarter 2023 Highlights

    2Q 2023 Earnings Release Webcast Presentation SECOND QUARTER 2023 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of the company $56.3 million  Record net interest income (FTE) of $98.1 million increased $3.5 million from the previous quart

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

    2Q 2023 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN  Net interest income (FTE) of $98.1 million Net Interest Income(1) increased by $3.4 million from LQ and $24.2 million YoY − $643.2 million increase in average interest earning assets from LQ − Includes $604.3

  6. Slide 6: Loans

    2Q 2023 Earnings Release Webcast Presentation LOANS Average Loans(1) Average  Average loans increased $387.6 million from LQ and $1,652.8 million YoY  Average loan growth excluding Centric totaled $77.2 million, or 3.7% annualized  $310.4 million average loan growth were acquired from Centric  T

  7. Slide 7: Deposits

    2Q 2023 Earnings Release Webcast Presentation DEPOSITS Average Average Deposits  Average deposits (excluding acquired deposits) increased $221.4 million, or 10.8% annualized, from LQ  Average acquired deposits totaled $695.9 million  Average interest-bearing demand and savings deposits (excluding

  8. Slide 8: Noninterest Income

    2Q 2023 Earnings Release Webcast Presentation NONINTEREST INCOME Change from 2Q23 1Q23 2Q22 1Q23 2Q22 Interchange Service charges $7.4 5.3 $6.8 4.9 $7.1 4.9 $0.6 0.4 $0.3 0.4  Total noninterest income increased $1.5 Trust 2.5 2.5 2.6 0.0 (0.1) million from LQ and was relatively flat YoY Retail brok

  9. Slide 9: Noninterest Expense

    2Q 2023 Earnings Release Webcast Presentation NONINTEREST EXPENSE  Total noninterest expense decreased $5.5 Change from million from LQ and increased $10.2 million 2Q23 1Q23 2Q22 1Q23 2Q22 YoY, while total operating expense Salaries and benefits $36.7 $34.3 $31.0 $2.4 $5.7 Occupancy 4.8 5.0 4.2 (0.

  10. Slide 10: Credit Quality

    2Q 2023 Earnings Release Webcast Presentation CREDIT QUALITY  Provision expense of $2.8 million Provision Expense and Net Charge-offs decreased $5.2 million from LQ and decreased $1.3 million YoY − Previous quarter included $10.7 million of Day-1 non-PCD provision due to Centric acquisition − Reser

  11. Slide 11: Capital Return

    2Q 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 766,393 sha

  12. Slide 12: Additional Areas of Focus

    ADDITIONAL AREAS OF FOCUS Ech RSTonwealth

  13. Slide 13: Sources of Liquidity

    2Q 2023 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of March 31, 2023 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $594.2 $0 $594.2 Other (Excess Pledged) $34.2 $0 $34.2 External Sources: FHLB $2,432.2 $1,153.8 $1,278.4 Federal Reserve $1,0

  14. Slide 14: Investment Securities Portfolio

    2Q 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 − $25 million in securities were purchas

  15. Slide 15: Granular Core Deposit Franchise

    2Q 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

  16. Slide 16: CRE Portfolio

    2Q 2023 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio % of total 2Q 2023 loans Owner-occupied CRE $ 693.3 8.0% Multifamily 486.3 5.6% Retail 569.2 6.6% Office 470.4 5.4% $8.8B Office - Medical 50.2 0.6% June 30, 2023 Hospitality 224.3 2.6% Industria

  17. Slide 17: CRE Portfolio: Office

    2Q 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 (86% of office portfolio balances) - Average commitment size $4.8 million - Approximately $9

  18. Slide 18: Appendix

    APPENDIX Chititonwantth

  19. Slide 19: Non-GAAP Measures

    2Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 2Q23 1Q23 4Q22 3Q22 2Q22 Net Interest Income $97.8 $94.4 $88.0 $82.4 $73.7 Tax equivalent adjustment 0.3 0.3 0.3 0.2 0.2 Net Interest Income (FTE) 98.1 94.7 88.3 82.6 73.9 Noninterest Income (Reported) 24.6 23.0 24.3 2

  20. Slide 20: Non-GAAP Measures

    2Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 2Q23 1Q23 4Q22 3Q22 2Q22 Net Income (GAAP) $42.8 $30.2 $35.7 $34.0 $30.8 (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) (0.1) 6.8 1.0 0.4 0.0 L

  21. Slide 21: Non-GAAP Measures

    2Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 2Q23 1Q23 4Q22 3Q22 2Q22 Total Equity $1,232 $1,225 $1,052 $1,023 $1,049 Less: Intangible assets 388 386 313 313 313 Less: Preferred stock 0 0 0 0 0 Tangible Common

  22. Slide 22: Non-GAAP Measures

    2Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 2Q23 1Q23 4Q22 3Q22 2Q22 Total Equity $1,232 $1,225 $1,052 $1,023 $1,049 Less: Intangible assets 388 386 313 313 313 Less: Preferred stock 0 0 0 0 0 Tangible Common

First Commonwealth Financial — Q2 2023 Earnings Presentation on 6ix