INDIANA, Pa., Oct. 23, 2013 /PRNewswire/ -- First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $15.9 million, or $0.16 diluted earnings per share, for the third quarter ended September 30, 2013, as compared to net income of $9.8 million, or $0.09 diluted earnings per share, in the third quarter of 2012. The increase in net income was due to higher net interest income, lower provision for loan losses and noninterest expense, partially offset by lower noninterest income. For the nine months ended September 30, 2013, net income was $32.2 million, or $0.33 diluted earnings per share, compared to net income of $33.2 million, or $0.32 diluted earnings per share, for the comparable period in 2012. The decrease in net income was the result of lower net interest income, higher provision for loan losses and reduced noninterest income, partially offset by lower noninterest expense.
(Logo: http://photos.prnewswire.com/prnh/20030416/FIRSTLOGO )
T. Michael Price, President and Chief Executive Officer commented, "We are pleased that credit performance in both our loan and trust preferred investment portfolios had a positive impact on our earnings results this quarter. Best-in-class performance begins with lower long-term credit costs, and we believe the effectiveness of our credit infrastructure is becoming increasingly evident and will serve as a competitive advantage over time."
Net Interest Income and Net Interest Margin
Third quarter 2013 net interest income, on a fully taxable equivalent basis, was $48.3 million, a $0.6 million, or 1%, increase as compared to the third quarter of 2012. The increase is primarily the result of $1.0 million of income recognized on other-than-temporarily impaired pooled trust preferred collateralized debt obligations that received payments during the quarter. The additional income beneficially affected the net interest margins for the quarter and twelve-month period ending September 30, 2013 by eight basis points and two basis points, respectively. Net interest margin was 3.43%, 3.35% and 3.54% for the three-month periods ended September 30, 2013, June 30, 2013 and September 30, 2012, respectively. For the nine months ended September 30, 2013 net interest income, on a fully taxable equivalent basis, decreased $3.7 million to $141.4 million as compared to the same period of 2012. The decline was primarily due to a 22 basis point reduction in the net interest margin. The 12-month change in net interest income was impacted by $1.0 million of delinquent interest recognized in the first quarter of 2012 for one commercial loan that paid off, offset by the aforementioned $1.0 million of additional income from the trust preferred securities. The net interest margin for the nine months ended September 30, 2013 and 2012 was 3.41% and 3.63%, respectively. The prolonged low interest rate environment is causing net interest margin compression, and the negative effects were partially offset by a $188.4 million, or 4%, increase in interest-earning assets over the twelve-month period.
Loan growth for the quarter ended September 30, 2013, was $10.3 million compared to the prior quarter and $25.7 million over the past 12 months. Price noted, "Loan growth over the past 12 months has been significantly muted by our efforts to reduce risks in the loan portfolio through sector concentration limits, vigorous management of hold limits, aggressive charge-offs of problem loans and encouraging marginal credits to seek financing elsewhere. Although these actions dampen short-term performance metrics, this strategic discipline is absolutely critical to long-term shareholder returns."
Deposits increased $123.4 million over the past 12 months, including a $50.4 million, or 6%, increase in noninterest-bearing demand checking accounts. Demand accounts currently comprise 20% of total deposits. Changes in the 2013 deposit mix also include $167.0 million of purchased wholesale deposits. The wholesale deposit purchases represented an alternative to borrowed funds due to more favorable rates and terms than retail deposits.
Credit Quality
The provision for credit losses was $2.7 million and $18.0 million for the three and nine months ended September 30, 2013, respectively, as compared to $6.8 million and $14.8 million in the prior-year periods. The nine-month increase in provision expense is primarily related to the $13.1 million charge-off of an $18.6 million legacy credit relationship to a local real estate developer in the second quarter of 2013.
For the quarter ended September 30, 2013, nonperforming loans were $71.2 million, or 1.68% of total loans, a decrease of $1.9 million from June 30, 2013 and $22.7 million from September 30, 2012.
During the third quarter of 2013, net charge-offs were $5.2 million compared to $4.3 million in the third quarter of 2012. Net charge-offs for the third quarter included $2.3 million for a loan to a local energy company that was previously classified as nonaccrual and had a specific reserve of $2.3 million. For the nine months ended September 30, 2013, net charge-offs were $30.2 million, or 0.95% of average loans on an annualized basis, compared to $12.0 million, or 0.38% of average loans on an annualized basis, for the same period in 2012.
The allowance for credit losses as a percentage of total loans outstanding was 1.30%, 1.36% and 1.52% for September 30, 2013, June 30, 2013 and September 30, 2012, respectively.
Other Real Estate Owned ("OREO") acquired through foreclosure was $9.7 million at September 30, 2013, as compared to $15.6 million and $16.0 million at June 30, 2013 and September 30, 2012, respectively. During the third quarter of 2013, five OREO properties were sold generating gains of $1.1 million.
Noninterest Income
Noninterest income, excluding net security gains, decreased $0.8 million, or 5%, in the third quarter of 2013 compared to the same period last year. Positive factors affecting noninterest income include the aforementioned OREO gains and a $0.8 million increase in deposit/debit card revenues in 2013. The third quarter 2012 results included a $1.9 million gain on the early termination of a mortgage banking joint venture relationship.
For the nine months ended September 30, 2013, noninterest income, excluding net security gains, decreased $4.5 million, or 9%, when compared to the same period of 2012, primarily attributable to $2.3 million of lower gains on the sale of troubled commercial loans and the aforementioned mortgage banking termination fee in 2012.
Net security gains for the three and nine months ended September 30, 2013 and September 30, 2012 were $0.2 million. First Commonwealth has not incurred any other-than-temporary impairment charges in the investment portfolio since the third quarter of 2010.
Noninterest Expense
Noninterest expense decreased $4.7 million to $40.0 million in the third quarter of 2013 as compared to $44.8 million in the third quarter of 2012. The third quarter of 2012 included the effects of a $3.5 million loss related to an external fraud. Other noninterest expense improvements in the third quarter 2013, as compared to the same period of 2012, include $0.5 million of data processing expense and $0.4 million of loan collection expense.
For the nine months ended September 30, 2013, as compared to the same period last year, noninterest expense decreased $9.9 million, or 7%. The decline was primarily attributable to reductions of $3.2 million in operational/fraud losses, $3.2 million in OREO write-downs, $1.8 million in collection and repossession costs, $1.1 million in salaries and employee benefits, $1.2 million in data processing/professional expense, $0.4 million in FDIC insurance and $1.0 million in other expense. These expense reductions were partially offset by a $1.6 million charge for early extinguishment of debt for $32.5 million of fixed-rate trust preferred debt and a $0.8 million contingency reserve established for a tax reporting issue in the first half of 2013.
Full-time equivalent staff was 1,377 and 1,412 for the periods ended September 30, 2013 and 2012, 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 securities gains), was 66% for the nine months ended September 30, 2013, and 68% for the same period of 2012.
On September 30, 2013, First Commonwealth executed a contract with Jack Henry and Associates to license the Jack Henry and Associates SilverLake System® core processing software and to outsource certain data processing services. A system conversion is expected to occur during the second or third quarter of 2014. First Commonwealth will incur approximately $12.0 million of charges related to accelerated depreciation for data processing hardware and software, early termination charges on existing contracts and staffing and employment-related charges. These charges will be recognized beginning in the fourth quarter of 2013 through the anticipated conversion date. First Commonwealth expects to achieve $6.0 to $8.0 million in lower annual technology-related expenses as well as employment and other operational expense reductions following the conversion date.
"To date, our efficiency efforts have been effective, but incremental in nature," stated Norm Montgomery, Executive Vice President / Business Integration. "The conversion of our core processing platform represents a defining step in the evolution of our IT and operations infrastructure, and we are confident that the transition to an integrated, best-of-suite platform will provide a transformative catalyst for both our operating efficiency and our delivery process, resulting in a vastly improved customer experience."
Dividend/Buybacks
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.06 per share which is payable on November 15, 2013 to shareholders of record as of November 4, 2013. This dividend represents a 3% projected annual yield utilizing the October 22, 2013 closing market price of $8.14.
On January 29, 2013, First Commonwealth's Board of Directors authorized a $25.0 million common stock repurchase program in addition to the $50.0 million common stock repurchase program announced on June 19, 2012. Under these programs, management is authorized to repurchase shares through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. Depending on market conditions and other factors, repurchases may be made at any time or from time to time, without prior notice. First Commonwealth may suspend or discontinue the programs at any time. As of September 30, 2013, First Commonwealth has purchased 9,821,489 shares at an average price of $6.86 per share under these programs.
First Commonwealth's capital ratios for leverage, Total and Tier I were 9.8%, 13.2% and 12.0%, respectively on September 30, 2013.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter of 2013 on Wednesday, October 23, 2013 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-877-353-0037 or through the company's Investor Relations web page at http://ir.fcbanking.com. A replay of the webcast will be available approximately two hours following the conclusion of the conference. A link to the webcast will be accessible at this web page for 30 days.
About First Commonwealth Financial Corporation
First Commonwealth is a $6.2 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 110 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: deterioration of 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; the failure of a third party to perform critical functions or services; 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.
--2PRFCFERN2--
|
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,
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
SUMMARY RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Net interest income (FTE)(1)
|
$
|
48,255
|
|
|
$
|
46,728
|
|
|
$
|
47,704
|
|
|
$
|
141,429
|
|
|
$
|
145,099
|
|
|
Provision for credit losses
|
2,714
|
|
|
10,800
|
|
|
6,754
|
|
|
18,011
|
|
|
14,838
|
|
|
Noninterest income
|
17,083
|
|
|
14,931
|
|
|
17,855
|
|
|
46,899
|
|
|
51,331
|
|
|
Noninterest expense
|
40,045
|
|
|
41,998
|
|
|
44,765
|
|
|
123,497
|
|
|
133,365
|
|
|
Net income
|
15,854
|
|
|
5,816
|
|
|
9,847
|
|
|
32,223
|
|
|
33,219
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (diluted)
|
$
|
0.16
|
|
|
$
|
0.06
|
|
|
$
|
0.09
|
|
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY FINANCIAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
1.02
|
%
|
|
0.38
|
%
|
|
0.66
|
%
|
|
0.70
|
%
|
|
0.75
|
%
|
|
Return on average shareholders' equity
|
8.83
|
%
|
|
3.16
|
%
|
|
5.07
|
%
|
|
5.88
|
%
|
|
5.76
|
%
|
|
Efficiency ratio(2)
|
61.50
|
%
|
|
68.12
|
%
|
|
68.45
|
%
|
|
65.66
|
%
|
|
67.95
|
%
|
|
Net interest margin (FTE)(1)
|
3.43
|
%
|
|
3.35
|
%
|
|
3.54
|
%
|
|
3.41
|
%
|
|
3.63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share
|
$
|
7.45
|
|
|
$
|
7.37
|
|
|
$
|
7.45
|
|
|
|
|
|
|
Tangible book value per common share(4)
|
5.76
|
|
|
5.69
|
|
|
5.88
|
|
|
|
|
|
|
Market value per common share
|
7.59
|
|
|
7.37
|
|
|
7.05
|
|
|
|
|
|
|
Cash dividends declared per common share
|
0.06
|
|
|
0.06
|
|
|
0.05
|
|
|
$
|
0.17
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses as a percent of
|
|
|
|
|
|
|
|
|
|
|
end-of-period loans
|
1.30
|
%
|
|
1.36
|
%
|
|
1.52
|
%
|
|
|
|
|
|
Allowance for credit losses as a percent of
|
|
|
|
|
|
|
|
|
|
|
nonperforming loans
|
77.17
|
%
|
|
78.60
|
%
|
|
68.27
|
%
|
|
|
|
|
|
Nonperforming loans as a percent of
|
|
|
|
|
|
|
|
|
|
|
end-of-period loans
|
1.68
|
%
|
|
1.73
|
%
|
|
2.23
|
%
|
|
|
|
|
|
Nonperforming assets as a percent of
|
|
|
|
|
|
|
|
|
|
|
total assets
|
1.33
|
%
|
|
1.45
|
%
|
|
1.85
|
%
|
|
|
|
|
|
Net charge-offs as a percent of average loans
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
0.49
|
%
|
|
1.47
|
%
|
|
0.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity as a percent of total assets
|
11.56
|
%
|
|
11.55
|
%
|
|
12.98
|
%
|
|
|
|
|
|
Tangible common equity as a percent of
|
|
|
|
|
|
|
|
|
|
|
tangible assets(3)
|
9.18
|
%
|
|
9.16
|
%
|
|
10.54
|
%
|
|
|
|
|
|
Leverage Ratio
|
9.84
|
%
|
|
9.89
|
%
|
|
11.69
|
%
|
|
|
|
|
|
Risk Based Capital - Tier I
|
12.04
|
%
|
|
12.05
|
%
|
|
13.68
|
%
|
|
|
|
|
|
Risk Based Capital - Total
|
13.22
|
%
|
|
13.27
|
%
|
|
14.93
|
%
|
|
|
|
|
|
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,
|
|
2013
|
2013
|
2012
|
|
2013
|
2012
|
|
INCOME STATEMENT
|
|
|
|
|
|
|
|
Interest income
|
$
|
52,308
|
|
$
|
50,981
|
|
$
|
53,880
|
|
|
$
|
155,050
|
|
$
|
165,208
|
|
|
Interest expense
|
5,079
|
|
5,283
|
|
7,230
|
|
|
16,705
|
|
23,470
|
|
|
Net Interest Income
|
47,229
|
|
45,698
|
|
46,650
|
|
|
138,345
|
|
141,738
|
|
|
Taxable equivalent adjustment(1)
|
1,026
|
|
1,030
|
|
1,054
|
|
|
3,084
|
|
3,361
|
|
|
Net Interest Income (FTE)
|
48,255
|
|
46,728
|
|
47,704
|
|
|
141,429
|
|
145,099
|
|
|
Provision for credit losses
|
2,714
|
|
10,800
|
|
6,754
|
|
|
18,011
|
|
14,838
|
|
|
Net Interest Income after Provision for Credit
Losses (FTE)
|
45,541
|
|
35,928
|
|
40,950
|
|
|
123,418
|
|
130,261
|
|
|
|
|
|
|
|
|
|
Changes in fair value on impaired securities
|
236
|
|
2,841
|
|
1,374
|
|
|
4,941
|
|
1,549
|
|
|
Non-credit related gains on securities not
|
|
|
|
|
|
|
|
expected to be sold (recognized in other
|
|
|
|
|
|
|
|
comprehensive income)
|
(236)
|
|
(2,841)
|
|
(1,374)
|
|
|
(4,941)
|
|
(1,549)
|
|
|
Net Impairment Losses
|
0
|
|
0
|
|
0
|
|
|
0
|
|
0
|
|
|
Net securities gains
|
229
|
|
4
|
|
163
|
|
|
237
|
|
163
|
|
|
Trust income
|
1,406
|
|
1,608
|
|
1,631
|
|
|
4,677
|
|
4,780
|
|
|
Service charges on deposit accounts
|
4,227
|
|
3,815
|
|
3,736
|
|
|
11,443
|
|
10,975
|
|
|
Insurance and retail brokerage commissions
|
1,822
|
|
1,384
|
|
1,844
|
|
|
4,623
|
|
4,938
|
|
|
Income from bank owned life insurance
|
1,359
|
|
1,432
|
|
1,465
|
|
|
4,219
|
|
4,369
|
|
|
Gain on sale of assets
|
1,356
|
|
425
|
|
757
|
|
|
2,056
|
|
4,316
|
|
|
Card related interchange income
|
3,536
|
|
3,490
|
|
3,260
|
|
|
10,214
|
|
9,659
|
|
|
Joint venture termination fee
|
0
|
|
0
|
|
1,909
|
|
|
0
|
|
1,909
|
|
|
Other income
|
3,148
|
|
2,773
|
|
3,090
|
|
|
9,430
|
|
10,222
|
|
|
Total Noninterest Income
|
17,083
|
|
14,931
|
|
17,855
|
|
|
46,899
|
|
51,331
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
20,998
|
|
21,497
|
|
21,280
|
|
|
64,288
|
|
65,401
|
|
|
Net occupancy expense
|
3,274
|
|
3,221
|
|
3,235
|
|
|
10,130
|
|
9,942
|
|
|
Furniture and equipment expense
|
3,294
|
|
3,297
|
|
3,118
|
|
|
9,863
|
|
9,326
|
|
|
Data processing expense
|
1,492
|
|
1,503
|
|
1,987
|
|
|
4,511
|
|
5,346
|
|
|
Pennsylvania shares tax expense
|
1,516
|
|
1,517
|
|
1,510
|
|
|
4,223
|
|
4,203
|
|
|
Intangible amortization
|
193
|
|
297
|
|
367
|
|
|
848
|
|
1,109
|
|
|
Collection and repossession expense
|
860
|
|
851
|
|
1,281
|
|
|
2,862
|
|
4,650
|
|
|
Other professional fees and services
|
878
|
|
948
|
|
1,028
|
|
|
2,795
|
|
3,167
|
|
|
FDIC insurance
|
1,178
|
|
1,084
|
|
1,258
|
|
|
3,312
|
|
3,757
|
|
|
Loss on sale or write-down of assets
|
479
|
|
343
|
|
426
|
|
|
1,009
|
|
4,215
|
|
|
Operational losses
|
238
|
|
214
|
|
3,657
|
|
|
790
|
|
4,033
|
|
|
Loss on early redemption of subordinated debt
|
0
|
|
1,629
|
|
0
|
|
|
1,629
|
|
0
|
|
|
Other operating expenses
|
5,645
|
|
5,597
|
|
5,618
|
|
|
17,237
|
|
18,216
|
|
|
Total Noninterest Expense
|
40,045
|
|
41,998
|
|
44,765
|
|
|
123,497
|
|
133,365
|
|
|
|
|
|
|
|
|
|
Income before Income Taxes
|
22,579
|
|
8,861
|
|
14,040
|
|
|
46,820
|
|
48,227
|
|
|
Taxable equivalent adjustment(1)
|
1,026
|
|
1,030
|
|
1,054
|
|
|
3,084
|
|
3,361
|
|
|
Income tax provision
|
5,699
|
|
2,015
|
|
3,139
|
|
|
11,513
|
|
11,647
|
|
|
Net Income
|
$
|
15,854
|
|
$
|
5,816
|
|
$
|
9,847
|
|
|
$
|
32,223
|
|
$
|
33,219
|
|
|
|
|
|
|
|
|
|
Shares Outstanding at End of Period
|
95,544,765
|
|
96,442,161
|
|
103,890,029
|
|
|
95,544,765
|
|
103,890,029
|
|
|
Average Shares Outstanding Assuming Dilution
|
96,208,545
|
|
97,577,010
|
|
104,098,383
|
|
|
97,675,352
|
|
104,595,396
|
|
|
FIRST COMMONWEALTH FINANCIAL CORPORATION
|
|
|
|
|
CONSOLIDATED FINANCIAL DATA
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
2013
|
|
2013
|
|
2012
|
|
BALANCE SHEET (Period End)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from banks
|
$
|
88,179
|
|
|
$
|
77,485
|
|
|
$
|
85,183
|
|
|
Interest-bearing bank deposits
|
5,077
|
|
|
4,497
|
|
|
3,881
|
|
|
Securities
|
1,324,767
|
|
|
1,340,600
|
|
|
1,163,301
|
|
|
|
|
|
|
|
|
Loans
|
4,240,004
|
|
|
4,229,752
|
|
|
4,214,299
|
|
|
Allowance for credit losses
|
(54,957)
|
|
|
(57,452)
|
|
|
(64,114)
|
|
|
Net loans
|
4,185,047
|
|
|
4,172,300
|
|
|
4,150,185
|
|
|
|
|
|
|
|
|
Goodwill and other intangibles
|
161,483
|
|
|
161,677
|
|
|
162,690
|
|
|
Other assets
|
386,409
|
|
|
396,457
|
|
|
398,398
|
|
|
Total Assets
|
$
|
6,150,962
|
|
|
$
|
6,153,016
|
|
|
$
|
5,963,638
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
$
|
908,436
|
|
|
$
|
900,940
|
|
|
$
|
858,003
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
96,587
|
|
|
101,505
|
|
|
97,834
|
|
|
Savings deposits
|
2,491,315
|
|
|
2,535,592
|
|
|
2,433,065
|
|
|
Time deposits
|
1,121,463
|
|
|
1,195,010
|
|
|
1,105,532
|
|
|
Total interest-bearing deposits
|
3,709,365
|
|
|
3,832,107
|
|
|
3,636,431
|
|
|
|
|
|
|
|
|
Total deposits
|
4,617,801
|
|
|
4,733,047
|
|
|
4,494,434
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
551,628
|
|
|
441,848
|
|
|
461,770
|
|
|
Long-term borrowings
|
216,668
|
|
|
216,782
|
|
|
180,471
|
|
|
Total borrowings
|
768,296
|
|
|
658,630
|
|
|
642,241
|
|
|
|
|
|
|
|
|
Other liabilities
|
53,509
|
|
|
50,664
|
|
|
53,072
|
|
|
Shareholders' equity
|
711,356
|
|
|
710,675
|
|
|
773,891
|
|
|
Total Liabilities and Shareholders' Equity
|
$
|
6,150,962
|
|
|
$
|
6,153,016
|
|
|
$
|
5,963,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST COMMONWEALTH FINANCIAL CORPORATION
|
|
CONSOLIDATED FINANCIAL DATA
|
|
Unaudited
|
|
(dollars in thousands)
|
|
|
|
For the Three Months Ended
|
|
|
September
30,
|
Yield/
|
June 30,
|
Yield/
|
September
30,
|
Yield/
|
|
2013
|
Rate
|
2013
|
Rate
|
2012
|
Rate
|
|
NET INTEREST MARGIN (Quarterly Averages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Loans (FTE)(1)
|
$
|
4,258,372
|
|
4.19
|
%
|
$
|
4,262,773
|
|
4.20
|
%
|
$
|
4,186,446
|
|
4.50
|
%
|
|
Securities and interest bearing bank deposits (FTE)(1)
|
1,327,656
|
|
2.50
|
%
|
1,330,752
|
|
2.22
|
%
|
1,175,476
|
|
2.55
|
%
|
|
Total Interest-Earning Assets (FTE)(1)
|
5,586,028
|
|
3.79
|
%
|
5,593,525
|
|
3.73
|
%
|
5,361,922
|
|
4.08
|
%
|
|
Noninterest-earning assets
|
576,741
|
|
|
577,818
|
|
|
588,954
|
|
|
|
Total Assets
|
$
|
6,162,769
|
|
|
$
|
6,171,343
|
|
|
$
|
5,950,876
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
Interest-bearing demand and savings deposits
|
$
|
2,608,249
|
|
0.11
|
%
|
$
|
2,630,512
|
|
0.13
|
%
|
$
|
2,530,100
|
|
0.16
|
%
|
|
Time deposits
|
1,144,766
|
|
1.06
|
%
|
1,216,403
|
|
1.05
|
%
|
1,101,991
|
|
1.45
|
%
|
|
Short-term borrowings
|
547,393
|
|
0.26
|
%
|
445,249
|
|
0.26
|
%
|
485,754
|
|
0.25
|
%
|
|
Long-term borrowings
|
216,733
|
|
1.77
|
%
|
221,310
|
|
1.79
|
%
|
181,038
|
|
4.10
|
%
|
|
Total Interest-Bearing Liabilities
|
4,517,141
|
|
0.45
|
%
|
4,513,474
|
|
0.47
|
%
|
4,298,883
|
|
0.67
|
%
|
|
Noninterest-bearing deposits
|
885,346
|
|
|
873,827
|
|
|
824,784
|
|
|
|
Other liabilities
|
47,932
|
|
|
46,847
|
|
|
53,823
|
|
|
|
Shareholders' equity
|
712,350
|
|
|
737,195
|
|
|
773,386
|
|
|
|
Total Noninterest-Bearing Funding Sources
|
1,645,628
|
|
|
1,657,869
|
|
|
1,651,993
|
|
|
|
Total Liabilities and Shareholders' Equity
|
$
|
6,162,769
|
|
|
$
|
6,171,343
|
|
|
$
|
5,950,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (FTE) (annualized)(1)
|
|
3.43
|
%
|
|
3.35
|
%
|
|
3.54
|
%
|
|
FIRST COMMONWEALTH FINANCIAL CORPORATION
|
|
|
CONSOLIDATED FINANCIAL DATA
|
|
|
Unaudited
|
|
|
(dollars in thousands)
|
|
|
|
|
For the Nine Months Ended
|
|
September
30,
|
Yield/
|
September
30,
|
Yield/
|
|
2013
|
Rate
|
2012
|
Rate
|
|
NET INTEREST MARGIN (Year-to-Date Averages)
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Loans (FTE)(1)
|
$
|
4,248,048
|
|
4.26
|
%
|
$
|
4,148,937
|
|
4.64
|
%
|
|
Securities and interest bearing bank deposits (FTE)(1)
|
1,299,138
|
|
2.35
|
%
|
1,189,739
|
|
2.74
|
%
|
|
Total Interest-Earning Assets (FTE)(1)
|
5,547,186
|
|
3.81
|
%
|
5,338,676
|
|
4.22
|
%
|
|
Noninterest-earning assets
|
574,639
|
|
|
593,883
|
|
|
|
Total Assets
|
$
|
6,121,825
|
|
|
$
|
5,932,559
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
Interest-bearing demand and savings deposits
|
$
|
2,615,158
|
|
0.13
|
%
|
$
|
2,553,173
|
|
0.18
|
%
|
|
Time deposits
|
1,167,593
|
|
1.08
|
%
|
1,156,689
|
|
1.55
|
%
|
|
Short-term borrowings
|
450,219
|
|
0.26
|
%
|
414,451
|
|
0.26
|
%
|
|
Long-term borrowings
|
239,166
|
|
2.17
|
%
|
190,720
|
|
4.00
|
%
|
|
Total Interest-Bearing Liabilities
|
4,472,136
|
|
0.50
|
%
|
4,315,033
|
|
0.73
|
%
|
|
Noninterest-bearing deposits
|
869,526
|
|
|
795,443
|
|
|
|
Other liabilities
|
48,020
|
|
|
51,627
|
|
|
|
Shareholders' equity
|
732,143
|
|
|
770,456
|
|
|
|
Total Noninterest-Bearing Funding Sources
|
1,649,689
|
|
|
1,617,526
|
|
|
|
Total Liabilities and Shareholders' Equity
|
$
|
6,121,825
|
|
|
$
|
5,932,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (FTE) (annualized)(1)
|
|
3.41
|
%
|
|
3.63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
FIRST COMMONWEALTH FINANCIAL CORPORATION
|
|
|
|
|
|
CONSOLIDATED FINANCIAL DATA
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
June 30,
|
September
30,
|
|
|
|
|
2013
|
2013
|
2012
|
|
|
|
|
ASSET QUALITY DETAIL
|
|
|
|
|
|
|
|
Nonperforming Loans:
|
|
|
|
|
|
|
|
Loans on nonaccrual basis
|
$
|
42,122
|
|
$
|
41,767
|
|
$
|
40,704
|
|
|
|
|
|
Troubled debt restructured loans on nonaccrual basis
|
17,807
|
|
17,519
|
|
46,026
|
|
|
|
|
|
Troubled debt restructured loans on accrual basis
|
11,290
|
|
13,811
|
|
7,176
|
|
|
|
|
|
Total Nonperforming Loans
|
$
|
71,219
|
|
$
|
73,097
|
|
$
|
93,906
|
|
|
|
|
|
Other real estate owned ("OREO")
|
9,656
|
|
15,603
|
|
16,016
|
|
|
|
|
|
Repossessions ("Repo")
|
695
|
|
573
|
|
617
|
|
|
|
|
|
Total Nonperforming Assets
|
$
|
81,570
|
|
$
|
89,273
|
|
$
|
110,539
|
|
|
|
|
|
Loans past due in excess of 90 days and still accruing
|
$
|
2,364
|
|
$
|
2,648
|
|
$
|
2,998
|
|
|
|
|
|
Criticized loans
|
180,593
|
|
223,594
|
|
269,041
|
|
|
|
|
|
Nonperforming assets as a percentage of total loans,
|
|
|
|
|
|
|
|
plus OREO and Repos
|
1.92
|
%
|
2.10
|
%
|
2.61
|
%
|
|
|
|
|
Allowance for credit losses
|
$
|
54,957
|
|
$
|
57,452
|
|
$
|
64,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Nine Months
Ended
|
|
September
30,
|
June 30,
|
September
30,
|
|
September
30,
|
September
30,
|
|
2013
|
2013
|
2012
|
|
2013
|
2012
|
|
Net Charge-offs (Recoveries):
|
|
|
|
|
|
|
|
Commercial, financial, agricultural and other
|
$
|
3,000
|
|
$
|
13,547
|
|
$
|
1,197
|
|
|
$
|
16,957
|
|
$
|
4,590
|
|
|
Real estate construction
|
(63)
|
|
624
|
|
1,987
|
|
|
633
|
|
2,235
|
|
|
Commercial real estate
|
800
|
|
683
|
|
27
|
|
|
9,930
|
|
382
|
|
|
Residential real estate
|
686
|
|
232
|
|
481
|
|
|
517
|
|
2,653
|
|
|
Loans to individuals
|
786
|
|
524
|
|
624
|
|
|
2,204
|
|
2,098
|
|
|
Net Charge-offs
|
$
|
5,209
|
|
$
|
15,610
|
|
$
|
4,316
|
|
|
$
|
30,241
|
|
$
|
11,958
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a percentage of average loans
|
|
|
|
|
|
|
|
outstanding (annualized)
|
0.49
|
%
|
1.47
|
%
|
0.41
|
%
|
|
0.95
|
%
|
0.38
|
%
|
|
Provision for credit losses as a percentage of net
|
|
|
|
|
|
|
|
charge-offs
|
52.10
|
%
|
69.19
|
%
|
156.49
|
%
|
|
59.56
|
%
|
124.08
|
%
|
|
Provision for credit losses
|
$
|
2,714
|
|
$
|
10,800
|
|
$
|
6,754
|
|
|
$
|
18,011
|
|
$
|
14,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2013
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
Tangible Equity:
|
|
|
|
|
|
|
|
Total shareholders' equity
|
$
|
711,356
|
|
|
$
|
710,675
|
|
|
$
|
773,891
|
|
|
|
Less: intangible assets
|
161,483
|
|
|
161,677
|
|
|
162,690
|
|
|
|
Tangible Equity
|
549,873
|
|
|
548,998
|
|
|
611,201
|
|
|
|
Less: preferred stock
|
0
|
|
|
0
|
|
|
0
|
|
|
|
Tangible Common Equity
|
$
|
549,873
|
|
|
$
|
548,998
|
|
|
$
|
611,201
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets:
|
|
|
|
|
|
|
|
Total assets
|
$
|
6,150,962
|
|
|
$
|
6,153,016
|
|
|
$
|
5,963,638
|
|
|
|
Less: intangible assets
|
161,483
|
|
|
161,677
|
|
|
162,690
|
|
|
|
Tangible Assets
|
$
|
5,989,479
|
|
|
$
|
5,991,339
|
|
|
$
|
5,800,948
|
|
|
|
|
|
|
|
|
|
|
(3)Tangible Common Equity as a percentage of
|
|
|
|
|
|
|
|
Tangible Assets
|
9.18
|
%
|
|
9.16
|
%
|
|
10.54
|
%
|
|
|
|
|
|
|
|
|
|
Shares Outstanding at End of Period
|
95,544,765
|
|
|
96,442,161
|
|
|
103,890,029
|
|
|
|
(4)Tangible Book Value Per Common Share
|
$
|
5.76
|
|
|
$
|
5.69
|
|
|
$
|
5.88
|
|
|
|
|
|
|
|
|
|
|
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.
|
SOURCE First Commonwealth Financial Corporation