First Commonwealth Financial : 1Q 2026 Earnings Release Webcast Presentation

Published: 2026-04-29 13:04:10 ET FCF

Published on 04/29/2026 at 01:04 pm EDT

NYSE: FCF

1Q 2026 Earnings Release Webcast Presentation April 29, 2026

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:

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 or its customers must comply;

the soundness of other financial institutions; (6) 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 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.

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.

1Q 2026 Earnings Webcast Presentation

Diversified balance sheet and revenue streams continue to support the fundamental earnings of the company

$57.9 million

Core Pre-tax pre-provision income(1)

1.92%

Core PTPP ROAA(1)

1.37%

Reserve coverage ratio

$5.9 billion

Available liquidity

$395.0 million

Excess capital(2)

9.7%

TCE ratio(1)

Non-GAAP measures

Core EPS of $0.37 was a decrease of $0.06 from the previous quarter

and an increase of $0.05 from the prior year quarter

The net interest margin was 3.92%, a 6 basis point decrease from the previous quarter

Average deposits grew by $67.1 million, or 2.7% annualized from the previous quarter

Total loans (excluding loans held for sale) decreased $74.2 million, or 3.2% annualized from the previous quarter

Provision expense was $10.7 million, which represented a $3.7 million increase from the previous quarter due to a $4.2 million increase in specific reserves

Operating expense increased by $1.3 million from the previous quarter

Fee income (excluding security gains) increased by $0.1 million

The core efficiency ratio increased 259 basis points to 55.4%

Tangible book value per share increased 4.3% (annualized) from the previous quarter

A total of 1,284,457 shares were repurchased with an aggregate value of $22.7 million during the quarter

The Board of Directors approved a 3.7% increase in the quarterly dividend

Represents excess capital above the bank-level Total Capital ratio regulatory "well capitalized" requirement of 10.0%

$ in millions

(1) Taxable equivalent

Net interest income (FTE) of $109.3 million decreased $4.2 million from LQ but increased $13.5 million YoY

Net interest margin of 3.92% decreased 6bps from LQ but increased 30bps YoY

Cost of deposits was 1.79% in the current quarter compared to 1.83% LQ

Cost of funds was 1.86% in the current quarter compared to 1.91% LQ

Approximately $4.7 billion, or 50%, of the

$9.7 billion loan portfolio is variable

Average duration of the loan portfolio is

2.6 years

There were no floating rate macro swaps that matured in 1Q26, but $175 million will mature in the remainder of 2026

(2)

(3)

Average

Average loans decreased $170.1 million from LQ but increased $497.4 million YoY

The yield on loans decreased 9bps from LQ but increased 11bps YoY

Total loans(1) decreased $314.0 million from the previous quarter primarily due to the sale of $210.4 million (at close) of held for sale commercial loans

CRE loans decreased $207.2 million from LQ

Commercial Construction loans decreased $34.7 million from LQ

C&I loans decreased $9.4 million from LQ

1-4 Family RE decreased $40.2 million from LQ Partially offset by..

Equipment finance loans increased $53.5 million from LQ

$ in millions

Includes loans held for sale

Taxable equivalent yield 6

Includes $747, $693 and $486 million Equipment Finance Loans in 1Q26, 4Q25 and 1Q25, respectively

Average deposits grew $67.1 million or 2.7% annualized from LQ

Average deposits increased $518.6 million, or 21.0% annualized from prior year quarter

Average interest-bearing and savings deposits increased $91.2 million from LQ

Average noninterest-bearing deposits decreased $37.7 million from LQ

Average time deposits increased $13.6 million from LQ

The total cost of deposits decreased 4bps from LQ

Total period-end deposits increased $158.9 million, or 6.3% annualized from LQ

Noninterest-bearing deposits currently comprise 23.2% of total deposits

$ in millions

Change from

1Q26 4Q25 1Q25 4Q25 1Q25

Interchange

$3.7

$4.0

$3.7

($0.3)

$0.0

Service Charges

5.5

5.8

5.4

(0.3)

0.1

Trust

3.4

3.0

0.0

0.4

Retail Brokerage

1.8

1.7

1.1

0.1

0.7

Insurance

1.5

1.2

2.1

0.3

(0.6)

BOLI

1.8

1.7

1.5

0.1

0.3

Gain on sale of mortgage loans

2.2

1.9

1.4

0.3

0.8

Gain on sale of SBA loans

1.6

2.1

1.3

(0.5)

0.3

Gain on sale of Assets

0.6

0.1

0.5

SWAP fees

0.1

0.0

0.8

0.1

(0.7)

Other fees

2.2

2.4

2.3

(0.2)

(0.1)

Total Fee Income

$24.4 $24.3 $22.7

$0.1

$1.7

Gain of sale of securities

0.2 0.4 (5.1)

(0.2)

5.3

Gain on VISA exchange

0.0 0.0 5.1

0.0

(5.1)

Derivative mark-to-market

0.0 0.0 (0.2)

0.0

0.2

Total Noninterest Income

$24.6 $24.7 $22.5

($0.1)

$2.1

Fee income increased $0.1 million from LQ and increased $1.7 million YoY

Insurance and retail brokerage increased

$0.4 million from LQ

Gain on sale of mortgage loans increased

$0.3 million from LQ and $0.8 million YoY

- 1Q26 mortgage originations of $91.3 million decreased by $10.3 million from LQ

Card-related interchange income decreased by $0.3 million from LQ

Service charges decreased by $0.3 million from LQ

Fee income represented 18.4% of total operating revenue

Please refer to the appendix for disclosures regarding non-GAAP measures

$ in millions 8

Change from

Total operating expense increased $1.3

Salaries and benefits Occupancy

Furniture and equipment PA shares tax

Data processing Professional fees FDIC insurance Operational losses

Loss on sale or write-down of assets Other operating expenses

Total operating expense Intangible amortization Merger Expenses

Total noninterest expense

1Q26 4Q25 1Q25 4Q25 1Q25

$42.9

$42.3

$40.4

$0.6

$2.5

5.6

5.0

5.7

0.6

(0.1)

4.8

5.0

4.2

(0.2)

0.6

1.3

0.5

1.3

0.8

0.0

4.2

3.8

0.0

0.4

1.1

1.5

1.6

(0.4)

(0.5)

1.6

1.5

1.4

0.1

0.2

0.9

1.1

0.8

(0.2)

0.1

0.6

0.3

0.2

0.3

0.4

11.2

11.5

10.7

(0.3)

0.5

$74.2 $72.9 $70.1

1.3 1.4 1.1

0.1 0.2 0.1

$1.3

(0.1)

$4.1

0.2

0.0

$75.6 $74.5 $71.3

$1.1

$4.3

million from LQ and increased $4.1

million YoY

Salaries and benefits increased $0.6 million from LQ and $2.5 million YoY

Occupancy increased $0.6 million from LQ due to snow removal

PA Shares Tax increased by $0.8 million from LQ and remained flat YoY

Other professional fees decreased by

$0.4 million from LQ and $0.5 million YoY

FTEs of 1,592 increased 25 from LQ and increased 54 YoY in part due to the acquisition of CenterBank

(1)

Please refer to the appendix for disclosures regarding non-GAAP measures

(1)

Provision expense of $10.7 million increased $3.7 million from LQ

The allowance for credit losses as a percentage of end-of-period loans was 1.37% as compared to 1.32% in LQ

Nonperforming loans of $92.3 million increased $0.6 million from LQ

- After March 31, 2026, two commercial credits with an outstanding balance of $5.6 million with specific reserves of $3.3 million were sold or paid off

Net Charge-offs of $8.2 million decreased $3.1 million from LQ

Net charge-offs as a percentage of period-to-date average loans, annualized 10

(1)

Strong capital levels allow us to continue to return capital to shareholders

There were 1,284,457 shares repurchases in 1Q 2026; remaining capacity under the current program was $25.0 million as of March 31, 2026

On April 28, 2026, the Board of Directors authorized an additional $25 million share repurchase program

Net payout ratio represents common stock dividends and share repurchases less share issuances and stock

compensation-related items, excluding acquisition-related items, divided by net income attributable to common stock 11

1Q 2026 Earnings Release Webcast Presentation

As of March 31, 2026

Total Available

Amount

Used

Net Availability

Internal Sources:

Unencumbered Securities

$630.0

Other (Excess Pledged)

$130.0

External Sources:

FHLB

$2,735.0

$7.6

$2,727.4

Federal Reserve

$1,069.3

Brokered Deposits

$1,223.3

$15.0(1)

$1,208.3

Other (Repo Lines)

$160.0

Total Liquidity

$5,947.6

$22.6

$5,925.0

(2)

$ in millions

Acquired from Centric

Uninsured deposits include intercompany deposits of $158.7 million based on the FDIC's revised instructions for reporting uninsured deposits 13

$175mm of fixed macro swaps are scheduled to mature in 2026

Under these swaps, FCB receives a fixed rate of approximately 50-100bps and pays 1mSOFR (currently 3.66%)

The NIM benefit of the swap terminations is greater in a high rate environment

Cumulative NIM Impact: Flat Rate Scenario(3)

o Under our current rate forecast, the cumulative benefit is approximately an additional 2bps by YE 2026

Cumulative NIM Impact: Baseline Scenario(2)

$ in millions

Reflects contractual runoff of notional balances outstanding

Estimated cumulative impact to the net interest margin based on contractual maturities and the company's internal forecast as of March 31, 2026 14

Estimated cumulative impact to the net interest margin based on contractual maturities assuming rates remain unchanged from March 31, 2026

Conservative investment portfolio intended to act as a pool of liquidity

There were $195.1mm of investment securities purchased during the quarter with a weighted average life of 4.2 years

One callable security was redeemed in the first quarter, resulting in a $229 thousand gain

Low credit risk; 94% of portfolio consists of Agency, CMO and MBS

Average securities to total interest-earning assets of 14%

AOCI/Tangible common equity was 5.9% at March 31, 2026, an increase from 5.6% at

December 31, 2025

$1.6B

35% HTM/

65% AFS

(1) EOP balances, includes AFS, the unrealized AFS loss and HTM securities as of March 31, 2026

$ in millions 15

Strong, granular, well-diversified depository

Average deposit account size ~$20,000

$9.9B

Mar 31, 2026

Average retail account size ~$12,500

Average business account size

~$73,500

77% of deposits were insured or secured at March 31, 2026(1)

Short duration provides repricing opportunity

Specials have been primarily at shorter terms (3-7 months)

Approximately 65% of every dollar from promotional rate specials in 1Q26 was new money

77%

Insured or Secured(1)

(1) Uninsured deposits Include intercompany deposits of $158.7 million based on the FDIC's revised instructions for

reporting uninsured deposits 16

EOP balances, unless noted as of March 31, 2026, $ in millions

33.3%

3,148.8

195.0 2.1%

Other

Total

Total Loans

$9.8B

Mar 31, 2026

1Q 26

% of total

loans

Owner-occupied CRE

$ 765.6

8.1%

Multifamily

606.2

6.4%

Retail

642.1

6.8%

Office

351.4

3.7%

Office - Medical

49.0

0.5%

Hospitality

221.4

2.3%

Industrial Distr./Warehouse

256.4

2.7%

Healthcare Facilities

61.7

0.7%

Granular portfolios with well-reasoned hold levels

Stable geographic footprint in familiar markets:

Pittsburgh

Columbus

Cincinnati

Cleveland

Eastern PA

Strong credit metrics

Well reserved

Loans >$3 million are formally reviewed by committee annually

Annual in-depth Industry Studies analyze key credit metrics for each CRE segment

EOP balances as of March 31, 2026

$ in millions 17

Risk profile reflects well-diversified, granular portfolio and conservative credit culture

$353.0M

Mar 31, 2026

Office credits >$1 million (90% of Office portfolio balances) are formally reviewed annually

Average Office loan size is $1.1 million

Average loan size >$1 million is $5.9 million

- 11 loans >$10 million

Approximately $64 million are located in central business districts (~14% of total office portfolio)

Approximately 80% are recourse

Commitment

Balance

Average:

Commit Vacancy Rent/SF DSCR WA LTV

Stable credit metrics and stable markets

Office Maturity Schedule(1)

Class A

$ 221.0

$ 8.8

15%

$ 21.04

1.37

60%

Non-Class A

87.1

3.8

19%

16.06

1.64

39%

Medical

44.9

3.7

12%

24.76

1.39

36%

Total

$ 353.0

$ 5.5

15%

$ 20.62

1.46

45%

Balances as of March 31, 2026; CRE Office portfolio excludes owner-occupied, office properties under construction and

commitments <$1 million 18

Loan-to-value as of the most recent appraisal or at origination

$ in millions

1Q 2026 Earnings Release Webcast Presentation

Operating Revenue 1Q26 4Q25 3Q25 2Q25 1Q25

Net Interest Income

$109.0

$113.2

$111.1

$106.2

$95.5

Tax equivalent adjustment

Net Interest Income (FTE) Noninterest Income (Reported)

Less: Realized gains / (losses) on securities Less: Derivative mark-to-market

0.3 0.4 0.4 0.4 0.3

109.3 113.6 111.5 106.6 95.8

24.6 24.7 24.9 24.7 22.5

0.2 0.4 0.4 0.0 0.0

0.0 0.0 0.0 0.0 (0.2)

Total Noninterest Income (Operating)

Total Operating Revenue Average Assets

$24.4

$133.7 12,225

$24.3

$137.9 12,230

$24.5

$136.0 12,210

$24.7

$131.3 12,096

$22.7

$118.5 11,681

Operating Revenue / Average Assets (%) 4.37% 4.51% 4.46% 4.34% 4.06%

Operating Expense 1Q26 4Q25 3Q25 2Q25 1Q25

Operating Revenue

1Q26

4Q25

3Q25

2Q25

1Q25

Net Interest Income

$109.0

$113.2

$111.1

$106.2

$95.5

Tax equivalent adjustment

0.3

0.4

0.3

Net Interest Income (FTE)

109.3

113.6

111.5

106.6

95.8

Noninterest Income (Reported)

24.6

24.7

24.9

24.7

22.5

Less: Realized gains / (losses) on securities

0.2

0.4

0.0

Less: Derivative mark-to-market

0.0

(0.2)

Total Noninterest Income (Operating)

$24.4

$24.3

$24.5

$24.7

$22.7

Total Operating Revenue

$133.7

$137.9

$136.0

$131.3

$118.5

Average Assets

12,225

12,230

12,210

12,096

11,681

Operating Revenue / Average Assets (%)

4.37%

4.51%

4.46%

4.34%

4.06%

Operating Expense

1Q26

4Q25

3Q25

2Q25

1Q25

Noninterest Expense

$75.6

$74.5

$72.8

$76.3

$71.3

Less: Intangible amortization

1.4

1.5

1.3

1.1

Less: Merger and acquisition related

0.1

0.2

4.0

0.1

Total Operating Expense

$74.1

$72.8

$71.1

$71.0

$70.1

Average Assets

12,225

12,230

12,210

12,096

11,681

Operating Expense / Average Assets (%)

2.43%

2.38%

2.33%

2.35%

2.40%

Core Efficiency Ratio(1)

55.4%

52.8%

52.3%

54.1%

59.1%

Core Pre-tax Pre-Provision Net Income (Reported)

$57.9

$63.2

$62.9

$58.7

$46.9

Average Diluted Shares Outstanding

102.4

103.6

104.8

103.9

101.9

Core Pre-tax Pre-Provision Net Income per share

$0.57

$0.61

$0.60

$0.56

$0.46

Noninterest Expense

$75.6

$74.5

$72.8

$76.3

$71.3

Less: Intangible amortization

Less: Merger and acquisition related

1.4 1.5 1.5 1.3 1.1

0.1 0.2 0.2 4.0 0.1

Total Operating Expense $74.1 $72.8 $71.1 $71.0 $70.1

Average Assets 12,225 12,230 12,210 12,096 11,681

Operating Expense / Average Assets (%) 2.43% 2.38% 2.33% 2.35% 2.40%

Core Efficiency Ratio(1)

55.4%

52.8%

52.3%

54.1%

59.1%

Core Pre-tax Pre-Provision Net Income (Reported) $57.9 $63.2 $62.9 $58.7 $46.9

Average Diluted Shares Outstanding 102.4 103.6 104.8 103.9 101.9

Core Pre-tax Pre-Provision Net Income per share $0.57 $0.61 $0.60 $0.56 $0.46

$ in millions

(1) Core Efficiency Ratio is calculated as Operating Expense as a percentage of Operating Revenue

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. 20

Disclaimer

First Commonwealth Financial Corporation published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 17:03 UTC.