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

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

Financial Summary

(dollars in thousands,	For the Three Months Ended												For the Year Ended
except per share data)	December 31,				September 30,				December 31,				December 31,				December 31,
		2021				2021				2020				2021				2020
Reported Results
Net income	$34,776				$34,092				$25,683				$138,257				$73,447
Diluted earnings per share	$0.37				$0.36				$0.27				$1.44				$0.75
Return on average assets		1.45	%			1.42	%			1.12	%			1.47	%			0.82	%
Return on average equity		12.36	%			12.14	%			9.48	%			12.55	%			6.82	%
Operating Results (non-GAAP)(1)
Core net income	$34,753				$34,131				$26,102				$138,518				$78,896
Core diluted earnings per share	$0.37				$0.36				$0.27				$1.45				$0.81
Core pre-tax pre-provision net revenue	$40,868				$42,913				$40,092				$171,771				$153,819
Provision expense	($2,729		)		$330				$7,680					($1,376	)		$56,718
Net charge-offs		($1,064	)		$2,277				$4,825				$8,410				$17,193
Reserve build/(release)(2)	($1,663		)		($2,853		)		$13,002				($8,787		)		$49,672
Core return on average assets (ROAA)		1.45	%			1.43	%			1.14	%			1.47	%			0.88	%
Core pre-tax pre-provision ROAA		1.71	%			1.79	%			1.75	%			1.83	%			1.71	%
Return on average tangible common equity		17.56	%			17.28	%			13.80	%			17.95	%			10.06	%
Core return on average tangible common equity		17.55	%			17.30	%			14.02	%			17.98	%			10.78	%
Core efficiency ratio		57.06	%			55.27	%			56.00	%			54.69	%			56.28	%
Net interest margin (FTE)		3.23	%			3.23	%			3.26	%			3.26	%			3.32	%

⁽¹⁾ Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures can be found at the end of the financial statements which accompany this release.
⁽²⁾ Reserve build/(release) represents the net change in the Company's allowance for credit losses (ACL) from the prior period.

Fourth Quarter 2021 Highlights

• Net income of $34.8 million and diluted earnings per share totaled $0.37, an increase of $0.7 million, or $0.01 per share from the previous quarter and an increase of $9.1 million, or $0.10 per share from the fourth quarter of 2021

• Core pre-tax pre-provision net revenue (PPNR)⁽¹⁾ totaled $40.9 million, an increase of $0.8 million from the fourth quarter of 2020 and a decrease of $2.0 million from the previous quarter reflecting a decline of $1.7 million in Paycheck Protection Program (PPP) income from the prior quarter

• Total loans (excluding PPP loans) increased $186.1 million, or 11.2% annualized from the previous quarter, driven by both commercial and consumer categories

  • Average loans (excluding PPP loans) increased $141.9 million, or 8.6% annualized, from the previous quarter

• Total PPP loans decreased $80.8 million from the previous quarter resulting in a total PPP loan balance at December 31, 2021 of $71.3 million

• Net interest income (FTE) of $70.5 million decreased $0.4 million from the previous quarter due primarily to a $1.7 million decrease in income recognized on PPP loans

• Noninterest income of $26.1 million (excluding net security gains, which were immaterial) decreased $1.2 million from the previous quarter due primarily to a $1.7 million decrease in gain on sale of Mortgage loans

• Noninterest expense (excluding branch consolidation, early retirement and COVID-19 related expenses, which were immaterial) of $55.5 million increased $0.5 million from the previous quarter

• Average deposits decreased $33.1 million, or 1.6% annualized compared to the prior quarter, including $21.8 million of intentional time deposit runoff

  • End of period deposits grew $46.0 million, or 2.3% annualized, from the previous quarter

  • Average noninterest-bearing deposits grew $5.7 million, or 0.9% annualized, compared to the prior quarter

• Tangible book value per share grew 2.4% annualized compared to the prior quarter

• The Bank was named the #1 Small Business Association (SBA) lender in the SBA’s designated Pittsburgh District for the fiscal year ending September 30, 2021
  

Profitability

• Core return on average assets (ROAA) improved two basis points to 1.45% compared to the previous quarter and increased 31 basis points compared to the fourth quarter of 2020

• Core pre-tax pre-provision ROAA⁽¹⁾ for the quarter ended December 31, 2021 was 1.71% as compared to 1.79% in the prior quarter and 1.75% in the fourth quarter of 2020

• The net interest margin of 3.23% was unchanged from the prior quarter and decreased three basis points as compared to fourth quarter of 2020

• The core efficiency ratio⁽¹⁾ of 57.06% increased 179 basis points from the previous quarter

Strong capital and liquidity positions

• Bank-level Tier 1 Capital ratio of 11.8%, which represents $279.9 million in excess capital above the regulatory “well capitalized” requirement of 8.0%

• A total of 1,447,209 shares were purchased during the fourth quarter at a weighted average price of $14.62 under the company’s previously authorized share repurchase programs

• As previously announced on October 26, 2021, the Board of Directors authorized an additional $25 million share repurchase program. The remaining repurchase capacity under the current program was $20.0 million as of December 31, 2021
  

Asset quality

• The provision for credit losses was ($2.7) million, a decrease of $3.1 million compared to the previous quarter and a decrease of $10.4 million from the fourth quarter of 2020

• The allowance for credit losses as a percentage of end-of-period loans (excluding PPP loans) was 1.37% compared to 1.43% in the previous quarter

• Total criticized loans increased $2.3 million from the previous quarter

  • Total nonperforming assets increased $17.2 million from the previous quarter

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

  • Net charge-offs as a percentage of average loans outstanding (excluding PPP loans, annualized) was (0.06%) in the fourth quarter of 2021 as compared to 0.14% in the previous quarter

Full Year 2021 Highlights

Franchise Growth

• Total loans grew $470.8 million, or 7.5% compared to the prior year (excluding PPP loans)

• Average deposits grew $461.6 million, or 6.3% compared to the prior year, including $479.0 million, or 22.8%, in average noninterest-bearing deposits

• Tangible book value per share grew 7.8% year-over-year
  

Earnings

• For the year ended December 31, 2021, net income was $138.3 million, or $1.44 diluted earnings per share

  • Core net income⁽¹⁾ was $138.5 million, or $1.45 diluted earnings per share, compared to $78.9 million, or $0.81 diluted earnings per share in the prior year

• Core pre-tax pre-provision income⁽¹⁾ grew $18.0 million, or 11.7% from the prior year

• Positive operating leverage for the year ending December 31, 2021

  • Core revenue⁽¹⁾ grew $17.4 million, or 4.7%, from the prior year

  • Core noninterest expense⁽¹⁾ increased $3.7 million, or 1.8%, from the prior year

Profitability

• The core efficiency ratio⁽¹⁾ improved 159 basis points to 54.69% compared to the prior year

• The return on average assets (ROAA) for the year ended December 31, 2021 was 1.47%

  • Core ROAA⁽¹⁾ for the year ended December 31, 2021 was 1.47% as compared to 0.88% in the prior year

  • Core pre-tax pre-provision ROAA⁽¹⁾ for the year ended December 31, 2021 was 1.83% as compared to 1.71% in the prior year

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

Earnings

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

Asset Quality

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

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

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

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

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

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

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

Noninterest Income and Noninterest Expense

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

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

There were no material security gains during 2021 or 2020.

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

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

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

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

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

Dividends and Capital

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

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at December 31, 2021 were 14.6%, 12.2%, 9.7% and 11.3%, respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full year 2021 on Wednesday, January 26, 2022 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-888-330-3181 conference ID # 4651379 or through the company’s web page, http://www.fcbanking.com/InvestorRelations. A replay of the call will be available approximately one hour following the conclusion of the conference by dialing 1-800-770-2030 and entering the conference ID # 4651379. A link to the webcast replay will also be accessible on the company’s webpage for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services Company with 118 community banking offices in 26 counties throughout western and central Pennsylvania and throughout Ohio, as well as business banking operations in Pittsburgh, Pennsylvania, and Canton, Cleveland, Columbus and Cincinnati, Ohio. The Company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson, and Lewis Center, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, equipment finance, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.

Forward-Looking Statements

Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute “forward-looking statements” as well. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate” or words of similar meaning. These forward-looking statements are subject to significant risks, assumptions and uncertainties, including uncertainties regarding the impact of the COVID-19 pandemic, and could be affected by many factors, including, but not limited to: (1) the effects of the COVID-19 pandemic on First Commonwealth and its customers; (2) volatility and disruption in national and international financial markets; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (4) inflation, interest rate, commodity price, securities market and monetary fluctuations; (5) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth or its customers must comply; (6) the soundness of other financial institutions; (7) political instability; (8) impairment of First Commonwealth’s goodwill or other intangible assets; (9) acts of God or of war or terrorism; (10) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (11) changes in consumer spending, borrowings and savings habits; (12) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealth’s ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (17) the ability to increase market share and control expenses; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (20) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (21) other risks and uncertainties described in this report and in the other reports that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. Further, statements about the potential effects of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, clients, third parties and us.

In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Relations:
Jonathan E. 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 Year Ended
	December 31,				September 30,				December 31,				December 31,				December 31,
		2021				2021				2020				2021				2020
SUMMARY RESULTS OF OPERATIONS
Net interest income	$	70,254			$	70,645			$	67,492			$	278,541			$	268,271
Provision for credit losses		(2,729	)			330				7,680				(1,376	)			56,718
Noninterest income		26,071				27,245				26,622				106,757				94,476
Noninterest expense		55,428				55,027				54,552				213,857				215,826
Net income		34,776				34,092				25,683				138,257				73,447
Core net income (5)		34,753				34,131				26,102				138,518				78,896
Earnings per common share (diluted)	$	0.37			$	0.36			$	0.27			$	1.44			$	0.75
Core earnings per common share (diluted) (6)	$	0.37			$	0.36			$	0.27			$	1.45			$	0.81
KEY FINANCIAL RATIOS
Return on average assets		1.45	%			1.42	%			1.12	%			1.47	%			0.82	%
Core return on average assets (7)		1.45	%			1.43	%			1.14	%			1.47	%			0.88	%
Return on average assets, pre-provision, pre-tax		1.71	%			1.79	%			1.73	%			1.82	%			1.64	%
Core return on average assets, pre-provision, pre-tax		1.71	%			1.79	%			1.75	%			1.83	%			1.71	%
Return on average shareholders' equity		12.36	%			12.14	%			9.48	%			12.55	%			6.82	%
Return on average tangible common equity (8)		17.56	%			17.28	%			13.80	%			17.95	%			10.06	%
Core return on average tangible common equity (9)		17.55	%			17.30	%			14.02	%			17.98	%			10.78	%
Core efficiency ratio (2)(10)		57.06	%			55.27	%			56.00	%			54.69	%			56.28	%
Net interest margin (FTE) (1)		3.23	%			3.23	%			3.26	%			3.26	%			3.32	%
Book value per common share	$	11.77			$	11.69			$	11.12
Tangible book value per common share (11)		8.43				8.38				7.82
Market value per common share		16.09				13.63				10.94
Cash dividends declared per common share		0.115				0.115				0.110				0.455				0.440
ASSET QUALITY RATIOS
Nonperforming loans as a percent of end-of-period loans (3)		0.80	%			0.56	%			0.80	%
Nonperforming loans as a percent of end-of-period loans, excluding PPP loans (3)		0.81	%			0.58	%			0.86	%
Nonperforming assets as a percent of total assets (3)		0.59	%			0.41	%			0.62	%
Nonperforming assets as a percent of total assets, excluding PPP loans (3)		0.59	%			0.42	%			0.65	%
Net charge-offs as a percent of average loans (annualized) (4)		(0.06	)%			0.13	%			0.28	%
Net charge-offs as a percent of average loans, excluding PPP loans (annualized) (4)		(0.06	)%			0.14	%			0.30	%
Allowance for credit losses as a percent of nonperforming loans (4)		167.67	%			247.30	%			187.43	%
Allowance for credit losses as a percent of end-of-period loans (4)		1.35	%			1.40	%			1.50	%
Allowance for credit losses as a percent of end-of-period loans, excluding PPP loans (4)		1.37	%			1.43	%			1.61	%
CAPITAL RATIOS
Shareholders' equity as a percent of total assets		11.6	%			11.7	%			11.8	%
Tangible common equity as a percent of tangible assets (12)		8.6	%			8.7	%			8.6	%
Tangible common equity as a percent of tangible assets, excluding PPP loans (12)		8.7	%			8.9	%			9.1	%
Leverage Ratio		9.7	%			9.6	%			9.4	%
Risk Based Capital - Tier I		12.2	%			12.4	%			12.2	%
Risk Based Capital - Total		14.6	%			15.0	%			14.9	%
Common Equity - Tier I		11.3	%			11.5	%			11.2	%

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
	For the Three Months Ended									For the Year Ended
	December 31,			September 30,		December 31,				December 31,			December 31,
		2021			2021		2020				2021			2020
INCOME STATEMENT
Interest income	$	73,530		$	74,196	$	73,306			$	293,838		$	301,209
Interest expense		3,276			3,551		5,814				15,297			32,938
Net Interest Income		70,254			70,645		67,492				278,541			268,271
Provision for credit losses		(2,729	)		330		7,680				(1,376	)		56,718
Net Interest Income after Provision for Credit Losses		72,983			70,315		59,812				279,917			211,553
Net securities gains		—			—		23				16			70
Trust income		2,771			3,118		2,327				11,111			9,101
Service charges on deposit accounts		4,857			4,770		4,321				17,984			16,387
Insurance and retail brokerage commissions		2,134			2,218		1,868				8,502			7,850
Income from bank owned life insurance		1,487			1,486		1,589				6,433			6,552
Gain on sale of mortgage loans		1,940			3,485		5,538				13,555			18,764
Gain on sale of other loans and assets		1,849			2,480		1,676				8,130			4,827
Card-related interchange income		7,069			7,052		6,377				27,954			23,966
Derivative mark-to-market		973			218		(399	)			2,344			(2,521	)
Swap fee income		828			317		724				2,543			1,588
Other income		2,163			2,101		2,578				8,185			7,892
Total Noninterest Income		26,071			27,245		26,622				106,757			94,476
Salaries and employee benefits		31,422			31,066		31,388				119,506			118,961
Net occupancy		3,972			3,960		3,668				16,586			17,647
Furniture and equipment		3,776			4,052		3,925				15,642			15,393
Data processing		2,933			3,196		2,739				12,373			10,543
Pennsylvania shares tax		1,257			1,257		1,254				4,604			4,500
Advertising and promotion		1,154			1,150		879				4,983			4,679
Intangible amortization		900			868		897				3,497			3,689
Other professional fees and services		1,351			1,308		1,131				4,501			3,886
FDIC insurance		565			830		1,062				2,529			2,699
Litigation and operational losses		700			589		373				2,324			1,411
Loss on sale or write-down of assets		80			171		264				303			680
COVID-19 related		92			50		307				449			874
Voluntary early retirement		—			—		118				—			3,422
Branch consolidation		(121	)		—		128				(103	)		2,672
Other operating expenses		7,347			6,530		6,419				26,663			24,770
Total Noninterest Expense		55,428			55,027		54,552				213,857			215,826
Income before Income Taxes		43,626			42,533		31,882				172,817			90,203
Income tax provision		8,850			8,441		6,199				34,560			16,756
Net Income	$	34,776		$	34,092	$	25,683			$	138,257		$	73,447
Shares Outstanding at End of Period		94,233,152			95,209,685		96,130,751				94,233,152			96,130,751
Average Shares Outstanding Assuming Dilution		95,020,353			95,892,304		96,344,398				95,840,285			97,758,965

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
	December 31,				September 30,				December 31,
		2021				2021				2020
BALANCE SHEET (Period End)
Assets
Cash and due from banks	$	84,738			$	94,579			$	100,009
Interest-bearing bank deposits		310,634				240,095				256,572
Securities available for sale, at fair value		1,054,218				1,137,675				843,450
Securities held to maturity, at amortized cost		541,311				548,057				361,844
Loans held for sale		18,583				19,925				33,436
Loans		6,839,230				6,732,580				6,761,183
Allowance for credit losses		(92,522	)			(94,185	)			(101,309	)
Net loans		6,746,708				6,638,395				6,659,874
Goodwill and other intangibles		314,516				315,092				316,820
Other assets		474,385				484,036				496,099
Total Assets	$	9,545,093			$	9,477,854			$	9,068,104
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	2,658,782			$	2,656,229			$	2,319,958
Interest-bearing demand deposits		291,476				265,782				250,353
Savings deposits		4,647,197				4,609,393				4,305,391
Time deposits		385,043				405,081				562,964
Total interest-bearing deposits		5,323,716				5,280,256				5,118,708
Total deposits		7,982,498				7,936,485				7,438,666
Short-term borrowings		138,315				117,754				117,373
Long-term borrowings		182,269				182,519				233,255
Total borrowings		320,584				300,273				350,628
Other liabilities		132,639				128,241				210,193
Shareholders' equity		1,109,372				1,112,855				1,068,617
Total Liabilities and Shareholders' Equity	$	9,545,093			$	9,477,854			$	9,068,104

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

	For the Three Months Ended													For the Year Ended
	December 31,		Yield/		September 30,		Yield/		December 31,		Yield/			December 31,		Yield/		December 31,		Yield/
		2021	Rate			2021	Rate			2020	Rate				2021	Rate			2020	Rate
NET INTEREST MARGIN
Assets
Loans, excluding PPP loans (FTE)(1)(3)	$	6,680,346	3.73	%	$	6,538,477	3.75	%	$	6,387,174	3.90	%		$	6,464,446	3.80	%	$	6,354,749	4.16	%
PPP Loans		111,544	14.44	%		225,262	10.05	%		548,279	4.00	%			312,746	7.41	%		382,590	3.16	%
Securities and interest-bearing bank deposits (FTE) (1)		1,878,755	1.46	%		1,937,385	1.43	%		1,340,756	1.62	%			1,809,417	1.46	%		1,390,804	1.89	%
Total Interest-Earning Assets (FTE) (1)		8,670,645	3.38	%		8,701,124	3.39	%		8,276,209	3.54	%			8,586,609	3.43	%		8,128,143	3.72	%
Noninterest-earning assets		815,872				801,377				845,094					807,455				846,437
Total Assets	$	9,486,517			$	9,502,501			$	9,121,303				$	9,394,064			$	8,974,580
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits	$	4,882,318