Exhibit

EX-99.1 2 fcf-ex99120191022x8k.htm EXHIBIT 99.1 PRESS RELEASE Exhibit

Exhibit 99.1

FOR IMMEDIATE RELEASE

First Commonwealth Announces Third Quarter 2019 Earnings; Declares Quarterly Dividend

Indiana, PA, October 29, 2019 - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2019.

Financial Summary



(dollars in thousands,	For the Three Months Ended						For the Nine Months Ended
except per share data)	September 30,		June 30,		September 30,		September 30,		September 30,
	2019		2019		2018		2019		2018
Reported Results
Net income	$26,644		$27,280		$25,149		$78,513		$80,500
Diluted earnings per share	$0.27		$0.28		$0.25		$0.80		$0.81
Return on average assets	1.31	%	1.37	%	1.30	%	1.32	%	1.44	%
Return on average equity	10.22	%	10.84	%	10.28	%	10.39	%	11.53	%

Operating Results (non-GAAP)⁽¹⁾
Core net income	$29,597		$27,307		$25,168		$81,493		$81,791
Core diluted earnings per share	$0.30		$0.28		$0.25		$0.83		$0.82
Core return on average assets	1.46	%	1.37	%	1.30	%	1.37	%	1.46	%
Return on average tangible common equity	14.62	%	15.47	%	15.01	%	14.90	%	16.88	%
Core return on average tangible common equity	16.20	%	15.48	%	15.02	%	15.45	%	17.14	%
Core efficiency ratio	55.73	%	56.80	%	57.82	%	56.87	%	57.05	%
Net interest margin (FTE)	3.76	%	3.75	%	3.67	%	3.75	%	3.71	%

⁽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.

Third Quarter 2019 Highlights

Earnings


•	Third quarter GAAP net income was $26.6 million, or $0.27 diluted earnings per share.


•	Core net income (non-GAAP)⁽¹⁾ was $29.6 million, or $0.30 diluted earnings per share, an increase of $0.02 from the previous quarter and $0.05 from the third quarter of 2018.


•	Total revenue grew $1.6 million, or 7.0% annualized from the prior quarter.


•	Net interest income (FTE) increased $1.3 million from the prior quarter.


•	Noninterest income grew $0.3 million from the prior quarter.


•	Total noninterest expense increased $2.7 million from the previous quarter, but includes $3.7 million in merger and acquisition related expenses resulting from the completion of the Company’s acquisition of 14 former Santander branches in Central Pennsylvania.


•	Provision for credit losses totaled $2.7 million, a decrease of $0.1 million as compared to the prior quarter.

Franchise Growth


•	On September 6, 2019, the Company completed its acquisition of 14 Santander branches in Central Pennsylvania. This acquisition included $471 million in deposits (including $52 million in noninterest bearing deposits) and $100 million of loans at close.


•	Total loans grew $101 million from the prior quarter and include $100 million in loans acquired in the aforementioned branch acquisition.


•	Excluding acquired loans, consumer and consumer real estate loans grew $39 million and $24 million, respectively, from the prior quarter. This growth offset a high level of payoffs experienced in the Company's commercial loan categories.


•	On a year-to-date basis, total loans (excluding acquired balances) have grown $234 million, or 5.4% annualized.


•	Average deposits grew $212 million from the prior quarter and include $123 million in average deposits acquired in the aforementioned branch acquisition.


•	On a year-to-date basis, average quarterly deposits (excluding acquired balances) have grown $334 million, or 7.5% annualized, and grew by 5.8% annualized (excluding acquired balances) during the third quarter.

Profitability


•	Return on average assets decreased six basis points from the previous quarter to 1.31%.


•	Core return on average assets (non-GAAP)⁽¹⁾increased nine basis points from the previous quarter to 1.46%.


•	The core return on average tangible common equity (non-GAAP)⁽¹⁾ for the third quarter of 2019 was 16.20%.


•	The core efficiency ratio (non-GAAP)⁽¹⁾ improved to 55.73% compared to 56.8% in the previous quarter.


•	The net interest margin of 3.76% increased by one basis point from the previous quarter.

“Our third quarter financial results demonstrate consistent improvement in our company’s performance trajectory,” stated T. Michael Price, President and Chief Executive Officer. “Our underlying fundamentals remain strong across multiple business lines and geographies, and we remain focused on optimizing growth opportunities in our newer markets in Ohio and Central Pennsylvania. During the quarter we completed our acquisition of 14 former Santander branches and welcomed 83 talented employees and nearly 23,000 new households to First Commonwealth. Our success can be traced back to our talented team of individuals who continually deliver on our mission of improving the financial lives of our neighbors and their businesses.”

Earnings

Net income for the third quarter of 2019 was $26.6 million, as compared to $27.3 million in the previous quarter and $25.1 million for the third quarter of 2018. Core net income (non-GAAP)⁽¹⁾ for the third quarter of 2019 was $29.6 million, an increase of $2.3 million from the previous quarter and an increase of $4.4 million from the third quarter of 2018. The increase from the previous quarter was driven by a $1.3 million (pre-tax) increase in net interest income and a $1.0 million (pre-tax) decrease in noninterest expense (excluding merger and acquisition expenses). The increase from the prior year quarter was primarily due to a nine basis point increase in the net interest margin, strong fee income growth and well controlled expenses.

Net income for the first nine months of 2019 was $78.5 million, as compared to $80.5 million for the same period in 2018. The decrease from the prior year was primarily due to an $8.1 million (pre-tax) gain on the sale and successful auction calls of the Company’s remaining pooled trust preferred securities in the first nine months of 2018 and a $9.2 million (pre-tax) increase in operating expenses, partially offset by a $16.7 million (pre-tax) increase in revenue and a $1.4 million decrease in the provision for credit losses.

Net Interest Income and Net Interest Margin

During the third quarter of 2019, net interest income (FTE) was $68.9 million, an increase of $1.3 million from the previous quarter. The increase in net interest income was the result of a $33 million increase in average mortgage loans, a $29 million increase in indirect auto loans and a six basis point decrease in funding costs as the Company was able to pay down higher cost short-term borrowings for a portion of the quarter following the completion of the aforementioned acquisition on September 6, 2019.

The net interest margin for the third quarter of 2019 was 3.76%, an increase of one basis point from the previous quarter and an increase of nine basis points from the third quarter of 2018. The net interest margin in the third quarter benefited from a 25 basis point increase in the yield on indirect auto loans and a 21 basis point decrease in the cost of short-term borrowings, partially offset by a 13 basis point decrease in the yield on variable rate commercial loans.

Average noninterest bearing deposits grew by $63 million in the third quarter of 2019 compared to the previous quarter. Excluding noninterest bearing deposits acquired through the aforementioned branch acquisition, average noninterest bearing deposits grew $41 million, or 10.9% annualized from the previous quarter.

Credit Quality

The provision for credit losses totaled $2.7 million for the quarter ended September 30, 2019, a decrease of $0.1 million compared to the prior quarter. The decrease is primarily due to a continuation of the long-term trend of improvement in credit quality.

Nonperforming loans were $35.3 million for the quarter ended September 30, 2019, a decrease of $0.2 million from previous quarter and a decrease of $4.5 million from the same quarter last year. Nonperforming loans as a percentage of total loans were 0.58%, 0.59% and 0.70% for the periods ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively.

During the third quarter of 2019, net charge-offs (recoveries) were $3.7 million, compared to $1.4 million in the prior quarter and $3.5 million in the third quarter of 2018.

For the originated loan portfolio at September 30, 2019, the general allowance for credit losses to total originated non-impaired loans was 0.87%, compared to 0.88% at June 30, 2019 and 0.89% at September 30, 2018.

Noninterest Income and Noninterest Expense

Noninterest income (excluding net security gains) totaled $22.2 million for the third quarter of 2019, as compared to $21.9 million in the previous quarter and $19.8 million for the third quarter of 2018. The increase from the previous quarter was primarily due to a $0.5 million increase in mortgage banking revenue, a $0.5 million increase in service charges and card-related interchange income and seasonally higher Trust fee income, partially offset by a $0.4 million decrease in swap fees and a $0.8 million decrease in gain on sale of other loans due to a $0.5 million decrease in gain on sale of SBA loans and a $0.4 million gain on sale of a commercial loan in the previous quarter.

Noninterest expense (excluding merger-related expenses) totaled $51.2 million for the third quarter of 2019 as compared to $52.2 million for the second quarter of 2019 and $49.5 million for the third quarter of 2018. The decrease from the previous quarter was primarily driven by a $1.1 million decrease in unfunded commitment reserve expense, $0.9 million in write-downs of two OREO properties in the previous quarter and a $0.5 million decrease in FDIC insurance due to a quarterly assessment credit, partially offset by a $0.5 million increase in hospitalization expense.

Full time equivalent staff was 1,511 at September 30, 2019, 1,438 at June 30, 2019 and 1,417 at September 30, 2018.

Dividends and Capital

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.10 per share, which is payable on November 22, 2019 to shareholders of record as of November 8, 2019. This dividend represents a 2.9% projected annual yield utilizing the October 28, 2019 closing market price of $13.95.

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at September 30, 2019 were 14.1%, 11.8%, 10.1% and 10.7%, respectively. First Commonwealth’s current capital ratios exceed the well-capitalized thresholds of federal bank regulatory agencies.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter 2019 on Wednesday, October 30, 2019 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-844-792-3645 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 1-877-344-7529 and entering the access code # 10135957. A link to the webcast replay will also be accessible on the company’s web page for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services company with 147 community banking offices in 28 counties throughout western and central Pennsylvania and throughout Ohio, as well as business banking centers in Pittsburgh, Pennsylvania, and Canton, Cleveland and Columbus, 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

This release contains forward-looking statements about First Commonwealth’s future plans, strategies and financial performance. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Such statements are based on assumptions and involve risks and uncertainties, many of which are beyond First Commonwealth’s control. Factors that could cause actual results, performance or achievements to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national and international economic conditions and the impact they may have 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); (6) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (7) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (8) political instability; (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) First Commonwealth’s ability to attract and retain qualified employees; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (16) the ability to increase market share and control expenses; (17) impairment of First Commonwealth’s goodwill or other intangible assets; (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 soundness of other financial institutions; (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 the reports that First Commonwealth files with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date on which they are made. First Commonwealth undertakes no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Media Relations:

Jonathan E. Longwill

Vice President / Communications and Media Relations

Phone: 724-463-6806

E-mail: JLongwill@fcbanking.com

Investor Relations

Ryan M. Thomas

Vice President / Finance and Investor Relations

Phone: 724-463-1690

E-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 Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2019			2019			2018			2019			2018
SUMMARY RESULTS OF OPERATIONS
Net interest income (FTE) ⁽¹⁾	$	68,875		$	67,581		$	64,311		$	202,398		$	188,682
Provision for credit losses	2,708			2,835			2,961			9,638			11,032
Noninterest income	22,179			21,906			19,757			62,957			68,108
Noninterest expense	54,897			52,229			49,530			156,856			145,532
Net income	26,644			27,280			25,149			78,513			80,500
Core net income ⁽⁵⁾	29,597			27,307			25,168			81,493			81,791

Earnings per common share (diluted)	$	0.27		$	0.28		$	0.25		$	0.80		$	0.81
Core earnings per common share (diluted) ⁽⁶⁾	$	0.30		$	0.28		$	0.25		$	0.83		$	0.82

KEY FINANCIAL RATIOS

Return on average assets	1.31		%	1.37		%	1.30		%	1.32		%	1.44		%
Core return on average assets ⁽⁷⁾	1.46		%	1.37		%	1.30		%	1.37		%	1.46		%
Return on average shareholders' equity	10.22		%	10.84		%	10.28		%	10.39		%	11.53		%
Return on average tangible common equity⁽⁸⁾	14.62		%	15.47		%	15.01		%	14.90		%	16.88		%
Core return on average tangible common equity⁽⁹⁾	16.20		%	15.48		%	15.02		%	15.45		%	17.14		%
Core efficiency ratio ^(2)(10)	55.73		%	56.80		%	57.82		%	56.87		%	57.05		%
Net interest margin (FTE) ⁽¹⁾	3.76		%	3.75		%	3.67		%	3.75		%	3.71		%

Book value per common share	$	10.57		$	10.37		$	9.69
Tangible book value per common share ⁽¹¹⁾	7.31			7.46			6.82
Market value per common share	13.47			13.47			16.14
Cash dividends declared per common share	0.10			0.10			0.09			$	0.30		$	0.26

ASSET QUALITY RATIOS
Nonperforming loans as a percent of end-of-period loans⁽³⁾	0.58		%	0.59		%	0.70		%
Nonperforming assets as a percent of total assets ⁽³⁾	0.46		%	0.47		%	0.57		%
Net charge-offs as a percent of average loans (annualized) ⁽⁴⁾	0.25		%	0.10		%	0.25		%
Allowance for credit losses as a percent of nonperforming loans ⁽⁴⁾	141.64		%	143.62		%	127.35		%
Allowance for credit losses as a percent of end-of-period loans ⁽⁴⁾	0.82		%	0.85		%	0.90		%
Allowance for credit losses (originated loans and leases) as a percent of total originated loans and leases	0.91		%	0.92		%	0.98		%

CAPITAL RATIOS
Shareholders' equity as a percent of total assets	12.7		%	12.7		%	12.7		%
Tangible common equity as a percent of tangible assets ⁽¹²⁾	9.2		%	9.4		%	9.3		%
Leverage Ratio	10.1		%	10.4		%	10.5		%
Risk Based Capital - Tier I	11.8		%	12.2		%	12.6		%
Risk Based Capital - Total	14.1		%	14.6		%	15.1		%
Common Equity - Tier I	10.7		%	11.2		%	11.4		%



FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
	For the Three Months Ended								For the Nine Months Ended
	September 30,			June 30,			September 30,		September 30,			September 30,
	2019			2019			2018		2019			2018
INCOME STATEMENT
Interest income	$	82,575		$	82,057		$	74,873	$	244,226		$	214,312
Interest expense	14,130			14,931			11,060		43,169			27,139
Net Interest Income	68,445			67,126			63,813		201,057			187,173
Taxable equivalent adjustment ⁽¹⁾	430			455			498		1,341			1,509
Net Interest Income (FTE)	68,875			67,581			64,311		202,398			188,682
Provision for credit losses	2,708			2,835			2,961		9,638			11,032
Net Interest Income after Provision for Credit Losses (FTE)	66,167			64,746			61,350		192,760			177,650

Net securities gains	9			6			—		15			8,102
Trust income	2,325			1,970			2,206		6,221			6,014
Service charges on deposit accounts	4,954			4,593			4,589		13,792			13,418
Insurance and retail brokerage commissions	1,912			2,014			1,872		5,887			5,560
Income from bank owned life insurance	1,540			1,442			1,579		4,408			5,241
Gain on sale of mortgage loans	2,599			2,074			1,542		6,101			4,267
Gain on sale of other loans and assets	970			1,777			643		3,831			3,548
Card-related interchange income	5,629			5,441			5,044		15,800			14,929
Derivative mark-to-market	(45		)	(17		)	—		(88		)	789
Swap fee income	421			820			528		1,634			1,115
Other income	1,865			1,786			1,754		5,356			5,125
Total Noninterest Income	22,179			21,906			19,757		62,957			68,108

Salaries and employee benefits	28,674			27,311			26,553		83,205			77,580
Net occupancy	4,521			4,441			4,341		13,878			12,932
Furniture and equipment	3,904			3,824			3,424		11,396			10,611
Data processing	2,825			2,619			2,853		7,988			7,764
Pennsylvania shares tax	1,189			1,260			1,248		3,365			3,398
Advertising and promotion	1,140			1,231			1,200		3,611			3,185
Intangible amortization	865			745			817		2,364			2,430
Collection and repossession	649			460			630		1,656			2,060
Other professional fees and services	969			1,032			962		2,755			3,000
FDIC insurance	35			555			217		1,164			1,590
Litigation and operational losses	308			555			435		1,264			811
Loss on sale or write-down of assets	152			1,181			181		1,398			875
Merger and acquisition related	3,738			34			24		3,772			1,634
Other operating expenses	5,928			6,981			6,645		19,040			17,662
Total Noninterest Expense	54,897			52,229			49,530		156,856			145,532

Income before Income Taxes	33,449			34,423			31,577		98,861			100,226
Taxable equivalent adjustment ⁽¹⁾	430			455			498		1,341			1,509
Income tax provision	6,375			6,688			5,930		19,007			18,217
Net Income	$	26,644		$	27,280		$	25,149	$	78,513		$	80,500

Shares Outstanding at End of Period	98,319,081			98,499,937			100,361,434		98,319,081			100,361,434
Average Shares Outstanding Assuming Dilution	98,547,898			98,600,609			100,490,812		98,615,787			99,197,568



FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)

	September 30,			June 30,			September 30,
	2019			2019			2018
BALANCE SHEET (Period End)
Assets
Cash and due from banks	$	112,241		$	95,047		$	93,162
Interest-bearing bank deposits	16,408			1,233			3,022
Securities available for sale, at fair value	823,944			895,471			914,085
Securities held to maturity, at amortized cost	357,890			373,453			389,621
Loans held for sale	20,288			16,036			8,287

Loans	6,099,561			6,003,059			5,662,782
Allowance for credit losses	(50,035		)	(51,061		)	(50,746		)
Net loans	6,049,526			5,951,998			5,612,036

Goodwill and other intangibles	320,505			286,545			288,028
Other assets	451,225			451,071			378,104
Total Assets	$	8,152,027		$	8,070,854		$	7,686,345

Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	1,657,507		$	1,528,307		$	1,451,284

Interest-bearing demand deposits	263,312			238,406			181,504
Savings deposits	3,867,034			3,530,705			3,453,461
Time deposits	890,143			858,547			808,894
Total interest-bearing deposits	5,020,489			4,627,658			4,443,859

Total deposits	6,677,996			6,155,965			5,895,143

Short-term borrowings	83,735			555,080			587,806
Long-term borrowings	234,404			234,623			185,266
Total borrowings	318,139			789,703			773,072

Other liabilities	116,862			103,355			45,199
Shareholders' equity	1,039,030			1,021,831			972,931
Total Liabilities and Shareholders' Equity	$	8,152,027		$	8,070,854		$	7,686,345

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)



	For the Three Months Ended												For the Nine Months Ended
	September 30,		Yield/		June 30,		Yield/		September 30,		Yield/		September 30,		Yield/		September 30,		Yield/
	2019		Rate		2019		Rate		2018		Rate		2019		Rate		2018		Rate
NET INTEREST MARGIN

Assets
Loans (FTE)⁽¹⁾⁽³⁾	$	6,042,822	4.93	%	$	5,949,332	4.97	%	$	5,657,390	4.66	%	$	5,935,427	4.95	%	$	5,541,600	4.58	%
Securities and interest-bearing bank deposits (FTE) ⁽¹⁾	1,226,270		2.58	%	1,279,032		2.75	%	1,289,178		2.73	%	1,273,594		2.73	%	1,250,952		2.79	%
Total Interest-Earning Assets (FTE) ⁽¹⁾	7,269,092		4.53	%	7,228,364		4.58	%	6,946,568		4.30	%	7,209,021		4.55	%	6,792,552		4.25	%
Noninterest-earning assets	780,960				758,110				715,461				763,417				702,938
Total Assets	$	8,050,052			$	7,986,474			$	7,662,029			$	7,972,438			$	7,495,490

Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits	$	3,933,091	0.61	%	$	3,777,016	0.59	%	$	3,657,439	0.40	%	$	3,796,768	0.58	%	$	3,627,308	0.34	%
Time deposits	863,714		1.75	%	870,603		1.72	%	786,912		1.18	%	866,746		1.68	%	718,164		1.03	%
Short-term borrowings	323,041		1.99	%	533,716		2.27	%	569,666		1.81	%	489,562		2.21	%	614,103		1.61	%
Long-term borrowings	234,497		4.51	%	211,087		5.01	%	185,401		5.24	%	210,353		4.96	%	135,368		5.05	%
Total Interest-Bearing Liabilities	5,354,343		1.05	%	5,392,422		1.11	%	5,199,418		0.84	%	5,363,429		1.08	%	5,094,943		0.71	%
Noninterest-bearing deposits	1,560,478				1,497,199				1,447,948				1,507,826				1,426,566
Other liabilities	101,328				87,429				44,261				90,956				40,492
Shareholders' equity	1,033,903				1,009,424				970,402				1,010,227				933,489
Total Noninterest-Bearing Funding Sources	2,695,709				2,594,052				2,462,611				2,609,009				2,400,547
Total Liabilities and Shareholders' Equity	$	8,050,052			$	7,986,474			$	7,662,029			$	7,972,438			$	7,495,490

Net Interest Margin (FTE) (annualized)⁽¹⁾			3.76	%			3.75	%			3.67	%			3.75	%			3.71	%



FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
	September 30,			June 30,			September 30,
	2019			2019			2018
Loan Portfolio Detail
Commercial Loan Portfolio:
Commercial, financial, agricultural and other	$	1,210,936		$	1,236,424		$	1,116,204
Commercial real estate	2,124,240			2,118,582			2,136,431
Real estate construction	334,533			361,028			249,498
Total Commercial	3,669,709			3,716,034			3,502,133

Consumer Loan Portfolio:
Closed-end mortgages	1,081,170			1,060,348			1,008,411
Home equity lines of credit	585,050			519,093			524,927
Real estate construction	85,748			80,826			48,897
Total Real Estate - Consumer	1,751,968			1,660,267			1,582,235

Auto loans	553,617			515,569			476,536
Direct installment	46,704			40,568			33,415
Personal lines of credit	70,441			63,155			59,927
Student loans	7,122			7,466			8,536
Total Other Consumer	677,884			626,758			578,414
Total Consumer Portfolio	2,429,852			2,287,025			2,160,649
Total Portfolio Loans	6,099,561			6,003,059			5,662,782
Loans held for sale	20,288			16,036			8,287
Total Loans	$	6,119,849		$	6,019,095		$	5,671,069


	September 30,			June 30,			September 30,
	2019			2019			2018
ASSET QUALITY DETAIL
Nonperforming Loans:
Loans on nonaccrual basis	$	16,227		$	15,665		$	17,921
Troubled debt restructured loans on nonaccrual basis	11,074			10,914			13,876
Troubled debt restructured loans on accrual basis	8,024			8,975			8,052
Total Nonperforming Loans	$	35,325		$	35,554		$	39,849
Other real estate owned ("OREO")	1,622			1,884			3,874
Repossessions ("Repos")	486			319			135
Total Nonperforming Assets	$	37,433		$	37,757		$	43,858
Loans past due in excess of 90 days and still accruing	2,054			2,656			1,647
Classified loans	50,719			49,975			50,079
Criticized loans	128,691			117,976			141,591

Nonperforming assets as a percentage of total loans, plus OREO and Repos	0.61		%	0.63		%	0.77		%
Allowance for credit losses	$	50,035		$	51,061		$	50,746

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)



	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2019			2019			2018			2019			2018
Net Charge-offs (Recoveries):
Commercial, financial, agricultural and other	$	729		$	301		$	2,516		$	1,952		$	2,834
Real estate construction	(74		)	(42		)	(92		)	(158		)	(99		)
Commercial real estate	1,301			(38		)	(36		)	1,521			2,288
Residential real estate	366			(15		)	226			427			709
Loans to individuals	1,412			1,221			915			3,625			2,852
Net Charge-offs	$	3,734		$	1,427		$	3,529		$	7,367		$	8,584

Net charge-offs as a percentage of average loans outstanding (annualized) ⁽⁴⁾	0.25		%	0.10		%	0.25		%	0.17		%	0.21		%
Provision for credit losses as a percentage of net charge-offs	72.52		%	198.67		%	83.90		%	130.83		%	128.52		%
Provision for credit losses	$	2,708		$	2,835		$	2,961		$	9,638		$	11,032



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% for 2019 and 2018.
⁽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 Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2019			2019			2018			2019			2018

Net Income	$	26,644		$	27,280		$	25,149		$	78,513		$	80,500
Intangible amortization	865			745			817			2,364			2,430
Tax benefit of amortization of intangibles	(182		)	(156		)	(172		)	(496		)	(510		)
Net Income, adjusted for tax affected amortization of intangibles	27,327			27,869			25,794			80,381			82,420

Average Tangible Equity:
Total shareholders' equity	$	1,033,903		$	1,009,424		$	970,402		$	1,010,227		$	933,489
Less: intangible assets	292,529			286,781			288,570			288,749			280,485
Tangible Equity	741,374			722,643			681,832			721,478			653,004
Less: preferred stock	—			—			—			—			—
Tangible Common Equity	$	741,374		$	722,643		$	681,832		$	721,478		$	653,004

⁽⁸⁾Return on Average Tangible Common Equity	14.62		%	15.47		%	15.01		%	14.90		%	16.88		%

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 Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2019			2019			2018			2019			2018

Core Net Income:
Total Net Income	$	26,644		$	27,280		$	25,149		$	78,513		$	80,500
Merger & acquisition related expenses	3,738			34			24			3,772			1,634
Tax benefit of merger & acquisition related expenses	(785		)	(7		)	(5		)	(792		)	(343		)
⁽⁵⁾Core net income	29,597			27,307			25,168			81,493			81,791
Average Shares Outstanding Assuming Dilution	98,547,898			98,600,609			100,490,812			98,615,787			99,197,568
⁽⁶⁾ Core Earnings per common share (diluted)	$	0.30		$	0.28		$	0.25		$	0.83		$	0.82

Intangible amortization	865			745			817			2,364			2,430
Tax benefit of amortization of intangibles	(182		)	(156		)	(172		)	(496		)	(510		)
Core Net Income, adjusted for tax affected amortization of intangibles	$	30,280		$	27,896		$	25,813		$	83,361		$	83,711

⁽⁹⁾ Core Return on Average Tangible Common Equity	16.20		%	15.48		%	15.02		%	15.45		%	17.14		%


	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2019			2019			2018			2019			2018
Core Return on Average Assets:
Total Net Income	$	26,644		$	27,280		$	25,149		$	78,513		$	80,500
Total Average Assets	8,050,052			7,986,474			7,662,029			7,972,438			7,495,490
Return on Average Assets	1.31		%	1.37		%	1.30		%	1.32		%	1.44		%

Core Net Income ⁽⁵⁾	$	29,597		$	27,307		$	25,168		$	81,493		$	81,791
Total Average Assets	8,050,052			7,986,474			7,662,029			7,972,438			7,495,490
⁽⁷⁾Core Return on Average Assets	1.46		%	1.37		%	1.30		%	1.37		%	1.46		%

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)



DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES

	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2019			2019			2018			2019			2018
Core Efficiency Ratio:
Total Noninterest Expense	$	54,897		$	52,229		$	49,530		$	156,856		$	145,532
Adjustments to Noninterest Expense:
Unfunded commitment reserve	(466		)	612			82			(235		)	41
Intangible amortization	865			745			817			2,364			2,430
Merger and acquisition related	3,738			34			24			3,772			1,634
Noninterest Expense - Core	$	50,760		$	50,838		$	48,607		$	150,955		$	141,427

Net interest income, fully tax equivalent	$	68,875		$	67,581		$	64,311		$	202,398		$	188,682
Total noninterest income	22,179			21,906			19,757			62,957			68,108
Net securities gains	(9		)	(6		)	—			(15		)	(8,102		)
Total Revenue	$	91,045		$	89,481		$	84,068		$	265,340		$	248,688

Adjustments to Revenue:
Derivative mark-to-market	(45		)	(17		)	—			(88		)	789
Total Revenue - Core	$	91,090		$	89,498		$	84,068		$	265,428		$	247,899

⁽¹⁰⁾Core Efficiency Ratio	55.73		%	56.80		%	57.82		%	56.87		%	57.05		%


	September 30,			June 30,			September 30,
	2019			2019			2018
Tangible Equity:
Total shareholders' equity	$	1,039,030		$	1,021,831		$	972,931
Less: intangible assets	320,505			286,545			288,028
Tangible Equity	718,525			735,286			684,903
Less: preferred stock	—			—			—
Tangible Common Equity	$	718,525		$	735,286		$	684,903

Tangible Assets:
Total assets	$	8,152,027		$	8,070,854		$	7,686,345
Less: intangible assets	320,505			286,545			288,028
Tangible Assets	$	7,831,522		$	7,784,309		$	7,398,317

⁽¹²⁾Tangible Common Equity as a percentage of Tangible Assets	9.17		%	9.45		%	9.26		%

Shares Outstanding at End of Period	98,319,081			98,499,937			100,361,434
⁽¹¹⁾Tangible Book Value Per Common Share	$	7.31		$	7.46		$	6.82

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.