Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)



Statements of Financial Condition	December 31,
	2018		2017
	(dollars in thousands)
Assets
Cash	$	21,466	$	16,432
Loans	14		17
Investment in subsidiaries	1,014,685		927,765
Investment in unconsolidated subsidiary trusts	2,192		2,186
Investment in jointly-owned company	280		9,191
Premises and equipment, net	3,519		3,715
Dividends receivable from subsidiaries	5,444		—
Other assets	5,402		4,996
Total assets	$	1,053,002	$	964,302
Liabilities and Shareholders’ Equity
Accrued expenses and other liabilities	$	5,446	$	4,008
Subordinated debentures payable	72,167		72,167
Shareholders’ equity	975,389		888,127
Total liabilities and shareholders’ equity	$	1,053,002	$	964,302



Statements of Income	For the years ended December 31,
	2018			2017			2016
	(dollars in thousands)
Interest and dividends	$	1		$	1		$	1
Dividends from subsidiaries	81,851			52,586			55,510
Interest expense	(3,722		)	(3,000		)	(2,635		)
Other income	14			17			83
Operating expense	(4,047		)	(4,767		)	(4,700		)
Income before taxes and equity in undistributed earnings of subsidiaries	74,097			44,837			48,259
Applicable income tax benefits	1,324			2,557			2,515
Income before equity in undistributed earnings of subsidiaries	75,421			47,394			50,774
Equity in undistributed earnings of subsidiaries	32,077			7,771			8,816
Net income	$	107,498		$	55,165		$	59,590



	For the years ended December 31,
Statements of Cash Flow	2018			2017			2016
	(dollars in thousands)
Operating Activities
Net income	$	107,498		$	55,165		$	59,590
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	320			322			355
Net gains on sales of assets	(7		)	(3		)	—
Decrease (increase) in prepaid income taxes	37			(550		)	7,380
Undistributed equity in subsidiaries	(32,077		)	(7,771		)	(8,816		)
Distribution from unconsolidated subsidiary	9,000			—			—
Other net	(1,628		)	8,767			7,759
Net cash provided by operating activities	83,143			55,930			66,268
Investing Activities
Net change in loans	3			2			3
Purchases of premises and equipment	(87		)	(207		)	—
Proceeds from sale of other assets	7			3			(332		)
Proceeds from dissolution of subsidiary	0			—			27,017
Acquisition of affiliate, net of cash received	0			(250		)	—
Investment in subsidiaries	(17,202		)	(37,690		)	(47,017		)
Net cash used in by investing activities	(17,279		)	(38,142		)	(20,329		)
Financing Activities
Dividends paid	(34,849		)	(30,513		)	(24,907		)
Proceeds from reissuance of treasury stock	208			228			216
Purchase of treasury stock	(26,189		)	(1,458		)	(864		)
Net cash used in financing activities	(60,830		)	(31,743		)	(25,555		)
Net increase (decrease) in cash	5,034			(13,955		)	20,384
Cash at beginning of year	16,432			30,387			10,003
Cash at end of year	$	21,466		$	16,432		$	30,387

Cash dividends declared per common share were $0.35 for 2018, $0.32 in 2017 and $0.28 in 2016.

First Commonwealth Financial Corporation has an unsecured $15.0 million line of credit with another financial institution. As of December 31, 2018, there are no amounts outstanding on this line and we are in compliance with all debt covenants related

to the line of credit.