INDIANA, Pa., Jan. 27, 2011 /PRNewswire/ -- First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $11.9 million, or $0.11 diluted earnings per share, for the fourth quarter ended December 31, 2010 compared to net income of $2.7 million, or $0.03 diluted earnings per share, in the fourth quarter of 2009. For the year ended December 31, 2010, net income was $23.0 million, or $0.25 diluted earnings per share, compared to a net loss of $20.1 million or $0.24 per share for the year 2009. The increase in net income for both periods was primarily the result of a lower provision for credit losses and a decrease in net securities impairment losses on investments in pooled trust preferred collateralized debt obligations.
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John J. Dolan, President and Chief Executive Officer, stated, "We are pleased to report favorable earnings results for the fourth quarter and the entire year. While some measure of uncertainty remains regarding the interest rate environment, employment and the state of the housing market, the economy of western Pennsylvania continues to be relatively stable. We remain vigilant monitoring the effect of these variables on our operations and on our strategy for 2011 and beyond."
Credit Quality
The provision for credit losses was $8.0 million and $61.6 million for the fourth quarter and year to date periods ended December 31, 2010, respectively, as compared to $21.1 million and $100.6 million in the prior year periods. The primary components of the fourth quarter 2010 provision for credit losses included a $3.4 million specific reserve for a $9.6 million student housing construction loan in eastern Pennsylvania that was placed in nonaccrual status during the fourth quarter of 2010. Additionally, a $3.0 million specific reserve was recorded for an $8.6 million lot development loan and a $1.3 million line of credit. These loans are located in central Pennsylvania and placed in nonaccrual status in the fourth quarter of 2010.
For the quarter ended December 31, 2010, nonperforming loans were $117.5 million, a decrease of $6.7 million from September 30, 2010. The decrease was primarily the result of a $15.4 million partial charge-off and an $8.0 million principal payment on a $44.1 million line of credit to a western Pennsylvania real estate developer that was placed into nonperforming status in the fourth quarter of 2009. Nonperforming loans as a percentage of total loans were 2.79%, 2.89% and 3.20% for the periods ended December 31, 2010, September 30, 2010 and December 31, 2009, respectively.
Dolan commented, "The fourth quarter of 2010 showed continued signs of the containment and resolution of legacy credit issues. Even though nonperforming loans have decreased to the lowest level since June 30, 2009, this area still requires careful attention."
During the fourth quarter of 2010, net charge-offs were $22.4 million compared to $29.9 million in the fourth quarter of 2009. The most significant loan charge-offs for the fourth quarter of 2010 were the aforementioned $15.4 million on the western Pennsylvania line of credit and $2.6 million for a Pennsylvania manufacturer. For the twelve months ended December 31, 2010 net charge-offs were $72.0 million, or 1.61% of average loans on an annualized basis, compared to $71.7 million, or 1.57% of average loans on an annualized basis, for the same period in 2009. The allowance for credit losses as a percentage of total loans outstanding was 1.69%, 1.99% and 1.76% for December 31, 2010, September 30, 2010 and December 31, 2009, respectively.
Other real estate owned ("OREO") acquired through foreclosure was $24.7 million at December 31, 2010; $17.9 million is related to a food manufacturing property that was previously under a sales agreement which expired. The property is currently being remarketed.
Net Interest Income and Net Margin
During the fourth quarter of 2010 net interest income of $51.7 million, on a taxable equivalent basis, decreased $4.7 million, or 8%, compared to the fourth quarter of 2009. The decrease was a result of a $607.8 million decline in average interest-earning assets, partially offset by an 8 basis point increase in the net interest margin. Net interest margin was 3.86%, 3.90% and 3.78% for the three-month periods ended December 31, 2010, September 30, 2010 and December 31, 2009, respectively. From the third quarter of 2010 to the fourth quarter of 2010, the net interest margin decreased by 4 basis points as a result of lower yields on new loans, lower investment rates on the reinvestment of maturing securities and the continued sale strategy for municipal securities. For the year ended December 31, 2010 net interest income, on a taxable equivalent basis, decreased $2.9 million, or 1%. The decrease was primarily due to a $322.3 million decline in average interest-earning assets, partially offset by an increase of 16 basis points in the net interest margin. The net interest margin for the year ended December 31, 2010 and 2009, respectively, was 3.87% and 3.71%. The improved net interest margin on the year over year comparisons is primarily the result of a more favorable deposit mix, disciplined loan pricing and reduced balance sheet leveraging.
Significant changes to First Commonwealth's balance sheet from December 31, 2009 to December 31, 2010 include:
- An $841.0 million, or 68%, reduction in borrowings.
- The decrease of $418.4 million, or 9%, in loans is a result of more disciplined underwriting guidelines concerning geography and size for commercial loans, the managing down of large credit relationships, generally weak borrower demand and planned decreases in residential real estate loans.
- The $205.5 million, or 17%, decline in investment securities is primarily the result of matured securities not being replaced as the risk/reward for balance sheet leveraging activities has become less attractive in the current interest rate environment. An additional strategy was also implemented in the second quarter of 2010 that reduced the municipal securities portfolio exposure from $209.5 million at December 31, 2009 to $47.8 million at December 31, 2010.
- Continued improvement in the mix of deposits, as a $213.1 million, or 7%, growth in lower costing transaction and savings deposits, offset a $131.1 million decrease in time deposits.
- During the third quarter of 2010, First Commonwealth completed a successful public offering by issuing 18,543,750 shares of common stock. The net proceeds of $81.4 million will provide flexibility to capitalize on opportunities presented within our market area as well as to support regulatory capital needs. First Commonwealth's capital ratios for leverage, Total and Tier I at December 31, 2010 were 11.8%, 14.2% and 13.0%, respectively.
Dolan added, "Modifying the risk profile of our balance sheet was a major strategic initiative throughout 2010 from a credit, liquidity, capital and funding perspective. I am particularly pleased with the growth in lower costing transactional deposits. Not only has this growth and mix change improved performance, but is extremely important in deepening customer relationships. We believe we are well positioned structurally to take advantage of 2011 market opportunities."
Noninterest Income
Recognized net security losses, including other-than-temporary impairment charges, were $33 thousand, $2.9 million and $5.5 million for the three-month periods ended December 31, 2010, September 30, 2010 and December 31, 2009, respectively. These losses resulted primarily from other-than-temporary impairment charges on investments in pooled trust preferred collateralized debt obligations. Net security losses were negligible in the fourth quarter of 2010 as a result of decreased deferral and default levels as well as the effect of incorporating projected cures of interest deferrals into the other-than-temporary cash flow analysis. For the twelve months ended December 31, 2010 and 2009, net security losses were $6.8 million and $35.9 million, respectively. Net security losses in 2010 were partially offset by $1.6 million of security gains from the aforementioned sale of municipal securities.
Noninterest income, excluding net security losses, was essentially flat in the fourth quarter of 2010 compared to the same period last year. Increases of $0.7 million in swap fee income, $0.4 million in card related interchange income, $0.3 million in trust income and $0.2 million in income from bank owned life insurance were offset by decreases of $0.8 million in insurance and brokerage commissions, due to lower sales activity, and $0.7 million in service charges on deposit accounts, as a result of new regulations and shifts in consumer behavior.
For the year ended December 31, 2010, noninterest income, excluding net security losses, increased $0.8 million, or 1%, when compared to the same period of 2009. Trust income increased $1.1 million as a result of increased market values of assets under management and revised pricing schedules; card-related interchange income increased $1.9 million due to growth in demand deposit accounts, increased usage of debit cards and larger dollar transactions; and income from bank owned life insurance increased $0.9 million as a result of improved crediting rates. Partially offsetting these increases were decreases of $1.8 million in other income due to a $2.1 million gain from a legal settlement in 2009, $0.9 million in insurance and brokerage commissions and $0.5 million in service charges on deposit accounts.
Noninterest Expense
Noninterest expense increased $2.9 million, or 7%, in the fourth quarter of 2010 from the fourth quarter of 2009. The increase is primarily related to $1.4 million of severance expense related to managing staffing levels, $0.8 million of additional reserve to unfunded loan commitments, $0.6 million in collection and repossession expense, and $0.9 million of other expense due to higher marketing and other professional fees and services.
For the year ended December 31, 2010, as compared to the same period last year, noninterest expense remained essentially flat at $171.2 million. The company recorded declines associated with the expense reduction initiative that commenced in 2009, in FDIC premiums due to the special assessment of $2.9 million in 2009, in collection and repossession expenses of $0.6 million primarily related to two loans that were transferred to OREO in 2009 and in salaries and employee benefits of $3.0 million, excluding the $1.9 million increase in severance expense due to changes in staffing levels. These decreases were offset by a $2.2 million write-down to current fair value for an OREO property and increases in data processing, software and maintenance expense of $1.2 million primarily due to higher investments in technology solutions.
Full time equivalent staff was 1,565 and 1,621 for the periods ended December 31, 2010 and 2009, respectively. The efficiency ratio, calculated as total noninterest expense as a percentage of total revenue (total revenue consists of net interest income, on a taxable equivalent basis, plus total noninterest income, excluding net impairment losses and net securities gains), was 63% for the year ended December 31, 2010 as compared to 62% during the same period in 2009.
Dolan commented, "We continue to make significant progress in offsetting the upward industry shift in operating expense due to added regulatory, compliance and credit cycle challenges. These efforts will remain a focus in 2011 as we see additional opportunities through process improvements and better technology utilization."
Dividend
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.03 per share on January 18, 2011 which is payable on February 15, 2011 to shareholders of record as of January 31, 2011. This dividend represents a $0.02 per share increase over the previous quarter and a 2% projected annual yield utilizing the December 31, 2010 closing market price of $7.08.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter of 2010 on Thursday, January 27, 2011 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-877-317-6789 or through our web page, http://www.fcbanking.com at our "Investor Relations" link. A replay of the call will be available one hour after the end of the conference at this web page for 30 days.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $5.8 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 115 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.
FIRST COMMONWEALTH FINANCIAL CORPORATION |
|||||||||
CONSOLIDATED SELECTED FINANCIAL DATA (a) |
|||||||||
(dollars in thousands, except share data) |
|||||||||
For the Three Months Ended |
For the Year Ended |
||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
December 31, |
December 31, |
|||
2010 |
2010 |
2010 |
2010 |
2009 |
2010 |
2009 |
|||
Interest Income |
|||||||||
Interest and fees on loans |
$54,236 |
$56,051 |
$57,367 |
$57,408 |
$58,877 |
$225,062 |
$232,030 |
||
Interest and dividends on investments: |
|||||||||
Taxable interest |
8,591 |
9,193 |
9,664 |
10,467 |
11,300 |
37,915 |
50,591 |
||
Interest exempt from federal income taxes |
505 |
721 |
1,839 |
2,151 |
2,351 |
5,216 |
10,445 |
||
Dividends |
14 |
13 |
19 |
27 |
25 |
73 |
208 |
||
Interest on bank deposits |
17 |
4 |
48 |
25 |
4 |
94 |
7 |
||
Total interest income |
63,363 |
65,982 |
68,937 |
70,078 |
72,557 |
268,360 |
293,281 |
||
Interest Expense |
|||||||||
Interest on deposits |
11,004 |
12,194 |
13,067 |
13,580 |
15,338 |
49,845 |
69,802 |
||
Interest on short-term borrowings |
196 |
284 |
616 |
852 |
789 |
1,948 |
4,216 |
||
Interest on subordinated debentures |
1,399 |
1,429 |
1,390 |
1,375 |
1,398 |
5,593 |
6,170 |
||
Interest on other long-term debt |
793 |
979 |
1,268 |
1,173 |
1,592 |
4,213 |
6,583 |
||
Total interest on long-term debt |
2,192 |
2,408 |
2,658 |
2,548 |
2,990 |
9,806 |
12,753 |
||
Total interest expense |
13,392 |
14,886 |
16,341 |
16,980 |
19,117 |
61,599 |
86,771 |
||
Net Interest Income |
49,971 |
51,096 |
52,596 |
53,098 |
53,440 |
206,761 |
206,510 |
||
Taxable equivalent adjustment |
1,772 |
1,965 |
2,639 |
2,798 |
2,975 |
9,174 |
12,303 |
||
Net Interest Income (a) |
51,743 |
53,061 |
55,235 |
55,896 |
56,415 |
215,935 |
218,813 |
||
Provision for credit losses |
8,000 |
4,522 |
4,010 |
45,020 |
21,059 |
61,552 |
100,569 |
||
Net Interest Income after Provision for Credit Losses (a) |
43,743 |
48,539 |
51,225 |
10,876 |
35,356 |
154,383 |
118,244 |
||
Noninterest Income |
|||||||||
Changes in fair value on impaired securities |
4,554 |
(5,787) |
190 |
(1,517) |
(4,091) |
(2,560) |
(72,574) |
||
Non-credit related (gains) losses on securities not expected to be sold (recognized in other comprehensive income) |
(4,597) |
1,497 |
(2,300) |
(1,233) |
(1,564) |
(6,633) |
36,389 |
||
Net impairment losses |
(43) |
(4,290) |
(2,110) |
(2,750) |
(5,655) |
(9,193) |
(36,185) |
||
Net securities gains |
10 |
1,430 |
562 |
420 |
149 |
2,422 |
273 |
||
Trust income |
1,519 |
1,486 |
1,398 |
1,494 |
1,201 |
5,897 |
4,805 |
||
Service charges on deposit accounts |
3,911 |
4,302 |
4,603 |
4,152 |
4,642 |
16,968 |
17,440 |
||
Insurance and retail brokerage commissions |
1,041 |
1,600 |
1,866 |
1,862 |
1,819 |
6,369 |
7,259 |
||
Income from bank owned life insurance |
1,396 |
1,377 |
1,301 |
1,257 |
1,192 |
5,331 |
4,442 |
||
Card related interchange income |
2,764 |
2,689 |
2,686 |
2,320 |
2,301 |
10,459 |
8,559 |
||
Other income |
3,657 |
2,285 |
2,343 |
2,696 |
3,220 |
10,981 |
12,732 |
||
Total noninterest income |
14,255 |
10,879 |
12,649 |
11,451 |
8,869 |
49,234 |
19,325 |
||
Noninterest Expense |
|||||||||
Salaries and employee benefits |
20,997 |
20,617 |
21,047 |
22,327 |
21,073 |
84,988 |
86,059 |
||
Net occupancy expense |
3,522 |
3,317 |
3,539 |
3,893 |
3,262 |
14,271 |
14,053 |
||
Furniture and equipment expense |
3,218 |
3,084 |
3,101 |
3,165 |
3,012 |
12,568 |
12,085 |
||
Data processing expense |
1,389 |
1,367 |
1,478 |
1,437 |
1,254 |
5,671 |
4,687 |
||
Pennsylvania shares tax expense |
1,473 |
1,468 |
1,457 |
1,057 |
1,361 |
5,455 |
5,314 |
||
Intangible amortization |
390 |
408 |
576 |
657 |
656 |
2,031 |
2,826 |
||
Collection and repossession expense |
1,504 |
1,209 |
794 |
923 |
915 |
4,430 |
5,010 |
||
Other professional fees and services |
1,184 |
719 |
1,062 |
1,166 |
796 |
4,131 |
3,429 |
||
FDIC insurance |
1,959 |
2,014 |
2,012 |
1,963 |
2,041 |
7,948 |
10,471 |
||
Other operating expenses |
7,742 |
6,728 |
8,612 |
6,651 |
6,153 |
29,733 |
27,217 |
||
Total noninterest expense |
43,378 |
40,931 |
43,678 |
43,239 |
40,523 |
171,226 |
171,151 |
||
Income (Loss) before income taxes |
14,620 |
18,487 |
20,196 |
(20,912) |
3,702 |
32,391 |
(33,582) |
||
Taxable equivalent adjustment |
1,772 |
1,965 |
2,639 |
2,798 |
2,975 |
9,174 |
12,303 |
||
Income tax provision (benefit) |
903 |
5,863 |
4,015 |
(10,542) |
(2,002) |
239 |
(25,821) |
||
Net Income (Loss) |
$11,945 |
$10,659 |
$13,542 |
($13,168) |
$2,729 |
$22,978 |
($20,064) |
||
Average Shares Outstanding |
104,524,923 |
97,199,306 |
85,777,550 |
85,029,748 |
84,681,199 |
93,197,225 |
84,589,780 |
||
Average Shares Outstanding Assuming Dilution |
104,527,683 |
97,203,753 |
85,788,566 |
85,029,748 |
84,681,199 |
93,199,773 |
84,589,780 |
||
Per Share Data: |
|||||||||
Basic Earnings (Loss) Per Share |
$0.11 |
$0.11 |
$0.15 |
($0.15) |
$0.03 |
$0.25 |
($0.24) |
||
Diluted Earnings (Loss) Per Share |
$0.11 |
$0.11 |
$0.15 |
($0.15) |
$0.03 |
$0.25 |
($0.24) |
||
Cash Dividends Declared per Common Share |
$0.01 |
$0.01 |
$0.01 |
$0.03 |
$0.03 |
$0.06 |
$0.18 |
||
(a) Presented on a taxable equivalent basis meaning net interest income is adjusted for the effect of tax-exempt income as if it were taxable using the 35% Federal income tax statutory rate. |
|||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||
CONSOLIDATED SELECTED FINANCIAL DATA |
||||||
(dollars in thousands, except share data) |
||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||
2010 |
2010 |
2010 |
2010 |
2009 |
||
Assets |
||||||
Cash and due from banks |
$69,854 |
$94,567 |
$86,855 |
$79,136 |
$89,232 |
|
Interest-bearing bank deposits |
4 |
40,852 |
1,503 |
57,073 |
327 |
|
Securities available-for-sale, at fair value |
967,715 |
927,121 |
996,220 |
1,062,713 |
1,133,856 |
|
Securities held to maturity, at amortized cost |
0 |
0 |
0 |
31,891 |
36,758 |
|
Other investments |
48,859 |
51,431 |
51,431 |
51,431 |
51,431 |
|
Loans: |
||||||
Portfolio loans |
4,218,083 |
4,299,573 |
4,434,291 |
4,595,409 |
4,636,501 |
|
Allowance for credit losses |
(71,229) |
(85,646) |
(88,046) |
(118,725) |
(81,639) |
|
Net loans |
4,146,854 |
4,213,927 |
4,346,245 |
4,476,684 |
4,554,862 |
|
Premises and equipment, net |
66,981 |
68,270 |
69,203 |
70,357 |
70,742 |
|
Other real estate owned |
24,700 |
24,555 |
21,548 |
23,191 |
24,287 |
|
Goodwill |
159,956 |
159,956 |
159,956 |
159,956 |
159,956 |
|
Other intangibles, net |
5,376 |
5,766 |
6,175 |
6,752 |
7,407 |
|
Other assets |
322,543 |
325,258 |
318,933 |
324,645 |
317,435 |
|
Total assets |
$5,812,842 |
$5,911,703 |
$6,058,069 |
$6,343,829 |
$6,446,293 |
|
Liabilities |
||||||
Deposits (all domestic): |
||||||
Noninterest-bearing |
$706,889 |
$730,939 |
$651,250 |
$639,184 |
$641,231 |
|
Interest-bearing demand deposits |
95,260 |
103,346 |
107,261 |
99,218 |
107,612 |
|
Savings deposits |
2,335,773 |
2,354,843 |
2,360,648 |
2,273,714 |
2,175,953 |
|
Time deposits |
1,479,930 |
1,538,743 |
1,619,479 |
1,640,153 |
1,610,989 |
|
Total interest-bearing |
3,910,963 |
3,996,932 |
4,087,388 |
4,013,085 |
3,894,554 |
|
Total deposits |
4,617,852 |
4,727,871 |
4,738,638 |
4,652,269 |
4,535,785 |
|
Short-term borrowings |
187,861 |
162,020 |
355,682 |
794,195 |
958,932 |
|
Subordinated debentures |
105,750 |
105,750 |
105,750 |
105,750 |
105,750 |
|
Other long-term debt |
98,748 |
119,475 |
155,250 |
119,084 |
168,697 |
|
Total long-term debt |
204,498 |
225,225 |
261,000 |
224,834 |
274,447 |
|
Other liabilities |
52,854 |
54,777 |
48,499 |
39,452 |
38,318 |
|
Total liabilities |
5,063,065 |
5,169,893 |
5,403,819 |
5,710,750 |
5,807,482 |
|
Shareholders' Equity |
||||||
Preferred stock, $1 par value per share, 3,000,000 shares authorized, none issued |
0 |
0 |
0 |
0 |
0 |
|
Common stock, $1 par value per share, 200,000,000 shares authorized |
105,515 |
105,515 |
86,971 |
86,755 |
86,600 |
|
Additional paid-in capital |
366,488 |
366,647 |
303,961 |
302,841 |
301,523 |
|
Retained earnings |
291,492 |
280,706 |
271,139 |
258,593 |
278,887 |
|
Accumulated other comprehensive (loss) income, net |
(2,458) |
1,009 |
5,236 |
(1,181) |
(6,045) |
|
Treasury stock, at cost |
(7,660) |
(7,967) |
(8,457) |
(8,829) |
(16,554) |
|
Unearned ESOP shares |
(3,600) |
(4,100) |
(4,600) |
(5,100) |
(5,600) |
|
Total shareholders' equity |
749,777 |
741,810 |
654,250 |
633,079 |
638,811 |
|
Total liabilities and shareholders' equity |
$5,812,842 |
$5,911,703 |
$6,058,069 |
$6,343,829 |
$6,446,293 |
|
Book value per share |
$7.15 |
$7.08 |
$7.59 |
$7.36 |
$7.50 |
|
Market value per share |
$7.08 |
$5.45 |
$5.25 |
$6.71 |
$4.65 |
|
FIRST COMMONWEALTH FINANCIAL CORPORATION |
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CONSOLIDATED SELECTED FINANCIAL DATA |
||||||||
Quarter To Date Average Balance Sheets |
||||||||
(dollars in thousands) |
||||||||
December 31, |
December 31, |
|||||||
2010 |
2009 |
|||||||
Average |
Income/ |
Yield or |
Average |
Income/ |
Yield or |
|||
Assets |
||||||||
Interest-earning assets: |
||||||||
Interest-bearing deposits with banks |
$28,163 |
$17 |
0.24% |
$676 |
$4 |
2.04% |
||
Tax-free investment securities |
46,993 |
777 |
6.56% |
216,109 |
3,617 |
6.64% |
||
Taxable investment securities |
943,098 |
8,605 |
3.62% |
1,050,948 |
11,325 |
4.28% |
||
Loans, net of unearned income (b)(c) |
4,295,788 |
55,736 |
5.15% |
4,654,144 |
60,586 |
5.16% |
||
Total interest-earning assets |
$5,314,042 |
$65,135 |
4.86% |
$5,921,877 |
$75,532 |
5.06% |
||
Noninterest-earning assets: |
||||||||
Cash |
77,949 |
83,886 |
||||||
Allowance for credit losses |
(88,630) |
(90,436) |
||||||
Other assets |
596,997 |
560,820 |
||||||
Total noninterest-earning assets |
586,316 |
554,270 |
||||||
Total Assets |
$5,900,358 |
$6,476,147 |
||||||
Liabilities and Shareholders' Equity |
||||||||
Interest-bearing liabilities: |
||||||||
Interest-bearing demand deposits (d) |
$627,927 |
$161 |
0.10% |
$605,642 |
$310 |
0.20% |
||
Savings deposits (d) |
1,866,335 |
2,528 |
0.54% |
1,709,407 |
4,231 |
0.98% |
||
Time deposits |
1,505,369 |
8,315 |
2.19% |
1,644,011 |
10,797 |
2.61% |
||
Short-term borrowings |
173,227 |
196 |
0.45% |
931,170 |
789 |
0.34% |
||
Long-term debt |
214,362 |
2,192 |
4.06% |
277,528 |
2,990 |
4.27% |
||
Total interest-bearing liabilities |
$4,387,220 |
$13,392 |
1.21% |
$5,167,758 |
$19,117 |
1.47% |
||
Noninterest-bearing liabilities and shareholders' equity: |
||||||||
Noninterest-bearing demand deposits (d) |
712,466 |
613,112 |
||||||
Other liabilities |
51,144 |
40,661 |
||||||
Shareholders' equity |
749,528 |
654,616 |
||||||
Total noninterest-bearing funding sources |
1,513,138 |
1,308,389 |
||||||
Total Liabilities and Shareholders' Equity |
$5,900,358 |
$6,476,147 |
||||||
Net Interest Income and Net Yield on Interest-Earning Assets |
$51,743 |
3.86% |
$56,415 |
3.78% |
||||
(a) Income on interest-earning assets is shown on a taxable equivalent basis using the 35% federal income tax statutory rate. |
||||||||
(b) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets. |
||||||||
(c) Loan income includes loan fees. |
||||||||
(d) Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings deposits which were made for regulatory purposes. |
||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||||
CONSOLIDATED SELECTED FINANCIAL DATA |
||||||||
Year To Date Average Balance Sheets |
||||||||
(dollars in thousands) |
||||||||
December 31, |
December 31, |
|||||||
2010 |
2009 |
|||||||
Average |
Income/ |
Yield or |
Average |
Income/ |
Yield or |
|||
Assets |
||||||||
Interest-earning assets: |
||||||||
Interest-bearing deposits with banks |
$46,467 |
$94 |
0.20% |
$678 |
$7 |
0.96% |
||
Tax-free investment securities |
120,239 |
8,025 |
6.67% |
235,256 |
16,069 |
6.83% |
||
Taxable investment securities |
939,459 |
37,988 |
4.04% |
1,102,597 |
50,799 |
4.61% |
||
Loans, net of unearned income (b)(c) |
4,467,338 |
231,427 |
5.18% |
4,557,227 |
238,709 |
5.24% |
||
Total interest-earning assets |
5,573,503 |
277,534 |
4.98% |
5,895,758 |
305,584 |
5.18% |
||
Noninterest-earning assets: |
||||||||
Cash |
67,835 |
77,983 |
||||||
Allowance for credit losses |
(96,872) |
(67,535) |
||||||
Other assets |
592,612 |
551,806 |
||||||
Total noninterest-earning assets |
563,575 |
562,254 |
||||||
Total Assets |
$6,137,078 |
$6,458,012 |
||||||
Liabilities and Shareholders' Equity |
||||||||
Interest-bearing liabilities: |
||||||||
Interest-bearing demand deposits (d) |
$622,171 |
$751 |
0.12% |
$601,594 |
$1,677 |
0.28% |
||
Savings deposits (d) |
1,800,418 |
12,171 |
0.68% |
1,515,636 |
16,946 |
1.12% |
||
Time deposits |
1,596,088 |
36,923 |
2.31% |
1,735,533 |
51,179 |
2.95% |
||
Short-term borrowings |
488,078 |
1,948 |
0.40% |
1,031,664 |
4,216 |
0.41% |
||
Long-term debt |
236,939 |
9,806 |
4.14% |
285,526 |
12,753 |
4.47% |
||
Total interest-bearing liabilities |
4,743,694 |
61,599 |
1.30% |
5,169,953 |
86,771 |
1.68% |
||
Noninterest-bearing liabilities and shareholders' equity: |
||||||||
Noninterest-bearing demand deposits (d) |
658,947 |
590,554 |
||||||
Other liabilities |
43,413 |
41,487 |
||||||
Shareholders' equity |
691,024 |
656,018 |
||||||
Total noninterest-bearing funding sources |
1,393,384 |
1,288,059 |
||||||
Total Liabilities and Shareholders' Equity |
$6,137,078 |
$6,458,012 |
||||||
Net Interest Income and Net Yield on Interest-Earning Assets |
$215,935 |
3.87% |
$218,813 |
3.71% |
||||
(a) Yields on interest-earning assets have been computed on a taxable equivalent basis using the 35% federal income tax statutory rate. |
||||||||
(b) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets. |
||||||||
(c) Loan income includes loan fees. |
||||||||
(d) Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings deposits which were made for regulatory purposes. |
||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||
CONSOLIDATED SELECTED FINANCIAL DATA |
||||||
Asset Quality Data |
||||||
(dollars in thousands) |
||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||
2010 |
2010 |
2010 |
2010 |
2009 |
||
Nonperforming Loans: |
||||||
Loans on nonaccrual basis |
$116,151 |
$123,221 |
$132,555 |
$166,779 |
$147,937 |
|
Troubled debt restructured loans |
1,336 |
1,013 |
599 |
609 |
619 |
|
Total nonperforming loans |
$117,487 |
$124,234 |
$133,154 |
$167,388 |
$148,556 |
|
Loans past due in excess of 90 days and still accruing |
$13,203 |
$15,838 |
$15,045 |
$13,371 |
$15,154 |
|
Other real estate owned |
$24,700 |
$24,555 |
$21,548 |
$23,191 |
$24,287 |
|
Loans outstanding at end of period |
$4,218,083 |
$4,299,573 |
$4,434,291 |
$4,595,409 |
$4,636,501 |
|
Average loans outstanding |
$4,467,338 |
$4,525,149 |
$4,593,781 |
$4,635,712 |
$4,557,227 |
|
Provision for credit losses (year to date) |
$61,552 |
$53,552 |
$49,030 |
$45,020 |
$100,569 |
|
Allowance for credit losses |
$71,229 |
$85,646 |
$88,046 |
$118,725 |
$81,639 |
|
Net charge-offs (year to date) |
$71,962 |
$49,545 |
$42,623 |
$7,934 |
$71,689 |
|
Nonperforming loans as a percentage of total loans |
2.79% |
2.89% |
3.00% |
3.64% |
3.20% |
|
Net charge-offs as a percentage of average loans |
||||||
outstanding (annualized) |
1.61% |
1.46% |
1.87% |
0.69% |
1.57% |
|
Provision for credit losses as a percentage of net charge-offs |
85.53% |
108.09% |
115.03% |
567.43% |
140.29% |
|
Allowance for credit losses as a percentage of end-of-period |
||||||
loans outstanding |
1.69% |
1.99% |
1.99% |
2.58% |
1.76% |
|
Allowance for credit losses as a percentage of nonperforming |
||||||
loans |
60.63% |
68.94% |
66.12% |
70.93% |
54.96% |
|
Nonperforming Securities: |
||||||
Nonaccrual securities at market value |
$15,823 |
$11,049 |
$6,483 |
$6,553 |
$3,258 |
|
Profitability Ratios |
||||||||||||
(dollars in thousands) |
||||||||||||
For the Three Months Ended |
For the Year Ended |
|||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
December 31, |
December 31, |
||||||
2010 |
2010 |
2010 |
2010 |
2009 |
2010 |
2009 |
||||||
Return on average assets (a) |
0.80% |
0.71% |
0.87% |
-0.83% |
0.17% |
0.37% |
-0.31% |
|||||
Return on average equity (a) |
6.32% |
5.92% |
8.41% |
-8.17% |
1.65% |
3.33% |
-3.06% |
|||||
Net interest margin (b) |
3.86% |
3.90% |
3.88% |
3.87% |
3.78% |
3.87% |
3.71% |
|||||
Efficiency ratio (c) |
65.69% |
61.27% |
62.91% |
62.06% |
57.24% |
62.96% |
62.45% |
|||||
(a) Annualized. |
||||||||||||
(b) Net interest margin has been computed on a taxable equivalent basis using the 35% federal income tax statutory rate. |
||||||||||||
(c) Efficiency ratio is "total noninterest expense" as a percentage of total revenue. |
||||||||||||
Total revenue consists of "net interest income, on a taxable equivalent basis," plus "total noninterest income," excluding "net impairment losses" and "net securities gains." |
||||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||||
CONSOLIDATED SELECTED FINANCIAL DATA |
||||||||
Capital Ratios |
||||||||
December 31, 2010 |
||||||||
(dollars in thousands) |
||||||||
Excess Over |
||||||||
Actual |
Regulatory |
Well |
Well |
|||||
Capital |
Capital |
Capital |
Capital |
|||||
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
||
Total Capital to Risk Weighted Assets |
||||||||
First Commonwealth Financial Corporation |
$720,697 |
14.2% |
$405,272 |
8.0% |
N/A |
N/A |
N/A |
|
First Commonwealth Bank |
$677,847 |
13.5% |
$401,051 |
8.0% |
$501,314 |
10.0% |
$176,533 |
|
Tier I Capital to Risk Weighted Assets |
||||||||
First Commonwealth Financial Corporation |
$657,106 |
13.0% |
$202,636 |
4.0% |
N/A |
N/A |
N/A |
|
First Commonwealth Bank |
$614,914 |
12.3% |
$200,526 |
4.0% |
$300,789 |
6.0% |
$314,125 |
|
Tier I Capital to Average Assets |
||||||||
First Commonwealth Financial Corporation |
$657,106 |
11.8% |
$223,157 |
4.0% |
N/A |
N/A |
N/A |
|
First Commonwealth Bank |
$614,914 |
10.9% |
$226,080 |
4.0% |
$282,600 |
5.0% |
$332,314 |
|
SOURCE First Commonwealth Financial Corporation
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