First Commonwealth Announces Third Quarter 2010 Financial Results
INDIANA, Pa., Oct. 28 /PRNewswire-FirstCall/ -- First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $10.7 million, or $0.11 diluted earnings per share, for the third quarter ended September 30, 2010 compared to a net loss of $5.9 million, or $0.07 per share, in the third quarter of 2009. For the nine months ended September 30, 2010, net income was $11.0 million, or $0.12 diluted earnings per share, compared to a net loss of $22.8 million or $0.27 per share in the first nine months of 2009. The increase in net income for both periods was primarily the result of a lower provision for credit losses, a decrease in net securities impairment losses on investments in pooled trust preferred collateralized debt obligations, an increase in noninterest income and a decrease in noninterest expense.
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John J. Dolan, President and Chief Executive Officer, stated, "We are pleased to report favorable earnings results for the third quarter. While macro-economic challenges persist, the ongoing resolution of our credit issues continues to result in improved performance. An improved risk profile, along with our strong capital base, positions us well when the economic recovery takes shape."
Credit Quality
The provision for credit losses was $4.5 million and $53.6 million for the third quarter and year to date periods ended September 30, 2010, respectively, as compared to $23.0 million and $79.5 million in the prior year periods. The primary component of the reduced provision expense for the quarter was the favorable resolution of a troubled $11.9 million participation loan secured by a condominium development in Missouri. This loan was placed in nonaccrual status during the first quarter of 2010 and a $2.1 million charge-off was recorded in the third quarter of 2010. The payoff of this loan released $8.8 million of the $10.9 million previously established specific reserve.
For the quarter ended September 30, 2010, nonperforming loans were $124.2 million, a decrease of $8.9 million from June 30, 2010 primarily from the resolution of the previously mentioned Missouri condominium participation loan. Nonperforming loans as a percentage of total loans were 2.89%, 3.00% and 2.88% for the periods ended September 30, 2010, June 30, 2010 and September 30, 2009, respectively.
Other real estate owned ("OREO") acquired through foreclosure was $24.6 million at September 30, 2010; $18.1 million is related to a food manufacturing property that was previously under a sales agreement which expired.
During the third quarter of 2010, net charge-offs were $6.9 million compared to $15.6 million in the third quarter of 2009. The most significant loan charge-offs for the third quarter of 2010 were $2.1 million related to the aforementioned Missouri condominium participation loan and $0.7 million for a $5.0 million participation loan for a completed recreational facility in Illinois that was placed in nonaccrual status during the second quarter of 2009. A $2.1 million charge-off was recorded in the first quarter of 2010 and the $2.2 million remaining balance on the recreational facility was transferred to OREO in the third quarter 2010. For the nine months ended September 30, 2010 net charge-offs were $49.5 million, or 1.46% of average loans on an annualized basis, compared to $41.8 million, or 1.24% 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 1.99%, 1.99% and 1.95% for September 30, 2010, June 30, 2010 and September 30, 2009, respectively.
Net Interest Income and Net Margin
During the third quarter of 2010 net interest income, on a fully taxable equivalent basis, decreased $1.0 million, or 2%, compared to the third quarter of 2009. The decrease was a result of a $532.0 million decline in average interest-earning assets, partially offset by a 28 basis point increase in the net interest margin. Net interest margin was 3.90%, 3.88% and 3.62% for the three-month periods ended September 30, 2010, June 30, 2010 and September 30, 2009, respectively. The improved net interest margin is the result of a more favorable deposit mix, disciplined loan pricing and reduced balance sheet leveraging. For the nine months ended September 30, 2010 net interest income, on a taxable equivalent basis, increased $1.8 million, or 1%. The increase was due to a 20 basis point increase in the net interest margin, partially offset by a decline in average interest-earning assets. The net interest margin for the nine months ended September 30, 2010 and 2009, respectively, was 3.89% and 3.69%.
Mr. Dolan added, "An organization-wide focus on improving our mix of deposits has provided lower funding costs and improved profitability. In addition to significant growth in lower-costing transaction and savings deposits, our employees have maintained a relentless focus on deepening customer relationships by delivering competitive and appropriate financial solutions to the local communities we serve. These efforts have led to a more comprehensive customer service culture and should lead to improved financial performance."
Significant changes to First Commonwealth's balance sheet from the third quarter of 2009 to the comparable period in 2010 include:
- A $941.7 million, or 71%, reduction in borrowings, driven by a decrease in loans and investment securities, and an increase in deposits.
- The decrease of $349.5 million, or 8%, in loans is a result of planned decreases in residential real estate loans, more disciplined underwriting guidelines concerning geography and size for commercial loans and generally weak borrower demand.
- The $345.3 million, or 26%, decline in investment securities is 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, in addition to the liquidation of municipal securities.
- Continued improvement in the mix of deposits, as a $363.0 million, or 13%, growth in lower costing transaction and savings deposits has more than offset a $132.2 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 September 30, 2010 were 11.1%, 13.7% and 12.5%, respectively.
Noninterest Income
Recognized net security losses were $2.9 million, $1.5 million and $11.9 million for the three-month periods ended September 30, 2010, June 30, 2010 and September 30, 2009, respectively. These losses resulted primarily from other-than-temporary impairment charges on investments in pooled trust preferred collateralized debt obligations. Net security losses for the three month period ended September 30, 2010 include $1.4 million of realized gains primarily from the sale of municipal securities. A strategy was implemented in the second quarter of 2010 that reduced the municipal securities portfolio exposure from $209.5 million at December 31, 2009 to $53.0 million at September 30, 2010. For the nine months ended September 30, 2010 and 2009, net security losses were $6.7 million and $30.4 million, respectively.
The company's pooled trust preferred collateralized debt obligations consist of 14 securities comprised of 368 banks and other financial institutions. Two pooled securities are senior tranches and the remaining 12 are mezzanine tranches. As of September 30, 2010, the book value of pooled securities totaled $59.9 million with an estimated fair value of $22.8 million. In the third quarter of 2010, a $4.0 million other-than-temporary impairment charge was recorded for five trust preferred collateralized debt obligations that are expected to experience a principal shortfall. The amount of impairment charge recognized represents the expected credit loss on these securities.
Noninterest income, excluding net security losses, increased $0.9 million, or 7%, in the third quarter of 2010 compared to the same period last year primarily as a result of increases in card related interchange income of $0.4 million, $0.7 million in miscellaneous noninterest income categories and $0.3 million in income from bank owned life insurance. Offsetting these increases was a decrease of $0.5 million in insurance and brokerage commissions as a result of lower sales activity.
For the nine months ended September 30, 2010, noninterest income, excluding net security losses, increased $0.9 million, or 2%, when compared to the same period of 2009; trust income increased $0.8 million as a result of increased market values of assets under management; card-related interchange income increased $1.4 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 $0.7 million as a result of improved crediting rates. The second quarter of 2009 included a $2.1 million gain from a legal settlement.
Noninterest Expense
Noninterest expense decreased $1.0 million, or 2%, in the third quarter of 2010 from the third quarter of 2009. The decrease is primarily related to the $0.8 million, or 4%, decline in salaries and employee benefits.
For the nine months ended September 30, 2010, as compared to the same period last year, noninterest expense decreased $2.8 million, or 2%. Contributing to this decrease was an expense reduction initiative that commenced in 2009, declines in FDIC premiums due to the special assessment of $2.9 million in 2009, $1.2 million of collection and repossession expenses related to two loans that were transferred to OREO, a decrease of $1.0 million in other loan related expenses and a decrease of $1.0 million in salaries and employee benefits. Offsetting these decreases were increases in data processing, software and maintenance expense of $1.3 million primarily due to higher investments in technology solutions and a $2.2 million write-down to current fair value for an OREO property.
Full time equivalent staff was 1,584 and 1,624 for the periods ended September 30, 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), improved to 62% for the nine months ended September 30, 2010 from 64% during the same period in 2009.
Dolan commented, "There has been a significant, upward shift in the expense base for the banking industry due to FDIC insurance premiums, credit cycle costs and added regulatory compliance. Despite these headwinds, we are pleased with our organization's cost control efforts thus far, but see additional opportunities through better technology utilization and improved staff efficiencies. These will be a strategic focus for us going forward."
Conference Call
First Commonwealth will host its quarterly conference call to discuss its financial results for the third quarter of 2010 on Thursday, October 28, 2010 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-800-860-2442 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 $5.9 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 114 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, 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 Nine Months Ended |
||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
September 30, |
|||
2010 |
2010 |
2010 |
2009 |
2009 |
2010 |
2009 |
|||
Interest Income |
|||||||||
Interest and fees on loans |
$56,051 |
$57,367 |
$57,408 |
$58,877 |
$57,085 |
$170,826 |
$173,153 |
||
Interest and dividends on investments: |
|||||||||
Taxable interest |
9,193 |
9,664 |
10,467 |
11,300 |
12,406 |
29,324 |
39,291 |
||
Interest exempt from federal income taxes |
721 |
1,839 |
2,151 |
2,351 |
2,540 |
4,711 |
8,094 |
||
Dividends |
13 |
19 |
27 |
25 |
31 |
59 |
183 |
||
Interest on bank deposits |
4 |
48 |
25 |
4 |
1 |
77 |
3 |
||
Total interest income |
65,982 |
68,937 |
70,078 |
72,557 |
72,063 |
204,997 |
220,724 |
||
Interest Expense |
|||||||||
Interest on deposits |
12,194 |
13,067 |
13,580 |
15,338 |
17,014 |
38,841 |
54,464 |
||
Interest on short-term borrowings |
284 |
616 |
852 |
789 |
947 |
1,752 |
3,427 |
||
Interest on subordinated debentures |
1,429 |
1,390 |
1,375 |
1,398 |
1,447 |
4,194 |
4,772 |
||
Interest on other long-term debt |
979 |
1,268 |
1,173 |
1,592 |
1,672 |
3,420 |
4,991 |
||
Total interest on long-term debt |
2,408 |
2,658 |
2,548 |
2,990 |
3,119 |
7,614 |
9,763 |
||
Total interest expense |
14,886 |
16,341 |
16,980 |
19,117 |
21,080 |
48,207 |
67,654 |
||
Net Interest Income |
51,096 |
52,596 |
53,098 |
53,440 |
50,983 |
156,790 |
153,070 |
||
Taxable equivalent adjustment |
1,965 |
2,639 |
2,798 |
2,975 |
3,052 |
7,402 |
9,328 |
||
Net Interest Income (FTE) (a) |
53,061 |
55,235 |
55,896 |
56,415 |
54,035 |
164,192 |
162,398 |
||
Provision for credit losses |
4,522 |
4,010 |
45,020 |
21,059 |
23,020 |
53,552 |
79,510 |
||
Net Interest Income after Provision for Credit Losses (FTE) (a) |
48,539 |
51,225 |
10,876 |
35,356 |
31,015 |
110,640 |
82,888 |
||
Noninterest Income |
|||||||||
Changes in fair value on impaired securities |
(5,787) |
190 |
(1,517) |
(4,091) |
(25,473) |
(7,114) |
(68,483) |
||
Non-credit related (gains) losses on securities not expected to |
|||||||||
be sold (recognized in other comprehensive income) |
1,497 |
(2,300) |
(1,233) |
(1,564) |
13,570 |
(2,036) |
37,953 |
||
Net impairment losses |
(4,290) |
(2,110) |
(2,750) |
(5,655) |
(11,903) |
(9,150) |
(30,530) |
||
Net securities gains |
1,430 |
562 |
420 |
149 |
44 |
2,412 |
124 |
||
Trust income |
1,486 |
1,398 |
1,494 |
1,201 |
1,366 |
4,378 |
3,604 |
||
Service charges on deposit accounts |
4,302 |
4,603 |
4,152 |
4,642 |
4,555 |
13,057 |
12,798 |
||
Insurance and retail brokerage commissions |
1,600 |
1,866 |
1,862 |
1,819 |
2,068 |
5,328 |
5,440 |
||
Income from bank owned life insurance |
1,377 |
1,301 |
1,257 |
1,192 |
1,078 |
3,935 |
3,250 |
||
Card related interchange income |
2,689 |
2,686 |
2,320 |
2,301 |
2,224 |
7,695 |
6,258 |
||
Other income |
2,285 |
2,343 |
2,696 |
3,220 |
1,569 |
7,324 |
9,512 |
||
Total noninterest income |
10,879 |
12,649 |
11,451 |
8,869 |
1,001 |
34,979 |
10,456 |
||
Noninterest Expense |
|||||||||
Salaries and employee benefits |
20,617 |
21,047 |
22,327 |
21,073 |
21,405 |
63,991 |
64,986 |
||
Net occupancy expense |
3,317 |
3,539 |
3,893 |
3,262 |
3,263 |
10,749 |
10,791 |
||
Furniture and equipment expense |
3,084 |
3,101 |
3,165 |
3,012 |
3,121 |
9,350 |
9,073 |
||
Data processing expense |
1,367 |
1,478 |
1,437 |
1,254 |
1,136 |
4,282 |
3,433 |
||
Pennsylvania shares tax expense |
1,468 |
1,457 |
1,057 |
1,361 |
1,310 |
3,982 |
3,953 |
||
Intangible amortization |
408 |
576 |
657 |
656 |
684 |
1,641 |
2,170 |
||
Collection and repossession expense |
1,209 |
794 |
923 |
915 |
1,444 |
2,926 |
4,095 |
||
Other professional fees and services |
719 |
1,062 |
1,166 |
796 |
723 |
2,947 |
2,633 |
||
FDIC insurance |
2,014 |
2,012 |
1,963 |
2,041 |
2,046 |
5,989 |
8,430 |
||
Loss on sale or write-down of assets |
92 |
2,314 |
83 |
140 |
50 |
2,489 |
161 |
||
Other operating expenses |
6,636 |
6,298 |
6,568 |
6,013 |
6,763 |
19,502 |
20,903 |
||
Total noninterest expense |
40,931 |
43,678 |
43,239 |
40,523 |
41,945 |
127,848 |
130,628 |
||
Income (Loss) before income taxes |
18,487 |
20,196 |
(20,912) |
3,702 |
(9,929) |
17,771 |
(37,284) |
||
Taxable equivalent adjustment |
1,965 |
2,639 |
2,798 |
2,975 |
3,052 |
7,402 |
9,328 |
||
Income tax (benefit) provision |
5,863 |
4,015 |
(10,542) |
(2,002) |
(7,120) |
(664) |
(23,819) |
||
Net Income (Loss) |
$10,659 |
$13,542 |
($13,168) |
$2,729 |
($5,861) |
$11,033 |
($22,793) |
||
Average Shares Outstanding |
97,199,306 |
85,777,550 |
85,029,748 |
84,681,199 |
84,594,952 |
89,380,112 |
84,558,972 |
||
Average Shares Outstanding Assuming Dilution |
97,203,753 |
85,788,566 |
85,029,748 |
84,681,199 |
84,594,952 |
89,382,588 |
84,558,972 |
||
Per Share Data: |
|||||||||
Basic Earnings (Loss) Per Share |
$0.11 |
$0.15 |
($0.15) |
$0.03 |
($0.07) |
$0.12 |
($0.27) |
||
Diluted Earnings (Loss) Per Share |
$0.11 |
$0.15 |
($0.15) |
$0.03 |
($0.07) |
$0.12 |
($0.27) |
||
Cash Dividends Declared per Common Share |
$0.01 |
$0.01 |
$0.03 |
$0.03 |
$0.03 |
$0.05 |
$0.15 |
||
(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. |
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FIRST COMMONWEALTH FINANCIAL CORPORATION |
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CONSOLIDATED SELECTED FINANCIAL DATA |
||||||
(dollars in thousands, except share data) |
||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||
2010 |
2010 |
2010 |
2009 |
2009 |
||
Assets |
||||||
Cash and due from banks |
$94,567 |
$86,855 |
$79,136 |
$89,232 |
$79,694 |
|
Interest-bearing bank deposits |
40,852 |
1,503 |
57,073 |
327 |
332 |
|
Securities available-for-sale, at fair value |
927,121 |
996,220 |
1,062,713 |
1,133,856 |
1,231,015 |
|
Securities held to maturity, at amortized cost |
0 |
0 |
31,891 |
36,758 |
41,397 |
|
Other investments |
51,431 |
51,431 |
51,431 |
51,431 |
51,431 |
|
Loans: |
||||||
Portfolio loans |
4,299,573 |
4,434,291 |
4,595,409 |
4,636,501 |
4,649,034 |
|
Allowance for credit losses |
(85,646) |
(88,046) |
(118,725) |
(81,639) |
(90,466) |
|
Net loans |
4,213,927 |
4,346,245 |
4,476,684 |
4,554,862 |
4,558,568 |
|
Premises and equipment, net |
68,270 |
69,203 |
70,357 |
70,742 |
72,074 |
|
Other real estate owned |
24,555 |
21,548 |
23,191 |
24,287 |
24,138 |
|
Goodwill |
159,956 |
159,956 |
159,956 |
159,956 |
159,956 |
|
Other intangibles, net |
5,766 |
6,175 |
6,752 |
7,407 |
8,063 |
|
Other assets |
325,258 |
318,933 |
324,645 |
317,435 |
284,771 |
|
Total assets |
$5,911,703 |
$6,058,069 |
$6,343,829 |
$6,446,293 |
$6,511,439 |
|
Liabilities |
||||||
Deposits (all domestic): |
||||||
Noninterest-bearing |
$730,939 |
$651,250 |
$639,184 |
$641,231 |
$599,842 |
|
Interest-bearing demand deposits |
103,346 |
107,261 |
99,218 |
107,612 |
93,062 |
|
Savings deposits |
2,354,843 |
2,360,648 |
2,273,714 |
2,175,953 |
2,133,203 |
|
Time deposits |
1,538,743 |
1,619,479 |
1,640,153 |
1,610,989 |
1,670,930 |
|
Total interest-bearing |
3,996,932 |
4,087,388 |
4,013,085 |
3,894,554 |
3,897,195 |
|
Total deposits |
4,727,871 |
4,738,638 |
4,652,269 |
4,535,785 |
4,497,037 |
|
Short-term borrowings |
162,020 |
355,682 |
794,195 |
958,932 |
1,043,447 |
|
Subordinated debentures |
105,750 |
105,750 |
105,750 |
105,750 |
105,750 |
|
Other long-term debt |
119,475 |
155,250 |
119,084 |
168,697 |
179,784 |
|
Total long-term debt |
225,225 |
261,000 |
224,834 |
274,447 |
285,534 |
|
Other liabilities |
54,777 |
48,499 |
39,452 |
38,318 |
42,276 |
|
Total liabilities |
5,169,893 |
5,403,819 |
5,710,750 |
5,807,482 |
5,868,294 |
|
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 |
86,971 |
86,755 |
86,600 |
86,600 |
|
Additional paid-in capital |
366,647 |
303,961 |
302,841 |
301,523 |
302,418 |
|
Retained earnings |
280,706 |
271,139 |
258,593 |
278,887 |
278,695 |
|
Accumulated other comprehensive income (loss), net |
1,009 |
5,236 |
(1,181) |
(6,045) |
(762) |
|
Treasury stock, at cost |
(7,967) |
(8,457) |
(8,829) |
(16,554) |
(17,706) |
|
Unearned ESOP shares |
(4,100) |
(4,600) |
(5,100) |
(5,600) |
(6,100) |
|
Total shareholders' equity |
741,810 |
654,250 |
633,079 |
638,811 |
643,145 |
|
Total liabilities and shareholders' equity |
$5,911,703 |
$6,058,069 |
$6,343,829 |
$6,446,293 |
$6,511,439 |
|
Book value per share |
$7.08 |
$7.59 |
$7.36 |
$7.50 |
$7.56 |
|
Market value per share |
$5.45 |
$5.25 |
$6.71 |
$4.65 |
$5.68 |
|
FIRST COMMONWEALTH FINANCIAL CORPORATION |
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CONSOLIDATED SELECTED FINANCIAL DATA |
||||||||
Quarter To Date Average Balance Sheets and Net Interest Analysis |
||||||||
(dollars in thousands) |
||||||||
September 30, |
September 30, |
|||||||
2010 |
2009 |
|||||||
Average Balance |
Income/Expense (a) |
Yield or Rate |
Average Balance |
Income/Expense (a) |
Yield or Rate |
|||
Assets |
||||||||
Interest-earning assets: |
||||||||
Interest-bearing deposits with banks |
$6,650 |
$4 |
0.24% |
$461 |
$1 |
1.04% |
||
Tax-free investment securities |
67,459 |
1,109 |
6.53% |
228,271 |
3,909 |
6.79% |
||
Taxable investment securities |
930,423 |
9,206 |
3.93% |
1,097,915 |
12,437 |
4.49% |
||
Loans, net of unearned income (b)(c) |
4,390,123 |
57,628 |
5.21% |
4,600,016 |
58,768 |
5.07% |
||
Total interest-earning assets |
$5,394,655 |
$67,947 |
5.00% |
$5,926,663 |
$75,115 |
5.03% |
||
Noninterest-earning assets: |
||||||||
Cash |
78,412 |
78,497 |
||||||
Allowance for credit losses |
(91,247) |
(82,698) |
||||||
Other assets |
591,115 |
562,452 |
||||||
Total noninterest-earning assets |
578,280 |
558,251 |
||||||
Total Assets |
$5,972,935 |
$6,484,914 |
||||||
Liabilities and Shareholders' Equity |
||||||||
Interest-bearing liabilities: |
||||||||
Interest-bearing demand deposits (d) |
$629,307 |
$175 |
0.11% |
$603,830 |
$388 |
0.25% |
||
Savings deposits (d) |
1,817,235 |
2,773 |
0.61% |
1,601,898 |
4,421 |
1.10% |
||
Time deposits |
1,601,826 |
9,246 |
2.29% |
1,707,787 |
12,205 |
2.84% |
||
Short-term borrowings |
265,855 |
284 |
0.42% |
996,416 |
947 |
0.38% |
||
Long-term debt |
234,255 |
2,408 |
4.08% |
286,427 |
3,119 |
4.32% |
||
Total interest-bearing liabilities |
$4,548,478 |
$14,886 |
1.30% |
$5,196,358 |
$21,080 |
1.61% |
||
Noninterest-bearing liabilities and shareholders' equity: |
||||||||
Noninterest-bearing demand deposits (d) |
663,947 |
599,606 |
||||||
Other liabilities |
46,727 |
40,149 |
||||||
Shareholders' equity |
713,783 |
648,801 |
||||||
Total noninterest-bearing funding sources |
1,424,457 |
1,288,556 |
||||||
Total Liabilities and Shareholders' Equity |
$5,972,935 |
$6,484,914 |
||||||
Net Interest Income and Net Yield on Interest-Earning Assets |
$53,061 |
3.90% |
$54,035 |
3.62% |
||||
(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 and Net Interest Analysis |
||||||||
(dollars in thousands) |
||||||||
September 30, |
September 30, |
|||||||
2010 |
2009 |
|||||||
Average Balance |
Income/Expense (a) |
Yield or Rate |
Average Balance |
Income/Expense (a) |
Yield or Rate |
|||
Assets |
||||||||
Interest-earning assets: |
||||||||
Interest-bearing deposits with banks |
$40,036 |
$77 |
0.26% |
$679 |
$3 |
0.60% |
||
Tax-free investment securities |
144,922 |
7,248 |
6.69% |
241,709 |
12,453 |
6.89% |
||
Taxable investment securities |
938,233 |
29,383 |
4.19% |
1,120,002 |
39,474 |
4.71% |
||
Loans, net of unearned income (b)(c) |
4,525,149 |
175,691 |
5.19% |
4,524,567 |
178,122 |
5.26% |
||
Total interest-earning assets |
5,648,340 |
212,399 |
5.03% |
5,886,957 |
230,052 |
5.22% |
||
Noninterest-earning assets: |
||||||||
Cash |
77,027 |
75,994 |
||||||
Allowance for credit losses |
(99,649) |
(59,817) |
||||||
Other assets |
591,133 |
548,766 |
||||||
Total noninterest-earning assets |
568,511 |
564,943 |
||||||
Total Assets |
$6,216,851 |
$6,451,900 |
||||||
Liabilities and Shareholders' Equity |
||||||||
Interest-bearing liabilities: |
||||||||
Interest-bearing demand deposits (d) |
$620,231 |
$591 |
0.13% |
$600,229 |
$1,367 |
0.30% |
||
Savings deposits (d) |
1,778,204 |
9,642 |
0.72% |
1,450,336 |
12,715 |
1.17% |
||
Time deposits |
1,626,660 |
28,608 |
2.35% |
1,766,375 |
40,382 |
3.06% |
||
Short-term borrowings |
594,182 |
1,752 |
0.39% |
1,065,530 |
3,427 |
0.43% |
||
Long-term debt |
244,547 |
7,614 |
4.16% |
288,221 |
9,763 |
4.53% |
||
Total interest-bearing liabilities |
4,863,824 |
48,207 |
1.33% |
5,170,691 |
67,654 |
1.75% |
||
Noninterest-bearing liabilities and shareholders' equity: |
||||||||
Noninterest-bearing demand deposits (d) |
640,911 |
582,952 |
||||||
Other liabilities |
40,807 |
41,766 |
||||||
Shareholders' equity |
671,309 |
656,491 |
||||||
Total noninterest-bearing funding sources |
1,353,027 |
1,281,209 |
||||||
Total Liabilities and Shareholders' Equity |
$6,216,851 |
$6,451,900 |
||||||
Net Interest Income and Net Yield on Interest-Earning Assets |
$164,192 |
3.89% |
$162,398 |
3.69% |
||||
(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) |
|||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||
2010 |
2010 |
2010 |
2009 |
2009 |
|||||
Nonperforming Loans: |
|||||||||
Loans on nonaccrual basis |
$123,221 |
$132,555 |
$166,779 |
$147,937 |
$133,200 |
||||
Troubled debt restructured loans |
1,013 |
599 |
609 |
619 |
627 |
||||
Total nonperforming loans |
$124,234 |
$133,154 |
$167,388 |
$148,556 |
$133,827 |
||||
Loans past due in excess of 90 days and still accruing |
$15,838 |
$15,045 |
$13,371 |
$15,154 |
$14,369 |
||||
Other real estate owned |
$24,555 |
$21,548 |
$23,191 |
$24,287 |
$24,138 |
||||
Loans outstanding at end of period |
$4,299,573 |
$4,434,291 |
$4,595,409 |
$4,636,501 |
$4,649,034 |
||||
Average loans outstanding |
$4,525,149 |
$4,593,781 |
$4,635,712 |
$4,557,227 |
$4,524,567 |
||||
Provision for credit losses (Year To Date) |
$53,552 |
$49,030 |
$45,020 |
$100,569 |
$79,510 |
||||
Allowance for credit losses |
$85,646 |
$88,046 |
$118,725 |
$81,639 |
$90,466 |
||||
Net charge-offs (year to date) |
$49,545 |
$42,623 |
$7,934 |
$71,689 |
$41,803 |
||||
Nonperforming loans as a percentage of total loans |
2.89% |
3.00% |
3.64% |
3.20% |
2.88% |
||||
Net charge-offs as a percentage of average loans |
|||||||||
outstanding (annualized) |
1.46% |
1.87% |
0.69% |
1.57% |
1.24% |
||||
Provision for credit losses as a percentage of net charge-offs |
108.09% |
115.03% |
567.43% |
140.29% |
190.20% |
||||
Allowance for credit losses as a percentage of end-of-period |
|||||||||
loans outstanding |
1.99% |
1.99% |
2.58% |
1.76% |
1.95% |
||||
Allowance for credit losses as a percentage of nonperforming |
|||||||||
loans |
68.94% |
66.12% |
70.93% |
54.96% |
67.60% |
||||
Nonperforming Securities: |
|||||||||
Nonaccrual securities at market value |
$11,050 |
$6,483 |
$6,553 |
$3,258 |
$3,503 |
||||
Profitability Ratios |
|||||||||
(dollars in thousands) |
|||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
September 30, |
|||
2010 |
2010 |
2010 |
2009 |
2009 |
2010 |
2009 |
|||
Return on average assets (a) |
0.71% |
0.87% |
-0.83% |
0.17% |
-0.36% |
0.24% |
-0.47% |
||
Return on average equity (a) |
5.92% |
8.41% |
-8.17% |
1.65% |
-3.58% |
2.20% |
-4.64% |
||
Net interest margin (b) |
3.90% |
3.88% |
3.87% |
3.78% |
3.62% |
3.89% |
3.69% |
||
Efficiency ratio (c) |
61.27% |
62.91% |
62.06% |
57.24% |
62.70% |
62.09% |
64.27% |
||
(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 |
||||||||||
September 30, 2010 |
||||||||||
(dollars in thousands) |
||||||||||
Excess Over |
||||||||||
Actual |
Regulatory Minimum |
Well Capitalized |
Well Capitalized |
|||||||
Capital |
Capital |
Capital |
Capital |
|||||||
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
||||
Total Capital to Risk Weighted Assets |
||||||||||
First Commonwealth Financial Corporation |
$705,259 |
13.7% |
$410,605 |
8.0% |
N/A |
N/A |
N/A |
|||
First Commonwealth Bank |
$659,982 |
13.0% |
$406,320 |
8.0% |
$507,901 |
10.0% |
$152,081 |
|||
Tier I Capital to Risk Weighted Assets |
||||||||||
First Commonwealth Financial Corporation |
$640,827 |
12.5% |
$205,303 |
4.0% |
N/A |
N/A |
N/A |
|||
First Commonwealth Bank |
$596,211 |
11.7% |
$203,160 |
4.0% |
$304,740 |
6.0% |
$291,471 |
|||
Tier I Capital to Average Assets |
||||||||||
First Commonwealth Financial Corporation |
$640,827 |
11.1% |
$230,819 |
4.0% |
N/A |
N/A |
N/A |
|||
First Commonwealth Bank |
$596,211 |
10.4% |
$229,092 |
4.0% |
$286,365 |
5.0% |
$309,846 |
|||
SOURCE First Commonwealth Financial Corporation
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