Net Income Increases 12.4%; Growth in Commercial Loans and Net Interest
Income Continues
INDIANA, Pa., July 17 /PRNewswire-FirstCall/ -- First Commonwealth
Financial Corporation (NYSE: FCF), the holding company for First
Commonwealth Bank, announced today the financial results for the second
quarter of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030416/FIRSTLOGO )
Second Quarter Results
First Commonwealth reported second quarter 2008 net income of $12.9
million or $0.18 per diluted share compared to $11.5 million or $0.16 per
diluted share in the same period last year and $11.1 million or $0.15 for
the first quarter of 2008. Net income increased $1.4 million or 12.4% from
the comparable period last year primarily due to increases in net interest
income and non-interest income, partly offset by a larger provision for
credit losses, higher non-interest expense and an increased provision for
income taxes. Compared to the first quarter of 2008, net income increased
$1.8 million or 16.1% mainly due to increased net interest income partly
offset by an increase in the provision for credit losses and a decrease in
non-interest income. Second quarter return on average equity and average
assets increased to 9.03% and 0.84%, respectively, compared to 8.00% and
0.79% for the prior year period and 7.73% and 0.75% for the first quarter
of 2008.
Developments during the second quarter included:
-- Total loans increased 11.9% and commercial loans increased 27.6%
year over year.
-- Net interest income increased 17.8% year over year.
-- Net interest margin, on a tax equivalent basis, improved 23 basis
points year over year.
"I am pleased with the positive financial results First Commonwealth
experienced this quarter and for the first six months of 2008," said John
J. Dolan, President and CEO. "Overall, we are seeing the continuation of
momentum that began during the first quarter of 2008 across all of our
lines of business, which gives us reason to be optimistic about the
continued growth of our core banking business during the balance of 2008.
Our client-centric focus of becoming 'First Choice' in our market place has
contributed to balance sheet and revenue growth during these challenging
economic conditions."
Net Interest Income and Margin
Net interest income increased $5.8 million, or 14.2% from the first
quarter of 2008, representing four consecutive quarters of growth.
Additionally, net interest income increased $7.1 million, or 17.8% compared
to the second quarter of 2007. This improvement is primarily due to
increased levels of interest earning assets, particularly in commercial
loans. Total loans increased $438.7 million, or 11.9% year over year and
increased $220.2 million, or 5.7% compared to the prior quarter. Investment
securities increased $55.9 million, or 3.7% year over year and decreased
$106.4 million, or 6.3% compared to the prior quarter.
The net interest margin on a tax equivalent basis for the second
quarter 2008 increased 23 basis points to 3.54% compared with 3.31% in the
corresponding period last year and increased 26 basis points from the first
quarter of 2008. The cost of our interest-bearing liabilities declined
faster than our yield on total interest-earning assets in both comparisons.
Net loan prepayment fees of $1.6 million were recorded in the second
quarter of 2008, which had a positive effect on the net interest margin of
12 basis points. Average noninterest-bearing demand deposits increased
$24.6 million, or 4.8% in the second quarter of 2008 compared to the same
period last year which additionally had a favorable effect on the net
interest margin.
Average interest-earning assets were $407.7 million higher in the
second quarter of 2008 compared to the second quarter of 2007 driven by an
increase in average loans of $355.5 million and an increase in average
investment securities of $52.2 million. Average interest-earning assets
increased $206.0 million, or 3.8% over the first quarter of 2008 due to an
average increase of $212.6 million in loans while average investment
securities remained relatively flat. Average borrowings increased $455.2
million in the second quarter of 2008 compared to the same period in 2007
and increased $253.1 million compared to the first quarter of 2008
primarily to fund growth in interest-earning assets.
Non-Interest Income
Excluding net security gains and losses, non-interest income in the
second quarter of 2008 increased $1.3 million, or 10.5% from the same
period last year and increased $585 thousand, or 4.5% from the first
quarter of 2008. Including net security gains and losses, non-interest
income for the second quarter of 2008 increased $688 thousand, or 5.5%,
from the second quarter of 2007 and decreased $367 thousand, or 2.7% from
the first quarter of 2008. The increase in the year to year comparison was
primarily due to higher insurance commissions, greater service charges on
deposits and increased card related interchange income. Higher sales,
additional producers and an enhanced calling program resulted in increased
insurance commissions. Service charges on deposit accounts increased as a
result of increased activity and accounts. Card related interchange income
increased primarily due to increased usage in debit cards.
In the second quarter of 2008, $541 thousand in write-downs for other
than temporary impairment were recorded on equity securities issued by two
financial institutions. These losses are reflected in net security gains
and losses.
Non-Interest Expense
Non-interest expense for the second quarter of 2008 increased $2.0
million, or 5.4%, compared to the second quarter of 2007 and remained flat
from the first quarter of 2008.
During the second quarter of 2008, salaries and employee benefits
increased $1.8 million, or 9.9% from the comparable period in 2007,
primarily due to the rise in compensation related to the growth in loans,
insurance sales and net income and annual merit increases.
Income Tax
The provision for income taxes increased $1.4 million for the second
quarter of 2008 compared to the same period in 2007. First Commonwealth's
effective tax rate was 18.1% in the second quarter of 2008 compared to
11.2% in the same period in 2007 and 11.1% in the first quarter of 2008.
Nontaxable income and tax credits had a smaller impact on the effective tax
rate due to increases in pretax income.
Credit Quality and Provision for Credit Losses
First Commonwealth is not a participant or underwriter in the sub-prime
mortgage loan or sub-prime collateralized debt marketplace and therefore
does not have any direct 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 June 30, 2008, non-accrual loans increased
approximately $2.1 million from the first quarter of 2008 due mainly to an
addition of one $5.0 million commercial loan, partly offset by the
successful workout of several smaller credits. The $5.0 million loan is a
construction loan that is collateralized with real estate. Non-accrual
loans increased $3.2 million to $50.9 million at June 30, 2008 compared to
$47.7 million at June 30, 2007. Included in this amount is a $30.0 million
commercial credit relationship that has been monitored since the second
quarter of 2006 and was placed on non-accrual during the second quarter of
2007. This credit is collateralized by real estate and equipment and a
reserve has been allocated, primarily during 2006, to cover the expected
losses. The payment of principal and interest on this credit has been
deferred pursuant to a loan forbearance agreement that will expire during
the third quarter of 2008. Management continues to monitor the borrower
closely and is presently evaluating options with respect to the collection
or resolution of this credit.
Loans past due in excess of 90 days and still accruing at June 30, 2008
increased $352 thousand to $14.2 million compared to June 30, 2007 but
decreased $5.9 million from March 31, 2008. The decrease for the current
quarter is primarily related to the aforementioned $5.0 million commercial
loan moving into non-accrual loans. The provision for credit losses for the
second quarter of 2008 increased $2.9 million compared to the second
quarter of 2007 and increased $2.2 million from the first quarter this
year. The increase was mainly due to growth in the portfolio as well as the
addition of the aforementioned $5.0 million commercial loan to non-accrual
loans.
Management believes that the allowance for credit losses is at a level
deemed sufficient to absorb losses inherent in the loan portfolio at June
30, 2008.
Year-to-Date Results
For the six months ended June 30, 2008, First Commonwealth recorded net
income of $24.0 million, a 7.4% increase, compared to the $22.4 million
reported for the same period of 2007. On a per share basis, year-to-date
net income was $0.33 per diluted share compared to $0.31 per diluted share
for the first half of 2007. Return on average equity and average assets
increased to 8.38% and 0.79%, respectively, compared to 7.82% and 0.77% for
the first six months of 2007.
Net interest income for the six months ended June 30, 2008 was 8.5%
higher than the comparable period last year, reflecting growth in average
loans of 6.1%. The net interest margin for the first half of 2008 increased
to 3.41% from 3.34% for the same period in 2007 as the cost of
interest-bearing liabilities declined faster than the yield on total
interest-earning assets. Net loan prepayment fees of $1.6 million recorded
in 2008 had a positive effect on the net interest margin of five basis
points.
Non-interest income for the six months ending June 30, 2008 increased
$2.7 million, or 11.4%, from the same period last year primarily from the
$1.1 million rise in insurance commissions and the $1.2 million increase in
other income. The growth in insurance commissions was the result of higher
sales driven by additional producers and an enhanced calling program. Other
income increased due to the growth in letter of credit fees and swap fees.
Non-interest expense year-to-date June 30, 2008 increased $3.1 million,
or 4.1%, from the comparable period in 2007 due to the $1.9 million growth
in salaries and employee benefits and the $884 thousand increase in net
occupancy expense. Salaries and employee benefits increased primarily as a
result of higher compensation related to the loan growth, greater insurance
sales and higher net income, as well as annual merit increases. The
increase in net occupancy expense was the result of higher rental expense
and building repairs and maintenance.
The provision for income taxes for the six months ended June 30, 2008
increased $1.8 million from the same period last year due to the $3.4
million rise in income before income taxes. The Company's effective tax
rate was 15.0% in the first six months of 2008 compared to 10.0% in the
same period in 2007. In 2008, nontaxable income and tax credits had a
smaller impact on the effective tax rate due to an increase in pretax
income of $3.4 million.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $6.3 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.
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, expectations of continued growth and the impact of recent
organizational changes and strategic initiatives on future results.
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, 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.
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
(dollars in thousands, except share data)
For the Quarter Ended
June March December September June
30, 31, 31, 30, 30,
2008 2008 2007 2007 2007
Interest Income
Interest and
fees on
loans $62,614 $62,067 $63,488 $63,737 $62,813
Interest and
dividends on
investments:
Taxable
interest 15,578 15,531 14,967 14,259 14,889
Interest
exempt from
Federal income
taxes 3,347 3,595 3,510 3,424 3,427
Dividends 678 609 752 753 720
Interest on
Federal
funds sold 2 0 74 57 2
Interest on
bank deposits 2 5 8 8 10
Total interest
income 82,221 81,807 82,799 82,238 81,861
Interest Expense
Interest on
deposits 25,370 31,033 34,527 33,786 32,872
Interest on
short-term
borrowings 4,251 3,705 1,819 1,977 2,700
Interest on
subordinated
debentures 1,878 1,911 2,156 2,130 2,123
Interest on
other long-
term debt 3,791 4,074 4,139 4,211 4,327
Total interest
on long-term
debt 5,669 5,985 6,295 6,341 6,450
Total
interest
expense 35,290 40,723 42,641 42,104 42,022
Net Interest
Income 46,931 41,084 40,158 40,134 39,839
Provision
for credit
losses 5,361 3,179 2,352 2,296 2,415
Net Interest
Income after
provision
for credit
losses 41,570 37,905 37,806 37,838 37,424
Non-Interest Income
Net securities
(losses)
gains (451) 501 403 16 150
Trust
income 1,538 1,532 1,428 1,517 1,518
Service
charges on
deposit
accounts 4,786 4,425 4,690 4,609 4,517
Insurance
commissions 1,394 1,277 909 1,064 857
Income from
bank owned
life
insurance 1,446 1,487 1,557 1,534 1,520
Card related
interchange
income 1,950 1,753 1,791 1,654 1,634
Other income 2,426 2,481 2,052 1,819 2,205
Total non-
interest
income 13,089 13,456 12,830 12,213 12,401
Non-Interest Expense
Salaries and
employee
benefits 20,428 20,330 18,859 18,401 18,588
Net
occupancy
expense 3,728 3,907 3,484 3,475 3,398
Furniture
and
equipment
expense 3,058 3,078 3,126 3,243 2,914
Advertising
expense 401 628 957 475 340
Data
processing
expense 996 1,051 987 942 925
Pennsylvania
shares
tax expense 1,339 1,271 1,446 1,439 1,415
Intangible
amortization 832 831 831 857 870
Other
expenses 8,103 7,760 7,185 7,648 8,433
Total
non-
interest
expense 38,885 38,856 36,875 36,480 36,883
Income before
income taxes 15,774 12,505 13,761 13,571 12,942
Provision
for
income
taxes 2,861 1,384 2,113 1,352 1,454
Net Income $12,913 $11,121 $11,648 $12,219 $11,488
Average
Shares
Outstanding 72,624,053 72,452,875 72,391,577 72,589,329 73,180,532
Average
Shares
Outstanding
Assuming
Dilution 72,734,711 72,559,668 72,513,962 72,705,753 73,314,997
Per Share Data:
Basic
Earnings
Per Share $0.18 $0.15 $0.16 $0.17 $0.16
Diluted
Earnings
Per Share $0.18 $0.15 $0.16 $0.17 $0.16
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)
For the Six Months Ended
June 30, June 30,
2008 2007
Interest Income
Interest and fees on loans $124,681 $126,726
Interest and dividends on investments:
Taxable interest 31,109 31,034
Interest exempt from Federal income taxes 6,942 6,798
Dividends 1,287 1,453
Interest on Federal funds sold 2 26
Interest on bank deposits 7 21
Total interest income 164,028 166,058
Interest Expense
Interest on deposits 56,403 64,457
Interest on short-term borrowings 7,956 7,646
Interest on subordinated debentures 3,789 4,240
Interest on other long-term debt 7,865 8,625
Total interest on long-term debt 11,654 12,865
Total interest expense 76,013 84,968
Net Interest Income 88,015 81,090
Provision for credit losses 8,540 5,394
Net Interest Income after
provision for credit losses 79,475 75,696
Non-Interest Income
Net securities (losses) gains 50 755
Trust income 3,070 2,936
Service charges on deposit accounts 9,211 8,682
Insurance commissions 2,671 1,587
Income from bank owned life insurance 2,933 3,010
Card related interchange income 3,703 3,119
Other income 4,907 3,738
Total non-interest income 26,545 23,827
Non-Interest Expense
Salaries and employee benefits 40,758 38,872
Net occupancy expense 7,635 6,751
Furniture and equipment expense 6,136 5,631
Advertising expense 1,029 1,435
Data processing expense 2,047 1,879
Pennsylvania shares tax expense 2,610 2,884
Intangible amortization 1,663 1,740
Other expenses 15,863 15,460
Total non-interest expense 77,741 74,652
Income before income taxes 28,279 24,871
Provision for income taxes 4,245 2,488
Net Income $24,034 $22,383
Average Shares Outstanding 72,538,464 73,147,362
Average Shares Outstanding Assuming Dilution 72,647,190 73,342,684
Per Share Data:
Basic Earnings Per Share $0.33 $0.31
Diluted Earnings Per Share $0.33 $0.31
Cash Dividends Declared per Common Share $0.34 $0.34
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
(dollars in thousands, except share data)
June March December September June
30, 31, 31, 30, 30,
2008 2008 2007 2007 2007
Assets
Cash and due
from banks $101,860 $92,554 $100,791 $86,499 $92,407
Interest-bearing
bank deposits 347 219 1,719 1,060 1,310
Securities
available
for sale, at
market value 1,524,106 1,623,788 1,574,217 1,460,909 1,451,019
Securities held
to maturity, at
amortized cost,
(Market value
$59,562 at June 30,
2008 and $72,928
at December 31,
2007) 59,200 65,935 71,497 73,024 76,366
Loans:
Portfolio loans,
net of unearned
income 4,113,423 3,893,183 3,697,819 3,660,123 3,674,688
Allowance for
credit losses (44,505) (41,613) (42,396) (43,210) (43,968)
Net loans 4,068,918 3,851,570 3,655,423 3,616,913 3,630,720
Premises and
equipment, net 69,890 69,191 69,487 70,133 70,567
Other real estate
owned 3,271 3,280 2,172 1,803 1,241
Goodwill 159,956 159,956 159,956 159,956 160,755
Amortizing
intangibles,
net 11,778 12,609 13,441 14,272 15,129
Other assets 252,086 239,877 234,915 237,527 235,674
Total assets $6,251,412 $6,118,979 $5,883,618 $5,722,096 $5,735,188
Liabilities
Deposits (all domestic):
Noninterest-
bearing $568,158 $542,331 $523,203 $522,810 $530,063
Interest-
bearing 3,744,311 3,778,337 3,824,016 3,811,133 3,877,708
Total deposits 4,312,469 4,320,668 4,347,219 4,333,943 4,407,771
Short-term
borrowings 834,226 642,869 354,201 237,734 147,346
Other
liabilities 47,805 48,259 65,464 44,156 43,807
Subordinated
debentures 105,750 105,750 105,750 108,250 108,250
Other long-
term debt 404,464 426,955 442,196 435,781 467,856
Total long-
term debt 510,214 532,705 547,946 544,031 576,106
Total
liabilities 5,704,714 5,544,501 5,314,830 5,159,864 5,175,030
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,
75,100,431 shares
issued and 73,280,415
shares outstanding
at June 30, 2008;
100,000,000 shares
authorized, 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 206,245 206,498 206,889 207,310 207,553
Retained
earnings 317,611 317,058 319,246 319,472 319,677
Accumulated
other
comprehensive
(loss) income,
net (22,604) 7,215 (147) (6,736) (15,417)
Treasury stock
(1,820,016 and
1,971,819 shares
at June 30,
2008 and December
31, 2007,
respectively,
at cost) (21,054) (22,293) (22,700) (22,814) (16,155)
Unearned ESOP
shares (8,600) (9,100) (9,600) (10,100) (10,600)
Total
shareholders'
equity 546,698 574,478 568,788 562,232 560,158
Total
liabilities
and
shareholders'
equity $6,251,412 $6,118,979 $5,883,618 $5,722,096 $5,735,188
Book value
per share $7.46 $7.85 $7.78 $7.69 $7.59
Market
value
per share $9.33 $11.59 $10.65 $11.06 $10.92
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Loans by Categories
(dollars in thousands)
June March December September June
30, 31, 31, 30, 30,
2008 2008 2007 2007 2007
Commercial,
financial,
agricultural
and other $1,115,536 $1,052,971 $926,904 $901,679 $866,590
Real estate -
construction 307,278 241,114 207,708 143,680 123,844
Real estate -
residential 1,235,334 1,230,928 1,237,986 1,268,313 1,288,089
Real estate -
commercial 988,186 909,613 861,077 865,389 899,669
Loans to
individuals 467,089 458,557 464,082 480,926 496,191
Leases, net of
unearned income 0 0 62 136 305
Total loans
and leases,
net of
unearned
income $4,113,423 $3,893,183 $3,697,819 $3,660,123 $3,674,688
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Quarter To Date Average Balance Sheets
and Net Interest Analysis at June 30,
(dollars in thousands)
2008 2007
Average Income/ Yield or Average Income/ Yield or
Balance Expense Rate(a) Balance Expense Rate(a)
Assets
Interest-earning assets:
Interest-bearing
deposits with
banks $349 $2 2.05% $557 $10 7.62%
Tax-free
investment
securities 300,631 3,347 6.89% 304,420 3,427 6.95%
Taxable
investment
securities 1,334,118 16,256 4.90% 1,278,179 15,609 4.90%
Federal
funds sold 286 2 2.53% 74 2 5.30%
Loans, net
of unearned
income
(b)(c) 4,048,141 62,614 6.35% 3,692,625 62,813 7.03%
Total
interest-
earning
assets 5,683,525 82,221 6.04% 5,275,855 81,861 6.51%
Noninterest-
earning assets:
Cash 74,860 84,120
Allowance for
credit losses (42,011) (44,067)
Other assets 498,205 491,596
Total
noninterest-
earning
assets 531,054 531,649
Total
Assets $6,214,579 $5,807,504
Liabilities and
Shareholders'
Equity
Interest-bearing
liabilities:
Interest-
bearing
demand
deposits(d) $609,977 $1,241 0.82% $602,948 $2,705 1.80%
Savings
deposits(d) 1,130,583 4,149 1.48% 1,132,360 6,474 2.29%
Time
deposits 2,027,373 19,980 3.96% 2,106,084 23,693 4.51%
Short-term
borrowings 775,183 4,251 2.21% 263,559 2,700 4.11%
Long-term debt 520,733 5,669 4.38% 577,178 6,450 4.48%
Total
interest-
bearing
lia-
bilities 5,063,849 35,290 2.80% 4,682,129 42,022 3.60%
Noninterest-
bearing liabilities
and capital:
Noninterest-
bearing demand
deposits (d) 541,752 517,111
Other
liabilities 34,017 32,335
Shareholders'
equity 574,961 575,929
Total
noninterest-
bearing
funding
sources 1,150,730 1,125,375
Total
Liabilities
and Share-
holders'
Equity $6,214,579 $5,807,504
Net Interest
Income and
Net Yield on
Interest-
Earning
Assets $46,931 3.54% $39,839 3.31%
(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 for regulatory purposes.
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Year To Date Average Balance Sheets and
Net Interest Analysis at June 30,
(dollars in thousands)
2008 2007
Average Income/ Yield or Average Income/ Yield or
Balance Expense Rate(a) Balance Expense Rate (a)
Assets
Interest-earning assets:
Interest-bearing
deposits
with banks $448 $7 3.06% $590 $21 7.17%
Tax-free
investment
securities 310,411 6,942 6.92% 302,235 6,798 6.98%
Taxable
investment
securities 1,327,618 32,396 4.91% 1,329,255 32,487 4.93%
Federal
funds sold 164 2 2.57% 967 26 5.30%
Loans, net of
unearned
income
(b)(c) 3,941,864 124,681 6.51% 3,714,927 126,726 7.09%
Total
interest-
earning
assets 5,580,505 164,028 6.15% 5,347,974 166,058 6.54%
Noninterest-earning assets:
Cash 74,360 83,609
Allowance
for credit
losses (42,185) (43,696)
Other assets 492,876 488,804
Total
noninterest-
earning
assets 525,051 528,717
Total
Assets $6,105,556 $5,876,691
Liabilities
and
Shareholders'
Equity
Interest-
bearing
liabilities:
Interest-
bearing
demand
deposits (d) $591,549 $2,988 1.02% $592,811 $5,276 1.79%
Savings
deposits (d) 1,109,822 9,497 1.72% 1,127,468 12,554 2.25%
Time
deposits 2,095,883 43,918 4.21% 2,108,210 46,627 4.46%
Short-
term
borrowings 634,479 7,956 2.52% 350,367 7,646 4.40%
Long-term
debt 534,874 11,654 4.38% 579,223 12,865 4.48%
Total
interest-
bearing
liabilities 4,966,607 76,013 3.08% 4,758,079 84,968 3.60%
Noninterest-
bearing
liabilities
and capital:
Noninterest-
bearing
demand
deposits (d) 525,951 510,332
Other
liabilities 36,037 31,187
Shareholders'
equity 576,961 577,093
Total
noninterest-
bearing
funding
sources 1,138,949 1,118,612
Total
Liabilities
and
Shareholders'
Equity $6,105,556 $5,876,691
Net Interest
Income and
Net Yield on
Interest-
Earning
Assets $88,015 3.41% $81,090 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) 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)
June March December September June
30, 31, 31, 30, 30,
2008 2008 2007 2007 2007
Loans on non-accrual
basis $50,910 $48,799 $54,119 $50,161 $47,738
Troubled debt
restructured
loans 139 143 147 150 154
Total nonperforming
loans $51,049 $48,942 $54,266 $50,311 $47,892
Loans past due in
excess of 90 days
and still
accruing $14,210 $20,066 $12,853 $13,677 $13,858
Loans outstanding
at end of period $4,113,423 $3,893,183 $3,697,819 $3,660,123 $3,674,688
Average loans
outstanding $3,941,864 $3,835,587 $3,687,037 $3,694,124 $3,714,927
Allowance for
credit losses $44,505 $41,613 $42,396 $43,210 $43,968
Nonperforming loans
as a percentage of
total loans 1.24% 1.26% 1.47% 1.37% 1.30%
Provision for credit
losses $8,540 $3,179 $10,042 $7,690 $5,394
Net credit losses $6,431 $3,962 $10,294 $7,128 $4,074
Net credit losses
as a percentage
of average loans
outstanding (annualized)0.33% 0.42% 0.28% 0.26% 0.22%
Allowance for credit
losses as a percentage
of average loans
outstanding 1.13% 1.08% 1.15% 1.17% 1.18%
Allowance for credit
losses as a percentage
of nonperforming
loans 87.18% 85.03% 78.13% 85.89% 91.81%
Other real estate
owned $3,271 $3,280 $2,172 $1,803 $1,241
Profitability Ratios
(dollars in thousands)
For the Quarter Ended For the Six
Months Ended
June March Dec. Sept. June June June
30, 31, 31, 30, 30, 30, 30,
2008 2008 2007 2007 2007 2008 2007
Return on
average assets 0.84% 0.75% 0.80% 0.85% 0.79% 0.79% 0.77%
Return on
average equity 9.03% 7.73% 8.08% 8.59% 8.00% 8.38% 7.82%
Net interest
margin (a) 3.54% 3.28% 3.32% 3.36% 3.31% 3.41% 3.34%
Efficiency
ratio (b) 61.63% 66.78% 65.15% 65.17% 65.88% 64.10% 66.43%
Fully tax
equivalent
adjustment $3,078 $3,648 $3,614 $3,633 $3,745 $6,726 $7,460
(a) Net interest margin has been computed on a tax equivalent basis
using the 35% Federal income tax statutory rate.
(b) 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."
SOURCE First Commonwealth Financial Corporation
back to top
