Slide 1: First Commonwealth NYSE: FCF
| ~FIRST al Commonwealth. ee © NYSE: FCF
Slide 2: 2Q 2021 Earnings Release Webcast Presentation
2Q 2021 Earnings Release Webcast Presentation July 28, 2021 2
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
Slide 4: Second Quarter 2021 Highlights
2Q 2021 Earnings Release Webcast Presentation SECOND QUARTER 2021 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of our company $42.9 million Another strong quarter for fee income businesses – Gain on sale of Mortgage loans of $3.1 millio
Slide 5: Net Interest Income and Net Interest Margin
2Q 2021 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1) Net interest income (FTE) decreased by $1.3 million from LQ − $2.4 million decrease in fees and interest on PPP loans o 2Q21 totaled $5.5 million compared to $7.9 million in 1Q21 – Aver
Slide 6: Loans
2Q 2021 Earnings Release Webcast Presentation LOANS Average Loans(1) Average Average loans decreased $9.7 million from LQ – Excluding PPP loans, average loans increased $49.7 million from LQ The yield on loans decreased 11bps from LQ (excluding PPP loans) (2) (2) Period-end Period-end Loans(1)
Slide 7: Deposits
2Q 2021 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average Average deposits increased $375.9 million from LQ and increased $446.0 million YoY Average noninterest-bearing deposits grew $190.8 million compared to LQ The total cost of deposits decreased 4bps from LQ to 0.07%
Slide 8: Noninterest Income
2Q 2021 Earnings Release Webcast Presentation NONINTEREST INCOME Total noninterest income decreased $1.3 Change from million from LQ but increased $4.3 million 2Q21 1Q21 2Q20 1Q21 2Q20 YoY Interchange $7.4 $6.4 $5.9 $1.0 $1.5 Service charges 4.3 4.0 3.3 0.3 1.0 − Fee income represented 27.7% of Tr
Slide 9: Noninterest Expense
2Q 2021 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 2Q21 1Q21 2Q20 1Q21 2Q20 Salaries and benefits • Noninterest expense decreased $0.4 $28.3 $28.7 $28.8 ($0.4) ($0.5) Occupancy 3.9 4.8 4.4 (0.9) (0.5) million to LQ and $1.3 million YoY Furniture and equipment 3.9 3.9 3.7 0
Slide 10: Credit Quality
2Q 2021 Earnings Release Webcast Presentation CREDIT QUALITY Provision expense of $5.4 million increased Provision Expense and Net Charge-offs $9.8 million from LQ. The primary drivers include: − Improved economic forecast offset by strong end-of-period loan growth − $1.2 million increase in unfun
Slide 11: Capital Return
2Q 2021 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios Strong capital levels allow us to continue to return capital to shareholders Announced $25 million share repurchase program on January 26, 2021 − As of July 23, 2021, repurchased 363,891 shares at a weighted average price
Slide 12: Appendix
APPENDIX il cORSTonwealth
Slide 13: Non-GAAP Measures
2Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 2Q21 1Q21 4Q20 3Q20 2Q20 Net Interest Income $68.2 $69.4 $67.5 $66.3 $66.7 Tax equivalent adjustment 0.3 0.3 0.3 0.4 0.4 Net Interest Income (FTE) 68.5 69.7 67.8 66.7 67.1 Noninterest Income (Reported) 26.1 27.4 26.6 2
Slide 14: Non-GAAP Measures
2Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 2Q21 1Q21 4Q20 3Q20 2Q20 Net Income (GAAP) $29.6 $39.8 $25.7 $19.2 $23.9 (after tax) Less: Covid-19 related (after tax) 0.2 0.1 0.2 0.1 0.3 Less: Merger and acquisition related (after tax) 0.0 0.0 0.0 0.0 0.0 Les
Slide 15: Non-GAAP Measures
2Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Return on Average Tangible Common Equity (%) 2Q21 1Q21 4Q20 3Q20 2Q20 Average Equity $1,098 $1,076 $1,078 $1,088 $1,072 Less: Average intangible assets 316 316 317 318 319 Less: Average preferred stock 0 0 0 0 0 Average Tangible Common
Slide 16: Non-GAAP Measures
2Q 2021 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Net Interest Margin (%) 2Q21 1Q21 4Q20 3Q20 2Q20 Net Interest Income (FTE) $68.5 $69.8 $67.8 $66.7 $67.1 Less: Income from Paycheck Protection Program Loans (5.5) (7.9) (5.4) (3.8) (2.7) Less: Income from excess cash (0.1) (0.1) (0