First Commonwealth Announces Fourth Quarter and Full-Year 2013 Financial Results; Declares Increased Quarterly Dividend
INDIANA, Pa., Jan. 29, 2014 /PRNewswire/ -- First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $9.3 million, or $0.10 diluted earnings per share, for the fourth quarter ended December 31, 2013, as compared to net income of $8.7 million, or $0.09 diluted earnings per share, in the fourth quarter of 2012. Included in the fourth quarter 2013 results were technology conversion related costs of $4.5 million, or $0.03 diluted earnings per share. The increase in net income was primarily the result of lower provision for credit losses, partially offset by lower net interest income, realized net losses on liquidated trust preferred securities and previously mentioned conversion charges.
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Fourth Quarter 2013 Financial Highlights
- Net income of $9.3 million, or $0.10 diluted earnings per share.
- Initiated "Operation: Excellence" and incurred $4.5 million, or $0.03 diluted earnings per share, of technology conversion charges and accelerated depreciation for hardware and software to be replaced.
- Trust preferred securities liquidation loss of $1.3 million, or $0.01 diluted earnings per share.
- Nonperforming loans decreased $48.2 million, or 45%, over the last 12 months.
- Loan growth of $43.8 million, or 4% on an annualized basis.
- Dividends on common stock increased to $0.07 per share, or 17%.
For the year ended December 31, 2013, net income was $41.5 million, or $0.43 diluted earnings per share, compared to net income of $42.0 million, or $0.40 diluted earnings per share for the year 2012. The slight decrease in year-over-year net income can be attributed to $4.6 million in technology conversion charges and accelerated depreciation, or $0.03 diluted earnings per share. Net income was also impacted by reduced provision for credit losses and noninterest expense, offset by lower net interest income and noninterest income. Full year earnings per share were affected by the repurchase of 4,453,956 shares of common stock in 2013.
T. Michael Price, President and Chief Executive Officer, commented, "I am especially pleased with the progress our organization has made on strategic initiatives. Building a strong credit infrastructure and culture that creates competitive advantage, and enthusiastically migrating to a culture of operational efficiency, are two of those initiatives. Our fourth quarter credit quality metrics and kick-off of a major technology conversion are reflective of our strategic progress."
Net Interest Income and Net Interest Margin
Fourth quarter 2013 net interest income, on a fully taxable equivalent basis, decreased $0.9 million, or 2%, to $47.3 million as compared to the fourth quarter of 2012. The decrease was the result of a 22 basis point decline in net interest margin, partially offset by a $79.1 million increase in loans and a $154.3 million increase in investment securities. Net interest margin was 3.35%, 3.43% and 3.57% for the three-month periods ended December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Third quarter 2013 net interest income includes the effect of $1.0 million of income received on other-than-temporary impaired pooled trust preferred securities that added approximately 8 basis points to the net interest margin for that period. For the year ended December 31, 2013, net interest income, on a fully taxable equivalent basis, decreased $4.6 million, or 2%. The decrease was primarily due to a 22 basis point decline in the net interest margin, partially offset by growth in average loans and securities. The net interest margin for the years ended December 31, 2013 and 2012 was 3.39% and 3.61%, respectively.
Loan growth for the quarter ended December 31, 2013 was $43.8 million as compared to September 30, 2013 and $79.1 million over the last 12 months. Other significant changes to the balance sheet over the last 12 months included a $29.1 million increase in demand deposits, the early redemption of $32.5 million of fixed rate trust preferred debt obligations, a $270.4 million increase in short-term borrowings and the repurchase of 4,453,956 shares of common stock for $32.2 million.
Price noted, "I am pleased with our team's success in increasing loans and transactional deposit accounts during the past year. The improvement in asset quality has also reduced the need for loan portfolio derisking which had challenged our net loan growth in the past."
Credit Quality
The provision for credit losses was $1.2 million and $19.2 million for the fourth quarter and year ended December 31, 2013, respectively, as compared to $5.7 million and $20.5 million in the prior-year periods. The full year 2013 provision for credit losses included a $13.1 million charge-off in the second quarter of 2013 for an $18.6 million legacy credit relationship to a local real estate developer which has a net remaining balance of $2.4 million at December 31, 2013.
At December 31, 2013, nonperforming loans were $59.4 million, a decrease of $48.2 million, or 45% from December 31, 2012. Nonperforming loans as a percentage of total loans were 1.39%, 1.68% and 2.56% for the periods ended December 31, 2013, September 30, 2013 and December 31, 2012, respectively.
During the fourth quarter of 2013, net charge-offs were $1.9 million compared to $2.6 million in the fourth quarter of 2012. For the year ended December 31, 2013, net charge-offs were $32.2 million, or 0.76% of average loans, compared to $14.6 million, or 0.35% of average loans for the year 2012. The allowance for credit losses as a percentage of total loans outstanding was 1.27%, 1.30% and 1.60% for December 31, 2013, September 30, 2013 and December 31, 2012, respectively.
OREO acquired through foreclosure was $11.7 million at December 31, 2013 as compared to $9.7 million at September 30, 2013 and $11.3 million at December 31, 2012.
Noninterest Income
Noninterest income, excluding net securities gains, increased $0.6 million, or 4%, in the fourth quarter of 2013 compared to the same period last year. Increased revenue on deposit accounts and swap transactions were partially offset by less revenue from bank-owned life insurance. For the full year, noninterest income, excluding net securities gains and losses, decreased $3.9 million in 2013. The decrease is primarily the result of $2.5 million less gains on the sale of loans and OREO properties in 2013, a $1.9 million early termination fee received in 2012 on a joint venture, partially offset by improved performance in deposit fees, interchange income and swap revenues.
During the fourth quarter of 2013, a loss of $1.3 million was recognized on the early redemption of pooled trust preferred securities with a book value of $6.6 million. Senior note holders elected to liquidate all assets of the trust, resulting in losses for the mezzanine notes that were owned.
Noninterest Expense
Noninterest expense increased $1.5 million, or 3%, in the fourth quarter of 2013 from the fourth quarter of 2012, primarily from a $2.5 million technology conversion charge and $2.0 million of accelerated depreciation, included in furniture and equipment expense related to hardware and software to be replaced in the technology conversion, and a $1.1 million increase in salaries and employee benefits due to an increase in the cost of health insurance, partially offset by $3.1 million of reductions in OREO write-downs to fair market value as compared to 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 third quarter of 2014. First Commonwealth will incur approximately $11.0 - $12.0 million of costs related to accelerated depreciation for data processing hardware and software, early termination charges on existing contracts and staffing and employment-related charges 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 as a result of the conversion.
Despite $4.6 million in technology conversion charges and accelerated depreciation, noninterest expense for the year ended December 31, 2013 decreased $8.4 million, or 5%, as compared to the prior year. Improvements included $1.0 million in data processing, $8.3 million of loan collection/OREO costs, $3.3 million reduction in fraud losses and $1.3 million in other operating expenses, partially offset by the aforementioned technology conversion charges of $2.6 million and the aforementioned $2.0 million of accelerated depreciation included in furniture and equipment expense, and a $1.6 million early redemption fee on $32.5 million of fixed rate trust preferred debt obligations redeemed in 2013.
Full time equivalent staff was 1,362 and 1,395 for the periods ended December 31, 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 68% for the year ended December 31, 2013 as compared to 69% for 2012.
Dividends and Capital
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.07 per share on January 28, 2014, which is payable on February 21, 2014 to shareholders of record as of February 10, 2014. This dividend represents a 3.4% projected annual yield utilizing the January 28, 2014 closing market price of $8.26.
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 without prior notice. First Commonwealth may suspend or discontinue the programs at any time. As of December 31, 2013, First Commonwealth has purchased 10,116,039 shares at an average price of $6.88 per share under these programs.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full year of 2013 on Wednesday, January 29, 2014 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-877-353-0037 or through the company's Investor web page at http://ir.fcbanking.com. A replay of the call will be available approximately two hours following the conclusion of the conference. A link to the call replay will be accessible at this web page for 30 days.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $6.2 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. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect our revenues, increase credit-related costs and reduce the values of our assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Continued stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, our business and financial performance is likely to be negatively impacted by effects of recently enacted and future legislation and regulation. Our results could also be adversely affected by 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; legal and regulatory developments; 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; and management's ability to effectively manage credit risk, market risk, operational risk, compliance and legal risk, interest rate risk, and liquidity risk. 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 Years Ended |
||||||||||||||||||||||||||||
| December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||||||||||||||||||||||
| 2013 |
2013 |
2012 |
2013 |
2012 |
|||||||||||||||||||||||||
| SUMMARY RESULTS OF OPERATIONS |
|||||||||||||||||||||||||||||
| Net interest income (FTE)(1) |
$ |
47,303 |
$ |
48,255 |
$ |
48,223 |
$ |
188,732 |
$ |
193,321 |
|||||||||||||||||||
| Provision for credit losses |
1,216 |
2,714 |
5,706 |
19,227 |
20,544 |
||||||||||||||||||||||||
| Noninterest income |
13,264 |
17,083 |
14,103 |
60,163 |
65,434 |
||||||||||||||||||||||||
| Noninterest expense |
45,327 |
40,045 |
43,842 |
168,824 |
177,207 |
||||||||||||||||||||||||
| Net income |
9,259 |
15,854 |
8,735 |
41,482 |
41,954 |
||||||||||||||||||||||||
| Earnings per common share (diluted) |
$ |
0.10 |
$ |
0.16 |
$ |
0.09 |
$ |
0.43 |
$ |
0.40 |
|||||||||||||||||||
| KEY FINANCIAL RATIOS |
|||||||||||||||||||||||||||||
| Return on average assets |
0.60 |
% |
1.02 |
% |
0.58 |
% |
0.68 |
% |
0.71 |
% |
|||||||||||||||||||
| Return on average shareholders' equity |
5.14 |
% |
8.83 |
% |
4.55 |
% |
5.70 |
% |
5.46 |
% |
|||||||||||||||||||
| Efficiency ratio(2) |
73.15 |
% |
61.50 |
% |
70.38 |
% |
67.52 |
% |
68.54 |
% |
|||||||||||||||||||
| Net interest margin (FTE)(1) |
3.35 |
% |
3.43 |
% |
3.57 |
% |
3.39 |
% |
3.61 |
% |
|||||||||||||||||||
| Book value per common share |
$ |
7.47 |
$ |
7.45 |
$ |
7.49 |
|||||||||||||||||||||||
| Tangible book value per common share(4) |
5.78 |
5.76 |
5.86 |
||||||||||||||||||||||||||
| Market value per common share |
8.82 |
7.59 |
6.82 |
||||||||||||||||||||||||||
| Cash dividends declared per common |
|||||||||||||||||||||||||||||
| share |
0.06 |
0.06 |
0.05 |
$ |
0.23 |
$ |
0.18 |
||||||||||||||||||||||
| ASSET QUALITY RATIOS |
|||||||||||||||||||||||||||||
| Allowance for credit losses as a percent of |
|||||||||||||||||||||||||||||
| end-of-period loans |
1.27 |
% |
1.30 |
% |
1.60 |
% |
|||||||||||||||||||||||
| Allowance for credit losses as a percent of |
|||||||||||||||||||||||||||||
| nonperforming loans |
91.31 |
% |
77.17 |
% |
62.47 |
% |
|||||||||||||||||||||||
| Nonperforming loans as a percent of |
|||||||||||||||||||||||||||||
| end-of-period loans |
1.39 |
% |
1.68 |
% |
2.56 |
% |
|||||||||||||||||||||||
| Nonperforming assets as a percent of total |
|||||||||||||||||||||||||||||
| assets |
1.15 |
% |
1.33 |
% |
1.99 |
% |
|||||||||||||||||||||||
| Net charge-offs as a percent of average |
|||||||||||||||||||||||||||||
| loans (annualized) |
0.18 |
% |
0.49 |
% |
0.25 |
% |
|||||||||||||||||||||||
| CAPITAL RATIOS |
|||||||||||||||||||||||||||||
| Shareholders' equity as a percent of |
|||||||||||||||||||||||||||||
| total assets |
11.45 |
% |
11.56 |
% |
12.44 |
% |
|||||||||||||||||||||||
| Tangible common equity as a percent of |
|||||||||||||||||||||||||||||
| tangible assets(3) |
9.09 |
% |
9.18 |
% |
10.01 |
% |
|||||||||||||||||||||||
| Leverage Ratio |
10.00 |
% |
9.84 |
% |
11.24 |
% |
|||||||||||||||||||||||
| Risk Based Capital - Tier I |
12.10 |
% |
12.04 |
% |
13.28 |
% |
|||||||||||||||||||||||
| Risk Based Capital - Total |
13.26 |
% |
13.22 |
% |
14.53 |
% |
|||||||||||||||||||||||
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
|||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL DATA |
|||||||||||||||||||||||||||
| Unaudited |
|||||||||||||||||||||||||||
| (dollars in thousands, except share data) |
|||||||||||||||||||||||||||
| For the Three Months Ended |
For the Years Ended |
||||||||||||||||||||||||||
| December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||||||||||||||||||||
| 2013 |
2013 |
2012 |
2013 |
2012 |
|||||||||||||||||||||||
| INCOME STATEMENT |
|||||||||||||||||||||||||||
| Interest income |
$ |
51,308 |
$ |
52,308 |
$ |
53,867 |
$ |
206,358 |
$ |
219,075 |
|||||||||||||||||
| Interest expense |
5,002 |
5,079 |
6,676 |
21,707 |
30,146 |
||||||||||||||||||||||
| Net Interest Income |
46,306 |
47,229 |
47,191 |
184,651 |
188,929 |
||||||||||||||||||||||
| Taxable equivalent adjustment(1) |
997 |
1,026 |
1,032 |
4,081 |
4,392 |
||||||||||||||||||||||
| Net Interest Income (FTE) |
47,303 |
48,255 |
48,223 |
188,732 |
193,321 |
||||||||||||||||||||||
| Provision for credit losses |
1,216 |
2,714 |
5,706 |
19,227 |
20,544 |
||||||||||||||||||||||
| Net Interest Income after Provision |
|||||||||||||||||||||||||||
| for Credit Losses (FTE) |
46,087 |
45,541 |
42,517 |
169,505 |
172,777 |
||||||||||||||||||||||
| Changes in fair value on impaired securities |
4,851 |
236 |
644 |
9,792 |
2,193 |
||||||||||||||||||||||
| Non-credit related gains on securities not |
|||||||||||||||||||||||||||
| expected to be sold (recognized in other |
|||||||||||||||||||||||||||
| comprehensive income) |
(4,851) |
(236) |
(644) |
(9,792) |
(2,193) |
||||||||||||||||||||||
| Net Impairment Losses |
— |
— |
— |
— |
— |
||||||||||||||||||||||
| Net securities (losses) gains |
(1,395) |
229 |
29 |
(1,158) |
192 |
||||||||||||||||||||||
| Trust income |
1,489 |
1,406 |
1,426 |
6,166 |
6,206 |
||||||||||||||||||||||
| Service charges on deposit accounts |
4,209 |
4,227 |
3,768 |
15,652 |
14,743 |
||||||||||||||||||||||
| Insurance and retail brokerage commissions |
1,382 |
1,822 |
1,334 |
6,005 |
6,272 |
||||||||||||||||||||||
| Income from bank owned life insurance |
1,320 |
1,359 |
1,481 |
5,539 |
5,850 |
||||||||||||||||||||||
| Gain on sale of assets |
97 |
1,356 |
291 |
2,153 |
4,607 |
||||||||||||||||||||||
| Card related interchange income |
3,532 |
3,536 |
3,540 |
13,746 |
13,199 |
||||||||||||||||||||||
| Other income |
2,630 |
3,148 |
2,234 |
12,060 |
14,365 |
||||||||||||||||||||||
| Total Noninterest Income |
13,264 |
17,083 |
14,103 |
60,163 |
65,434 |
||||||||||||||||||||||
| Salaries and employee benefits |
21,724 |
20,998 |
20,668 |
86,012 |
86,069 |
||||||||||||||||||||||
| Net occupancy expense |
3,477 |
3,274 |
3,313 |
13,607 |
13,255 |
||||||||||||||||||||||
| Furniture and equipment expense(5) |
5,255 |
3,294 |
3,134 |
15,118 |
12,460 |
||||||||||||||||||||||
| Data processing expense |
1,498 |
1,492 |
1,708 |
6,009 |
7,054 |
||||||||||||||||||||||
| Pennsylvania shares tax expense |
1,415 |
1,516 |
1,503 |
5,638 |
5,706 |
||||||||||||||||||||||
| Intangible amortization |
216 |
193 |
358 |
1,064 |
1,467 |
||||||||||||||||||||||
| Collection and repossession expense |
974 |
860 |
1,106 |
3,836 |
5,756 |
||||||||||||||||||||||
| Other professional fees and services |
966 |
848 |
1,162 |
3,731 |
4,329 |
||||||||||||||||||||||
| FDIC insurance |
1,054 |
1,178 |
1,275 |
4,366 |
5,032 |
||||||||||||||||||||||
| Loss on sale or write-down of assets |
45 |
479 |
3,179 |
1,054 |
7,394 |
||||||||||||||||||||||
| Operational losses |
325 |
238 |
334 |
1,115 |
4,367 |
||||||||||||||||||||||
| Loss on redemption of subordinated debt |
— |
— |
— |
1,629 |
— |
||||||||||||||||||||||
| Conversion related expenses |
2,523 |
65 |
— |
2,588 |
— |
||||||||||||||||||||||
| Other operating expenses |
5,855 |
5,610 |
6,102 |
23,057 |
24,318 |
||||||||||||||||||||||
| Total Noninterest Expense |
45,327 |
40,045 |
43,842 |
168,824 |
177,207 |
||||||||||||||||||||||
| Income before Income Taxes |
14,024 |
22,579 |
12,778 |
60,844 |
61,004 |
||||||||||||||||||||||
| Taxable equivalent adjustment(1) |
997 |
1,026 |
1,032 |
4,081 |
4,392 |
||||||||||||||||||||||
| Income tax provision |
3,768 |
5,699 |
3,011 |
15,281 |
14,658 |
||||||||||||||||||||||
| Net Income |
$ |
9,259 |
$ |
15,854 |
$ |
8,735 |
$ |
41,482 |
$ |
41,954 |
|||||||||||||||||
| Shares Outstanding at End of Period |
95,245,215 |
95,544,765 |
99,629,494 |
95,245,215 |
99,629,494 |
||||||||||||||||||||||
| Average Shares Outstanding Assuming |
|||||||||||||||||||||||||||
| Dilution |
95,138,836 |
96,208,545 |
101,787,103 |
97,029,832 |
103,885,663 |
||||||||||||||||||||||
| (5) - Includes $2.0 million of accelerated depreciation expense related to the technology conversion. |
|||||||||||||||||||||||||||
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||||||||
| CONSOLIDATED FINANCIAL DATA |
||||||||||||
| Unaudited |
||||||||||||
| (dollars in thousands) |
||||||||||||
| December 31, |
September 30, |
December 31, |
||||||||||
| 2013 |
2013 |
2012 |
||||||||||
| BALANCE SHEET (Period End) |
||||||||||||
| Assets |
||||||||||||
| Cash and due from banks |
$ |
74,427 |
$ |
88,179 |
$ |
98,724 |
||||||
| Interest-bearing bank deposits |
3,012 |
5,077 |
4,258 |
|||||||||
| Securities |
1,353,809 |
1,324,767 |
1,199,531 |
|||||||||
| Loans |
4,283,833 |
4,240,004 |
4,204,704 |
|||||||||
| Allowance for credit losses |
(54,225) |
(54,957) |
(67,187) |
|||||||||
| Net loans |
4,229,608 |
4,185,047 |
4,137,517 |
|||||||||
| Goodwill and other intangibles |
161,267 |
161,483 |
162,331 |
|||||||||
| Other assets |
392,738 |
386,409 |
393,029 |
|||||||||
| Total Assets |
$ |
6,214,861 |
$ |
6,150,962 |
$ |
5,995,390 |
||||||
| Liabilities and Shareholders' Equity |
||||||||||||
| Noninterest-bearing demand deposits |
$ |
912,361 |
$ |
908,436 |
$ |
883,269 |
||||||
| Interest-bearing demand deposits |
89,149 |
96,587 |
97,963 |
|||||||||
| Savings deposits |
2,506,631 |
2,491,315 |
2,543,990 |
|||||||||
| Time deposits |
1,095,722 |
1,121,463 |
1,032,659 |
|||||||||
| Total interest-bearing deposits |
3,691,502 |
3,709,365 |
3,674,612 |
|||||||||
| Total deposits |
4,603,863 |
4,617,801 |
4,557,881 |
|||||||||
| Short-term borrowings |
626,615 |
551,628 |
356,227 |
|||||||||
| Long-term borrowings |
216,552 |
216,668 |
280,221 |
|||||||||
| Total borrowings |
843,167 |
768,296 |
636,448 |
|||||||||
| Other liabilities |
56,134 |
53,509 |
55,054 |
|||||||||
| Shareholders' equity |
711,697 |
711,356 |
746,007 |
|||||||||
| Total Liabilities and Shareholders' Equity |
$ |
6,214,861 |
$ |
6,150,962 |
$ |
5,995,390 |
||||||
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
|||||||||||||||
| CONSOLIDATED FINANCIAL DATA |
|||||||||||||||
| Unaudited |
|||||||||||||||
| (dollars in thousands) |
|||||||||||||||
| For the Three Months Ended |
|||||||||||||||
| December 31, |
Yield/ |
September 30, |
Yield/ |
December 31, |
Yield/ |
||||||||||
| 2013 |
Rate |
2013 |
Rate |
2012 |
Rate |
||||||||||
| NET INTEREST MARGIN (Quarterly Averages) |
|||||||||||||||
| Assets |
|||||||||||||||
| Loans (FTE)(1) |
$ |
4,277,981 |
4.17 |
% |
$ |
4,258,372 |
4.19 |
% |
$ |
4,214,000 |
4.48 |
% |
|||
| Securities and interest bearing bank deposits (FTE)(1) |
1,318,332 |
2.21 |
% |
1,327,656 |
2.50 |
% |
1,165,991 |
2.52 |
% |
||||||
| Total Interest-Earning Assets (FTE)(1) |
5,596,313 |
3.71 |
% |
5,586,028 |
3.79 |
% |
5,379,991 |
4.06 |
% |
||||||
| Noninterest-earning assets |
565,809 |
576,741 |
582,755 |
||||||||||||
| Total Assets |
$ |
6,162,122 |
$ |
6,162,769 |
$ |
5,962,746 |
|||||||||
| Liabilities and Shareholders' Equity |
|||||||||||||||
| Interest-bearing demand and savings deposits |
$ |
2,605,992 |
0.10 |
% |
$ |
2,608,249 |
0.11 |
% |
$ |
2,609,722 |
0.16 |
% |
|||
| Time deposits |
1,117,567 |
1.05 |
% |
1,144,766 |
1.06 |
% |
1,082,785 |
1.28 |
% |
||||||
| Short-term borrowings |
561,976 |
0.28 |
% |
547,393 |
0.26 |
% |
365,697 |
0.28 |
% |
||||||
| Long-term borrowings |
216,618 |
1.76 |
% |
216,733 |
1.77 |
% |
237,975 |
3.20 |
% |
||||||
| Total Interest-Bearing Liabilities |
4,502,153 |
0.44 |
% |
4,517,141 |
0.45 |
% |
4,296,179 |
0.62 |
% |
||||||
| Noninterest-bearing deposits |
895,652 |
885,346 |
853,520 |
||||||||||||
| Other liabilities |
49,270 |
47,932 |
48,565 |
||||||||||||
| Shareholders' equity |
715,047 |
712,350 |
764,482 |
||||||||||||
| Total Noninterest-Bearing Funding Sources |
1,659,969 |
1,645,628 |
1,666,567 |
||||||||||||
| Total Liabilities and Shareholders' Equity |
$ |
6,162,122 |
$ |
6,162,769 |
$ |
5,962,746 |
|||||||||
| Net Interest Margin (FTE) (annualized)(1) |
3.35 |
% |
3.43 |
% |
3.57 |
% |
|||||||||
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||||||
| CONSOLIDATED FINANCIAL DATA |
||||||||||
| Unaudited |
||||||||||
| (dollars in thousands) |
||||||||||
| For the Years Ended |
||||||||||
| December 31, |
Yield/ |
December 31, |
Yield/ |
|||||||
| 2013 |
Rate |
2012 |
Rate |
|||||||
| NET INTEREST MARGIN (Year-to-Date Averages) |
||||||||||
| Assets |
||||||||||
| Loans (FTE)(1) |
$ |
4,255,593 |
4.23 |
% |
$ |
4,165,292 |
4.60 |
% |
||
| Securities and interest bearing bank deposits (FTE)(1) |
1,303,976 |
2.32 |
% |
1,183,769 |
2.69 |
% |
||||
| Total Interest-Earning Assets (FTE)(1) |
5,559,569 |
3.79 |
% |
5,349,061 |
4.18 |
% |
||||
| Noninterest-earning assets |
572,413 |
591,086 |
||||||||
| Total Assets |
$ |
6,131,982 |
$ |
5,940,147 |
||||||
| Liabilities and Shareholders' Equity |
||||||||||
| Interest-bearing demand and savings deposits |
$ |
2,612,847 |
0.12 |
% |
$ |
2,567,387 |
0.18 |
% |
||
| Time deposits |
1,154,984 |
1.07 |
% |
1,138,112 |
1.49 |
% |
||||
| Short-term borrowings |
478,388 |
0.26 |
% |
402,196 |
0.27 |
% |
||||
| Long-term borrowings |
233,483 |
2.08 |
% |
202,598 |
3.76 |
% |
||||
| Total Interest-Bearing Liabilities |
4,479,702 |
0.48 |
% |
4,310,293 |
0.70 |
% |
||||
| Noninterest-bearing deposits |
876,111 |
810,041 |
||||||||
| Other liabilities |
48,335 |
50,859 |
||||||||
| Shareholders' equity |
727,834 |
768,954 |
||||||||
| Total Noninterest-Bearing Funding Sources |
1,652,280 |
1,629,854 |
||||||||
| Total Liabilities and Shareholders' Equity |
$ |
6,131,982 |
$ |
5,940,147 |
||||||
| Net Interest Margin (FTE) (annualized)(1) |
3.39 |
% |
3.61 |
% |
||||||
| FIRST COMMONWEALTH FINANCIAL CORPORATION |
|||||||||||||||
| CONSOLIDATED FINANCIAL DATA |
|||||||||||||||
| Unaudited |
|||||||||||||||
| (dollars in thousands) |
|||||||||||||||
| December 31, |
September 30, |
December 31, |
|||||||||||||
| 2013 |
2013 |
2012 |
|||||||||||||
| ASSET QUALITY DETAIL |
|||||||||||||||
| Nonperforming Loans: |
|||||||||||||||
| Loans on nonaccrual basis |
$ |
28,908 |
$ |
42,122 |
$ |
43,539 |
|||||||||
| Troubled debt restructured loans on |
|||||||||||||||
| nonaccrual basis |
16,980 |
17,807 |
50,979 |
||||||||||||
| Troubled debt restructured loans on |
|||||||||||||||
| accrual basis |
13,495 |
11,290 |
13,037 |
||||||||||||
| Total Nonperforming Loans |
$ |
59,383 |
$ |
71,219 |
$ |
107,555 |
|||||||||
| Other real estate owned ("OREO") |
11,728 |
9,656 |
11,262 |
||||||||||||
| Repossessions ("Repo") |
322 |
695 |
575 |
||||||||||||
| Total Nonperforming Assets |
$ |
71,433 |
$ |
81,570 |
$ |
119,392 |
|||||||||
| Loans past due in excess of 90 days and |
|||||||||||||||
| still accruing |
$ |
2,505 |
$ |
2,364 |
$ |
2,447 |
|||||||||
| Criticized loans |
162,361 |
180,593 |
288,502 |
||||||||||||
| Nonperforming assets as a percentage |
|||||||||||||||
| of total loans, plus OREO and Repos |
1.66 |
% |
1.92 |
% |
2.83 |
% |
|||||||||
| Allowance for credit losses |
$ |
54,225 |
$ |
54,957 |
$ |
67,187 |
|||||||||
| For the Three Months Ended |
For the Years Ended |
||||||||||||||
| December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||||||||
| 2013 |
2013 |
2012 |
2013 |
2012 |
|||||||||||
| Net Charge-offs: |
|||||||||||||||
| Commercial, financial, agricultural |
|||||||||||||||
| and other |
$ |
987 |
$ |
3,000 |
$ |
174 |
$ |
17,944 |
$ |
4,764 |
|||||
| Real estate construction |
(361) |
(63) |
784 |
272 |
3,019 |
||||||||||
| Commercial real estate |
447 |
800 |
59 |
10,377 |
441 |
||||||||||
| Residential real estate |
33 |
686 |
753 |
550 |
3,406 |
||||||||||
| Loans to individuals |
842 |
786 |
863 |
3,046 |
2,961 |
||||||||||
| Net Charge-offs |
$ |
1,948 |
$ |
5,209 |
$ |
2,633 |
$ |
32,189 |
$ |
14,591 |
|||||
| Net charge-offs as a percentage of average |
|||||||||||||||
| loans outstanding (annualized) |
0.18 |
% |
0.49 |
% |
0.25 |
% |
0.76 |
% |
0.35 |
% |
|||||
| Provision for credit losses as a percentage |
|||||||||||||||
| of net charge-offs |
62.42 |
% |
52.10 |
% |
216.71 |
% |
59.73 |
% |
140.80 |
% |
|||||
| Provision for credit losses |
$ |
1,216 |
$ |
2,714 |
$ |
5,706 |
$ |
19,227 |
$ |
20,544 |
|||||
| 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." |
|||||||||||
| December 31, |
September 30, |
December 31, |
|||||||||
| 2013 |
2013 |
2012 |
|||||||||
| Tangible Equity: |
|||||||||||
| Total shareholders' equity |
$ |
711,697 |
$ |
711,356 |
$ |
746,007 |
|||||
| Less: intangible assets |
161,267 |
161,483 |
162,331 |
||||||||
| Tangible Equity |
550,430 |
549,873 |
583,676 |
||||||||
| Less: preferred stock |
— |
— |
— |
||||||||
| Tangible Common Equity |
$ |
550,430 |
$ |
549,873 |
$ |
583,676 |
|||||
| Tangible Assets: |
|||||||||||
| Total assets |
$ |
6,214,861 |
$ |
6,150,962 |
$ |
5,995,390 |
|||||
| Less: intangible assets |
161,267 |
161,483 |
162,331 |
||||||||
| Tangible Assets |
$ |
6,053,594 |
$ |
5,989,479 |
$ |
5,833,059 |
|||||
| (3)Tangible Common Equity as a percentage of Tangible Assets |
9.09 |
% |
9.18 |
% |
10.01 |
% |
|||||
| Shares Outstanding at End of Period |
95,245,215 |
95,544,765 |
99,629,494 |
||||||||
| (4)Tangible Book Value Per Common Share |
$ |
5.78 |
$ |
5.76 |
$ |
5.86 |
|||||
| 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
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