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First Commonwealth Announces Strong First Quarter 2019 Earnings; Declares Quarterly Dividend

FCF

INDIANA, Pa., April 23, 2019 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the first quarter of 2019.  Net income for the first quarter of 2019 was $24.6 million, resulting in diluted earnings per share of $0.25, as compared to net income of $23.3 million and diluted earnings per share of $0.24 for the first quarter of 2018, an increase of $1.3 million and $0.01, or 5.7% and 4.2%, respectively.

First Quarter 2019 Highlights

  • On April 22, 2019, the company announced it has signed a definitive agreement to acquire 14 branches in Central Pennsylvania with approximately $525 million of deposits and $120 million of retail and business loans from Santander Bank, N.A.
  • The net interest margin expanded by five basis points to 3.75% compared to the prior quarter.
  • Total loans grew by $94.7 million compared to the previous quarter, or 6.5% annualized.
  • Total average deposits grew by $107.6 million compared to the previous quarter, or 7.3% annualized.
    • The loan-to-deposit ratio fell 2% from the previous quarter to 96%
  • Strong core returns on average assets and tangible common equity (non-GAAP) of 1.27% and 14.59%, respectively.
  • Continued strong expense control as demonstrated by a stable core efficiency ratio of 58.18% (non-GAAP).
  • Tangible book value per share grew by $0.23, or 13.2% (annualized) from the previous quarter.
  • Recognized by Forbes as one of the “World’s Best Banks” for 2019.

“I am pleased with our results this quarter and I am even more encouraged by the momentum we are generating in our loan and deposit growth, further fueling the expansion of our net interest margin,” stated T. Michael Price, President and Chief Executive Officer.  “Yesterday’s signing of an agreement to purchase 14 Central Pennsylvania branches and $525 million in deposits is an excellent opportunity to complement our existing Western Pennsylvania footprint.  I am confident that our expansion plans underway this year, along with our investments in our digital platform, will continue to position First Commonwealth toward becoming one of the premier community banks in the country.”

Financial Summary

(dollars in thousands,For the Three Months Ended
except per share data)March 31, December 31, March 31,
  2019
  2018
  2018
Reported Results     
Net income$24,589 $26,998 $23,270
Diluted earnings per share$0.25 $0.27 $0.24
Return on average assets 1.27%  1.39%  1.29%
Return on average equity 10.11%  11.06%  10.57%
      
Operating Results (non-GAAP)(1)     
Core net income$24,589 $27,000 $23,536
Core diluted earnings per share$0.25 $0.27 $0.24
Core return on average assets 1.27%  1.39%  1.31%
Return on average tangible common equity 14.59%  16.09%  15.56%
Core return on average tangible common equity 14.59%  16.09%  15.73%
Core efficiency ratio 58.18%  57.45%  58.21%
Net interest margin (FTE) 3.75%  3.70%  3.69%

(1)       Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. See supplemental information included with the release for "non-GAAP Financial Measures and Key Performance Indicators" and additional information.
               
Earnings

Net income for the first quarter of 2019 was $24.6 million, as compared to $23.3 million for the first quarter of 2018, an increase of $1.3 million, or 5.7%, year-over-year.

Core net income (adjusted for acquisition expenses) was $24.6 million, as compared to $23.5 million for the first quarter of 2018 and $27.0 million in the fourth quarter of 2018, an increase of $1.1 million, or 4.5%, year-over-year and a decrease of $2.4 million from the prior quarter.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2019 was 3.75%, an increase of five basis points from the previous quarter and an increase of six basis points from the first quarter of 2018.  The increase from the fourth quarter of 2018 was due primarily to a 12 basis point increase in the yield on interest-earning assets, partially offset by a seven basis point increase in funding costs.

The increase from the previous year is primarily due to improved yields on variable and adjustable loan portfolios following the Federal Reserve’s decisions to increase short-term rates in March, June, September and December of 2018, along with the ability to pay down higher cost short-term borrowings with strong deposit growth.

Total average interest-earning assets increased $107.0 million from the previous quarter due to strong commercial and industrial loan growth.

Total average deposits grew by $107.6 million in the first quarter of 2019 compared to the previous quarter.  Growth was driven by a $76.0 million increase in average interest-bearing transaction accounts, a $23.8 million increase in average time deposits and a $7.8 million increase in average noninterest-bearing deposits.

Credit Quality

Asset quality trends continued to improve during the quarter.  At March 31, 2019, nonperforming loans totaled $31.3 million, a decrease of $0.7 million from December 31, 2018 and a decrease of $26.0 million from March 31, 2018.

Nonperforming loans as a percentage of total loans were 0.53%, 0.55% and 1.06% for the periods ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively.

The provision for credit losses totaled $4.1 million for the quarter ended March 31, 2019, an increase of $2.6 million as compared to the prior quarter and a decrease of $2.8 million from the same quarter last year.  The increase from the previous quarter was due in part to the release of $1.7 million in excess specific reserves in the fourth quarter related to the successful resolution of a commercial credit, as well as reserves for strong organic loan growth.

For the originated loan portfolio at March 31, 2019, the allowance for credit losses to total originated loans was 0.92%, compared to 0.90% at December 31, 2018 and 1.07% at March 31, 2018.

During the first quarter of 2019, net charge-offs were $2.2 million, compared to $4.5 million in the prior quarter and $1.5 million in the first quarter of 2018.  Net charge-offs were 0.15%, 0.31% and 0.11% of average loans (annualized) for the periods ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively.

Noninterest Income and Noninterest Expense

Noninterest income totaled $18.9 million for the first quarter of 2019, as compared to $20.5 million for the fourth quarter of 2018 and $19.2 million for the first quarter of 2018 (excluding net securities gains).  The $0.3 million decrease from the previous year was due to a decrease of $0.8 million in swap-related derivative mark-to-market income, which was partially offset by an increase of $0.5 million in gain on sale of loans and other assets due to higher Small Business Administration (“SBA”) lending activities as compared to the first quarter of 2018.

The $1.7 million decrease in noninterest income from the prior quarter was the result of $1.0 million less in service charges and card-related interchange income (driven by seasonally lower volume and six more processing days in the fourth quarter), as well as a $0.6 million decrease in gain sale of loans and other assets due to a gain on the sale of a nonperforming loan in the prior quarter and a $0.4 million insurance recovery in the prior quarter.  This was partially offset by a $0.3 million increase in gain on sale of mortgage loans.

Net securities gains were $2.8 million during the first quarter of 2018; no such gains were recorded in the current or previous quarter.  The gains in the prior year quarter were attributable to the successful auction calls of two pooled trust preferred securities, for which the company had previously recognized an other-than-temporary impairment charge.

Noninterest expense (excluding merger-related expenses) totaled $49.7 million for the first quarter of 2019, as compared to $50.0 million for the fourth quarter of 2018 and $46.5 million for the first quarter of 2018.  The $0.3 million decrease from the previous quarter was primarily the result of a $0.7 million decrease in other professional fees and a $0.6 million decrease in Pennsylvania state shares tax.  These decreases were partially offset by a $0.6 million increase in occupancy expenses (due primarily to higher snow removal expense during the first quarter) and a $0.5 million increase in advertising and promotion expense as the company invests in expanding its brand into new markets.

The $3.2 million increase in noninterest expense from the first quarter of 2018 was driven largely by higher expenses following the company’s recent acquisition of Foundation Bank on May 1, 2018, as well as the expansion of its commercial, SBA and mortgage lending teams.

Full time equivalent staff was 1,417 at March 31, 2019, 1,426 at December 31, 2018, and 1,365 at March 31, 2018.  The increase from the prior year quarter is the result of the addition of employees from acquisitions and the hiring of additional talent in our new markets and business lines.

Dividends and Capital

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.10 per share, which is payable on May 17, 2019 to shareholders of record as of May 3, 2019. This dividend represents a 3.0% projected annual yield utilizing the April 22, 2019 closing market price of $13.28.

First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at March 31, 2019 were 14.6%, 12.2%, 10.3% and 11.1%, respectively.  First Commonwealth’s current capital levels exceed the fully phased-in Basel III capital requirements issued by U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the first quarter 2019 on Wednesday, April 24, 2019 at 2:00 PM (ET).  The call can be accessed by dialing (toll free) 1-844-792-3645 or through the company’s web page, http://www.fcbanking.com/InvestorRelations.  A replay of the call will be available approximately one hour following the conclusion of the conference by dialing 1-877-344-7529 and entering the access code # 10130417.  A link to the webcast replay will also be accessible on the company’s web page for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services company with 137 community banking offices in 22 counties throughout western and central Pennsylvania and throughout Ohio, as well as corporate banking centers in Pittsburgh, Pennsylvania, and Cleveland and Columbus, Ohio. The company also operates mortgage offices in Wexford, Pennsylvania, as well as Hudson and Dublin, Ohio.  First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency.  For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.

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 First Commonwealth’s control.  Factors that could cause actual results, performance or achievements to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national and international economic conditions and the impact they may have on First Commonwealth and its customers; (2) volatility and disruption in national and international financial markets; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (4) inflation, interest rate, commodity price, securities market and monetary fluctuations; (5) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance); (6) the soundness of other financial institutions; (7)  political instability; (8) impairment of First Commonwealth’s goodwill or other intangible assets; (9) acts of God or of war or terrorism; (10) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (11) changes in consumer spending, borrowings and savings habits; (12) changes in the financial performance and/or condition of First Commonwealth’s borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealth’s ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealth’s markets and among banking organizations and other financial service providers; (17) the ability to increase market share and control expenses; (18) 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; (19) the reliability of First Commonwealth’s vendors, internal control systems or information systems; (20) 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 (21) other risks and uncertainties described in the reports that First Commonwealth files with the Securities and Exchange Commission, including its most recent Annual Report on Form 10‐K. Forward-looking statements speak only as of the date on which they are made. First Commonwealth undertakes no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.


   
FIRST COMMONWEALTH FINANCIAL CORPORATION  
CONSOLIDATED FINANCIAL DATA     
Unaudited     
(dollars in thousands, except per share data)     
 For the Three Months Ended
 March 31, December 31, March 31,
 2019 2018 2018
SUMMARY RESULTS OF OPERATIONS     
Net interest income (FTE) (1)$65,943  $65,514  $60,178 
Provision for credit losses4,095  1,499  6,903 
Noninterest income18,872  20,529  22,043 
Noninterest expense49,730  50,024  46,873 
Net income24,589  26,998  23,270 
Core net income (5)24,589  27,000  23,536 
      
Earnings per common share (diluted)$0.25  $0.27  $0.24 
Core earnings per common share (diluted) (6)$0.25  $0.27  $0.24 
      
KEY FINANCIAL RATIOS     
      
Return on average assets1.27% 1.39% 1.29%
Core return on average assets (7)1.27% 1.39% 1.31%
Return on average shareholders' equity10.11% 11.06% 10.57%
Return on average tangible common equity (8)14.59% 16.09% 15.56%
Core return on average tangible common equity (9)14.59% 16.09% 15.73%
Core efficiency ratio (2)(10)58.18% 57.45% 58.21%
Net interest margin (FTE) (1)3.75% 3.70% 3.69%
      
Book value per common share$10.12  $9.90  $9.21 
Tangible book value per common share (11)7.21  6.98  6.45 
Market value per common share12.60  12.08  14.13 
Cash dividends declared per common share0.10  0.09  0.08 
      
ASSET QUALITY RATIOS     
Nonperforming loans as a percent of end-of-period loans (3)0.53% 0.55% 1.06%
Nonperforming assets as a percent of total assets (3)0.45% 0.46% 0.83%
Net charge-offs as a percent of average loans (annualized) (4)0.15% 0.31% 0.11%
Allowance for credit losses as a percent of nonperforming loans (4)158.74% 149.14% 93.84%
Allowance for credit losses as a percent of end-of-period loans (4)0.85% 0.83% 1.00%
Allowance for credit losses (originated loans and leases) as a percent of total originated loans and leases0.92% 0.90% 1.07%
      
CAPITAL RATIOS     
Shareholders' equity as a percent of total assets12.5% 12.5% 12.3%
Tangible common equity as a percent of tangible assets (12)9.3% 9.1% 8.9%
Leverage Ratio10.3% 10.3% 10.1%
Risk Based Capital - Tier I12.2% 12.3% 11.9%
Risk Based Capital - Total14.6% 14.7% 12.9%
Common Equity - Tier I11.1% 11.1% 10.7%


  
FIRST COMMONWEALTH FINANCIAL CORPORATION 
CONSOLIDATED FINANCIAL DATA   
Unaudited   
(dollars in thousands, except per share data)   
 For the Three Months Ended
 March 31,December 31,March 31,
 201920182018
INCOME STATEMENT   
  Interest income$79,594 $77,945 $66,499 
  Interest expense14,108 12,896 6,814 
Net Interest Income65,486 65,049 59,685 
  Taxable equivalent adjustment (1)457 465 493 
Net Interest Income  (FTE)65,943 65,514 60,178 
  Provision for credit losses4,095 1,499 6,903 
Net Interest Income after Provision for Credit Losses (FTE)61,848 64,015 53,275 
    
  Net securities gains  2,840 
  Trust income1,926 1,887 1,928 
  Service charges on deposit accounts4,245 4,757 4,406 
  Insurance and retail brokerage commissions1,961 1,866 1,868 
  Income from bank owned life insurance1,426 1,445 1,494 
  Gain on sale of mortgage loans1,428 1,169 1,484 
  Gain on sale of other loans and assets1,084 1,725 574 
  Card-related interchange income4,730 5,258 4,742 
Derivative mark-to-market(26)(2)789 
Swap fee income393 759 290 
  Other income1,705 1,665 1,628 
Total Noninterest Income18,872 20,529 22,043 
    
  Salaries and employee benefits27,220 27,535 24,873 
  Net occupancy4,916 4,287 4,369 
  Furniture and equipment3,668 3,636 3,540 
  Data processing2,544 2,706 2,433 
  Pennsylvania shares tax916 1,477 903 
  Advertising and promotion1,240 771 809 
  Intangible amortization754 787 784 
  Collection and repossession547 702 823 
  Other professional fees and services754 1,473 1,007 
  FDIC insurance574 417 776 
  Litigation and operational losses401 351 179 
  Loss on sale or write-down of assets65 205 197 
  Merger and acquisition related 3 337 
  Other operating expenses6,131 5,674 5,843 
Total Noninterest Expense49,730 50,024 46,873 
    
Income before Income Taxes30,990 34,520 28,445 
  Taxable equivalent adjustment (1)457 465 493 
  Income tax provision5,944 7,057 4,682 
Net Income$24,589 $26,998 $23,270 
    
Shares Outstanding at End of Period98,625,806 98,518,668 97,603,151 
Average Shares Outstanding Assuming Dilution98,706,827 99,358,759 97,601,162 
    


FIRST COMMONWEALTH FINANCIAL CORPORATION   
CONSOLIDATED FINANCIAL DATA     
Unaudited     
(dollars in thousands)     
      
 March 31, December 31, March 31,
 2019 2018 2018
BALANCE SHEET (Period End)     
Assets     
  Cash and due from banks$100,724  $95,934  $65,886 
  Interest-bearing bank deposits23,168  3,013  9,736 
  Securities available for sale, at fair value918,479  941,373  837,277 
  Securities held to maturity, at amortized cost384,909  393,855  410,430 
  Loans held for sale9,627  11,881  9,759 
      
  Loans5,871,070  5,774,139  5,381,305 
  Allowance for credit losses(49,653) (47,764) (53,732)
  Net loans5,821,417  5,726,375  5,327,573 
      
  Goodwill and other intangibles287,078  287,240  269,403 
  Lease right of use47,566     
  Other assets379,705  368,584  390,703 
Total Assets$7,972,673  $7,828,255  $7,320,767 
      
Liabilities and Shareholders' Equity     
  Noninterest-bearing demand deposits$1,510,566  $1,466,213  $1,443,747 
      
  Interest-bearing demand deposits211,548  180,209  187,286 
  Savings deposits3,517,350  3,401,354  3,428,967 
  Time deposits891,296  850,216  643,522 
  Total interest-bearing deposits4,620,194  4,431,779  4,259,775 
      
  Total deposits6,130,760  5,897,992  5,703,522 
      
  Short-term borrowings565,616  721,823  588,016 
  Long-term borrowings184,841  185,056  87,676 
  Total borrowings750,457  906,879  675,692 
      
  Lease liabilities51,371     
  Other liabilities42,066  47,995  42,204 
  Shareholders' equity998,019  975,389  899,349 
Total Liabilities and Shareholders' Equity$7,972,673  $7,828,255  $7,320,767 


 
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)


 For the Three Months Ended
 March 31,Yield/December 31,Yield/March 31,Yield/
 2019Rate2018Rate2018Rate
NET INTEREST MARGIN    
       
Assets      
Loans (FTE)(1)(3)$5,811,587 4.94%$5,704,468 4.81%$5,413,677 4.41%
Securities and interest bearing bank deposits (FTE) (1)1,316,445 2.86%1,316,488 2.79%1,198,728 2.75%
Total Interest-Earning Assets (FTE) (1)7,128,032 4.55%7,020,956 4.43%6,612,405 4.11%
Noninterest-earning assets750,876  712,047  687,977  
Total Assets$7,878,908  $7,733,003  $7,300,382  
       
Liabilities and Shareholders' Equity      
Interest-bearing demand and savings deposits$3,677,387 0.53%$3,601,354 0.45%$3,573,153 0.25%
Time deposits865,944 1.57%842,123 1.40%633,214 0.83%
Short-term borrowings615,140 2.27%633,363 2.10%672,135 1.38%
Long-term borrowings184,931 5.47%185,144 5.29%87,780 4.52%
Total Interest-Bearing Liabilities5,343,402 1.07%5,261,984 0.97%4,966,282 0.56%
Noninterest-bearing deposits1,464,750  1,456,983  1,400,218  
Other liabilities83,920  45,445  41,264  
Shareholders' equity986,836  968,591  892,618  
Total Noninterest-Bearing Funding Sources2,535,506  2,471,019  2,334,100  
Total Liabilities and Shareholders' Equity$7,878,908  $7,733,003  $7,300,382  
       
Net Interest Margin (FTE) (annualized)(1) 3.75% 3.70% 3.69%


  
FIRST COMMONWEALTH FINANCIAL CORPORATION 
CONSOLIDATED FINANCIAL DATA   
Unaudited   
(dollars in thousands)   
 March 31,December 31,March 31,
 201920182018
Loan Portfolio Detail   
Commercial Loan Portfolio:   
Commercial, financial, agricultural and other$1,180,320 $1,138,473 $1,131,594 
Commercial real estate2,138,376 2,123,544 2,027,072 
Real estate construction324,903 305,875 222,251 
Total Commercial3,643,599 3,567,892 3,380,917 
    
Consumer Loan Portfolio:   
Closed-end mortgages1,048,097 1,037,124 916,130 
Home equity lines of credit517,252 525,281 518,493 
Real estate construction64,484 53,103 24,710 
Total Real Estate - Consumer1,629,833 1,615,508 1,459,333 
    
Auto loans491,605 481,954 451,445 
Direct installment36,625 37,454 23,820 
Personal lines of credit61,599 63,131 56,145 
Student loans7,809 8,200 9,645 
Total Other Consumer597,638 590,739 541,055 
Total Consumer Portfolio2,227,471 2,206,247 2,000,388 
Total Portfolio Loans5,871,070 5,774,139 5,381,305 
Loans held for sale9,627 11,881 9,759 
Total Loans$5,880,697 $5,786,020 $5,391,064 
    
    
 March 31,December 31,March 31,
 201920182018
ASSET QUALITY DETAIL   
Nonperforming Loans:   
Loans on nonaccrual basis$16,286 $11,509 $28,317 
Troubled debt restructured loans on nonaccrual basis5,874 11,761 10,233 
Troubled debt restructured loans on accrual basis9,120 8,757 18,707 
  Total Nonperforming Loans$31,280 $32,027 $57,257 
Other real estate owned ("OREO")3,993 3,935 2,997 
Repossessions ("Repos")342 266 162 
  Total Nonperforming Assets$35,615 $36,228 $60,416 
Loans past due in excess of 90 days and still accruing1,509 1,582 1,955 
Classified loans39,428 40,241 78,154 
Criticized loans120,501 127,235 126,438 
    
Nonperforming assets as a percentage of total loans, plus OREO and Repos0.61%0.63%1.12%
Allowance for credit losses$49,653 $47,764 $53,732 
    


FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)


 For the Three Months Ended
 March 31,December 31,March 31,
 201920182018
Net Charge-offs (Recoveries):   
  Commercial, financial, agricultural and other$922 $1,672 $27 
  Real estate construction(42)(42)(7)
  Commercial real estate258 1,489 99 
  Residential real estate76 243 379 
  Loans to individuals992 1,119 971 
Net Charge-offs$2,206 $4,481 $1,469 
    
Net charge-offs as a percentage of average loans outstanding (annualized) (4)0.15%0.31%0.11%
Provision for credit losses as a percentage of net charge-offs185.63%33.45%469.91%
Provision for credit losses$4,095 $1,499 $6,903 


DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
    
(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21% for 2019 and  2018.
(2) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles, unfunded commitment expense and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.
(3) Includes held for sale loans.
(4) Excludes held for sale loans.
    
 For the Three Months Ended
 March 31,December 31,March 31,
 201920182018
    
Net Income$24,589 $26,998 $23,270 
Intangible amortization754 787 784 
Tax benefit of amortization of intangibles(158)(165)(165)
Net Income, adjusted for tax affected amortization of intangibles25,185 27,620 23,889 
    
Average Tangible Equity:   
  Total shareholders' equity$986,836 $968,591 $892,618 
  Less: intangible assets286,874 287,610 269,947 
  Tangible Equity699,962 680,981 622,671 
  Less: preferred stock   
  Tangible Common Equity$699,962 $680,981 $622,671 
    
(8)Return on Average Tangible Common Equity14.59%16.09%15.56%
    


 
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)


DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES  
 
 For the Three Months Ended
 March 31,December 31,March 31,
 201920182018
    
Core Net Income:   
Total Net Income$24,589 $26,998 $23,270 
Merger & acquisition related expenses 3 337 
Tax benefit of merger & acquisition related expenses (1)(71)
(5) Core net income24,589 27,000 23,536 
Average Shares Outstanding Assuming Dilution98,706,827 99,358,759 97,601,162 
(6) Core Earnings per common share (diluted)$0.25 $0.27 $0.24 
    
Intangible amortization754 787 784 
Tax benefit of amortization of intangibles(158)(165)(165)
Core Net Income, adjusted for tax affected amortization of intangibles$25,185 $27,622 $24,155 
    
(9) Core Return on Average Tangible Common Equity14.59%16.09%15.73%
    
    
 For the Three Months Ended
 March 31,December 31,March 31,
 201920182018
Core Return on Average Assets:   
Total Net Income$24,589 $26,998 $23,270 
Total Average Assets7,878,908 7,733,003 7,300,382 
Return on Average Assets1.27%1.39%1.29%
    
Core Net Income (5)$24,589 $27,000 $23,536 
Total Average Assets7,878,908 7,733,003 7,300,382 
(7) Core Return on Average Assets1.27%1.39%1.31%


 
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)


DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES  
    
 For the Three Months Ended
 March 31,December 31,March 31,
 201920182018
Core Efficiency Ratio:   
Total Noninterest Expense$49,730 $50,024 $46,873 
Adjustments to Noninterest Expense:   
Unfunded commitment reserve(381)(203)5 
Intangible amortization754 787 784 
Merger and acquisition related 3 337 
Noninterest Expense - Core$49,357 $49,437 $45,747 
    
Net interest income, fully tax equivalent$65,943 $65,514 $60,178 
Total noninterest income18,872 20,529 22,043 
Net securities gains  (2,840)
Total Revenue$84,815 $86,043 $79,381 
    
Adjustments to Revenue:   
Derivative mark-to-market(26)(2)789 
Total Revenue - Core$84,841 $86,045 $78,592 
    
(10)Core Efficiency Ratio58.18%57.45%58.21%
    
    
 March 31,December 31,March 31,
 201920182018
Tangible Equity:   
  Total shareholders' equity$998,019 $975,389 $899,349 
  Less: intangible assets287,078 287,240 269,403 
  Tangible Equity710,941 688,149 629,946 
  Less: preferred stock   
  Tangible Common Equity$710,941 $688,149 $629,946 
    
Tangible Assets:   
  Total assets$7,972,673 $7,828,255 $7,320,767 
  Less: intangible assets287,078 287,240 269,403 
  Tangible Assets$7,685,595 $7,541,015 $7,051,364 
    
(12)Tangible Common Equity as a percentage of Tangible Assets9.25%9.13%8.93%
    
  Shares Outstanding at End of Period98,625,806 98,518,668 97,603,151 
(11)Tangible Book Value Per Common Share$7.21 $6.98 $6.45 
    
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.
 

Media Relations:
Jonathan E. Longwill
Vice President / Communications and Media Relations
Phone: 724-463-6806
E-mail: JLongwill@fcbanking.com

Investor Relations:
Ryan M. Thomas
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com

                                               

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