First Commonwealth Announces Fourth Quarter and Full Year 2024 Earnings; Declares Quarterly Dividend

INDIANA, Pa., Jan. 28, 2025 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the fourth quarter and full year of 2024. Financial Summary (dollars in thousands,For the Three Months Ended For the Year Endedexcept per share data)December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023Reported Results Net income$35,849 $32,086 $44,827 $142,572 $157,063 Diluted earnings per share$0.35 $0.31 $0.44 $1.39 $1.54 Return on average assets 1.23% 1.08% 1.56% 1.22% 1.42%Return on average equity 10.16% 9.19% 14.11% 10.44% 12.80% Operating Results (non-GAAP)(1) Core net income$36,067 $31,933 $44,964 $142,709 $172,697 Core diluted earnings per share$0.35 $0.31 $0.44 $1.40 $1.70 Core pre-tax pre-provision net revenue$51,388 $50,949 $55,028 $207,551 $221,505 Provision expense$6,490 $10,615 $(1,865) $29,170 $14,813 Net charge-offs$13,691 $8,785 $16,338 $31,180 $30,152 Reserve build/(release)(2)$(7,206) $2,458 $(16,619) $1,188 $14,812 Core return on average assets (ROAA) 1.23% 1.08% 1.56% 1.22% 1.56%Core pre-tax pre-provision ROAA 1.76% 1.72% 1.91% 1.78% 2.00%Return on average tangible common equity 14.40% 13.09% 20.78% 14.94% 19.01%Core return on average tangible common equity 14.48% 13.02% 20.85% 14.95% 20.86%Core efficiency ratio 56.07% 56.66% 53.00% 55.36% 52.91%Net interest margin (FTE) 3.54% 3.56% 3.65% 3.55% 3.81% (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. Fourth Quarter 2024 Highlights Net income of $35.8 million and diluted earnings per share of $0.35 represent an increase of $3.8 million, or $0.04 per share from the previous quarter and a decrease of $9.0 million, or $0.09 per share from the fourth quarter of 2023Core pre-tax pre-provision net revenue (PPNR)(1) totaled $51.4 million, an increase of $0.4 million from the previous quarter and a decrease of $3.6 million from the fourth quarter of 2023Average deposits increased $207.1 million, or 8.7% annualized, compared to the prior quarterTotal loans increased $23.5 million, or 1.0% annualized, from the previous quarter, driven by growth in the Equipment Finance and Commercial Real Estate portfoliosNet interest income (FTE) of $95.4 million decreased $1.4 million from the previous quarter and decreased $0.6 million from the fourth quarter of 2023Noninterest income (excluding a $0.2 million gain on investment securities in 3Q 2024) of $25.3 million decreased $0.8 million from the previous quarterNoninterest expense (excluding $0.3 million of merger-related expenses in 4Q 2024) of $69.0 million decreased $1.0 million from the previous quarterTotal shareholders’ equity decreased $4.5 million from the previous quarter due to a $19.4 million increase in unrealized losses in accumulated other comprehensive income (AOCI) from the previous quarter and share repurchases totaling $7.9 million Profitability Core return on average assets (ROAA) was 1.23% as compared to 1.08% in the previous quarter and 1.56% in the fourth quarter of 2023Core pre-tax pre-provision ROAA(1) for the quarter ended December 31, 2024 was 1.76% as compared to 1.72% in the prior quarter and 1.91% in the fourth quarter of 2023The net interest margin of 3.54% decreased two basis points from the prior quarter and decreased 11 basis points from the fourth quarter of 2023The core efficiency ratio(1) of 56.1% improved 59 basis points from the previous quarter Strong capital position Bank-level Total Regulatory Capital ratio of 13.6%, which represents $333.0 million in excess capital above the regulatory “well capitalized” requirement of 10.0%A total of 476,979 shares at a weighted average price of $16.60 were repurchased during the fourth quarter of 2024 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was $6.7 million as of December 31, 2024 Asset quality The provision for credit losses was $6.5 million, a decrease of $4.1 million compared to the previous quarterThe allowance for credit losses as a percentage of end-of-period loans was 1.32%, as compared to 1.41% in the previous quarterTotal nonperforming loans decreased $13.3 million from the previous quarterNet charge-offs on loans totaled $13.7 million, an increase of $4.9 million from the previous quarter Approximately $8.0 million of the quarterly net charge-offs were loans specifically reserved for in previous quartersNet charge-offs (annualized) as a percentage of average loans outstanding was 0.61% in the fourth quarter of 2024 as compared to 0.39% in the previous quarter Subsequent to Fourth Quarter 2024 The company sold its remaining Visa-B shares in January 2025, resulting in a gain of approximately $5.1 million that will be recognized in the first quarter of 2025. The proceeds from the sale offset commensurate losses the company incurred as the result of the sale of securities with a book value of $53.7 million carrying a yield of 2.6%, followed by the purchase of securities with a yield of approximately 5.4% Full Year 2024 Highlights Earnings Net income of $142.6 million and diluted earnings per share of $1.39 Core net income(1) was $142.7 million, or $1.40 diluted earnings per share, compared to $172.7 million, or $1.70 diluted earnings per share in the prior year Core pre-tax pre-provision income(1) of $207.6 million decreased $14.0 million from the prior year Profitability The return on average assets (ROAA) for the year ended December 31, 2024 was 1.22% as compared to 1.42% in the prior yearCore pre-tax pre-provision ROAA(1) for the year ended December 31, 2024 was 1.78% as compared to 2.00% in the prior yearThe core efficiency ratio(1) increased 244 basis points to 55.36% compared to the prior year Franchise Growth Average deposits grew $451.1 million, or 5.0% compared to the prior year End of period deposits grew $485.7 million, or 5.3% compared to the prior year Total loans grew $37.2 million, or 0.4% compared to the prior yearThe loan-to-deposit ratio was 93.4% for the year ended December 31, 2024 as compared to 97.9% in the prior year “Despite deposit pricing pressure challenges, higher credit costs, and six months of lost interchange revenue from the Durbin amendment, we ended 2024 with a robust pre-tax pre-provision ROA of 1.76% and an efficiency ratio of 56.07%, demonstrating the strength of our organization,” stated T. Michael Price, President and Chief Executive Officer. “With historic highs in customer satisfaction and net promoter scores, we’re not just growing profitably but also building deeper trust and stronger connections with our customers.” Price continued, “Last year laid the foundation for sustainable growth, and as we move into 2025, our focus on mid-single-digit loan growth, core deposit acquisition, and operational efficiency will propel us forward.” Earnings Net income for the fourth quarter of 2024 was $35.8 million, or $0.35 per share, compared to $32.1 million, or $0.31 per share in the third quarter of 2024 and $44.8 million, or $0.44 per share for the fourth quarter of 2023. Net income for the year ended December 31, 2024 was $142.6 million, or $1.39 per share, compared to $157.1 million, or $1.54 per share for the same period in 2023. Net Interest Income and Net Interest Margin Net interest income (FTE) of $95.4 million decreased $1.4 million from the previous quarter and decreased $0.6 million from the prior year quarter. The decrease from the previous quarter was primarily due to a two basis point decrease in the net interest margin and a $219.5 million decrease in lower-yielding interest bearing bank deposits. The net interest margin for the fourth quarter of 2024 was 3.54%, a decrease of two basis points from the previous quarter and a decrease of 11 basis points from the fourth quarter of 2023. The total cost of funds decreased nine basis points due to a $442.9 million decrease in higher-cost short-term borrowings, partially offset by a $115.7 million increase in long-term borrowings and a 12 basis point decrease in the yield on loans. The total cost of deposits decreased one basis point to 2.07% as compared to the previous quarter. Total average deposits increased $207.1 million, or 8.7% annualized in the fourth quarter of 2024 as compared to the previous quarter primarily due to a large commercial customer deposit received at the end of the previous quarter. Total end-of-period deposits decreased $67.5 million, or 2.7% annualized, from the previous quarter primarily due to seasonal withdrawals of public fund deposits. Asset Quality Provision for credit losses totaled $6.5 million in the fourth quarter of 2024 as compared to $10.6 million in the previous quarter. The decrease in provision expense during the quarter was primarily driven by higher specific reserves in the previous quarter and improved quantitative factors and loan mix. Nonperforming loans totaled $61.5 million, a decrease of $13.3 million from the previous quarter and an increase of $22.0 million from the fourth quarter of 2023. Nonperforming loans represented 0.68% of total loans as compared to 0.83% and 0.44% for the periods ended September 30, 2024 and December 31, 2023, respectively. At December 31, 2024, criticized loans totaled $224.2 million, a decrease of $17.8 million from the previous quarter. During the fourth quarter of 2024, net charge-offs were $13.7 million as compared to net charge-offs of $8.8 million in the previous quarter and $16.3 million in the fourth quarter of 2023. The increase from the prior quarter was primarily driven by the charge-off of three commercial credits totaling $8.0 million, for which $7.0 million in specific reserves had been previously provided. Net charge-offs (annualized) as a percentage of average loans were 0.61%, 0.39% and 0.72% for the periods ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Noninterest Income and Noninterest Expense Noninterest income (excluding $0.2 million gain on investment securities in 3Q 2024) totaled $25.3 million for the fourth quarter of 2024, as compared to $24.5 million for the third quarter of 2024 and $24.3 million for the fourth quarter of 2023. The $0.8 million increase from the previous quarter was primarily due to a $0.7 million increase in swap fee income, a $0.5 million increase in gain on sale of Mortgage loans and a $0.5 million gain on a limited partnership included in other revenue, partially offset by a $0.9 million decrease income from bank owned life insurance (BOLI). For the year ended December 31, 2024, noninterest income (excluding $0.2 million gain sale of investment securities in 2024 and $0.1 million loss on sale of investment securities in 2023) totaled $99.0 million, an increase of $2.3 million from the prior year. The increase from the prior year was primarily due to a $1.8 million increase in gain on sale of Mortgage loans, a $1.5 million increase gain on sale of SBA loans, a $1.5 million increase in BOLI income, a $1.3 million increase in Trust income and a $1.1 million increase in service charges, offsetting a $6.8 million decrease in card-related interchange income due to the Bank being subject to six months of the Durbin amendment. Noninterest expense (excluding $0.3 million and $0.2 million of merger related expenses in 4Q 2024 and 4Q 2023, respectively) totaled $69.0 million for the fourth quarter of 2024, as compared to $70.1 million for the third quarter of 2024 and $65.0 million for the fourth quarter of 2023. The $1.0 million decrease from the previous quarter was primarily the result of a $1.3 million decrease in operational losses and a $0.6 million decrease in salaries and benefits, partially offset by a $0.8 million increase in accrued Pennsylvania shares tax obligations. The core efficiency ratio was 56.07% during the fourth quarter of 2024 as compared to 56.66% in the previous quarter and 53.00% in the fourth quarter of 2023. For the year ended December 31, 2024, noninterest expense (excluding $0.4 million of merger related expenses and $0.4 million loss on the early redemption of subordinated debt in 2024 and $9.0 million of merger related expenses in 2023) totaled $270.0 million, as compared to $260.9 million in the prior year. The $9.1 million increase from the prior year was primarily driven by a $6.4 million increase in salaries and benefits, a $1.1 million increase in Pennsylvania shares tax obligations and a $0.6 million increase in occupancy costs, partially offset by a $0.4 million decrease in other professional fees and a $0.3 million decrease in FDIC insurance. The core efficiency ratio was 55.36% for the year ended December 31, 2024 as compared to 52.91% in the previous year. Full time equivalent staff was 1,512 at December 31, 2024, 1,500 at September 30, 2024, and 1,475 at December 31, 2023. 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 fourth quarter of 2023. The cash dividend is payable on February 21, 2025 to shareholders of record as of February 7, 2025. This dividend represents a 3.1% projected annual yield utilizing the January 27, 2025 closing market price of $16.77. First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at December 31, 2024 were 14.6%, 12.9%, 10.6% and 12.1%, 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 fourth quarter and full year 2024 on Wednesday, January 29, 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 webpage for 30 days. About First Commonwealth Financial Corporation First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services Company with 124 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 For the Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 SUMMARY RESULTS OF OPERATIONS Net interest income$95,081 $96,515 $95,737 $378,892 $385,676 Provision for credit losses 6,490 10,615 (1,865) 29,170 4,160 Provision for credit losses — acquisition day 1 non-PCD — — — — 10,653 Noninterest income 25,335 24,698 24,297 99,231 96,609 Noninterest expense 69,304 70,070 65,180 270,745 269,917 Net income 35,849 32,086 44,827 142,572 157,063 Core net income (5) 36,067 31,933 44,964 142,709 172,697 Earnings per common share (diluted)$0.35 $0.31 $0.44 $1.39 $1.54 Core earnings per common share (diluted) (6)$0.35 $0.31 $0.44 $1.40 $1.70 KEY FINANCIAL RATIOS Return on average assets 1.23% 1.08% 1.56% 1.22% 1.42%Core return on average assets (7) 1.23% 1.08% 1.56% 1.22% 1.56%Return on average assets, pre-provision, pre-tax 1.75% 1.73% 1.91% 1.78% 1.91%Core return on average assets, pre-provision, pre-tax 1.76% 1.72% 1.91% 1.78% 2.00%Return on average shareholders' equity 10.16% 9.19% 14.11% 10.44% 12.80%Return on average tangible common equity (8) 14.40% 13.09% 20.78% 14.94% 19.01%Core return on average tangible common equity (9) 14.48% 13.02% 20.85% 14.95% 20.86%Core efficiency ratio (2)(10) 56.07% 56.66% 53.00% 55.36% 52.91%Net interest margin (FTE) (1) 3.54% 3.56% 3.65% 3.55% 3.81% Book value per common share$13.81 $13.79 $12.87 Tangible book value per common share (11) 10.04 10.03 9.09 Market value per common share 16.92 17.15 15.44 Cash dividends declared per common share 0.130 0.130 0.125 0.515 0.495 ASSET QUALITY RATIOS Nonperforming loans and leases as a percent of end-of-period loans and leases(3) 0.68% 0.83% 0.44% Nonperforming assets as a percent of total assets (3) 0.55% 0.64% 0.36% Net charge-offs as a percent of average loans and leases (annualized) (4) 0.61% 0.39% 0.72% Allowance for credit losses as a percent of nonperforming loans and leases (4) 193.48% 168.77% 298.23% Allowance for credit losses as a percent of end-of-period loans and leases (4) 1.32% 1.41% 1.31% CAPITAL RATIOS Shareholders' equity as a percent of total assets 12.1% 11.8% 11.5% Tangible common equity as a percent of tangible assets (12) 9.1% 8.8% 8.4% Leverage Ratio 10.6% 10.3% 10.0% Risk Based Capital - Tier I 12.9% 12.7% 11.9% Risk Based Capital - Total 14.6% 14.5% 13.9% Common Equity - Tier I 12.1% 12.0% 11.2% FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands, except per share data) For the Three Months Ended For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023 INCOME STATEMENT Interest income$149,996$154,323 $144,257 $600,463 $529,998 Interest expense 54,915 57,808 48,520 221,571 144,322 Net Interest Income 95,081 96,515 95,737 378,892 385,676 Provision for credit losses 6,490 10,615 (1,865) 29,170 4,160 Provision for credit losses - acquisition day 1 non-PCD — — — — 10,653 Net Interest Income after Provision for Credit Losses 88,591 85,900 97,602 349,722 370,863 Net securities gains (losses) 1 88 — (5,446) (103)Gain on VISA exchange — 106 — 5,664 — Trust income 3,031 3,242 2,549 11,821 10,516 Service charges on deposit accounts 5,749 5,840 5,595 22,518 21,437 Insurance and retail brokerage commissions 2,654 3,087 2,825 11,546 10,929 Income from bank owned life insurance 1,418 2,278 1,211 6,361 4,875 Gain on sale of mortgage loans 1,645 1,151 776 5,795 3,951 Gain on sale of other loans and assets 3,076 2,576 1,740 9,111 6,744 Card-related interchange income 3,923 4,137 7,218 21,887 28,640 Derivative mark-to-market 95 (153) (13) (46) 14 Swap fee income 797 88 490 885 1,519 Other income 2,946 2,258 1,906 9,135 8,087 Total Noninterest Income 25,335 24,698 24,297 99,231 96,609 Salaries and employee benefits 38,025 38,618 36,232 149,287 142,871 Net occupancy 4,769 4,858 4,637 19,783 19,221 Furniture and equipment 4,360 4,335 4,372 17,453 17,308 Data processing 4,039 3,879 3,986 15,582 15,010 Pennsylvania shares tax 1,968 1,126 351 5,422 4,364 Advertising and promotion 1,358 1,960 1,061 5,535 5,713 Intangible amortization 1,368 1,223 1,210 5,024 4,983 Other professional fees and services 1,557 1,448 1,543 5,533 5,919 FDIC insurance 1,436 1,638 1,646 5,973 6,260 Litigation and operational losses 920 2,181 1,378 4,592 4,641 Loss on sale or write-down of assets 99 132 107 451 204 Loss on early redemption of subordinated debt — — — 369 — Merger and acquisition 277 — 174 391 9,034 Other operating expenses 9,128 8,672 8,483 35,350 34,389 Total Noninterest Expense 69,304 70,070 65,180 270,745 269,917 Income before Income Taxes 44,622 40,528 56,719 178,208 197,555 Income tax provision 8,773 8,442 11,892 35,636 40,492 Net Income$35,849$32,086 $44,827 $142,572 $157,063 Shares Outstanding at End of Period 101,758,450 102,237,941 102,114,664 101,758,450 102,114,664 Average Shares Outstanding Assuming Dilution 101,963,018 102,418,964 102,264,768 102,205,497 101,822,201 FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) December 31, September 30, December 31, 2024 2024 2023 BALANCE SHEET (Period End) Assets Cash and due from banks$105,051 $126,598 $125,436 Interest-bearing bank deposits 28,358 455,711 21,557 Securities available for sale, at fair value 1,178,577 1,165,392 1,071,857 Securities held to maturity, at amortized cost 405,639 430,425 419,009 Loans held for sale 51,991 46,785 29,820 Loans and leases 8,983,754 8,965,500 8,968,761 Allowance for credit losses (118,906) (126,112) (117,718)Net loans and leases 8,864,848 8,839,388 8,851,043 Goodwill and other intangibles 383,352 384,172 386,535 Other assets 567,120 534,728 554,231 Total Assets$11,584,936 $11,983,199 $11,459,488 Liabilities and Shareholders' Equity Noninterest-bearing demand deposits$2,249,615 $2,463,971 $2,388,533 Interest-bearing demand deposits 688,596 671,667 629,138 Savings deposits 4,989,342 4,953,206 4,886,781 Time deposits 1,750,466 1,656,708 1,287,857 Total interest-bearing deposits 7,428,404 7,281,581 6,803,776 Total deposits 9,678,019 9,745,552 9,192,309 Short-term borrowings 80,139 538,828 597,835 Long-term borrowings 262,985 136,285 186,757 Total borrowings 343,124 675,113 784,592 Other liabilities 158,628 152,918 168,313 Shareholders' equity 1,405,165 1,409,616 1,314,274 Total Liabilities and Shareholders' Equity$11,584,936 $11,983,199 $11,459,488 FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) For the Three Months Ended For the Year Ended December 31,Yield/September 30,Yield/December 31,Yield/ December 31,Yield/December 31,Yield/ 2024Rate2024Rate2023Rate 2024Rate2023RateNET INTEREST MARGIN Assets Loans and leases (FTE)(1)(3)$9,034,0965.97%$9,004,8086.09%$8,974,6135.89% $9,013,7426.02%$8,714,7705.64%Interest bearing bank deposits 58,4695.22% 278,0065.49% 112,7225.61% 164,3395.52% 176,1465.39%Securities (FTE)(1) 1,620,8233.43% 1,542,7923.34% 1,353,2402.85% 1,536,8123.27% 1,260,8542.37%Total Interest-Earning Assets (FTE) (1) 10,713,3885.58% 10,825,6065.68% 10,440,5755.49% 10,714,8935.62% 10,151,7705.23%Noninterest-earning assets 912,328 950,926 961,555 940,073 940,083 Total Assets$11,625,716 $11,776,532 $11,402,130 $11,654,966 $11,091,853 Liabilities and Shareholders' Equity Interest-bearing demand and savings deposits$5,703,7632.22%$5,657,7962.27%$5,540,3641.90% $5,636,5532.20%$5,508,1821.46%Time deposits 1,730,2514.32% 1,575,9754.40% 1,217,3563.81% 1,549,9994.32% 972,7353.28%Short-term borrowings 98,1134.28% 541,0104.62% 548,6805.43% 444,4534.60% 439,5564.95%Long-term borrowings 252,0645.07% 136,4085.44% 186,8605.75% 186,5505.51% 186,6875.45%Total Interest-Bearing Liabilities 7,784,1912.81% 7,911,1892.91% 7,493,2602.57% 7,817,5552.83% 7,107,1602.03%Noninterest-bearing deposits 2,293,343 2,286,482 2,434,560 2,298,065 2,552,596 Other liabilities 144,153 189,571 213,492 173,426 205,224 Shareholders' equity 1,404,029 1,389,290 1,260,818 1,365,920 1,226,873 Total Noninterest-Bearing Funding Sources 3,841,525 3,865,343 3,908,870 3,837,411 3,984,693 Total Liabilities and Shareholders' Equity$11,625,716 $11,776,532 $11,402,130 $11,654,966 $11,091,853 Net Interest Margin (FTE) (annualized)(1) 3.54% 3.56% 3.65% 3.55% 3.81% FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) December 31,September 30,December 31, 2024 2024 2023 Loan and Lease Portfolio Detail Commercial Loan and Lease Portfolio: Commercial, financial, agricultural and other$1,250,669 $1,263,008 $1,310,405 Commercial real estate 3,124,704 3,069,438 3,053,152 Equipment finance loans and leases 427,320 366,527 232,944 Real estate construction 475,367 522,548 541,633 Total Commercial 5,278,060 5,221,521 5,138,134 Consumer Loan Portfolio: Closed-end mortgages 1,849,223 1,878,980 1,926,254 Home equity lines of credit 492,480 495,396 490,622 Real estate construction 8,017 18,227 56,102 Total Real Estate - Consumer 2,349,720 2,392,603 2,472,978 Auto & RV loans 1,280,645 1,275,765 1,277,969 Direct installment 25,935 26,425 27,167 Personal lines of credit 47,313 47,076 49,355 Student loans 2,081 2,110 3,158 Total Other Consumer 1,355,974 1,351,376 1,357,649 Total Consumer Portfolio 3,705,694 3,743,979 3,830,627 Total Portfolio Loans and Leases 8,983,754 8,965,500 8,968,761 Loans held for sale 51,991 46,785 29,820 Total Loans and Leases$9,035,745 $9,012,285 $8,998,581 December 31,September 30,December 31, 2024 2024 2023 ASSET QUALITY DETAIL Nonperforming Loans and Leases: Loans and leases on nonaccrual basis$45,827 $50,929 $24,997 Loans on nonaccrual basis - Centric acquisition 15,629 23,794 14,475 Total Nonperforming Loans and Leases$61,456 $74,723 $39,472 Other real estate owned ("OREO") 895 669 422 Repossessions ("Repos") 792 1,188 1,024 Total Nonperforming Assets$63,143 $76,580 $40,918 Loans past due in excess of 90 days and still accruing 2,064 1,191 9,436 Classified loans and leases 96,296 114,751 87,056 Criticized loans and leases 224,175 241,962 210,187 Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4) 0.70% 0.85% 0.46%Allowance for credit losses$118,906 $126,112 $117,718 FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) For the Three Months Ended For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023 Net Charge-offs (Recoveries): Commercial, financial, agricultural and other$4,102 $5,870 $9,951 $14,699 $18,701 Real estate construction 1,057 — — 1,086 — Commercial real estate 6,620 1,381 4,579 8,501 6,126 Residential real estate (27) 55 58 113 314 Loans to individuals 1,939 1,479 1,750 6,781 5,011 Net Charge-offs$13,691 $8,785 $16,338 $31,180 $30,152 Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4) 0.61% 0.39% 0.72% 0.35% 0.35%Provision for credit losses as a percentage of net charge-offs 47.40% 120.83% (11.42)% 93.55% 13.80%Provision for credit losses$6,490 $10,615 $(1,865) $29,170 $4,160 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 For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023 Interest income$149,996$154,323$144,257 $600,463$529,998Adjustment to fully taxable equivalent basis (1) 354 342 314 1,347 1,237Interest income adjusted to fully taxable equivalent basis (non-GAAP) 150,350 154,665 144,571 601,810 531,235Interest expense 54,915 57,808 48,520 221,571 144,322Net interest income, (FTE) (1)$95,435$96,857$96,051 $380,239$386,913 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 For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023 Net Income$35,849 $32,086 $44,827 $142,572 $157,063 Intangible amortization 1,368 1,223 1,210 5,024 4,983 Tax benefit of amortization of intangibles (287) (257) (254) (1,055) (1,046)Net Income, adjusted for tax affected amortization of intangibles$36,930 $33,052 $45,783 $146,541 $161,000 Average Tangible Equity: Total shareholders' equity$1,404,029 $1,389,290 $1,260,818 $1,365,920 $1,226,873 Less: intangible assets 383,620 384,404 386,896 384,844 380,016 Tangible Equity 1,020,409 1,004,886 873,922 981,076 846,857 Less: preferred stock — — — — — Tangible Common Equity$1,020,409 $1,004,886 $873,922 $981,076 $846,857 (8)Return on Average Tangible Common Equity 14.40% 13.09% 20.78% 14.94% 19.01% For the Three Months Ended For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023 Core Net Income: Total Net Income$35,849 $32,086 $44,827 $142,572 $157,063 Net securities (gains) losses (1) (194) — (218) 103 Tax benefit of net securities gains — 41 — 46 (22)Merger and acquisition related expenses 277 — 174 391 9,034 Tax benefit of merger and acquisition related expenses (58) — (37) (82) (1,897)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$36,067 $31,933 $44,964 $142,709 $172,697 Average Shares Outstanding Assuming Dilution 101,963,018 102,418,964 102,264,768 102,205,497 101,822,201 (6) Core Earnings per common share (diluted)$0.35 $0.31 $0.44 $1.40 $1.70 Intangible amortization 1,368 1,223 1,210 5,024 4,983 Tax benefit of amortization of intangibles (287) (257) (254) (1,055) (1,046)Core Net Income, adjusted for tax affected amortization of intangibles$37,148 $32,899 $45,920 $146,678 $176,634 (9) Core Return on Average Tangible Common Equity 14.48% 13.02% 20.85% 14.95% 20.86% 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 For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023 Core Return on Average Assets: Total Net Income$35,849 $32,086 $44,827 $142,572 $157,063 Total Average Assets 11,625,716 11,776,532 11,402,130 11,654,966 11,091,853 Return on Average Assets 1.23% 1.08% 1.56% 1.22% 1.42% Core Net Income (5)$36,067 $31,933 $44,964 $142,709 $172,697 Total Average Assets 11,625,716 11,776,532 11,402,130 11,654,966 11,091,853 (7) Core Return on Average Assets 1.23% 1.08% 1.56% 1.22% 1.56% For the Three Months Ended For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023 Core Efficiency Ratio: Total Noninterest Expense$69,304 $70,070 $65,180 $270,745 $269,917 Adjustments to Noninterest Expense: Intangible amortization 1,368 1,223 1,210 5,024 4,983 Merger and acquisition related 277 — 174 391 9,034 Noninterest Expense - Core$67,659 $68,847 $63,796 $265,330 $255,900 Net interest income, (FTE)$95,435 $96,857 $96,051 $380,239 $386,913 Total noninterest income 25,335 24,698 24,297 99,231 96,609 Net securities (gains) losses (1) (194) — (218) 103 Total Revenue 120,769 121,361 120,348 479,252 483,625 Adjustments to Revenue: Derivative mark-to-market 95 (153) (13) (46) 14 Total Revenue - Core$120,674 $121,514 $120,361 $479,298 $483,611 (10)Core Efficiency Ratio 56.07% 56.66% 53.00% 55.36% 52.91% FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands) DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES December 31,September 30,December 31, 2024 2024 2023 Tangible Equity: Total shareholders' equity$1,405,165 $1,409,616 $1,314,274 Less: intangible assets 383,352 384,172 386,535 Tangible Equity 1,021,813 1,025,444 927,739 Less: preferred stock — — — Tangible Common Equity$1,021,813 $1,025,444 $927,739 Tangible Assets: Total assets$11,584,936 $11,983,199 $11,459,488 Less: intangible assets 383,352 384,172 386,535 Tangible Assets$11,201,584 $11,599,027 $11,072,953 (12)Tangible Common Equity as a percentage of Tangible Assets 9.12% 8.84% 8.38% Shares Outstanding at End of Period 101,758,450 102,237,941 102,114,664 (11)Tangible Book Value Per Common Share$10.04 $10.03 $9.09 For the Three Months Ended For the Year Ended December 31,September 30,December 31, December 31,December 31, 2024 2024 2023 2024 2023Pre-tax pre-provision income: Net interest income$95,081 $96,515 $95,737 $378,892 $385,676Noninterest income 25,335 24,698 24,297 99,231 96,609Noninterest expense 69,304 70,070 65,180 270,745 269,917Pre-tax pre-provision income$51,112 $51,143 $54,854 $207,378 $212,368 Net securities (gains) losses$(1)$(194)$— $(218)$103Merger and acquisition related expenses 277 — 174 391 9,034Core pre-tax pre-provision income$51,388 $50,949 $55,028 $207,551 $221,505 Net charge-offs$13,691 $8,785 $16,338 $31,180 $30,152

First Commonwealth Announces Fourth Quarter and Full Year 2024 Earnings; Declares Quarterly Dividend

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