First Commonwealth Announces First Quarter 2024 Earnings; Increases Quarterly Dividend

INDIANA, Pa., April 23, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the first quarter of 2024.*Financial Summary*

(dollars in thousands, *For the Three Months Ended*
except per share data) *March 31,*   *December 31,*   *March 31,*   *2024*       *2023*       *2023*  
*Reported Results*          
Net income $ 37,549     $ 44,827     $ 30,224  
*Diluted earnings per share* *$* *0.37*     *$* *0.44*     *$* *0.30*  
Return on average assets   1.31 %     1.56 %     1.17 %
Return on average equity   11.40 %     14.11 %     10.56 %          
*Operating Results (non-GAAP)*^*(1)*          
Core net income $ 37,639     $ 44,964     $ 45,387  
*Core diluted earnings per share* *$* *0.37*     *$* *0.44*     *$* *0.45*  
Core pre-tax pre-provision net revenue $ 50,833     $ 55,028     $ 54,481  
Provision expense $ 4,238     $ (1,865 )   $ (2,650 )
Provision for credit losses - acquisition day 1 non-PCD $ —     $ —     $ 10,653  
Net charge-offs $ 4,302     $ 16,338     $ 1,173  
Reserve build/(release)^(2) $ 1,380     $ (16,619 )   $ 30,979  
Core return on average assets (ROAA)   1.31 %     1.56 %     1.75 %
Core pre-tax pre-provision ROAA   1.77 %     1.91 %     2.11 %
Return on average tangible common equity   16.51 %     20.78 %     15.75 %
Core return on average tangible common equity   16.54 %     20.85 %     23.42 %
Core efficiency ratio   55.05 %     53.00 %     52.41 %
Net interest margin (FTE)   3.52 %     3.65 %     4.01 %
^(1) Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures may be found at the end of the financial statements which accompany this release.
^(2) Reserve build/(release) represents the net change in the Company's allowance for credit losses (ACL) from the prior period.

*First Quarter 2024 Highlights*

Financial results

· GAAP Net income of $37.5 million and diluted earnings per share totaled $0.37, an increase of $7.3 million, or $0.07 per share from the first quarter of 2023 and a decrease of $7.3 million, or $0.07 per share from the prior quarter. The results during the first quarter of 2023 included $19.2 million, or $0.15 per share, of merger-related expenses and day-1 non-purchased credit deterioration (PCD) provision from the Company’s acquisition of Centric Financial Corporation (Centric).

· Core pre-tax pre-provision net revenue (PPNR)^(1) totaled $50.8 million, a decrease of $3.6 million from the first quarter of 2023 and a decrease of $4.2 million from the previous quarter. The decrease from the prior quarter was primarily as a result of a 13 basis point decrease in the net interest margin (FTE)

· Average deposits increased $51.7 million from the previous quarter, or 2.3% annualized, including a $169.6 million increase in average time deposits offsetting a $132.2 million decrease in noninterest-bearing deposits.

· End of period deposits increased $254.1 million, or 11.1% annualized from the previous quarter, including a $186.3 million increase in time deposits and a $113.0 million increase in savings deposits offsetting a $54.0 million decrease in noninterest-bearing deposits
· 82% of deposits were insured or secured as of March 31, 2024

· Total loans increased $33.2 million, or 1.5% annualized from the previous quarter
· The loan-to-deposit ratio decreased 228 basis points to 95.6% in the first quarter of 2024
· Net interest income (FTE) of $92.6 million decreased $3.4 million from the previous quarter and $2.1 million from the first quarter of 2023
· Noninterest income of $24.0 million decreased $0.3 million from the previous quarter
· Noninterest expense (excluding merger-related expense) of $65.5 million increased $0.5 million from the previous quarter
· Tangible book value per share increased $0.17, or 7.4% annualized from the previous quarter

· AOCI as a percentage of tangible common equity increased 53 basis points to 12.58% in the first quarter of 2024

Profitability

· The net interest margin of 3.52% decreased 13 basis points compared to the prior quarter
· The core efficiency ratio^(1) increased by 205 basis points to 55.05% compared to the prior quarter
· The core ROAA decreased 25 basis points to 1.31% compared to the prior quarter
· Core pre-tax pre-provision ROAA^(1) of 1.77% for the quarter ended March 31, 2023

Strong capital positions

· On April 22, 2024, the Board of Directors authorized a 4.0% increase in the quarterly cash dividend to shareholders
· Bank-level Common Equity Tier 1 Capital (CET1) ratio of 11.1%, which represents $435.3 million in excess capital above the regulatory “well capitalized” requirement of 6.5%.
· There were no shares repurchased in the first quarter of 2024. The remaining capacity under the current program was $17.4 million as of March 31, 2024.
· On June 1, 2024, the Bank will retire $50 million of variable rate subordinate corporate debentures with a current interest rate of 7.45%. This will reduce Total Risk Based Capital by approximately 44 basis points and improve the net interest margin by approximately three basis points beginning in the third quarter of 2024. The Company expects to incur approximately $360 thousand in other operating expenses in the second quarter of 2024 related to this redemption.

Asset quality

· The total provision for credit losses was $4.2 million, an increase of $6.1 million from the ($1.9) million provision for credit losses in the previous quarter.
· Reserve build/(release)^(2) was $1.4 million, which brings reserves to total loans to 1.32% of total loans from 1.31% in the previous quarter
· Nonperforming loans of $42.4 million increased $3.0 million from the previous quarter
· Net charge-offs on loans totaled $4.3 million, a decrease of $12.0 million from the prior quarter, which included approximately $12.0 million of net charge-offs for loans specifically reserved for in previous quarters

· Net charge-offs as a percentage of average loans outstanding (annualized) was 0.19% in the first quarter of 2024, a decrease of 53 basis points from the previous quarter“We are pleased to report another solid quarter of performance, highlighted by our strong pre-tax, pre-provision return on average assets of 1.77% and return on average tangible common equity of 16.51%,” stated T. Michael Price, President and Chief Executive Officer. Our commitment to disciplined financial management and profitability remain our primary focus. And we are confident in our ability to navigate the evolving economic environment and deliver sustainable value for our shareholders.”

*Earnings*

Net income for the first quarter of 2024 was $37.5 million, or $0.37 per share, compared to $44.8 million, or $0.44 per share in the fourth quarter of 2023 and $30.2 million, or $0.30 per share for the first quarter of 2023.

*Net Interest Income and Net Interest Margin*

Net interest income (FTE) of $92.6 million decreased $3.4 million from the previous quarter and $2.0 million from the prior year quarter. The decrease from the prior quarter was primarily due to a 13 basis point decline in the net interest margin.

The net interest margin for the first quarter of 2024 was 3.52% as compared to 3.65% in the prior quarter and 4.01% in the year ago quarter. The decrease from the prior quarter was primarily due to a 19 basis point increase in the cost of funds only partially offset by a 6 basis point increase in the yield on loans.

Total average deposits grew $51.7 million in the first quarter of 2023 as compared to the previous quarter. Average time deposits grew $169.6 million and the cost of total time deposits increased 40 basis points from the prior quarter. The increase in time deposits was partially offset by a $132.2 million decrease in average noninterest-bearing deposits.

End of period deposits increased $254.1 million from the previous quarter, including a $186.3 million increase in time deposits and a $113.0 million increase in savings deposits, offsetting a $54.0 million decrease in noninterest-bearing deposits.

*Asset Quality*

Provision for credit losses totaled $4.2 million in the first quarter of 2024 as compared to ($1.9) million in the previous quarter. The increase from the previous quarter was primarily driven by net charge-offs.

The allowance for credit losses (ACL) as a percentage of end-of-period loans was 1.32% in the first quarter of 2024 as compared to 1.31% in the previous quarter.

At March 31, 2024, nonperforming assets totaled $44.3 million as compared to $40.9 million in the prior quarter and $45.2 million in the first quarter of 2023.

Nonperforming loans represented 0.47% of total loans as of March 31, 2024 as compared to 0.44% and 0.51% for the periods ended December 31, 2023 and March 31, 2023, respectively.

At March 31, 2024, criticized loans totaled $211.9 million, an increase of $1.7 million from the previous quarter.

During the first quarter of 2024, net charge-offs were $4.3 million, compared to $16.3 million in the prior quarter and $1.2 million in the first quarter of 2023. Net charge-offs during the prior quarter were primarily driven by acquired loans.

Net charge-offs were 0.19%, 0.72% and 0.06% of average loans (annualized) for the periods ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

*Noninterest Income and Noninterest Expense*

Noninterest income totaled $24.0 million for the first quarter of 2024, as compared to $24.3 million for the fourth quarter of 2023 and $23.0 million for the first quarter of 2023. There were no material securities gains during the current or comparable quarters.

The $0.3 million decrease from the previous quarter was primarily driven by a $0.5 million seasonal decrease in card-related interchange income and a $0.5 million decrease in commercial swap fees, partially offset by a $0.6 million increase in gain on sale of mortgage loans due to an increased mix of sold loans and a $0.3 million increase in gain on sale of Small Business Administration (SBA) loans.

Noninterest expense (excluding merger-related) totaled $65.5 million for the first quarter of 2024, as compared to $65.0 million for the fourth quarter of 2023 and $62.8 million for the first quarter of 2023. The $0.5 million increase from the previous quarter was primarily the result of a $0.9 million increase in PA shares tax due to a release of accrued tax obligations in the prior quarter and a $0.7 million increase in occupancy expense. This increase was partially offset by a $0.9 million decrease in salaries and employee benefits due to a $1.3 million decrease in hospitalization expense.

The core efficiency ratio was 55.05% during the first quarter of 2024 as compared to 53.00% in the previous quarter and 52.41% in the first quarter of 2023.

Full time equivalent staff was 1,465, 1,475 and 1,536 at March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

*Dividends and Capital*

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.13 per share, which represents a 4.0% increase from the previous quarter. The cash dividend is payable on May 17, 2024 to shareholders of record as of May 3, 2024. This dividend represents a 3.9% projected annual yield utilizing the April 22, 2024 closing market price of $13.29.

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at March 31, 2024 were 14.3%, 12.2%, 10.2% and 11.4% respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

*Conference Call*

First Commonwealth will host a quarterly conference call to discuss its financial results for the first quarter of 2024 on Wednesday, April 24, 2024 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-888-330-3181 conference ID # 4651379 or through the company’s web page, http://www.fcbanking.com/InvestorRelations. A replay of the call will be available approximately one hour following the conclusion of the conference by dialing 1-800-770-2030 and entering the conference ID # 4651379. A link to the webcast replay will also be accessible on the company’s web.

*About First Commonwealth Financial Corporation*

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services company with 126 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh and Harrisburg, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.

*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 “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, and could be affected by many factors, including, but not limited to: (1) volatility and disruption in national and international financial markets; (2) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (3) inflation, interest rate, commodity price, securities market and monetary fluctuations; (4) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (5) the soundness of other financial institutions; (6) political instability; (7) impairment of First Commonwealth’s goodwill or other intangible assets; (8) acts of God or of war or terrorism; (9) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (10) changes in consumer spending, borrowings and savings habits; (11) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (12) technological changes; (13) acquisitions and integration of acquired businesses; (14) First Commonwealth’s ability to attract and retain qualified employees; (15) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (16) the ability to increase market share and control expenses; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (19) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (20) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

*Media Relations:*
Ron Wahl
Communications and Media Relations
Phone: 724-463-6806
E-mail: RWahl@fcbanking.com

*Investor Relations:*
Ryan M. Thomas
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com

*FIRST COMMONWEALTH FINANCIAL CORPORATION*

*CONSOLIDATED FINANCIAL DATA*
*Unaudited*
(dollars in thousands, except per share data) *For the Three Months Ended* *March 31,*   *December 31,*   *March 31,*   *2024*       *2023*       *2023*  
*SUMMARY RESULTS OF OPERATIONS*          
Net interest income $ 92,304     $ 95,737     $ 94,358  
Provision for credit losses   4,238       (1,865 )     (2,650 )
Provision for credit losses — acquisition day 1 non-PCD   —       —       10,653  
Noninterest income   23,988       24,297       22,963  
Noninterest expense   65,573       65,180       71,381  
Net income   37,549       44,827       30,224  
Core net income ^(5)   37,639       44,964       45,387  
*Earnings per common share (diluted)* *$* *0.37*     *$* *0.44*     *$* *0.30*  
*Core earnings per common share (diluted) *^*(6)* *$* *0.37*     *$* *0.44*     *$* *0.45*  
*KEY FINANCIAL RATIOS*          
Return on average assets   1.31 %     1.56 %     1.17 %
Core return on average assets ^(7)   1.31 %     1.56 %     1.75 %
Return on average assets, pre-provision, pre-tax   1.77 %     1.91 %     1.78 %
Core return on average assets, pre-provision, pre-tax   1.77 %     1.91 %     2.11 %
Return on average shareholders' equity   11.40 %     14.11 %     10.56 %
Return on average tangible common equity^ (8)   16.51 %     20.78 %     15.75 %
Core return on average tangible common equity^ (9)   16.54 %     20.85 %     23.42 %
Core efficiency ratio ^(2)(10)   55.05 %     53.00 %     52.41 %
Net interest margin (FTE) ^(1)   3.52 %     3.65 %     4.01 %          
Book value per common share $ 13.03     $ 12.87     $ 11.87  
Tangible book value per common share ^(11)   9.26       9.09       8.13  
Market value per common share   13.92       15.44       12.43  
Cash dividends declared per common share   0.125       0.125       0.120  
*ASSET QUALITY RATIOS*          
Nonperforming loans and leases as a percent of end-of-period loans and leases^(3)   0.47 %     0.44 %     0.51 %
Nonperforming assets as a percent of total assets ^(3)   0.38 %     0.36 %     0.41 %
Net charge-offs as a percent of average loans and leases (annualized) ^(4)   0.19 %     0.72 %     0.06 %
Allowance for credit losses as a percent of nonperforming loans and leases ^(4)   280.59 %     298.23 %     302.67 %
Allowance for credit losses as a percent of end-of-period loans and leases ^(4)   1.32 %     1.31 %     1.55 %
*CAPITAL RATIOS*          
Shareholders' equity as a percent of total assets   11.4 %     11.5 %     11.0 %
Tangible common equity as a percent of tangible assets ^(12)   8.4 %     8.4 %     7.8 %
Leverage Ratio   10.2 %     10.0 %     10.2 %
Risk Based Capital - Tier I   12.2 %     11.9 %     11.5 %
Risk Based Capital - Total   14.3 %     13.9 %     13.8 %
Common Equity - Tier I   11.4 %     11.2 %     10.8 %                      

*FIRST COMMONWEALTH FINANCIAL CORPORATION*

*CONSOLIDATED FINANCIAL DATA*
*Unaudited*
(dollars in thousands, except per share data) *For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*   *2023*     *2023*  
*INCOME STATEMENT*      
Interest income $ 145,462 $ 144,257   $ 114,589  
Interest expense   53,158   48,520     20,231  
*Net Interest Income*   *92,304*   *95,737*     *94,358*  
Provision for credit losses   4,238   (1,865 )   (2,650 )
Provision for credit losses - acquisition day 1 non-PCD   —   —     10,653  
*Net Interest Income after Provision for Credit Losses*   *88,066*   *97,602*     *86,355*  
Net securities gains   —   —     —  
Trust income   2,727   2,549     2,486  
Service charges on deposit accounts   5,383   5,595     4,918  
Insurance and retail brokerage commissions   2,246   2,457     2,552  
Income from bank owned life insurance   1,294   1,211     1,227  
Gain on sale of mortgage loans   1,328   776     652  
Gain on sale of other loans and assets   2,051   1,740     2,086  
Card-related interchange income   6,690   7,218     6,829  
Derivative mark-to-market   12   (13 )   (89 )
Swap fee income   —   490     245  
Other income   2,257   2,274     2,057  
*Total Noninterest Income*   *23,988*   *24,297*     *22,963*  
Salaries and employee benefits   35,324   36,232     34,264  
Net occupancy   5,334   4,637     5,018  
Furniture and equipment   4,480   4,372     4,238  
Data processing   3,824   3,986     3,404  
Pennsylvania shares tax   1,202   351     1,252  
Advertising and promotion   1,319   1,061     1,663  
Intangible amortization   1,264   1,210     1,147  
Other professional fees and services   1,242   1,543     1,591  
FDIC insurance   1,613   1,646     1,417  
Litigation and operational losses   997   1,378     743  
Loss on sale or write-down of assets   143   107     41  
Merger and acquisition   114   174     8,541  
Other operating expenses   8,717   8,483     8,062  
*Total Noninterest Expense*   *65,573*   *65,180*     *71,381*  
*Income before Income Taxes*   *46,481*   *56,719*     *37,937*  
Income tax provision   8,932   11,892     7,713  
*Net Income* *$* *37,549* *$* *44,827*   *$* *30,224*        
Shares Outstanding at End of Period   102,303,974   102,114,664     103,193,127  
Average Shares Outstanding Assuming Dilution   102,198,899   102,264,768     99,779,816        

*FIRST COMMONWEALTH FINANCIAL CORPORATION*

*CONSOLIDATED FINANCIAL DATA*
*Unaudited*
*(dollars in thousands)*           *March 31,*   *December 31,*   *March 31,*   *2024*       *2023*       *2023*  
*BALANCE SHEET (Period End)*          
*Assets*          
Cash and due from banks $ 77,179     $ 125,436     $ 113,692  
Interest-bearing bank deposits   233,188       21,557       282,110  
Securities available for sale, at fair value   1,049,108       1,071,857       786,813  
Securities held to maturity, at amortized cost   464,708       419,009       451,278  
Loans held for sale   31,895       29,820       11,050            
Loans and leases   8,999,870       8,968,761       8,656,945  
Allowance for credit losses   (119,098 )     (117,718 )     (133,885 )
Net loans and leases   8,880,772       8,851,043       8,523,060            
Goodwill and other intangibles   385,745       386,535       385,998  
Other assets   571,813       554,231       559,751  
*Total Assets* *$* *11,694,408*     *$* *11,459,488*     *$* *11,113,752*            
*Liabilities and Shareholders' Equity*          
Noninterest-bearing demand deposits $ 2,334,495     $ 2,388,533     $ 2,698,225            
Interest-bearing demand deposits   637,908       629,138       547,015  
Savings deposits   4,999,822       4,886,781       5,127,037  
Time deposits   1,474,178       1,287,857       862,671  
Total interest-bearing deposits   7,111,908       6,803,776       6,536,723            
Total deposits   9,446,403       9,192,309       9,234,948            
Short-term borrowings   546,541       597,835       278,978  
Long-term borrowings   186,490       186,757       187,531  
Total borrowings   733,031       784,592       466,509            
Other liabilities   182,254       168,313       187,281  
Shareholders' equity   1,332,720       1,314,274       1,225,014  
*Total Liabilities and Shareholders' Equity* *$* *11,694,408*     *$* *11,459,488*     *$* *11,113,752*  

*FIRST COMMONWEALTH FINANCIAL CORPORATION*
*CONSOLIDATED FINANCIAL DATA*
*Unaudited*
*(dollars in thousands)* *For the Three Months Ended* *March 31,* Yield/ *December 31,* Yield/ *March 31,* Yield/   *2024* Rate   *2023* Rate   *2023* Rate
*NET INTEREST MARGIN *                    
*Assets*            
Loans and leases (FTE)^(1)(3) $ 8,998,649 5.95 % $ 8,974,613 5.89 % $ 8,301,449 5.27 %
Securities and interest-bearing bank deposits (FTE) ^(1)   1,584,673 3.23 %   1,465,962 3.06 %   1,279,477 2.20 %
*Total Interest-Earning Assets (FTE) *^*(1)*   *10,583,322* *5.54* *%*   *10,440,575* *5.49* *%*   *9,580,926* *4.86* *%*
Noninterest-earning assets   938,121     961,555     907,982  
*Total Assets* *$* *11,521,443*   *$* *11,402,130*   *$* *10,488,908*              
*Liabilities and Shareholders' Equity*            
Interest-bearing demand and savings deposits $ 5,554,656 2.11 % $ 5,540,364 1.90 % $ 5,312,086 0.88 %
Time deposits   1,386,959 4.21 %   1,217,356 3.81 %   682,144 2.34 %
Short-term borrowings   595,884 4.57 %   548,680 5.43 %   266,932 3.65 %
Long-term borrowings   186,597 5.76 %   186,860 5.75 %   185,367 5.06 %
*Total Interest-Bearing Liabilities*   *7,724,096* *2.77* *%*   *7,493,260* *2.57* *%*   *6,446,529* *1.27* *%*
Noninterest-bearing deposits   2,302,338     2,434,560     2,678,849  
Other liabilities   169,683     213,492     202,476  
Shareholders' equity   1,325,326     1,260,818     1,161,054  
*Total Noninterest-Bearing Funding Sources*   *3,797,347*     *3,908,870*     *4,042,379*  
*Total Liabilities and Shareholders' Equity* *$* *11,521,443*   *$* *11,402,130*   *$* *10,488,908*              
*Net Interest Margin (FTE) (annualized)*^*(1)*   *3.52* *%*   *3.65* *%*   *4.01* *%*                  

*FIRST COMMONWEALTH FINANCIAL CORPORATION*  
*CONSOLIDATED FINANCIAL DATA*
*Unaudited*      
(dollars in thousands)       *March 31,* *December 31,* *March 31,*   *2024*     *2023*     *2023*  
*Loan and Lease Portfolio Detail*      
*Commercial Loan and Lease Portfolio:*      
Commercial, financial, agricultural and other $ 1,313,898   $ 1,310,405   $ 1,361,858  
Commercial real estate   3,090,950     3,053,152     2,991,930  
Equipment Finance loans and leases   279,938     232,944     109,221  
Real estate construction   520,320     541,633     422,831  
*Total Commercial*   *5,205,106*     *5,138,134*     *4,885,840*        
*Consumer Loan Portfolio:*      
Closed-end mortgages   1,913,479     1,926,254     1,807,941  
Home equity lines of credit   488,793     490,622     515,926  
Real estate construction   39,047     56,102     119,071  
*Total Real Estate - Consumer*   *2,441,319*     *2,472,978*     *2,442,938*        
Auto & RV loans   1,277,212     1,277,969     1,244,874  
Direct installment   26,731     27,167     30,381  
Personal lines of credit   46,733     49,355     49,399  
Student loans   2,769     3,158     3,513  
*Total Other Consumer*   *1,353,445*     *1,357,649*     *1,328,167*  
*Total Consumer Portfolio*   *3,794,764*     *3,830,627*     *3,771,105*  
*Total Portfolio Loans and Leases*   *8,999,870*     *8,968,761*     *8,656,945*  
Loans held for sale   31,895     29,820     11,050  
*Total Loans and Leases* *$* *9,031,765*   *$* *8,998,581*   *$* *8,667,995*               *March 31,* *December 31,* *March 31,*   *2024*     *2023*     *2023*  
*ASSET QUALITY DETAIL*      
*Nonperforming Loans and Leases:*      
Loans and leases on nonaccrual basis * $ 27,649   $ 24,997   $ 29,413  
Loans on nonaccrual basis - Centric acquisition   14,797     14,475     14,821  
* Total Nonperforming Loans and Leases* *$* *42,446*   *$* *39,472*   *$* *44,234*  
Other real estate owned ("OREO")   368     422     424  
Repossessions ("Repos")   1,442     1,024     553  
* Total Nonperforming Assets* *$* *44,256*   *$* *40,918*   *$* *45,211*  
Loans past due in excess of 90 days and still accruing   1,699     9,436     1,440  
Classified loans and leases   89,284     87,056     76,962  
Criticized loans and leases   211,857     210,187     189,873        
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos^ (4)   0.49 %   0.46 %   0.52 %
Allowance for credit losses $ 119,098   $ 117,718   $ 133,885  

*FIRST COMMONWEALTH FINANCIAL CORPORATION*
*CONSOLIDATED FINANCIAL DATA*
*Unaudited*
*(dollars in thousands)* *For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*     *2023*     *2023*  
*Net Charge-offs (Recoveries):*      
Commercial, financial, agricultural and other $ 2,242   $ 9,951   $ 504  
Real estate construction   (6 )   —     —  
Commercial real estate   169     4,579     (42 )
Residential real estate   21     58     41  
Loans to individuals   1,876     1,750     670  
*Net Charge-offs* *$* *4,302*   *$* *16,338*   *$* *1,173*        
Net charge-offs as a percentage of average loans and leases outstanding (annualized) ^(4)   0.19 %   0.72 %   0.06 %
Provision for credit losses as a percentage of net charge-offs   98.51 %   (11.42) %   (225.92) %
Provision for credit losses $ 4,238   $ (1,865 ) $ (2,650 )

*DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES*
Note: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons.      
^(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%.
^(2) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.
^(3) Includes held for sale loans.
^(4) Excludes held for sale loans. *For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*   *2023*   *2023*        
Interest income $ 145,462 $ 144,257 $ 114,589  
Adjustment to fully taxable equivalent basis ^(1)   323   314   305  
Interest income adjusted to fully taxable equivalent basis (non-GAAP)   145,785   144,571   114,894  
Interest expense   53,158   48,520   20,231  
*Net interest income, (FTE) *^*(1)* *$* *92,627* *$* *96,051* *$* *94,663*  

*FIRST COMMONWEALTH FINANCIAL CORPORATION*
*CONSOLIDATED FINANCIAL DATA*
*Unaudited*
(dollars in thousands, except per share data)
*DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES*       *For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*     *2023*     *2023*        
*Net Income* $ 37,549   $ 44,827   $ 30,224  
Intangible amortization   1,264     1,210     1,147  
Tax benefit of amortization of intangibles   (265 )   (254 )   (241 )
*Net Income, adjusted for tax affected amortization of intangibles* *$* *38,548*   *$* *45,783*   *$* *31,130*        
*Average Tangible Equity:*      
Total shareholders' equity $ 1,325,326   $ 1,260,818   $ 1,161,054  
Less: intangible assets   386,040     386,896     359,431  
* Tangible Equity*   *939,286*     *873,922*     *801,623*  
Less: preferred stock   *—*     *—*     *—*  
* Tangible Common Equity* *$* *939,286*   *$* *873,922*   *$* *801,623*        
^*(8)**Return on Average Tangible Common Equity*   *16.51* *%*   *20.78* *%*   *15.75* *%*
*For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*     *2023*     *2023*        
*Core Net Income:*      
Total Net Income $ 37,549   $ 44,827   $ 30,224  
Merger and acquisition related expenses   114     174     8,541  
Tax benefit of merger and acquisition related expenses   (24 )   (37 )   (1,794 )
Provision for credit losses - acquisition day 1 non-PCD   —     —     10,653  
Tax benefit of provision for credit losses - acquisition day 1 non-PCD   —     —     (2,237 )
^*(5) **Core net income* *$* *37,639*   *$* *44,964*   *$* *45,387*  
Average Shares Outstanding Assuming Dilution   102,198,899     102,264,768     99,779,816  
^*(6)** Core Earnings per common share (diluted)* *$* *0.37*   *$* *0.44*   *$* *0.45*        
Intangible amortization   1,264     1,210     1,147  
Tax benefit of amortization of intangibles   (265 )   (254 )   (241 )
*Core Net Income, adjusted for tax affected amortization of intangibles* *$* *38,638*   *$* *45,920*   *$* *46,293*        
^*(9)** Core Return on Average Tangible Common Equity*   *16.54* *%*   *20.85* *%*   *23.42* *%*                  

*FIRST COMMONWEALTH FINANCIAL CORPORATION*
*CONSOLIDATED FINANCIAL DATA  *
*Unaudited*
*(dollars in thousands, except per share data)*
*DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES*
      *For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*     *2023*     *2023*  
*Core Return on Average Assets:*      
Total Net Income $ 37,549   $ 44,827   $ 30,224  
Total Average Assets   11,521,443     11,402,130     10,488,908  
*Return on Average Assets*   *1.31* *%*   *1.56* *%*   *1.17* *%*      
Core Net Income ^(5) $ 37,639   $ 44,964   $ 45,387  
Total Average Assets   11,521,443     11,402,130     10,488,908  
^*(7) **Core Return on Average Assets*   *1.31* *%*   *1.56* *%*   *1.75* *%*
*For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*     *2023*     *2023*  
*Core Efficiency Ratio:*      
Total Noninterest Expense $ 65,573   $ 65,180   $ 71,381  
*Adjustments to Noninterest Expense:*      
Intangible amortization   1,264     1,210     1,147  
Merger and acquisition related   114     174     8,541  
*Noninterest Expense - Core* *$* *64,195*   *$* *63,796*   *$* *61,693*        
Net interest income, (FTE) $ 92,627   $ 96,051   $ 94,663  
Total noninterest income   23,988     24,297     22,963  
Net securities gains   —     —     —  
*Total Revenue*   *116,615*     *120,348*     *117,626*        
*Adjustments to Revenue:*      
Derivative mark-to-market   12     (13 )   (89 )
*Total Revenue - Core* *$* *116,603*   *$* *120,361*   *$* *117,715*        
^*(10)**Core Efficiency Ratio*   *55.05* *%*   *53.00* *%*   *52.41* *%*

*FIRST COMMONWEALTH FINANCIAL CORPORATION*
*CONSOLIDATED FINANCIAL DATA*
*Unaudited*
*(dollars in thousands)*
*DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES*
          *March 31,* *December 31,* *March 31,*     *2024*     *2023*     *2023*   *Tangible Equity:*       Total shareholders' equity $ 1,332,720   $ 1,314,274   $ 1,225,014   Less: intangible assets   385,745     386,535     385,998   * Tangible Equity*   *946,975*     *927,739*     *839,016*   Less: preferred stock   —     —     —   * Tangible Common Equity* *$* *946,975*   *$* *927,739*   *$* *839,016*           *Tangible Assets:*       Total assets $ 11,694,408   $ 11,459,488   $ 11,113,752   Less: intangible assets   385,745     386,535     385,998   * Tangible Assets* *$* *11,308,663*   *$* *11,072,953*   *$* *10,727,754*           ^*(12)**Tangible Common Equity as a percentage of Tangible Assets*   *8.37* *%*   *8.38* *%*   *7.82* *%*         Shares Outstanding at End of Period   102,303,974     102,114,664     103,193,127   ^*(11)**Tangible Book Value Per Common Share* *$* *9.26*   *$* *9.09*   *$* *8.13*  
*For the Three Months Ended* *March 31,* *December 31,* *March 31,*   *2024*   *2023*   *2023*  
*Pre-tax pre-provision income:*      
Net interest income $ 92,304 $ 95,737 $ 94,358  
Noninterest income   23,988   24,297   22,963  
Noninterest expense   65,573   65,180   71,381  
*Pre-tax pre-provision income* *$* *50,719* *$* *54,854* *$* *45,940*        
Net securities gains $ — $ — $ —  
Merger and acquisition related expenses   114   174   8,541  
*Core pre-tax pre-provision income* *$* *50,833* *$* *55,028* *$* *54,481*        
*Net charge-offs* *$* *4,302* *$* *16,338* *$* *1,173*