Exhibit 99.1
*** NEWS RELEASE ***
TO: | All Area News Agencies | For More Information Contact: | ||||
FROM: | First Commonwealth | Edward J. Lipkus III, Executive Vice | ||||
Financial Corporation | President and Chief Financial Officer | |||||
First Commonwealth Financial Corporation (724) 349-7220 | ||||||
DATE: | April 17, 2008 | |||||
First Commonwealth Announces First Quarter 2008 Financial Results
Net Income Increases;
Commercial Loans and Non-Interest Income Increase
Indiana, PA., April 17, 2008 - First Commonwealth Financial Corporation (NYSE: FCF), the holding company for First Commonwealth Bank, announced today the financial results for the first quarter of 2008.
First Quarter Results
First Commonwealth reported first quarter 2008 net income of $11.1 million or $0.15 per diluted share compared to $10.9 million or $0.15 per diluted share in the same period last year and $11.6 million or $0.16 per diluted share for the fourth quarter of 2007. Net income increased $226 thousand or 2.1% from the comparable period last year primarily due to an increase in non-interest income, partly offset by a decline in net interest income, a larger provision for credit losses and higher non-interest expense. Compared to the fourth quarter of 2007, net income decreased $527 thousand, or 4.5%, mainly due to higher non-interest expense and provision for credit losses partly offset by increased net interest income and a lower tax provision. First quarter return on average equity and average assets increased to 7.73% and 0.75%, respectively, compared to 7.64% and 0.74% for the prior year period and 8.08% and 0.80% for the fourth quarter of 2007.
Developments during the first quarter include:
• | Total loan and significant commercial loan growth year over year. |
• | Significant non-interest income growth year over year. |
• | A new location opened in the Pittsburgh market (Squirrel Hill). |
• | Announced the hiring of J. Eric Renner as Executive Vice President / Consumer Services for First Commonwealth Bank. |
1
“I am excited about the positive financial results First Commonwealth experienced this quarter,” said John J. Dolan, President and CEO. “The effort expended in 2007 to align the structure of our organization and to re-commit the company to being responsive to our clients’ needs is beginning to produce favorable results. Our client-centric focus of becoming ‘First Choice’ in our marketplace has resulted in increased revenue growth.”
Net Interest Income and Margin
Net interest income was up $926 thousand, or 2.3%, from the fourth quarter of 2007 and has increased now for the last three quarters. This improvement in net interest income is primarily due to increased levels of interest earning assets during these periods. We experienced strong loan growth in the last two quarters, mainly in commercial loans. Total loans increased $189.7 million, or 5.1%, year over year and increased $195.4 million, or 5.3%, compared to the prior quarter. Investment securities increased $54.4 million, or 3.3%, year over year and increased $44.0 million, or 2.7%, compared to the prior quarter.
The Federal Reserve Bank cut short-term interest rates 100 basis points in 2007 and 200 basis points in the first quarter of 2008. Despite these reductions, net interest margin on a tax equivalent basis for the first quarter 2008 only decreased eight basis points, or 0.08%, to 3.28%, compared with 3.36% in the corresponding period last year and declined four basis points, or 0.04%, from the fourth quarter of 2007. Our yield on total interest-earning assets declined faster than the cost of our interest-bearing liabilities in the year-to-year comparison. For the first quarter of 2008, the ratio of noninterest-bearing funding sources as a percentage of interest-earning assets decreased over the fourth quarter of 2007 providing additional pressure on the net interest margin.
Average interest-earning assets were $56.6 million higher in the first quarter of 2008 compared to the first quarter of 2007 driven by an increase in average loans of $98.1 million, partly offset by a decrease in average investment securities of $39.6 million. Average interest-earning assets increased $244.1 million, or 4.7%, over the fourth quarter of 2007 due to an average increase of $169.6 million in loans and $81.2 million in investment securities. Average borrowings increased $23.4 million in the first quarter of 2008 compared to the same period in 2007 and increased $288.5 million compared to the fourth quarter of 2007 primarily to fund growth in interest-earning assets.
Non-Interest Income
Non-interest income for the first quarter of 2008 increased $2.0 million, or 17.8%, from the first quarter of 2007 and increased $626 thousand, or 4.9%, from the fourth quarter of 2007, primarily due to higher insurance commissions and increases in other income. Higher sales, additional producers and an enhanced calling program resulted in increased insurance commissions. Other income increased primarily due to increased letter of credit fees and swap fees.
2
Non-Interest Expense
Non-interest expense for the first quarter of 2008 increased $1.1 million, or 2.9%, compared to the first quarter of 2007 and increased $2.0 million, or 5.4%, from the fourth quarter of 2007.
During the first quarter of 2008, salaries and employee benefits remained flat compared to the first quarter of 2007. The first quarter of 2007 included expenses of $746 thousand relating to a separation agreement with the company’s former CEO. Net occupancy expense increased $554 thousand, or 16.5%, due to branch expansion and higher building repairs and maintenance costs. Advertising expense decreased $467 thousand, or 42.6%, due to increased branding efforts in the first quarter of 2007 while other expenses increased $733 thousand, or 10.4%, primarily due to increased contributions, professional fees, collection fees and operational losses.
When compared to the fourth quarter of 2007, salaries and employee benefits increased $1.5 million, or 7.8%, due to annual merit salary increases and lower employer-related costs in the fourth quarter due to the yearly cap on payroll taxes, principally unemployment insurance. The remainder of the increase in non-interest expense was the result of the changes mentioned above.
Income Tax
Income tax expense increased $350 thousand for the first quarter of 2008 compared to the same period in 2007. First Commonwealth’s effective tax rate was 11.1% in the first quarter of 2008 compared to 8.7% in the same period in 2007 and 15.4% in the fourth quarter of 2007. Nontaxable income and tax credits had a smaller impact on the effective tax rate in the first quarter of 2008 due to a $576 thousand increase in pretax income compared to the same period last year. The decrease in the effective tax rate from the fourth quarter of 2007 was the result of nontaxable income and tax credits having a larger impact in the first quarter of 2008 in addition to a $336 thousand charge in the fourth quarter of 2007 to record the tax effect of purchase accounting adjustments related to prior acquisitions.
Credit Quality and Provision for Credit Losses
First Commonwealth is not a participant or underwriter in the sub-prime mortgage loan or collateralized debt marketplace and therefore does not have any exposure to risks associated with these activities. All mortgage backed securities in First Commonwealth’s portfolio are AAA rated and backed by U.S. Government agencies.
For the quarter ending March 31, 2008, non-accrual loans decreased approximately $5.3 million from the fourth quarter of 2007 due to the successful workout of commercial credits including the $4.3 million commercial credit relationship that was placed on non-accrual in the fourth quarter of 2007. Non-accrual loans increased $36.1 million to $48.8 million at March 31, 2008 compared to $12.7 million at March 31, 2007, mainly due to a $30.0 million commercial credit relationship placed on non-accrual during the second quarter of 2007. This credit relationship has been monitored since the second quarter of 2006 when management disclosed that this credit had experienced deterioration. This credit is collateralized by real estate and equipment and a reserve has been allocated, primarily during 2006, to cover the expected losses.
3
As previously disclosed, First Commonwealth purchased $7.0 million in loans from Equipment Finance, LLC (“EFI”), a division of Sterling Financial Corporation of Lancaster, Pennsylvania (“Sterling”) during 2006. Sterling subsequently disclosed an investigation, which is still ongoing, into financial irregularities related to certain financing contracts at EFI. Loans in this portfolio are collateralized by equipment and reserves were allocated in the second quarter of 2007 to cover the expected losses. At March 31, 2008, the remaining balance in the portfolio was $4.1 million, of which $3.0 million was classified as non-accrual. No EFI loans were reclassified by First Commonwealth as non-accrual during the first quarter of 2008. PNC Financial Services Group, Inc. finalized the acquisition of Sterling on April 4, 2008.
Loans past due in excess of 90 days and still accruing increased $6.4 million to $20.1 million compared to March 31, 2007. The majority of this increase is related to one commercial loan that management believes is adequately collateralized by real estate. The provision for credit losses for the first quarter of 2008 increased $200 thousand compared to the first quarter of 2007. While First Commonwealth experienced payoffs on loans that carried specific allocated reserves that resulted in an improvement in credit quality, additional provisions were warranted due to the growth in the commercial portfolio.
Management believes that the allowance for credit losses is at a level deemed sufficient to absorb losses inherent in the loan portfolio at March 31, 2008.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $6.1 billion bank 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.
Earnings Conference Call to be Held Thursday, April 17, 2008
An earnings conference call will be held on Thursday, April 17, 2008 at 2:00 p.m. local time to discuss financial results for the quarter ended March 31, 2008. The call will be hosted by John J. Dolan, President and Chief Executive Officer. He will be joined by Edward J. Lipkus, Executive Vice President and Chief Financial Officer and T. Michael Price, President of First Commonwealth Bank.
To listen to the conference call, go to First Commonwealth’s webpagehttp://www.fcbanking.com, click on “Investor Relations” and then on the “Webcast” link and follow the instructions. After the live presentation, the webcast will be archived on this website for 30 days.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the adequacy of First Commonwealth’s allowance for credit losses, improvements in commercial loan balances and quality and the impact of recent organizational changes and strategic initiatives on future results. Forward-looking
4
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, which could increase credit-related losses and expenses and/or limit growth; |
• | increases in defaults by borrowers and other delinquencies, which could result in an increased provision for credit losses on loans and related expenses; |
• | fluctuations in interest rates and market prices, which could reduce net interest margin and asset valuations and increase expenses; |
• | changes in legislative or regulatory requirements applicable to First Commonwealth and its subsidiaries, which could increase costs, limit certain operations and adversely affect results of operations; |
• | the inability to successfully execute First Commonwealth’s strategic growth initiatives, which could limit future revenue and earnings growth; and |
• | 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. |
5
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
(dollars in thousands, except share data)
For the Quarter Ended | |||||||||||||||
March 31, 2008 | December 31, 2007 | September 30, 2007 | June 30, 2007 | March 31, 2007 | |||||||||||
Interest Income | |||||||||||||||
Interest and fees on loans | $ | 62,067 | $ | 63,488 | $ | 63,737 | $ | 62,813 | $ | 63,913 | |||||
Interest and dividends on investments: | |||||||||||||||
Taxable interest | 15,531 | 14,967 | 14,259 | 14,889 | 16,145 | ||||||||||
Interest exempt from Federal income taxes | 3,595 | 3,510 | 3,424 | 3,427 | 3,371 | ||||||||||
Dividends | 609 | 752 | 753 | 720 | 733 | ||||||||||
Interest on Federal funds sold | 0 | 74 | 57 | 2 | 24 | ||||||||||
Interest on bank deposits | 5 | 8 | 8 | 10 | 11 | ||||||||||
Total interest income | 81,807 | 82,799 | 82,238 | 81,861 | 84,197 | ||||||||||
Interest Expense | |||||||||||||||
Interest on deposits | 31,033 | 34,527 | 33,786 | 32,872 | 31,585 | ||||||||||
Interest on short-term borrowings | 3,705 | 1,819 | 1,977 | 2,700 | 4,946 | ||||||||||
Interest on subordinated debentures | 1,911 | 2,156 | 2,130 | 2,123 | 2,117 | ||||||||||
Interest on other long-term debt | 4,074 | 4,139 | 4,211 | 4,327 | 4,298 | ||||||||||
Total interest on long-term debt | 5,985 | 6,295 | 6,341 | 6,450 | 6,415 | ||||||||||
Total interest expense | 40,723 | 42,641 | 42,104 | 42,022 | 42,946 | ||||||||||
Net Interest Income | 41,084 | 40,158 | 40,134 | 39,839 | 41,251 | ||||||||||
Provision for credit losses | 3,179 | 2,352 | 2,296 | 2,415 | 2,979 | ||||||||||
Net Interest Income after provision for credit losses | 37,905 | 37,806 | 37,838 | 37,424 | 38,272 | ||||||||||
Non-Interest Income | |||||||||||||||
Net securities gains | 501 | 403 | 16 | 150 | 605 | ||||||||||
Trust income | 1,532 | 1,428 | 1,517 | 1,518 | 1,418 | ||||||||||
Service charges on deposit accounts | 4,425 | 4,690 | 4,609 | 4,517 | 4,165 | ||||||||||
Insurance commissions | 1,277 | 909 | 1,064 | 857 | 730 | ||||||||||
Income from bank owned life insurance | 1,487 | 1,557 | 1,534 | 1,520 | 1,490 | ||||||||||
Card related interchange income | 1,753 | 1,791 | 1,654 | 1,634 | 1,485 | ||||||||||
Other income | 2,481 | 2,052 | 1,819 | 2,205 | 1,533 | ||||||||||
Total non-interest income | 13,456 | 12,830 | 12,213 | 12,401 | 11,426 | ||||||||||
Non-Interest Expense | |||||||||||||||
Salaries and employee benefits | 20,330 | 18,859 | 18,401 | 18,588 | 20,284 | ||||||||||
Net occupancy expense | 3,907 | 3,484 | 3,475 | 3,398 | 3,353 | ||||||||||
Furniture and equipment expense | 3,078 | 3,126 | 3,243 | 2,914 | 2,717 | ||||||||||
Advertising expense | 628 | 957 | 475 | 340 | 1,095 | ||||||||||
Data processing expense | 1,051 | 987 | 942 | 925 | 954 | ||||||||||
Pennsylvania shares tax expense | 1,271 | 1,446 | 1,439 | 1,415 | 1,469 | ||||||||||
Intangible amortization | 831 | 831 | 857 | 870 | 870 | ||||||||||
Other expenses | 7,760 | 7,185 | 7,648 | 8,433 | 7,027 | ||||||||||
Total non-interest expense | 38,856 | 36,875 | 36,480 | 36,883 | 37,769 | ||||||||||
Income before income taxes | 12,505 | 13,761 | 13,571 | 12,942 | 11,929 | ||||||||||
Applicable income taxes | 1,384 | 2,113 | 1,352 | 1,454 | 1,034 | ||||||||||
Net Income | $ | 11,121 | $ | 11,648 | $ | 12,219 | $ | 11,488 | $ | 10,895 | |||||
Average Shares Outstanding | 72,452,875 | 72,391,577 | 72,589,329 | 73,180,532 | 73,113,823 | ||||||||||
Average Shares Outstanding Assuming Dilution | 72,559,668 | 72,513,962 | 72,705,753 | 73,314,997 | 73,370,678 | ||||||||||
Per Share Data: | |||||||||||||||
Basic Earnings Per Share | $ | 0.15 | $ | 0.16 | $ | 0.17 | $ | 0.16 | $ | 0.15 | |||||
Diluted Earnings Per Share | $ | 0.15 | $ | 0.16 | $ | 0.17 | $ | 0.16 | $ | 0.15 | |||||
Cash Dividends Declared per Common Share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 |
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
(dollars in thousands, except share data)
March 31, 2008 | December 31, 2007 | September 30, 2007 | June 30, 2007 | March 31, 2007 | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 92,554 | $ | 100,791 | $ | 86,499 | $ | 92,407 | $ | 84,137 | ||||||||||
Interest-bearing bank deposits | 219 | 1,719 | 1,060 | 1,310 | 463 | |||||||||||||||
Securities available for sale, at market value | 1,623,788 | 1,574,217 | 1,460,909 | 1,451,019 | 1,557,247 | |||||||||||||||
Securities held to maturity, at amortized cost, (Market value $67,451 at March 31, 2008 and $72,928 at December 31, 2007) | 65,935 | 71,497 | 73,024 | 76,366 | 78,092 | |||||||||||||||
Loans: | ||||||||||||||||||||
Portfolio loans | 3,893,202 | 3,697,843 | 3,660,153 | 3,674,725 | 3,703,545 | |||||||||||||||
Unearned income | (19 | ) | (24 | ) | (30 | ) | (37 | ) | (47 | ) | ||||||||||
Allowance for credit losses | (41,613 | ) | (42,396 | ) | (43,210 | ) | (43,968 | ) | (43,379 | ) | ||||||||||
Net loans | 3,851,570 | 3,655,423 | 3,616,913 | 3,630,720 | 3,660,119 | |||||||||||||||
Premises and equipment, net | 69,191 | 69,487 | 70,133 | 70,567 | 70,916 | |||||||||||||||
Other real estate owned | 3,280 | 2,172 | 1,803 | 1,241 | 1,663 | |||||||||||||||
Goodwill | 159,956 | 159,956 | 159,956 | 160,755 | 160,759 | |||||||||||||||
Amortizing intangibles, net | 12,609 | 13,441 | 14,272 | 15,129 | 15,999 | |||||||||||||||
Other assets | 239,877 | 234,915 | 237,527 | 235,674 | 231,817 | |||||||||||||||
Total assets | $ | 6,118,979 | $ | 5,883,618 | $ | 5,722,096 | $ | 5,735,188 | $ | 5,861,212 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits (all domestic): | ||||||||||||||||||||
Noninterest-bearing | $ | 542,331 | $ | 523,203 | $ | 522,810 | $ | 530,063 | $ | 525,387 | ||||||||||
Interest-bearing | 3,778,337 | 3,824,016 | 3,811,133 | 3,877,708 | 3,830,000 | |||||||||||||||
Total deposits | 4,320,668 | 4,347,219 | 4,333,943 | 4,407,771 | 4,355,387 | |||||||||||||||
Short-term borrowings | 642,869 | 354,201 | 237,734 | 147,346 | 309,895 | |||||||||||||||
Other liabilities | 48,259 | 65,464 | 44,156 | 43,807 | 45,318 | |||||||||||||||
Subordinated debentures | 105,750 | 105,750 | 108,250 | 108,250 | 108,250 | |||||||||||||||
Other long-term debt | 426,955 | 442,196 | 435,781 | 467,856 | 470,032 | |||||||||||||||
Total long-term debt | 532,705 | 547,946 | 544,031 | 576,106 | 578,282 | |||||||||||||||
Total liabilities | 5,544,501 | 5,314,830 | 5,159,864 | 5,175,030 | 5,288,882 | |||||||||||||||
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, 100,000,000 shares authorized; 75,100,431 shares issued and 73,161,726 shares outstanding at March 31, 2008; 75,100,431 shares issued and 73,128,612 shares outstanding at December 31, 2007 | 75,100 | 75,100 | 75,100 | 75,100 | 75,100 | |||||||||||||||
Additional paid-in capital | 206,498 | 206,889 | 207,310 | 207,553 | 207,958 | |||||||||||||||
Retained earnings | 317,058 | 319,246 | 319,472 | 319,677 | 320,734 | |||||||||||||||
Accumulated other comprehensive income (loss), net | 7,215 | (147 | ) | (6,736 | ) | (15,417 | ) | (6,224 | ) | |||||||||||
Treasury stock (1,938,705 and 1,971,819 shares at March 31, 2008 and December 31, 2007, respectively, at cost) | (22,293 | ) | (22,700 | ) | (22,814 | ) | (16,155 | ) | (14,138 | ) | ||||||||||
Unearned ESOP shares | (9,100 | ) | (9,600 | ) | (10,100 | ) | (10,600 | ) | (11,100 | ) | ||||||||||
Total shareholders’ equity | 574,478 | 568,788 | 562,232 | 560,158 | 572,330 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,118,979 | $ | 5,883,618 | $ | 5,722,096 | $ | 5,735,188 | $ | 5,861,212 | ||||||||||
Book value per share | $ | 7.85 | $ | 7.78 | $ | 7.69 | $ | 7.59 | $ | 7.74 | ||||||||||
Market value per share | $ | 11.59 | $ | 10.65 | $ | 11.06 | $ | 10.92 | $ | 11.75 |
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Loans by Categories
(dollars in thousands)
March 31, 2008 | December 31, 2007 | September 30, 2007 | June 30, 2007 | March 31, 2007 | ||||||||||||||||
Commercial, financial, agricultural and other | $ | 1,052,971 | $ | 926,904 | $ | 901,679 | $ | 866,590 | $ | 854,843 | ||||||||||
Real estate - construction | 241,114 | 207,708 | 143,680 | 123,844 | 101,719 | |||||||||||||||
Real estate - residential | 1,230,928 | 1,237,986 | 1,268,313 | 1,288,089 | 1,312,389 | |||||||||||||||
Real estate - commercial | 909,613 | 861,077 | 865,389 | 899,669 | 914,389 | |||||||||||||||
Loans to individuals | 458,576 | 464,106 | 480,956 | 496,228 | 519,711 | |||||||||||||||
Leases, net of unearned income | 0 | 62 | 136 | 305 | 494 | |||||||||||||||
Gross loans and leases | 3,893,202 | 3,697,843 | 3,660,153 | 3,674,725 | 3,703,545 | |||||||||||||||
Unearned income | (19 | ) | (24 | ) | (30 | ) | (37 | ) | (47 | ) | ||||||||||
Total loans and leases net of unearned income | $ | 3,893,183 | $ | 3,697,819 | $ | 3,660,123 | $ | 3,674,688 | $ | 3,703,498 | ||||||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Quarter To Date Average Balance Sheets and Net Interest Analysis at March 31,
(dollars in thousands)
2008 | 2007 | |||||||||||||||||||
Average Balance | Income/Expense | Yield or Rate (a) | Average Balance | Income/Expense | Yield or Rate (a) | |||||||||||||||
Assets | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Interest-bearing deposits with banks | $ | 546 | $ | 5 | 3.71 | % | $ | 622 | $ | 11 | 6.75 | % | ||||||||
Tax-free investment securities | 320,191 | 3,595 | 6.95 | % | 300,025 | 3,371 | 7.01 | % | ||||||||||||
Taxable investment securities | 1,321,117 | 16,140 | 4.91 | % | 1,380,899 | 16,878 | 4.96 | % | ||||||||||||
Federal funds sold | 43 | 0 | 2.86 | % | 1,871 | 24 | 5.30 | % | ||||||||||||
Loans, net of unearned income (b)(c) | 3,835,587 | 62,067 | 6.69 | % | 3,737,477 | 63,913 | 7.14 | % | ||||||||||||
Total interest-earning assets | 5,477,484 | 81,807 | 6.27 | % | 5,420,894 | 84,197 | 6.58 | % | ||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||
Cash | 73,860 | 83,093 | ||||||||||||||||||
Allowance for credit losses | (42,358 | ) | (43,321 | ) | ||||||||||||||||
Other assets | 487,546 | 485,980 | ||||||||||||||||||
Total noninterest-earning assets | 519,048 | 525,752 | ||||||||||||||||||
Total Assets | $ | 5,996,532 | $ | 5,946,646 | ||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing demand deposits (d) | $ | 573,121 | $ | 1,747 | 1.23 | % | $ | 582,560 | $ | 2,571 | 1.79 | % | ||||||||
Savings deposits (d) | 1,089,059 | 5,348 | 1.98 | % | 1,122,522 | 6,081 | 2.20 | % | ||||||||||||
Time deposits | 2,164,394 | 23,938 | 4.45 | % | 2,110,361 | 22,933 | 4.41 | % | ||||||||||||
Short-term borrowings | 493,776 | 3,705 | 3.02 | % | 438,139 | 4,946 | 4.58 | % | ||||||||||||
Long-term debt | 549,016 | 5,985 | 4.38 | % | 581,290 | 6,415 | 4.48 | % | ||||||||||||
Total interest-bearing liabilities | 4,869,366 | 40,723 | 3.36 | % | 4,834,872 | 42,946 | 3.60 | % | ||||||||||||
Noninterest-bearing liabilities and capital: | ||||||||||||||||||||
Noninterest-bearing demand deposits (d) | 510,150 | 503,477 | ||||||||||||||||||
Other liabilities | 38,054 | 30,027 | ||||||||||||||||||
Shareholders’ equity | 578,962 | 578,270 | ||||||||||||||||||
Total noninterest-bearing funding sources | 1,127,166 | 1,111,774 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 5,996,532 | $ | 5,946,646 | ||||||||||||||||
Net Interest Income and Net Yield on Interest-Earning Assets | $ | 41,084 | 3.28 | % | $ | 41,251 | 3.36 | % | ||||||||||||
(a) | Yields on interest-earning assets have been computed on a tax 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 forregulatory purposes. |
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Asset Quality Data
(dollars in thousands)
March 31, 2008 | December 31, 2007 | September 30, 2007 | June 30, 2007 | March 31, 2007 | ||||||||||||||||
Loans on non-accrual basis | $ | 48,799 | $ | 54,119 | $ | 50,161 | $ | 47,738 | $ | 12,746 | ||||||||||
Troubled debt restructured loans | 143 | 147 | 150 | 154 | 157 | |||||||||||||||
Total nonperforming loans | $ | 48,942 | $ | 54,266 | $ | 50,311 | $ | 47,892 | $ | 12,903 | ||||||||||
Loans past due in excess of 90 days and still accruing | $ | 20,066 | $ | 12,853 | $ | 13,677 | $ | 13,858 | $ | 13,644 | ||||||||||
Loans outstanding at end of period | $ | 3,893,183 | $ | 3,697,819 | $ | 3,660,123 | $ | 3,674,688 | $ | 3,703,498 | ||||||||||
Average loans outstanding | $ | 3,835,587 | $ | 3,687,037 | $ | 3,694,124 | $ | 3,714,927 | $ | 3,737,477 | ||||||||||
Allowance for credit losses | $ | 41,613 | $ | 42,396 | $ | 43,210 | $ | 43,968 | $ | 43,379 | ||||||||||
Nonperforming loans as a percentage of total loans | 1.26 | % | 1.47 | % | 1.37 | % | 1.30 | % | 0.35 | % | ||||||||||
Provision for credit losses | $ | 3,179 | $ | 10,042 | $ | 7,690 | $ | 5,394 | $ | 2,979 | ||||||||||
Net credit losses | $ | 3,962 | $ | 10,294 | $ | 7,128 | $ | 4,074 | $ | 2,248 | ||||||||||
Net credit losses as a percentage of average loans outstanding (annualized) | 0.42 | % | 0.28 | % | 0.26 | % | 0.22 | % | 0.24 | % | ||||||||||
Allowance for credit losses as a percentage of average loans outstanding | 1.08 | % | 1.15 | % | 1.17 | % | 1.18 | % | 1.16 | % | ||||||||||
Allowance for credit losses as a percentage of nonperforming loans | 85.03 | % | 78.13 | % | 85.89 | % | 91.81 | % | 336.19 | % | ||||||||||
Other real estate owned | $ | 3,280 | $ | 2,172 | $ | 1,803 | $ | 1,241 | $ | 1,663 | ||||||||||
Profitability Ratios (dollars in thousands) |
| |||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
March 31, 2008 | December 31, 2007 | September 30, 2007 | June 30, 2007 | March 31, 2007 | ||||||||||||||||
Return on average assets | 0.75 | % | 0.80 | % | 0.85 | % | 0.79 | % | 0.74 | % | ||||||||||
Return on average equity | 7.73 | % | 8.08 | % | 8.59 | % | 8.00 | % | 7.64 | % | ||||||||||
Net interest margin | 3.28 | % | 3.32 | % | 3.36 | % | 3.31 | % | 3.36 | % | ||||||||||
Efficiency ratio (a) | 66.78 | % | 65.15 | % | 65.17 | % | 65.88 | % | 66.98 | % | ||||||||||
Fully tax equivalent adjustment | $ | 3,648 | $ | 3,614 | $ | 3,633 | $ | 3,745 | $ | 3,715 |
(a) | Efficiency ratio is “total non-interest expense” as a percentage of total revenue. |
Total revenue consists of “net interest income, on a fully tax-equivalent basis,” plus “total non-interest income.”