Exhibit 99.1
FOR IMMEDIATE RELEASE
First Commonwealth Announces Third Quarter 2023 Earnings; Declares Quarterly Dividend
Indiana, PA, October 24, 2023 - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2023.
Financial Summary | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands, | For the Three Months Ended | | For the Nine Months Ended |
| except per share data) | September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| 2023 | | 2023 | | 2022 | | 2023 | | 2022 |
| Reported Results | | | | | | | | | |
| Net income | $ | 39,231 | | | $ | 42,781 | | | $ | 33,968 | | | $ | 112,236 | | | $ | 92,448 | |
| Diluted earnings per share | $ | 0.38 | | | $ | 0.42 | | | $ | 0.36 | | | $ | 1.10 | | | $ | 0.98 | |
| Return on average assets | 1.38 | % | | 1.54 | % | | 1.41 | % | | 1.37 | % | | 1.29 | % |
| Return on average equity | 12.46 | % | | 13.90 | % | | 12.67 | % | | 12.35 | % | | 11.47 | % |
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Operating Results (non-GAAP)(1) | | | | | | | | | |
| Core net income | $ | 39,611 | | | $ | 42,734 | | | $ | 34,353 | | | $ | 127,732 | | | $ | 92,811 | |
| Core diluted earnings per share | $ | 0.39 | | | $ | 0.42 | | | $ | 0.37 | | | $ | 1.26 | | | $ | 0.99 | |
| Core pre-tax pre-provision net revenue | $ | 55,652 | | | $ | 56,344 | | | $ | 48,860 | | | $ | 166,477 | | | $ | 127,749 | |
| Provision for credit losses | $ | 5,885 | | | $ | 2,790 | | | $ | 5,923 | | | $ | 6,025 | | | $ | 11,986 | |
| Provision for credit losses - acquisition day 1 non-PCD | $ | — | | | $ | — | | | $ | — | | | $ | 10,653 | | | $ | — | |
| Net charge-offs | $ | 3,976 | | | $ | 8,665 | | | $ | 2,461 | | | $ | 13,814 | | | $ | 5,123 | |
Reserve build/(release)(2) | $ | 791 | | | $ | (339) | | | $ | 2,490 | | | $ | 31,431 | | | $ | 3,571 | |
| Core return on average assets (ROAA) | 1.39 | % | | 1.54 | % | | 1.43 | % | | 1.55 | % | | 1.30 | % |
| Core pre-tax pre-provision ROAA | 1.95 | % | | 2.03 | % | | 2.03 | % | | 2.03 | % | | 1.79 | % |
| Return on average tangible common equity | 18.55 | % | | 20.68 | % | | 18.28 | % | | 18.39 | % | | 16.51 | % |
| Core return on average tangible common equity | 18.73 | % | | 20.66 | % | | 18.48 | % | | 20.86 | % | | 16.58 | % |
| Core efficiency ratio | 53.42 | % | | 52.80 | % | | 54.06 | % | | 52.88 | % | | 56.32 | % |
| Net interest margin (FTE) | 3.76 | % | | 3.85 | % | | 3.76 | % | | 3.87 | % | | 3.45 | % |
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(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 can 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.
Third Quarter 2023 Highlights
•Net income of $39.2 million and diluted earnings per share of $0.38 represented a decrease of $3.6 million, or $0.04 per share, from the prior quarter and an increase of $5.3 million, or $0.02 per share, from the third quarter of 2022
•Core pre-tax pre-provision net revenue (PPNR)(1) totaled $55.7 million, a decrease of $0.7 million from the previous quarter and an increase of $6.8 million from the third quarter of 2022
•Average deposits increased $48.4 million, or 2.1% annualized, compared to the prior quarter, due to a $123.8 million increase in average time deposits partially offset by a $61.7 million decrease in average noninterest-bearing deposits
•End of period deposits increased $94.8 million, or 4.1% annualized, compared to the prior quarter
•80.4% of deposits were insured or secured as of September 30, 2023
•The loan-to-deposit ratio increased 30 basis points to 96.7% at the end of the third quarter of 2023
•Loans and available for sale (AFS) securities as a percentage of total deposits was 106.1% as of September 30, 2023
•Net interest income (FTE) of $98.1 million was relatively unchanged from the previous quarter and increased $15.4 million from the third quarter of 2022
•Noninterest income (excluding security gains and losses) of $24.9 million increased $0.4 million from the previous quarter due in part to higher Trust revenue
•Noninterest expense (excluding merger-related expense) of $67.0 million increased $1.0 million from the previous quarter due primarily to elevated operational losses and FDIC insurance expense
•Total shareholder’s equity increased $8.1 million from the previous quarter due to a $26.4 million increase in retained earnings, partially offset by a $15.5 million decrease in accumulated other comprehensive income (AOCI) resulting from the impact of higher interest rates on the fair value of the Company’s available for sale investment portfolio and interest rate swap agreements
•Tangible book value per share increased $0.11, or 5.4% annualized, from the previous quarter
•AOCI as a percentage of tangible common equity increased 164 basis points to 18.1% in the third quarter of 2023
Profitability
•The core efficiency ratio(1) of 53.42% increased 62 basis points from the previous quarter and improved 64 basis points from the third quarter of 2022
•The return on average assets (ROA) decreased 16 basis points to 1.38% compared to the previous quarter
•The core return on average assets(1) decreased 15 basis points to 1.39% compared to the previous quarter
•Core pre-tax pre-provision ROA(1) for the quarter ended September 30, 2023 was 1.95% as compared to 2.03% in the prior quarter and 2.03% in the third quarter of 2022
•The net interest margin of 3.76% decreased 9 basis points compared to the prior quarter and was unchanged as compared to the third quarter of 2022
•Purchase accounting accretion contributed 10 basis points to the margin in the third quarter, a decrease of 4 basis points from the prior quarter
•The retention of approximately $207.3 million of additional cash on the Bank’s balance sheet for liquidity purposes had a negative impact on the net interest margin of 8 basis points in the third quarter
Asset quality
•The provision for credit losses was $5.9 million, an increase of $3.1 million compared to the previous quarter
•The allowance for credit losses as a percentage of end-of-period loans was 1.51%, a decrease of 1 basis point from the previous quarter
•Total classified loans decreased $10.1 million from the previous quarter, from $76.4 million, or 0.87% of total loans and leases, to $66.3 million, or 0.74% of total loans and leases
•Total nonperforming assets of $49.5 million increased $0.1 million from the previous quarter
•Net charge-offs on loans totaled $4.0 million, a decrease of $4.7 million from the previous quarter and includes $1.2 million of acquired loans that were reserved for through purchase accounting marks
•Net charge-offs (annualized) as a percentage of average loans outstanding was 0.18% in the third quarter of 2023 as compared to 0.40% in the previous quarter, 0.05% of which was attributable to the aforementioned charge off of acquired loans
Strong capital and liquidity positions
•Total available liquidity of $4.4 billion at September 30, 2023
•Cash and AFS securities as a percentage of total assets decreased 36 basis points to 10.5%
•Total available liquidity represented 241% of uninsured/unsecured deposits, and combined with cash represented 248% of uninsured/unsecured deposits
•Bank-level Tier 1 Capital ratio of 10.8%, which represents $259.1 million in excess capital above the regulatory “well capitalized” requirement of 8.0%
•A total of 259,639 shares at a weighted average price of $12.36 were repurchased during the third quarter of 2023 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was $18.3 million as of September 30, 2023
“Our results this quarter were strong and overcame 9 basis points of net interest margin compression. Fortunately, the pace of increases in our funding costs continued to moderate throughout the third quarter while loan yields continue to improve,” stated T. Michael Price, President and Chief Executive Officer. “I am also enthusiastic about where we are at as a company. We continue to improve our businesses each and every quarter, despite a challenging macro-economic environment for banks this year. Our asset quality, liquidity and capital also remain strong and will enable us to continue our journey of becoming the best bank for our neighbors and their businesses.”
Earnings
Net income for the third quarter of 2023 was $39.2 million, or $0.38 per share, compared to $42.8 million, or $0.42 per share in the second quarter of 2023, and $34.0 million, or $0.36 per share for the third quarter of 2022.
Net Interest Income and Net Interest Margin
Net interest income (FTE) of $98.1 million was essentially unchanged from the previous quarter and increased $15.4 million from the prior year quarter. The increase from the prior year quarter was primarily due to a $1.6 billion increase in average interest-earning assets, which includes $1.0 billion in average interest-earning assets acquired in the Centric acquisition.
The net interest margin for the third quarter of 2023 was 3.76%, a decrease of 9 basis points from the previous quarter and unchanged from the third quarter of 2022. The decrease from the previous quarter was due primarily to a 28 basis point increase in the cost of deposits, partially offset by a 21 basis point increase in the yield on loans. The total cost of funds was 1.70% in the third quarter of 2023, which represents an increase of 32 basis points from the previous quarter.
Total average deposits grew $48.4 million in the third quarter of 2023 as compared to the previous quarter. Average time deposits grew $123.8 million, which offset a $61.7 million decrease in average noninterest-bearing deposits and a $13.7 million decrease in average interest-bearing demand and savings deposits.
Total portfolio loans increased $101.9 million, or 4.6% annualized, from the previous quarter, driven by strong commercial loan growth, including $36.0 million of growth in Equipment Finance loans and a $45.1 million increase in Commercial Real Estate loans. Total consumer Mortgage loans, including loans for construction, increased $23.4 million from the previous quarter.
Average interest-earning assets increased $125.6 million, or 4.9% annualized, from the previous quarter. Average loans increased $195.7 million, or 8.9% annualized, which offset a $70.1 million decrease in average investment securities and interest-bearing bank deposits.
Asset Quality
Provision expense in the third quarter of 2023 totaled $5.9 million as compared to $2.8 million in the previous quarter. The increase in the provision expense was primarily driven by loan growth and an additional $4.1 million in specific reserves for an updated appraisal on a nonaccrual commercial loan. The increase in provision expense was partially offset by the effect of improvement in the Bank’s high risk portfolio and improved economic factors.
The allowance for credit losses in the third quarter of 2023 totaled $134.3 million as compared to $133.5 million in the previous quarter. The increase from the previous quarter was primarily the result of the aforementioned specific reserves, partially offset by $4.0 million in net charge-offs ($1.2 million of which was related to acquired loans that had been the subject of purchase accounting marks in the first quarter as part of the Centric acquisition).
The allowance for credit losses as a percentage of end-of-period loans in the third quarter of 2023 was 1.51% as compared to 1.52% in the previous quarter.
At September 30, 2023, nonperforming loans totaled $47.9 million, a decrease of $0.1 million from the previous quarter.
Nonperforming loans represented 0.54% of total loans for the period ended September 30, 2023 as compared to 0.54% and 0.48% for the periods ended June 30, 2023 and September 30, 2022, respectively.
During the third quarter of 2023, net charge-offs were $4.0 million as compared to $8.7 million in the previous quarter and $2.5 million in the third quarter of 2022. The decrease from the prior period was primarily due to the charge off of $7.6 million in commercial loans that were acquired in the Centric acquisition, for which the allowance was created in the first quarter of 2023 through purchase accounting marks at the time of the acquisition.
Net charge-offs (annualized) as a percentage of average loans were 0.18%, 0.40% and 0.13% for the periods ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively.
Noninterest Income and Noninterest Expense
Noninterest income (excluding security gains and losses) totaled $24.9 million for the third quarter of 2023, as compared to $24.5 million for the second quarter of 2023 and $25.9 million for the third quarter of 2022. There were $0.1 million in net security losses during the third quarter of 2023 and no security gains or losses in the comparable periods.
The $0.4 million increase from the previous quarter was primarily due to a $0.4 million increase in Trust revenue and a $0.3 million increase in service charges on deposit accounts, partially offset by a $0.9 million decrease in gains on the sale of Small Business Administration (SBA) loans.
Noninterest expense (excluding $0.4 million of merger-related expense) totaled $67.0 million for the third quarter of 2023, as compared to $66.0 million for the second quarter of 2023 and $59.5 million for the third quarter of 2022. Expense increased in comparison with the prior quarter primarily due to a $0.7 million increase in operational losses driven by a $0.9 million recognition of identified losses as part of the implementation of a new debit card chargeoff processing system, an increase of $0.6 million due to higher FDIC insurance expense due to the acquisition of Centric Financial Corporation, an increase of $0.4 million in Pennsylvania shares tax and an increase of $0.4 million in other professional fees. These increases were partially offset by a $1.1 million decrease in salaries and benefits compared to the prior quarter due to a $1.0 million decrease in hospitalization expense.
The core efficiency ratio was 53.4% during the third quarter of 2023 as compared to 52.8% in the previous quarter and 54.1% in the third quarter of 2022.
Full time equivalent staff was 1,481 at September 30, 2023, 1,483 at June 30, 2023, and 1,422 at September 30, 2022.
Dividends and Capital
First Commonwealth declared a common stock quarterly dividend of $0.125 per share, which represents a 4.2% increase from the third quarter of 2022. The cash dividend is payable on November 17, 2023 to shareholders of record as of November 3, 2023. This dividend represents a 4.1% projected annual yield utilizing the October 23, 2023 closing market price of $12.06.
First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at September 30, 2023 were 13.8%, 11.6%, 9.9% and 109%, 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 third quarter of 2023 on Wednesday, October 25, 2023 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 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:
Kristine Levan
Senior Vice President / Marketing and Communication Manager
Phone: 724-463-4777
E-mail: Klevan@fcbanking.com
Investor Relations:
Ryan M. Thomas
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com
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| FIRST COMMONWEALTH FINANCIAL CORPORATION | | | | | | |
| CONSOLIDATED FINANCIAL DATA | | | | | | | | | |
| Unaudited | | | | | | | | | |
| (dollars in thousands, except per share data) | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| 2023 | | 2023 | | 2022 | | 2023 | | 2022 |
| SUMMARY RESULTS OF OPERATIONS | | | | | | | | | |
| Net interest income | $ | 97,757 | | | $ | 97,824 | | | $ | 82,360 | | | $ | 289,939 | | | $ | 224,194 | |
| Provision for credit losses | 5,885 | | | 2,790 | | | 5,923 | | | 6,025 | | | 11,986 | |
| Provision for credit losses — acquisition day 1 non-PCD | — | | | — | | | — | | | 10,653 | | | — | |
| Noninterest income | 24,826 | | | 24,523 | | | 25,914 | | | 72,312 | | | 74,399 | |
| Noninterest expense | 67,413 | | | 65,943 | | | 59,901 | | | 204,737 | | | 171,304 | |
| Net income | 39,231 | | | 42,781 | | | 33,968 | | | 112,236 | | | 92,448 | |
Core net income (5) | 39,611 | | | 42,734 | | | 34,353 | | | 127,732 | | | 92,811 | |
| Earnings per common share (diluted) | $ | 0.38 | | | $ | 0.42 | | | $ | 0.36 | | | $ | 1.10 | | | $ | 0.98 | |
Core earnings per common share (diluted) (6) | $ | 0.39 | | | $ | 0.42 | | | $ | 0.37 | | | $ | 1.26 | | | $ | 0.99 | |
| KEY FINANCIAL RATIOS | | | | | | | | | |
| Return on average assets | 1.38 | % | | 1.54 | % | | 1.41 | % | | 1.37 | % | | 1.29 | % |
Core return on average assets (7) | 1.39 | % | | 1.54 | % | | 1.43 | % | | 1.55 | % | | 1.30 | % |
| Return on average assets, pre-provision, pre-tax | 1.94 | % | | 2.03 | % | | 2.01 | % | | 1.92 | % | | 1.78 | % |
| Core return on average assets, pre-provision, pre-tax | 1.95 | % | | 2.03 | % | | 2.03 | % | | 2.03 | % | | 1.79 | % |
| Return on average shareholders' equity | 12.46 | % | | 13.90 | % | | 12.67 | % | | 12.35 | % | | 11.47 | % |
Return on average tangible common equity (8) | 18.55 | % | | 20.68 | % | | 18.28 | % | | 18.39 | % | | 16.51 | % |
Core return on average tangible common equity (9) | 18.73 | % | | 20.66 | % | | 18.48 | % | | 20.86 | % | | 16.58 | % |
Core efficiency ratio (2)(10) | 53.42 | % | | 52.80 | % | | 54.06 | % | | 52.88 | % | | 56.32 | % |
Net interest margin (FTE) (1) | 3.76 | % | | 3.85 | % | | 3.76 | % | | 3.87 | % | | 3.45 | % |
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| Book value per common share | $ | 12.14 | | | $ | 12.03 | | | $ | 10.95 | | | | | |
Tangible book value per common share (11) | 8.35 | | | 8.24 | | | 7.60 | | | | | |
| Market value per common share | 12.21 | | | 12.65 | | | 12.84 | | | | | |
| Cash dividends declared per common share | 0.125 | | | 0.125 | | | 0.120 | | | 0.370 | | | 0.355 | |
| ASSET QUALITY RATIOS | | | | | | | | | |
Nonperforming loans and leases as a percent of end-of-period loans and leases(3) | 0.54 | % | | 0.54 | % | | 0.48 | % | | | | |
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Nonperforming assets as a percent of total assets (3) | 0.43 | % | | 0.44 | % | | 0.38 | % | | | | |
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Net charge-offs as a percent of average loans and leases (annualized) (4) | 0.18 | % | | 0.40 | % | | 0.13 | % | | | | |
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Allowance for credit losses as a percent of nonperforming loans and leases (4) | 280.31 | % | | 278.17 | % | | 269.23 | % | | | | |
Allowance for credit losses as a percent of end-of-period loans and leases (4) | 1.51 | % | | 1.52 | % | | 1.31 | % | | | | |
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| CAPITAL RATIOS | | | | | | | | | |
| Shareholders' equity as a percent of total assets | 10.9 | % | | 10.9 | % | | 10.7 | % | | | | |
Tangible common equity as a percent of tangible assets (12) | 7.7 | % | | 7.7 | % | | 7.7 | % | | | | |
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| Leverage Ratio | 9.9 | % | | 9.8 | % | | 10.1 | % | | | | |
| Risk Based Capital - Tier I | 11.6 | % | | 11.5 | % | | 12.1 | % | | | | |
| Risk Based Capital - Total | 13.8 | % | | 13.7 | % | | 14.5 | % | | | | |
| Common Equity - Tier I | 10.9 | % | | 10.8 | % | | 11.2 | % | | | | |
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| FIRST COMMONWEALTH FINANCIAL CORPORATION | | | | |
| CONSOLIDATED FINANCIAL DATA | | | | | | |
| Unaudited | | | | | | |
| (dollars in thousands, except per share data) | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| INCOME STATEMENT | | | | | | |
| Interest income | $ | 139,885 | | $ | 131,267 | | $ | 85,700 | | | $ | 385,741 | | $ | 233,672 | |
| Interest expense | 42,128 | | 33,443 | | 3,340 | | | 95,802 | | 9,478 | |
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| Net Interest Income | 97,757 | | 97,824 | | 82,360 | | | 289,939 | | 224,194 | |
| Provision for credit losses | 5,885 | | 2,790 | | 5,923 | | | 6,025 | | 11,986 | |
| Provision for credit losses - acquisition day 1 non-PCD | — | | — | | — | | | 10,653 | | — | |
| Net Interest Income after Provision for Credit Losses | 91,872 | | 95,034 | | 76,437 | | | 273,261 | | 212,208 | |
| Net securities gains | (103) | | — | | — | | | (103) | | 2 | |
| Trust income | 2,949 | | 2,532 | | 2,777 | | | 7,967 | | 8,063 | |
| Service charges on deposit accounts | 5,600 | | 5,324 | | 5,194 | | | 15,842 | | 14,695 | |
| Insurance and retail brokerage commissions | 2,305 | | 2,314 | | 2,048 | | | 7,171 | | 6,806 | |
| Income from bank owned life insurance | 1,242 | | 1,195 | | 1,419 | | | 3,664 | | 4,310 | |
| Gain on sale of mortgage loans | 1,270 | | 1,253 | | 1,485 | | | 3,175 | | 4,328 | |
| Gain on sale of other loans and assets | 1,027 | | 1,891 | | 1,093 | | | 5,004 | | 4,511 | |
| Card-related interchange income | 7,221 | | 7,372 | | 6,980 | | | 21,422 | | 20,607 | |
| Derivative mark-to-market | 35 | | 81 | | 6 | | | 27 | | 395 | |
| Swap fee income | 452 | | 332 | | 2,326 | | | 1,029 | | 3,933 | |
| Other income | 2,828 | | 2,229 | | 2,586 | | | 7,114 | | 6,749 | |
| Total Noninterest Income | 24,826 | | 24,523 | | 25,914 | | | 72,312 | | 74,399 | |
| Salaries and employee benefits | 35,640 | | 36,735 | | 32,486 | | | 106,639 | | 94,367 | |
| Net occupancy | 4,782 | | 4,784 | | 4,629 | | | 14,584 | | 13,586 | |
| Furniture and equipment | 4,414 | | 4,284 | | 4,005 | | | 12,936 | | 11,592 | |
| Data processing | 3,857 | | 3,763 | | 3,721 | | | 11,024 | | 10,379 | |
| Pennsylvania shares tax | 1,588 | | 1,173 | | 1,569 | | | 4,013 | | 3,487 | |
| Advertising and promotion | 1,662 | | 1,327 | | 1,278 | | | 4,652 | | 3,938 | |
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| Intangible amortization | 1,344 | | 1,282 | | 746 | | | 3,773 | | 2,470 | |
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| Other professional fees and services | 1,603 | | 1,182 | | 1,204 | | | 4,376 | | 3,622 | |
| FDIC insurance | 1,920 | | 1,277 | | 796 | | | 4,614 | | 2,196 | |
| Litigation and operational losses | 1,626 | | 894 | | 758 | | | 3,263 | | 1,987 | |
| Loss on sale or write-down of assets | 50 | | 6 | | 54 | | | 97 | | 215 | |
| | | | | | |
| Merger and acquisition | 379 | | (60) | | 448 | | | 8,860 | | 448 | |
| | | | | | |
| | | | | | |
| | | | | | |
| Other operating expenses | 8,548 | | 9,296 | | 8,207 | | | 25,906 | | 23,017 | |
| Total Noninterest Expense | 67,413 | | 65,943 | | 59,901 | | | 204,737 | | 171,304 | |
| Income before Income Taxes | 49,285 | | 53,614 | | 42,450 | | | 140,836 | | 115,303 | |
| | | | | | |
| Income tax provision | 10,054 | | 10,833 | | 8,482 | | | 28,600 | | 22,855 | |
| Net Income | $ | 39,231 | | $ | 42,781 | | $ | 33,968 | | | $ | 112,236 | | $ | 92,448 | |
| | | | | | |
| Shares Outstanding at End of Period | 102,184,652 | 102,444,915 | 93,377,064 | | 102,184,652 | 93,377,064 |
| Average Shares Outstanding Assuming Dilution | 102,442,878 | 102,760,266 | 93,450,259 | | 101,674,970 | 93,994,158 |
| | | | | | |
|
|
| | | | | | | | | | | | | | | | | |
| FIRST COMMONWEALTH FINANCIAL CORPORATION | | | |
| CONSOLIDATED FINANCIAL DATA | | | | | |
| Unaudited | | | | | |
| (dollars in thousands) | | | | | |
| | | | | |
| September 30, | | June 30, | | September 30, |
| 2023 | | 2023 | | 2022 |
| BALANCE SHEET (Period End) | | | | | |
| Assets | | | | | |
| Cash and due from banks | $ | 122,982 | | | $ | 123,095 | | | $ | 106,153 | |
| Interest-bearing bank deposits | 214,088 | | | 325,774 | | | 74,619 | |
| Securities available for sale, at fair value | 866,582 | | | 784,503 | | | 802,871 | |
| Securities held to maturity, at amortized cost | 429,558 | | | 439,922 | | | 474,790 | |
| Loans held for sale | 33,127 | | | 16,300 | | | 13,811 | |
| | | | | |
| Loans and leases | 8,901,725 | | | 8,799,836 | | | 7,348,917 | |
| Allowance for credit losses | (134,337) | | | (133,546) | | | (96,093) | |
| Net loans and leases | 8,767,388 | | | 8,666,290 | | | 7,252,824 | |
| | | | | |
| Goodwill and other intangibles | 387,328 | | | 388,451 | | | 312,950 | |
| | | | | |
| Other assets | 600,935 | | | 574,269 | | | 540,612 | |
| Total Assets | $ | 11,421,988 | | | $ | 11,318,604 | | | $ | 9,578,630 | |
| | | | | |
| Liabilities and Shareholders' Equity | | | | | |
| Noninterest-bearing demand deposits | $ | 2,535,704 | | | $ | 2,624,344 | | | $ | 2,782,654 | |
| | | | | |
| Interest-bearing demand deposits | 632,062 | | | 611,156 | | | 354,310 | |
| Savings deposits | 4,928,607 | | | 4,935,124 | | | 4,608,762 | |
| Time deposits | 1,144,692 | | | 975,654 | | | 331,923 | |
| Total interest-bearing deposits | 6,705,361 | | | 6,521,934 | | | 5,294,995 | |
| | | | | |
| Total deposits | 9,241,065 | | | 9,146,278 | | | 8,077,649 | |
| | | | | |
| Short-term borrowings | 544,060 | | | 542,839 | | | 97,932 | |
| Long-term borrowings | 187,017 | | | 187,276 | | | 181,489 | |
| Total borrowings | 731,077 | | | 730,115 | | | 279,421 | |
| | | | | |
| | | | | |
| Other liabilities | 209,315 | | | 209,792 | | | 198,985 | |
| Shareholders' equity | 1,240,531 | | | 1,232,419 | | | 1,022,575 | |
| Total Liabilities and Shareholders' Equity | $ | 11,421,988 | | | $ | 11,318,604 | | | $ | 9,578,630 | |
| | |
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
| CONSOLIDATED FINANCIAL DATA |
| Unaudited |
| (dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 30, | Yield/ | June 30, | Yield/ | September 30, | Yield/ | | September 30, | Yield/ | September 30, | Yield/ |
| 2023 | Rate | 2023 | Rate | 2022 | Rate | | 2023 | Rate | 2022 | Rate |
| NET INTEREST MARGIN | | | | | | | | | |
| | | | | | | | | | | |
| Assets | | | | | | | | | | | |
Loans and leases (FTE)(1)(3) | $ | 8,884,731 | | 5.79 | % | $ | 8,689,021 | | 5.58 | % | $ | 7,261,790 | | 4.31 | % | | $ | 8,627,203 | | 5.56 | % | $ | 7,065,213 | | 4.04 | % |
| | | | | | | | | | | |
Securities and interest-bearing bank deposits (FTE) (1) | 1,465,069 | | 2.85 | % | 1,535,136 | | 2.77 | % | 1,446,315 | | 1.92 | % | | 1,427,243 | | 2.63 | % | 1,661,862 | | 1.70 | % |
Total Interest-Earning Assets (FTE) (1) | 10,349,800 | | 5.37 | % | 10,224,157 | | 5.16 | % | 8,708,105 | | 3.92 | % | | 10,054,446 | | 5.14 | % | 8,727,075 | | 3.59 | % |
| Noninterest-earning assets | 957,258 | | | 932,756 | | | 825,989 | | | | 932,844 | | | 826,007 | | |
| Total Assets | $ | 11,307,058 | | | $ | 11,156,913 | | | $ | 9,534,094 | | | | $ | 10,987,290 | | | $ | 9,553,082 | | |
| | | | | | | | | | | |
| Liabilities and Shareholders' Equity | | | | | | | | | | | |
| Interest-bearing demand and savings deposits | $ | 5,581,623 | | 1.67 | % | $ | 5,595,336 | | 1.35 | % | $ | 4,952,279 | | 0.07 | % | | $ | 5,497,336 | | 1.31 | % | $ | 5,000,018 | | 0.05 | % |
| Time deposits | 1,054,216 | | 3.48 | % | 930,447 | | 3.03 | % | 336,346 | | 0.24 | % | | 890,299 | | 3.03 | % | 354,938 | | 0.26 | % |
| Short-term borrowings | 504,025 | | 5.23 | % | 434,783 | | 4.79 | % | 102,073 | | 0.19 | % | | 402,782 | | 4.73 | % | 104,343 | | 0.11 | % |
| Long-term borrowings | 187,122 | | 5.94 | % | 187,379 | | 5.03 | % | 181,596 | | 4.94 | % | | 186,629 | | 5.35 | % | 181,856 | | 4.96 | % |
| Total Interest-Bearing Liabilities | 7,326,986 | | 2.28 | % | 7,147,945 | | 1.88 | % | 5,572,294 | | 0.24 | % | | 6,977,046 | | 1.84 | % | 5,641,155 | | 0.22 | % |
| Noninterest-bearing deposits | 2,519,184 | | | 2,580,842 | | | 2,746,258 | | | | 2,592,373 | | | 2,701,458 | | |
| Other liabilities | 211,447 | | | 193,292 | | | 152,208 | | | | 202,438 | | | 132,431 | | |
| Shareholders' equity | 1,249,441 | | | 1,234,834 | | | 1,063,334 | | | | 1,215,433 | | | 1,078,038 | | |
| Total Noninterest-Bearing Funding Sources | 3,980,072 | | | 4,008,968 | | | 3,961,800 | | | | 4,010,244 | | | 3,911,927 | | |
| Total Liabilities and Shareholders' Equity | $ | 11,307,058 | | | $ | 11,156,913 | | | $ | 9,534,094 | | | | $ | 10,987,290 | | | $ | 9,553,082 | | |
| | | | | | | | | | | |
Net Interest Margin (FTE) (annualized)(1) | | 3.76 | % | | 3.85 | % | | 3.76 | % | | | 3.87 | % | | 3.45 | % |
| | | | | | | | | | | |
| FIRST COMMONWEALTH FINANCIAL CORPORATION | |
| CONSOLIDATED FINANCIAL DATA | | | |
| Unaudited | | | |
| (dollars in thousands) | | | |
| September 30, | June 30, | September 30, |
| 2023 | 2023 | 2022 |
| Loan and Lease Portfolio Detail | | | |
| Commercial Loan and Lease Portfolio: | | | |
| Commercial, financial, agricultural and other | $ | 1,305,905 | | $ | 1,347,842 | | $ | 1,125,429 | |
| | | |
| Commercial real estate | 3,050,084 | | 3,004,962 | | 2,393,276 | |
| Equipment Finance loans and leases | 190,116 | | 154,152 | | 43,777 | |
| Real estate construction | 508,875 | | 474,720 | | 326,539 | |
| Total Commercial | 5,054,980 | | 4,981,676 | | 3,889,021 | |
| | | |
| Consumer Loan Portfolio: | | | |
| Closed-end mortgages | 1,915,506 | | 1,858,660 | | 1,631,655 | |
| Home equity lines of credit | 499,275 | | 505,449 | | 522,249 | |
| Real estate construction | 66,672 | | 100,079 | | 96,151 | |
| Total Real Estate - Consumer | 2,481,453 | | 2,464,188 | | 2,250,055 | |
| | | |
| Auto & RV loans | 1,285,380 | | 1,272,557 | | 1,120,838 | |
| Direct installment | 27,888 | | 28,881 | | 33,528 | |
| Personal lines of credit | 48,718 | | 49,168 | | 51,514 | |
| Student loans | 3,306 | | 3,366 | | 3,961 | |
| Total Other Consumer | 1,365,292 | | 1,353,972 | | 1,209,841 | |
| Total Consumer Portfolio | 3,846,745 | | 3,818,160 | | 3,459,896 | |
| Total Portfolio Loans and Leases | 8,901,725 | | 8,799,836 | | 7,348,917 | |
| Loans held for sale | 33,127 | | 16,300 | | 13,811 | |
| Total Loans and Leases | $ | 8,934,852 | | $ | 8,816,136 | | $ | 7,362,728 | |
| | | |
| | | |
| September 30, | June 30, | September 30, |
| 2023 | 2023 | 2022 |
| ASSET QUALITY DETAIL | | | |
| Nonperforming Loans and Leases: | | | |
| Loans and leases on nonaccrual basis * | $ | 25,902 | | $ | 29,322 | | $ | 29,476 | |
| Loans on nonaccrual basis - Centric acquisition | 22,022 | | 18,687 | | — | |
| | | |
| | | |
| Troubled debt restructured loans on accrual basis * | — | | — | | 6,216 | |
| Total Nonperforming Loans and Leases | $ | 47,924 | | $ | 48,009 | | $ | 35,692 | |
| Other real estate owned ("OREO") | 765 | | 324 | | 322 | |
| Repossessions ("Repos") | 762 | | 1,004 | | 600 | |
| Total Nonperforming Assets | $ | 49,451 | | $ | 49,337 | | $ | 36,614 | |
| Loans past due in excess of 90 days and still accruing | 2,484 | | 2,474 | | 1,548 | |
| Classified loans and leases | 66,272 | | 76,419 | | 45,656 | |
| Criticized loans and leases | 193,192 | | 207,071 | | 139,258 | |
| | | |
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos (4) | 0.56 | % | 0.56 | % | 0.50 | % |
| Allowance for credit losses | $ | 134,337 | | $ | 133,546 | | $ | 96,093 | |
*TDR's were eliminated as of January 1, 2023 as part of implementing ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.
|
| | |
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
| CONSOLIDATED FINANCIAL DATA |
| Unaudited |
| (dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| Net Charge-offs (Recoveries): | | | | | | |
| Commercial, financial, agricultural and other | $ | 1,664 | | $ | 6,582 | | $ | 698 | | | $ | 8,750 | | $ | 1,523 | |
| Real estate construction | — | | — | | (9) | | | — | | (9) | |
| Commercial real estate | 166 | | 1,423 | | 1,003 | | | 1,547 | | 1,536 | |
| Residential real estate | 247 | | (32) | | 36 | | | 256 | | 120 | |
| Loans to individuals | 1,899 | | 692 | | 733 | | | 3,261 | | 1,953 | |
| Net Charge-offs | $ | 3,976 | | $ | 8,665 | | $ | 2,461 | | | $ | 13,814 | | $ | 5,123 | |
| | | | | | |
Net charge-offs as a percentage of average loans and leases outstanding (annualized) (4) | 0.18 | % | 0.40 | % | 0.13 | % | | 0.21 | % | 0.10 | % |
| | | | | | |
| Provision for credit losses as a percentage of net charge-offs | 148.01 | % | 32.20 | % | 240.67 | % | | 43.62 | % | 233.96 | % |
| Provision for credit losses | $ | 5,885 | | $ | 2,790 | | $ | 5,923 | | | $ | 6,025 | | $ | 11,986 | |
| | | | | | | | | | | | | | | | | | | | |
| 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 | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| | | | | | |
| Interest income | $ | 139,885 | | $ | 131,267 | | $ | 85,700 | | | $ | 385,741 | | $ | 233,672 | |
Adjustment to fully taxable equivalent basis (1) | 313 | | 305 | | 261 | | | 923 | | 759 | |
| Interest income adjusted to fully taxable equivalent basis (non-GAAP) | 140,198 | | 131,572 | | 85,961 | | | 386,664 | | 234,431 | |
| Interest expense | 42,128 | | 33,443 | | 3,340 | | | 95,802 | | 9,478 | |
Net interest income, (FTE) (1) | $ | 98,070 | | $ | 98,129 | | $ | 82,621 | | | $ | 290,862 | | $ | 224,953 | |
| | |
| 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 | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| | | | | | |
| Net Income | $ | 39,231 | | $ | 42,781 | | $ | 33,968 | | | $ | 112,236 | | $ | 92,448 | |
| Intangible amortization | 1,344 | | 1,282 | | 746 | | | 3,773 | | 2,470 | |
| Tax benefit of amortization of intangibles | (282) | | (269) | | (157) | | | (792) | | (519) | |
| Net Income, adjusted for tax affected amortization of intangibles | $ | 40,293 | | $ | 43,794 | | $ | 34,557 | | | $ | 115,217 | | $ | 94,399 | |
| | | | | | |
| Average Tangible Equity: | | | | | | |
| Total shareholders' equity | $ | 1,249,441 | | $ | 1,234,834 | | $ | 1,063,334 | | | $ | 1,215,433 | | $ | 1,078,038 | |
| Less: intangible assets | 387,782 | | 385,567 | | 313,336 | | | 377,697 | | 313,726 | |
| Tangible Equity | 861,659 | | 849,267 | | 749,998 | | | 837,736 | | 764,312 | |
| Less: preferred stock | — | | — | | — | | | — | | — | |
| Tangible Common Equity | $ | 861,659 | | $ | 849,267 | | $ | 749,998 | | | $ | 837,736 | | $ | 764,312 | |
| | | | | | |
(8)Return on Average Tangible Common Equity | 18.55 | % | 20.68 | % | 18.28 | % | | 18.39 | % | 16.51 | % |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| | | | | | |
| Core Net Income: | | | | | | |
| Total Net Income | $ | 39,231 | | $ | 42,781 | | $ | 33,968 | | | $ | 112,236 | | $ | 92,448 | |
| | | | | | |
| Net securities gains | 103 | | — | | — | | | 103 | | (2) | |
| Tax benefit of net securities gains | (22) | | — | | — | | | (22) | | — | |
| Merger and acquisition related expenses | 379 | | (60) | | 448 | | | 8,860 | | 448 | |
| Tax benefit of merger and acquisition related expenses | (80) | | 13 | | (94) | | | (1,861) | | (94) | |
| COVID-19 related | — | | — | | 39 | | | — | | 118 | |
| Tax benefit of COVID-19 related | — | | — | | (8) | | | — | | (25) | |
| 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) | | — | |
| Branch consolidation related | — | | — | | — | | | — | | (104) | |
| Tax benefit of branch consolidation related expenses | — | | — | | — | | | — | | 22 | |
(5) Core net income | $ | 39,611 | | $ | 42,734 | | $ | 34,353 | | | $ | 127,732 | | $ | 92,811 | |
| Average Shares Outstanding Assuming Dilution | 102,442,878 | 102,760,266 | 93,450,259 | | 101,674,970 | 93,994,158 |
(6) Core Earnings per common share (diluted) | $ | 0.39 | | $ | 0.42 | | $ | 0.37 | | | $ | 1.26 | | $ | 0.99 | |
| | | | | | |
| Intangible amortization | 1,344 | | 1,282 | | 746 | | | 3,773 | | 2,470 | |
| Tax benefit of amortization of intangibles | (282) | | (269) | | (157) | | | (792) | | (519) | |
| Core Net Income, adjusted for tax affected amortization of intangibles | $ | 40,673 | | $ | 43,747 | | $ | 34,942 | | | $ | 130,713 | | $ | 94,762 | |
| | | | | | |
(9) Core Return on Average Tangible Common Equity | 18.73 | % | 20.66 | % | 18.48 | % | | 20.86 | % | 16.58 | % |
| | |
| 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 | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| Core Return on Average Assets: | | | | | | |
| Total Net Income | $ | 39,231 | | $ | 42,781 | | $ | 33,968 | | | $ | 112,236 | | $ | 92,448 | |
| Total Average Assets | 11,307,058 | | 11,156,913 | | 9,534,094 | | | 10,987,290 | | 9,553,082 | |
| Return on Average Assets | 1.38 | % | 1.54 | % | 1.41 | % | | 1.37 | % | 1.29 | % |
| | | | | | |
Core Net Income (5) | $ | 39,611 | | $ | 42,734 | | $ | 34,353 | | | $ | 127,732 | | $ | 92,811 | |
| Total Average Assets | 11,307,058 | | 11,156,913 | | 9,534,094 | | | 10,987,290 | | 9,553,082 | |
(7) Core Return on Average Assets | 1.39 | % | 1.54 | % | 1.43 | % | | 1.55 | % | 1.30 | % |
| | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| Core Efficiency Ratio: | | | | | | |
| Total Noninterest Expense | $ | 67,413 | | $ | 65,943 | | $ | 59,901 | | | $ | 204,737 | | $ | 171,304 | |
| Adjustments to Noninterest Expense: | | | | | | |
| | | | | | |
| | | | | | |
| Intangible amortization | 1,344 | | 1,282 | | 746 | | | 3,773 | | 2,470 | |
| | | | | | |
| Merger and acquisition related | 379 | | (60) | | 448 | | | 8,860 | | 448 | |
| COVID-19 related | — | | — | | 39 | | | — | | 118 | |
| | | | | | |
| Branch consolidation related | — | | — | | — | | | — | | (104) | |
| | | | | | |
| Noninterest Expense - Core | $ | 65,690 | | $ | 64,721 | | $ | 58,668 | | | $ | 192,104 | | $ | 168,372 | |
| | | | | | |
| Net interest income, (FTE) | $ | 98,070 | | $ | 98,129 | | $ | 82,621 | | | $ | 290,862 | | $ | 224,953 | |
| Total noninterest income | 24,826 | | 24,523 | | 25,914 | | | 72,312 | | 74,399 | |
| Net securities gains | 103 | | — | | — | | | 103 | | (2) | |
| Total Revenue | 122,999 | | 122,652 | | 108,535 | | | 363,277 | | 299,350 | |
| | | | | | |
| Adjustments to Revenue: | | | | | | |
| Derivative mark-to-market | 35 | | 81 | | 6 | | | 27 | | 395 | |
| Total Revenue - Core | $ | 122,964 | | $ | 122,571 | | $ | 108,529 | | | $ | 363,250 | | $ | 298,955 | |
| | | | | | |
(10)Core Efficiency Ratio | 53.42 | % | 52.80 | % | 54.06 | % | | 52.88 | % | 56.32 | % |
| | |
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
| CONSOLIDATED FINANCIAL DATA |
| Unaudited |
| (dollars in thousands) |
| | | | | | | | | | | | | | | |
| DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | | | | | | |
| | | | | | | |
| September 30, | June 30, | September 30, | | | | |
| 2023 | 2023 | 2022 | | | | |
| Tangible Equity: | | | | | | | |
| Total shareholders' equity | $ | 1,240,531 | | $ | 1,232,419 | | $ | 1,022,575 | | | | | |
| Less: intangible assets | 387,328 | | 388,451 | | 312,950 | | | | | |
| Tangible Equity | 853,203 | | 843,968 | | 709,625 | | | | | |
| Less: preferred stock | — | | — | | — | | | | | |
| Tangible Common Equity | $ | 853,203 | | $ | 843,968 | | $ | 709,625 | | | | | |
| | | | | | | |
| Tangible Assets: | | | | | | | |
| Total assets | $ | 11,421,988 | | $ | 11,318,604 | | $ | 9,578,630 | | | | | |
| Less: intangible assets | 387,328 | | 388,451 | | 312,950 | | | | | |
| Tangible Assets | $ | 11,034,660 | | $ | 10,930,153 | | $ | 9,265,680 | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
(12)Tangible Common Equity as a percentage of Tangible Assets | 7.73 | % | 7.72 | % | 7.66 | % | | | | |
| | | | | | | |
| | | | | | | |
| Shares Outstanding at End of Period | 102,184,652 | | 102,444,915 | | 93,377,064 | | | | | |
(11)Tangible Book Value Per Common Share | $ | 8.35 | | $ | 8.24 | | $ | 7.60 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 30, | June 30, | September 30, | | September 30, | September 30, |
| 2023 | 2023 | 2022 | | 2023 | 2022 |
| Pre-tax pre-provision income: | | | | | | |
| Net interest income | $ | 97,757 | | $ | 97,824 | | $ | 82,360 | | | $ | 289,939 | | $ | 224,194 | |
| Noninterest income | 24,826 | 24,523 | 25,914 | | 72,312 | 74,399 |
| Noninterest expense | 67,413 | 65,943 | 59,901 | | 204,737 | 171,304 |
| Pre-tax pre-provision income | $ | 55,170 | | $ | 56,404 | | $ | 48,373 | | | $ | 157,514 | | $ | 127,289 | |
| | | | | | |
| Net securities gains | $ | 103 | | $ | — | | $ | — | | | $ | 103 | | $ | (2) | |
| Merger and acquisition related expenses | 379 | (60) | 448 | | 8,860 | 448 |
| COVID-19 related | — | — | 39 | | — | 118 |
| | | | | | |
| Branch consolidation | — | — | — | | — | (104) |
| Core pre-tax pre-provision income | $ | 55,652 | | $ | 56,344 | | $ | 48,860 | | | $ | 166,477 | | $ | 127,749 | |
| | | | | | |
| Net charge-offs | $ | 3,976 | | $ | 8,665 | | $ | 2,461 | | | $ | 13,814 | | $ | 5,123 | |
