GlobeNewswire Inc | Jul 27, 2021 05:00PM EDT

July 27, 2021

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

Financial Summary

(dollars in For the Three Months Ended For the Six Months Endedthousands,except per June 30, March 31, June 30, June 30, June 30,share data) 2021 2021 2020 2021 2020 Reported ResultsNet income $29,619 $39,770 $23,851 $69,389 $28,578 Dilutedearnings per $0.31 $0.41 $0.24 $0.72 $0.29 shareReturn onaverage 1.26% 1.77% 1.06% 1.51% 0.66% assetsReturn onaverage 10.82% 14.98% 8.95% 12.87% 5.36% equity OperatingResults (non-GAAP)^(1)Core net $29,777 $39,855 $24,176 $69,632 $28,906 incomeCore dilutedearnings per $0.31 $0.41 $0.25 $0.72 $0.29 shareCore pre-taxpre-provision $42,943 $45,046 $36,153 $87,989 $72,883 net revenueProvision $5,413 ($4,390) $6,859 $1,023 $37,826 expenseNet $3,927 $3,270 $4,493 $7,197 $8,022 charge-offsReserve build/(release)^ $275 ($4,546) $2,366 ($4,271) $29,804 (2)Core returnon average 1.26% 1.77% 1.08% 1.51% 0.67% assets (ROAA)Core pre-taxpre-provision 1.82% 2.00% 1.61% 1.91% 1.69% ROAAReturn onaverage 15.54% 21.58% 13.13% 18.50% 8.03% tangiblecommon equityCore returnon average 15.62% 21.63% 13.30% 18.56% 8.12% tangiblecommon equityCoreefficiency 53.21% 53.18% 56.73% 53.20% 57.46% ratioNet interest 3.17% 3.40% 3.29% 3.29% 3.46% margin (FTE)

(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.

Second Quarter 2021 Highlights

-- Net income of $29.6 million and diluted earnings per share totaled $0.31, an increase of $5.8 million, or $0.07 per share from the second quarter of 2020 -- Core pre-tax pre-provision net revenue (PPNR)(1) totaled $42.9 million, a decrease of $2.1 million from the previous quarter and an increase of $6.8 million from the second quarter of 2020 -- The Company achieved positive operating leverage during the first six months of 2021 Core revenue(1) grew $12.3 million, or 6.9%, from the prior yearCore noninterest expense(1) decreased $1.0 million, or 1.0%, from the prior year -- Portfolio loans (excluding Paycheck Protection Program (PPP) loans) increased $189.7 million, or 12.1% annualized from the previous quarter, driven by strong commercial production and continued consumer loan growth Year-to-date annualized portfolio loan growth (excluding PPP loans) was 5.3%Average loans (excluding PPP loans) increased $49.7 million, or 3.2% annualized, from the previous quarter -- Net interest income (FTE) of $68.5 million decreased $1.3 million from the previous quarter due to lower interest and fees recognized on PPP loans, but increased $1.4 million from the second quarter of 2020 -- Noninterest income of $26.1 million (excluding net security gains) decreased $1.2 million from the previous quarter but increased $4.3 million from the second quarter of 2020 -- Noninterest expense of $51.5 million decreased $0.3 million from the previous quarter and decreased $1.2 million from the second quarter of 2020 -- Total PPP loans decreased $186.1 million from the previous quarter resulting in the total PPP loan balance at June 30, 2021 of $292.4 million -- Average deposits increased $375.9 million, or 19.9% annualized compared to the prior quarter, despite $69.6 million in intentional time deposit runoff End of period deposits grew $15.8 million from the previous quarterAverage noninterest-bearing deposits grew $190.8 million, or 31.6% annualized, compared to the prior quarter -- Tangible book value per share grew 10.4% annualized compared to the prior quarter and 6.5% year-over-year -- First Commonwealth Bank (the Bank) has been recognized for the third consecutive year by Forbes as one of the Worlds Best Banks for 2021 -- On June 14, 2021, the Bank announced it will enter the equipment leasing and finance business with the addition of Rob Boyer to its executive team as President of First Commonwealth Equipment Finance Group

Profitability

-- The core efficiency ratio(1) of 53.21% improved 352 basis points from the second quarter of 2020 and was relatively unchanged from the previous quarter -- The return on average assets (ROA) improved 20 basis points to 1.26% compared to the second quarter of 2020 -- Core pre-tax pre-provision ROA(1) for the quarter ended June 30, 2021 was 1.82% as compared to 2.00% in the prior quarter and 1.61% in the second quarter of 2020 -- The net interest margin of 3.17% decreased 23 basis points compared to the prior quarter and decreased 12 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 11.9%, which represents $273.0 million in excess capital above the regulatory well capitalized requirement of 8.0% -- Total available liquidity of $4.7 billion -- A total of 72,724 shares at a weighted average price of $13.95 were purchased during the second quarter of 2021 under the companys previously authorized share repurchase program. The remaining repurchase capacity under the current program was $23.6 million as of June 30, 2021

Asset quality

-- The provision for credit losses was $5.4 million, an increase of $9.8 million compared to the previous quarter when the provision for credit losses was ($4.4) million -- The allowance for credit losses as a percentage of end-of-period loans (excluding PPP loans) was 1.50% compared to 1.55% in the previous quarter -- Total criticized loans decreased $21.7 million from the previous quarter Total nonperforming assets increased $1.4 million from the previous quarter -- Net charge-offs on loans totaled $3.9 million, an increase of $0.7 million from the previous quarter Net charge-offs as a percentage of average loans outstanding (excluding PPP loans, annualized) was 0.25% in the second quarter of 2021 as compared to 0.21% in the previous quarter

I am pleased with our results in the second quarter. As expected, our loan growth accelerated in multiple categories during the second quarter, bringing our year-to-date annualized loan growth to 5.3% excluding PPP, well within our mid-single-digit long-term target, stated T. Michael Price, President and Chief Executive Officer. We remain committed to achieving positive operating leverage despite revenue headwinds from net interest margin compression. Our track record of controlling expenses continued in the second quarter even while we continued to make investments to drive future growth. In June, we announced our entry into the equipment finance business through the hiring of Rob Boyer. Through Robs leadership, this new vertical will further diversify our earnings stream, and will benefit both our commercial customers and our shareholders in the long-run.

Earnings

Net income for the second quarter of 2021 was $29.6 million, or $0.31 per share, compared to $39.8 million, or $0.41 per share in the first quarter of 2021 and $23.9 million, or $0.24 per share for the second quarter of 2020.

Net Interest Income and Net Interest Margin

Net interest income (FTE) of $68.5 million decreased $1.3 million from the previous quarter and increased $1.4 million from the prior year quarter. The decrease from the previous quarter was primarily due to a $2.4 million decrease in fees and interest on PPP loans, partially offset by the effects of a $356.1 million increase in average investment securities and a $69.6 million decrease in higher-cost time deposits. Interest and fee income recognized on PPP loans totaled $5.5 million in the second quarter of 2021 as compared to $7.9 million in the prior quarter.

The net interest margin for the second quarter of 2021 was 3.17%, a decrease of 23 basis points from the previous quarter and a decrease of 12 basis points from the second quarter of 2020. The decrease from the previous quarter was due primarily to an 11 basis point decrease in the yield on loans (excluding PPP loans) and a 147 basis point decrease in the yield on PPP loans (inclusive of loan forgiveness), partially offset by a seven basis point decrease in the cost of interest-bearing liabilities.

Total average deposits grew $375.9 million in the second quarter of 2021 as compared to the previous quarter. Average noninterest bearing deposits grew $190.8 million and offset a $69.6 million decrease in average time deposits.

Total end-of-period deposits grew $15.8 million from the previous quarter.

Asset Quality

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

Provision expense in the second quarter of 2021 totaled $5.4 million as compared to ($4.4) million in the previous quarter. The provision expense during the quarter was a reflection of an improved economic forecast offset by strong end-of-period loan growth and a $1.2 million increase in unfunded commitment reserves.

At June 30, 2021, nonperforming loans totaled $52.8 million, an increase of $2.4 million from the previous quarter and a decrease of $3.2 million from the second quarter of 2020. Nonperforming loans represented 0.82% of total loans (excluding PPP loans) as compared to 0.80% and 0.88% for the periods ended March 31, 2021 and June 30, 2020, respectively.

At June 30, 2021, criticized loans totaled $250.4 million, a decrease of $21.7 million from the previous quarter.

During the second quarter of 2021, net charge-offs were $3.9 million as compared to $3.3 million in the previous quarter and $4.5 million in the second quarter of 2020. Net charge-offs in the second quarter of 2021 were negatively impacted by a $3.6 million charge-off related to an individual commercial borrower.

Net charge-offs as a percentage of average loans (excluding PPP, annualized) were 0.25%, 0.21% and 0.28% for the periods ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

Noninterest Income and Noninterest Expense

Noninterest income (excluding net security gains) totaled $26.1 million for the second quarter of 2021, as compared to $27.3 million for the first quarter of 2021 and $21.8 million for the second quarter of 2020.

The $1.2 million decrease from the previous quarter was primarily due to a $2.0 million decrease in gain on sale of mortgage loans due to an increase in new mortgage originations being retained in the Banks loan portfolio and a $1.7 million decrease 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, which negatively impacted noninterest income. These decreases were partially offset by a $1.1 million increase in fee income related to new interest rate swaps due to increased commercial demand and a $1.0 million increase in card-related interchange income.

Noninterest expense (excluding branch consolidation, early retirement and COVID-19 related expenses) totaled $51.3 million for the second quarter of 2021, as compared to $51.7 million for the first quarter of 2021 and $52.3 million for the second quarter of 2020. The $0.4 million decrease from the previous quarter was primarily the result of a $0.9 million decrease in occupancy expense due to seasonally higher snow removal in the previous quarter and a $0.5 million decrease in contributions, partially offset by a $0.7 million increase in hospitalization expense and a $0.4 million increase in Pennsylvania shares tax.

The core efficiency ratio was 53.21% during the second quarter of 2021 as compared to 53.18% in the previous quarter and 56.73% in the second quarter of 2020.

Full time equivalent staff was 1,392 at June 30, 2021, 1,387 at March 31, 2021, and 1,465 at June 30, 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 second quarter of 2020. The cash dividend is payable on August 20, 2021 to shareholders of record as of August 6, 2021. This dividend represents a 3.4% projected annual yield utilizing the July 26, 2021 closing market price of $13.41.

First Commonwealths capital ratios for Total, Tier I, Leverage and Common Equity Tier I at June 30, 2021 were 15.2%, 12.6%, 9.6% 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 second quarter of 2021 on Wednesday, July 28, 2021 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-833-302-1887 conference ID # 2497028 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 # 2497028. A link to the webcast replay will also be accessible on the companys 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 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 DATAUnaudited (dollars inthousands, except pershare data) For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020SUMMARYRESULTS OF OPERATIONSNet interest $ 68,199 $ 69,442 $ 66,686 $ 137,641 $ 134,410 incomeProvision for 5,413 (4,390 ) 6,859 1,023 37,826 credit lossesNoninterest 26,086 27,355 21,812 53,441 41,085 incomeNoninterest 51,542 51,859 52,756 103,401 103,027 expenseNet income 29,619 39,770 23,851 69,389 28,578 Core net 29,777 39,855 24,176 69,632 28,906 income ^(5)Earnings percommon share $ 0.31 $ 0.41 $ 0.24 $ 0.72 $ 0.29 (diluted)Core earningsper common $ 0.31 $ 0.41 $ 0.25 $ 0.72 $ 0.29 share(diluted) ^(6)KEY FINANCIAL RATIOSReturn on 1.26 % 1.77 % 1.06 % 1.51 % 0.66 %average assetsCore return onaverage assets 1.26 % 1.77 % 1.08 % 1.51 % 0.67 %^(7)Return onaverageassets, 1.81 % 2.00 % 1.59 % 1.90 % 1.68 %pre-provision,pre-taxCore return onaverageassets, 1.82 % 2.00 % 1.61 % 1.91 % 1.69 %pre-provision,pre-taxReturn onaverage 10.82 % 14.98 % 8.95 % 12.87 % 5.36 %shareholders'equityReturn onaveragetangible 15.54 % 21.58 % 13.13 % 18.50 % 8.03 %common equity^(8)Core return onaveragetangible 15.62 % 21.63 % 13.30 % 18.56 % 8.12 %common equity^(9)Coreefficiency 53.21 % 53.18 % 56.73 % 53.20 % 57.46 %ratio ^(2)(10)Net interestmargin (FTE) ^ 3.17 % 3.40 % 3.29 % 3.29 % 3.46 %(1) Book value per $ 11.50 $ 11.30 $ 10.96 common shareTangible bookvalue per 8.22 8.01 7.72 common share ^(11)Market valueper common 14.07 14.37 8.28 shareCash dividendsdeclared per 0.115 0.110 0.110 0.225 0.220 common shareASSET QUALITY RATIOSNonperformingloans as apercent of 0.78 % 0.75 % 0.81 % end-of-periodloans^ (3)Nonperformingloans as apercent ofend-of-period 0.82 % 0.80 % 0.88 % loans,excluding PPPloans^ (3)Nonperformingassets as apercent of 0.57 % 0.55 % 0.62 % total assets ^(3)Nonperformingassets as apercent of 0.59 % 0.58 % 0.66 % total assets,excluding PPPloans ^(3)Netcharge-offs asa percent of 0.23 % 0.20 % 0.27 % average loans(annualized) ^(4)Netcharge-offs asa percent ofaverage loans, 0.25 % 0.21 % 0.28 % excluding PPPloans(annualized) ^(4)Allowance forcredit lossesas a percent 183.81 % 192.06 % 145.37 % ofnonperformingloans ^(4)Allowance forcredit lossesas a percent 1.44 % 1.44 % 1.18 % ofend-of-periodloans ^(4)Allowance forcredit lossesas a percentof 1.50 % 1.55 % 1.28 % end-of-periodloans,excluding PPPloans ^(4)CAPITAL RATIOS Shareholders'equity as a 11.8 % 11.5 % 11.5 % percent oftotal assetsTangiblecommon equityas a percent 8.7 % 8.5 % 8.4 % of tangibleassets ^(12)Tangiblecommon equityas a percentof tangible 9.0 % 8.9 % 8.9 % assets,excluding PPPloans ^(12)Leverage Ratio 9.6 % 9.7 % 9.3 % Risk BasedCapital - Tier 12.6 % 12.6 % 11.8 % IRisk BasedCapital - 15.2 % 15.3 % 14.4 % TotalCommon Equity 11.6 % 11.6 % 10.7 % - Tier I

FIRST COMMONWEALTH FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATAUnaudited (dollars inthousands, except pershare data) For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020INCOME STATEMENTInterest $ 72,051 $ 74,061 $ 74,981 $ 146,112 $ 154,310 incomeInterest 3,852 4,619 8,295 8,471 19,900 expenseNet Interest 68,199 69,442 66,686 137,641 134,410 IncomeProvision for 5,413 (4,390 ) 6,859 1,023 37,826 credit lossesNet InterestIncome after 62,786 73,832 59,827 136,618 96,584 Provision forCredit LossesNet securities 10 6 8 16 27 gainsTrust income 2,706 2,516 2,109 5,222 4,220 Servicecharges on 4,310 4,047 3,286 8,357 8,031 depositaccountsInsurance andretail 1,978 2,172 1,831 4,150 3,826 brokeragecommissionsIncome frombank owned 1,509 1,951 1,800 3,460 3,416 life insuranceGain on saleof mortgage 3,084 5,046 4,243 8,130 6,789 loansGain on saleof other loans 2,111 1,690 581 3,801 1,280 and assetsCard-relatedinterchange 7,406 6,427 5,886 13,833 11,148 incomeDerivative (277 ) 1,430 (221 ) 1,153 (1,962 ) mark-to-marketSwap fee 1,252 146 609 1,398 823 incomeOther income 1,997 1,924 1,680 3,921 3,487 TotalNoninterest 26,086 27,355 21,812 53,441 41,085 IncomeSalaries andemployee 28,347 28,671 28,773 57,018 58,750 benefitsNet occupancy 3,881 4,773 4,397 8,654 9,370 Furniture and 3,866 3,948 3,657 7,814 7,435 equipmentData 3,192 3,052 2,596 6,244 5,063 processingPennsylvania 1,258 832 1,254 2,090 1,992 shares taxAdvertising 1,355 1,324 1,535 2,679 2,685 and promotionIntangible 863 866 919 1,729 1,853 amortizationOtherprofessional 1,091 751 920 1,842 1,818 fees andservicesFDIC insurance 438 696 733 1,134 761 Litigation andoperational 556 479 319 1,035 709 lossesLoss on saleor write-down 43 9 140 52 353 of assetsCOVID-19 232 74 419 306 442 relatedBranch (22 ) 40 ? 18 ? consolidationOtheroperating 6,442 6,344 7,094 12,786 11,796 expensesTotalNoninterest 51,542 51,859 52,756 103,401 103,027 ExpenseIncome before 37,330 49,328 28,883 86,658 34,642 Income TaxesIncome tax 7,711 9,558 5,032 17,269 6,064 provisionNet Income $ 29,619 $ 39,770 $ 23,851 $ 69,389 $ 28,578 SharesOutstanding at 96,201,628 96,248,476 98,132,697 96,201,628 98,132,697 End of PeriodAverage SharesOutstanding 96,282,425 96,233,647 98,146,854 96,255,475 98,254,429 AssumingDilution

FIRST COMMONWEALTH FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATAUnaudited (dollars in thousands) June 30, March 31, June 30, 2021 2021 2020BALANCE SHEET (Period End)Assets Cash and due from banks $ 89,505 $ 83,989 $ 108,970 Interest-bearing bank 194,948 420,645 348,763 depositsSecurities available for 1,102,057 1,056,703 914,412 sale, at fair valueSecurities held tomaturity, at amortized 554,225 407,833 297,986 costLoans held for sale 19,530 20,604 30,409 Loans 6,740,535 6,736,894 6,922,075 Allowance for credit (97,038 ) (96,763 ) (81,441 )lossesNet loans 6,643,497 6,640,131 6,840,634 Goodwill and other 315,497 316,148 318,072 intangiblesOther assets 483,143 470,936 505,409 Total Assets $ 9,402,402 $ 9,416,989 $ 9,364,655 Liabilities and Shareholders' EquityNoninterest-bearing $ 2,617,651 $ 2,616,303 $ 2,288,299 demand deposits Interest-bearing demand 269,451 267,571 327,691 depositsSavings deposits 4,566,815 4,501,456 4,431,919 Time deposits 431,102 483,926 734,292 Total interest-bearing 5,267,368 5,252,953 5,493,902 deposits Total deposits 7,885,019 7,869,256 7,782,201 Short-term borrowings 107,372 110,762 108,484 Long-term borrowings 182,767 233,012 233,723 Total borrowings 290,139 343,774 342,207 Other liabilities 120,825 116,479 164,542 Shareholders' equity 1,106,419 1,087,480 1,075,705 Total Liabilities and $ 9,402,402 $ 9,416,989 $ 9,364,655 Shareholders' Equity

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands)

For the Three Months Ended For the Six Months Ended June 30, Yield/ March 31, Yield/ June 30, Yield/ June 30, Yield/ June 30, Yield/ 2021 Rate 2021 Rate 2020 Rate 2021 Rate 2020 RateNET INTEREST MARGIN Assets Loans, excludingPPP loans (FTE)^(1) $ 6,341,805 3.80 % $ 6,292,076 3.91 % $ 6,372,145 4.14 % $ 6,317,078 3.86 % $ 6,313,985 4.38 %(3)PPP Loans 429,917 5.11 % 489,375 6.58 % 405,738 2.73 % 459,482 5.89 % 202,869 2.73 %Securities andinterest-bearing 1,886,184 1.43 % 1,530,107 1.54 % 1,412,275 1.99 % 1,709,129 1.48 % 1,333,987 2.21 %bank deposits (FTE)^(1)TotalInterest-Earning 8,657,906 3.35 % 8,311,558 3.63 % 8,190,158 3.70 % 8,485,689 3.49 % 7,850,841 3.97 %Assets (FTE) ^(1)Noninterest-earning 793,777 818,896 853,396 806,267 839,596 assetsTotal Assets $ 9,451,683 $ 9,130,454 $ 9,043,554 $ 9,291,956 $ 8,690,437 Liabilities andShareholders' EquityInterest-bearingdemand and savings $ 4,858,531 0.07 % $ 4,603,822 0.10 % $ 4,568,202 0.24 % $ 4,731,880 0.08 % $ 4,391,763 0.36 %depositsTime deposits 458,638 0.47 % 528,265 0.75 % 776,892 1.51 % 493,259 0.62 % 801,429 1.58 %Short-term 114,966 0.09 % 119,369 0.11 % 112,063 0.17 % 117,155 0.10 % 157,188 0.81 %borrowingsLong-term 206,495 4.65 % 233,113 4.41 % 233,819 4.41 % 219,731 4.52 % 233,934 4.41 %borrowingsTotalInterest-Bearing 5,638,630 0.27 % 5,484,569 0.34 % 5,690,976 0.59 % 5,562,025 0.31 % 5,584,314 0.72 %LiabilitiesNoninterest-bearing 2,604,695 2,413,887 2,130,775 2,509,818 1,903,568 depositsOther liabilities 110,264 155,443 150,254 132,729 131,122 Shareholders' 1,098,094 1,076,555 1,071,549 1,087,384 1,071,433 equityTotalNoninterest-Bearing 3,813,053 3,645,885 3,352,578 3,729,931 3,106,123 Funding SourcesTotal Liabilitiesand Shareholders' $ 9,451,683 $ 9,130,454 $ 9,043,554 $ 9,291,956 $ 8,690,437 Equity Net Interest Margin(FTE) (annualized)^ 3.17 % 3.40 % 3.29 % 3.29 % 3.46 %(1)

FIRST COMMONWEALTH FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands) June 30, March 31, June 30, 2021 2021 2020Loan Portfolio Detail Commercial Loan Portfolio: Commercial, financial, agricultural $ 1,081,822 $ 1,077,218 $ 1,202,212 and otherPaycheck Protection Program 292,355 478,453 570,887 Commercial real estate 2,205,758 2,167,506 2,224,710 Real estate construction 317,496 316,207 339,603 Total Commercial 3,897,431 4,039,384 4,337,412 Consumer Loan Portfolio: Closed-end mortgages 1,259,798 1,178,640 1,140,101 Home equity lines of credit 568,985 577,975 583,187 Real estate construction 97,320 88,373 76,726 Total Real Estate - Consumer 1,926,103 1,844,988 1,800,014 Auto loans 829,150 759,061 671,202 Direct installment 28,805 32,143 43,629 Personal lines of credit 53,720 55,719 63,600 Student loans 5,326 5,599 6,218 Total Other Consumer 917,001 852,522 784,649 Total Consumer Portfolio 2,843,104 2,697,510 2,584,663 Total Portfolio Loans 6,740,535 6,736,894 6,922,075 Loans held for sale 19,530 20,604 30,409 Total Loans $ 6,760,065 $ 6,757,498 $ 6,952,484 June 30, March 31, June 30, 2021 2021 2020ASSET QUALITY DETAIL Nonperforming Loans: Loans on nonaccrual basis $ 22,219 $ 23,056 $ 44,968 Loans held for sale on a nonaccrual ? ? ? basisTroubled debt restructured loans on 23,981 20,628 3,600 nonaccrual basisTroubled debt restructured loans on 6,593 6,697 7,455 accrual basisTotal Nonperforming Loans $ 52,793 $ 50,381 $ 56,023 Other real estate owned ("OREO") 394 916 1,634 Repossessions ("Repos") 440 833 537 Total Nonperforming Assets $ 53,627 $ 52,130 $ 58,194 Loans past due in excess of 90 days 903 1,079 1,421 and still accruingClassified loans 55,957 72,026 76,917 Criticized loans 250,427 272,143 125,432 Nonperforming assets as a percentageof total loans, plus OREO and Repos^ 0.80 % 0.77 % 0.84 %(4)Allowance for credit losses $ 97,038 $ 96,763 $ 81,441

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands)

For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020Net Charge-offs (Recoveries):Commercial,financial, $ 3,784 $ 479 $ 1,234 $ 4,263 $ 1,639 agriculturaland otherReal estate (135 ) ? (26 ) (135 ) (26 ) constructionCommercial real 6 1,511 2,151 1,517 2,373 estateResidential (160 ) 68 2 (92 ) 504 real estateLoans to 432 1,212 1,132 1,644 3,532 individualsNet Charge-offs $ 3,927 $ 3,270 $ 4,493 $ 7,197 $ 8,022 Net charge-offsas a percentageof averageloans 0.23 % 0.20 % 0.27 % 0.21 % 0.25 %outstanding(annualized) ^(4)Net charge-offsas a percentageof averageloansoutstanding, 0.25 % 0.21 % 0.28 % 0.23 % 0.26 %excluding PPPloans(annualized) ^(4)Provision forcredit lossesas a percentage 137.84 % (134.25 ) % 152.66 % 14.21 % 471.53 %of netcharge-offsProvision for $ 5,413 $ (4,390 ) $ 6,859 $ 1,023 $ 37,826 credit losses

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 For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020 Interest $ 72,051 $ 74,061 $ 74,981 $ 146,112 $ 154,310 incomeAdjustment tofully taxable 290 309 359 598 755 equivalentbasis ^(1)Interestincomeadjusted tofully taxable 72,341 74,370 75,340 146,710 155,065 equivalentbasis(non-GAAP)Interest 3,852 4,619 8,295 8,471 19,900 expenseNet interestincome, (FTE) $ 68,489 $ 69,751 $ 67,045 $ 138,239 $ 135,165 ^(1)

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

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020 Net Income $ 29,619 $ 39,770 $ 23,851 $ 69,389 $ 28,578 Intangible 863 866 919 1,729 1,853 amortizationTax benefitofamortization (181 ) (182 ) (193 ) (363 ) (389 ) ofintangiblesNet Income,adjusted fortax affected $ 30,301 $ 40,454 $ 24,577 $ 70,755 $ 30,042 amortizationofintangibles AverageTangible Equity:Totalshareholders' $ 1,098,094 $ 1,076,555 $ 1,071,549 $ 1,087,384 $ 1,071,433 equityLess:intangible 315,776 316,438 318,486 316,105 318,877 assetsTangible 782,318 760,117 753,063 771,279 752,556 EquityLess:preferred ? ? ? ? ? stockTangible $ 782,318 $ 760,117 $ 753,063 $ 771,279 $ 752,556 Common Equity ^(8)Return onAverage 15.54 % 21.58 % 13.13 % 18.50 % 8.03 %TangibleCommon Equity

For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020 Core Net Income:Total Net $ 29,619 $ 39,770 $ 23,851 $ 69,389 $ 28,578 IncomeNetsecurities (10 ) (6 ) (8 ) (16 ) (27 ) gainsTax benefitof net 2 1 2 3 6 securitiesgainsCOVID-19 232 74 419 306 442 relatedTax benefitof COVID 19 (49 ) (16 ) (88 ) (64 ) (93 ) relatedBranchconsolidation (22 ) 40 ? 18 ? relatedTax benefitof bankconsolidation 5 (8 ) ? (4 ) ? relatedexpenses^(5) Core net $ 29,777 $ 39,855 $ 24,176 $ 69,632 $ 28,906 incomeAverageSharesOutstanding 96,282,425 96,233,647 98,146,854 96,255,475 98,254,429 AssumingDilution^(6) CoreEarnings per $ 0.31 $ 0.41 $ 0.25 $ 0.72 $ 0.29 common share(diluted) Intangible 863 866 919 1,729 1,853 amortizationTax benefitofamortization (181 ) (182 ) (193 ) (363 ) (389 ) ofintangiblesCore NetIncome,adjusted fortax affected $ 30,459 $ 40,539 $ 24,902 $ 70,998 $ 30,370 amortizationofintangibles ^(9) CoreReturn onAverage 15.62 % 21.63 % 13.30 % 18.56 % 8.12 %TangibleCommon Equity

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

DEFINITIONS ANDRECONCILIATION OF NON-GAAP MEASURES For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020Core Returnon Average Assets:Total Net $ 29,619 $ 39,770 $ 23,851 $ 69,389 $ 28,578 IncomeTotalAverage 9,451,683 9,130,454 9,043,554 9,291,956 8,690,437 AssetsReturn onAverage 1.26 % 1.77 % 1.06 % 1.51 % 0.66 %Assets Core Net $ 29,777 $ 39,855 $ 24,176 $ 69,632 $ 28,906 Income ^(5)TotalAverage 9,451,683 9,130,454 9,043,554 9,291,956 8,690,437 Assets^(7) CoreReturn on 1.26 % 1.77 % 1.08 % 1.51 % 0.67 %AverageAssets

For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020CoreEfficiency Ratio:TotalNoninterest $ 51,542 $ 51,859 $ 52,756 $ 103,401 $ 103,027 ExpenseAdjustments toNoninterest Expense:Unfundedcommitment ? ? 887 ? (1,652 ) reserveIntangible 863 866 919 1,729 1,853 amortizationCOVID-19 232 74 419 306 442 relatedBranchconsolidation (22 ) 40 ? 18 ? relatedNoninterest $ 50,469 $ 50,879 $ 50,531 $ 101,348 $ 102,384 Expense - Core Net interest $ 68,489 $ 69,751 $ 67,045 $ 138,239 $ 135,165 income, (FTE)Totalnoninterest 26,086 27,355 21,812 53,441 41,085 incomeNet securities (10 ) (6 ) (8 ) (16 ) (27 ) gainsTotal Revenue 94,565 97,100 88,849 191,664 176,223 Adjustments to Revenue:Derivative (277 ) 1,430 (221 ) 1,153 (1,962 ) mark-to-marketTotal Revenue $ 94,842 $ 95,670 $ 89,070 $ 190,511 $ 178,185 - Core ^(10)CoreEfficiency 53.21 % 53.18 % 56.73 % 53.20 % 57.46 %Ratio

FIRST COMMONWEALTH FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars in thousands)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES June 30, March 31, June 30, 2021 2021 2020Tangible Equity: Total shareholders' equity $ 1,106,419 $ 1,087,480 $ 1,075,705 Less: intangible assets 315,497 316,148 318,072 Tangible Equity 790,922 771,332 757,633 Less: preferred stock ? ? ? Tangible Common Equity $ 790,922 $ 771,332 $ 757,633 Tangible Assets: Total assets $ 9,402,402 $ 9,416,989 $ 9,364,655 Less: intangible assets 315,497 316,148 318,072 Tangible Assets $ 9,086,905 $ 9,100,841 $ 9,046,583 Less: PPP loans 292,355 478,453 570,887 Tangible Assets, excluding PPP loans $ 8,794,550 $ 8,622,388 $ 8,475,696 ^(12)Tangible Common Equity as a 8.70 % 8.48 % 8.37 %percentage of Tangible Assets^(12)Tangible Common Equity as apercentage of Tangible Assets, 8.99 % 8.95 % 8.94 %excluding PPP loans Shares Outstanding at End of Period 96,201,628 96,248,476 98,132,697 ^(11)Tangible Book Value Per Common $ 8.22 $ 8.01 $ 7.72 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 For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020 Pre-taxpre-provision income:Net interest income $68,199 $69,442 $66,686 $137,641 $134,410 Noninterest income 26,086 27,355 21,812 53,441 41,085 Noninterest expense 51,542 51,859 52,756 103,401 103,027 Pre-tax $42,743 $44,938 $35,742 $87,681 $72,468 pre-provision income Net securities gains ($10) ($6) ($8) ($16) ($27) COVID-19 related 232 74 419 306 442 Branch consolidation (22) 40 ? 18 ? Core pre-tax $42,943 $45,046 $36,153 $87,989 $72,883 pre-provision income Net charge-offs $3,927 $3,270 $4,493 $7,197 $8,022