![]() Welcome! 2009 Annual Shareholder Meeting April 20, 2009 Exhibit 99.1 |
![]() Welcoming Remarks David S. Dahlmann Chairman of the Board First Commonwealth Financial Corporation |
![]() Business Meeting David R. Tomb, Jr., Esq. Secretary and Treasurer First Commonwealth Financial Corporation Election of Directors Incentive Compensation Plan |
![]() Chairman’s Message |
![]() Chairman’s Message Accountable Governance Strength & Stability |
![]() Chairman’s Message Strategic Direction & Execution Leadership & Accountability Accurate & Transparent Communication |
![]() Chairman’s Message Dividend Reduction Timing Change |
![]() CEO’s Address John J. Dolan President & CEO First Commonwealth Financial Corporation |
![]() CEO’s Address Executive Officers Thad Clements – EVP / Strategic Resources Ed Lipkus – EVP / CFO Len Lombardi – SVP / Chief Audit Executive Sue McMurdy – EVP / CIO John Previte – SVP / Investments Mike Price – President / First Commonwealth Bank Dave Tomb – SVP / Secretary & Treasurer |
![]() CEO’s Address Overview 2008 Environment 2008 Performance Critical Decisions |
![]() CEO’s Address 2008 Environment Market Volatility Unemployment Rate Real Estate Market in Turmoil Federal Bailouts Changes to Competitive Landscape Declining Consumer Confidence |
![]() CEO’s Address 2008 Performance Household Growth Core Net Income Growth Checking & Savings Growth Loan Portfolio Growth Improved Brand Recognition and Market Acceptance Stock Performance |
![]() Company Name Total Assets ($000) 1 Year 3 Year 5 Year Total Return (%) Total Return (%) Total Return (%) 1 WesBanco, Inc. (WSBC) 5,222,041 -2.46 -20.51 -7.88 2 Park National Corporation (PRK) 7,070,720 -16.47 -39.37 -36.28 3 First Commonwealth Financial Corp. (FCF) 6,425,880 -18.91 -28.23 -21.66 4 S&T Bancorp, Inc. (STBA) 4,438,368 -31.22 -34.87 -15.68 5 United Bankshares, Inc. (UBSI) 8,102,091 -32.03 -49.31 -32.49 6 Old National Bancorp (ONB) 7,873,890 -34.25 -39.58 -34.97 7 F.N.B. Corporation (FNB) 8,364,811 -46.96 -45.67 -53.70 8 Susquehanna Bancshares, Inc. (SUSQ) 13,682,988 -50.84 -57.47 -53.88 9 National Penn Bancshares, Inc. (NPBC) 9,403,431 -51.88 -52.99 -47.18 10 Harleysville National Corporation (HNBC) 5,490,509 -55.52 -67.56 -68.84 11 Irwin Financial Corporation (IFC) 4,914,315 -63.28 -89.32 -92.09 12 United Community Banks, Inc. (UCBI) 8,520,765 -74.71 -84.30 -80.98 13 Integra Bank Corporation (IBNK) 3,357,100 -87.95 -90.86 -90.80 14 AMCORE Financial, Inc. (AMFI) 5,059,824 -91.81 -94.44 -93.80 15 South Financial Group, Inc. (TSFG) 13,602,326 -92.42 -95.41 -95.76 Average 7,435,271 -50.05 -59.33 -55.07 Median 7,070,720 -50.84 -52.99 -53.70 FCF at December 31, 2008 23.31% 13.42% 10.38% Position within Peer at December 31, 2008 5 1 4 Total Return March 31, 2009 Executive Compensation Peer Group |
![]() CEO’s Address Critical Decisions Capital Raise TARP Decision Former National City Branches Dividend |
![]() CEO’s Address Dividend Challenges & Uncertainties Opportunities |
![]() CEO’s Address Challenges for 2009 and Beyond Market Volatility Accounting Rules FDIC Costs Economic Conditions Credit Quality |
![]() CEO’s Address Opportunities Households Branches Whole Banks |
![]() CEO’s Address Strength & Stability Well-capitalized Strong Liquidity Core Earnings Growth $3 Million in Expense Reductions |
![]() Executive Compensation Robert J. Ventura Chairman FCFC Executive Compensation Committee |
![]() Executive Compensation General Compensation Philosophy Attract and retain exceptional leaders Align management’s goals with shareholders’ interests |
![]() th Executive Compensation Base Salaries 50 percentile of peer group Peer group composition |
![]() Financial Performance Review FCF was above the median of peers for 1-Year TSR 1-Year Total Shareholder Return Growth First Commonwealth vs. Peer Group 12/31/2007 - 12/31/2008 23% -100% -80% -60% -40% -20% 0% 20% 40% 60% IBNK AMFI IFC TSFG UCBI SUSQ FNB NPBC HNBC PRK FCF UBSI ONB STBA WSBC |
![]() Executive Compensation Incentive Compensation Plans Annual incentive plan (short-term) Long-term incentive plan (rolling three-year period) |
![]() Executive Compensation Core Earnings vs. Reported Earnings Definition of core earnings Core earnings establish the engine for long-term growth |
![]() 2008 Annual Incentive Plan Actual 2007 Target 2008 Needed Change CEO EO's 40% 25% CORE EPS $0.62 $0.69 11.3% 40 20 CORE ROE 7.94% 9.1% 14.6% - 20 CORE REVENUE $(000,000's) 209.1 223.7 7.0% - 5 GROWTH IN HOUSEHOLDS * * * 80% 70% 20 30 INDIVIDUAL GOALS 100% 100% * - Not Disclosed Weight |
![]() Financial Performance Review FCF total shareholder return declined, approximating 25th percentile peer performance until a sharp upturn in June 2007 and at the end of 2008 exceeded 75th percentile performance and the other indices. Total Shareholder Return FCF vs. Peers & S&P Smallcap (S&P 600) and S&P 500 Financial Index 12/31/2003 - 12/31/2008 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 $160 $170 $180 Dec03 Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 75th %ile Median 25th %ile FCF S&P 500 Financial Index S&P 600 |
![]() Executive Compensation Annual Incentive Plan 2008 bonuses Same rules to apply in 2009 Trigger of $0.68 per share ELT has foregone 2009 bonuses |
![]() Executive Compensation Long-Term Incentive Plan Measures • Reported EPS • Reported ROE • At times, revenue growth, efficiency ratio, etc. Three concurrent plan periods Link management decisions to the creation of shareholder value |
![]() Executive Compensation Equity Plan Proposal being voted today Allows awards to be paid in stock instead of cash Ownership requirement for executives |
![]() Executive Compensation Risk Assessment Voluntarily undertaken by First Commonwealth |
![]() Executive Compensation Summary Balance components of the compensation plan Tool to attract and retain the right people Align management’s interests with shareholders’ interests Reinforce long-term strength and stability of the company |
![]() Questions & Answers |
![]() Results of Election David R. Tomb, Jr., Esq. Secretary and Treasurer |
![]() Thank You! 2009 Annual Shareholder Meeting April 20, 2009 |
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