First · NYSE:FCF

First — First Commonwealth Financial — Q2 2022 Earnings Presentation

16 slides from First's earnings presentation, Jul 27, 2022

  1. Slide 1: NYSE: FCF

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  2. Slide 2: 2Q 2022 Earnings Release Webcast Presentation

    2Q 2022 Earnings Release Webcast Presentation July 27, 2022 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 2022 Highlights

    2Q 2022 Earnings Release Webcast Presentation SECOND QUARTER 2022 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of the company $42.4 million  Total loans (excl. PPP) grew $186.0 million, or 10.8% annualized from the previous quarter Core

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

    2Q 2022 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1)  Net interest income (FTE) of $73.9 million increased by $5.5 million from LQ − $1.2 million decrease in interest and fees on PPP loans from LQ − Approximately $16.0 million of PPP loans

  6. Slide 6: Loans

    2Q 2022 Earnings Release Webcast Presentation LOANS Average Average Loans(1)  Average loans increased $142.6 million from LQ $6,893 $7,036 $6,772 – Excluding PPP loans, average loans increased $173.4 million from LQ, or 10.2% annualized  The yield on loans increased 22 bps from LQ (excluding PPP l

  7. Slide 7: Deposits

    2Q 2022 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average  Average deposits increased $133.1 million from LQ  Average noninterest bearing deposits grew $65.9 million and offset a $20.1 million decrease in average time deposits  The total cost of deposits of 4bps remains unch

  8. Slide 8: Noninterest Income

    2Q 2022 Earnings Release Webcast Presentation NONINTEREST INCOME Change from 2Q22 1Q22 2Q21 1Q22 2Q21 Interchange $7.1 $6.5 $7.4 $0.6 ($0.3)  Total noninterest income increased $0.5 Service charges 4.9 4.6 4.3 0.3 0.6 million from LQ and decreased $1.6 million Trust 2.6 2.7 2.7 (0.1) (0.1) YoY Reta

  9. Slide 9: Noninterest Expense

    2Q 2022 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 2Q22 1Q22 2Q21 1Q22 2Q21 Salaries and benefits $30.9 $30.9 $28.3 $0.0 $2.6 Occupancy 4.2 4.8 3.9 (0.6) 0.3 Furniture and equipment 3.9 3.7 3.9 0.2 0.0  Total noninterest expense remained flat to PA shares tax 1.4 1.2 1.3

  10. Slide 10: Credit Quality

    2Q 2022 Earnings Release Webcast Presentation CREDIT QUALITY Provision Expense and Net Charge-offs  Provision expense of $4.1 million increased $2.1 million from LQ and decreased $1.3 million YoY − Strong loan growth, resulted in a $2.4 million increase in allowance for credit losses (1) − The allo

  11. Slide 11: Capital Return

    2Q 2022 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios  Strong capital levels allow us to continue to return capital to shareholders  On April 25, 2022, the Board of Directors authorized a 4.3% increase in the quarterly cash dividend to shareholders  A total of 715,307 shares

  12. Slide 12: Appendix

    APPENDIX Chititonwantth

  13. Slide 13: Non-GAAP Measures

    2Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 2Q22 1Q22 4Q21 3Q21 2Q21 Net Interest Income $73.7 $68.2 $70.2 $70.6 $68.2 Tax equivalent adjustment 0.2 0.2 0.3 0.3 0.3 Net Interest Income (FTE) 73.9 68.4 70.5 70.9 68.5 Noninterest Income (Reported) 24.5 24.0 26.1 2

  14. Slide 14: Non-GAAP Measures

    2Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 2Q22 1Q22 4Q21 3Q21 2Q21 Net Income (GAAP) $30.8 $27.7 $34.8 $34.1 $29.6 (after tax) Less: Covid-19 related (after tax) 0.0 0.0 0.0 0.0 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

    2Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Return on Average Tangible Common Equity (%) 2Q22 1Q22 4Q21 3Q21 2Q21 Average Equity $1,064 $1,107 $1,117 $1,114 $1,098 Less: Average intangible assets 314 314 315 316 316 Less: Average preferred stock 0 0 0 0 0 Average Tangible Common

  16. Slide 16: Non-GAAP Measures

    2Q 2022 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Net Interest Margin (%) 2Q22 1Q22 4Q21 3Q21 2Q21 Net Interest Income (FTE) $73.9 $68.4 $70.5 $70.9 $68.5 Less: Income from Paycheck Protection Program Loans (0.6) (1.8) (4.1) (5.7) (5.5) Less: Income from excess cash (0.6) 0.0 0.0

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