Indiana, PA, January 28, 2025 - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the fourth quarter and full year of 2024.

(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 may 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.    

•Net income of $35.8 million and diluted earnings per share of $0.35 represent an increase of $3.8 million, or $0.04 per share from the previous quarter and a decrease of $9.0 million, or $0.09 per share from the fourth quarter of 2023

•Core pre-tax pre-provision net revenue (PPNR)(1) totaled $51.4 million, an increase of $0.4 million from the previous quarter and a decrease of $3.6 million from the fourth quarter of 2023

•Average deposits increased $207.1 million, or 8.7% annualized, compared to the prior quarter

•Total loans increased $23.5 million, or 1.0% annualized, from the previous quarter, driven by growth in the Equipment Finance and Commercial Real Estate portfolios

•Net interest income (FTE) of $95.4 million decreased $1.4 million from the previous quarter and decreased $0.6 million from the fourth quarter of 2023

•Noninterest income (excluding a $0.2 million gain on investment securities in 3Q 2024) of $25.3 million decreased $0.8 million from the previous quarter

•Noninterest expense (excluding $0.3 million of merger-related expenses in 4Q 2024) of $69.0 million decreased $1.0 million from the previous quarter

•Total shareholders’ equity decreased $4.5 million from the previous quarter due to a $19.4 million increase in unrealized losses in accumulated other comprehensive income (AOCI) from the previous quarter and share repurchases totaling $7.9 million

•Core return on average assets (ROAA) was 1.23% as compared to 1.08% in the previous quarter and 1.56% in the fourth quarter of 2023

•Core pre-tax pre-provision ROAA(1) for the quarter ended December 31, 2024 was 1.76% as compared to 1.72% in the prior quarter and 1.91% in the fourth quarter of 2023

•The net interest margin of 3.54% decreased two basis points from the prior quarter and decreased 11 basis points from the fourth quarter of 2023

•The core efficiency ratio(1) of 56.1% improved 59 basis points from the previous quarter

•Bank-level Total Regulatory Capital ratio of 13.6%, which represents $333.0 million in excess capital above the regulatory “well capitalized” requirement of 10.0%

•A total of 476,979 shares at a weighted average price of $16.60 were repurchased during the fourth quarter of 2024 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was $6.7 million as of December 31, 2024

•The provision for credit losses was $6.5 million, a decrease of $4.1 million compared to the previous quarter

•The allowance for credit losses as a percentage of end-of-period loans was 1.32%, as compared to 1.41% in the previous quarter

•Total nonperforming loans decreased $13.3 million from the previous quarter

•Net charge-offs on loans totaled $13.7 million, an increase of $4.9 million from the previous quarter

◦Approximately $8.0 million of the quarterly net charge-offs were loans specifically reserved for in previous quarters

◦Net charge-offs (annualized) as a percentage of average loans outstanding was 0.61% in the fourth quarter of 2024 as compared to 0.39% in the previous quarter

•The company sold its remaining Visa-B shares in January 2025, resulting in a gain of approximately $5.1 million that will be recognized in the first quarter of 2025. The proceeds from the sale offset commensurate losses the company incurred as the result of the sale of securities with a book value of $53.7 million carrying a yield of 2.6% followed by the purchase of securities with a yield of approximately 5.4%

•Net income of $142.6 million and diluted earnings per share of $1.39

◦Core net income(1) was $142.7 million, or $1.40 diluted earnings per share, compared to $172.7 million, or $1.70 diluted earnings per share in the prior year

•Core pre-tax pre-provision income(1) of $207.6 million decreased $14.0 million from the prior year

•The return on average assets (ROAA) for the year ended December 31, 2024 was 1.22% as compared to 1.42% in the prior year

•Core pre-tax pre-provision ROAA(1) for the year ended December 31, 2024 was 1.78% as compared to 2.00% in the prior year

•The core efficiency ratio(1) increased 244 basis points to 55.36% compared to the prior year

•Average deposits grew $451.1 million, or 5.0% compared to the prior year

◦End of period deposits grew $485.7 million, or 5.3% compared to the prior year

•Total loans grew $37.2 million, or 0.4% compared to the prior year

•The loan-to-deposit ratio was 93.4% for the year ended December 31, 2024 as compared to 97.9% in the prior year

“Despite deposit pricing pressure challenges, higher credit costs, and six months of lost interchange revenue from the Durbin amendment, we ended 2024 with a robust pre-tax pre-provision ROA of 1.76% and an efficiency ratio of 56.07%, demonstrating the strength of our organization,” stated T. Michael Price, President and Chief Executive Officer. “With historic highs in customer satisfaction and net promoter scores, we’re not just growing profitably but also building deeper trust and stronger connections with our customers.” Price continued, “Last year laid the foundation for sustainable growth, and as we move into 2025, our focus on mid-single-digit loan growth, core deposit acquisition, and operational efficiency will propel us forward.”

Net income for the fourth quarter of 2024 was $35.8 million, or $0.35 per share, compared to $32.1 million, or $0.31 per share in the third quarter of 2024 and $44.8 million, or $0.44 per share for the fourth quarter of 2023.

Net income for the year ended December 31, 2024 was $142.6 million, or $1.39 per share, compared to $157.1 million, or $1.54 per share for the same period in 2023.

Net interest income (FTE) of $95.4 million decreased $1.4 million from the previous quarter and decreased $0.6 million from the prior year quarter. The decrease from the previous quarter was primarily due to a two basis point decrease in the net interest margin and a $219.5 million decrease in lower-yielding interest bearing bank deposits.

The net interest margin for the fourth quarter of 2024 was 3.54%, a decrease of two basis points from the previous quarter and a decrease of 11 basis points from the fourth quarter of 2023. The total cost of funds decreased nine basis points due to a $442.9 million decrease in higher-cost short-term borrowings, partially offset by a $115.7 million increase in long-term borrowings and a 12 basis point decrease in the yield on loans. The total cost of deposits decreased one basis point to 2.07% as compared to the previous quarter.

Total average deposits increased $207.1 million, or 8.7% annualized in the fourth quarter of 2024 as compared to the previous quarter primarily due to a large commercial customer deposit received at the end of the previous quarter. Total end-of-period deposits decreased $67.5 million, or 2.7% annualized, from the previous quarter primarily due to seasonal withdrawals of public fund deposits.

Provision for credit losses totaled $6.5 million in the fourth quarter of 2024 as compared to $10.6 million in the previous quarter. The decrease in provision expense during the quarter was primarily driven by higher specific reserves in the previous quarter and improved quantitative factors and loan mix.

Nonperforming loans totaled $61.5 million, a decrease of $13.3 million from the previous quarter and an increase of $22.0 million from the fourth quarter of 2023. Nonperforming loans represented 0.68% of total loans as compared to 0.83% and 0.44% for the periods ended September 30, 2024 and December 31, 2023, respectively.

At December 31, 2024, criticized loans totaled $224.2 million, a decrease of $17.8 million from the previous quarter.

During the fourth quarter of 2024, net charge-offs were $13.7 million as compared to net charge-offs of $8.8 million in the previous quarter and $16.3 million in the fourth quarter of 2023. The increase from the prior quarter was primarily driven by the charge-off of three commercial credits totaling $8.0 million, for which $7.0 million in specific reserves had been previously provided.

Net charge-offs (annualized) as a percentage of average loans were 0.61%, 0.39% and 0.72% for the periods ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

Noninterest income (excluding $0.2 million gain on investment securities in 3Q 2024) totaled $25.3 million for the fourth quarter of 2024, as compared to $24.5 million for the third quarter of 2024 and $24.3 million for the fourth quarter of 2023. The $0.8 million increase from the previous quarter was primarily due to a $0.7 million increase in swap fee income, a $0.5 million increase in gain on sale of Mortgage loans and a $0.5 million gain on a limited partnership included in other revenue, partially offset by a $0.9 million decrease income from bank owned life insurance (BOLI).

For the year ended December 31, 2024, noninterest income (excluding $0.2 million gain sale of investment securities in 2024 and $0.1 million loss on sale of investment securities in 2023) totaled $99.0 million, an increase of $2.3 million from the prior year. The increase from the prior year was primarily due to a $1.8 million increase in gain on sale of Mortgage loans, a $1.5 million increase gain on sale of SBA loans, a $1.5 million increase in BOLI income, a $1.3 million increase in Trust income and a $1.1 million increase in service charges, offsetting a $6.8 million decrease in card-related interchange income due to the Bank being subject to six months of the Durbin amendment.

Noninterest expense (excluding $0.3 million and $0.2 million of merger related expenses in 4Q 2024 and 4Q 2023, respectively) totaled $69.0 million for the fourth quarter of 2024, as compared to $70.1 million for the third quarter of 2024 and $65.0 million for the fourth quarter of 2023. The $1.0 million decrease from the previous quarter was primarily the result of a $1.3 million decrease in operational losses and a $0.6 million decrease in salaries and benefits, partially offset by a $0.8 million increase in accrued Pennsylvania shares tax obligations.

The core efficiency ratio was 56.07% during the fourth quarter of 2024 as compared to 56.66% in the previous quarter and 53.00% in the fourth quarter of 2023.

For the year ended December 31, 2024, noninterest expense (excluding $0.4 million of merger related expenses and $0.4 million loss on the early redemption of subordinated debt in 2024 and $9.0 million of merger related expenses in 2023) totaled $270.0 million, as compared to $260.9 million in the prior year. The $9.1 million increase from the prior year was primarily driven by a $6.4 million increase in salaries and benefits, a $1.1 million increase in Pennsylvania shares tax obligations and a $0.6 million increase in occupancy costs, partially offset by a $0.4 million decrease in other professional fees and a $0.3 million decrease in FDIC insurance.

The core efficiency ratio was 55.36% for the year ended December 31, 2024 as compared to 52.91% in the previous year.

Full time equivalent staff was 1,512 at December 31, 2024, 1,500 at September 30, 2024, and 1,475 at December 31, 2023.

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.13 per share, which represents a 4.0% increase from the fourth quarter of 2023. The cash dividend is payable on February 21, 2025 to shareholders of record as of February 7, 2025. This dividend represents a 3.1% projected annual yield utilizing the January 27, 2025 closing market price of $16.77.

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at December 31, 2024 were 14.6%, 12.9%, 10.6% and 12.1%, respectively. First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full year 2024 on Wednesday, January 29, 2025 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.

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services Company with 124 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Pittsburgh and Harrisburg, 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.

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, and could be affected by many factors, including, but not limited to: (1) volatility and disruption in national and international financial markets; (2) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (3) inflation, interest rate, commodity price, securities market and monetary fluctuations; (4) 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; (5) the soundness of other financial institutions; (6) political instability; (7) impairment of First Commonwealth’s goodwill or other intangible assets; (8) acts of God or of war or terrorism; (9) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (10) changes in consumer spending, borrowings and savings habits; (11) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (12) technological changes; (13) acquisitions and integration of acquired businesses; (14) First Commonwealth’s ability to attract and retain qualified employees; (15) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (16) the ability to increase market share and control expenses; (17) 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; (18) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (19) 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 (20) 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.

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.

Ron Wahl

Communications and Media Relations

Phone: 724-463-6806

E-mail: RWahl@fcbanking.com

Ryan M. Thomas

Vice President / Finance and Investor Relations

Phone: 724-463-1690

E-mail: RThomas1@fcbanking.com