First Commonwealth Financial(FCF) - 2024 Q4 - Annual Results

Executive Summary & Key Highlights Financial Summary Table First Commonwealth Financial Corporation reported mixed financial results for Q4 and Full Year 2024, with Q4 net income up quarter-over-quarter but down year-over-year, and full-year net income decreasing from 2023 | (dollars in thousands, except per share data) | December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 (Year) | December 31, 2023 (Year) | | :------------------------------------------ | :---------------- | :----------------- | :---------------- | :----------------------- | :----------------------- | | Reported Results | | | | | | | Net income | $35,849 | $32,086 | $44,827 | $142,572 | $157,063 | | Diluted earnings per share | $0.35 | $0.31 | $0.44 | $1.39 | $1.54 | | Return on average assets | 1.23 % | 1.08 % | 1.56 % | 1.22 % | 1.42 % | | Return on average equity | 10.16 % | 9.19 % | 14.11 % | 10.44 % | 12.80 % | | Operating Results (non-GAAP) | | | | | | | Core net income | $36,067 | $31,933 | $44,964 | $142,709 | $172,697 | | Core diluted earnings per share | $0.35 | $0.31 | $0.44 | $1.40 | $1.70 | | Core pre-tax pre-provision net revenue | $51,388 | $50,949 | $55,028 | $207,551 | $221,505 | | Provision expense | $6,490 | $10,615 | $(1,865) | $29,170 | $14,813 | | Net charge-offs | $13,691 | $8,785 | $16,338 | $31,180 | $30,152 | | Reserve build/(release) | $(7,206) | $2,458 | $(16,619) | $1,188 | $14,812 | | Core return on average assets (ROAA) | 1.23 % | 1.08 % | 1.56 % | 1.22 % | 1.56 % | | Core pre-tax pre-provision ROAA | 1.76 % | 1.72 % | 1.91 % | 1.78 % | 2.00 % | | Return on average tangible common equity | 14.40 % | 13.09 % | 20.78 % | 14.94 % | 19.01 % | | Core return on average tangible common equity | 14.48 % | 13.02 % | 20.85 % | 14.95 % | 20.86 % | | Core efficiency ratio | 56.07 % | 56.66 % | 53.00 % | 55.36 % | 52.91 % | | Net interest margin (FTE) | 3.54 % | 3.56 % | 3.65 % | 3.55 % | 3.81 % | Fourth Quarter 2024 Highlights Q4 2024 saw increased net income and diluted EPS quarter-over-quarter, alongside growth in average deposits and total loans, despite slight decreases in net interest income and margin - Net income increased by $3.8 million to $35.8 million, and diluted EPS rose by $0.04 to $0.35 from the previous quarter, though both decreased from Q4 2023[4] - Core pre-tax pre-provision net revenue (PPNR) increased by $0.4 million from the prior quarter to $51.4 million[4] - Average deposits grew by $207.1 million, or 8.7% annualized, compared to the prior quarter[4] - Total loans increased by $23.5 million, or 1.0% annualized, driven by Equipment Finance and Commercial Real Estate portfolios[8] - Net interest income (FTE) decreased by $1.4 million from the previous quarter to $95.4 million, and the net interest margin decreased by two basis points to 3.54%[8] - The company repurchased 476,979 shares at a weighted average price of $16.60, with $6.7 million remaining under the program[8] - Subsequent to Q4 2024, the company sold its remaining Visa-B shares in January 2025, realizing a gain of approximately $5.1 million, which will be recognized in Q1 2025[7] Full Year 2024 Highlights Full year 2024 net income and diluted EPS decreased due to deposit pricing pressure, higher credit costs, and reduced interchange revenue, yet the company achieved robust pre-tax pre-provision ROA and improved customer satisfaction - Net income for the year ended December 31, 2024, was $142.6 million, or $1.39 per share, down from $157.1 million, or $1.54 per share in 2023[10] - Core net income was $142.7 million, or $1.40 diluted EPS, compared to $172.7 million, or $1.70 diluted EPS in the prior year[14] - Core pre-tax pre-provision income decreased by $14.0 million from the prior year to $207.6 million[14] - Average deposits grew $451.1 million (5.0%) and end-of-period deposits grew $485.7 million (5.3%) compared to the prior year[14] - Total loans grew $37.2 million, or 0.4%, compared to the prior year[14] CEO Commentary CEO T. Michael Price highlighted a robust pre-tax pre-provision ROA and efficiency ratio for 2024, emphasizing strong customer satisfaction and a 2025 strategic focus on loan growth, core deposit acquisition, and operational efficiency - CEO T. Michael Price stated that the company ended 2024 with a robust pre-tax pre-provision ROA of 1.76% and an efficiency ratio of 56.07%, despite deposit pricing pressure, higher credit costs, and lost interchange revenue[9] - The company achieved historic highs in customer satisfaction and net promoter scores, indicating deeper trust and stronger customer connections[9] - For 2025, the strategic focus is on mid-single-digit loan growth, core deposit acquisition, and operational efficiency[9] Detailed Financial Review Earnings Performance First Commonwealth reported Q4 2024 net income of $35.8 million ($0.35 per share), an increase from Q3 2024 but a decrease from Q4 2023, with full-year 2024 net income down from the prior year | Metric | Q4 2024 | Q3 2024 | Q4 2023 | FY 2024 | FY 2023 | | :----- | :------ | :------ | :------ | :------ | :------ | | Net income | $35.8M | $32.1M | $44.8M | $142.6M | $157.1M | | Diluted EPS | $0.35 | $0.31 | $0.44 | $1.39 | $1.54 | Net Interest Income and Margin Analysis Q4 2024 net interest income (FTE) decreased to $95.4 million, primarily due to a two basis point decrease in net interest margin and a reduction in lower-yielding interest-bearing bank deposits, despite a decrease in the total cost of funds - Net interest income (FTE) for Q4 2024 was $95.4 million, a decrease of $1.4 million from Q3 2024 and $0.6 million from Q4 2023[11] - The net interest margin for Q4 2024 was 3.54%, a decrease of two basis points from Q3 2024 and 11 basis points from Q4 2023[12] - The total cost of funds decreased nine basis points, driven by 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[12] - Total average deposits increased $207.1 million (8.7% annualized) in Q4 2024, while total end-of-period deposits decreased $67.5 million (2.7% annualized) due to seasonal public fund withdrawals[13] Noninterest Income and Expense Analysis Noninterest income for Q4 2024 increased due to higher swap fees, mortgage loan sales, and a limited partnership gain, while noninterest expense decreased due to lower operational losses and salaries, though full-year expenses rose - Noninterest income (excluding investment securities gains) totaled $25.3 million for Q4 2024, an increase of $0.8 million from Q3 2024[19] - The increase in noninterest income 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[19] - For FY 2024, noninterest income totaled $99.0 million, an increase of $2.3 million from the prior year, despite a $6.8 million decrease in card-related interchange income due to the Durbin amendment[20] - Noninterest expense (excluding merger-related expenses) totaled $69.0 million for Q4 2024, a $1.0 million decrease from Q3 2024, mainly due to a $1.3 million decrease in operational losses and a $0.6 million decrease in salaries and benefits[21] - For FY 2024, noninterest expense totaled $270.0 million, a $9.1 million increase from the prior year, primarily driven by a $6.4 million increase in salaries and benefits[23] - The core efficiency ratio improved to 56.07% in Q4 2024 from 56.66% in Q3 2024, but increased to 55.36% for FY 2024 from 52.91% in the prior year[22][24] Asset Quality Review Provision for credit losses decreased in Q4 2024, and nonperforming and criticized loans improved, indicating better asset quality, despite an increase in net charge-offs due to specific commercial credits - Provision for credit losses totaled $6.5 million in Q4 2024, a decrease of $4.1 million from Q3 2024, primarily due to higher specific reserves in the previous quarter and improved quantitative factors and loan mix[15] - Nonperforming loans decreased by $13.3 million from the previous quarter to $61.5 million, representing 0.68% of total loans (down from 0.83%)[16] - Criticized loans totaled $224.2 million, a decrease of $17.8 million from the previous quarter[16] - Net charge-offs were $13.7 million in Q4 2024, an increase of $4.9 million from Q3 2024, mainly due to the charge-off of three commercial credits totaling $8.0 million[17] - Net charge-offs (annualized) as a percentage of average loans was 0.61% in Q4 2024, up from 0.39% in Q3 2024[18] - The allowance for credit losses as a percentage of end-of-period loans was 1.32%, down from 1.41% in the previous quarter[8] Dividends and Capital Position First Commonwealth declared a $0.13 per share quarterly common stock dividend, a 4.0% increase from Q4 2023, while maintaining strong capital ratios exceeding fully phased-in Basel III requirements - A common stock quarterly dividend of $0.13 per share was declared, representing a 4.0% increase from Q4 2023[25] - The cash dividend is payable on February 21, 2025, to shareholders of record as of February 7, 2025, with a projected annual yield of 3.1%[25] | Capital Ratio | December 31, 2024 | | :------------ | :---------------- | | Total | 14.6% | | Tier I | 12.9% | | Leverage | 10.6% | | Common Equity Tier I | 12.1% | - First Commonwealth's capital levels exceed the fully phased-in Basel III capital requirements[26] Corporate Information Conference Call Details First Commonwealth will host a conference call on January 29, 2025, to discuss its Q4 and full-year 2024 financial results, with details provided for live access and replay - A quarterly conference call to discuss financial results will be held on Wednesday, January 29, 2025, at 2:00 PM (ET)[27] - Access is available via toll-free dial-in (1-888-330-3181, ID 4651379) or the company's investor relations webpage[27] - A replay will be available approximately one hour after the call for 30 days[27] About First Commonwealth Financial Corporation First Commonwealth Financial Corporation, headquartered in Indiana, Pennsylvania, is a financial services company operating 124 community banking offices across Pennsylvania and Ohio, offering a comprehensive range of banking and financial products - First Commonwealth Financial Corporation (NYSE: FCF) is headquartered in Indiana, Pennsylvania[28] - The company operates 124 community banking offices in 30 counties across western and central Pennsylvania and throughout Ohio[28] - It provides commercial banking, consumer banking, mortgage, equipment finance, wealth management, and insurance products and services through its subsidiaries[28] Forward-Looking Statements This section cautions that the release contains forward-looking statements subject to significant risks, assumptions, and uncertainties, including market volatility, regulatory changes, and economic conditions, advising against undue reliance - The release contains "forward-looking statements" subject to significant risks, assumptions, and uncertainties[29] - Factors that could affect results include volatility in financial markets, changes in monetary and fiscal policies, inflation, interest rate fluctuations, regulatory changes, and technological advancements[29] - Readers are cautioned not to place undue reliance on forward-looking statements, and the company undertakes no obligation to publicly update or revise them[30] Consolidated Financial Data (Unaudited) Summary Results of Operations & Key Financial Ratios This section provides a consolidated summary of the company's operational results and key financial ratios for the three months and full year ended December 31, 2024, and comparative periods, including reported and core net income, EPS, various return metrics, efficiency ratio, net interest margin, and asset quality ratios | (dollars in thousands, except per share data) | Dec 31, 2024 (3M) | Sep 30, 2024 (3M) | Dec 31, 2023 (3M) | Dec 31, 2024 (YTD) | Dec 31, 2023 (YTD) | | :------------------------------------------ | :---------------- | :---------------- | :---------------- | :----------------- | :----------------- | | SUMMARY RESULTS OF OPERATIONS | | | | | | | Net interest income | $95,081 | $96,515 | $95,737 | $378,892 | $385,676 | | Provision for credit losses | $6,490 | $10,615 | $(1,865) | $29,170 | $4,160 | | Noninterest income | $25,335 | $24,698 | $24,297 | $99,231 | $96,609 | | Noninterest expense | $69,304 | $70,070 | $65,180 | $270,745 | $269,917 | | Net income | $35,849 | $32,086 | $44,827 | $142,572 | $157,063 | | Earnings per common share (diluted) | $0.35 | $0.31 | $0.44 | $1.39 | $1.54 | | KEY FINANCIAL RATIOS | | | | | | | Return on average assets | 1.23 % | 1.08 % | 1.56 % | 1.22 % | 1.42 % | | Net interest margin (FTE) | 3.54 % | 3.56 % | 3.65 % | 3.55 % | 3.81 % | | Nonperforming loans and leases as a percent of end-of-period loans and leases | 0.68 % | 0.83 % | 0.44 % | | | | Allowance for credit losses as a percent of end-of-period loans and leases | 1.32 % | 1.41 % | 1.31 % | | | | Shareholders' equity as a percent of total assets | 12.1 % | 11.8 % | 11.5 % | | | | Leverage Ratio | 10.6 % | 10.3 % | 10.0 % | | | Income Statement This table presents the detailed income statement for the three months and full year ended December 31, 2024, and comparative periods, breaking down interest income and expense, noninterest income sources, and noninterest expense categories, leading to net income | (dollars in thousands) | Dec 31, 2024 (3M) | Sep 30, 2024 (3M) | Dec 31, 2023 (3M) | Dec 31, 2024 (YTD) | Dec 31, 2023 (YTD) | | :--------------------- | :---------------- | :---------------- | :---------------- | :----------------- | :----------------- | | INCOME STATEMENT | | | | | | | Interest income | $149,996 | $154,323 | $144,257 | $600,463 | $529,998 | | Interest expense | $54,915 | $57,808 | $48,520 | $221,571 | $144,322 | | Net Interest Income | $95,081 | $96,515 | $95,737 | $378,892 | $385,676 | | Provision for credit losses | $6,490 | $10,615 | $(1,865) | $29,170 | $4,160 | | Total Noninterest Income | $25,335 | $24,698 | $24,297 | $99,231 | $96,609 | | Total Noninterest Expense | $69,304 | $70,070 | $65,180 | $270,745 | $269,917 | | Income before Income Taxes | $44,622 | $40,528 | $56,719 | $178,208 | $197,555 | | Income tax provision | $8,773 | $8,442 | $11,892 | $35,636 | $40,492 | | Net Income | $35,849 | $32,086 | $44,827 | $142,572 | $157,063 | Balance Sheet This table presents the consolidated balance sheet at period end for December 31, 2024, September 30, 2024, and December 31, 2023, detailing assets, liabilities, and shareholders' equity, showing changes in key components like deposits, loans, and borrowings | (dollars in thousands) | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | | :--------------------- | :----------- | :----------- | :----------- | | Assets | | | | | Total Assets | $11,584,936 | $11,983,199 | $11,459,488 | | Loans and leases | $8,983,754 | $8,965,500 | $8,968,761 | | Allowance for credit losses | $(118,906) | $(126,112) | $(117,718) | | Net loans and leases | $8,864,848 | $8,839,388 | $8,851,043 | | Liabilities and Shareholders' Equity | | | | | Total deposits | $9,678,019 | $9,745,552 | $9,192,309 | | Noninterest-bearing demand deposits | $2,249,615 | $2,463,971 | $2,388,533 | | Total interest-bearing deposits | $7,428,404 | $7,281,581 | $6,803,776 | | Total borrowings | $343,124 | $675,113 | $784,592 | | Shareholders' equity | $1,405,165 | $1,409,616 | $1,314,274 | | Total Liabilities and Shareholders' Equity | $11,584,936 | $11,983,199 | $11,459,488 | Net Interest Margin Details This table provides a detailed breakdown of average interest-earning assets and interest-bearing liabilities, along with their respective yields and rates, for the three months and full year ended December 31, 2024, and comparative periods, illustrating the components contributing to the net interest margin | (dollars in thousands) | Dec 31, 2024 (3M) | Yield/Rate | Sep 30, 2024 (3M) | Yield/Rate | Dec 31, 2023 (3M) | Yield/Rate | Dec 31, 2024 (YTD) | Yield/Rate | Dec 31, 2023 (YTD) | Yield/Rate | | :--------------------- | :---------------- | :--------- | :---------------- | :--------- | :---------------- | :--------- | :----------------- | :--------- | :----------------- | :--------- | | NET INTEREST MARGIN | | | | | | | | | | | | Assets | | | | | | | | | | | | Loans and leases (FTE) | $9,034,096 | 5.97 % | $9,004,808 | 6.09 % | $8,974,613 | 5.89 % | $9,013,742 | 6.02 % | $8,714,770 | 5.64 % | | Securities (FTE) | $1,620,823 | 3.43 % | $1,542,792 | 3.34 % | $1,353,240 | 2.85 % | $1,536,812 | 3.27 % | $1,260,854 | 2.37 % | | Total Interest-Earning Assets (FTE) | $10,713,388 | 5.58 % | $10,825,606 | 5.68 % | $10,440,575 | 5.49 % | $10,714,893 | 5.62 % | $10,151,770 | 5.23 % | | Liabilities | | | | | | | | | | | | Interest-bearing demand and savings deposits | $5,703,763 | 2.22 % | $5,657,796 | 2.27 % | $5,540,364 | 1.90 % | $5,636,553 | 2.20 % | $5,508,182 | 1.46 % | | Time deposits | $1,730,251 | 4.32 % | $1,575,975 | 4.40 % | $1,217,356 | 3.81 % | $1,549,999 | 4.32 % | $972,735 | 3.28 % | | Total Interest-Bearing Liabilities | $7,784,191 | 2.81 % | $7,911,189 | 2.91 % | $7,493,260 | 2.57 % | $7,817,555 | 2.83 % | $7,107,160 | 2.03 % | | Net Interest Margin (FTE) (annualized) | | 3.54 % | | 3.56 % | | 3.65 % | | 3.55 % | | 3.81 % | Loan and Lease Portfolio & Asset Quality Details This section provides a detailed breakdown of the loan and lease portfolio by commercial and consumer segments, as well as a comprehensive view of asset quality metrics including nonperforming loans, other real estate owned (OREO), repossessions, and classified/criticized loans | (dollars in thousands) | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | | :--------------------- | :----------- | :----------- | :----------- | | Loan and Lease Portfolio Detail | | | | | Total Commercial | $5,278,060 | $5,221,521 | $5,138,134 | | Total Consumer Portfolio | $3,705,694 | $3,743,979 | $3,830,627 | | Total Portfolio Loans and Leases | $8,983,754 | $8,965,500 | $8,968,761 | | ASSET QUALITY DETAIL | | | | | Total Nonperforming Loans and Leases | $61,456 | $74,723 | $39,472 | | Total Nonperforming Assets | $63,143 | $76,580 | $40,918 | | Criticized loans and leases | $224,175 | $241,962 | $210,187 | | Allowance for credit losses | $118,906 | $126,112 | $117,718 | Net Charge-offs (Recoveries) This table details net charge-offs (recoveries) by loan category for the three months and full year ended December 31, 2024, and comparative periods, also including net charge-offs as a percentage of average loans and the provision for credit losses as a percentage of net charge-offs | (dollars in thousands) | Dec 31, 2024 (3M) | Sep 30, 2024 (3M) | Dec 31, 2023 (3M) | Dec 31, 2024 (YTD) | Dec 31, 2023 (YTD) | | :--------------------- | :---------------- | :---------------- | :---------------- | :----------------- | :----------------- | | Net Charge-offs (Recoveries): | | | | | | | Commercial, financial, agricultural and other | $4,102 | $5,870 | $9,951 | $14,699 | $18,701 | | Commercial real estate | $6,620 | $1,381 | $4,579 | $8,501 | $6,126 | | Loans to individuals | $1,939 | $1,479 | $1,750 | $6,781 | $5,011 | | Net Charge-offs | $13,691 | $8,785 | $16,338 | $31,180 | $30,152 | | Net charge-offs as a percentage of average loans and leases outstanding (annualized) | 0.61 % | 0.39 % | 0.72 % | 0.35 % | 0.35 % | | Provision for credit losses | $6,490 | $10,615 | $(1,865) | $29,170 | $4,160 | Non-GAAP Measures Reconciliation Net Interest Income (FTE) Reconciliation This section reconciles net interest income to a fully taxable equivalent (FTE) basis, a non-GAAP measure used by management to enhance comparability for investors, with adjustments based on the 21% federal income tax statutory rate | (dollars in thousands) | Dec 31, 2024 (3M) | Sep 30, 2024 (3M) | Dec 31, 2023 (3M) | Dec 31, 2024 (YTD) | Dec 31, 2023 (YTD) | | :--------------------- | :---------------- | :---------------- | :---------------- | :----------------- | :----------------- | | Interest income | $149,996 | $154,323 | $144,257 | $600,463 | $529,998 | | Adjustment to fully taxable equivalent basis (1) | $354 | $342 | $314 | $1,347 | $1,237 | | Interest income adjusted to fully taxable equivalent basis (non-GAAP) | $150,350 | $154,665 | $144,571 | $601,810 | $531,235 | | Interest expense | $54,915 | $57,808 | $48,520 | $221,571 | $144,322 | | Net interest income, (FTE) (1) | $95,435 | $96,857 | $96,051 | $380,239 | $386,913 | Core Net Income and Return on Average Tangible Common Equity Reconciliation This section reconciles reported net income to 'core net income' and calculates 'return on average tangible common equity' and 'core return on average tangible common equity', adjusting for items like intangible amortization and merger-related expenses to clarify core business performance | (dollars in thousands, except per share data) | Dec 31, 2024 (3M) | Sep 30, 2024 (3M) | Dec 31, 2023 (3M) | Dec 31, 2024 (YTD) | Dec 31, 2023 (YTD) | | :------------------------------------------ | :---------------- | :---------------- | :---------------- | :----------------- | :----------------- | | Net Income | $35,849 | $32,086 | $44,827 | $142,572 | $157,063 | | Intangible amortization | $1,368 | $1,223 | $1,210 | $5,024 | $4,983 | | Tax benefit of amortization of intangibles | $(287) | $(257) | $(254) | $(1,055) | $(1,046) | | Net Income, adjusted for tax affected amortization of intangibles | $36,930 | $33,052 | $45,783 | $146,541 | $161,000 | | Core Net Income: | | | | | | | Total Net Income | $35,849 | $32,086 | $44,827 | $142,572 | $157,063 | | Net securities (gains) losses | $(1) | $(194) | — | $(218) | $103 | | Merger and acquisition related expenses | $277 | — | $174 | $391 | $9,034 | | Core net income (5) | $36,067 | $31,933 | $44,964 | $142,709 | $172,697 | | Core Earnings per common share (diluted) (6) | $0.35 | $0.31 | $0.44 | $1.40 | $1.70 | | Core Return on Average Tangible Common Equity (9) | 14.48 % | 13.02 % | 20.85 % | 14.95 % | 20.86 % | Core Return on Average Assets and Core Efficiency Ratio Reconciliation This section reconciles reported return on average assets (ROAA) to 'core ROAA' and calculates the 'core efficiency ratio', adjusting for specific noninterest expenses and revenue items (like intangible amortization, merger costs, and derivative mark-to-market) to provide a normalized view of profitability and operational efficiency | (dollars in thousands, except per share data) | Dec 31, 2024 (3M) | Sep 30, 2024 (3M) | Dec 31, 2023 (3M) | Dec 31, 2024 (YTD) | Dec 31, 2023 (YTD) | | :------------------------------------------ | :---------------- | :---------------- | :---------------- | :----------------- | :----------------- | | Core Return on Average Assets: | | | | | | | Total Net Income | $35,849 | $32,086 | $44,827 | $142,572 | $157,063 | | Total Average Assets | $11,625,716 | $11,776,532 | $11,402,130 | $11,654,966 | $11,091,853 | | Return on Average Assets | 1.23 % | 1.08 % | 1.56 % | 1.22 % | 1.42 % | | Core Net Income (5) | $36,067 | $31,933 | $44,964 | $142,709 | $172,697 | | Core Return on Average Assets (7) | 1.23 % | 1.08 % | 1.56 % | 1.22 % | 1.56 % | | Core Efficiency Ratio: | | | | | | | Total Noninterest Expense | $69,304 | $70,070 | $65,180 | $270,745 | $269,917 | | Noninterest Expense - Core | $67,659 | $68,847 | $63,796 | $265,330 | $255,900 | | Total Revenue - Core | $120,674 | $121,514 | $120,361 | $479,298 | $483,611 | | Core Efficiency Ratio (10) | 56.07 % | 56.66 % | 53.00 % | 55.36 % | 52.91 % | Tangible Common Equity as a Percentage of Tangible Assets Reconciliation This section provides the reconciliation of total shareholders' equity to tangible common equity and total assets to tangible assets, then calculates tangible common equity as a percentage of tangible assets, a key non-GAAP capital metric used by management and investors to assess capital strength excluding intangible assets | (dollars in thousands) | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | | :--------------------- | :----------- | :----------- | :----------- | | Tangible Equity: | | | | | Total shareholders' equity | $1,405,165 | $1,409,616 | $1,314,274 | | Less: intangible assets | $383,352 | $384,172 | $386,535 | | Tangible Common Equity | $1,021,813 | $1,025,444 | $927,739 | | Tangible Assets: | | | | | Total assets | $11,584,936 | $11,983,199 | $11,459,488 | | Less: intangible assets | $383,352 | $384,172 | $386,535 | | Tangible Assets | $11,201,584 | $11,599,027 | $11,072,953 | | Tangible Common Equity as a percentage of Tangible Assets (12) | 9.12 % | 8.84 % | 8.38 % | Pre-tax Pre-provision Income Reconciliation This section reconciles reported pre-tax pre-provision income to 'core pre-tax pre-provision income', a non-GAAP measure adjusting for net securities gains/losses and merger and acquisition related expenses to highlight the underlying profitability before taxes and credit loss provisions | (dollars in thousands) | Dec 31, 2024 (3M) | Sep 30, 2024 (3M) | Dec 31, 2023 (3M) | Dec 31, 2024 (YTD) | Dec 31, 2023 (YTD) | | :--------------------- | :---------------- | :---------------- | :---------------- | :----------------- | :----------------- | | Pre-tax pre-provision income: | | | | | | | Net interest income | $95,081 | $96,515 | $95,737 | $378,892 | $385,676 | | Noninterest income | $25,335 | $24,698 | $24,297 | $99,231 | $96,609 | | Noninterest expense | $69,304 | $70,070 | $65,180 | $270,745 | $269,917 | | Pre-tax pre-provision income | $51,112 | $51,143 | $54,854 | $207,378 | $212,368 | | Net securities (gains) losses | $(1) | $(194) | — | $(218) | $103 | | Merger and acquisition related expenses | $277 | — | $174 | $391 | $9,034 | | Core pre-tax pre-provision income | $51,388 | $50,949 | $55,028 | $207,551 | $221,505 |