First Commonwealth Announces Second Quarter 2011 Financial Results
INDIANA, Pa., July 27, 2011 /PRNewswire/ -- First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $7.4 million, or $0.07 diluted earnings per share, for the second quarter ended June 30, 2011, as compared to net income of $13.5 million, or $0.15 diluted earnings per share, in the second quarter of 2010. The decrease in net income was primarily the result of lower net interest income, a higher provision for credit losses and increased noninterest expense, which were partially offset by higher noninterest income. For the six months ended June 30, 2011, net income was $12.7 million, or $0.12 diluted earnings per share, compared to net income of $0.4 million for the comparable period in 2010. The increase in net income was primarily the result of a lower provision for credit losses and higher noninterest income.
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John J. Dolan, President and Chief Executive Officer, stated, "We are pleased to report favorable earnings results for the second quarter. The credit challenges that we continue to successfully work through at this point in the credit cycle, combined with generally low economic demand, have muted earnings momentum. We are utilizing this time to focus on balance sheet positioning, enhancing and expanding customer relationships, refining operational efficiencies and resolving the remaining large, complex troubled debts."
Net Interest Income and Net Interest Margin
Second quarter 2011 net interest income, on a fully taxable equivalent basis, decreased $6.9 million, or 13%, compared to the second quarter of 2010 to $48.3 million. The decrease was a result of a $554.0 million decline in average interest-earning assets between the periods as a result of a strategy to reduce the risk profile of the balance sheet combined with a 12 basis point drop in the net interest margin. Net interest margin was 3.76%, 3.87% and 3.88% for the three-month periods ended June 30, 2011, March 31, 2011 and June 30, 2010, respectively. For the six months ended June 30, 2011 net interest income, on a fully taxable equivalent basis, decreased $13.4 million, or 12%. The decrease was primarily due to a $610.5 million decline in average interest-earning assets and a decrease of seven basis points in the net interest margin. The net interest margin for the six months ended June 30, 2011 and 2010, respectively, was 3.81% and 3.88%.
Significant changes to First Commonwealth's balance sheet from June 30, 2010 to June 30, 2011 include:
- A decrease of $441.4 million, or 10%, in loans primarily as the 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.
- A $275.6 million, or 45%, reduction in borrowings.
- Continued improvement in the mix of deposits, as a $77.6 million, or 2%, growth in lower costing transaction and savings deposits partially offset a $280.1 million decrease in time deposits.
- During the third quarter of 2010, First Commonwealth completed a 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 meet evolving regulatory capital guidelines. First Commonwealth's capital ratios for Leverage, Total and Tier I at June 30, 2011 were 11.95%, 15.12% and 13.87%, respectively.
Dolan noted, "A lot of effort has been directed toward improving our balance sheet over the past 18 months. We believe an improved funding, capital, investment and loan mix profile will position us favorably for consistent growth that is commensurate with a business model built upon responsible community banking. Our pricing and underwriting guidelines will remain disciplined even as we grow and deepen our customer relationships."
Credit Quality
The provision for credit losses was $9.1 million and $22.9 million for the second quarter and six months ended June 30, 2011, respectively, as compared to $4.0 million and $49.0 million in the prior year period. The significant components of the second quarter 2011 provision for credit losses included $7.2 million on two troubled commercial credits with loan balances totaling $22.3 million due to updated collateral values.
For the quarter ended June 30, 2011, nonperforming loans were $147.7 million, an increase of $7.2 million from March 31, 2011. The significant relationships that were placed into nonperforming status in the second quarter of 2011 included five commercial credits totaling $28.0 million. That increase was partially offset by charge-offs or transfers to Other Real Estate Owned (OREO). Nonperforming loans as a percentage of total loans were 3.70%, 3.45% and 3.00% for the periods ended June 30, 2011, March 31, 2011 and June 30, 2010, respectively.
During the second quarter of 2011, net charge-offs were $10.7 million compared to $34.7 million in the second quarter of 2010. The most significant loan charge-offs for the second quarter of 2011 included $8.4 million on six commercial credits of which $7.6 million were loans previously on a nonperforming status.
For the six months ended June 30, 2011, net charge-offs were $19.0 million, or 0.93% of average loans on an annualized basis, compared to $42.6 million, or 1.87% of average loans on an annualized basis, for the same period in 2010.
The allowance for credit losses as a percentage of total loans outstanding was 1.88%, 1.88% and 1.99% for June 30, 2011, March 31, 2011 and June 30, 2010, respectively.
OREO acquired through foreclosure was $36.5 million at June 30, 2011. During the second quarter of 2011, $12.6 million of commercial loans were transferred to OREO from nonperforming status as a result of the progression in resolving troubled credits. Partially offsetting this increase was a $4.1 million write-down to current fair value on one OREO property.
Noninterest Income
Recognized net security gains, including other-than-temporary impairment charges, were $1.6 million for the three-month periods ended June 30, 2011 as compared to $1.5 million of net security losses for the same period in 2010. Gains for the second quarter 2011 were primarily the result of $1.5 million of realized gains from the sale of an equity security. The 2010 losses resulted primarily from other-than-temporary impairment charges on investments in pooled trust preferred collateralized debt obligations. First Commonwealth did not incur any other-than-temporary impairment charges in the first or second quarter of 2011. For the six months ended June 30, 2011, net security gains were $2.2 million compared to net security losses of $3.9 million for the six months ended June 30, 2010.
Noninterest income, excluding net security gains (losses), increased $1.3 million, or 9%, in the second quarter of 2011 compared to the same period last year primarily from a $1.0 million gain on the exiting of a private equity investment and $0.4 million of revenue from an OREO property. Also affecting year-to-year comparisons were decreases of $0.9 million in service charges on deposit accounts primarily a result of new regulations and shifts in consumer behavior.
For the six months ended June 30, 2011, noninterest income, excluding net security gains, increased $1.2 million, or 4%, when compared to the same period of 2010.
Noninterest Expense
Noninterest expense increased $2.0 million, or 5%, in the second quarter of 2011 from the second quarter of 2010. The increase is primarily related to a $4.1 million write-down to current fair value for an OREO property in the second quarter of 2011 compared to a $2.2 million write-down for an OREO property in the same period last year.
For the six months ended June 30, 2011, as compared to the same period last year, noninterest expense was essentially flat.
Full time equivalent staff was 1,512 and 1,605 for the periods ended June 30, 2011 and 2010, 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 72% for the quarter ended June 30, 2011 as compared to 63% during the same period in 2010. The increase in the efficiency ratio was primarily the result of the decrease in net interest income in addition to the aforementioned $4.1 million write-down for an OREO property.
"Our bank-wide efficiency initiative, which launched at the beginning of this year, continues to make significant progress," commented Dolan. "Employees across our organization remain committed to continuous improvement efforts that have led to numerous process and technology enhancements through the first six months of the year. We believe these process improvements are essential to delivering service consistent with customers' expectations, particularly in this new operating environment of increased regulatory compliance. Continuous process improvement will be a key to sustaining a competitive advantage."
Dividend
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.03 per share on July 19, 2011 which is payable on August 15, 2011 to shareholders of record as of July 29, 2011. This dividend represents a 2% projected annual yield utilizing the June 30, 2011 closing market price of $5.74.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the second quarter of 2011 on Thursday, July 28, 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 via our "Investor Relations" link. A replay of the call will be available approximately one hour following the conclusion of the conference. A link to the call replay will be accessible at this web page for 30 days.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $5.7 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 112 retail branch offices in 15 counties in western and central Pennsylvania through First Commonwealth Bank, a Pennsylvania chartered bank and trust company. Financial services and insurance products are also provided through First Commonwealth Insurance Agency and First Commonwealth Financial Advisors, Inc.
Forward-Looking Statements
This release contains forward-looking statements about First Commonwealth's future plans, strategies and financial performance. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Such statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and may cause actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. These risks and uncertainties include, among other things, the following: continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Law and other legal and regulatory changes; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; management's ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk; and other risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date on which they are made. First Commonwealth undertakes no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||||||
CONSOLIDATED FINANCIAL DATA |
||||||||||
Unaudited |
||||||||||
(dollars in thousands, except per share data) |
||||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||
2011 |
2011 |
2010 |
2011 |
2010 |
||||||
SUMMARY RESULTS OF OPERATIONS |
||||||||||
Net interest income (FTE)(1) |
$48,294 |
$49,399 |
$55,235 |
$97,693 |
$111,131 |
|||||
Provision for credit losses |
9,112 |
13,817 |
4,010 |
22,929 |
49,030 |
|||||
Noninterest income |
17,064 |
14,328 |
12,649 |
31,392 |
24,100 |
|||||
Noninterest expense |
45,700 |
41,429 |
43,678 |
87,129 |
86,917 |
|||||
Net income |
7,419 |
5,246 |
13,542 |
12,665 |
374 |
|||||
Earnings per common share (diluted) |
$0.07 |
$0.05 |
$0.15 |
$0.12 |
$0.00 |
|||||
KEY FINANCIAL RATIOS |
||||||||||
Return on average assets |
0.52% |
0.37% |
0.87% |
0.44% |
0.01% |
|||||
Return on average shareholders' equity |
3.92% |
2.82% |
8.41% |
3.37% |
0.12% |
|||||
Efficiency ratio(2) |
71.69% |
65.60% |
62.91% |
68.66% |
62.48% |
|||||
Net interest margin (FTE)(1) |
3.76% |
3.87% |
3.88% |
3.81% |
3.88% |
|||||
Book value per common share |
$7.26 |
$7.17 |
$7.59 |
|||||||
Tangible book value per common share(4) |
5.70 |
5.60 |
5.66 |
|||||||
Market value per common share |
5.74 |
6.85 |
5.25 |
|||||||
Cash dividends declared per common share |
0.03 |
0.03 |
0.01 |
$0.06 |
$0.04 |
|||||
ASSET QUALITY RATIOS |
||||||||||
Allowance for credit losses as a percent of end-of-period loans |
1.88% |
1.88% |
1.99% |
|||||||
Allowance for credit losses as a percent of nonperforming loans |
50.89% |
54.67% |
66.12% |
|||||||
Nonperforming loans as a percent of end-of-period loans |
3.70% |
3.45% |
3.00% |
|||||||
Nonperforming assets as a percent of total assets |
3.24% |
3.24% |
2.66% |
|||||||
Net charge-offs as a percent of average loans (annualized) |
1.06% |
0.80% |
3.06% |
|||||||
CAPITAL RATIOS |
||||||||||
Shareholders' equity as a percent of total assets |
13.39% |
13.05% |
10.80% |
|||||||
Tangible common equity as a percent of tangible assets(3) |
10.81% |
10.49% |
8.28% |
|||||||
Leverage Ratio |
11.95% |
11.78% |
11.63% |
|||||||
Risk Based Capital - Tier I |
13.87% |
13.38% |
10.37% |
|||||||
Risk Based Capital - Total |
15.12% |
14.64% |
9.02% |
|||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
||||||||||
CONSOLIDATED FINANCIAL DATA |
||||||||||
Unaudited |
||||||||||
(dollars in thousands, except share data) |
||||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||
2011 |
2011 |
2010 |
2011 |
2010 |
||||||
INCOME STATEMENT |
||||||||||
Interest income |
$57,989 |
$59,469 |
$68,937 |
$117,458 |
$139,015 |
|||||
Interest expense |
11,104 |
11,600 |
16,341 |
22,704 |
33,321 |
|||||
Net Interest Income |
46,885 |
47,869 |
52,596 |
94,754 |
105,694 |
|||||
Taxable equivalent adjustment(1) |
1,409 |
1,530 |
2,639 |
2,939 |
5,437 |
|||||
Net Interest Income (FTE) |
48,294 |
49,399 |
55,235 |
97,693 |
111,131 |
|||||
Provision for credit losses |
9,112 |
13,817 |
4,010 |
22,929 |
49,030 |
|||||
Net Interest Income after Provision for Credit Losses (FTE) |
39,182 |
35,582 |
51,225 |
74,764 |
62,101 |
|||||
Changes in fair value on impaired securities |
448 |
1,869 |
190 |
2,317 |
(1,327) |
|||||
Non-credit related gains on securities not expected to |
||||||||||
be sold (recognized in other comprehensive income) |
(448) |
(1,869) |
(2,300) |
(2,317) |
(3,533) |
|||||
Net Impairment Losses |
0 |
0 |
(2,110) |
0 |
(4,860) |
|||||
Net securities gains |
1,608 |
577 |
562 |
2,185 |
982 |
|||||
Trust income |
1,764 |
1,718 |
1,398 |
3,482 |
2,892 |
|||||
Service charges on deposit accounts |
3,748 |
3,426 |
4,603 |
7,174 |
8,755 |
|||||
Insurance and retail brokerage commissions |
1,616 |
1,562 |
1,866 |
3,178 |
3,728 |
|||||
Income from bank owned life insurance |
1,390 |
1,357 |
1,301 |
2,747 |
2,558 |
|||||
Letter of credit fees |
892 |
634 |
748 |
1,526 |
1,367 |
|||||
Gain on sale of assets |
1,251 |
231 |
116 |
1,482 |
413 |
|||||
Card related interchange income |
3,042 |
2,800 |
2,686 |
5,842 |
5,006 |
|||||
Other income |
1,753 |
2,023 |
1,479 |
3,776 |
3,259 |
|||||
Total Noninterest Income |
17,064 |
14,328 |
12,649 |
31,392 |
24,100 |
|||||
Salaries and employee benefits |
21,546 |
21,128 |
21,047 |
42,674 |
43,374 |
|||||
Net occupancy expense |
3,495 |
3,732 |
3,539 |
7,227 |
7,432 |
|||||
Furniture and equipment expense |
3,135 |
3,180 |
3,101 |
6,315 |
6,266 |
|||||
Data processing expense |
1,525 |
1,424 |
1,478 |
2,949 |
2,915 |
|||||
Pennsylvania shares tax expense |
1,434 |
1,178 |
1,457 |
2,612 |
2,514 |
|||||
Intangible amortization |
389 |
390 |
576 |
779 |
1,233 |
|||||
Collection and repossession expense |
1,726 |
1,316 |
794 |
3,042 |
1,717 |
|||||
Other professional fees and services |
1,099 |
1,125 |
1,062 |
2,224 |
2,228 |
|||||
FDIC insurance |
1,248 |
1,835 |
2,012 |
3,083 |
3,975 |
|||||
Loss on sale or writedown of assets |
4,214 |
301 |
2,314 |
4,515 |
2,397 |
|||||
Other operating expenses |
5,889 |
5,820 |
6,298 |
11,709 |
12,866 |
|||||
Total Noninterest Expense |
45,700 |
41,429 |
43,678 |
87,129 |
86,917 |
|||||
Income (loss) before Income Taxes |
10,546 |
8,481 |
20,196 |
19,027 |
(716) |
|||||
Taxable equivalent adjustment(1) |
1,409 |
1,530 |
2,639 |
2,939 |
5,437 |
|||||
Income tax provision (benefit) |
1,718 |
1,705 |
4,015 |
3,423 |
(6,527) |
|||||
Net Income |
$7,419 |
$5,246 |
$13,542 |
$12,665 |
$374 |
|||||
Shares Outstanding at End of Period |
104,906,994 |
104,859,954 |
86,242,139 |
104,906,994 |
86,242,139 |
|||||
Average Shares Outstanding Assuming Dilution |
104,686,072 |
104,623,518 |
85,788,566 |
104,653,604 |
85,412,371 |
|||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
|||||||
CONSOLIDATED FINANCIAL DATA |
|||||||
Unaudited |
|||||||
(dollars in thousands) |
|||||||
June 30, |
March 31, |
June 30, |
|||||
2011 |
2011 |
2010 |
|||||
BALANCE SHEET (Period End) |
|||||||
Assets |
|||||||
Cash and due from banks |
$130,507 |
$133,319 |
$88,358 |
||||
Securities |
1,053,427 |
1,054,869 |
1,047,651 |
||||
Loans held for sale |
823 |
0 |
0 |
||||
Loans |
3,992,058 |
4,074,270 |
4,434,291 |
||||
Allowance for credit losses |
(75,166) |
(76,792) |
(88,046) |
||||
Net loans |
3,916,892 |
3,997,478 |
4,346,245 |
||||
Goodwill and other intangibles |
164,553 |
164,943 |
166,131 |
||||
Other assets |
425,100 |
411,757 |
409,684 |
||||
Total Assets |
$5,691,302 |
$5,762,366 |
$6,058,069 |
||||
Liabilities and Shareholders' Equity |
|||||||
Noninterest-bearing demand deposits |
$730,049 |
$733,731 |
$651,250 |
||||
Interest-bearing deposits |
91,362 |
90,554 |
107,261 |
||||
Savings deposits |
2,375,349 |
2,354,288 |
2,360,648 |
||||
Time deposits |
1,339,388 |
1,451,395 |
1,619,479 |
||||
Total interest-bearing deposits |
3,806,099 |
3,896,237 |
4,087,388 |
||||
Total borrowings |
341,037 |
335,085 |
616,682 |
||||
Other liabilities |
52,041 |
45,181 |
48,499 |
||||
Shareholders' equity |
762,076 |
752,132 |
654,250 |
||||
Total Liabilities and Shareholders' Equity |
$5,691,302 |
$5,762,366 |
$6,058,069 |
||||
For the Three Months Ended |
For the Six Months Ended |
||||||||||||
June 30, |
Yield/ |
March 31, |
Yield/ |
June 30, |
Yield/ |
June 30, |
Yield/ |
June 30, |
Yield/ |
||||
2011 |
Rate |
2011 |
Rate |
2010 |
Rate |
2011 |
Rate |
2010 |
Rate |
||||
NET INTEREST MARGIN (Quarterly and Year-to-Date Averages) |
|||||||||||||
Assets |
|||||||||||||
Loans (FTE)(1) |
$4,059,259 |
5.02% |
$4,171,083 |
5.09% |
$4,552,312 |
5.20% |
$4,114,862 |
5.05% |
$4,593,781 |
5.18% |
|||
Securities (FTE)(1) |
1,091,590 |
3.17% |
1,011,873 |
3.48% |
1,152,502 |
4.37% |
1,051,952 |
3.32% |
1,183,504 |
4.50% |
|||
Total Interest-Earning Assets (FTE)(1) |
5,150,849 |
4.63% |
5,182,956 |
4.77% |
5,704,814 |
5.03% |
5,166,814 |
4.70% |
5,777,285 |
5.04% |
|||
Noninterest-earning assets |
581,998 |
589,088 |
549,344 |
585,523 |
563,545 |
||||||||
Total Assets |
$5,732,847 |
$5,772,044 |
$6,254,158 |
$5,752,337 |
$6,340,830 |
||||||||
Liabilities and Shareholders' Equity |
|||||||||||||
Interest-bearing demand and savings deposits |
$2,484,141 |
0.34% |
$2,451,962 |
0.35% |
$2,421,812 |
0.58% |
$2,468,140 |
0.34% |
$2,373,983 |
0.62% |
|||
Time deposits |
1,391,168 |
2.02% |
1,471,492 |
2.05% |
1,639,045 |
2.33% |
1,431,108 |
2.03% |
1,639,283 |
2.38% |
|||
Short-term borrowings |
157,922 |
0.45% |
172,440 |
0.43% |
661,068 |
0.37% |
165,141 |
0.44% |
761,066 |
0.39% |
|||
Long-term borrowings |
179,675 |
4.09% |
185,142 |
4.12% |
206,634 |
5.16% |
182,393 |
4.10% |
249,778 |
4.20% |
|||
Total Interest-Bearing Liabilities |
4,212,906 |
1.06% |
4,281,036 |
1.10% |
4,928,559 |
1.33% |
4,246,782 |
1.08% |
5,024,110 |
1.34% |
|||
Noninterest-bearing deposits |
714,234 |
687,041 |
640,105 |
700,713 |
629,202 |
||||||||
Other liabilities |
46,036 |
48,587 |
39,797 |
47,304 |
37,799 |
||||||||
Shareholders' equity |
759,671 |
755,380 |
645,697 |
757,538 |
649,719 |
||||||||
Total Noninterest-Bearing Funding Sources |
1,519,941 |
1,491,008 |
1,325,599 |
1,505,555 |
1,316,720 |
||||||||
Total Liabilities and Shareholders' Equity |
$5,732,847 |
$5,772,044 |
$6,254,158 |
$5,752,337 |
$6,340,830 |
||||||||
Net Interest Margin (FTE) (annualized) (1) |
3.76% |
3.87% |
3.88% |
3.81% |
3.88% |
||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
|||||||
CONSOLIDATED FINANCIAL DATA |
|||||||
Unaudited |
|||||||
(dollars in thousands, except per share data) |
|||||||
June 30, |
March 31, |
June 30, |
|||||
2011 |
2011 |
2010 |
|||||
ASSET QUALITY DETAIL |
|||||||
Nonperforming Loans: |
|||||||
Loans on nonaccrual basis(5) |
$113,490 |
$128,740 |
$132,555 |
||||
Troubled debt restructured loans |
34,208 |
11,724 |
599 |
||||
Total Nonperforming Loans |
147,698 |
140,464 |
133,154 |
||||
Other real estate owned ("OREO") |
36,507 |
28,768 |
21,548 |
||||
Nonaccrual securities at fair value |
0 |
17,214 |
6,483 |
||||
Total Nonperforming Assets |
$184,205 |
$186,446 |
$161,185 |
||||
Loans past due in excess of 90 days and still accruing |
$12,960 |
$15,202 |
$15,045 |
||||
Nonperforming loans, plus OREO as a percentage |
|||||||
of total loans, plus OREO |
4.57% |
4.12% |
3.47% |
||||
Allowance for credit losses |
$75,166 |
$76,792 |
$88,046 |
||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||
2011 |
2011 |
2010 |
2011 |
2010 |
||||||
Net Charge-offs: |
||||||||||
Commercial, financial, agricultural and other |
$1,840 |
$856 |
($1,421) |
$2,696 |
$(643) |
|||||
Real estate construction |
3,049 |
4,999 |
34,469 |
8,048 |
38,182 |
|||||
Commercial real estate |
4,721 |
690 |
(18) |
5,411 |
944 |
|||||
Residential real estate |
519 |
1,085 |
970 |
1,604 |
2,492 |
|||||
Loans to individuals |
609 |
624 |
689 |
1,233 |
1,648 |
|||||
Net Charge-offs |
$10,738 |
$8,254 |
$34,689 |
$18,992 |
$42,623 |
|||||
Net charge-offs as a percentage of average loans |
||||||||||
outstanding (annualized) |
1.06% |
0.80% |
3.06% |
0.93% |
1.87% |
|||||
Provision for credit losses as a percentage of net charge-offs |
84.86% |
167.40% |
11.56% |
120.73% |
115.03% |
|||||
Provision for credit losses |
$9,112 |
$13,817 |
$4,010 |
$22,929 |
$49,030 |
|||||
(5) Nonaccrual balance at June 30, 2011 includes $823 of held for sale loans. |
||||||||||
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." |
||||||||
June 30, |
March 31, |
June 30, |
||||||
2011 |
2011 |
2010 |
||||||
Tangible Equity: |
||||||||
Total shareholders' equity |
$762,076 |
$752,132 |
$654,250 |
|||||
Less: intangible assets |
164,553 |
164,943 |
166,131 |
|||||
Tangible Equity |
597,523 |
587,189 |
488,119 |
|||||
Less: preferred stock |
0 |
0 |
0 |
|||||
Tangible Common Equity |
$597,523 |
$587,189 |
$488,119 |
|||||
Tangible Assets: |
||||||||
Total assets |
$5,691,302 |
$5,762,366 |
$6,058,069 |
|||||
Less: intangible assets |
164,553 |
164,943 |
166,131 |
|||||
Tangible Assets |
$5,526,749 |
$5,597,423 |
$5,891,938 |
|||||
(3)Tangible Common Equity as a percentage of Tangible Assets |
10.81% |
10.49% |
8.28% |
|||||
Shares Outstanding at End of Period |
104,906,994 |
104,859,954 |
86,242,139 |
|||||
(4)Tangible Book Value Per Common Share |
$5.70 |
$5.60 |
$5.66 |
|||||
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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