Exhibit 99 - First Commonwealth Financial Corporation Press Release dated July 21, 2006
*** NEWS RELEASE ***
TO: | All Area News Agencies | For More Information Contact: |
| | |
FROM: | First Commonwealth | John Dolan, Executive Vice President and |
| Financial Corporation | Chief Financial Officer |
| | First Commonwealth Financial Corporation |
DATE: | July 21, 2006 | (724) 349-7220 |
First Commonwealth Announces Second Quarter 2006 Financial Results
Continues Expansion in Pittsburgh Region
Indiana, PA., July 21, 2006-First Commonwealth Financial Corporation (NYSE:FCF) reported financial results for the second quarter ended June 30, 2006.
Second Quarter Results
Net income was $12.2 million for the second quarter of 2006 compared to net income of $17.8 million for the second quarter of 2005. Basic and diluted earnings per share were $0.18 for the second quarter of 2006 compared to $0.26 for the comparable period of 2005. Return on equity was 9.39% and return on assets was 0.83% for the second quarter of 2006 compared to 13.55% and 1.15%, respectively for the second quarter of 2005. The decrease in net income in the second quarter 2006 was due in large part to certain gains that were included in the second quarter 2005 results. The second quarter of 2005 included a $3.1 million pre-tax gain on the sale of a branch office ($2.0 million after tax) and a $2.0 million gain on the sale of First Commonwealth's merchant services business ($1.3 million after tax). Additionally, net interest income was $2.3 million lower in the second quarter 2006 than that of the 2005 period. The provision for credit losses increased $1.3 million in the second quarter of 2006 compared to the second quarter of 2005 largely due to the deterioration of a single large commercial loan. Total other expenses declined $1.9 million in the second quarter 2006 when compared to the second quarter of 2005.
In the second quarter of 2006, First Commonwealth continued its expansion in the Pittsburgh region through:
| An agreement to acquire Laurel Capital Group, Inc., with total assets of $314 million, headquartered in Allison Park, Pennsylvania. Laurel Capital Group is the parent company of Laurel Savings Bank which operates eight retail branches in Allegheny and Butler Counties, Pennsylvania. The agreement was entered into in April 2006 and the merger is expected to be completed during the third quarter of 2006. |
| Opening a new branch office in the Pittsburgh-area market as well as beginning construction on two new branch offices and launching a significant renovation on an existing branch. |
Year-to-Date Results
Net income for the first six months of 2006 was $25.2 million compared to $33.1 million for the same period of 2005. The decline in net income resulted primarily from the reduction in net interest income as well as the inclusion of the gains mentioned above in the results for the six months of 2005. The provision for credit losses increased $462 thousand in the first six months of 2006 compared to the same period of 2005 largely as the deterioration of a large commercial loan offset some improvements experienced elsewhere in the loan portfolio. Total other expenses declined $2.5 million in the first six months of 2006 when compared to the first six months of 2005. Basic and diluted earnings per share were $0.36 for the first six months of 2006 compared to $0.48 and $0.47, respectively for the first six months of 2005. Return on equity and return on assets for the six months ended June 30, 2006 were 9.67% and 0.85% compared to 12.51% and 1.07%, respectively in the 2005 period.
Net Interest Income
Net interest income for the second quarter of 2006 decreased $2.3 million to $41.3 million from $43.6 million in the second quarter of 2005. Second quarter 2006 net interest margin (net interest income as a percentage of average earning assets on a fully tax equivalent basis) increased three basis points (0.03%) to 3.31%, compared to 3.28% in the corresponding period last year. The improvement in net interest margin was primarily due to a reduction in the average volume of interest bearing liabilities. Due to the relatively flat yield curve First Commonwealth has limited the reinvestment of investment securities proceeds and reduced borrowings. Additionally net interest margin improved in the second quarter of 2006 on lower earning asset levels due to the balance sheet changes that occurred in the fourth quarter of 2005.
Net interest income for the first six months of 2006 was $82.7 million compared to $88.6 million for the first six months of 2005. Net interest margin decreased three basis points (0.03%) to 3.31% in the first six months of 2006 compared to the same period of 2005 on lower earning asset levels.
Other Income
Total other income for the second quarter of 2006 declined $6.0 million to $11.1 million from $17.1 million in the second quarter 2005 largely as a result of the above-mentioned gains on the branch sale, and on the sale of the merchant services business, as well as the absence of income generated from merchant services business during the first six months of 2005.
While year-to-date total other income decreased in 2006 primarily due to the above mentioned gains occurring in 2005, as well as the reduction in merchant discount income, service charges on deposits improved and are expected to continue to improve as fee schedules are increasing beginning September 2006.
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Other Expenses
Total other expenses for the second quarter of 2006 decreased $1.9 million to $33.2 million from $35.1 million in the corresponding quarter last year. Salaries and employee benefits declined $629 thousand in the second quarter 2006 from the second quarter 2005 level, reflecting a previously planned reduction of the workforce.
Other operating expenses declined $1.4 million with interchange expense declining $733 thousand in the second quarter of 2006 when compared to the second quarter of 2005 as a result of the sale of the merchant services business. Advertising, promotion and professional fees comprised the majority of the remaining decreases.
Total other expenses decreased $1.7 million during the first six months of 2006 to $68.8 million. While salaries and wages were lower in the 2006 period than those of the first six months of 2005, the decline was offset by the increased cost of certain benefits, mostly occurring in the first three months of 2006. Other operating expenses decreased $2.5 million year-to-date in 2006 when compared to the same period of 2005. Interchange expense totaling $1.4 million during the first six months of 2005 was eliminated in the 2006 period as a result of the above mentioned sale of First Commonwealth's merchant processing business in 2005.
Credit Quality and Provision for Credit Losses
As of June 30, 2006, total nonperforming loans (including loans past due 90 days but still accruing) increased to $30.9 million from the $26.6 million at June 30, 2005. While nonaccrual loans increased $3.6 million since June 30, 2005, the increase in nonaccrual loans resulted primarily from one commercial credit relationship during the first quarter of 2006. The remaining recorded balance is believed to be well secured, including partial government agency guarantees.
Included in the allowance for credit losses at June 30, 2006 was $2.6 million allocated for a large commercial loan that experienced unexpected deterioration. Additionally First Commonwealth reclassified a $5.7 million watch list credit relationship to loans held for sale. This reclassification resulted in a charge to the allowance for credit losses of $1.4 million to adjust the loan to fair value. Net charge-offs reduced the allowance for credit losses by $1.9 million in the second quarter of 2006. Consequently, the provision for credit losses was $4.3 million for the second quarter of 2006 compared to $3.0 million in the second quarter of 2005. Management believes that the allowance for credit losses is adequate to cover probable inherent losses at June 30, 2006.
Year-to-date provision for credit losses increased by $462 thousand from $4.7 million in the 2005 period compared to $5.2 million in the first six months of 2006. Net charge-offs reduced the allowance by $4.3 million in addition to the above mentioned reduction related to the reclassification of the relationship to loans held for sale.
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About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $5.9 billion bank holding company headquartered in Indiana, Pennsylvania. It operates 101 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 Financial Advisors, Inc. and First Commonwealth Insurance Agency.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe First Commonwealth's future plans, strategies and expectations and are based on assumptions and involve risks and uncertainties, many of which are beyond the control of First Commonwealth and which may cause actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They 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." Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include among other things:
- | Adverse changes in the economy or business conditions, either nationally or in First Commonwealth's market areas, could increase credit-related losses and expenses and/or limit growth. |
- | Increases in defaults by borrowers and other delinquencies could result in increases in First Commonwealth's provision for losses on loans and related expenses. |
- | Fluctuations in interest rates and market prices could reduce net interest margin and asset valuations and increase expenses. |
- | Changes in legislative or regulatory requirements applicable to First Commonwealth and its subsidiaries could increase costs, limit certain operations and adversely affect results of operations. |
- | Other risks and uncertainties described in First Commonwealth's reports filed with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. |
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FIRST COMMONWEALTH FINANCIAL CORPORATION | | | | | | | |
CONSOLIDATED SELECTED FINANCIAL DATA | | | | | | | |
(Dollar Amounts in Thousands, except per share data) | | | | | | | |
| | | | | | | |
| For the Quarter Ended | For the 6 Months Ended | | | |
| June 30, | June 30, | | | |
| 2006 | 2005 | 2006 | 2005 | | | |
Interest income | $81,693 | $77,540 | $161,474 | $153,177 | | | |
Interest expense | 40,400 | 33,900 | 78,734 | 64,605 | | | |
Net interest income | 41,293 | 43,640 | 82,740 | 88,572 | | | |
Provision for credit losses | 4,298 | 3,000 | 5,206 | 4,744 | | | |
Net interest income after provision for credit losses | 36,995 | 40,640 | 77,534 | 83,828 | | | |
| | | | | | | |
Net securities gains | 19 | 0 | 82 | 485 | | | |
Trust income | 1,481 | 1,456 | 2,875 | 2,781 | | | |
Service charges on deposits | 4,144 | 4,009 | 8,013 | 7,549 | | | |
Gain on sale of branch | 0 | 3,090 | 0 | 3,090 | | | |
Gain on sale of merchant services business | 0 | 1,991 | 0 | 1,991 | | | |
Insurance commissions | 595 | 903 | 1,314 | 1,743 | | | |
Income from bank owned life insurance | 1,414 | 1,355 | 2,789 | 2,676 | | | |
Merchant discount income | 0 | 882 | 0 | 1,721 | | | |
Card related interchange income | 1,391 | 1,216 | 2,689 | 2,303 | | | |
Other income | 2,022 | 2,247 | 3,600 | 4,250 | | | |
Total other income | 11,066 | 17,149 | 21,362 | 28,589 | | | |
| | | | | | | |
Salaries and employee benefits | 17,235 | 17,864 | 36,592 | 36,162 | | | |
Net occupancy expense | 2,785 | 2,715 | 6,187 | 5,707 | | | |
Furniture and equipment expense | 2,915 | 2,759 | 5,682 | 5,629 | | | |
Data processing expense | 820 | 981 | 1,615 | 1,920 | | | |
Pennsylvania shares tax expense | 1,358 | 1,237 | 2,708 | 2,503 | | | |
Intangible amortization | 566 | 566 | 1,131 | 1,131 | | | |
Other operating expense | 7,543 | 8,950 | 14,900 | 17,413 | | | |
Total other expenses | 33,222 | 35,072 | 68,815 | 70,465 | | | |
Income before income taxes | 14,839 | 22,717 | 30,081 | 41,952 | | | |
Applicable income taxes | 2,613 | 4,879 | 4,917 | 8,895 | | | |
Net income | $12,226 | $17,838 | $25,164 | $33,057 | | | |
| | | | | | | |
Average shares outstanding | 69,653,432 | 69,129,387 | 69,562,078 | 69,237,454 | | | |
Average shares outstanding assuming dilution | 70,037,609 | 69,693,693 | 69,978,210 | 69,858,133 | | | |
| | | | | | | |
Per Share Data: | | | | | | | |
Basic earnings per share | $0.18 | $0.26 | $0.36 | $0.48 | | | |
Diluted earnings per share | $0.17 | $0.26 | $0.36 | $0.47 | | | |
Cash dividends per share | $0.170 | $0.165 | $0.340 | $0.330 | | | |
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FIRST COMMONWEALTH FINANCIAL CORPORATION | | | | | | | |
CONSOLIDATED SELECTED FINANCIAL DATA | | | | | | | |
(Dollar Amounts in Thousands, except per share data) | | | | | | | |
| | | | | | | |
| JUNE 30, | DEC 31, | | | | | |
| 2006 | 2005 | | | | | |
Assets | | | | | | | |
Cash and due from banks on demand | $89,688 | $84,555 | | | | | |
Interest-bearing bank deposits | 905 | 473 | | | | | |
Federal funds sold | 0 | 1,575 | | | | | |
Securities available for sale, at market | 1,681,139 | 1,851,986 | | | | | |
Securities held to maturity, at amortized cost | | | | | | | |
(Market value $83,400 in 2006 and $89,804 in 2005) | 82,720 | 87,757 | | | | | |
| | | | | | | |
Loans held for sale | 4,436 | 1,276 | | | | | |
| | | | | | | |
Loans: | | | | | | | |
Portfolio loans | 3,680,070 | 3,623,102 | | | | | |
Unearned income | (83) | (119) | | | | | |
Allowance for credit losses | (39,020) | (39,492) | | | | | |
Net loans | 3,640,967 | 3,583,491 | | | | | |
| | | | | | | |
Premises and equipment | 63,832 | 60,860 | | | | | |
Other real estate owned | 1,930 | 1,655 | | | | | |
Goodwill | 122,702 | 122,702 | | | | | |
Amortizing intangibles, net | 14,120 | 15,251 | | | | | |
Other assets | 222,947 | 214,739 | | | | | |
Total assets | $5,925,386 | $6,026,320 | | | | | |
| | | | | | | |
Liabilities | | | | | | | |
Deposits (all domestic): | | | | | | | |
Noninterest-bearing | $507,021 | $491,644 | | | | | |
Interest-bearing | 3,491,784 | 3,504,908 | | | | | |
Total deposits | 3,998,805 | 3,996,552 | | | | | |
| | | | | | | |
Short-term borrowings | 654,315 | 665,665 | | | | | |
Other liabilities | 38,662 | 43,314 | | | | | |
| | | | | | | |
Subordinated debentures | 108,250 | 108,250 | | | | | |
Other long-term debt | 613,991 | 691,494 | | | | | |
| | | | | | | |
Total long-term debt | 722,241 | 799,744 | | | | | |
Total liabilities | 5,414,023 | 5,505,275 | | | | | |
| | | | | | | |
Shareholders' Equity | | | | | | | |
Common stock $1 par value per share | 71,978 | 71,978 | | | | | |
Additional paid-in capital | 172,707 | 173,967 | | | | | |
Retained earnings | 319,740 | 318,569 | | | | | |
Accumulated other comprehensive income (loss) | (23,515) | (9,655) | | | | | |
Treasury stock | (16,947) | (20,214) | | | | | |
Unearned ESOP shares | (12,600) | (13,600) | | | | | |
Total shareholders' equity | 511,363 | 521,045 | | | | | |
Total liabilities and shareholders' equity | $5,925,386 | $6,026,320 | | | | | |
| | | | | | | |
Shares issued | 71,978,568 | 71,978,568 | | | | | |
Shares outstanding | 70,636,584 | 70,377,916 | | | | | |
Treasury shares | 1,341,984 | 1,600,652 | | | | | |
Book value per share | $7.24 | $7.40 | | | | | |
Market value per share | $12.70 | $12.93 | | | | | |
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FIRST COMMONWEALTH FINANCIAL CORPORATION | | | | | | | |
CONSOLIDATED SELECTED FINANCIAL DATA | | | | | | | |
(Dollar Amounts in Thousands) | | | | | | | |
| | | | | | | |
| | | | | | | |
Quarter To Date Average Balance Sheets and | | | | | | | |
Net Interest Analysis At June 30, | | | | | | | |
| | 2006 | | | | 2005 | |
| Average Balance | Income/Expense | Yield or Rate (a) | | Average Balance | Income/Expense | Yield or Rate (a) |
Assets | | | | | | | |
Interest-earning assets: | | | | | | | |
Time deposits with banks | $813 | $10 | 5.10% | | $746 | $7 | 3.46% |
Tax free investment securities | 281,696 | 3,230 | 7.08% | | 277,395 | 3,129 | 6.96% |
Taxable investment securities | 1,501,812 | 17,953 | 4.79% | | 1,873,475 | 19,586 | 4.19% |
Federal funds sold | 1,098 | 13 | 4.81% | | 15,768 | 120 | 3.04% |
Loans, net of unearned income (b)(c)(d) | 3,650,617 | 60,487 | 6.85% | | 3,593,934 | 54,698 | 6.30% |
Total interest-earning assets | 5,436,036 | 81,693 | 6.29% | | 5,761,318 | 77,540 | 5.64% |
| | | | | | | |
Noninterest-earning assets: | | | | | | | |
Cash | 76,139 | | | | 81,091 | | |
Allowance for credit losses | (38,685) | | | | (41,419) | | |
Other assets | 436,011 | | | | 433,934 | | |
Total noninterest-earning assets | 473,465 | | | | 473,606 | | |
Total Assets | $5,909,501 | | | | $6,234,924 | | |
| | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | |
Interest-bearing liabilities: | | | | | | | |
Interest-bearing demand deposits (e) | $580,267 | $2,463 | 1.70% | | $560,321 | $1,150 | 0.82% |
Savings deposits (e) | 1,129,949 | 5,140 | 1.82% | | 1,341,923 | 4,892 | 1.46% |
Time deposits | 1,788,520 | 17,579 | 3.94% | | 1,607,808 | 13,037 | 3.25% |
Short-term borrowings | 594,735 | 6,622 | 4.47% | | 821,458 | 5,867 | 2.86% |
Long-term debt | 783,921 | 8,596 | 4.40% | | 859,624 | 8,954 | 4.18% |
Total interest-bearing liabilities | 4,877,392 | 40,400 | 3.32% | | 5,191,134 | 33,900 | 2.62% |
| | | | | | | |
Noninterest-bearing liabilities and capital: | | | | | | | |
Noninterest-bearing demand deposits (e) | 483,062 | | | | 487,724 | | |
Other liabilities | 26,941 | | | | 27,856 | | |
Shareholders' equity | 522,106 | | | | 528,210 | | |
Total noninterest-bearing funding sources | 1,032,109 | | | | 1,043,790 | | |
Total Liabilities and Shareholders' Equity | $5,909,501 | | | | $6,234,924 | | |
| | | | | | | |
Net Interest Income and Net Yield on Interest-Earning Assets | | $41,293 | 3.31% | | | $43,640 | 3.28% |
| | | | | | | |
(a) Yields on interest-earning assets have been computed on a tax equivalent basis using the 35% Federal income tax statutory rate. | | | |
(b) Average balance includes loans held for sale. | | | | | | | |
(c) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets. | | | |
(d) Loan income includes net loan fees. | | | | | | | |
(e) 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. | | | | | | | |
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FIRST COMMONWEALTH FINANCIAL CORPORATION | | | | | | | |
CONSOLIDATED SELECTED FINANCIAL DATA | | | | | | | |
(Dollar Amounts in Thousands) | | | | | | | |
| | | | | | | |
| | | | | | | |
Year To Date Average Balance Sheets and | | | | | | | |
Net Interest Analysis At June 30, | | | | | | | |
| | 2006 | | | | 2005 | |
| Average Balance | Income/Expense | Yield or Rate (a) | | Average Balance | Income/Expense | Yield or Rate (a) |
Assets | | | | | | | |
Interest-earning assets: | | | | | | | |
Time deposits with banks | $926 | $24 | 5.22% | | $854 | $14 | 3.25% |
Tax free investment securities | 281,187 | 6,449 | 7.12% | | 274,188 | 6,182 | 7.00% |
Taxable investment securities | 1,537,970 | 36,141 | 4.74% | | 1,898,552 | 39,568 | 4.20% |
Federal funds sold | 2,622 | 59 | 4.59% | | 8,255 | 124 | 3.02% |
Loans, net of unearned income (b)(c)(d) | 3,650,784 | 118,801 | 6.77% | | 3,568,436 | 107,289 | 6.25% |
Total interest-earning assets | 5,473,489 | 161,474 | 6.21% | | 5,750,285 | 153,177 | 5.61% |
| | | | | | | |
Noninterest-earning assets: | | | | | | | |
Cash | 76,968 | | | | 80,050 | | |
Allowance for credit losses | (39,479) | | | | (41,720) | | |
Other assets | 431,393 | | | | 428,366 | | |
Total noninterest-earning assets | 468,882 | | | | 466,696 | | |
Total Assets | $5,942,371 | | | | $6,216,981 | | |
| | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | |
Interest-bearing liabilities: | | | | | | | |
Interest-bearing demand deposits (e) | $569,245 | $4,376 | 1.55% | | $561,231 | $2,099 | 0.75% |
Savings deposits (e) | 1,154,828 | 10,122 | 1.77% | | 1,301,972 | 8,538 | 1.32% |
Time deposits | 1,781,022 | 34,068 | 3.86% | | 1,594,207 | 24,944 | 3.16% |
Short-term borrowings | 612,287 | 12,986 | 4.28% | | 868,478 | 11,425 | 2.65% |
Long-term debt | 790,405 | 17,182 | 4.38% | | 849,060 | 17,599 | 4.18% |
Total interest-bearing liabilities | 4,907,787 | 78,734 | 3.24% | | 5,174,948 | 64,605 | 2.52% |
| | | | | | | |
Noninterest-bearing liabilities and capital: | | | | | | | |
Noninterest-bearing demand deposits (e) | 481,904 | | | | 483,214 | | |
Other liabilities | 27,850 | | | | 26,017 | | |
Shareholders' equity | 524,830 | | | | 532,802 | | |
Total noninterest-bearing funding sources | 1,034,584 | | | | 1,042,033 | | |
Total Liabilities and Shareholders' Equity | $5,942,371 | | | | $6,216,981 | | |
| | | | | | | |
Net Interest Income and Net Yield on Interest-Earning Assets | | $82,740 | 3.31% | | | $88,572 | 3.34% |
| | | | | | | |
(a) Yields on interest-earning assets have been computed on a tax equivalent basis using the 35% Federal income tax statutory rate. | | | |
(b) Average balance includes loans held for sale. | | | | | | | |
(c) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets. | | | |
(d) Loan income includes net loan fees. | | | | | | | |
(e) 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. | | | | | | | |
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FIRST COMMONWEALTH FINANCIAL CORPORATION | | | | | | | |
CONSOLIDATED SELECTED FINANCIAL DATA | | | | | | | |
(Dollar Amounts in Thousands) | | | | | | | |
| | | | | | | |
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Asset Quality Data At June 30, | | | | | | | |
| 2006 | 2005 | | | | | |
Loans on nonaccrual basis | $14,785 | $11,149 | | | | | |
Past due more than 90 days | 15,928 | 15,258 | | | | | |
Renegotiated loans | 166 | 179 | | | | | |
Total nonperforming loans | $30,879 | $26,586 | | | | | |
Loans outstanding at end of period (a) | $3,684,423 | $3,601,314 | | | | | |
Average loans outstanding (year-to-date) (a) | $3,650,784 | $3,568,436 | | | | | |
Allowance for credit losses | $39,020 | $41,404 | | | | | |
Nonperforming loans as percent of total loans | 0.84% | 0.74% | | | | | |
Net charge-offs (year-to-date) | $4,291 | $4,403 | | | | | |
Reduction in allowance for credit losses due to transfer of | | | | | | | |
credit to held for sale | $1,387 | $0 | | | | | |
Net charge-offs as percent of average loans (annualized) | 0.31% | 0.25% | | | | | |
Allowance for credit losses as percent of average loans | | | | | | | |
outstanding | 1.07% | 1.16% | | | | | |
Allowance for credit losses as percent of nonperforming | | | | | | | |
loans | 126.36% | 155.74% | | | | | |
Other real estate owned | $1,930 | $1,226 | | | | | |
| | | | | | | |
(a) Includes loans held for sale | | | | | | | |
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Profitability Ratios | | | | | | | |
| For the Quarter Ended | For the 6 Months Ended | | | |
| June 30, | June 30, | | | |
| 2006 | 2005 | 2006 | 2005 | | | |
Return on average assets | 0.83% | 1.15% | 0.85% | 1.07% | | | |
Return on average equity | 9.39% | 13.55% | 9.67% | 12.51% | | | |
Efficiency ratio (FTE) (b) | 59.36% | 54.64% | 61.84% | 56.90% | | | |
Fully tax equivalent adjustment | $3,608 | $3,404 | $7,178 | $6,671 | | | |
| | | | | | | |
(b) Efficiency ratio is "total other expenses" as a percentage of total revenue. | | | |
Total revenue consists of "net interest income, on a fully tax-equivalent basis," plus "total other income." | | | |