First · NYSE:FCF

First — First Commonwealth Financial — Q1 2024 Earnings Presentation

23 slides from First's earnings presentation, Apr 24, 2024

  1. Slide 1: First Commonwealth NYSE: FCF

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

  2. Slide 2: 1Q 2024 Earnings Release Webcast Presentation

    1Q 2024 Earnings Release Webcast Presentation April 24, 2024 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: First Quarter 2024 Highlights

    1Q 2024 Earnings Release Webcast Presentation FIRST QUARTER 2024 HIGHLIGHTS Diversified balance sheet and revenue streams continue to Highlights improve the fundamental earnings of the company $50.8 million  Core EPS of $0.37 which is a decrease of $0.07 from a record $0.44 in the previous quarter

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

    1Q 2024 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1)  Net interest income (FTE) of $92.6 million decreased $3.4 million to LQ and $2.0 million YoY  Net interest margin of 3.52% decreased 13bps from LQ and decreased 49bps YoY − Yield on lo

  6. Slide 6: Loans

    1Q 2024 Earnings Release Webcast Presentation LOANS Average Loans(1) Average  Average loans increased $24.0 million from LQ and $697.2 million YoY  The yield on loans increased 6bps from LQ (2) Period-end Period-end Loans(1)  Total loans(1) increased $33.2 million from the previous quarter, or 1.

  7. Slide 7: Deposits

    1Q 2024 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average  Average deposits increased $51.7 million, or 2.3% annualized, from LQ  Average time deposits grew $169.6 million, partially offset by a $132.2 million decrease in noninterest bearing deposits  The total cost of depos

  8. Slide 8: Noninterest Income

    1Q 2024 Earnings Release Webcast Presentation NONINTEREST INCOME Change from 1Q24 4Q23 1Q23 4Q23 1Q23  Fee income decreased $0.3 million from Interchange $6.7 $7.2 $6.8 ($0.5) ($0.1) LQ and increased $0.8 million YoY Service charges 5.4 5.6 4.9 (0.2) 0.5 Trust 2.7 2.5 2.5 0.2 0.2 Retail brokerage I

  9. Slide 9: Noninterest Expense

    1Q 2024 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 1Q24 4Q23 1Q23 4Q23 1Q23 Salaries and benefits $35.3 $36.2 $34.3 ($0.9) $1.0 Occupancy Furniture and equipment 5.3 4.5 4.6 4.4 5.0 4.2 0.7 0.1 0.3 0.2  Total noninterest expense increased PA shares tax 1.2 0.3 1.3 0.9 (0.

  10. Slide 10: Credit Quality

    1Q 2024 Earnings Release Webcast Presentation CREDIT QUALITY Provision Expense and Net Charge-offs  Provision expense of $4.2 million increased $6.1 million from LQ primarily to provide for net charge- offs  The allowance for credit losses as a percentage of end-of-period loans was 1.32%, which is

  11. Slide 11: Capital Return

    1Q 2024 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios (1) • Strong capital levels allow us to continue to return capital to shareholders • On April 22, 2024, the Board of Directors authorized a 4.0% increase in the quarterly cash dividend to shareholders • There were no shares r

  12. Slide 12: Additional Areas of Focus

    1Q 2024 Earnings Release Webcast Presentation ADDITIONAL AREAS OF FOCUS 12

  13. Slide 13: Sources of Liquidity

    1Q 2024 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of March 31, 2024 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $490.2 $0 $490.2 Other (Excess Pledged) $66.9 $0 $66.9 External Sources: FHLB $2,445.2 $518.3 $1,927.0 Federal Reserve $1,728

  14. Slide 14: Receive Fixed Macro Swaps

    1Q 2024 Earnings Release Webcast Presentation RECEIVE FIXED MACRO SWAPS Macro Swap Maturity Schedule(1)  $75mm of receive fixed macro swaps mature in 2024; $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

    1Q 2024 Earnings Release Webcast Presentation INVESTMENT SECURITIES PORTFOLIO Securities Portfolio Composition(1)  Conservative investment portfolio intended to act as a pool of liquidity − $117.4 million in securities were purchased in 1Q24  Weighted average duration of approximately $1.4B 27% HT

  16. Slide 16: Granular Core Deposit Franchise

    1Q 2024 Earnings Release Webcast Presentation GRANULAR CORE DEPOSIT FRANCHISE  Strong, granular, well-diversified depository Insured Deposits − No single private sector industry accounts for more than 3% of total deposits − Average deposit account size ~$18,000 − Average retail account size ~$11,00

  17. Slide 17: CRE Portfolio

    1Q 2024 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio % of total 1Q 2024 loans Owner-occupied CRE $ 729.0 8.1% Multifamily 578.0 6.4% Retail 620.6 6.9% Office 395.1 4.4% $9.0B Office - Medical 65.4 0.7% Mar 31, 2024 Hospitality 223.5 2.5% Industrial

  18. Slide 18: CRE Portfolio: Office

    1Q 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

    1Q 2024 Earnings Release Webcast Presentation APPENDIX 19

  20. Slide 20: Non-GAAP Measures

    1Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 1Q24 4Q23 3Q23 2Q23 1Q23 Net Interest Income $92.3 $95.7 $97.8 $97.8 $94.4 Tax equivalent adjustment 0.3 0.3 0.3 0.3 0.3 Net Interest Income (FTE) 92.6 96.0 98.1 98.1 94.7 Noninterest Income (Reported) 24.0 24.3 24.8 2

  21. Slide 21: Non-GAAP Measures

    1Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Core Earnings Earningsper per Share Share 1Q24 4Q23 4Q23 3Q23 3Q23 2Q23 2Q23 1Q23 1Q23 4Q22 Net Net Income Income (GAAP) (GAAP) $37.5 $44.8 $44.8 $39.2 $39.2 $42.8 $42.8 $30.2 $30.2 $35.7 (after (after tax) tax) Less: Less: Covid-1

  22. Slide 22: Non-GAAP Measures

    1Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 1Q24 4Q23 3Q23 2Q23 1Q23 Total Equity $1,333 $1,314 $1,241 $1,232 $1,225 Less: Intangible assets 386 386 387 388 386 Less: Preferred stock 0 0 0 0 0 Tangible Common

  23. Slide 23: Non-GAAP Measures

    1Q 2024 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Return on Average Tangible Common Equity (%) 1Q24 4Q23 3Q23 2Q23 1Q23 Average Equity $1,325 $1,261 $1,249 $1,235 $1,161 Less: Average intangible assets 386 387 388 386 359 Less: Average preferred stock 0 0 0 0 0 Average Tangible Co

First Commonwealth Financial — Q1 2024 Earnings Presentation on 6ix