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) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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 Fourth Quarter and Full-Year 2013 Financial Results and Declaration of Increased 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 Years Ended | |||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||
SUMMARY RESULTS OF OPERATIONS | ||||||||||||||||
Net interest income (FTE)(1) | $ | 47,303 | $ | 48,255 | $ | 48,223 | $ | 188,732 | $ | 193,321 | ||||||
Provision for credit losses | 1,216 | 2,714 | 5,706 | 19,227 | 20,544 | |||||||||||
Noninterest income | 13,264 | 17,083 | 14,103 | 60,163 | 65,434 | |||||||||||
Noninterest expense | 45,327 | 40,045 | 43,842 | 168,824 | 177,207 | |||||||||||
Net income | 9,259 | 15,854 | 8,735 | 41,482 | 41,954 | |||||||||||
Earnings per common share (diluted) | $ | 0.10 | $ | 0.16 | $ | 0.09 | $ | 0.43 | $ | 0.40 | ||||||
KEY FINANCIAL RATIOS | ||||||||||||||||
Return on average assets | 0.60 | % | 1.02 | % | 0.58 | % | 0.68 | % | 0.71 | % | ||||||
Return on average shareholders' equity | 5.14 | % | 8.83 | % | 4.55 | % | 5.70 | % | 5.46 | % | ||||||
Efficiency ratio(2) | 73.15 | % | 61.50 | % | 70.38 | % | 67.52 | % | 68.54 | % | ||||||
Net interest margin (FTE)(1) | 3.35 | % | 3.43 | % | 3.57 | % | 3.39 | % | 3.61 | % | ||||||
Book value per common share | $ | 7.47 | $ | 7.45 | $ | 7.49 | ||||||||||
Tangible book value per common share(4) | 5.78 | 5.76 | 5.86 | |||||||||||||
Market value per common share | 8.82 | 7.59 | 6.82 | |||||||||||||
Cash dividends declared per common | ||||||||||||||||
share | 0.06 | 0.06 | 0.05 | $ | 0.23 | $ | 0.18 | |||||||||
ASSET QUALITY RATIOS | ||||||||||||||||
Allowance for credit losses as a percent of | ||||||||||||||||
end-of-period loans | 1.27 | % | 1.30 | % | 1.60 | % | ||||||||||
Allowance for credit losses as a percent of | ||||||||||||||||
nonperforming loans | 91.31 | % | 77.17 | % | 62.47 | % | ||||||||||
Nonperforming loans as a percent of | ||||||||||||||||
end-of-period loans | 1.39 | % | 1.68 | % | 2.56 | % | ||||||||||
Nonperforming assets as a percent of total | ||||||||||||||||
assets | 1.15 | % | 1.33 | % | 1.99 | % | ||||||||||
Net charge-offs as a percent of average | ||||||||||||||||
loans (annualized) | 0.18 | % | 0.49 | % | 0.25 | % | ||||||||||
CAPITAL RATIOS | ||||||||||||||||
Shareholders' equity as a percent of | ||||||||||||||||
total assets | 11.45 | % | 11.56 | % | 12.44 | % | ||||||||||
Tangible common equity as a percent of | ||||||||||||||||
tangible assets(3) | 9.09 | % | 9.18 | % | 10.01 | % | ||||||||||
Leverage Ratio | 10.00 | % | 9.84 | % | 11.24 | % | ||||||||||
Risk Based Capital - Tier I | 12.10 | % | 12.04 | % | 13.28 | % | ||||||||||
Risk Based Capital - Total | 13.26 | % | 13.22 | % | 14.53 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||||||
Unaudited | |||||||||||||||
(dollars in thousands, except share data) | |||||||||||||||
For the Three Months Ended | For the Years Ended | ||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||
INCOME STATEMENT | |||||||||||||||
Interest income | $ | 51,308 | $ | 52,308 | $ | 53,867 | $ | 206,358 | $ | 219,075 | |||||
Interest expense | 5,002 | 5,079 | 6,676 | 21,707 | 30,146 | ||||||||||
Net Interest Income | 46,306 | 47,229 | 47,191 | 184,651 | 188,929 | ||||||||||
Taxable equivalent adjustment(1) | 997 | 1,026 | 1,032 | 4,081 | 4,392 | ||||||||||
Net Interest Income (FTE) | 47,303 | 48,255 | 48,223 | 188,732 | 193,321 | ||||||||||
Provision for credit losses | 1,216 | 2,714 | 5,706 | 19,227 | 20,544 | ||||||||||
Net Interest Income after Provision | |||||||||||||||
for Credit Losses (FTE) | 46,087 | 45,541 | 42,517 | 169,505 | 172,777 | ||||||||||
Changes in fair value on impaired securities | 4,851 | 236 | 644 | 9,792 | 2,193 | ||||||||||
Non-credit related gains on securities not | |||||||||||||||
expected to be sold (recognized in other | |||||||||||||||
comprehensive income) | (4,851 | ) | (236 | ) | (644 | ) | (9,792 | ) | (2,193 | ) | |||||
Net Impairment Losses | — | — | — | — | — | ||||||||||
Net securities (losses) gains | (1,395 | ) | 229 | 29 | (1,158 | ) | 192 | ||||||||
Trust income | 1,489 | 1,406 | 1,426 | 6,166 | 6,206 | ||||||||||
Service charges on deposit accounts | 4,209 | 4,227 | 3,768 | 15,652 | 14,743 | ||||||||||
Insurance and retail brokerage commissions | 1,382 | 1,822 | 1,334 | 6,005 | 6,272 | ||||||||||
Income from bank owned life insurance | 1,320 | 1,359 | 1,481 | 5,539 | 5,850 | ||||||||||
Gain on sale of assets | 97 | 1,356 | 291 | 2,153 | 4,607 | ||||||||||
Card related interchange income | 3,532 | 3,536 | 3,540 | 13,746 | 13,199 | ||||||||||
Other income | 2,630 | 3,148 | 2,234 | 12,060 | 14,365 | ||||||||||
Total Noninterest Income | 13,264 | 17,083 | 14,103 | 60,163 | 65,434 | ||||||||||
Salaries and employee benefits | 21,724 | 20,998 | 20,668 | 86,012 | 86,069 | ||||||||||
Net occupancy expense | 3,477 | 3,274 | 3,313 | 13,607 | 13,255 | ||||||||||
Furniture and equipment expense(5) | 5,255 | 3,294 | 3,134 | 15,118 | 12,460 | ||||||||||
Data processing expense | 1,498 | 1,492 | 1,708 | 6,009 | 7,054 | ||||||||||
Pennsylvania shares tax expense | 1,415 | 1,516 | 1,503 | 5,638 | 5,706 | ||||||||||
Intangible amortization | 216 | 193 | 358 | 1,064 | 1,467 | ||||||||||
Collection and repossession expense | 974 | 860 | 1,106 | 3,836 | 5,756 | ||||||||||
Other professional fees and services | 966 | 848 | 1,162 | 3,731 | 4,329 | ||||||||||
FDIC insurance | 1,054 | 1,178 | 1,275 | 4,366 | 5,032 | ||||||||||
Loss on sale or write-down of assets | 45 | 479 | 3,179 | 1,054 | 7,394 | ||||||||||
Operational losses | 325 | 238 | 334 | 1,115 | 4,367 | ||||||||||
Loss on redemption of subordinated debt | — | — | — | 1,629 | — | ||||||||||
Conversion related expenses | 2,523 | 65 | — | 2,588 | — | ||||||||||
Other operating expenses | 5,855 | 5,610 | 6,102 | 23,057 | 24,318 | ||||||||||
Total Noninterest Expense | 45,327 | 40,045 | 43,842 | 168,824 | 177,207 | ||||||||||
Income before Income Taxes | 14,024 | 22,579 | 12,778 | 60,844 | 61,004 | ||||||||||
Taxable equivalent adjustment(1) | 997 | 1,026 | 1,032 | 4,081 | 4,392 | ||||||||||
Income tax provision | 3,768 | 5,699 | 3,011 | 15,281 | 14,658 | ||||||||||
Net Income | $ | 9,259 | $ | 15,854 | $ | 8,735 | $ | 41,482 | $ | 41,954 | |||||
Shares Outstanding at End of Period | 95,245,215 | 95,544,765 | 99,629,494 | 95,245,215 | 99,629,494 | ||||||||||
Average Shares Outstanding Assuming | |||||||||||||||
Dilution | 95,138,836 | 96,208,545 | 101,787,103 | 97,029,832 | 103,885,663 | ||||||||||
(5) - Includes $2.0 million of accelerated depreciation expense related to the technology conversion. |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||||||
CONSOLIDATED FINANCIAL DATA | ||||||||||||
Unaudited | ||||||||||||
(dollars in thousands) | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
BALANCE SHEET (Period End) | ||||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 74,427 | $ | 88,179 | $ | 98,724 | ||||||
Interest-bearing bank deposits | 3,012 | 5,077 | 4,258 | |||||||||
Securities | 1,353,809 | 1,324,767 | 1,199,531 | |||||||||
Loans | 4,283,833 | 4,240,004 | 4,204,704 | |||||||||
Allowance for credit losses | (54,225 | ) | (54,957 | ) | (67,187 | ) | ||||||
Net loans | 4,229,608 | 4,185,047 | 4,137,517 | |||||||||
Goodwill and other intangibles | 161,267 | 161,483 | 162,331 | |||||||||
Other assets | 392,738 | 386,409 | 393,029 | |||||||||
Total Assets | $ | 6,214,861 | $ | 6,150,962 | $ | 5,995,390 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Noninterest-bearing demand deposits | $ | 912,361 | $ | 908,436 | $ | 883,269 | ||||||
Interest-bearing demand deposits | 89,149 | 96,587 | 97,963 | |||||||||
Savings deposits | 2,506,631 | 2,491,315 | 2,543,990 | |||||||||
Time deposits | 1,095,722 | 1,121,463 | 1,032,659 | |||||||||
Total interest-bearing deposits | 3,691,502 | 3,709,365 | 3,674,612 | |||||||||
Total deposits | 4,603,863 | 4,617,801 | 4,557,881 | |||||||||
Short-term borrowings | 626,615 | 551,628 | 356,227 | |||||||||
Long-term borrowings | 216,552 | 216,668 | 280,221 | |||||||||
Total borrowings | 843,167 | 768,296 | 636,448 | |||||||||
Other liabilities | 56,134 | 53,509 | 55,054 | |||||||||
Shareholders' equity | 711,697 | 711,356 | 746,007 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 6,214,861 | $ | 6,150,962 | $ | 5,995,390 | ||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||||||
Unaudited | |||||||||||||||
(dollars in thousands) | |||||||||||||||
For the Three Months Ended | |||||||||||||||
December 31, | Yield/ | September 30, | Yield/ | December 31, | Yield/ | ||||||||||
2013 | Rate | 2013 | Rate | 2012 | Rate | ||||||||||
NET INTEREST MARGIN (Quarterly Averages) | |||||||||||||||
Assets | |||||||||||||||
Loans (FTE)(1) | $ | 4,277,981 | 4.17 | % | $ | 4,258,372 | 4.19 | % | $ | 4,214,000 | 4.48 | % | |||
Securities and interest bearing bank deposits (FTE)(1) | 1,318,332 | 2.21 | % | 1,327,656 | 2.50 | % | 1,165,991 | 2.52 | % | ||||||
Total Interest-Earning Assets (FTE)(1) | 5,596,313 | 3.71 | % | 5,586,028 | 3.79 | % | 5,379,991 | 4.06 | % | ||||||
Noninterest-earning assets | 565,809 | 576,741 | 582,755 | ||||||||||||
Total Assets | $ | 6,162,122 | $ | 6,162,769 | $ | 5,962,746 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||||
Interest-bearing demand and savings deposits | $ | 2,605,992 | 0.10 | % | $ | 2,608,249 | 0.11 | % | $ | 2,609,722 | 0.16 | % | |||
Time deposits | 1,117,567 | 1.05 | % | 1,144,766 | 1.06 | % | 1,082,785 | 1.28 | % | ||||||
Short-term borrowings | 561,976 | 0.28 | % | 547,393 | 0.26 | % | 365,697 | 0.28 | % | ||||||
Long-term borrowings | 216,618 | 1.76 | % | 216,733 | 1.77 | % | 237,975 | 3.20 | % | ||||||
Total Interest-Bearing Liabilities | 4,502,153 | 0.44 | % | 4,517,141 | 0.45 | % | 4,296,179 | 0.62 | % | ||||||
Noninterest-bearing deposits | 895,652 | 885,346 | 853,520 | ||||||||||||
Other liabilities | 49,270 | 47,932 | 48,565 | ||||||||||||
Shareholders' equity | 715,047 | 712,350 | 764,482 | ||||||||||||
Total Noninterest-Bearing Funding Sources | 1,659,969 | 1,645,628 | 1,666,567 | ||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,162,122 | $ | 6,162,769 | $ | 5,962,746 | |||||||||
Net Interest Margin (FTE) (annualized)(1) | 3.35 | % | 3.43 | % | 3.57 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||||
CONSOLIDATED FINANCIAL DATA | ||||||||||
Unaudited | ||||||||||
(dollars in thousands) | ||||||||||
For the Years Ended | ||||||||||
December 31, | Yield/ | December 31, | Yield/ | |||||||
2013 | Rate | 2012 | Rate | |||||||
NET INTEREST MARGIN (Year-to-Date Averages) | ||||||||||
Assets | ||||||||||
Loans (FTE)(1) | $ | 4,255,593 | 4.23 | % | $ | 4,165,292 | 4.60 | % | ||
Securities and interest bearing bank deposits (FTE)(1) | 1,303,976 | 2.32 | % | 1,183,769 | 2.69 | % | ||||
Total Interest-Earning Assets (FTE)(1) | 5,559,569 | 3.79 | % | 5,349,061 | 4.18 | % | ||||
Noninterest-earning assets | 572,413 | 591,086 | ||||||||
Total Assets | $ | 6,131,982 | $ | 5,940,147 | ||||||
Liabilities and Shareholders' Equity | ||||||||||
Interest-bearing demand and savings deposits | $ | 2,612,847 | 0.12 | % | $ | 2,567,387 | 0.18 | % | ||
Time deposits | 1,154,984 | 1.07 | % | 1,138,112 | 1.49 | % | ||||
Short-term borrowings | 478,388 | 0.26 | % | 402,196 | 0.27 | % | ||||
Long-term borrowings | 233,483 | 2.08 | % | 202,598 | 3.76 | % | ||||
Total Interest-Bearing Liabilities | 4,479,702 | 0.48 | % | 4,310,293 | 0.70 | % | ||||
Noninterest-bearing deposits | 876,111 | 810,041 | ||||||||
Other liabilities | 48,335 | 50,859 | ||||||||
Shareholders' equity | 727,834 | 768,954 | ||||||||
Total Noninterest-Bearing Funding Sources | 1,652,280 | 1,629,854 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 6,131,982 | $ | 5,940,147 | ||||||
Net Interest Margin (FTE) (annualized)(1) | 3.39 | % | 3.61 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||||||
Unaudited | |||||||||||||||
(dollars in thousands) | |||||||||||||||
December 31, | September 30, | December 31, | |||||||||||||
2013 | 2013 | 2012 | |||||||||||||
ASSET QUALITY DETAIL | |||||||||||||||
Nonperforming Loans: | |||||||||||||||
Loans on nonaccrual basis | $ | 28,908 | $ | 42,122 | $ | 43,539 | |||||||||
Troubled debt restructured loans on | |||||||||||||||
nonaccrual basis | 16,980 | 17,807 | 50,979 | ||||||||||||
Troubled debt restructured loans on | |||||||||||||||
accrual basis | 13,495 | 11,290 | 13,037 | ||||||||||||
Total Nonperforming Loans | $ | 59,383 | $ | 71,219 | $ | 107,555 | |||||||||
Other real estate owned ("OREO") | 11,728 | 9,656 | 11,262 | ||||||||||||
Repossessions ("Repo") | 322 | 695 | 575 | ||||||||||||
Total Nonperforming Assets | $ | 71,433 | $ | 81,570 | $ | 119,392 | |||||||||
Loans past due in excess of 90 days and | |||||||||||||||
still accruing | $ | 2,505 | $ | 2,364 | $ | 2,447 | |||||||||
Criticized loans | 162,361 | 180,593 | 288,502 | ||||||||||||
Nonperforming assets as a percentage | |||||||||||||||
of total loans, plus OREO and Repos | 1.66 | % | 1.92 | % | 2.83 | % | |||||||||
Allowance for credit losses | $ | 54,225 | $ | 54,957 | $ | 67,187 | |||||||||
For the Three Months Ended | For the Years Ended | ||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Charge-offs: | |||||||||||||||
Commercial, financial, agricultural | |||||||||||||||
and other | $ | 987 | $ | 3,000 | $ | 174 | $ | 17,944 | $ | 4,764 | |||||
Real estate construction | (361 | ) | (63 | ) | 784 | 272 | 3,019 | ||||||||
Commercial real estate | 447 | 800 | 59 | 10,377 | 441 | ||||||||||
Residential real estate | 33 | 686 | 753 | 550 | 3,406 | ||||||||||
Loans to individuals | 842 | 786 | 863 | 3,046 | 2,961 | ||||||||||
Net Charge-offs | $ | 1,948 | $ | 5,209 | $ | 2,633 | $ | 32,189 | $ | 14,591 | |||||
Net charge-offs as a percentage of average | |||||||||||||||
loans outstanding (annualized) | 0.18 | % | 0.49 | % | 0.25 | % | 0.76 | % | 0.35 | % | |||||
Provision for credit losses as a percentage | |||||||||||||||
of net charge-offs | 62.42 | % | 52.10 | % | 216.71 | % | 59.73 | % | 140.80 | % | |||||
Provision for credit losses | $ | 1,216 | $ | 2,714 | $ | 5,706 | $ | 19,227 | $ | 20,544 |
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." | |||||||||||
December 31, | September 30, | December 31, | |||||||||
2013 | 2013 | 2012 | |||||||||
Tangible Equity: | |||||||||||
Total shareholders' equity | $ | 711,697 | $ | 711,356 | $ | 746,007 | |||||
Less: intangible assets | 161,267 | 161,483 | 162,331 | ||||||||
Tangible Equity | 550,430 | 549,873 | 583,676 | ||||||||
Less: preferred stock | — | — | — | ||||||||
Tangible Common Equity | $ | 550,430 | $ | 549,873 | $ | 583,676 | |||||
Tangible Assets: | |||||||||||
Total assets | $ | 6,214,861 | $ | 6,150,962 | $ | 5,995,390 | |||||
Less: intangible assets | 161,267 | 161,483 | 162,331 | ||||||||
Tangible Assets | $ | 6,053,594 | $ | 5,989,479 | $ | 5,833,059 | |||||
(3)Tangible Common Equity as a percentage of Tangible Assets | 9.09 | % | 9.18 | % | 10.01 | % | |||||
Shares Outstanding at End of Period | 95,245,215 | 95,544,765 | 99,629,494 | ||||||||
(4)Tangible Book Value Per Common Share | $ | 5.78 | $ | 5.76 | $ | 5.86 | |||||
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. | |||||||||||