First · NYSE:FCF

First — First Commonwealth Financial — Q3 2021 Earnings Presentation

16 slides from First's earnings presentation, Oct 27, 2021

  1. Slide 1: First Commonwealth NYSE: FCF

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  2. Slide 2: 3Q 2021 Earnings Release Webcast Presentation

    3Q 2021 Earnings Release Webcast Presentation October 27, 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: Third Quarter 2021 Highlights

    3Q 2021 Earnings Release Webcast Presentation THIRD QUARTER 2021 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of the company $42.9 million  Another strong quarter for fee income businesses – Card-related interchange income of $7.1 millio

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

    3Q 2021 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1)  Net interest income (FTE) of $70.9 increased by $2.4 million from LQ − Average loans (excluding PPP) increased $196.7 million from LQ − $0.2 million increase in fees and interest on PPP

  6. Slide 6: Loans

    3Q 2021 Earnings Release Webcast Presentation LOANS Average Loans(1) Average  Average loans decreased $8.0 million from LQ – Excluding PPP loans, average loans increased $196.7 million from LQ  The yield on loans decreased 5bps from LQ (excluding PPP loans) (2) (2) Period-end Loans(1) Period-end 

  7. Slide 7: Deposits

    3Q 2021 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average  Average deposits increased $41.8 million from LQ and increased $167.7 million YoY  Average noninterest-bearing deposits grew $42.4 million, or 6.5% annualized compared to LQ  The total cost of deposits decreased 1bps

  8. Slide 8: Noninterest Income

    3Q 2021 Earnings Release Webcast Presentation NONINTEREST INCOME  Total noninterest income increased $1.1 million from LQ and increased $0.4 million Change from 3Q21 2Q21 3Q20 2Q21 3Q20 YoY Interchange $7.1 $7.4 $6.4 ($0.3) $0.7 − Fee income represented 27.6% of Service charges 4.8 4.3 4.0 0.5 0.8

  9. Slide 9: Noninterest Expense

    3Q 2021 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from  Noninterest expense increased $3.5 million 3Q21 2Q21 3Q20 2Q21 3Q20 to LQ and decreased $3.2 million YoY Salaries and benefits $31.1 $28.3 $28.8 $2.8 $2.3 Occupancy 4.0 3.9 4.6 0.1 (0.6) Furniture and equipment 4.1 3.9 4

  10. Slide 10: Credit Quality

    3Q 2021 Earnings Release Webcast Presentation CREDIT QUALITY  Provision expense of $0.3 million decreased Provision Expense and Net Charge-offs $5.1 million from LQ and $10.9 million YoY. The primary drivers include: − $2.4 million decrease to qualitative reserve due to improved economic forecasts

  11. Slide 11: Capital Return

    3Q 2021 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios  Strong capital levels allow us to continue to return capital to shareholders  Under current $25 million share repurchase program announced on January 26, 2021 − A total of 997,517 shares at a weighted average price of $13.

  12. Slide 12: Appendix

    APPENDIX Chititonwantth

  13. Slide 13: Non-GAAP Measures

    3Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 3Q21 2Q21 1Q21 4Q20 3Q20 Net Interest Income $70.6 $68.2 $69.4 $67.5 $66.3 Tax equivalent adjustment 0.3 0.3 0.3 0.3 0.4 Net Interest Income (FTE) 70.9 68.5 69.7 67.8 66.7 Noninterest Income (Reported) 27.2 26.1 27.4 2

  14. Slide 14: Non-GAAP Measures

    3Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 3Q21 2Q21 1Q21 4Q20 3Q20 Net Income (GAAP) $34.1 $29.6 $39.8 $25.7 $19.2 (after tax) Less: Covid-19 related (after tax) 0.0 0.2 0.1 0.2 0.1 Less: Merger and acquisition related (after tax) 0.0 0.0 0.0 0.0 0.0 Les

  15. Slide 15: Non-GAAP Measures

    3Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Return on Average Tangible Common Equity (%) 3Q21 2Q21 1Q21 4Q20 3Q20 Average Equity $1,114 $1,098 $1,076 $1,078 $1,088 Less: Average intangible assets 316 316 316 317 318 Less: Average preferred stock 0 0 0 0 0 Average Tangible Common

  16. Slide 16: Non-GAAP Measures

    3Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Net Interest Margin (%) 3Q21 2Q21 1Q21 4Q20 3Q20 Net Interest Income (FTE) $70.9 $68.5 $69.8 $67.8 $66.7 Less: Income from Paycheck Protection Program Loans (5.7) (5.5) (7.9) (5.4) (3.8) Less: Income from excess cash (0.2) (0.1) (0

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