NYSE: FCF

2020 KBW Winter Financial Services Symposium

February 13-14, 2020

2

FORWARD-LOOKING STATEMENTS

This presentation 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 our 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:

  • Local, regional, national and international economic conditions and the impact they may have on First Commonwealth and its customers;
  • volatility and disruption in national and international financial markets;
  • the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board;
  • inflation, interest rate, commodity price, securities market and monetary fluctuations;
  • the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth must comply;
  • the soundness of other financial institutions;
  • political instability;
  • impairment of First Commonwealth's goodwill or other intangible assets;
  • acts of God or of war or terrorism;
  • the timely development and acceptance of new products and services and perceived overall value of these products and services by users;
  • changes in consumer spending, borrowings and savings habits;
  • changes in the financial performance and/or condition of First Commonwealth's borrowers;
  • technological changes;
  • acquisitions and integration of acquired businesses;
  • First Commonwealth's ability to attract and retain qualified employees;
  • changes in the competitive environment in First Commonwealth's markets and among banking organizations and other financial service providers;
  • the ability to increase market share and control expenses;
  • 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;
  • the reliability of First Commonwealth's vendors, internal control systems or information systems;
  • 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
  • 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.

3

2020 KBW Winter Financial Services Symposium

PERFORMANCE TRENDS

Core EPS ($)(1)

Core ROAA (%)(1)

Core ROTCAE (%)(1)

Efficiency Ratio (%)(1)

(1) Please refer to the appendix for a reconciliation of non‐GAAP measures

4

2020 KBW Winter Financial Services Symposium

PERFORMANCE HIGHLIGHTS

Trailing 5 Quarters

2014Y

2015Y

2016Y

2017Y

2018Y

2019Y

4Q18

1Q19

2Q19

3Q19

4Q19

Earnings growth

Operating revenue(1)

$248

$254

$267

$309

$334

$357

$86

$85

$89

$91

$92

Provision for credit losses

11

15

18

5

13

15

1

4

3

3

5

Operating expense(2)

171

161

157

186

191

204

49

49

51

51

53

Core net income(2)

$44

$51

$61

$75

$102

$108

$27

$25

$27

$30

$27

PTPPNR(2)

$77

$93

$110

$123

$143

$153

$37

$36

$39

$40

$39

Core EPS(2)

$0.47

$0.57

$0.69

$0.79

$1.03

$1.10

$0.27

$0.25

$0.28

$0.30

$0.27

Core EPS Growth YoY (2)

6.8%

21.3%

21.1%

14.5%

30.4%

6.8%

50.0%

13.6%

(3.4%)

3.4%

8.0%

Return to shareholders

Dividend per share

$0.28 .

$0.28

$0.28

$0.32

$0.35

$0.40

$0.09

$0.10

$0.10

$0.10

$0.10

Tangible book value per share

6.03

6.23

6.20

6.34

6.98

7.49

6.98

7.21

7.46

7.31

7.49

Period-end close

$9.22

$9.07

$14.18

$14.32

$12.08

$14.51

$12.08

$12.60

$13.47

$13.28

$14.51

Balance sheet trends (EOP)

Investment securities and cash

$1,429

$1,403

$1,303

$1,291

$1,434

$1,378

$1,434

$1,427

$1,365

$1,310

$1,378

Commercial loans

2,578

2,851

3,102

3,432

3,571

3,735

3,571

3,644

3,716

3,670

3,735

Consumer loans

1,882

1,839

1,784

1,990

2,215

2,470

2,215

2,237

2,303

2,450

2,470

Total loans

4,460

4,690

4,886

5,422

5,786

6,205

5,786

5,881

6,019

6,120

6,205

Noninterest bearing deposits

989

1,117

1,269

1,417

1,466

1,690

1,466

1,511

1,528

1,658

1,690

Total deposits

$4,315

$4,196

$4,948

$5,581

$5,898

$6,678

$5,898

$6,131

$6,156

$6,678

$6,678

Borrowings

1,268

1,592

949

795

907

436

907

750

790

318

436

Equity

$716

$720

$750

$888

$975

$1,056

$975

$998

$1,022

$1,039

$1,056

Profitability

Core Return on average assets(2)

0.70%

0.79%

0.92%

1.04%

1.36%

1.35%

1.39%

1.27%

1.37%

1.46%

1.29%

Core Return on average TCE(2)

8.0%

9.2%

10.7%

12.8%

15.9%

15.3%

16.1%

14.6%

15.5%

16.2%

14.9%

Net interest margin(1)

3.27%

3.28%

3.32%

3.57%

3.71%

3.75%

3.70%

3.75%

3.75%

3.76%

3.73%

Core Efficiency ratio(1)(2)

68.9%

63.4%

58.7%

60.2%

57.2%

57.0%

57.5%

58.2%

56.8%

55.7%

57.2%

(1)

Taxable equivalent

(2)

Please refer to the appendix for a reconciliation of non-GAAP measures

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2020 KBW Winter Financial Services Symposium

FRANCHISE OVERVIEW

  • Commercially-orientedcommunity bank with 147 retail branches in Pennsylvania and Ohio(1)
  • Active in four major metro markets:
    • Pittsburgh, PA
    • Columbus, OH
    • Cincinnati, OH
    • Cleveland, OH

FCF Branches (133)

Santander Branch Acquisition (14)

FCF Mortgage LPO (3)

FCF Commercial LPO (3)

  • Total Assets: $8.3 billion
  • Total Gross Loans: $6.2 billion
  • Total Deposits: $6.7 billion
  • Market Cap: $1.4 billion

(as of February 4, 2020)

As of December 31, 2019

6

(1) Pro forma branch count includes the acquisition of 14 Santander branches completed on September 9, 2019

2020 KBW Winter Financial Services Symposium

INVESTMENT THESIS

  • Authentic, mission‐driven community bank
    • Commercially‐focused loan portfolio, balanced by consumer lending
    • Exceptionally low cost of funds, driven by loyal customer base and commercial deposits
    • Diversified geography through legacy Pennsylvania operations and expansion into Ohio markets
    • Diversified revenue streams and product mix, with approximately 25% of revenue from fee income sources (including trust, brokerage, insurance, mortgage and SBA lending)
  • Proven ability to control expenses and deliver positive operating leverage
    • Significant cost reduction through core system conversion and retail restructuring
    • Redeploying cost savings into revenue‐generating positions, digital transformation and new business initiatives (e.g., mortgage, SBA)
  • Disciplined growth strategies aimed at efficiently deploying capital
    • Targeting mid‐single‐digit loan growth funded by commensurate growth in deposits
    • Successful track record of low‐risk acquisitions
  • Risk and governance culture aligned with expectations of long‐term stakeholders

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2020 KBW Winter Financial Services Symposium

WHO IS FIRST COMMONWEALTH?

1,500+

$6.2 billion

2013Y

2019Y

Loans

Core ROATCE(1)

7.6%

15.3%

employees

$6.7 billion

Core ROAA(1)

0.69%

1.35%

Deposits

Efficiency(1)

67.1%

57.0%

434,452

7

Named to the Forbes

consumer

Consecutive years of

2019 "World's

customers

Core EPS(1) growth

Best Banks" list

35,979

15,823

$2.0 billion

147

business

advisory

community

and

in commercial and

customers

consumer loan

banking

insurance

customers

originations in 2019

offices

named "Top Places to

2019

$40+

Charitable Contributions

million

Work in Pittsburgh" by

Dollars: $1.4 million

per year in

the Pittsburgh Post Gazette

Hours: 1,000+

Federal, State

Organizations: 650+

and Local

taxes

(1) Please refer to the appendix for a reconciliation of non‐GAAP measures

Ranked #2

SBA Lender in Pittsburgh and

#3 in

Cleveland

5

acquisitions in

5

years

Serves

Pittsburgh

Cleveland

Columbus

Cincinnati

MSAs

Operations in

28 counties

throughout PA

and OH

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2020 KBW Winter Financial Services Symposium

MISSION DRIVEN COMPANY

Our Mission: To improve the financial lives of our neighbors and their businesses.

  • We will promote financial health through four life-changing habits:
    • Manage - Manage the money you make
    • Save - Save the money you may need soon
    • Borrow - Borrow only the money you'll need
    • Protect - Protect the money you can
  • We will develop the most customer-focused team of financial professionals in our markets
  • We will support our communities as active leaders and as good corporate citizens

Customer Focus. Integrity. Excellence. Accountability. Inclusion.

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2020 KBW Winter Financial Services Symposium

ORGANIZATIONAL CHANGES 2012 - PRESENT

New

New

CEO

New Bank

New

New CCO

New

Commercial

Experienced

President

New

Retail

Lending

New

New

Wealth

New

Leadership

CIO

CFO

Head

Bank

Head

Mortgage

Head

Consumer

New

Head

Lending Head

HR

Head

Regional Business

Four New Regional

Model

Presidents

Consumer/SBA

Re-launched mortgage

Expanded SBA lending

Expanded consumer

Lending

offering after 10-year

talent

and geographic

indirect lending talent and

absence

footprint

capabilities

Retail Platform

Transformation

Market

Cleveland

Community

LPOs and

Financial

Bank

of 14

First

2 Mortgage

DCB

Foundation

Acquisition

Expansion

LPO

Acquisition

acquisition of

Corp.

(OH)

Santander

13 branches

Acquisition

branches

Acquisition

(OH)

(OH)

(OH)

(PA)

Digital

Transformation

IT Infrastructure

Legacy core team augmented with new talent

Enhances the brand through local accountability and cross- functional sales

Focused efforts on enhancing consumer lending capabilities

Transformative restructuring in 2016

Building out commercial and mortgage offerings

New IT platform enables cutting-edge technology

IT core as well as 40 of 60 systems replaced

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2020 KBW Winter Financial Services Symposium

INVESTMENTS ALIGNED WITH REVENUE GROWTH

The redeployment of back office and retail restructuring savings in 2014 and 2015 has allowed for profitable investments in revenue producing lines of businesses like Mortgage, SBA and Indirect Auto

Operating Leverage(1)

Operating Revenue

5-year CAGR:

Revenue: 7.6%

Operating Expense

Expense: 3.6%

Operating

($4.9)

+$15.8

+$17.5

+$12.7

+$20.0

+$10.8

Leverage($M)(1)

Core Efficiency

68.9%

63.4%

58.7%

60.2%

57.2%

57.0%

Ratio (%)(1)

$ in millions

11

(1) Please refer to the appendix for a reconciliation of non-GAAP measures

2020 KBW Winter Financial Services Symposium

EXPENSE CONTROL: OPERATING EXPENSE TREND(1)

(1)

$191.0

$203.6

$185.9

$162.1

$161.0

$156.5

42%

43%

45%

43%

48%

44%

58%

57%

57%

52%

55%

56%

(2)

  • Successfully redeployed back office savings into revenue producing business lines over the past five years
  • Largest investments include reentry into the traditional mortgage and SBA businesses, corporate banking build-out and retail expansion in Ohio, and customer facing technology
  • Expense increase from 2016 to 2019 driven by acquisitions

(1)

Please refer to the appendix for a reconciliation of non‐GAAP measures

(2)

Excludes $8.6 million legal settlement

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2020 KBW Winter Financial Services Symposium

FEE INCOME GROWTH: DIVERSIFIED REVENUE STREAMS

$ in millions

2014

2015

2016

2017

2018

2019

Service charges

$15.7

$15.3

$15.9

$18.6

$18.2

$18.9

Interchange

14.2

14.5

15.0

18.8

20.2

21.7

Trust

6.0

5.8

5.4

7.1

7.9

8.3

Retail brokerage and insurance

6.5

8.5

8.0

8.8

7.4

7.6

BOLI

5.5

5.4

5.4

5.7

6.7

6.0

SWAP fees

0.5

0.8

2.4

2.0

1.9

3.4

Gain on sale of mortgage loans

0.4

2.4

4.1

5.4

5.4

7.7

Gain on sale of SBA loans

0.0

0.0

0.0

0.0

1.9

3.1

Gain on sale of other assets

4.5

1.9

1.4

1.8

3.4

1.7

Other fees

7.3

7.2

6.2

7.6

6.7

7.3

Total fee income

$60.6

$61.8

$63.8

$75.8

$79.7

$85.7

Gain on sale of securities

0.6

(0.2)

0.6

5.0

8.1

0.0

Derivative mark-to-market

(0.3)

(0.3)

0.2

(0.5)

0.8

(0.2)

Total noninterest income

$60.9

61.3

$64.6

$80.3

$88.6

$85.5

Fee Income/ Avg. Assets

0.96%

0.97%

0.96%

1.05%

1.05%

1.07%

Fee Income/ Operating Revenue

24.5%

24.4%

23.9%

24.5%

23.9%

24.0%

$79.7

$85.7

$75.8

$60.6

$61.8

$63.8

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2020 KBW Winter Financial Services Symposium

TOWN AND COUNTRY STRATEGY

First Commonwealth's rural geographies have proven to be a stable source of low-cost funding, which enabled our strategy of leveraging our commercial lending business in faster growing metro markets through low-risk, accretive acquisitions.

Note: Branches as of December 31, 2019. Deposit data as of June 30, 2019

14

Source: S&P Global Market Intelligence

2020 KBW Winter Financial Services Symposium

REGIONAL LEADERSHIP MODEL

First Commonwealth transitioned to a regional leadership model in 2018

  • Leadership and accountability lies with the regional presidents
  • Better connectedness between lines of business
  • Wealth referrals increasing
  • SBA loans sourced from Corporate banking and branches
  • Mortgage - Insurance referrals increasing
  • Key customer satisfaction survey metrics continue to improve
  • Deposit growth has outstripped loan growth in 2019

Total Loans(1)

Total Deposits

YTD

%,

YTD

%,

Balance

Growth

Ann.

Balance

Growth

Ann.

Northern Ohio

$727.8

$139.1

23.6%

$702.6

$70.9

11.2%

Central Ohio

893.0

73.1

8.9%

713.3

19.6

2.8%

Cincinnati Metro

306.3

71.7

30.6%

160.8

8.9

5.9%

Pittsburgh Metro

1,932.0

(74.1)

(3.7%)

2,153.5

180.1

9.1%

Community PA

1,597.3

160.5

11.2%

2,915.1

541.5

22.8%

Other

748.9

49.3

7.0%

80.7

(3.1)

(0.0%)

Total

$6,205.3

$419.6

7.3%

$6,726.0

$817.9

13.8%

Santander Acquisition

$100.0

$471.4

Total w/o Santander:

$319.6

5.5%

$346.5

5.9%

OH

$ in millions, as of December 31, 2019

(1) Loan balances are based on portfolio location and do not necessarily represent the location of the collateral

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2020 KBW Winter Financial Services Symposium

A COMMERCIALLY-FOCUSED COMMUNITY BANK

Loan Portfolio Composition ($mm)

Loan Portfolio Repricing ($mm)

Non-Owner Occupied

CRE / Total

Capital Ratio: 187.7%(1)

C&D Loans / Total

Capital: 41.0%(1)

$6.2

billion

60% Commercial

40% Retail

  • Good mix of commercial and consumers loans
  • Reentry into the Mortgage business in 2014 has

enabled the flexibility to add duration to the loan

$4,460

portfolio

  • Indirect auto has become a good source of yield
  • Competition from banks and non-banks in consumer lending remains a headwind
    1. Reflects bank level, regulatory data as of December 31, 2019
      Note: As of December 31, 2019; includes loans held for sale

Interest rate floors exist for 31% of variable rate loans

WA Floor of 3.51% < WA

Rate of 4.90%

$6.2

billion

56% Variable

44% Fixed

Loan Portfolio Trends

$6,205

$5,786

$5,422

$4,690 $4,886

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2020 KBW Winter Financial Services Symposium

STABLE LOW-COST DEPOSIT ADVANTAGE

Deposit Composition ($mm)(1)

Geographic Breakdown(1)

16% Business/84% Retail

66% Business/34% Retail

$6.7

$6.7

billion

billion

25% Business/75% Retail

44% Business/56% Retail

  • 55% of the Bank's deposits are sourced from rural Western Pennsylvania and Northern Ohio where customers tend to be more loyal than larger metropolitan markets
  • The Bank's current cost of deposits of 0.56% is in the 80th percentile among U.S. banks $2-$10 billion
  • Deposits have grown steadily since 2015 though thoughtful M&A and organic production
  • Noninterest-bearingdeposits currently comprise 25% of total deposits

Deposit Costs (%)(3)

(2)

(1) QTD average balance as of December 31, 2019

(2) U.S. Banks $2 to $10 billion17

(3) For the quarter ended December 31, 2019; Source S&P Global Market Intelligence

2020 KBW Winter Financial Services Symposium

REDUCED LOAN PORTFOLIO RISKS

Increased granularity and decreased concentration risk

  • Expanding consumer, middle market and small business relationships
  • Geographic expansion decreases single market or location risk
  • Adopted a regional banking model

Strengthened credit culture

  • Enhanced tracking, monitoring and managing credit risk
  • Improved portfolio management
    • Rotated out of riskier sectors (e.g. oil and gas, coal)
    • Utilized capital markets to exit underperforming names
    • Adopted strict concentration and segment limits

Commitments > $15 million

Provision Expense/ Avg. Loans

# commitments

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2020 KBW Winter Financial Services Symposium

LONG-TERM ASSET QUALITY TRENDS

Nonperforming Assets / Assets(1) (%)

Net Charge-Offs / Loans (%)

Reserves / Nonperforming Loans (%)

Nonperforming Loans / Loans (%)

(1) Nonperforming assets include nonaccrual loans and leases, renegotiated loans and leases, and foreclosed or repossessed assets

19

Strategic Planning Update

DIGITAL STRATEGY

  • Create a mobile-centric,full-service banking capability that stands on its own without

the need for the customer to go to a branch or call the Engagement Center.

  • Enhance ability to proactively engage customers in virtual conversations and provide

personalized Community Bank customer experiences.

  • Deliver digital platforms and tools which use contemporary design standards (User-Interface (UI)
    and User-Experience(UX)) and promote customer engagement and education around
    ongoing enhancements.
  • Improve digital infrastructure to support higher levels of security and integration of new
    functionality.
  • Drive revenue growth, operational efficiency and superior customer experience through the

digitalization of processes and by embracing evolving payments technology.

  • Evolve data analytics through education of data availability and tools, governance, and end user talent with outcome of better productivity, focused marketing, lowered risk and improved customer satisfaction.

20

Strategic Planning Update

DIGITAL AND PAYMENTS

  • Consumer deposit accounts
  • Consumer loans and lines of credit
  • Home equity loans

Account

Opening

  • Bank when, where and on whatever device you prefer
  • Ongoing upgrades and enhancements to improve
    experience

Ease of Use

  • Online chat (product assistance)
  • Secure chat for online banking
  • Secure chat for online account opening

• User controls and alerts

Digital and

Security

(debit card control)

Service

Payments

• Digital tokens, online

Focus

credential protection

• One-time Passcode (OTP)

Money Financial

Movement Fitness

  • Mobile wallets
  • Quick bill payments with Alexa

Manager

  1. Budgets
  1. Goal setting and alerts o Account aggregation

21

Strategic Planning Update

CONSUMER AND SMALL BUSINESS STRATEGY

  • Developed a Retail banking model that adapts to changing customer preferences
    • Investments in alternative delivery channels and digital capabilities
    • Modified staffing levels and skill sets (universal bankers) to address lower transaction levels, while continuing to provide a full set of solutions
  • Reemphasized SBA lending and strengthened talent beginning in 2016
    • Hired EVP Consumer and Small Business Lending with 30+ years of experience in December 2016
    • Currently #2 SBA lender in Pittsburgh, PA and #3 in Cleveland, OH
  • Renewed focus on indirect auto lending beginning in 2018
    • Hired SVP Indirect Lending Executive with 20+ years of experience in September 2018

22

2020 KBW Winter Financial Services Symposium

MERGER AND ACQUISITION STRATEGY

  • Pursuing a measured approach to M&A, focusing on low-risk accretive acquisitions in preferred geographic markets
    • Bias is for a tight, drivable footprint including the Pittsburgh, Columbus, Cleveland, and Cincinnati metro markets
    • Preference for smaller, low-risk market extension deals in new metro markets, or market overlap deals in existing markets that offer strong depositories or cost takeout opportunities
    • Transactions must make sense both strategically and financially
  • Building on lessons learned and experience from prior acquisitions - demonstrating an ability to execute and integrate
    • Acquisition of First Community Bank closed on October 1, 2015: Less than 1% dilution to tangible book value per share
    • Acquisition of 13 FirstMerit branches closed on December 2, 2016: 4.5% premium on deposits and immediately accretive to GAAP and cash earnings per share, as low-cost deposits were used to pay down higher-cost borrowings
    • Acquisition of DCB Financial Corp. closed on April 3, 2017: Expanded FCF's footprint and provided a broader geography for mortgage and small business lending growth in central Ohio
    • Acquisition of Foundation Bank closed on May 1, 2018: Immediately accretive to FCF's tangible book value and nominally accretive to FCF's earnings
    • Acquisition of 14 Santander branches closed on September 9, 2019: 7.05% premium on deposits and immediately accretive to GAAP and cash earnings per share, proceeds were used to pay down short-term borrowings and reduced loan-to-deposit ratio to ~90%

23

2020 KBW Winter Financial Services Symposium

MERGER AND ACQUISITION PRIORITIES

Strategic Priorities

Primary Strategic Objective

  1. Acquire banks or branches in Pittsburgh to increase deposit balances and consolidate branches
  2. Acquire banks or branches in Columbus, Cincinnati and Northern Ohio to increase scale and market penetration
  3. Acquire banks in Western PA community markets to increase deposit balances and consolidate branches
  4. Acquire banks in deposit-rich rural Ohio markets
  5. Acquire banks or branches in contiguous markets
  6. Explore non-bank acquisitions to include RIA, trust company, specialty finance, insurance and FinTech
  • Grow primary deposit relationships
  • Build scale
  • Grow primary deposit relationships
  • Become the best business bank
  • Build scale
  • Grow primary deposit relationships
  • Build scale
  • Grow primary deposit relationships
  • Build commercial banking loans and deposits
  • Grow primary deposit relationships
  • Expand wealth business
  • Continue to invest in digital channels
  • Become the best business bank

24

2020 KBW Winter Financial Services Symposium

M&A EXPANSION UPDATE

Successful Expansion Efforts

Ohio Loan Portfolio ($MM)(1)

  • Leveraging significant management experience in Ohio market
  • Opened a business center in Cleveland in April 2014
    • Targeting commercial customers in northeast OH
  • Acquired First Community Bank in Columbus, OH in October '15
  • Opened two mortgage production offices in central and northeast OH in 2016
  • Completed acquisition of 13 branches from FirstMerit in December '16
  • Completed acquisition of DCB Financial Corp in April '17
  • Completed acquisition of Foundation Bank in Cincinnati, OH in May '18
  • First Commonwealth's Ohio franchise is now comprised of:
    • $1.7 billion in loans
    • $1.6 billion in deposits
    • 34 banking branches
    • 3 loan production offices
  • Completed acquisition of 14 former Santander branches in Central PA in September '19

Recent Ohio Acquisitions

Announcement

Completion

Deal Value

Total Loans

Total Deposits

Target

Date

Date

$MM(2)

Acquired $MM

Acquired $MM

First Community Bank

5/11/2015

10/1/2015

15

61

90

13 FirstMerit Branches

7/27/2016

12/2/2016

33

102

620

DCB Financial Corp.

10/3/2016

4/3/2017

106

383

484

Foundation Bank

1/10/2018

5/1/2018

58

185

141

Total Ohio Acquisitions

$245

$831

$1,806

Total Ohio Portfolio (1)

$1,709

$1,590

14 Santander Branches

4/22/2019

9/6/2019

$33

$100

$471

(1) Includes all OH based consumer loans, Commercial Real Estate loans with properties located in OH and C&I loans with

25

borrowers headquartered in OH

(2) Deal value at announcement

2020 KBW Winter Financial Services Symposium

2020 STRATEGIC PRIORITIES

Strategic Priorities

  1. Grow, diversify and leverage the loan portfolio
  2. Strengthen primary bank relationships to optimize NIM
  3. Improve relationship banking execution
  4. Improve efficiency and the client experience

Financial Targets

Moderate Risk Profile:

Net Charge-offs:15-20 bps

Return on Average Assets:

+ 1.55%

Positive Operating Leverage

Efficiency Ratio:

< 55.0%

26

APPENDIX

27

2020 KBW Winter Financial Services Symposium

NON-GAAP MEASURES

Operating Revenue

2019Y

2018Y

2017Y

2016Y

2015Y

2014Y

2013Y

Net Interest Income

$269.9

Tax equivalent adjustment

1.7

Net Interest Income (FTE)

271.6

Noninterest Income (Reported)

85.5

Less: Realized gains / (losses) on securities

0.0

Less: Derivative mark‐to‐market

(0.2)

Total Noninterest Income (Operating)

$85.7

Total Operating Revenue

$357.3

Average Assets

8,030

$252.2

$228.8

$199.0

$188.5

$183.7

$184.7

2.0

4.2

3.9

3.4

3.3

4.0

254.2

233.0

202.9

191.9

187.0

188.7

88.6

80.3

64.6

61.3

60.9

60.2

8.1

5.0

0.6

(0.2)

0.6

(1.2)

0.8

(0.5)

0.2

(0.3)

(0.3)

1.4

$79.7

$75.8

$63.8

$61.8

$60.6

$60.0

$333.9

$308.8

$266.7

$253.7

$247.6

$248.7

7,555

7,210

6,661

6,399

6,281

6,132

Operating Revenue / Average Assets (%)

4.45%

4.42%

4.28%

4.00%

3.97%

3.94%

4.06%

Operating Expense

2019Y

2018Y

2017Y

2016Y

2015Y

2014Y

2013Y

Noninterest Expense

$210.0

$195.6

$200.3

$159.9

$163.9

$171.2

$168.8

Less: Unfunded commitment reserve

(0.5)

(0.2)

1.1

(0.3)

1.4

(0.1)

0.8

Less: Intangible amortization

3.4

3.2

3.1

0.5

0.6

0.6

1.1

Less: Merger and acquisition related

3.5

1.6

10.2

3.2

0.9

0.0

0.0

Total Operating Expense

$203.6

$191.0

$185.9

$156.5

$161.0

$170.7

$166.9

Average Assets

8,030

7,555

7,210

6,661

6,399

6,281

6,132

Operating Expense / Average Assets (%)

2.54%

2.53%

2.58%

2.35%

2.52%

2.72%

2.72%

Core Efficiency Ratio(1)

57.0%

57.2%

60.2%

58.7%

63.4%

68.9%

67.1%

Pre‐tax Pre‐Provision Net Income

$153.7

$142.9

$122.9

$110.2

$92.7

$76.9

$81.8

Core Earnings per Share

2019Y

2018Y

2017Y

2016Y

2015Y

2014Y

2013Y

Net Income (GAAP)

$105.3

Less: Merger and acquisition (after tax)

2.8

Less: Realized (gains) / losses on securities (after tax)

0.0

Less: Deferred tax asset writedown

0.0

Core Net Income (Non‐GAAP)

$108.1

Average Diluted Shares Outstanding

98.6

Core Earnings per Share (Non‐GAAP)

$1.10

$107.5

$55.2

$59.6

$50.1

$44.5

$41.5

1.3

6.6

2.1

0.6

0.0

0.0

(6.4)

(3.3)

(0.4)

0.1

(0.4)

0.8

0.0

16.7

0.0

0.0

0.0

0.0

$102.4

$75.2

$61.3

$50.8

$44.1

$42.3

99.2

95.3

88.9

89.4

93.1

97.0

$1.03

$0.79

$0.69

$0.57

$0.47

$0.44

28

2020 KBW Winter Financial Services Symposium

NON-GAAP MEASURES

Core Return on Average Assets (%)

2019Y

2018Y

2017Y

2016Y

2015Y

2014Y

2013Y

Net Income (GAAP)

$105.3

Less: Merger and acquisition (after tax)

2.8

Less: Realized (gains) / losses on securities (after tax)

0.0

Less: Deferred tax asset writedown

0.0

Core Net Income (Non‐GAAP)

$108.1

Average Assets

8,030

Core Return on Average Assets (Non‐GAAP)

1.35%

Tangible Common Equity / Tangible Assets

$107.5

$55.2

$59.6

$50.1

$44.5

$41.5

1.3

6.6

2.1

0.6

0.0

0.0

(6.4)

(3.3)

(0.4)

0.1

(0.4)

0.8

0.0

16.7

0.0

0.0

0.0

0.0

$102.4

$75.2

$61.3

$50.8

$44.1

$42.3

7,555

7,210

6,661

6,399

6,281

6,132

1.36%

1.04%

0.92%

0.79%

0.70%

0.69%

(Tangible Common Equity Ratio)

2019Y

2018Y

2017Y

2016Y

2015Y

2014Y

2013Y

Total Equity

$1,056

$975

$888

$750

$720

$716

$712

Less: Intangible assets

320

287

270

198

166

163

161

Less: Preferred stock

0

0

0

0

0

0

0

Tangible Common Equity

$736

$688

$618

$552

$554

$553

$551

Total Assets

$8,309

$7,828

$7,309

$6,684

$6,567

$6,360

$6,215

Less: Intangible assets

320

287

270

198

166

163

161

Tangible Assets

$7,989

$7,541

$7,039

$6,486

$6,401

$6,197

$6,054

Tangible Common Equity / Tangible Assets

9.2%

9.1%

8.8%

8.5%

8.7%

8.9%

9.1%

29

2020 KBW Winter Financial Services Symposium

NON-GAAP MEASURES

Return on Average Tangible Common Equity (%)

2019Y

2018Y

2017Y

2016Y

2015Y

2014Y

2013Y

Average Equity

$1,020

Less: Average intangible assets

297

Less: Average preferred stock

0

Average Tangible Common Equity

$723

Net Income (GAAP)

$105.3

Less: Intangible amortization (after tax)

2.7

Net Income Adjusted for Intangible Amortization (Non‐GAAP)

$108.0

$942

$855

$743

$719

$719

$728

282

254

168

163

161

162

0

0

0

0

0

0

$660

$601

$575

$556

$558

$566

$107.5

$55.2

$59.6

$50.1

$44.5

$41.5

2.5

2.0

0.3

0.4

0.4

0.7

$110.0

$57.2

$59.9

$50.5

$44.9

$42.2

Return on Average Tangible Common Equity

14.9%

16.7%

9.5%

10.4%

9.1%

8.0%

7.5%

Core Return on Average Tangible Common Equity (%)

2019Y

2018Y

2017Y

2016Y

2015Y

2014Y

2013Y

Average Equity

$1,020

$942

$855

$743

$719

$719

$728

Less: Average intangible assets

297

282

254

168

163

161

162

Less: Average preferred stock

0

0

0

0

0

0

0

Average Tangible Common Equity

$723

$660

$601

$575

$556

$558

$566

Net Income (GAAP)

$105.3

$107.5

$55.2

$59.6

$50.1

$44.5

$41.5

Less: Merger and acquisition (after tax)

2.8

1.3

6.6

2.1

0.6

0.0

0.0

Less: Realized (gains) / losses on securities (after tax)

0.0

(6.4)

(3.3)

(0.4)

0.1

(0.4)

0.8

Less: Deferred tax asset writedown

0.0

0.0

16.7

0.0

0.0

0.0

0.0

Core Net Income (Non‐GAAP)

$108.1

$102.4

$75.2

$61.3

$50.8

$44.1

$42.3

Less: Intangible amortization (after tax)

2.7

2.5

2.0

0.3

0.4

0.4

0.7

Core Net Income Adjusted for Intangible Amortization (Non‐GAAP)

$110.8

$104.9

$77.2

$61.6

$51.2

$44.5

$43.0

Core Return on Average Tangible Common Equity

15.3%

15.9%

12.8%

10.7%

9.2%

8.0%

7.6%

30

2020 KBW Winter Financial Services Symposium

PERFORMANCE RELATIVE TO PEERS

Core ROAA (%)(1)

Efficiency Ratio (%)(1)

Core ROAE (%)(1)

Net Interest Margin (%)(2)

(1) Core ROAA, ROAE and Efficiency Ratios as calculated by S&P Global Market Intelligence and may not agree with management's reported

figures31

(2) Taxable equivalent

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Disclaimer

First Commonwealth Financial Corporation published this content on 13 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2020 05:30:00 UTC