Pennsylvania | 001-11138 | 25-1428528 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
601 Philadelphia Street, Indiana, PA | 15701 | |||
(Address of principal executive offices) | (Zip Code) |
■ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
■ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
■ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
■ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits |
99.1 | Press Release announcing Second Quarter 2013 Financial Results and Declaration of Quarterly Dividend. |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||
By: | /s/ Robert E. Rout | |||
Name: | Robert E. Rout | |||
Title: | Executive Vice President and Chief Financial Officer |
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||||||||||
Unaudited | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
SUMMARY RESULTS OF OPERATIONS | |||||||||||||||||||
Net interest income (FTE)(1) | $ | 46,728 | $ | 46,447 | $ | 48,008 | $ | 93,174 | $ | 97,395 | |||||||||
Provision for credit losses | 10,800 | 4,497 | 4,297 | 15,297 | 8,084 | ||||||||||||||
Noninterest income | 14,931 | 14,885 | 16,096 | 29,816 | 33,476 | ||||||||||||||
Noninterest expense | 41,998 | 41,454 | 41,848 | 83,452 | 88,600 | ||||||||||||||
Net income | 5,816 | 10,553 | 12,321 | 16,369 | 23,372 | ||||||||||||||
Earnings per common share (diluted) | $ | 0.06 | $ | 0.11 | $ | 0.12 | $ | 0.17 | $ | 0.22 | |||||||||
KEY FINANCIAL RATIOS | |||||||||||||||||||
Return on average assets | 0.38 | % | 0.71 | % | 0.83 | % | 0.54 | % | 0.79 | % | |||||||||
Return on average shareholders' equity | 3.16 | % | 5.73 | % | 6.41 | % | 4.45 | % | 6.11 | % | |||||||||
Efficiency ratio(2) | 68.12 | % | 67.59 | % | 65.28 | % | 67.86 | % | 67.70 | % | |||||||||
Net interest margin (FTE)(1) | 3.35 | % | 3.45 | % | 3.61 | % | 3.40 | % | 3.68 | % | |||||||||
Book value per common share | $ | 7.37 | $ | 7.53 | $ | 7.38 | |||||||||||||
Tangible book value per common share(4) | 5.69 | 5.90 | 5.82 | ||||||||||||||||
Market value per common share | 7.37 | 7.46 | 6.73 | ||||||||||||||||
Cash dividends declared per common share | 0.06 | 0.05 | 0.05 | $ | 0.11 | $ | 0.08 | ||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||
Allowance for credit losses as a percent of | |||||||||||||||||||
end-of-period loans | 1.36 | % | 1.48 | % | 1.48 | % | |||||||||||||
Allowance for credit losses as a percent of | |||||||||||||||||||
nonperforming loans | 78.60 | % | 79.54 | % | 72.61 | % | |||||||||||||
Nonperforming loans as a percent of | |||||||||||||||||||
end-of-period loans | 1.73 | % | 1.86 | % | 2.04 | % | |||||||||||||
Nonperforming assets as a percent of total assets | 1.45 | % | 1.47 | % | 1.76 | % | |||||||||||||
Net charge-offs as a percent of average loans | |||||||||||||||||||
(annualized) | 1.47 | % | 0.90 | % | 0.33 | % | |||||||||||||
CAPITAL RATIOS | |||||||||||||||||||
Shareholders' equity as a percent of total assets | 11.55 | % | 12.26 | % | 12.99 | % | |||||||||||||
Tangible common equity as a percent of | |||||||||||||||||||
tangible assets(3) | 9.16 | % | 9.87 | % | 10.54 | % | |||||||||||||
Leverage Ratio | 9.89 | % | 11.15 | % | 11.76 | % | |||||||||||||
Risk Based Capital - Tier I | 12.05 | % | 13.27 | % | 13.91 | % | |||||||||||||
Risk Based Capital - Total | 13.27 | % | 14.52 | % | 15.16 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||||||||||
CONSOLIDATED FINANCIAL DATA | ||||||||||||||||
Unaudited | ||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||
INCOME STATEMENT | ||||||||||||||||
Interest income | $ | 50,981 | $ | 51,761 | $ | 54,712 | $ | 102,742 | $ | 111,328 | ||||||
Interest expense | 5,283 | 6,343 | 7,794 | 11,626 | 16,240 | |||||||||||
Net Interest Income | 45,698 | 45,418 | 46,918 | 91,116 | 95,088 | |||||||||||
Taxable equivalent adjustment(1) | 1,030 | 1,029 | 1,090 | 2,058 | 2,307 | |||||||||||
Net Interest Income (FTE) | 46,728 | 46,447 | 48,008 | 93,174 | 97,395 | |||||||||||
Provision for credit losses | 10,800 | 4,497 | 4,297 | 15,297 | 8,084 | |||||||||||
Net Interest Income after Provision for Credit Losses (FTE) | 35,928 | 41,950 | 43,711 | 77,877 | 89,311 | |||||||||||
Changes in fair value on impaired securities | 2,841 | 1,864 | (1,323 | ) | 4,705 | 175 | ||||||||||
Non-credit related (gains) losses on securities not | ||||||||||||||||
expected to be sold (recognized in other | ||||||||||||||||
comprehensive income) | (2,841 | ) | (1,864 | ) | 1,323 | (4,705 | ) | (175 | ) | |||||||
Net Impairment Losses | — | — | — | — | — | |||||||||||
Net securities gains | 4 | 4 | — | 8 | — | |||||||||||
Trust income | 1,608 | 1,663 | 1,607 | 3,271 | 3,149 | |||||||||||
Service charges on deposit accounts | 3,815 | 3,401 | 3,737 | 7,216 | 7,239 | |||||||||||
Insurance and retail brokerage commissions | 1,384 | 1,417 | 1,670 | 2,801 | 3,094 | |||||||||||
Income from bank owned life insurance | 1,432 | 1,428 | 1,459 | 2,860 | 2,904 | |||||||||||
Gain on sale of assets | 425 | 275 | 1,444 | 700 | 3,559 | |||||||||||
Card related interchange income | 3,490 | 3,188 | 3,285 | 6,678 | 6,399 | |||||||||||
Other income | 2,773 | 3,509 | 2,894 | 6,282 | 7,132 | |||||||||||
Total Noninterest Income | 14,931 | 14,885 | 16,096 | 29,816 | 33,476 | |||||||||||
Salaries and employee benefits | 21,497 | 21,793 | 22,363 | 43,290 | 44,121 | |||||||||||
Net occupancy expense | 3,221 | 3,635 | 3,303 | 6,856 | 6,707 | |||||||||||
Furniture and equipment expense | 3,297 | 3,272 | 3,024 | 6,569 | 6,208 | |||||||||||
Data processing expense | 1,503 | 1,516 | 1,796 | 3,019 | 3,359 | |||||||||||
Pennsylvania shares tax expense | 1,517 | 1,190 | 1,510 | 2,707 | 2,693 | |||||||||||
Intangible amortization | 297 | 358 | 371 | 655 | 742 | |||||||||||
Collection and repossession expense | 851 | 1,151 | 670 | 2,002 | 3,369 | |||||||||||
Other professional fees and services | 948 | 969 | 940 | 1,917 | 2,139 | |||||||||||
FDIC insurance | 1,084 | 1,050 | 1,262 | 2,134 | 2,499 | |||||||||||
Loss on early redemption of subordinated debt | 1,629 | — | — | 1,629 | — | |||||||||||
Other operating expenses | 6,154 | 6,520 | 6,609 | 12,674 | 16,763 | |||||||||||
Total Noninterest Expense | 41,998 | 41,454 | 41,848 | 83,452 | 88,600 | |||||||||||
Income before Income Taxes | 8,861 | 15,381 | 17,959 | 24,241 | 34,187 | |||||||||||
Taxable equivalent adjustment(1) | 1,030 | 1,029 | 1,090 | 2,058 | 2,307 | |||||||||||
Income tax provision | 2,015 | 3,799 | 4,548 | 5,814 | 8,508 | |||||||||||
Net Income | $ | 5,816 | $ | 10,553 | $ | 12,321 | $ | 16,369 | $ | 23,372 | ||||||
Shares Outstanding at End of Period | 96,442,161 | 99,298,120 | 104,728,846 | 96,442,161 | 104,728,846 | |||||||||||
Average Shares Outstanding Assuming Dilution | 97,577,010 | 99,305,414 | 104,901,239 | 98,429,223 | 104,855,543 |
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||
Unaudited | |||||||||||
(dollars in thousands) | |||||||||||
June 30, | March 31, | June 30, | |||||||||
2013 | 2013 | 2012 | |||||||||
BALANCE SHEET (Period End) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 77,485 | $ | 53,991 | $ | 82,659 | |||||
Interest-bearing bank deposits | 4,497 | 1,780 | 3,839 | ||||||||
Securities | 1,340,600 | 1,325,560 | 1,195,118 | ||||||||
Loans | 4,229,752 | 4,218,810 | 4,159,531 | ||||||||
Allowance for credit losses | (57,452 | ) | (62,262 | ) | (61,676 | ) | |||||
Net loans | 4,172,300 | 4,156,548 | 4,097,855 | ||||||||
Goodwill and other intangibles | 161,677 | 161,973 | 163,057 | ||||||||
Other assets | 396,457 | 399,187 | 404,288 | ||||||||
Total Assets | $ | 6,153,016 | $ | 6,099,039 | $ | 5,946,816 | |||||
Liabilities and Shareholders' Equity | |||||||||||
Noninterest-bearing demand deposits | $ | 900,940 | $ | 883,307 | $ | 823,880 | |||||
Interest-bearing demand deposits | 101,505 | 90,276 | 98,937 | ||||||||
Savings deposits | 2,535,592 | 2,510,615 | 2,415,860 | ||||||||
Time deposits | 1,195,010 | 1,227,380 | 1,123,285 | ||||||||
Total interest-bearing deposits | 3,832,107 | 3,828,271 | 3,638,082 | ||||||||
Total deposits | 4,733,047 | 4,711,578 | 4,461,962 | ||||||||
Short-term borrowings | 441,848 | 308,100 | 474,264 | ||||||||
Long-term borrowings | 216,782 | 280,068 | 181,120 | ||||||||
Total borrowings | 658,630 | 588,168 | 655,384 | ||||||||
Other liabilities | 50,664 | 51,565 | 56,980 | ||||||||
Shareholders' equity | 710,675 | 747,728 | 772,490 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 6,153,016 | $ | 6,099,039 | $ | 5,946,816 | |||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
For the Three Months Ended | |||||||||||||||
June 30, | Yield/ | March 31, | Yield/ | June 30, | Yield/ | ||||||||||
2013 | Rate | 2013 | Rate | 2012 | Rate | ||||||||||
NET INTEREST MARGIN (Quarterly Averages) | |||||||||||||||
Assets | |||||||||||||||
Loans (FTE)(1) | $ | 4,262,773 | 4.20 | % | $ | 4,222,606 | 4.38 | % | $ | 4,144,470 | 4.61 | % | |||
Securities and interest bearing bank deposits (FTE)(1) | 1,330,752 | 2.22 | % | 1,238,020 | 2.34 | % | 1,210,889 | 2.76 | % | ||||||
Total Interest-Earning Assets (FTE)(1) | 5,593,525 | 3.73 | % | 5,460,626 | 3.92 | % | 5,355,359 | 4.19 | % | ||||||
Noninterest-earning assets | 577,818 | 569,277 | 589,888 | ||||||||||||
Total Assets | $ | 6,171,343 | $ | 6,029,903 | $ | 5,945,247 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||||
Interest-bearing demand and savings deposits | $ | 2,630,512 | 0.13 | % | $ | 2,606,695 | 0.15 | % | $ | 2,553,412 | 0.17 | % | |||
Time deposits | 1,216,403 | 1.05 | % | 1,141,576 | 1.14 | % | 1,165,009 | 1.58 | % | ||||||
Short-term borrowings | 445,249 | 0.26 | % | 355,912 | 0.25 | % | 422,361 | 0.27 | % | ||||||
Long-term borrowings | 221,310 | 1.79 | % | 280,152 | 2.80 | % | 183,890 | 4.09 | % | ||||||
Total Interest-Bearing Liabilities | 4,513,474 | 0.47 | % | 4,384,335 | 0.59 | % | 4,324,672 | 0.72 | % | ||||||
Noninterest-bearing deposits | 873,827 | 849,007 | 796,555 | ||||||||||||
Other liabilities | 46,847 | 49,295 | 50,724 | ||||||||||||
Shareholders' equity | 737,195 | 747,266 | 773,296 | ||||||||||||
Total Noninterest-Bearing Funding Sources | 1,657,869 | 1,645,568 | 1,620,575 | ||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,171,343 | $ | 6,029,903 | $ | 5,945,247 | |||||||||
Net Interest Margin (FTE) (annualized)(1) | 3.35 | % | 3.45 | % | 3.61 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | |
CONSOLIDATED FINANCIAL DATA | |
Unaudited | |
(dollars in thousands) | |
For the Six Months Ended | ||||||||||
June 30, | Yield/ | June 30, | Yield/ | |||||||
2013 | Rate | 2012 | Rate | |||||||
NET INTEREST MARGIN (Year-to-Date Averages) | ||||||||||
Assets | ||||||||||
Loans (FTE)(1) | $ | 4,242,800 | 4.29 | % | $ | 4,129,977 | 4.71 | % | ||
Securities and interest bearing bank deposits (FTE)(1) | 1,284,643 | 2.28 | % | 1,196,948 | 2.84 | % | ||||
Total Interest-Earning Assets (FTE)(1) | 5,527,443 | 3.82 | % | 5,326,925 | 4.29 | % | ||||
Noninterest-earning assets | 573,571 | 596,375 | ||||||||
Total Assets | $ | 6,101,014 | $ | 5,923,300 | ||||||
Liabilities and Shareholders' Equity | ||||||||||
Interest-bearing demand and savings deposits | $ | 2,618,669 | 0.14 | % | $ | 2,564,836 | 0.19 | % | ||
Time deposits | 1,179,196 | 1.09 | % | 1,184,338 | 1.60 | % | ||||
Short-term borrowings | 400,827 | 0.26 | % | 378,407 | 0.27 | % | ||||
Long-term borrowings | 250,569 | 2.35 | % | 195,614 | 3.95 | % | ||||
Total Interest-Bearing Liabilities | 4,449,261 | 0.53 | % | 4,323,195 | 0.76 | % | ||||
Noninterest-bearing deposits | 861,486 | 780,611 | ||||||||
Other liabilities | 48,064 | 50,519 | ||||||||
Shareholders' equity | 742,203 | 768,975 | ||||||||
Total Noninterest-Bearing Funding Sources | 1,651,753 | 1,600,105 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 6,101,014 | $ | 5,923,300 | ||||||
Net Interest Margin (FTE) (annualized)(1) | 3.40 | % | 3.68 | % | ||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||||||||||
CONSOLIDATED FINANCIAL DATA | ||||||||||||||||
Unaudited | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||
2013 | 2013 | 2012 | ||||||||||||||
ASSET QUALITY DETAIL | ||||||||||||||||
Nonperforming Loans: | ||||||||||||||||
Loans on nonaccrual basis | $ | 41,767 | $ | 31,576 | $ | 33,457 | ||||||||||
Troubled debt restructured loans on nonaccrual basis | 17,519 | 32,565 | 45,235 | |||||||||||||
Troubled debt restructured loans on accrual basis | 13,811 | 14,140 | 6,251 | |||||||||||||
Total Nonperforming Loans | $ | 73,097 | $ | 78,281 | $ | 84,943 | ||||||||||
Other real estate owned ("OREO") | 15,603 | 10,933 | 19,140 | |||||||||||||
Repossessions ("Repo") | 573 | 742 | 663 | |||||||||||||
Total Nonperforming Assets | $ | 89,273 | $ | 89,956 | $ | 104,746 | ||||||||||
Loans past due in excess of 90 days and still accruing | $ | 2,648 | $ | 3,927 | $ | 10,587 | ||||||||||
Criticized loans | 223,594 | 254,866 | 272,517 | |||||||||||||
Nonperforming assets as a percentage of total loans, | ||||||||||||||||
plus OREO and Repos | 2.10 | % | 2.13 | % | 2.51 | % | ||||||||||
Allowance for credit losses | $ | 57,452 | $ | 62,262 | $ | 61,676 | ||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Charge-offs (Recoveries): | ||||||||||||||||
Commercial, financial, agricultural and other | $ | 13,547 | $ | 410 | $ | 1,717 | $ | 13,957 | $ | 3,393 | ||||||
Real estate construction | 624 | 72 | 114 | 696 | 248 | |||||||||||
Commercial real estate | 683 | 8,447 | 278 | 9,130 | 355 | |||||||||||
Residential real estate | 232 | (401 | ) | 593 | (169 | ) | 2,172 | |||||||||
Loans to individuals | 524 | 894 | 651 | 1,418 | 1,474 | |||||||||||
Net Charge-offs | $ | 15,610 | $ | 9,422 | $ | 3,353 | $ | 25,032 | $ | 7,642 | ||||||
Net charge-offs as a percentage of average loans | ||||||||||||||||
outstanding (annualized) | 1.47 | % | 0.90 | % | 0.33 | % | 1.19 | % | 0.37 | % | ||||||
Provision for credit losses as a percentage of net | ||||||||||||||||
charge-offs | 69.19 | % | 47.73 | % | 128.15 | % | 61.11 | % | 105.78 | % | ||||||
Provision for credit losses | $ | 10,800 | $ | 4,497 | $ | 4,297 | $ | 15,297 | $ | 8,084 | ||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands, except per share data) |
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||
(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the 35% federal income tax | ||||||||||||
statutory rate. | ||||||||||||
(2) Efficiency ratio is "total noninterest expense" as a percentage of total revenue. Total revenue consists of "net interest | ||||||||||||
income, on a fully taxable equivalent basis," plus "total noninterest income," excluding "net impairment losses" and "net | ||||||||||||
securities gains." | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Tangible Equity: | ||||||||||||
Total shareholders' equity | $ | 710,675 | $ | 747,728 | $ | 772,490 | ||||||
Less: intangible assets | 161,677 | 161,973 | 163,057 | |||||||||
Tangible Equity | 548,998 | 585,755 | 609,433 | |||||||||
Less: preferred stock | — | — | — | |||||||||
Tangible Common Equity | $ | 548,998 | $ | 585,755 | $ | 609,433 | ||||||
Tangible Assets: | ||||||||||||
Total assets | $ | 6,153,016 | $ | 6,099,039 | $ | 5,946,816 | ||||||
Less: intangible assets | 161,677 | 161,973 | 163,057 | |||||||||
Tangible Assets | $ | 5,991,339 | $ | 5,937,066 | $ | 5,783,759 | ||||||
(3)Tangible Common Equity as a percentage of | ||||||||||||
Tangible Assets | 9.16 | % | 9.87 | % | 10.54 | % | ||||||
Shares Outstanding at End of Period | 96,442,161 | 99,298,120 | 104,728,846 | |||||||||
(4)Tangible Book Value Per Common Share | $ | 5.69 | $ | 5.90 | $ | 5.82 | ||||||
Note: Management believes that it is a standard practice in the banking industry to present these non-gaap measures. These | ||||||||||||
measures provide useful information to management and investors by allowing them to make peer comparisons. |