First · NYSE:FCF

First — First Commonwealth Financial — Q3 2024 Earnings Presentation

23 slides from First's earnings presentation, Oct 30, 2024

  1. Slide 1: First Commonwealth NYSE: FCF

    | ~FIRST fl Commonwealth. cece cee c cree cere ese eeeces © NYSE: FCF

  2. Slide 2: 3Q 2024 Earnings Release Webcast Presentation

    3Q 2024 Earnings Release Webcast Presentation October 30, 2024 2

  3. Slide 3: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exch

  4. Slide 4: Third Quarter 2024 Highlights

    3Q 2024 Earnings Release Webcast Presentation THIRD QUARTER 2024 HIGHLIGHTS Diversified balance sheet and revenue streams continue to Highlights improve the fundamental earnings of the company  Core EPS of $0.31, a decrease of $0.05 from the previous quarter $50.9 million ꟷ Provision expense was $1

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

    3Q 2024 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1)  Net interest income (FTE) of $96.9 million increased $1.5 million from LQ and decreased $1.2 million YoY  Net interest margin of 3.56% decreased 1bp from LQ and decreased 20bps YoY − Y

  6. Slide 6: Loans

    3Q 2024 Earnings Release Webcast Presentation LOANS Average Loans(1) Average  Average loans decreased $12.5 million from LQ, but increased $120.8 million YoY  The yield on loans increased 3bps from LQ and 30bps YoY (2) Period-end Period-end Loans(1)  Total loans(1) decreased $33.4 million from th

  7. Slide 7: Deposits

    3Q 2024 Earnings Release Webcast Presentation DEPOSITS Average Average Deposits  Average deposits increased $76.4 million, or 3.2% annualized from LQ  Average noninterest bearing deposits decreased $23.8 million, time deposits grew $71.4 million, interest-bearing demand and savings increased $28.8

  8. Slide 8: Noninterest Income

    3Q 2024 Earnings Release Webcast Presentation NONINTEREST INCOME  Fee income decreased $0.7 million from LQ and decreased $0.4 million YoY Change from 3Q24 2Q24 3Q23 2Q24 3Q23 Interchange $4.1 $7.1 $7.2 ($3.0) 0.3 ($3.1) 0.2  Card-related interchange decreased $3.0 Service Charges 5.8 5.5 5.6 Trus

  9. Slide 9: Noninterest Expense

    3Q 2024 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 3Q24 2Q24 3Q23 2Q24 3Q23  Total noninterest expense increased Salaries and benefits $38.6 $37.3 $35.6 $1.3 $3.0 Occupancy 4.9 4.8 4.8 0.1 0.1 $4.3 million from LQ and increased $2.7 Furniture and equipment 4.3 4.3 4.4 0.0

  10. Slide 10: Credit Quality

    3Q 2024 Earnings Release Webcast Presentation  Provision expense of $10.6 million increased $2.8 CREDIT QUALITY million from LQ due primarily to $2.5 million increase in specific reserves for two legacy commercial credits Provision Expense and Net Charge-offs  The allowance for credit losses as a

  11. Slide 11: Capital Return

    3Q 2024 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios (1) • Strong capital levels allow us to continue to return capital to shareholders • There were 146,850 shares repurchased during the third quarter of 2024; remaining capacity under the current program was $14.6 million as of

  12. Slide 12: Additional Areas of Focus

    3Q 2024 Earnings Release Webcast Presentation ADDITIONAL AREAS OF FOCUS 12

  13. Slide 13: Sources of Liquidity

    3Q 2024 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of June 30, 2024 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $275.1 $0 $275.1 Other (Excess Pledged) $49.2 $0 $49.2 External Sources: FHLB $2,418.5 $200.6 $2,217.9 Federal Reserve $1,626.

  14. Slide 14: Receive Fixed Macro Swaps

    3Q 2024 Earnings Release Webcast Presentation RECEIVE FIXED MACRO SWAPS Macro Swap Maturity Schedule(1)  $50mm of receive fixed macro swaps mature in 4Q24; $250mm mature in 2025 and $175mm mature in 2026  Under these swaps, FCB receives a fixed rate of approximately 50-100bps and pays 1mSOFR (curr

  15. Slide 15: Investment Securities Portfolio

    3Q 2024 Earnings Release Webcast Presentation INVESTMENT SECURITIES PORTFOLIO Securities Portfolio Composition(1)  Conservative investment portfolio intended to act as a pool of liquidity − $107.2 million in securities were purchased in 3Q24  Weighted average duration of approximately $1.6B 27% HT

  16. Slide 16: Granular Core Deposit Franchise

    3Q 2024 Earnings Release Webcast Presentation GRANULAR CORE DEPOSIT FRANCHISE  Strong, granular, well-diversified depository Insured Deposits − Average deposit account size ~$18,000 − Average retail account size ~$11,000 − Average business account size ~$71,000 − 79% of deposits were insured or sec

  17. Slide 17: CRE Portfolio

    3Q 2024 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio % of total 3Q 24 loans Owner-occupied CRE $ 725.9 8.1% Multifamily 540.4 6.0% Retail 640.7 7.1% Office 395.4 4.4% Office - Medical 59.9 0.7% Hospitality 217.5 2.4% $9.0B Industrial Distr./Warehou

  18. Slide 18: CRE Portfolio: Office

    3Q 2024 Earnings Release Webcast Presentation CRE PORTFOLIO: OFFICE Risk profile reflects well-diversified, granular portfolio and conservative credit culture  Office credits >$1 million (90% of Office portfolio balances) are formally reviewed by a committee annually Geographic Breakdown(1)  Avera

  19. Slide 19: Appendix

    3Q 2024 Earnings Release Webcast Presentation APPENDIX 19

  20. Slide 20: Non-GAAP Measures

    3Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 3Q24 2Q24 1Q24 4Q23 3Q23 Net Interest Income $96.5 $95.0 $92.3 $95.7 $97.8 Tax equivalent adjustment 0.4 0.3 0.3 0.3 0.3 Net Interest Income (FTE) 96.9 95.3 92.6 96.0 98.1 Noninterest Income (Reported) 24.7 25.2 24.0 2

  21. Slide 21: Non-GAAP Measures

    3Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 3Q24 2Q24 1Q24 4Q23 3Q23 Net Income (GAAP) $32.1 $37.1 $37.5 $44.8 $39.2 (after tax) Less: Realized gains/ (losses) on securities (after tax) (0.2) 0.0 0.0 0.0 0.1 Less: Merger and acquisition related (after tax)

  22. Slide 22: Non-GAAP Measures

    3Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 3Q24 2Q24 1Q24 4Q23 3Q23 Total Equity $1,410 $1,363 $1,333 $1,314 $1,241 Less: Intangible assets 384 385 386 386 386 Less: Preferred stock 0 0 0 0 0 Tangible Common

  23. Slide 23: Non-GAAP Measures

    3Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Return on Average Tangible Common Equity (%) 3Q24 2Q24 1Q24 4Q23 3Q23 Average Equity $1,389 $1,344 $1,325 $1,261 $1,249 Less: Average intangible assets 384 385 386 387 389 Less: Average preferred stock 0 0 0 0 0 Average Tangible Co

First Commonwealth Financial — Q3 2024 Earnings Presentation on 6ix