GlobeNewswire Inc | Apr 27, 2021 07:00AM EDT

April 27, 2021

INDIANA, Pa., April 27, 2021 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the first quarter of 2021.

Financial Summary

(dollars in thousands, For the Three Months Endedexcept per share data) March 31, December March 31, 31, 2021 2020 2020Reported Results Net income $39,770 $25,683 $4,727Diluted earnings per share $0.41 $0.27 $0.05Return on average assets 1.77 % 1.12 % 0.23 %Return on average equity 14.98 % 9.48 % 1.77 % Operating Results (non-GAAP)^(1) Core net income $39,855 $26,102 $4,730Core diluted earnings per share $0.41 $0.27 $0.05Core pre-tax pre-provision net revenue $45,046 $40,092 $36,730Provision expense ($4,390) $7,680 $30,967Net charge-offs $3,270 $4,825 $3,529Reserve build/(release)^(2) ($4,546) $13,002 $27,439Core return on average assets (ROAA) 1.77 % 1.14 % 0.23 %Core pre-tax pre-provision ROAA 2.00 % 1.75 % 1.77 %Return on average tangible common equity 21.58 % 13.80 % 2.92 %Core return on average tangible common 21.63 % 14.02 % 2.92 %equityCore efficiency ratio 53.18 % 56.00 % 58.19 %Net interest margin (FTE) 3.40 % 3.26 % 3.65 %

(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.

First Quarter 2021 Highlights

Financial results

-- Net income of $39.8 million and diluted earnings per share totaled $0.41, an increase of $14.1 million, or $0.14 per share from the previous quarter -- Pre-tax pre-provision net revenue (PPNR)(1) totaled $44.9 million, an increase of $5.4 million from the previous quarter and an increase of $8.2 million from the first quarter of 2020 PPNR ROAA of 2.00% increased by 27 basis points from the previous quarter -- The Company achieved positive operating leverage during the first quarter of 2021 Core revenue(1) grew $0.8 million, or 0.9% from the prior quarterCore noninterest expense(1) decreased $2.2 million, or 4.2%, from the prior quarter -- Net interest income (FTE) of $69.8 million increased $1.9 million from the previous quarter -- Noninterest income of $27.3 million (excluding net security gains) increased $0.8 million from the previous quarter -- Noninterest expense of $51.9 million decreased $2.7 million from the previous quarter -- Portfolio loans (excluding Paycheck Protection Program (PPP) loans) decreased $23.9 million from the previous quarter despite consumer loan growth, due in part to commercial loan payoffs -- Approximately $215.7 million of PPP loans were forgiven in the first quarter, offset by $215.3 million in new PPP loan production,resulting in the total PPP loan balance at March 31, 2021of $478.5 million, which was fairly consistent with the balance at December 31, 2020 of $478.9 million. -- Average deposits increased $20.4 million, or 1.1% annualized compared to the prior quarter despite $81.1 million in intentional time deposit runoff End of period deposits grew by $430.6 million from the end of the fourth quarterAverage noninterest-bearing deposits grew $100.9 million, or 17.4% annualized compared to the prior quarter -- Tangible book value per share grew 9.7% annualized compared to the prior quarter and 6.2% year-over-year -- First Commonwealth Bank has been recognized for the third consecutive year by Forbes as one of the Worlds Best Banks for 2021

Profitability

-- The core efficiency ratio(1) improved 282 basis points to 53.18% compared to the prior quarter -- The return on average assets (ROA) improved 65 basis points to 1.77% compared to the prior quarter -- Pre-tax pre-provision ROA(1) for the quarter ended March 31, 2021 was 2.00% as compared to 1.73% in the prior quarter and 1.77% in the prior year quarter -- The net interest margin of 3.40% increased 14 basis points compared to the prior quarter and decreased 25 basis points as compared to the prior year quarter

Strong capital and liquidity positions

-- On April 26, 2021, the Board of Directors authorized a 4.5% increase in the quarterly cash dividend to shareholders -- Bank-level Tier 1 Capital ratio of 12.00%, which represents $271.0 million in excess capital above the regulatory well capitalized requirement of 8.0% -- Total available liquidity of $4.5 billion -- On January 26, 2021, the Company announced that its Board of Directors authorized a new $25.0 million share repurchase program of the Companys common stock. A total of 28,012 shares were purchased under this program during the first quarter of 2021 for a weighted average price of $13.99per share.

Asset quality

-- The provision for credit losses was $(4.4) million, a decrease of $12.1 million from the previous quarter -- Reserve build/(release)(2) totaled $(4.5) million, bringing reserves to total loans (excluding PPP) down to 1.55% from 1.61% last quarter -- Nonaccrual loans of $43.7 million decreased $1.9 million from the previous quarter -- Net charge-offs on loans totaled $3.3 million, a decrease of $1.5 million from the previous quarter Net charge-offs as a percentage of average loans outstanding (annualized) was 0.20% in the first quarter of 2021, down from 0.28% last quarter

While the reserve release is certainly a positive reflection of our asset quality trends and the improved macroeconomic environment, the trajectory of our fundamental operating performance is even more encouraging, stated T. Michael Price, President and Chief Executive Officer. Our consumer loans are growing, our commercial pipelines have started to build and our fee generating businesses all had another solid quarter. At the same time, the team helped 2,500 small and mid-sized businesses secure roughly $255 million in PPP funding during the quarter. Price continued, Last week, Forbes released their list of the Worlds Best Banks for 2021. For the third year in a row, First Commonwealth is proud to be one of 75 banks from the United States receiving this distinction. This recognition gives us even more confidence that our Company is well-positioned to reward all of our stakeholders.

Earnings

Net income for the first quarter of 2021 was $39.8 million, or $0.41 per share, compared to $25.7 million, or $0.27 per share in the fourth quarter of 2020 and $4.7 million, or $0.05 per share for the first quarter of 2020.

Net Interest Income and Net Interest Margin

Net interest income (FTE) of $69.8 million increased $1.9 million from the previous quarter and $1.6 million from the prior year quarter. The increase from the prior quarter was primarily due to a $2.4 million increase in fees and interest on PPP loans and a $189.4 million increase in average investment securities, partially offset by an $81.1 million decrease in higher cost time deposits. Interest and fee income recognized on PPP loans totaled $7.9 million in the first quarter as compared to $5.5 million in the prior quarter.

The net interest margin for the first quarter of 2021 was 3.40%, an increase of 14 basis points from the previous quarter and a decrease of 25 basis points from the first quarter of 2021. The increase from the fourth quarter of 2020 was due primarily to a 258 basis point increase in the yield on PPP loans (inclusive of loan forgiveness) and a six basis point decrease in the cost of deposits, partially offset by a 1 basis point increase in the yield on loans.

Total average deposits grew $20.4 million in the first quarter of 2021 as compared to the previous quarter. Balance sheet management strategies that reduced deposits by the end of the fourth quarter were offset by deposit growth in the first quarter of $430.6 million. Average noninterest bearing deposits grew $100.9 million and offset an $81.1 million decrease in average time deposits.

Asset Quality

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

Provision expense in the first quarter of 2021 totaled $(4.4) million, a decrease of $12.1 million from the previous quarter. The provision expense in the fourth quarter 2020 included $3.2 million for unfunded commitments as a result of the adoption of CECL and use of life-of-loan loss rates.

At March 31, 2021, nonperforming loans totaled $50.4 million, a decrease of $3.7 million from the previous quarter and a decrease of $8.8 million from the previous year quarter. Nonperforming loans represented 0.80% of total loans (excluding PPP) as of March 31, 2021, down from 0.86% and 0.93% for the periods ended December 31, 2020 and March 31, 2020, respectively.

At March 31, 2021, criticized loans totaled $272.1 million, a decrease of $30.7 million from the previous quarter.

During the first quarter of 2021, net charge-offs were $3.3 million, compared to $4.8 million in the prior quarter and $3.5 million in the first quarter of 2020. Net charge-offs were 0.20%, 0.28% and 0.23% of average loans for the periods ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Noninterest Income and Noninterest Expense

Noninterest income totaled $27.3 million for the first quarter of 2021, as compared to $26.6 million for the fourth quarter of 2020 and $19.3 million for the first quarter of 2020 (excluding net securities gains). There were no material securities gains during the current or comparable quarters.

The $0.8 million increase from the previous quarter was primarily due to a $1.8 million increase in the derivative mark-to-market adjustment on interest rate swaps as a result of changes in fair value due to movement in bond spreads, swap rates and counterparty credit risk. This increase was partially offset by a $0.6 million decrease in fee income related to new interest rate swaps due to lower commercial demand. Income from mortgage gain on sale improved by $0.4 million over the prior quarter but was offset by a $0.9 million negative interest rate hedge adjustment.

Noninterest expense (excluding branch consolidation, early retirement and COVID-19 related expenses) totaled $51.7 million for the first quarter of 2021, as compared to $54.0 million for the fourth quarter of 2020 and $50.2 million for the first quarter of 2020. The $2.3 million decrease from the previous quarter was primarily the result of a $2.7 million decrease in salaries and benefits due to a $1.0 million seasonal decrease in hospitalization expense, a $0.7 million decrease in incentive expense and an increase of $0.5 million in deferred expense related to PPP originations. The decrease from the previous quarter was partially offset by a $1.1 million increase in occupancy expense due to seasonal snow removal expense and maintenance.

The core efficiency ratio was 53.18% during the first quarter of 2021 as compared to 56.00% in the previous quarter and 58.19% in the first quarter of 2020.

Full time equivalent staff was 1,387 at March 31, 2021, 1,389 at December 31, 2020, and 1,510 at March 31, 2020. The decrease from the prior year quarter is the result of a company-wide hiring freeze implemented at the end of the first quarter of 2020 and the consolidation of 20% of the banks branch facilities in the fourth quarter of 2020.

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 previous quarter. The cash dividend is payable on May 21, 2021 to shareholders of record as of May 7, 2021. This dividend represents a 3.2% projected annual yield utilizing the April 26, 2021 closing market price of $14.34.

First Commonwealths capital ratios for Total, Tier I, Leverage and Common Equity Tier I at March 31, 2021 were 15.3%, 12.6%, 9.7% and 11.6% respectively. First Commonwealths current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the first quarter of 2021 on Wednesday, April 28, 2021 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-833-302-1887 conference ID # 4592861 or through the companys 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 1-800-585-8367 and entering the conference ID # 4592861. A link to the webcast replay will also be accessible on the companys web.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services Company with 119 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, 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 Commonwealths 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 Commonwealths borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealths ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealths 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 Commonwealths 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

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 March 31, December March 31, 31, 2021 2020 2020SUMMARY RESULTS OF OPERATIONS Net interest income $ 69,442 $ 67,492 $ 67,724 Provision for credit losses (4,390 ) 7,680 30,967 Noninterest income 27,355 26,622 19,273 Noninterest expense 51,859 54,552 50,271 Net income 39,770 25,683 4,727 Core net income ^(5) 39,855 26,102 4,730 Earnings per common share $ 0.41 $ 0.27 $ 0.05 (diluted)Core earnings per common share $ 0.41 $ 0.27 $ 0.05 (diluted) ^(6)KEY FINANCIAL RATIOS Return on average assets 1.77 % 1.12 % 0.23 %Core return on average assets ^(7) 1.77 % 1.14 % 0.23 %Return on average assets, 2.00 % 1.73 % 1.77 %pre-provision, pre-taxCore return on average assets, 2.00 % 1.75 % 1.77 %pre-provision, pre-taxReturn on average shareholders' 14.98 % 9.48 % 1.77 %equityReturn on average tangible common 21.58 % 13.80 % 2.92 %equity^ (8)Core return on average tangible 21.63 % 14.02 % 2.92 %common equity^ (9)Core efficiency ratio ^(2)(10) 53.18 % 56.00 % 58.19 %Net interest margin (FTE) ^(1) 3.40 % 3.26 % 3.65 % Book value per common share $ 11.30 $ 11.12 $ 10.79 Tangible book value per common 8.01 7.82 7.54 share ^(11)Market value per common share 14.37 10.94 9.14 Cash dividends declared per common 0.11 0.11 0.11 shareASSET QUALITY RATIOS Nonperforming loans as a percent 0.75 % 0.80 % 0.93 %of end-of-period loans^ (3)Nonperforming loans as a percentof end-of-period loans, excluding 0.80 % 0.86 % 0.93 %PPP loans^ (3)Nonperforming assets as a percent 0.55 % 0.62 % 0.74 %of total assets ^(3)Nonperforming assets as a percentof total assets, excluding PPP 0.58 % 0.65 % 0.74 %loans ^(3)Net charge-offs as a percent of 0.20 % 0.28 % 0.23 %average loans (annualized) ^(4)Net charge-offs as a percent ofaverage loans, excluding PPP loans 0.21 % 0.30 % 0.23 %(annualized) ^(4)Allowance for credit losses as apercent of nonperforming loans ^ 192.06 % 187.43 % 133.71 %(4)Allowance for credit losses as apercent of end-of-period loans ^ 1.44 % 1.50 % 1.25 %(4)Allowance for credit losses as apercent of end-of-period loans, 1.55 % 1.61 % 1.25 %excluding PPP loans ^(4)CAPITAL RATIOS Shareholders' equity as a percent 11.5 % 11.8 % 12.4 %of total assetsTangible common equity as a 8.5 % 8.6 % 9.0 %percent of tangible assets ^(12)Tangible common equity as apercent of tangible assets, 8.9 % 9.1 % 9.0 %excluding PPP loans ^(12)Leverage Ratio 9.7 % 9.4 % 9.9 %Risk Based Capital - Tier I 12.6 % 12.2 % 11.6 %Risk Based Capital - Total 15.3 % 14.9 % 14.2 %Common Equity - Tier I 11.6 % 11.2 % 10.5 %

FIRST COMMONWEALTH FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data) For the Three Months Ended March 31, December 31, March 31, 2021 2020 2020INCOME STATEMENT Interest income $ 74,061 $ 73,306 $ 79,329 Interest expense 4,619 5,814 11,605 Net Interest Income 69,442 67,492 67,724 Provision for credit losses (4,390 ) 7,680 30,967 Net Interest Income after Provision for 73,832 59,812 36,757 Credit LossesNet securities gains 6 23 19 Trust income 2,516 2,327 2,111 Service charges on deposit accounts 4,047 4,321 4,745 Insurance and retail brokerage 2,172 1,868 1,995 commissionsIncome from bank owned life insurance 1,951 1,589 1,616 Gain on sale of mortgage loans 5,046 5,538 2,546 Gain on sale of other loans and assets 1,690 1,676 699 Card-related interchange income 6,427 6,377 5,262 Derivative mark-to-market 1,430 (399 ) (1,741 )Swap fee income 146 724 214 Other income 1,924 2,578 1,807 Total Noninterest Income 27,355 26,622 19,273 Salaries and employee benefits 28,671 31,388 29,977 Net occupancy 4,773 3,668 4,973 Furniture and equipment 3,948 3,925 3,778 Data processing 3,052 2,739 2,467 Pennsylvania shares tax 832 1,254 738 Advertising and promotion 1,324 879 1,150 Contributions 731 439 472 Intangible amortization 866 897 934 Other professional fees and services 751 1,131 898 FDIC insurance 696 1,062 28 Litigation and operational losses 479 373 390 Loss on sale or write-down of assets 9 264 213 COVID-19 related 74 307 23 Voluntary early retirement ? 118 ? Branch consolidation 40 128 ? Other operating expenses 5,613 5,980 4,230 Total Noninterest Expense 51,859 54,552 50,271 Income before Income Taxes 49,328 31,882 5,759 Income tax provision 9,558 6,199 1,032 Net Income $ 39,770 $ 25,683 $ 4,727 Shares Outstanding at End of Period 96,248,476 96,130,751 98,015,396 Average Shares Outstanding Assuming 96,233,647 96,344,398 98,361,494 Dilution

FIRST COMMONWEALTH FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands) March 31, December 31, March 31, 2021 2020 2020BALANCE SHEET (Period End) Assets Cash and due from banks $ 83,989 $ 100,009 $ 118,413 Interest-bearing bank 420,645 256,572 15,762 depositsSecurities available for 1,056,703 843,450 992,041 sale, at fair valueSecurities held to maturity, 407,833 361,844 318,256 at amortized costLoans held for sale 20,604 33,436 25,783 Loans 6,736,894 6,761,183 6,313,944 Allowance for credit losses (96,763 ) (101,309 ) (79,075 )Net loans 6,640,131 6,659,874 6,234,869 Goodwill and other 316,148 316,820 318,891 intangiblesOther assets 470,936 496,099 491,090 Total Assets $ 9,416,989 $ 9,068,104 $ 8,515,105 Liabilities and Shareholders' EquityNoninterest-bearing demand $ 2,616,303 $ 2,319,958 $ 1,751,524 deposits Interest-bearing demand 267,571 250,353 326,122 depositsSavings deposits 4,501,456 4,305,391 4,034,759 Time deposits 483,926 562,964 810,683 Total interest-bearing 5,252,953 5,118,708 5,171,564 deposits Total deposits 7,869,256 7,438,666 6,923,088 Short-term borrowings 110,762 117,373 146,971 Long-term borrowings 233,012 233,255 233,955 Total borrowings 343,774 350,628 380,926 Other liabilities 116,479 210,193 153,167 Shareholders' equity 1,087,480 1,068,617 1,057,924 Total Liabilities and $ 9,416,989 $ 9,068,104 $ 8,515,105 Shareholders' Equity

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands)

For the Three Months Ended March 31, Yield/ December 31, Yield/ March 31, Yield/ 2021 Rate 2020 Rate 2020 RateNET INTEREST MARGIN Assets Loans, excludingPPP loans (FTE)^(1) $ 6,292,076 3.91 % $ 6,387,174 3.90 % $ 6,255,825 4.63 %(3)PPP Loans 489,375 6.58 % 548,279 4.00 % ? ? %Securities andinterest-bearing 1,530,107 1.54 % 1,340,756 1.62 % 1,255,699 2.46 %bank deposits (FTE)^(1)TotalInterest-Earning 8,311,558 3.63 % 8,276,209 3.54 % 7,511,524 4.27 %Assets (FTE) ^(1)Noninterest-earning 818,896 845,094 825,797 assetsTotal Assets $ 9,130,454 $ 9,121,303 $ 8,337,321 Liabilities andShareholders' EquityInterest-bearingdemand and savings $ 4,603,822 0.10 % $ 4,603,255 0.14 % $ 4,215,323 0.48 %depositsTime deposits 528,265 0.75 % 609,350 1.05 % 825,966 1.65 %Short-term 119,369 0.11 % 131,806 0.10 % 202,314 1.17 %borrowingsLong-term 233,113 4.41 % 233,352 4.37 % 234,050 4.41 %borrowingsTotalInterest-Bearing 5,484,569 0.34 % 5,577,763 0.41 % 5,477,653 0.85 %LiabilitiesNoninterest-bearing 2,413,887 2,313,009 1,676,362 depositsOther liabilities 155,443 152,396 111,988 Shareholders' 1,076,555 1,078,135 1,071,318 equityTotalNoninterest-Bearing 3,645,885 3,543,540 2,859,668 Funding SourcesTotal Liabilitiesand Shareholders' $ 9,130,454 $ 9,121,303 $ 8,337,321 Equity Net Interest Margin(FTE) (annualized)^ 3.40 % 3.26 % 3.65 %(1)

FIRST COMMONWEALTH FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands) March 31, December 31, March 31, 2021 2020 2020Loan Portfolio Detail Commercial Loan Portfolio: Commercial, financial, $ 1,077,218 $ 1,077,132 $ 1,272,240 agricultural and otherPaycheck Protection Program 478,453 478,854 ? Commercial real estate 2,167,506 2,211,569 2,190,098 Real estate construction 316,207 340,850 332,814 Total Commercial 4,039,384 4,108,405 3,795,152 Consumer Loan Portfolio: Closed-end mortgages 1,178,640 1,165,951 1,103,281 Home equity lines of credit 577,975 584,641 587,859 Real estate construction 88,373 86,371 80,644 Total Real Estate - Consumer 1,844,988 1,836,963 1,771,784 Auto loans 759,061 712,800 626,256 Direct installment 32,143 36,165 46,029 Personal lines of credit 55,719 61,072 68,240 Student loans 5,599 5,778 6,483 Total Other Consumer 852,522 815,815 747,008 Total Consumer Portfolio 2,697,510 2,652,778 2,518,792 Total Portfolio Loans 6,736,894 6,761,183 6,313,944 Loans held for sale 20,604 33,436 25,783 Total Loans $ 6,757,498 $ 6,794,619 $ 6,339,727 March 31, December 31, March 31, 2021 2020 2020ASSET QUALITY DETAIL Nonperforming Loans: Loans on nonaccrual basis $ 23,056 $ 30,801 $ 46,109 Loans held for sale on a ? 13 ? nonaccrual basisTroubled debt restructured loans 20,628 14,740 5,522 on nonaccrual basisTroubled debt restructured loans 6,697 8,512 7,509 on accrual basisTotal Nonperforming Loans $ 50,381 $ 54,066 $ 59,140 Other real estate owned ("OREO") 916 1,215 2,697 Repossessions ("Repos") 833 613 836 Total Nonperforming Assets $ 52,130 $ 55,894 $ 62,673 Loans past due in excess of 90 1,079 1,523 1,427 days and still accruingClassified loans 72,026 76,179 90,233 Criticized loans 272,143 302,813 117,535 Nonperforming assets as apercentage of total loans, plus 0.77 % 0.83 % 0.99 %OREO and Repos^ (4)Allowance for credit losses $ 96,763 $ 101,309 $ 79,075

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands)

For the Three Months Ended March 31, December March 31, 31, 2021 2020 2020Net Charge-offs (Recoveries): Commercial, financial, agricultural and other $ 479 $ 1,027 $ 405 Real estate construction ? ? ? Commercial real estate 1,511 2,364 222 Residential real estate 68 5 502 Loans to individuals 1,212 1,429 2,400 Net Charge-offs $ 3,270 $ 4,825 $ 3,529 Net charge-offs as a percentage of average 0.20 % 0.28 % 0.23 %loans outstanding (annualized) ^(4)Net charge-offs as a percentage of averageloans outstanding, excluding PPP loans 0.21 % 0.30 % 0.23 %(annualized) ^(4)Provision for credit losses as a percentage (134.25 ) % 159.17 % 877.50 %of net charge-offsProvision for credit losses $ (4,390 ) $ 7,680 $ 30,967

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 derivativemark-to-market and excludes from "total noninterest expense" the amortizationof intangibles, unfunded commitment expense and any other unusual items deemedby management to not be related to normal operations, such as merger,acquisition and severance costs.^(3) Includes held for sale loans.^(4) Excludes held for sale loans. For the Three Months Ended March 31, December 31, March 31, 2021 2020 2020 Interest income $ 74,061 $ 73,306 $ 79,329 Adjustment to fully taxable 309 333 397 equivalent basis ^(1)Interest income adjusted to fully 74,370 73,639 79,726 taxable equivalent basis (non-GAAP)Interest expense 4,619 5,814 11,605 Net interest income, (FTE) $ 69,751 $ 67,825 $ 68,121

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands, except per share data)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES For the Three Months Ended March 31, December 31, March 31, 2021 2020 2020 Net Income $ 39,770 $ 25,683 $ 4,727 Intangible amortization 866 897 934 Tax benefit of amortization of (182 ) (188 ) (196 ) intangiblesNet Income, adjusted for taxaffected amortization of $ 40,454 $ 26,392 $ 5,465 intangibles Average Tangible Equity: Total shareholders' equity $ 1,076,555 $ 1,078,135 $ 1,071,318 Less: intangible assets 316,438 317,178 319,269 Tangible Equity 760,117 760,957 752,049 Less: preferred stock ? ? ? Tangible Common Equity $ 760,117 $ 760,957 $ 752,049 ^(8)Return on Average Tangible 21.58 % 13.80 % 2.92 %Common Equity

For the Three Months Ended March 31, December 31, March 31, 2021 2020 2020 Core Net Income: Total Net Income $ 39,770 $ 25,683 $ 4,727 Net securities gains (6 ) (23 ) (19 ) Tax benefit of net securities gains 1 5 4 COVID-19 related 74 307 23 Tax benefit of COVID 19 related (16 ) (64 ) (5 ) Early retirement related ? 118 ? Tax benefit of early retirement related ? (25 ) ? expensesBranch consolidation related 40 128 ? Tax benefit of bank consolidation (8 ) (27 ) ? related expenses^(5) Core net income $ 39,855 $ 26,102 $ 4,730 Average Shares Outstanding Assuming 96,233,647 96,344,398 98,361,494 Dilution^(6) Core Earnings per common share $ 0.41 $ 0.27 $ 0.05 (diluted) Intangible amortization 866 897 934 Tax benefit of amortization of (182 ) (188 ) (196 ) intangiblesCore Net Income, adjusted for tax $ 40,539 $ 26,811 $ 5,468 affected amortization of intangibles ^(9) Core Return on Average Tangible 21.63 % 14.02 % 2.92 %Common Equity

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands, except per share data)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES

For the Three Months Ended March 31, December 31, March 31, 2021 2020 2020Core Return on Average Assets: Total Net Income $ 39,770 $ 25,683 $ 4,727 Total Average Assets 9,130,454 9,121,303 8,337,321 Return on Average Assets 1.77 % 1.12 % 0.23 % Core Net Income ^(5) $ 39,855 $ 26,102 $ 4,730 Total Average Assets 9,130,454 9,121,303 8,337,321 ^(7) Core Return on Average Assets 1.77 % 1.14 % 0.23 %

For the Three Months Ended March 31, December 31, March 31, 2021 2020 2020Core Efficiency Ratio: Total Noninterest Expense $ 51,859 $ 54,552 $ 50,271 Adjustments to Noninterest Expense: Unfunded commitment reserve ? ? (2,539 ) Intangible amortization 866 897 934 COVID-19 related 74 307 23 Early retirement related ? 118 ? Branch consolidation related 40 128 ? Noninterest Expense - Core $ 50,879 $ 53,102 $ 51,853 Net interest income, (FTE) $ 69,751 $ 67,825 $ 68,121 Total noninterest income 27,355 26,622 19,273 Net securities gains (6 ) (23 ) (19 ) Total Revenue 97,100 94,424 87,375 Adjustments to Revenue: Derivative mark-to-market 1,430 (399 ) (1,741 ) Total Revenue - Core $ 95,670 $ 94,823 $ 89,116 ^(10)Core Efficiency Ratio 53.18 % 56.00 % 58.19 %

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES March 31, December 31, March 31, 2021 2020 2020Tangible Equity: Total shareholders' equity $ 1,087,480 $ 1,068,617 $ 1,057,924 Less: intangible assets 316,148 316,820 318,891 Tangible Equity 771,332 751,797 739,033 Less: preferred stock ? ? ? Tangible Common Equity $ 771,332 $ 751,797 $ 739,033 Tangible Assets: Total assets $ 9,416,989 $ 9,068,104 $ 8,515,105 Less: intangible assets 316,148 316,820 318,891 Tangible Assets $ 9,100,841 $ 8,751,284 $ 8,196,214 Less: PPP loans 478,453 478,854 ? Tangible Assets, excluding PPP $ 8,622,388 $ 8,272,430 $ 8,196,214 loans ^(12)Tangible Common Equity as a 8.48 % 8.59 % 9.02 %percentage of Tangible Assets^(12)Tangible Common Equity as apercentage of Tangible Assets, 8.95 % 9.09 % 9.02 %excluding PPP loans Shares Outstanding at End of 96,248,476 96,130,751 98,015,396 Period^(11)Tangible Book Value Per $ 8.01 $ 7.82 $ 7.54 Common Share Note: Management believes that it is standard practice in the banking industryto present these non-GAAP measures. These measures provide useful informationto management and investors by allowing them to make peer comparisons.

For the Three Months Ended March 31, December 31, March 31, 2021 2020 2020 Pre-tax pre-provision income: Net interest income $69,442 $67,492 $67,724 Noninterest income 27,355 26,622 19,273 Noninterest expense 51,859 54,552 50,271 Pre-tax pre-provision income $44,938 $39,562 $36,726 Net securities gains ($6 ) ($23 ) ($19 )COVID-19 related 74 307 23 Voluntary early retirement ? 118 ? Branch consolidation 40 128 ? Core pre-tax pre-provision income $45,046 $40,092 $36,730 Net charge-offs $3,270 $4,825 $3,529