First Commonwealth Announces First Quarter 2025 Earnings; Increases Quarterly Dividend

INDIANA, Pa., April 29, 2025 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the first quarter of 2025. Financial Summary (dollars in thousands,For the Three Months Endedexcept per share data)March 31, December 31, March 31, 2025 2024 2024 Reported Results Net income$32,696 $35,849 $37,549 Diluted earnings per share$0.32 $0.35 $0.37 Return on average assets 1.14% 1.23% 1.31%Return on average equity 9.28% 10.16% 11.40% Operating Results (non-GAAP)(1) Core net income$32,779 $36,067 $37,639 Core diluted earnings per share$0.32 $0.35 $0.37 Core pre-tax pre-provision net revenue$46,879 $51,388 $50,833 Provision expense$5,736 $6,490 $4,238 Net charge-offs$3,098 $13,691 $4,302 Reserve build/(release)(2)$1,025 $(7,206) $1,380 Core return on average assets (ROAA) 1.14% 1.23% 1.31%Core pre-tax pre-provision ROAA 1.63% 1.76% 1.77%Return on average tangible common equity 13.02% 14.40% 16.51%Core return on average tangible common equity 13.05% 14.48% 16.54%Core efficiency ratio 59.08% 56.07% 55.05%Net interest margin (FTE) 3.62% 3.54% 3.52% (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 2025 Highlights Financial results GAAP Net income of $32.7 million and diluted earnings per share totaled $0.32, a decrease of $3.2 million, or $0.03 per share from the prior quarter and a decrease of $4.9 million, or $0.05 per share from first quarter of 2024. Core pre-tax pre-provision net revenue (PPNR)(1) totaled $46.9 million, a decrease of $4.5 million from the prior quarter and a decrease of $4.0 million from the first quarter of 2025. The decrease from the prior quarter was primarily as a result of a $2.8 million decrease in noninterest income End of period loans increased $99.0 million, or 4.4% annualized from the previous quarter, driven by a $121.4 million increase in commercial loans offset by a $22.4 million decrease in consumer loans Average loans increased $34.8 million, or 1.6% annualized from the previous quarter End of period deposits increased $183.6 million, or 7.7% annualized from the previous quarter, including a $214.8 million increase in savings deposits and a $24.2 million increase in noninterest bearing deposits, which together offset a $27.9 million decrease in time deposits and a $27.5 million decrease in interest-bearing demand deposits Average deposits increased $58.8 million, or 2.5% annualized from the previous quarter The loan-to-deposit ratio decreased 73 basis points to 92.6% in the first quarter of 2025Net interest income (FTE) of $95.9 million increased $0.4 million from the previous quarter and increased $3.2 million from the first quarter of 2024Noninterest income of $22.5 million decreased $2.8 million from the previous quarter due, in part, to a $1.0 million decrease in gain on sale of Small Business Administration (“SBA”) loansNoninterest expense (excluding merger-related expense) of $71.1 million increased $2.1 million from the previous quarter, due primarily to a $2.4 million increase in salaries and benefitsTangible book value per share increased $0.40, or 16.3% annualized from the previous quarter Total shareholders’ equity increased $41.9 million from the previous quarter, due in part to a $21.3 million decrease in unrealized losses in accumulated other comprehensive income (AOCI) from the previous quarterAOCI as a percentage of tangible common equity decreased 240 basis points to 7.63% in the first quarter of 2025 Profitability The net interest margin of 3.62% increased 8 basis points compared to the prior quarter and increased 10 basis points from the first quarter of 2024The core efficiency ratio(1) increased by 301 basis points to 59.08% compared to the prior quarterThe core ROAA decreased 9 basis points to 1.14% compared to the prior quarterCore pre-tax pre-provision ROAA(1) of 1.63% for the quarter ended March 31, 2025 Strong capital positions On April 29, 2025, the Board of Directors authorized a 3.9% increase in the quarterly cash dividend to shareholdersThe Bank-level Total Capital Ratio is 13.6%, which represents $342.0 million in excess capital above the regulatory “well capitalized” requirement of 6.5%There were no shares repurchased in the first quarter of 2025. The remaining capacity under the current program was $6.7 million as of March 31, 2025 Asset quality The total provision for credit losses was $5.7 million, a decrease of $0.8 million from the previous quarter.Reserve build/(release)(2) was $1.0 million, which resulted in reserves to total loans of 1.32%, which is unchanged from the previous quarterNonperforming loans of $59.4 million decreased $2.1 million from the previous quarterNet charge-offs on loans totaled $3.1 million, a decrease of $10.6 million from the prior quarter; the prior quarter included approximately $8.0 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 0.14% in the first quarter of 2025, a decrease of 46 basis points from the previous quarter Franchise Growth The company has received all required shareholder and regulatory approvals for its previously announced acquisition of CenterGroup Financial. This acquisition is expected to be completed on April 30, 2025. "We are pleased to report a strong start to 2025, with robust growth in the first quarter. Our annualized loan growth of 4.4% reflects good momentum in our commercial lending and indirect auto businesses, while end of period deposits increased by an impressive 7.7% annualized from the prior quarter,” stated T. Michael Price, President and Chief Executive Officer. “As we look ahead, I am thrilled to welcome CenterBank’s employees and customers to the First Commonwealth family, with the acquisition set to close in the coming weeks. This strategic expansion strengthens our presence in Cincinnati and enhances our ability to deliver exceptional financial solutions across these markets." Earnings Net income for the first quarter of 2025 was $32.7 million, or $0.32 per share, compared to $35.8 million, or $0.35 per share in the fourth quarter of 2024 and $37.5 million, or $0.37 per share for the first quarter of 2024. Net Interest Income and Net Interest Margin Net interest income (FTE) of $95.9 million increased $0.4 million from the previous quarter and increased $3.2 million from the prior year quarter. The increase from the prior quarter was primarily due to a $34.8 million increase in average loans combined with expansion of the net interest margin (NIM). The NIM for the first quarter of 2025 was 3.62% as compared to 3.54% in the prior quarter and 3.52% in the year ago quarter. The increase from the prior quarter was primarily due to a 10 basis point decrease in the cost of funds that was only partially offset by a 5 basis point decrease in the yield on loans. Total average deposits grew $58.8 million in the first quarter of 2025 as compared to the previous quarter. Average interest-bearing demand and savings deposits grew $66.1 million and total time deposits increased $33.2 million from the prior quarter. The increase in interest bearing deposits was partially offset by a $40.5 million decrease in average noninterest-bearing deposits. End of period deposits increased $183.6 million, or 7.7% annualized from the previous quarter, including a $214.8 million increase in savings deposits and a $24.2 million increase in noninterest bearing deposits, which together offset a $27.9 million decrease in time deposits and a $27.5 million decrease in interest-bearing demand deposits. Asset Quality Provision for credit losses totaled $5.7 million in the first quarter of 2025 as compared to $6.5 million in the previous quarter. The decrease from the previous quarter was primarily driven by a $10.6 million decrease in net charge-offs. Net charge-offs in the previous quarter included $8.0 million of loans specifically provided for in prior quarters. The allowance for credit losses (ACL) as a percentage of end-of-period loans was 1.32% in the first quarter which was unchanged from the previous quarter. At March 31, 2025, nonperforming loans totaled $59.4 million as compared to $61.5 million in the prior quarter and $42.4 million in the first quarter of 2024. Nonperforming loans represented 0.65% of total loans as of March 31, 2025 as compared to 0.68% and 0.47% for the periods ended December 31, 2024 and March 31, 2024, respectively. At March 31, 2025, criticized loans totaled $190.5 million, a decrease of $33.7 million from the previous quarter. During the first quarter of 2025, net charge-offs were $3.1 million, compared to $13.7 million in the prior quarter and $4.3 million in the first quarter of 2024. Net charge-offs in the previous quarter were primarily driven by acquired loans, of which $8.0 million were specifically reserved for in prior periods. Net charge-offs were 0.14%, 0.61% and 0.19% of average loans (annualized) for the periods ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. Noninterest Income and Noninterest Expense Noninterest income totaled $22.5 million for the first quarter of 2025, as compared to $25.3 million for the fourth quarter of 2024 and $24.0 million for the first quarter of 2024. There were no material securities gains during the current or comparable quarters. The $2.8 million decrease from the previous quarter was primarily driven by a $1.4 million gain on a limited partnership and donation of a branch facility in the previous quarter, a $1.0 million decrease in gain on sale of SBA loans and seasonally lower fees due to the number of days in the quarter. Noninterest expense (excluding merger-related) totaled $71.1 million for the first quarter of 2025, as compared to $69.0 million for the fourth quarter of 2024 and $65.5 million for the first quarter of 2024. The $2.1 million increase from the previous quarter was primarily the result of a $2.4 million increase in salaries and benefits and a $1.0 million increase in occupancy expense due to a $0.7 million increase in snow removal expense. Contributing to the higher salary expense in 2025 was a $1.8 million increase in incentive expense, of which $1.5 million was attributed to finalizing payments related to prior year volumes and performance. The core efficiency ratio was 59.08% during the first quarter of 2025 as compared to 56.07% in the previous quarter and 55.05% in the first quarter of 2024. Full time equivalent staff was 1,538, 1,512 and 1,465 at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. Dividends and Capital First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.135 per share, which represents a 3.9% increase from the previous quarter. The cash dividend is payable on May 23, 2025 to shareholders of record as of May 9, 2025. This dividend represents a 3.5% projected annual yield utilizing the April 28, 2025 closing market price of $15.31. First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at March 31, 2025 were 14.7%, 12.9%, 10.7% and 12.2% 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 2025 on Wednesday, April 30, 2025 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 125 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 WahlCommunications and Media RelationsPhone: 724-463-6806E-mail: RWahl@fcbanking.com Investor Relations:Ryan M. ThomasVice President / Finance and Investor RelationsPhone: 724-463-1690E-mail: RThomas1@fcbanking.com FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands, except per share data) For the Three Months Ended March 31, December 31, March 31, 2025 2024 2024 SUMMARY RESULTS OF OPERATIONS Net interest income$95,522 $95,081 $92,304 Provision for credit losses 5,736 6,490 4,238 Noninterest income 22,502 25,335 23,988 Noninterest expense 71,250 69,304 65,573 Net income 32,696 35,849 37,549 Core net income (5) 32,779 36,067 37,639 Earnings per common share (diluted)$0.32 $0.35 $0.37 Core earnings per common share (diluted) (6)$0.32 $0.35 $0.37 KEY FINANCIAL RATIOS Return on average assets 1.14% 1.23% 1.31%Core return on average assets (7) 1.14% 1.23% 1.31%Return on average assets, pre-provision, pre-tax 1.62% 1.75% 1.77%Core return on average assets, pre-provision, pre-tax 1.63% 1.76% 1.77%Return on average shareholders' equity 9.28% 10.16% 11.40%Return on average tangible common equity (8) 13.02% 14.40% 16.51%Core return on average tangible common equity (9) 13.05% 14.48% 16.54%Core efficiency ratio (2)(10) 59.08% 56.07% 55.05%Net interest margin (FTE) (1) 3.62% 3.54% 3.52% Book value per common share$14.20 $13.81 $13.03 Tangible book value per common share (11) 10.44 10.04 9.26 Market value per common share 15.54 16.92 13.92 Cash dividends declared per common share 0.130 0.130 0.125 ASSET QUALITY RATIOS Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 0.65% 0.68% 0.47%Nonperforming assets as a percent of total assets (3) 0.52% 0.55% 0.38%Net charge-offs as a percent of average loans and leases (annualized) (4) 0.14% 0.61% 0.19%Allowance for credit losses as a percent of nonperforming loans and leases (4) 201.89% 193.48% 280.59%Allowance for credit losses as a percent of end-of-period loans and leases (4) 1.32% 1.32% 1.32%CAPITAL RATIOS Shareholders' equity as a percent of total assets 12.3% 12.1% 11.4%Tangible common equity as a percent of tangible assets (12) 9.3% 9.1% 8.4%Leverage Ratio 10.7% 10.6% 10.2%Risk Based Capital - Tier I 12.9% 12.9% 12.2%Risk Based Capital - Total 14.7% 14.6% 14.3%Common Equity - Tier I 12.2% 12.1% 11.4% FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands, except per share data) For the Three Months Ended March 31,December 31,March 31, 2025 2024 2024 INCOME STATEMENT Interest income$147,128 $149,996$145,462 Interest expense 51,606 54,915 53,158 Net Interest Income 95,522 95,081 92,304 Provision for credit losses 5,736 6,490 4,238 Net Interest Income after Provision for Credit Losses 89,786 88,591 88,066 Net securities (losses) gains (5,142) 1 — Gain on VISA exchange 5,146 — — Trust income 3,022 3,031 2,727 Service charges on deposit accounts 5,438 5,749 5,383 Insurance and retail brokerage commissions 3,170 2,654 2,651 Income from bank owned life insurance 1,502 1,418 1,294 Gain on sale of mortgage loans 1,387 1,645 1,328 Gain on sale of other loans and assets 1,388 3,076 2,051 Card-related interchange income 3,654 3,923 6,690 Derivative mark-to-market (153) 95 12 Swap fee income 835 797 — Other income 2,255 2,946 1,852 Total Noninterest Income 22,502 25,335 23,988 Salaries and employee benefits 40,415 38,025 35,324 Net occupancy 5,729 4,769 5,334 Furniture and equipment 4,193 4,360 4,480 Data processing 3,817 4,039 3,824 Pennsylvania shares tax 1,337 1,968 1,202 Advertising and promotion 1,372 1,358 1,319 Intangible amortization 1,131 1,368 1,264 Other professional fees and services 1,620 1,557 1,242 FDIC insurance 1,379 1,436 1,613 Litigation and operational losses 793 920 997 Loss on sale or write-down of assets 215 99 143 Merger and acquisition 109 277 114 Other operating expenses 9,140 9,128 8,717 Total Noninterest Expense 71,250 69,304 65,573 Income before Income Taxes 41,038 44,622 46,481 Income tax provision 8,342 8,773 8,932 Net Income$32,696 $35,849$37,549 Shares Outstanding at End of Period 101,927,219 101,758,450 102,303,974 Average Shares Outstanding Assuming Dilution 101,859,825 101,963,018 102,198,899 FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited (dollars in thousands) March 31, December 31, March 31, 2025 2024 2024 BALANCE SHEET (Period End) Assets Cash and due from banks$118,792 $105,051 $77,179 Interest-bearing bank deposits 22,566 28,358 233,188 Securities available for sale, at fair value 1,186,438 1,178,577 1,049,108 Securities held to maturity, at amortized cost 519,029 405,639 464,708 Loans held for sale 41,587 51,991 31,895 Loans and leases 9,093,140 8,983,754 8,999,870 Allowance for credit losses (119,931) (118,906) (119,098)Net loans and leases 8,973,209 8,864,848 8,880,772 Goodwill and other intangibles 382,514 383,352 385,745 Other assets 542,263 567,120 571,813 Total Assets$11,786,398 $11,584,936 $11,694,408 Liabilities and Shareholders' Equity Noninterest-bearing demand deposits$2,273,858 $2,249,615 $2,334,495 Interest-bearing demand deposits 661,094 688,596 637,908 Savings deposits 5,204,179 4,989,342 4,999,822 Time deposits 1,722,526 1,750,466 1,474,178 Total interest-bearing deposits 7,587,799 7,428,404 7,111,908 Total deposits 9,861,657 9,678,019 9,446,403 Short-term borrowings 77,515 80,139 546,541 Long-term borrowings 262,679 262,985 186,490 Total borrowings 340,194 343,124 733,031 Other liabilities 137,496 158,628 182,254 Shareholders' equity 1,447,051 1,405,165 1,332,720 Total Liabilities and Shareholders' Equity$11,786,398 $11,584,936 $11,694,408 FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) For the Three Months Ended March 31,Yield/December 31,Yield/March 31,Yield/ 2025Rate 2024Rate 2024RateNET INTEREST MARGIN Assets Loans and leases (FTE)(1)(3)$9,068,8725.92%$9,034,0965.97%$8,998,6495.95%Interest bearing bank deposits 76,8364.72% 58,4695.22% 112,4365.63%Securities (FTE)(1) 1,600,0473.58% 1,620,8233.43% 1,472,2373.05%Total Interest-Earning Assets (FTE) (1) 10,745,7555.57% 10,713,3885.58% 10,583,3225.54%Noninterest-earning assets 934,933 912,328 938,121 Total Assets$11,680,688 $11,625,716 $11,521,443 Liabilities and Shareholders' Equity Interest-bearing demand and savings deposits$5,769,8982.13%$5,703,7632.22%$5,554,6562.11%Time deposits 1,763,4924.07% 1,730,2514.32% 1,386,9594.21%Short-term borrowings 50,7252.88% 98,1134.28% 595,8844.57%Long-term borrowings 262,8095.00% 252,0645.07% 186,5975.76%Total Interest-Bearing Liabilities 7,846,9242.67% 7,784,1912.81% 7,724,0962.77%Noninterest-bearing deposits 2,252,794 2,293,343 2,302,338 Other liabilities 151,957 144,153 169,683 Shareholders' equity 1,429,013 1,404,029 1,325,326 Total Noninterest-Bearing Funding Sources 3,833,764 3,841,525 3,797,347 Total Liabilities and Shareholders' Equity$11,680,688 $11,625,716 $11,521,443 Net Interest Margin (FTE) (annualized)(1) 3.62% 3.54% 3.52% FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) March 31,December 31,March 31, 2025 2024 2024 Loan and Lease Portfolio Detail Commercial Loan and Lease Portfolio: Commercial, financial, agricultural and other$1,276,420 $1,250,669 $1,313,898 Commercial real estate 3,158,440 3,124,704 3,090,950 Equipment finance loans and leases 485,782 427,320 279,938 Real estate construction 478,833 475,367 520,320 Total Commercial 5,399,475 5,278,060 5,205,106 Consumer Loan Portfolio: Closed-end mortgages 1,826,760 1,849,223 1,913,479 Home equity lines of credit 488,411 492,480 488,793 Real estate construction 9,869 8,017 39,047 Total Real Estate - Consumer 2,325,040 2,349,720 2,441,319 Auto & RV loans 1,296,567 1,280,645 1,277,212 Direct installment 24,962 25,935 26,731 Personal lines of credit 45,079 47,313 46,733 Student loans 2,017 2,081 2,769 Total Other Consumer 1,368,625 1,355,974 1,353,445 Total Consumer Portfolio 3,693,665 3,705,694 3,794,764 Total Portfolio Loans and Leases 9,093,140 8,983,754 8,999,870 Loans held for sale 41,587 51,991 31,895 Total Loans and Leases$9,134,727 $9,035,745 $9,031,765 March 31,December 31,March 31, 2025 2024 2024 ASSET QUALITY DETAIL Nonperforming Loans and Leases: Loans and leases on nonaccrual basis$50,536 $45,827 $27,649 Loans on nonaccrual basis - Centric acquisition 8,869 15,629 14,797 Total Nonperforming Loans and Leases$59,405 $61,456 $42,446 Other real estate owned ("OREO") 1,270 895 368 Repossessions ("Repos") 621 792 1,442 Total Nonperforming Assets$61,296 $63,143 $44,256 Loans past due in excess of 90 days and still accruing 1,156 2,064 1,699 Classified loans and leases 88,929 96,296 89,284 Criticized loans and leases 190,510 224,175 211,857 Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4) 0.67% 0.70% 0.49%Allowance for credit losses$119,931 $118,906 $119,098 FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) For the Three Months Ended March 31,December 31,March 31, 2025 2024 2024 Net Charge-offs (Recoveries): Commercial, financial, agricultural and other$329 $4,102 $2,242 Real estate construction — 1,057 (6)Commercial real estate 1,308 6,620 169 Residential real estate (29) (27) 21 Loans to individuals 1,490 1,939 1,876 Net Charge-offs$3,098 $13,691 $4,302 Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4) 0.14% 0.61% 0.19%Provision for credit losses as a percentage of net charge-offs 185.15% 47.40% 98.51%Provision for credit losses$5,736 $6,490 $4,238 DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURESNote: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons. (1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%. (2) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.(3) Includes held for sale loans.(4) Excludes held for sale loans. For the Three Months Ended March 31,December 31,March 31, 2025 2024 2024 Interest income$ 147,128 $ 149,996 $ 145,462 Adjustment to fully taxable equivalent basis (1) 335 354 323 Interest income adjusted to fully taxable equivalent basis (non-GAAP) 147,463 150,350 145,785 Interest expense 51,606 54,915 53,158 Net interest income, (FTE) (1)$ 95,857 $ 95,435 $ 92,627 FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(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, 2025 2024 2024 Net Income$32,696 $35,849 $37,549 Intangible amortization 1,131 1,368 1,264 Tax benefit of amortization of intangibles (238) (287) (265)Net Income, adjusted for tax affected amortization of intangibles$33,589 $36,930 $38,548 Average Tangible Equity: Total shareholders' equity$1,429,013 $1,404,029 $1,325,326 Less: intangible assets 382,919 383,620 386,040 Tangible Equity 1,046,094 1,020,409 939,286 Less: preferred stock — — — Tangible Common Equity$1,046,094 $1,020,409 $939,286 (8)Return on Average Tangible Common Equity 13.02% 14.40% 16.51% For the Three Months Ended March 31,December 31,March 31, 2025 2024 2024 Core Net Income: Total Net Income$32,696 $35,849 $37,549 Net securites gains (4) (1) — Tax benefit of net securities gains 1 — — Merger and acquisition related expenses 109 277 114 Tax benefit of merger and acquisition related expenses (23) (58) (24)(5) Core net income$32,779 $36,067 $37,639 Average Shares Outstanding Assuming Dilution 101,859,825 101,963,018 102,198,899 (6) Core Earnings per common share (diluted)$0.32 $0.35 $0.37 Intangible amortization 1,131 1,368 1,264 Tax benefit of amortization of intangibles (238) (287) (265)Core Net Income, adjusted for tax affected amortization of intangibles$33,672 $37,148 $38,638 (9) Core Return on Average Tangible Common Equity 13.05% 14.48% 16.54% FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(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, 2025 2024 2024 Core Return on Average Assets: Total Net Income$32,696 $35,849 $37,549 Total Average Assets 11,680,688 11,625,716 11,521,443 Return on Average Assets 1.14% 1.23% 1.31% Core Net Income (5)$32,779 $36,067 $37,639 Total Average Assets 11,680,688 11,625,716 11,521,443 (7) Core Return on Average Assets 1.14% 1.23% 1.31% For the Three Months Ended March 31,December 31,March 31, 2025 2024 2024 Core Efficiency Ratio: Total Noninterest Expense$71,250 $69,304 $65,573 Adjustments to Noninterest Expense: Intangible amortization 1,131 1,368 1,264 Merger and acquisition related 109 277 114 Noninterest Expense - Core$70,010 $67,659 $64,195 Net interest income, (FTE)$95,857 $95,435 $92,627 Total noninterest income 22,502 25,335 23,988 Net securites gains (4) (1) — Total Revenue 118,355 120,769 116,615 Adjustments to Revenue: Derivative mark-to-market (153) 95 12 Total Revenue - Core$118,508 $120,674 $116,603 (10)Core Efficiency Ratio 59.08% 56.07% 55.05% FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES March 31,December 31,March 31, 2025 2024 2024 Tangible Equity: Total shareholders' equity$1,447,051 $1,405,165 $1,332,720 Less: intangible assets 382,514 383,352 385,745 Tangible Equity 1,064,537 1,021,813 946,975 Less: preferred stock — — — Tangible Common Equity$1,064,537 $1,021,813 $946,975 Tangible Assets: Total assets$11,786,398 $11,584,936 $11,694,408 Less: intangible assets 382,514 383,352 385,745 Tangible Assets$11,403,884 $11,201,584 $11,308,663 (12)Tangible Common Equity as a percentage of Tangible Assets 9.33% 9.12% 8.37% Shares Outstanding at End of Period 101,927,219 101,758,450 102,303,974 (11)Tangible Book Value Per Common Share$10.44 $10.04 $9.26 For the Three Months Ended March 31,December 31,March 31, 2025 2024 2024 Pre-tax pre-provision net revenue: Net interest income$95,522 $95,081 $92,304 Noninterest income 22,502 25,335 23,988 Noninterest expense 71,250 69,304 65,573 Pre-tax pre-provision net revenue$46,774 $51,112 $50,719 Net securites gains$(4)$(1)$— Merger and acquisition related expenses 109 277 114 Core pre-tax pre-provision net revenue$46,879 $51,388 $50,833 Net charge-offs$3,098 $13,691 $4,302

First Commonwealth Announces First Quarter 2025 Earnings; Increases Quarterly Dividend

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