In This Article:
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 Ended | ||||||||||||||||
| except per share data) | December 31, |
| September 30, |
| December 31, |
| December 31, |
| December 31, | ||||||||||
|
| 2024 |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||||||||
| Reported 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 | % |
|
|
|
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|
|
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|
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| Operating Results (non-GAAP)(1) |
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| ||||||||||
| 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 2023
-
Core 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 2023
-
Average deposits increased $207.1 million, or 8.7% annualized, compared to the prior quarter
-
Total loans increased $23.5 million, or 1.0% annualized, from the previous quarter, driven by growth in the Equipment Finance and Commercial Real Estate portfolios
-
Net 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 2023
-
Noninterest income (excluding a $0.2 million gain on investment securities in 3Q 2024) of $25.3 million decreased $0.8 million from the previous quarter
-
Noninterest expense (excluding $0.3 million of merger-related expenses in 4Q 2024) of $69.0 million decreased $1.0 million from the previous quarter
-
Total 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 2023
-
Core 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 2023
-
The net interest margin of 3.54% decreased two basis points from the prior quarter and decreased 11 basis points from the fourth quarter of 2023
-
The 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 quarter
-
The allowance for credit losses as a percentage of end-of-period loans was 1.32%, as compared to 1.41% in the previous quarter
-
Total nonperforming loans decreased $13.3 million from the previous quarter
-
Net 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 quarters
-
Net 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 year
-
Core pre-tax pre-provision ROAA(1) for the year ended December 31, 2024 was 1.78% as compared to 2.00% in the prior year
-
The 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 year
-
The 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 Wahl
Communications and Media Relations
Phone: 724-463-6806
E-mail: RWahl@fcbanking.com
Investor Relations:
Ryan M. Thomas
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com
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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 Year Ended | ||||||||||||||||
|
| December 31, |
| September 30, |
| December 31, |
| December 31, |
| December 31, | ||||||||||
|
|
| 2024 |
|
|
| 2024 |
|
|
| 2023 |
|
|
| 2024 |
|
|
| 2023 |
|
| SUMMARY RESULTS OF OPERATIONS |
|
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| ||||||||||
| 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 |
|
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|
|
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| ||||||||||
| 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 | % |
|
|
|
|
|
|
|
|
|
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| 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 |
|
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| 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 | % |
|
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| CAPITAL RATIOS |
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| Shareholders' equity as a percent of total assets |
| 12.1 | % |
|
| 11.8 | % |
|
| 11.5 | % |
|
|
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| ||||
| 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 CORPORATION | |||||||||||||||
| CONSOLIDATED FINANCIAL DATA | |||||||||||||||
| Unaudited | |||||||||||||||
| (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 CORPORATION | |||||||||||
| CONSOLIDATED FINANCIAL DATA | |||||||||||
| Unaudited | |||||||||||
| (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 CORPORATION | |||||||||||||||||||||
|
| For the Three Months Ended |
| For the Year Ended | ||||||||||||||||||
|
| December 31, | Yield/ | September 30, | Yield/ | December 31, | Yield/ |
| December 31, | Yield/ | December 31, | Yield/ | ||||||||||
|
| 2024 | Rate | 2024 | Rate | 2023 | Rate |
| 2024 | Rate | 2023 | Rate | ||||||||||
| NET INTEREST MARGIN |
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| Assets |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| Loans and leases (FTE)(1)(3) | $ | 9,034,096 | 5.97 | % | $ | 9,004,808 | 6.09 | % | $ | 8,974,613 | 5.89 | % |
| $ | 9,013,742 | 6.02 | % | $ | 8,714,770 | 5.64 | % |
| Interest bearing bank deposits |
| 58,469 | 5.22 | % |
| 278,006 | 5.49 | % |
| 112,722 | 5.61 | % |
|
| 164,339 | 5.52 | % |
| 176,146 | 5.39 | % |
| Securities (FTE)(1) |
| 1,620,823 | 3.43 | % |
| 1,542,792 | 3.34 | % |
| 1,353,240 | 2.85 | % |
|
| 1,536,812 | 3.27 | % |
| 1,260,854 | 2.37 | % |
| Total Interest-Earning Assets (FTE) (1) |
| 10,713,388 | 5.58 | % |
| 10,825,606 | 5.68 | % |
| 10,440,575 | 5.49 | % |
|
| 10,714,893 | 5.62 | % |
| 10,151,770 | 5.23 | % |
| 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 | $ | 5,703,763 | 2.22 | % | $ | 5,657,796 | 2.27 | % | $ | 5,540,364 | 1.90 | % |
| $ | 5,636,553 | 2.20 | % | $ | 5,508,182 | 1.46 | % |
| Time deposits |
| 1,730,251 | 4.32 | % |
| 1,575,975 | 4.40 | % |
| 1,217,356 | 3.81 | % |
|
| 1,549,999 | 4.32 | % |
| 972,735 | 3.28 | % |
| Short-term borrowings |
| 98,113 | 4.28 | % |
| 541,010 | 4.62 | % |
| 548,680 | 5.43 | % |
|
| 444,453 | 4.60 | % |
| 439,556 | 4.95 | % |
| Long-term borrowings |
| 252,064 | 5.07 | % |
| 136,408 | 5.44 | % |
| 186,860 | 5.75 | % |
|
| 186,550 | 5.51 | % |
| 186,687 | 5.45 | % |
| Total Interest-Bearing Liabilities |
| 7,784,191 | 2.81 | % |
| 7,911,189 | 2.91 | % |
| 7,493,260 | 2.57 | % |
|
| 7,817,555 | 2.83 | % |
| 7,107,160 | 2.03 | % |
| 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 CORPORATION | |||||||||
| CONSOLIDATED FINANCIAL DATA | |||||||||
| Unaudited | |||||||||
| (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 CORPORATION | ||||||||||||||||
|
| 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 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 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 | $ | 529,998 |
| Adjustment to fully taxable equivalent basis (1) |
| 354 |
| 342 |
| 314 |
|
| 1,347 |
| 1,237 |
| Interest income adjusted to fully taxable equivalent basis (non-GAAP) |
| 150,350 |
| 154,665 |
| 144,571 |
|
| 601,810 |
| 531,235 |
| Interest expense |
| 54,915 |
| 57,808 |
| 48,520 |
|
| 221,571 |
| 144,322 |
| Net interest income, (FTE) (1) | $ | 95,435 | $ | 96,857 | $ | 96,051 |
| $ | 380,239 | $ | 386,913 |
| FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||||||||||
|
| ||||||||||||||||
| 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 CORPORATION | ||||||||||||||||
|
| ||||||||||||||||
| 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 CORPORATION | |||||||||
|
| |||||||||
| 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 |
|
| 2023 |
| Pre-tax pre-provision income: |
|
|
|
|
|
| ||||||||
| Net interest income | $ | 95,081 |
| $ | 96,515 |
| $ | 95,737 |
| $ | 378,892 |
| $ | 385,676 |
| Noninterest income |
| 25,335 |
|
| 24,698 |
|
| 24,297 |
|
| 99,231 |
|
| 96,609 |
| Noninterest expense |
| 69,304 |
|
| 70,070 |
|
| 65,180 |
|
| 270,745 |
|
| 269,917 |
| Pre-tax pre-provision income | $ | 51,112 |
| $ | 51,143 |
| $ | 54,854 |
| $ | 207,378 |
| $ | 212,368 |
|
|
|
|
|
|
|
| ||||||||
| Net securities (gains) losses | $ | (1 | ) | $ | (194 | ) | $ | — |
| $ | (218 | ) | $ | 103 |
| Merger and acquisition related expenses |
| 277 |
|
| — |
|
| 174 |
|
| 391 |
|
| 9,034 |
| Core 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 |