First Commonwealth Announces Fourth Quarter and Full Year 2021 Earnings; Declares Quarterly Dividend

INDIANA, Pa., Jan.25, 2022(GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the fourth quarter and full year of 2021.

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,
2021 2021 2020 2021 2020
Reported Results
Net income$34,776 $34,092 $25,683 $138,257 $73,447
Diluted earnings per share$0.37 $0.36 $0.27 $1.44 $0.75
Return on average assets 1.45% 1.42% 1.12% 1.47% 0.82%
Return on average equity 12.36% 12.14% 9.48% 12.55% 6.82%
Operating Results (non-GAAP)(1)
Core net income$34,753 $34,131 $26,102 $138,518 $78,896
Core diluted earnings per share$0.37 $0.36 $0.27 $1.45 $0.81
Core pre-tax pre-provision net revenue$40,868 $42,913 $40,092 $171,771 $153,819
Provision expense($2,729) $330 $7,680 ($1,376) $56,718
Net charge-offs ($1,064) $2,277 $4,825 $8,410 $17,193
Reserve build/(release)(2)($1,663) ($2,853) $13,002 ($8,787) $49,672
Core return on average assets (ROAA) 1.45% 1.43% 1.14% 1.47% 0.88%
Core pre-tax pre-provision ROAA 1.71% 1.79% 1.75% 1.83% 1.71%
Return on average tangible common equity 17.56% 17.28% 13.80% 17.95% 10.06%
Core return on average tangible common equity 17.55% 17.30% 14.02% 17.98% 10.78%
Core efficiency ratio 57.06% 55.27% 56.00% 54.69% 56.28%
Net interest margin (FTE) 3.23% 3.23% 3.26% 3.26% 3.32%

(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.

Fourth Quarter 2021 Highlights

  • Total PPP loans decreased $80.8 million from the previous quarter resulting in a total PPP loan balance at December 31, 2021 of $71.3 million
  • Net interest income (FTE) of $70.5 million decreased $0.4 million from the previous quarter due primarily to a $1.7 million decrease in income recognized on PPP loans
  • Noninterest income of $26.1 million (excluding net security gains, which were immaterial) decreased $1.2 million from the previous quarter due primarily to a $1.7 million decrease in gain on sale of Mortgage loans
  • Noninterest expense (excluding branch consolidation, early retirement and COVID-19 related expenses, which were immaterial) of $55.5 million increased $0.5 million from the previous quarter
  • Average deposits decreased $33.1 million, or 1.6% annualized compared to the prior quarter, including $21.8 million of intentional time deposit runoff
  • Tangible book value per share grew 2.4% annualized compared to the prior quarter
  • The Bank was named the #1 Small Business Association (SBA) lender in the SBA’s designated Pittsburgh District for the fiscal year ending September 30, 2021
  • Profitability

    Strong capital and liquidity positions

    Asset quality

  • Net charge-offs on loans totaled ($1.1) million, a decrease of $3.3 million from the previous quarter
  • Full Year 2021 Highlights

    Franchise Growth

    Earnings

  • Core pre-tax pre-provision income(1) grew $18.0 million, or 11.7% from the prior year
  • Positive operating leverage for the year ending December 31, 2021
  • Profitability

    “Our results for the quarter and full year were strong, reflecting solid operating performance,” stated T. Michael Price, President and Chief Executive Officer. “Excluding PPP forgiveness, loans grew by 11.2% annualized since September with strong production in nearly all of our commercial and consumer portfolios.” Price continued, “As we look to the year ahead, we are genuinely excited about the core organic growth prospects of our company. The buildout of our Equipment Finance business is on pace and in line with our expectations. Our ongoing investments in talent, technology and our regional business model continue to position us well – all to the benefit of our clients, employees, communities and stockholders."

    Earnings

    Net income for the fourth quarter of 2021 was $34.8 million, or $0.37 per share, compared to $34.1 million, or $0.36 per share in the third quarter of 2021 and $25.7 million, or $0.27 per share for the fourth quarter of 2020.

    Net income for the year ended December 31, 2021 was $138.3 million, or $1.44 per share, compared to $73.4 million, or $0.75 per share, for the same period in 2020.

    Net Interest Income and Net Interest Margin

    Net interest income (FTE) of $70.5 million decreased $0.4 million from the previous quarter and increased $2.7 million from the prior year quarter. The decrease from the previous quarter was primarily due to a $1.7 million decrease in fees recognized on PPP loans, partially offset by a $141.9 million increase in average loans (excluding PPP loans). Interest and fee income recognized on PPP loans totaled $4.0 million in the fourth quarter of 2021 as compared to $5.7 million in the prior quarter.

    The net interest margin for the fourth quarter of 2021 was 3.23%, unchanged from the previous quarter and a decrease of three basis points from the fourth quarter of 2020. Loan yields (excluding PPP) decreased two basis points from the previous quarter due to the runoff of higher yielding loans offset by an $83.2 million increase in average interest earning assets (excluding PPP) and a three basis point increase in the yield on securities.

    Total average deposits decreased $33.1 million in the fourth quarter of 2021 as compared to the previous quarter. Average noninterest bearing deposits grew $5.7 million and partially offset a $21.8 million decrease in average time deposits and a $17.0 million decrease in interest-bearing demand and savings deposits.

    Total end-of-period deposits grew $46.0 million, or 2.3% annualized from the previous quarter.

    Asset Quality

    The Company adopted CECL on December 31, 2020, effective January 1, 2020.

    Provision expense in the fourth quarter of 2021 totaled ($2.7) million as compared to $0.3 million in the previous quarter. The provision expense during the quarter reflected a $1.2 million decrease in qualitative reserves due to improved charge off history and a $0.6 million decrease in individually analyzed reserves, partially offset by a $0.3 million increase in quantitative reserves primarily due to strong quarterly loan growth.

    Nonperforming loans totaled $55.2 million, an increase of $17.1 million from the previous quarter and an increase of $1.1 million the fourth quarter of 2020. The increase from the previous quarter was primarily due to a single commercial real estate relationship with two loans totaling $28.4 million which were downgraded to nonaccrual status during the quarter. At December 31, 2021, the relationship had sufficient collateral and did not require an associated individually assessed reserve.

    Nonperforming loans represented 0.81% of total loans (excluding PPP loans) as compared to 0.58% and 0.86% for the periods ended September 30, 2021 and December 31, 2020, respectively.

    At December 31, 2021, criticized loans totaled $198.1 million, an increase of $2.3 million from the previous quarter.

    During the fourth quarter of 2021, net charge-offs were ($1.1) million due to recoveries on a previously charged off commercial loan relationship, as compared to net charge-offs of $2.2 million in the previous quarter and $4.8 million in the fourth quarter of 2020.

    Net charge-offs as a percentage of average loans (excluding PPP, annualized) were (0.06%), 0.14% and 0.30% for the periods ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

    Noninterest Income and Noninterest Expense

    Noninterest income (excluding net security gains) totaled $26.1 million for the fourth quarter of 2021, as compared to $27.2 million for the third quarter of 2021 and $26.6 million for the fourth quarter of 2020. The $1.1 million decrease from the previous quarter was primarily due to a $1.7 million decrease in gain on sale of Mortgage loans and a $0.7 million decrease in gain on sale of SBA loans, partially offset by an $0.8 million increase in swap derivative mark-to-market and a $0.5 million increase in swap fee income.

    For the year ended December 31, 2021, noninterest income (excluding security gains) totaled $106.7 million, an increase of $12.3 million from the prior year. The increase from the prior year was due to an $4.9 million increase in swap derivative mark-to-market, a $4.0 million increase in card related interchange income, a $3.1 million increase in gain on sale of SBA loans, a $2.0 million increase in Trust income and a $1.6 million increase in service charges on deposit accounts, partially offset by a $5.3 million decrease in gain on sale of Mortgage loans.

    There were no material security gains during 2021 or 2020.

    Noninterest expense (excluding branch consolidation, early retirement and COVID-19 related expenses) totaled $55.5 million for the fourth quarter of 2021, as compared to $55.0 million for the third quarter of 2021 and $54.3 million for the fourth quarter of 2020. The $0.5 million increase from the previous quarter was primarily the result of a $0.4 million increase in salaries and employee benefits and a $0.3 million increase in contributions, partially offset by a $0.3 million decrease in FDIC insurance expense.

    The core efficiency ratio was 57.06% during the fourth quarter of 2021 as compared to 55.27% in the previous quarter and 56.00% in the fourth quarter of 2020.

    For the year ended December 31, 2021, noninterest expense (excluding branch consolidation, early retirement and COVID-19 related expenses) totaled $213.5 million, as compared to $208.9 million in the prior year. The $4.6 million increase from the prior year was primarily driven by a $1.8 million increase in incentives, a $1.8 million increase in data processing and a $1.2 million unfunded commitment reserve credit in the prior year, partially offset by a $1.1 million decrease in occupancy expense.

    The core efficiency ratio was 54.69% for the year ended December 31, 2021 as compared to 56.28% in the previous year.

    Full time equivalent staff was 1,426 at December 31, 2021, 1,409 at September 30, 2021, and 1,398 at December 31, 2020. The increase from the previous quarter was partially the result of new hires related to the company’s previously announced entry into the equipment finance business.

    Dividends and Capital

    First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.115 per share, which represents a 4.5% increase from the fourth quarter of 2020. The cash dividend is payable on February 18, 2022 to shareholders of record as of February 4, 2022. This dividend represents a 2.8% projected annual yield utilizing the January 24, 2021 closing market price of $16.60.

    First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at December 31, 2021 were 14.6%, 12.2%, 9.7% and 11.3%, 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 2021 on Wednesday, January 26, 2022 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 118 community banking offices in 26 counties throughout western and central Pennsylvania and throughout Ohio, as well as business banking operations in Pittsburgh, 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, including uncertainties regarding the impact of the COVID-19 pandemic, and could be affected by many factors, including, but not limited to: (1) the effects of the COVID-19 pandemic on First Commonwealth and its customers; (2) volatility and disruption in national and international financial markets; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (4) inflation, interest rate, commodity price, securities market and monetary fluctuations; (5) 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; (6) the soundness of other financial institutions; (7) political instability; (8) impairment of First Commonwealth’s goodwill or other intangible assets; (9) acts of God or of war or terrorism; (10) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (11) changes in consumer spending, borrowings and savings habits; (12) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealth’s ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (17) the ability to increase market share and control expenses; (18) 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; (19) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (20) 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 (21) 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. Further, statements about the potential effects of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, clients, third parties and us.

    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:Jonathan E. LongwillVice President / Communications and Media RelationsPhone: 724-463-6806E-mail: JLongwill@fcbanking.com

    First Commonwealth Announces Fourth Quarter and Full Year 2021 Earnings; Declares Quarterly Dividend

    Investor Relations:Ryan M. ThomasVice President / Finance and Investor RelationsPhone: 724-463-1690E-mail: RThomas1@fcbanking.com

    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,
    2021 2021 2020 2021 2020
    SUMMARY RESULTS OF OPERATIONS
    Net interest income$70,254 $70,645 $67,492 $278,541 $268,271
    Provision for credit losses (2,729) 330 7,680 (1,376) 56,718
    Noninterest income 26,071 27,245 26,622 106,757 94,476
    Noninterest expense 55,428 55,027 54,552 213,857 215,826
    Net income 34,776 34,092 25,683 138,257 73,447
    Core net income (5) 34,753 34,131 26,102 138,518 78,896
    Earnings per common share (diluted)$0.37 $0.36 $0.27 $1.44 $0.75
    Core earnings per common share (diluted) (6)$0.37 $0.36 $0.27 $1.45 $0.81
    KEY FINANCIAL RATIOS
    Return on average assets 1.45% 1.42% 1.12% 1.47% 0.82%
    Core return on average assets (7) 1.45% 1.43% 1.14% 1.47% 0.88%
    Return on average assets, pre-provision, pre-tax 1.71% 1.79% 1.73% 1.82% 1.64%
    Core return on average assets, pre-provision, pre-tax 1.71% 1.79% 1.75% 1.83% 1.71%
    Return on average shareholders' equity 12.36% 12.14% 9.48% 12.55% 6.82%
    Return on average tangible common equity (8) 17.56% 17.28% 13.80% 17.95% 10.06%
    Core return on average tangible common equity (9) 17.55% 17.30% 14.02% 17.98% 10.78%
    Core efficiency ratio (2)(10) 57.06% 55.27% 56.00% 54.69% 56.28%
    Net interest margin (FTE) (1) 3.23% 3.23% 3.26% 3.26% 3.32%
    Book value per common share$11.77 $11.69 $11.12
    Tangible book value per common share (11) 8.43 8.38 7.82
    Market value per common share 16.09 13.63 10.94
    Cash dividends declared per common share 0.115 0.115 0.110 0.455 0.440
    ASSET QUALITY RATIOS
    Nonperforming loans as a percent of end-of-period loans (3) 0.80% 0.56% 0.80%
    Nonperforming loans as a percent of end-of-period loans, excluding PPP loans (3) 0.81% 0.58% 0.86%
    Nonperforming assets as a percent of total assets (3) 0.59% 0.41% 0.62%
    Nonperforming assets as a percent of total assets, excluding PPP loans (3) 0.59% 0.42% 0.65%
    Net charge-offs as a percent of average loans (annualized) (4)(0.06)% 0.13% 0.28%
    Net charge-offs as a percent of average loans, excluding PPP loans (annualized) (4)(0.06)% 0.14% 0.30%
    Allowance for credit losses as a percent of nonperforming loans (4) 167.67% 247.30% 187.43%
    Allowance for credit losses as a percent of end-of-period loans (4) 1.35% 1.40% 1.50%
    Allowance for credit losses as a percent of end-of-period loans, excluding PPP loans (4) 1.37% 1.43% 1.61%
    CAPITAL RATIOS
    Shareholders' equity as a percent of total assets 11.6% 11.7% 11.8%
    Tangible common equity as a percent of tangible assets (12) 8.6% 8.7% 8.6%
    Tangible common equity as a percent of tangible assets, excluding PPP loans (12) 8.7% 8.9% 9.1%
    Leverage Ratio 9.7% 9.6% 9.4%
    Risk Based Capital - Tier I 12.2% 12.4% 12.2%
    Risk Based Capital - Total 14.6% 15.0% 14.9%
    Common Equity - Tier I 11.3% 11.5% 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,
    2021 2021 2020 2021 2020
    INCOME STATEMENT
    Interest income$73,530 $74,196$73,306 $293,838 $301,209
    Interest expense 3,276 3,551 5,814 15,297 32,938
    Net Interest Income 70,254 70,645 67,492 278,541 268,271
    Provision for credit losses (2,729) 330 7,680 (1,376) 56,718
    Net Interest Income after Provision for Credit Losses 72,983 70,315 59,812 279,917 211,553
    Net securities gains 23 16 70
    Trust income 2,771 3,118 2,327 11,111 9,101
    Service charges on deposit accounts 4,857 4,770 4,321 17,984 16,387
    Insurance and retail brokerage commissions 2,134 2,218 1,868 8,502 7,850
    Income from bank owned life insurance 1,487 1,486 1,589 6,433 6,552
    Gain on sale of mortgage loans 1,940 3,485 5,538 13,555 18,764
    Gain on sale of other loans and assets 1,849 2,480 1,676 8,130 4,827
    Card-related interchange income 7,069 7,052 6,377 27,954 23,966
    Derivative mark-to-market 973 218 (399) 2,344 (2,521)
    Swap fee income 828 317 724 2,543 1,588
    Other income 2,163 2,101 2,578 8,185 7,892
    Total Noninterest Income 26,071 27,245 26,622 106,757 94,476
    Salaries and employee benefits 31,422 31,066 31,388 119,506 118,961
    Net occupancy 3,972 3,960 3,668 16,586 17,647
    Furniture and equipment 3,776 4,052 3,925 15,642 15,393
    Data processing 2,933 3,196 2,739 12,373 10,543
    Pennsylvania shares tax 1,257 1,257 1,254 4,604 4,500
    Advertising and promotion 1,154 1,150 879 4,983 4,679
    Intangible amortization 900 868 897 3,497 3,689
    Other professional fees and services 1,351 1,308 1,131 4,501 3,886
    FDIC insurance 565 830 1,062 2,529 2,699
    Litigation and operational losses 700 589 373 2,324 1,411
    Loss on sale or write-down of assets 80 171 264 303 680
    COVID-19 related 92 50 307 449 874
    Voluntary early retirement 118 3,422
    Branch consolidation (121) 128 (103) 2,672
    Other operating expenses 7,347 6,530 6,419 26,663 24,770
    Total Noninterest Expense 55,428 55,027 54,552 213,857 215,826
    Income before Income Taxes 43,626 42,533 31,882 172,817 90,203
    Income tax provision 8,850 8,441 6,199 34,560 16,756
    Net Income$34,776 $34,092$25,683 $138,257 $73,447
    Shares Outstanding at End of Period 94,233,152 95,209,685 96,130,751 94,233,152 96,130,751
    Average Shares Outstanding Assuming Dilution 95,020,353 95,892,304 96,344,398 95,840,285 97,758,965
    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
    December 31, September 30, December 31,
    2021 2021 2020
    BALANCE SHEET (Period End)
    Assets
    Cash and due from banks$84,738 $94,579 $100,009
    Interest-bearing bank deposits 310,634 240,095 256,572
    Securities available for sale, at fair value 1,054,218 1,137,675 843,450
    Securities held to maturity, at amortized cost 541,311 548,057 361,844
    Loans held for sale 18,583 19,925 33,436
    Loans 6,839,230 6,732,580 6,761,183
    Allowance for credit losses (92,522) (94,185) (101,309)
    Net loans 6,746,708 6,638,395 6,659,874
    Goodwill and other intangibles 314,516 315,092 316,820
    Other assets 474,385 484,036 496,099
    Total Assets$9,545,093 $9,477,854 $9,068,104
    Liabilities and Shareholders' Equity
    Noninterest-bearing demand deposits$2,658,782 $2,656,229 $2,319,958
    Interest-bearing demand deposits 291,476 265,782 250,353
    Savings deposits 4,647,197 4,609,393 4,305,391
    Time deposits 385,043 405,081 562,964
    Total interest-bearing deposits 5,323,716 5,280,256 5,118,708
    Total deposits 7,982,498 7,936,485 7,438,666
    Short-term borrowings 138,315 117,754 117,373
    Long-term borrowings 182,269 182,519 233,255
    Total borrowings 320,584 300,273 350,628
    Other liabilities 132,639 128,241 210,193
    Shareholders' equity 1,109,372 1,112,855 1,068,617
    Total Liabilities and Shareholders' Equity$9,545,093 $9,477,854 $9,068,104
    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
    For the Three Months Ended For the Year Ended
    December 31,Yield/September 30,Yield/December 31,Yield/ December 31,Yield/December 31,Yield/
    2021Rate 2021Rate 2020Rate 2021Rate 2020Rate
    NET INTEREST MARGIN
    Assets
    Loans, excluding PPP loans (FTE)(1)(3)$6,680,3463.73%$6,538,4773.75%$6,387,1743.90% $6,464,4463.80%$6,354,7494.16%
    PPP Loans 111,54414.44% 225,26210.05% 548,2794.00% 312,7467.41% 382,5903.16%
    Securities and interest-bearing bank deposits (FTE) (1) 1,878,7551.46% 1,937,3851.43% 1,340,7561.62% 1,809,4171.46% 1,390,8041.89%
    Total Interest-Earning Assets (FTE) (1) 8,670,6453.38% 8,701,1243.39% 8,276,2093.54% 8,586,6093.43% 8,128,1433.72%
    Noninterest-earning assets 815,872 801,377 845,094 807,455 846,437
    Total Assets$9,486,517 $9,502,501 $9,121,303 $9,394,064 $8,974,580
    Liabilities and Shareholders' Equity
    Interest-bearing demand and savings deposits$4,882,3180.06%$4,899,3280.07%$4,603,2550.14% $4,812,0040.07%$4,552,2110.26%
    Time deposits 395,4440.31% 417,2740.36% 609,3501.05% 449,4520.49% 726,7021.40%
    Short-term borrowings 126,6950.07% 118,1120.06% 131,8060.10% 119,8010.08% 142,6340.49%
    Long-term borrowings 182,3714.91% 182,6234.92% 233,3524.37% 200,9614.70% 233,7014.39%
    Total Interest-Bearing Liabilities 5,586,8280.23% 5,617,3370.25% 5,577,7630.41% 5,582,2180.27% 5,655,2480.58%
    Noninterest-bearing deposits 2,652,812 2,647,089 2,313,009 2,580,460 2,101,412
    Other liabilities 130,373 124,286 152,396 130,007 140,612
    Shareholders' equity 1,116,504 1,113,789 1,078,135 1,101,379 1,077,308
    Total Noninterest-Bearing Funding Sources 3,899,689 3,885,164 3,543,540 3,811,846 3,319,332
    Total Liabilities and Shareholders' Equity$9,486,517 $9,502,501 $9,121,303 $9,394,064 $8,974,580
    Net Interest Margin (FTE) (annualized)(1) 3.23% 3.23% 3.26% 3.26% 3.32%
    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
    December 31,September 30,December 31,
    2021 2021 2020
    Loan Portfolio Detail
    Commercial Loan Portfolio:
    Commercial, financial, agricultural and other$1,102,154 $1,072,489 $1,077,132
    Paycheck Protection Program 71,298 152,102 478,854
    Commercial real estate 2,251,097 2,231,890 2,211,569
    Real estate construction 382,764 318,120 340,850
    Total Commercial 3,807,313 3,774,601 4,108,405
    Consumer Loan Portfolio:
    Closed-end mortgages 1,368,816 1,311,052 1,165,951
    Home equity lines of credit 551,434 564,323 584,641
    Real estate construction 111,692 105,896 86,371
    Total Real Estate - Consumer 2,031,942 1,981,271 1,836,963
    Auto loans 901,280 886,367 712,800
    Direct installment 40,937 32,509 36,165
    Personal lines of credit 52,809 52,667 61,072
    Student loans 4,949 5,165 5,778
    Total Other Consumer 999,975 976,708 815,815
    Total Consumer Portfolio 3,031,917 2,957,979 2,652,778
    Total Portfolio Loans 6,839,230 6,732,580 6,761,183
    Loans held for sale 18,583 19,925 33,436
    Total Loans$6,857,813 $6,752,505 $6,794,619
    December 31,September 30,December 31,
    2021 2021 2020
    ASSET QUALITY DETAIL
    Nonperforming Loans:
    Loans on nonaccrual basis$34,926 $14,466 $30,801
    Loans held for sale on a nonaccrual basis 13
    Troubled debt restructured loans on nonaccrual basis 13,134 16,210 14,740
    Troubled debt restructured loans on accrual basis 7,120 7,410 8,512
    Total Nonperforming Loans$55,180 $38,086 $54,066
    Other real estate owned ("OREO") 642 502 1,215
    Repossessions ("Repos") 397 453 613
    Total Nonperforming Assets$56,219 $39,041 $55,894
    Loans past due in excess of 90 days and still accruing 1,606 1,135 1,523
    Classified loans 77,563 58,780 76,179
    Criticized loans 198,126 195,791 302,813
    Nonperforming assets as a percentage of total loans, plus OREO and Repos (4) 0.82% 0.58% 0.83%
    Allowance for credit losses$92,522 $94,185 $101,309
    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
    For the Three Months Ended For the Year Ended
    December 31,September 30,December 31, December 31,December 31,
    2021 2021 2020 2021 2020
    Net Charge-offs (Recoveries):
    Commercial, financial, agricultural and other$(1,633)$1,960 $1,027 $4,590 $6,004
    Real estate construction (11) (146) (26)
    Commercial real estate (5) 12 2,364 1,524 4,627
    Residential real estate 20 (87) 5 (159) 626
    Loans to individuals 565 392 1,429 2,601 5,962
    Net Charge-offs$(1,064)$2,277 $4,825 $8,410 $17,193
    Net charge-offs as a percentage of average loans outstanding (annualized) (4) (0.06)% 0.13% 0.28% 0.12% 0.26%
    Net charge-offs as a percentage of average loans outstanding, excluding PPP loans (annualized) (4) (0.06)% 0.14% 0.30% 0.13% 0.27%
    Provision for credit losses as a percentage of net charge-offs 256.48% 14.49% 159.17% (16.36)% 329.89%
    Provision for credit losses$(2,729)$330 $7,680 $(1,376)$56,718
    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
    (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, unfunded commitment expense 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,
    2021 2021 2020 2021 2020
    Interest income$73,530$74,196$73,306 $293,838$301,209
    Adjustment to fully taxable equivalent basis (1) 266 235 333 1,100 1,462
    Interest income adjusted to fully taxable equivalent basis (non-GAAP) 73,796 74,431 73,639 294,938 302,671
    Interest expense 3,276 3,551 5,814 15,297 32,938
    Net interest income, (FTE) (1)$70,520$70,880$67,825 $279,641$269,733
    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 Year Ended
    December 31,September 30,December 31, December 31,December 31,
    2021 2021 2020 2021 2020
    Net Income$34,776 $34,092 $25,683 $138,257 $73,447
    Intangible amortization 900 868 897 3,497 3,689
    Tax benefit of amortization of intangibles (189) (182) (188) (734) (775)
    Net Income, adjusted for tax affected amortization of intangibles$35,487 $34,778 $26,392 $141,020 $76,361
    Average Tangible Equity:
    Total shareholders' equity$1,116,504 $1,113,789 $1,078,135 $1,101,379 $1,077,308
    Less: intangible assets 314,860 315,303 317,178 315,589 318,155
    Tangible Equity 801,644 798,486 760,957 785,790 759,153
    Less: preferred stock
    Tangible Common Equity$801,644 $798,486 $760,957 $785,790 $759,153
    (8)Return on Average Tangible Common Equity 17.56% 17.28% 13.80% 17.95% 10.06%
    For the Three Months Ended For the Year Ended
    December 31,September 30,December 31, December 31,December 31,
    2021 2021 2020 2021 2020
    Core Net Income:
    Total Net Income$34,776 $34,092 $25,683 $138,257 $73,447
    Net securities gains (23) (16) (70)
    Tax benefit of net securities gains 5 3 15
    COVID-19 related 92 50 307 449 874
    Tax benefit of COVID 19 related (19) (11) (64) (94) (184)
    Early retirement related 118 3,422
    Tax benefit of early retirement related expenses (25) (719)
    Branch consolidation related (121) 128 (103) 2,672
    Tax benefit of bank consolidation related expenses 25 (27) 22 (561)
    (5) Core net income$34,753 $34,131 $26,102 $138,518 $78,896
    Average Shares Outstanding Assuming Dilution 95,020,353 95,892,304 96,344,398 95,840,285 97,758,965
    (6) Core Earnings per common share (diluted)$0.37 $0.36 $0.27 $1.45 $0.81
    Intangible amortization 900 868 897 3,497 3,689
    Tax benefit of amortization of intangibles (189) (182) (188) (734) (775)
    Core Net Income, adjusted for tax affected amortization of intangibles$35,464 $34,817 $26,811 $141,281 $81,810
    (9) Core Return on Average Tangible Common Equity 17.55% 17.30% 14.02% 17.98% 10.78%
    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 Year Ended
    December 31,September 30,December 31, December 31,December 31,
    2021 2021 2020 2021 2020
    Core Return on Average Assets:
    Total Net Income$34,776 $34,092 $25,683 $138,257 $73,447
    Total Average Assets 9,486,517 9,502,501 9,121,303 9,394,064 8,974,580
    Return on Average Assets 1.45% 1.42% 1.12% 1.47% 0.82%
    Core Net Income (5)$34,753 $34,131 $26,102 $138,518 $78,896
    Total Average Assets 9,486,517 9,502,501 9,121,303 9,394,064 8,974,580
    (7) Core Return on Average Assets 1.45% 1.43% 1.14% 1.47% 0.88%
    For the Three Months Ended For the Year Ended
    December 31,September 30,December 31, December 31,December 31,
    2021 2021 2020 2021 2020
    Core Efficiency Ratio:
    Total Noninterest Expense$55,428 $55,027 $54,552 $213,857 $215,826
    Adjustments to Noninterest Expense:
    Unfunded commitment reserve (1,181)
    Intangible amortization 900 868 897 3,497 3,689
    COVID-19 related 92 50 307 449 874
    Early retirement related 118 3,422
    Branch consolidation related (121) 128 (103) 2,672
    Noninterest Expense - Core$54,557 $54,109 $53,102 $210,014 $206,350
    Net interest income, (FTE)$70,520 $70,880 $67,825 $279,641 $269,733
    Total noninterest income 26,071 27,245 26,622 106,757 94,476
    Net securities gains (23) (16) (70)
    Total Revenue 96,591 98,125 94,424 386,382 364,139
    Adjustments to Revenue:
    Derivative mark-to-market 973 218 (399) 2,344 (2,521)
    Total Revenue - Core$95,618 $97,907 $94,823 $384,038 $366,660
    (10)Core Efficiency Ratio 57.06% 55.27% 56.00% 54.69% 56.28%
    FIRST COMMONWEALTH FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands)
    DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
    December 31,September 30,December 31,
    2021 2021 2020
    Tangible Equity:
    Total shareholders' equity$1,109,372 $1,112,855 $1,068,617
    Less: intangible assets 314,516 315,092 316,820
    Tangible Equity 794,856 797,763 751,797
    Less: preferred stock
    Tangible Common Equity$794,856 $797,763 $751,797
    Tangible Assets:
    Total assets$9,545,093 $9,477,854 $9,068,104
    Less: intangible assets 314,516 315,092 316,820
    Tangible Assets$9,230,577 $9,162,762 $8,751,284
    Less: PPP loans 71,298 152,102 478,854
    Tangible Assets, excluding PPP loans$9,159,279 $9,010,660 $8,272,430
    (12)Tangible Common Equity as a percentage of Tangible Assets 8.61% 8.71% 8.59%
    (12)Tangible Common Equity as a percentage of Tangible Assets, excluding PPP loans 8.68% 8.85% 9.09%
    Shares Outstanding at End of Period 94,233,152 95,209,685 96,130,751
    (11)Tangible Book Value Per Common Share$8.43 $8.38 $7.82
    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.
    For the Three Months Ended For the Year Ended
    December 31,September 30,December 31, December 31,December 31,
    2021 2021 2020 2021 2020
    Pre-tax pre-provision income:
    Net interest income$70,254 $70,645$67,492 $278,541 $268,271
    Noninterest income 26,071 27,245 26,622 106,757 94,476
    Noninterest expense 55,428 55,027 54,552 213,857 215,826
    Pre-tax pre-provision income$40,897 $42,863$39,562 $171,441 $146,921
    Net securities gains $— $—($23) ($16)($70)
    COVID-19 related 92 50 307 449 874
    Voluntary early retirement 118 3,422
    Branch consolidation (121) 128 (103) 2,672
    Core pre-tax pre-provision income$40,868 $42,913$40,092 $171,771 $153,819
    Net charge-offs($1,064)$2,277$4,825 $8,410 $17,193
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