First · NYSE:FCF

First — First Commonwealth Financial — Q1 2023 Earnings Presentation

22 slides from First's earnings presentation, Apr 26, 2023

  1. Slide 1: First Commonwealth Financial (NYSE: FCF)

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  2. Slide 2: 1Q 2023 Earnings Release Webcast Presentation

    1Q 2023 Earnings Release Webcast Presentation April 26, 2023 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 2023 Highlights

    1Q 2023 Earnings Release Webcast Presentation FIRST QUARTER 2023 HIGHLIGHTS Diversified balance sheet and revenue streams continue Highlights to improve the earnings power of the company $54.5 million  Average organic deposits (excluding Centric acquisition) grew $271.5 million, or 13.8% annualized

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

    1Q 2023 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN  Net interest income (FTE) of $94.7 million Net Interest Income(1) increased by $6.3 million from LQ and $26.2 million YoY − $803.0 million increase in average interest earning assets − Includes $637.6 million

  6. Slide 6: Loans

    1Q 2023 Earnings Release Webcast Presentation LOANS Average Loans(1) Average $7,491 $8,301 $6,894  Average loans increased $810 million from LQ and $1,407 million YoY  $632.8 million average loans were acquired from Centric  The yield on loans increased 51bps from LQ Period-end (2)  Total loans(

  7. Slide 7: Deposits

    1Q 2023 Earnings Release Webcast Presentation DEPOSITS Average  Average deposits (excluding acquired deposits) increased $271.5 million, or 13.8% annualized, Average Deposits from LQ, including the transfer of $109.1 million of average off-balance sheet Trust deposits onto the Company’s balance she

  8. Slide 8: Noninterest Income

    1Q 2023 Earnings Release Webcast Presentation NONINTEREST INCOME Change from 1Q23 4Q22 1Q22 4Q22 1Q22  Total noninterest income decreased $1.3 Interchange $6.8 $7.0 $6.5 ($0.2) $0.3 Service charges 4.9 4.9 4.6 0.0 0.3 million from LQ and decreased $1.0 million Trust 2.5 2.5 2.7 0.0 (0.2) YoY Retail

  9. Slide 9: Noninterest Expense

    1Q 2023 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from  Total noninterest expense increased $13.1 1Q23 4Q22 1Q22 4Q22 1Q22 million from LQ and increased $15.7 million Salaries and benefits $34.3 $31.7 $30.9 $2.6 $3.4 YoY Occupancy 5.0 4.5 4.8 0.5 0.2 Furniture and equipment 4

  10. Slide 10: Credit Quality

    1Q 2023 Earnings Release Webcast Presentation CREDIT QUALITY  Provision expense of $8.0 million Provision Expense and Net Charge-offs decreased $1.1 million from LQ and increased $6.0 million YoY − Includes $10.7 million of Day-1 non- PCD provision due to Centric acquisition − Reserve release for t

  11. Slide 11: Capital Return

    1Q 2023 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios  Strong capital levels allow us to continue to return capital to shareholders  On April 24, 2023, the Board of Directors authorized a 4.2% increase in the quarterly cash dividend to shareholders  There were 21,342 shares r

  12. Slide 12: Additional Areas of Focus

    ADDITIONAL AREAS OF FOCUS Ech RSTonwealth

  13. Slide 13: Sources of Liquidity

    1Q 2023 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of March 31, 2023 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $601.1 $0 $601.1 Other (Excess Pledged) $43.7 $0 $43.7 External Sources: FHLB $2,041.6 $871.5 $1,170.2 Federal Reserve $1,081

  14. Slide 14: Investment Securities Portfolio

    1Q 2023 Earnings Release Webcast Presentation INVESTMENT SECURITIES PORTFOLIO  Conservative investment portfolio intended to Securities Portfolio Composition(1) act as a pool of liquidity − LTM securities runoff has been redeployed into higher yielding loans − No securities were purchased in 1Q23 

  15. Slide 15: Granular Core Deposit Franchise

    1Q 2023 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 ~$19,000 − Average retail account size ~$13,00

  16. Slide 16: CRE Portfolio

    1Q 2023 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio 1Q 2023 of total loans Owner-occupied CRE $ 690.3 8.0% Multifamily 484.2 5.6% Retail 566.7 6.5% Office 468.3 5.4% Hospitality 223.3 2.6% $8.7B March 31, 2023 Industrial Distribution Warehouse RE

  17. Slide 17: CRE Portfolio: Office

    1Q 2023 Earnings Release Webcast Presentation CRE PORTFOLIO: OFFICE  Annual Industry Studies: Analyze key credit metrics Geographic Breakdown(1) for each CRE portfolio  Review of office credits >$1 million (83% of office portfolio balances) - Average commitment size $5.4 million - Approximately $1

  18. Slide 18: Appendix

    APPENDIX Chititonwantth

  19. Slide 19: Non-GAAP Measures

    1Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 1Q23 4Q22 3Q22 2Q22 1Q22 Net Interest Income $94.4 $88.0 $82.4 $73.7 $68.2 Tax equivalent adjustment 0.3 0.3 0.2 0.2 0.2 Net Interest Income (FTE) 94.7 88.3 82.6 73.9 68.4 Noninterest Income (Reported) 23.0 24.3 25.9 2

  20. Slide 20: Non-GAAP Measures

    1Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 1Q23 4Q22 3Q22 2Q22 1Q22 Net Income (GAAP) $30.2 $35.7 $34.0 $30.8 $27.7 (after tax) Less: Covid-19 related (after tax) 0.0 0.0 0.0 0.0 0.0 Less: Merger and acquisition related (after tax) 6.8 1.0 0.4 0.0 0.0 Les

  21. Slide 21: Non-GAAP Measures

    1Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Return on Average Tangible Common Equity (%) 1Q23 4Q22 3Q22 2Q22 1Q22 Average Equity $1,161 $1,041 $1,063 $1,064 $1,107 Less: Average intangible assets 359 312 314 314 314 Less: Average preferred stock 0 0 0 0 0 Average Tangible Common

  22. Slide 22: Non-GAAP Measures

    1Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 1Q23 4Q22 3Q22 2Q22 1Q22 Total Equity $1,225 $1,052 $1,023 $1,049 $1,068 Less: Intangible assets 386 313 313 313 314 Less: Preferred stock 0 0 0 0 0 Tangible Common

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