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| 8-K - FORM 8-K - FIRST COMMONWEALTH FINANCIAL CORP /PA/ | d427609d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
First Commonwealth Announces Third Quarter 2012 Financial Results and Declares Third Quarter Dividend
Indiana, PA., October 24, 2012 - First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $9.8 million, or $0.09 diluted earnings per share, for the third quarter ended September 30, 2012, as compared to net income of $8.3 million, or $0.08 diluted earnings per share, in the third quarter of 2011. The increase in net income was primarily the result of higher noninterest income partially offset by decreased net interest income and higher noninterest expense. For the nine months ended September 30, 2012, net income was $33.2 million, or $0.32 diluted earnings per share, compared to net income of $21.0 million, or $0.20 diluted earnings per share, for the comparable period in 2011. Contributing to the increase in net income was a lower provision for credit losses and higher noninterest income, partially offset by lower net interest income and increased noninterest expense.
T. Michael Price, President and Chief Executive Officer, stated, “While a prolonged low-interest rate environment continues to put pressure on the net interest margin, trends in our credit quality, noninterest income and noninterest expense indicate significant opportunities ahead. Importantly, our team has achieved four consecutive quarters of loan growth, which is a crucial counterbalance to the margin pressure facing the industry.”
Net Interest Income and Net Interest Margin
Third quarter 2012 net interest income, on a fully taxable equivalent basis, decreased $1.1 million to $47.7 million as compared to the third quarter of 2011. The decrease was the result of a 27 basis point decline in the net interest margin. The net interest margin was 3.54%, 3.61% and 3.81% for the three-month periods ended September 30, 2012, June 30, 2012 and September 30, 2011, respectively. For the nine months ended September 30, 2012 net interest income, on a fully taxable equivalent basis, decreased $1.4 million to $145.1 million. The decrease was primarily due to a decline of 18 basis points in the net interest margin. The net interest margin for the nine months ended September 30, 2012 and 2011 was 3.63% and 3.81%, respectively. As the low interest rate environment continues to cause net interest margin compression, the impact of lower interest rates has been partially offset by loan growth of $240.6 million, a 6% increase, over the twelve-month period.
Credit Quality
The provision for credit losses was $6.8 million and $14.8 million for the three and nine months ended September 30, 2012, respectively, as compared to $7.0 million and $29.9 million in the prior-year periods.
For the quarter ended September 30, 2012, nonperforming loans were $93.9 million, an increase of $9.0 million from June 30, 2012 and a $68.0 million decrease from September 30, 2011. The $9.0 million increase for the third quarter of 2012 is primarily related to two commercial credits totaling $9.5 million that were placed into nonperforming status and an increase of $4.8 million for residential mortgages previously classified as 90 days and still accruing, partially offset by $5.3 million of commercial loans that were resolved.
During the third quarter of 2012, net charge-offs were $4.3 million compared to $10.0 million in the third quarter of 2011. For the nine months ended September 30, 2012, net charge-offs were $12.0 million, or 0.38% of average loans on an annualized basis, compared to $29.0 million, or 0.95% of average loans on an annualized basis, for the same period in 2011.
The allowance for credit losses as a percentage of total loans outstanding was 1.52%, 1.48% and 1.81% for September 30, 2012, June 30, 2012 and September 30, 2011, respectively.
Other Real Estate Owned (“OREO”) acquired through foreclosure was $16.0 million at September 30, 2012 and is primarily comprised of four properties, including land and commercial buildings in Pennsylvania.
Noninterest Income
Noninterest income, excluding net security gains, increased $6.9 million in the third quarter of 2012 compared to the same period last year. The increase is primarily the result of a $1.9 million termination fee for a joint venture with another financial institution, and a $3.8 million charge recorded in the third quarter of 2011 for an adverse interest rate swap mark-to-market adjustment due to the credit deterioration of a commercial customer. Also affecting third quarter 2012 and 2011 comparisons is an additional $1.7 million related to improved credit risk on the overall commercial loan interest rate swap portfolio.
For the nine months ended September 30, 2012, noninterest income, excluding net security gains, increased $11.2 million when compared to the same period of 2011, primarily attributable to the aforementioned $1.9 million termination fee for a discontinued joint venture, $2.9 million in gains on loans held-for-sale which were sold in the first and second quarters of 2012, the aforementioned swap charge on a troubled commercial loan relationship in 2011 and $0.8 million in card-related income. Also affecting the year-over-year comparisons were a $1.1 million gain on the exiting of a private equity investment in 2011, a $0.7 million decrease in letter of credit fees, a decrease of $0.3 million of revenue from an OREO property that was sold in the first quarter of 2012 and a $0.2 million decline in revenue from wealth management. The swap-related increase was comprised of $0.5 million of increased fees and $6.8 million due to an improved swap portfolio credit profile that was primarily related to the aforementioned commercial credit relationship.
There were $0.2 million of net security gains for the three and nine months ending September 30, 2012 compared to $2.2 million for the nine-month period ending September 30, 2011. The 2011 gains were primarily the result of a $1.5 million realized gain from the sale of an equity security.
Noninterest Expense
Noninterest expense increased $3.6 million, or 9%, in the third quarter of 2012 from the third quarter of 2011. The increase is primarily related to a $3.5 million charge recorded in connection with a loss pertaining to an external fraud. Collection efforts related to the fraud are ongoing and the charge represents the full amount of the loss and does not include the impact of any recovery. Recoveries, if they were to occur, would be recorded in the period when the recovery is received.
Staff expense increased $0.9 million due to higher incentives on new business and normal merit increases. Data processing costs pertaining to the development of new systems increased $0.5 million. Loan collection and repossession expense decreased $0.7 million and professional consulting expense decreased $0.7 million during the period.
For the nine months ended September 30, 2012, as compared to the same period last year, noninterest expense increased $5.1 million, or 4%. The increase was primarily attributable to the aforementioned fraud of $3.5 million, an increase of $2.3 million in salaries and employee benefits primarily a result of increasing the number of positions within business development areas and expanded incentive programs to encourage new business production, which were partially offset by efficiencies and refinements in our support and retail distribution areas, a $1.2 million increase in the expense for unfunded commitments and a $0.9 million increase in data processing for the development of new systems. Also affecting the year-over-year comparisons were decreases of $0.8 million in professional consulting, $0.4 million in collection and repossession expense, $0.5 million in FDIC insurance and $0.8 million in occupancy expense.
Full-time equivalent staff was 1,412 and 1,479 for the periods ended September 30, 2012 and 2011, respectively. The efficiency ratio, calculated as total noninterest expense as a percentage of total revenue (total revenue consists of net interest income, on a fully taxable equivalent basis, plus total noninterest income, excluding net impairment losses and net security gains), was 68% for the nine months ended September 30, 2012 as compared to 69% during the same period in 2011.
Dividend/Buybacks
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.05 per share on October 24, 2012 which is payable on November 16, 2012 to shareholders of record as of November 5, 2012. This dividend represents a 3% projected annual yield utilizing the September 30, 2012 closing market price of $7.05 and a 67% increase from last year.
On June 19, 2012, First Commonwealth announced a $50.0 million common stock repurchase program effective until December 31, 2012. As of September 30, 2012, First Commonwealth has purchased 1,341,900 shares at an average price of $6.79 per share.
First Commonwealth’s capital ratios for leverage, Total and Tier I were 11.7%, 14.9% and 13.7%, respectively on September 30, 2012.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter of 2012 on Wednesday, October 24, 2012 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-877-317-6789 or through First Commonwealth’s web page, http://www.fcbanking.com via the “Investor Relations” link. A replay of the call will be available approximately one hour following the conclusion of the conference. A link to the call replay will be accessible at this web page for 30 days.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $6.0 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 112 retail branch offices in 15 counties in western and central Pennsylvania through First Commonwealth Bank, a Pennsylvania chartered bank and trust company. Financial services and insurance products are also provided through First Commonwealth Insurance Agency and First Commonwealth Financial Advisors, Inc.
Forward-Looking Statements
This release 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 and may cause actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. These risks and uncertainties include, among other things, the following: continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Law and other legal and regulatory changes; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk; and other risks and uncertainties described in our reports filed 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.
Contact:
Media:
Susie Barbour
Media Relations Supervisor
724-463-5618
Investor Relations:
Robert E. Rout
Executive Vice President and Chief Financial Officer
724-349-7220
###
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
| SUMMARY RESULTS OF OPERATIONS |
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| Net interest income (FTE)(1) |
$ | 47,704 | $ | 48,008 | $ | 48,768 | $ | 145,099 | $ | 146,461 | ||||||||||
| Provision for credit losses |
6,754 | 4,297 | 6,975 | 14,838 | 29,904 | |||||||||||||||
| Noninterest income |
17,855 | 16,096 | 10,799 | 51,331 | 42,191 | |||||||||||||||
| Noninterest expense |
44,765 | 41,848 | 41,121 | 133,365 | 128,250 | |||||||||||||||
| Net income |
9,847 | 12,321 | 8,326 | 33,219 | 20,991 | |||||||||||||||
| Earnings per common share (diluted) |
$ | 0.09 | $ | 0.12 | $ | 0.08 | $ | 0.32 | $ | 0.20 | ||||||||||
| KEY FINANCIAL RATIOS |
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| Return on average assets |
0.66 | % | 0.83 | % | 0.58 | % | 0.75 | % | 0.49 | % | ||||||||||
| Return on average shareholders’ equity |
5.07 | % | 6.41 | % | 4.29 | % | 5.76 | % | 3.69 | % | ||||||||||
| Efficiency ratio(2) |
68.45 | % | 65.28 | % | 69.03 | % | 67.95 | % | 68.78 | % | ||||||||||
| Net interest margin (FTE)(1) |
3.54 | % | 3.61 | % | 3.81 | % | 3.63 | % | 3.81 | % | ||||||||||
| Book value per common share |
$ | 7.45 | $ | 7.38 | $ | 7.33 | ||||||||||||||
| Tangible book value per common share(4) |
5.88 | 5.82 | 5.77 | |||||||||||||||||
| Market value per common share |
7.05 | 6.73 | 3.70 | |||||||||||||||||
| Cash dividends declared per common share |
0.05 | 0.05 | 0.03 | $ | 0.13 | $ | 0.09 | |||||||||||||
| ASSET QUALITY RATIOS |
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| Allowance for credit losses as a percent of end-of-period loans |
1.52 | % | 1.48 | % | 1.81 | % | ||||||||||||||
| Allowance for credit losses as a percent of nonperforming loans |
68.27 | % | 72.61 | % | 44.55 | % | ||||||||||||||
| Nonperforming loans as a percent of end-of-period loans |
2.23 | % | 2.04 | % | 4.07 | % | ||||||||||||||
| Nonperforming assets as a percent of total assets |
1.85 | % | 1.76 | % | 3.47 | % | ||||||||||||||
| Net charge-offs as a percent of average loans (annualized) |
0.41 | % | 0.33 | % | 1.00 | % | ||||||||||||||
| CAPITAL RATIOS |
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| Shareholders’ equity as a percent of total assets |
12.98 | % | 12.99 | % | 13.59 | % | ||||||||||||||
| Tangible common equity as a percent of tangible assets(3) |
10.54 | % | 10.54 | % | 11.01 | % | ||||||||||||||
| Leverage Ratio |
11.69 | % | 11.76 | % | 12.18 | % | ||||||||||||||
| Risk Based Capital - Tier I |
13.68 | % | 13.91 | % | 13.85 | % | ||||||||||||||
| Risk Based Capital - Total |
14.93 | % | 15.16 | % | 15.11 | % | ||||||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except share data)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
| INCOME STATEMENT |
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| Interest income |
$ | 53,880 | $ | 54,712 | $ | 57,600 | $ | 165,208 | $ | 175,058 | ||||||||||
| Interest expense |
7,230 | 7,794 | 10,120 | 23,470 | 32,824 | |||||||||||||||
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| Net Interest Income |
46,650 | 46,918 | 47,480 | 141,738 | 142,234 | |||||||||||||||
| Taxable equivalent adjustment(1) |
1,054 | 1,090 | 1,288 | 3,361 | 4,227 | |||||||||||||||
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| Net Interest Income (FTE) |
47,704 | 48,008 | 48,768 | 145,099 | 146,461 | |||||||||||||||
| Provision for credit losses |
6,754 | 4,297 | 6,975 | 14,838 | 29,904 | |||||||||||||||
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| Net Interest Income after Provision for Credit Losses (FTE) |
40,950 | 43,711 | 41,793 | 130,261 | 116,557 | |||||||||||||||
| Changes in fair value on impaired securities |
1,374 | (1,323 | ) | (2,535 | ) | 1,549 | (218 | ) | ||||||||||||
| Non-credit related (gains) losses on securities not expected to be sold (recognized in other comprehensive income) |
(1,374 | ) | 1,323 | 2,535 | (1,549 | ) | 218 | |||||||||||||
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| Net Impairment Losses |
0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Net securities gains |
163 | 0 | 0 | 163 | 2,185 | |||||||||||||||
| Trust income |
1,631 | 1,607 | 1,603 | 4,780 | 5,085 | |||||||||||||||
| Service charges on deposit accounts |
3,736 | 3,737 | 3,836 | 10,975 | 11,010 | |||||||||||||||
| Insurance and retail brokerage commissions |
1,844 | 1,670 | 1,698 | 4,938 | 4,876 | |||||||||||||||
| Income from bank owned life insurance |
1,465 | 1,459 | 1,411 | 4,369 | 4,158 | |||||||||||||||
| Gain on sale of assets |
757 | 1,444 | 790 | 4,316 | 2,272 | |||||||||||||||
| Card related interchange income |
3,260 | 3,285 | 3,053 | 9,659 | 8,895 | |||||||||||||||
| Other income |
4,999 | 2,894 | (1,592 | ) | 12,131 | 3,710 | ||||||||||||||
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| Total Noninterest Income |
17,855 | 16,096 | 10,799 | 51,331 | 42,191 | |||||||||||||||
| Salaries and employee benefits |
21,280 | 22,363 | 20,418 | 65,401 | 63,092 | |||||||||||||||
| Net occupancy expense |
3,235 | 3,303 | 3,506 | 9,942 | 10,733 | |||||||||||||||
| Furniture and equipment expense |
3,118 | 3,024 | 3,092 | 9,326 | 9,407 | |||||||||||||||
| Data processing expense |
1,987 | 1,796 | 1,533 | 5,346 | 4,482 | |||||||||||||||
| Pennsylvania shares tax expense |
1,510 | 1,510 | 1,434 | 4,203 | 4,046 | |||||||||||||||
| Intangible amortization |
367 | 371 | 384 | 1,109 | 1,163 | |||||||||||||||
| Collection and repossession expense |
1,281 | 670 | 1,961 | 4,650 | 5,003 | |||||||||||||||
| Other professional fees and services |
1,028 | 940 | 1,706 | 3,167 | 3,930 | |||||||||||||||
| FDIC insurance |
1,258 | 1,262 | 1,177 | 3,757 | 4,260 | |||||||||||||||
| Loss on sale or write-down of assets |
426 | 500 | 159 | 4,215 | 4,674 | |||||||||||||||
| Operational losses |
3,657 | 250 | 186 | 4,033 | 408 | |||||||||||||||
| Other operating expenses |
5,618 | 5,859 | 5,565 | 18,216 | 17,052 | |||||||||||||||
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| Total Noninterest Expense |
44,765 | 41,848 | 41,121 | 133,365 | 128,250 | |||||||||||||||
| Income before Income Taxes |
14,040 | 17,959 | 11,471 | 48,227 | 30,498 | |||||||||||||||
| Taxable equivalent adjustment(1) |
1,054 | 1,090 | 1,288 | 3,361 | 4,227 | |||||||||||||||
| Income tax provision |
3,139 | 4,548 | 1,857 | 11,647 | 5,280 | |||||||||||||||
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| Net Income |
$ | 9,847 | $ | 12,321 | $ | 8,326 | $ | 33,219 | $ | 20,991 | ||||||||||
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| Shares Outstanding at End of Period |
103,890,029 | 104,728,846 | 104,906,994 | 103,890,029 | 104,906,994 | |||||||||||||||
| Average Shares Outstanding Assuming Dilution |
104,098,383 | 104,901,239 | 104,728,915 | 104,595,396 | 104,678,436 | |||||||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
| September 30, | June 30, | September 30, | ||||||||||
| 2012 | 2012 | 2011 | ||||||||||
| BALANCE SHEET (Period End) |
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| Assets |
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| Cash and due from banks |
$ | 85,183 | $ | 82,659 | $ | 84,810 | ||||||
| Interest-bearing bank deposits |
3,881 | 3,839 | 5,036 | |||||||||
| Securities |
1,163,301 | 1,195,118 | 1,077,091 | |||||||||
| Loans |
4,214,299 | 4,159,531 | 3,973,723 | |||||||||
| Allowance for credit losses |
(64,114 | ) | (61,676 | ) | (72,117 | ) | ||||||
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| Net loans |
4,150,185 | 4,097,855 | 3,901,606 | |||||||||
| Goodwill and other intangibles |
162,690 | 163,057 | 164,170 | |||||||||
| Other assets |
398,398 | 404,288 | 425,349 | |||||||||
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| Total Assets |
$ | 5,963,638 | $ | 5,946,816 | $ | 5,658,062 | ||||||
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| Liabilities and Shareholders’ Equity |
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| Noninterest-bearing demand deposits |
$ | 858,003 | $ | 823,880 | $ | 769,178 | ||||||
| Interest-bearing demand deposits |
97,834 | 98,937 | 96,122 | |||||||||
| Savings deposits |
2,433,065 | 2,415,860 | 2,383,288 | |||||||||
| Time deposits |
1,105,532 | 1,123,285 | 1,236,290 | |||||||||
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| Total interest-bearing deposits |
3,636,431 | 3,638,082 | 3,715,700 | |||||||||
| Total deposits |
4,494,434 | 4,461,962 | 4,484,878 | |||||||||
| Short-term borrowings |
461,770 | 474,264 | 173,779 | |||||||||
| Long-term borrowings |
180,471 | 181,120 | 178,459 | |||||||||
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| Total borrowings |
642,241 | 655,384 | 352,238 | |||||||||
| Other liabilities |
53,072 | 56,980 | 51,954 | |||||||||
| Shareholders’ equity |
773,891 | 772,490 | 768,992 | |||||||||
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| Total Liabilities and Shareholders’ Equity |
$ | 5,963,638 | $ | 5,946,816 | $ | 5,658,062 | ||||||
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| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||||||||
| September 30, | Yield/ | June 30, | Yield/ | September 30, | Yield/ | September 30, | Yield/ | September 30, | Yield/ | |||||||||||||||||||||||||||||||
| 2012 | Rate | 2012 | Rate | 2011 | Rate | 2012 | Rate | 2011 | Rate | |||||||||||||||||||||||||||||||
| NET INTEREST MARGIN (Quarterly and Year-to-Date Averages) |
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| Assets |
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| Loans (FTE)(1) |
$ | 4,186,446 | 4.50 | % | $ | 4,144,470 | 4.61 | % | $ | 3,993,225 | 5.01 | % | $ | 4,148,937 | 4.64 | % | $ | 4,073,871 | 5.04 | % | ||||||||||||||||||||
| Securities and interest bearing bank deposits (FTE)(1) |
1,175,476 | 2.55 | % | 1,210,889 | 2.76 | % | 1,079,761 | 3.12 | % | 1,189,739 | 2.74 | % | 1,062,186 | 3.25 | % | |||||||||||||||||||||||||
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| Total Interest-Earning Assets (FTE)(1) |
5,361,922 | 4.08 | % | 5,355,359 | 4.19 | % | 5,072,986 | 4.61 | % | 5,338,676 | 4.22 | % | 5,136,057 | 4.67 | % | |||||||||||||||||||||||||
| Noninterest-earning assets |
588,954 | 589,888 | 598,314 | 593,883 | 588,971 | |||||||||||||||||||||||||||||||||||
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| Total Assets |
$ | 5,950,876 | $ | 5,945,247 | $ | 5,671,300 | $ | 5,932,559 | $ | 5,725,028 | ||||||||||||||||||||||||||||||
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| Liabilities and Shareholders’ Equity |
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| Interest-bearing demand and savings deposits |
$ | 2,530,100 | 0.16 | % | $ | 2,553,412 | 0.17 | % | $ | 2,479,455 | 0.31 | % | $ | 2,553,173 | 0.18 | % | $ | 2,471,953 | 0.33 | % | ||||||||||||||||||||
| Time deposits |
1,101,991 | 1.45 | % | 1,165,009 | 1.58 | % | 1,296,831 | 1.89 | % | 1,156,689 | 1.55 | % | 1,385,857 | 1.99 | % | |||||||||||||||||||||||||
| Short-term borrowings |
485,754 | 0.25 | % | 422,361 | 0.27 | % | 167,969 | 0.44 | % | 414,451 | 0.26 | % | 166,094 | 0.44 | % | |||||||||||||||||||||||||
| Long-term borrowings |
181,038 | 4.10 | % | 183,890 | 4.09 | % | 179,033 | 4.07 | % | 190,720 | 4.00 | % | 181,261 | 4.09 | % | |||||||||||||||||||||||||
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| Total Interest-Bearing Liabilities |
4,298,883 | 0.67 | % | 4,324,672 | 0.72 | % | 4,123,288 | 0.97 | % | 4,315,033 | 0.73 | % | 4,205,165 | 1.04 | % | |||||||||||||||||||||||||
| Noninterest-bearing deposits |
824,784 | 796,555 | 726,895 | 795,443 | 709,536 | |||||||||||||||||||||||||||||||||||
| Other liabilities |
53,823 | 50,724 | 51,667 | 51,627 | 48,775 | |||||||||||||||||||||||||||||||||||
| Shareholders’ equity |
773,386 | 773,296 | 769,450 | 770,456 | 761,552 | |||||||||||||||||||||||||||||||||||
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| Total Noninterest-Bearing Funding Sources |
1,651,993 | 1,620,575 | 1,548,012 | 1,617,526 | 1,519,863 | |||||||||||||||||||||||||||||||||||
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| Total Liabilities and Shareholders’ Equity |
$ | 5,950,876 | $ | 5,945,247 | $ | 5,671,300 | $ | 5,932,559 | $ | 5,725,028 | ||||||||||||||||||||||||||||||
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| Net Interest Margin (FTE) |
3.54 | % | 3.61 | % | 3.81 | % | 3.63 | % | 3.81 | % | ||||||||||||||||||||||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
| September 30, | June 30, | September 30, | ||||||||||
| 2012 | 2012 | 2011 | ||||||||||
| ASSET QUALITY DETAIL |
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| Nonperforming Loans: |
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| Loans on nonaccrual basis |
$ | 40,704 | $ | 33,457 | $ | 105,721 | ||||||
| Troubled debt restructured loans on nonaccrual basis |
46,026 | 45,235 | 21,663 | |||||||||
| Troubled debt restructured loans on accrual basis |
7,176 | 6,251 | 34,500 | |||||||||
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| Total Nonperforming Loans |
$ | 93,906 | $ | 84,943 | $ | 161,884 | ||||||
| Other real estate owned (“OREO”) |
16,016 | 19,140 | 33,254 | |||||||||
| Repossessions (“Repo”) |
617 | 663 | 1,109 | |||||||||
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| Total Nonperforming Assets |
$ | 110,539 | $ | 104,746 | $ | 196,247 | ||||||
| Loans past due in excess of 90 days and still accruing |
$ | 2,998 | $ | 10,587 | $ | 12,566 | ||||||
| Criticized loans |
269,041 | 272,517 | 400,063 | |||||||||
| Nonperforming assets as a percentage of total loans, plus OREO and Repos |
2.61 | % | 2.51 | % | 4.90 | % | ||||||
| Allowance for credit losses |
$ | 64,114 | $ | 61,676 | $ | 72,117 | ||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
| Net Charge-offs: |
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| Commercial, financial, agricultural and other |
$ | 1,197 | $ | 1,717 | $ | 611 | $ | 4,590 | $ | 3,307 | ||||||||||
| Real estate construction |
1,987 | 114 | 6,522 | 2,235 | 14,570 | |||||||||||||||
| Commercial real estate |
27 | 278 | 1,268 | 382 | 6,679 | |||||||||||||||
| Residential real estate |
481 | 593 | 964 | 2,653 | 2,568 | |||||||||||||||
| Loans to individuals |
624 | 651 | 659 | 2,098 | 1,892 | |||||||||||||||
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| Net Charge-offs |
$ | 4,316 | $ | 3,353 | $ | 10,024 | $ | 11,958 | $ | 29,016 | ||||||||||
| Net charge-offs as a percentage of average loans outstanding (annualized) |
0.41 | % | 0.33 | % | 1.00 | % | 0.38 | % | 0.95 | % | ||||||||||
| Provision for credit losses as a percentage of net charge-offs |
156.49 | % | 128.15 | % | 69.58 | % | 124.08 | % | 103.06 | % | ||||||||||
| Provision for credit losses |
$ | 6,754 | $ | 4,297 | $ | 6,975 | $ | 14,838 | $ | 29,904 | ||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
RECONCILIATION OF NON-GAAP MEASURES
| (1) | Net interest income has been computed on a fully taxable equivalent basis (“FTE”) using the 35% federal income tax statutory rate. |
| (2) | Efficiency ratio is “total noninterest expense” as a percentage of total revenue. Total revenue consists of “net interest income, on a fully taxable equivalent basis, “ plus “total noninterest income,” excluding “net impairment losses” and “net securities gains.” |
| September 30, | June 30, | September 30, | ||||||||||
| 2012 | 2012 | 2011 | ||||||||||
| Tangible Equity: |
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| Total shareholders’ equity |
$ | 773,891 | $ | 772,490 | $ | 768,992 | ||||||
| Less: intangible assets |
162,690 | 163,057 | 164,170 | |||||||||
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| Tangible Equity |
611,201 | 609,433 | 604,822 | |||||||||
| Less: preferred stock |
0 | 0 | 0 | |||||||||
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| Tangible Common Equity |
$ | 611,201 | $ | 609,433 | $ | 604,822 | ||||||
| Tangible Assets: |
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| Total assets |
$ | 5,963,638 | $ | 5,946,816 | $ | 5,658,062 | ||||||
| Less: intangible assets |
162,690 | 163,057 | 164,170 | |||||||||
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| Tangible Assets |
$ | 5,800,948 | $ | 5,783,759 | $ | 5,493,892 | ||||||
|
(3)Tangible Common Equity as a percentage of Tangible Assets |
10.54 | % | 10.54 | % | 11.01 | % | ||||||
| Shares Outstanding at End of Period |
103,890,029 | 104,728,846 | 104,906,994 | |||||||||
|
(4)Tangible Book Value Per Common Share |
$ | 5.88 | $ | 5.82 | $ | 5.77 | ||||||
Note: Management believes that it is a 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.