First · NYSE:FCF

First — First Commonwealth Financial — Q4 2021 Earnings Presentation

16 slides from First's earnings presentation, Jan 26, 2022

  1. Slide 1: First Commonwealth NYSE: FCF

    | ~FIRST fl Commonwealth. i ie ee ee a © NYSE: FCF

  2. Slide 2: 4Q 2021 Earnings Release Webcast Presentation

    4Q 2021 Earnings Release Webcast Presentation January 26, 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: Fourth Quarter 2021 Highlights

    4Q 2021 Earnings Release Webcast Presentation FOURTH QUARTER 2021 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of the company $40.9 million  Total loans (excl. PPP) grew $186.1 million, or 11.2% annualized from the previous quarter Core

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

    4Q 2021 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1)  Net interest income (FTE) of $70.5 million decreased by $0.4 million from LQ − $1.7 million decrease in fees and interest on PPP loans from LQ − Average loans (excluding PPP) increased

  6. Slide 6: Loans

    4Q 2021 Earnings Release Webcast Presentation LOANS Average Loans(1) Average  Average loans increased $28.2 million from LQ – Excluding PPP loans, average loans increased $141.9 million from LQ, or 8.6% annualized  The yield on loans decreased 2bps from LQ (excluding PPP loans) (2) (2) Period-end

  7. Slide 7: Deposits

    4Q 2021 Earnings Release Webcast Presentation DEPOSITS Average Average Deposits  Average deposits decreased $33.1 million from LQ and increased $405.0 million YoY  Average noninterest-bearing deposits grew $5.7 million and partially offset a $21.8 million decrease in average time deposits and a $1

  8. Slide 8: Noninterest Income

    4Q 2021 Earnings Release Webcast Presentation NONINTEREST INCOME Change from  Total noninterest income decreased $1.1 4Q21 3Q21 4Q20 3Q21 4Q20 million from LQ and decreased $0.5 million Interchange $7.1 $7.1 $6.4 $0.0 $0.7 Service charges 4.9 4.8 4.3 0.1 0.6 YoY Trust 2.8 3.1 2.3 (0.3) 0.5 − Fee in

  9. Slide 9: Noninterest Expense

    4Q 2021 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from Salaries and benefits 4Q21 $31.4 3Q21 $31.1 4Q20 $31.4 3Q21 $0.3 4Q20 $0.0  Noninterest expense increased $0.4 million Occupancy 4.0 4.0 3.7 0.0 0.3 to LQ and increased $0.8 million YoY Furniture and equipment 3.8 4.1 3.9

  10. Slide 10: Credit Quality

    4Q 2021 Earnings Release Webcast Presentation CREDIT QUALITY Provision Expense and Net Charge-offs  Provision expense of ($2.7) million decreased $3.1 million from LQ and decreased $10.4 million YoY. The primary drivers include: − $1.2 million decrease to qualitative reserve due to improved charge

  11. Slide 11: Capital Return

    4Q 2021 Earnings Release Webcast Presentation CAPITAL RETURN  Strong capital levels allow us to continue to return capital to shareholders Payout Ratios  A total of 1,000,473 shares were purchased during the fourth quarter at a weighted average price of $15.28  A total of 2,098,726 shares were pu

  12. Slide 12: Appendix

    APPENDIX Chititonwantth

  13. Slide 13: Non-GAAP Measures

    4Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 4Q21 3Q21 2Q21 1Q21 4Q20 Net Interest Income $70.2 $70.6 $68.2 $69.4 $67.5 Tax equivalent adjustment 0.3 0.3 0.3 0.3 0.3 Net Interest Income (FTE) 70.5 70.9 68.5 69.7 67.8 Noninterest Income (Reported) 26.1 27.2 26.1 2

  14. Slide 14: Non-GAAP Measures

    4Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 4Q21 3Q21 2Q21 1Q21 4Q20 Net Income (GAAP) $34.8 $34.1 $29.6 $39.8 $25.7 (after tax) Less: Covid-19 related (after tax) 0.0 0.0 0.2 0.1 0.2 Less: Merger and acquisition related (after tax) 0.0 0.0 0.0 0.0 0.0 Les

  15. Slide 15: Non-GAAP Measures

    4Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Return on Average Tangible Common Equity (%) 4Q21 3Q21 2Q21 1Q21 4Q20 Average Equity $1,117 $1,114 $1,098 $1,076 $1,078 Less: Average intangible assets 315 316 316 316 317 Less: Average preferred stock 0 0 0 0 0 Average Tangible Common

  16. Slide 16: Non-GAAP Measures

    4Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Net Interest Margin (%) 4Q21 3Q21 2Q21 1Q21 4Q20 Net Interest Income (FTE) $70.5 $70.9 $68.5 $69.8 $67.8 Less: Income from Paycheck Protection Program Loans (4.1) (5.7) (5.5) (7.9) (5.4) Less: Income from excess cash 0.0 (0.2) (0.1

First Commonwealth Financial — Q4 2021 Earnings Presentation on 6ix