Slide 1: First Commonwealth Financial (NYSE: FCF)
fl CHIRST nwealth. cece eer cere recs eee eecce © NYSE: FCF
Slide 2: 4Q 2023 Earnings Release Webcast Presentation
4Q 2023 Earnings Release Webcast Presentation January 31, 2024 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: Fourth Quarter 2023 Highlights
4Q 2023 Earnings Release Webcast Presentation Fourth Quarter 2023 Highlights Diversified balance sheet and revenue streams continue Highlights to improve the fundamental earnings of the company $55.0 million Record Core EPS of $0.44 an increase of $0.05 from the previous quarter. Core Pre-tax pre-
Slide 5: Net Interest Income and Net Interest Margin
4Q 2023 Earnings Release Webcast Presentation NET INTEREST INCOME AND NET INTEREST MARGIN Net Interest Income(1) Net interest income (FTE) of $96.1 million decreased $2.0 million to LQ and was up by $7.7 million YoY − $1.7 billion increase in average interest earning assets YoY − Includes $1.0 bil
Slide 6: Loans
4Q 2023 Earnings Release Webcast Presentation LOANS Average Loans(1) Average Average loans increased $89.9 million from LQ and $1.5 billion YoY The yield on loans increased 10bps from LQ (2) Period-end Period-end Loans(1) Total loans(1) increased $63.7 million from the previous quarter, or 2.8
Slide 7: Deposits
4Q 2023 Earnings Release Webcast Presentation DEPOSITS Average Deposits Average Average deposits increased $37.3 million, or 1.6% annualized, from LQ Average time deposits grew $163.1 million, partially offset by a $84.6 million decrease in noninterest bearing deposits and a $41.3 million decrea
Slide 8: Noninterest Income
4Q 2023 Earnings Release Webcast Presentation NONINTEREST INCOME Change from 4Q23 3Q23 4Q22 3Q23 4Q22 Interchange $7.2 $7.2 $7.0 $0.0 $0.2 Fee income decreased $0.6 million from Service charges 5.6 5.6 4.9 0.0 0.7 LQ and was flat YoY Trust 2.5 2.9 2.5 (0.4) 0.0 Retail brokerage 1.5 1.3 1.2 0.2 0.3
Slide 9: Noninterest Expense
4Q 2023 Earnings Release Webcast Presentation NONINTEREST EXPENSE Change from 4Q23 3Q23 4Q22 3Q23 4Q22 Salaries and benefits $36.2 $35.6 $31.7 $0.6 $4.5 Occupancy 4.6 4.8 4.5 (0.2) 0.1 Total noninterest expense decreased Furniture and equipment 4.4 4.4 4.0 (0.0) 0.4 PA shares tax 0.4 1.6 1.0 (1.2)
Slide 10: Credit Quality
4Q 2023 Earnings Release Webcast Presentation CREDIT QUALITY Provision Expense and Net Charge-offs Provision expense of ($1.9) million decreased $7.8 million from LQ and deceased $11.0 million YoY − The decrease in the provision expense was primarily driven by lower unfunded commitments and improv
Slide 11: Capital Return
4Q 2023 Earnings Release Webcast Presentation CAPITAL RETURN Payout Ratios (1) • 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 73,184 shar
Slide 12: Additional Areas of Focus
4Q 2023 Earnings Release Webcast Presentation ADDITIONAL AREAS OF FOCUS 12
Slide 13: Sources of Liquidity
4Q 2023 Earnings Release Webcast Presentation SOURCES OF LIQUIDITY As of December 31, 2023 Total Amount Net Available Used Availability Internal Sources: Unencumbered Securities $835.8 $0 $835.8 Other (Excess Pledged) $74.3 $0 $74.3 External Sources: FHLB $2,418.9 $1,040.4 $1,378.5 Federal Reserve $
Slide 14: Investment Securities Portfolio
4Q 2023 Earnings Release Webcast Presentation INVESTMENT SECURITIES PORTFOLIO Conservative investment portfolio intended to act as a pool of liquidity Securities Portfolio Composition(1) − $183 million in securities were purchased in 4Q23 Weighted average duration of approximately 5 years, offse
Slide 15: Granular Core Deposit Franchise
4Q 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 ~$18,000 − Average retail account size ~$11,00
Slide 16: CRE Portfolio
4Q 2023 Earnings Release Webcast Presentation CRE PORTFOLIO Total Loans Commercial Real Estate Portfolio % of total 4Q 2023 loans Owner-occupied CRE $ 735.6 8.2% Multifamily 554.2 6.2% Retail 631.8 7.0% Office 415.5 4.6% $9.0B Dec 31, 2023 Office - Medical 56.8 0.6% Hospitality 211.5 2.4% Industrial
Slide 17: CRE Portfolio: Office
4Q 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 (90% of office portfolio balances) - Average commitment size $5.1 million - Approximately $7
Slide 18: Appendix
4Q 2023 Earnings Release Webcast Presentation APPENDIX 18
Slide 19: Non-GAAP Measures
4Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Operating Revenue 4Q23 3Q23 2Q23 1Q23 4Q22 Net Interest Income $95.7 $97.8 $97.8 $94.4 $88.0 Tax equivalent adjustment 0.3 0.3 0.3 0.3 0.3 Net Interest Income (FTE) 96.0 98.1 98.1 94.7 88.3 Noninterest Income (Reported) 24.3 24.8 24.6 2
Slide 20: Non-GAAP Measures
4Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Earnings per Share 4Q23 3Q23 2Q23 1Q23 4Q22 Net Income (GAAP) $44.8 $39.2 $42.8 $30.2 $35.7 (after tax) Core Less:Earnings Covid-19per Share related (after tax) 4Q23 0.0 3Q23 0.0 2Q23 0.0 1Q23 0.0 4Q22 0.0 Less: Merger and acquisit
Slide 21: Non-GAAP Measures
4Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Tangible Common Equity / Tangible Assets (Tangible Common Equity Ratio) 4Q23 3Q23 2Q23 1Q23 4Q22 Total Equity $1,314 $1,241 $1,232 $1,225 $1,052 Less: Intangible assets 386 387 388 386 313 Less: Preferred stock 0 0 0 0 0 Tangible Common
Slide 22: Non-GAAP Measures
4Q 2023 Earnings Release Webcast Presentation NON-GAAP MEASURES Core Return on Average Tangible Common Equity (%) 4Q23 3Q23 2Q23 1Q23 4Q22 Average Equity $1,261 $1,249 $1,235 $1,161 $1,041 Less: Average intangible assets 387 388 386 359 312 Less: Average preferred stock 0 0 0 0 0 Average Tangible Co