8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 27, 2015

First Commonwealth Financial Corporation

(Exact name of registrant as specified in its charter)

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)

Registrant’s telephone number, including area code: (724) 349-7220

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ 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

On January 28, 2015, First Commonwealth Financial Corporation (the “Company”) issued a press release announcing financial results for the three and twelve month periods ended December 31, 2014. A copy of this press release and the related earnings tables are furnished as Exhibit 99.1 to this report and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

On January 28, 2015, the Company announced a cash dividend of $0.07 per share of the Company’s common stock. The dividend declaration is included in the press release announcing financial results for the three and twelve month periods ended December 31, 2014. A copy of this press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

On January 27, 2015, the Board of Directors of the Company approved a share repurchase program for up to $25 million in shares of the Company’s common stock.  Under this program, management is authorized to repurchase shares through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in a manner that is intended to comply with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. First Commonwealth may suspend or discontinue the program at any time.

Item 9.01 Financial Statements and Exhibits

Exhibits

99.1 Press Release announcing Fourth Quarter and Full-Year 2014 Financial Results and Declaration of Quarterly Dividend.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: January 28, 2015

FIRST COMMONWEALTH FINANCIAL CORPORATION
By:	/s/ James R. Reske
Name:	James R. Reske
Title:	Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE                

First Commonwealth Announces Fourth Quarter and Full-Year 2014 Financial Results;

Declares Quarterly Dividend

Indiana, PA, January 28, 2015 - First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the fourth quarter and full-year 2014.

Fourth Quarter 2014 Highlights

Franchise Growth

• Solid loan growth of $47.0 million from the prior quarter, or 4.3% on an annualized basis.

• Acquisition of a local insurance agency that expands First Commonwealth’s fee-based product lines and provides access to key insurance carriers, which was completed on October 1, 2014.

Expense

• Expense reductions of $1.6 million in the fourth quarter as a result of lower technology, employment and other operational expenses following the IT systems conversion.

Net Income

• Net income for the fourth quarter was $7.7 million and was impacted by the following items:

◦ a $5.6 million ($0.06 diluted earnings per share) after-tax charge for a legal contingency reserve in connection with a preliminary global settlement of a previously disclosed litigation relating to a discontinued bank product known as the Market Rate Savings IRA;

◦ a $1.4 million ($0.02 diluted earnings per share) after-tax recovery of an external fraud loss incurred during the third quarter of 2012; and

◦ a $0.4 million after-tax charge from the donation of a former headquarters building to a local university.

“2014 was an unprecedented year for our organization,” stated T. Michael Price, President and Chief Executive Officer.  “We successfully executed a comprehensive systems conversion that has already led to process efficiencies and cost savings.  Our newly launched mortgage initiative is ramping up quickly and will be an important component of revenue growth in 2015.  Our acquisition of a local insurance agency expanded our carrier access.  And we maintained solid loan growth for the last three consecutive quarters.  So despite the unusual, non-recurring items that impacted our fourth quarter earnings, we achieved earnings per share growth of 12% in 2014, and remain on track with our strategic initiatives and growth objectives.”

Financial Summary

(dollars in thousands,	For the Three Months Ended												For the Years Ended
except per share data)	December 31,				September 30,				December 31,				December 31,
	2014				2014				2013				2014				2013
Net Income		$	7,729			$	12,496			$	9,259			$	44,453			$	41,482
Diluted earnings per share		$	0.08			$	0.13			$	0.10			$	0.48			$	0.43
Return on average assets	0.48			%	0.78			%	0.60			%	0.71			%	0.68			%
Return on average equity	4.26			%	6.91			%	5.14			%	6.18			%	5.70			%
Efficiency Ratio	78.45			%	66.65			%	73.15			%	69.23			%	67.52			%
Net Interest Margin	3.22			%	3.26			%	3.35			%	3.27			%	3.39			%

Financial Results Summary

For the three months ended December 31, 2014, net income was $7.7 million, or $0.08 diluted earnings per share, compared to net income of $12.5 million, or $0.13 diluted earnings per share, in the third quarter of 2014 and net income of $9.3 million, or $0.10 diluted earnings per share, in the fourth quarter of 2013. The decrease in net income compared to the third quarter of 2014 was driven by a decrease in noninterest income, excluding net securities gains, of $1.6 million and an increase in noninterest expense of $5.8 million primarily as a result of the aforementioned legal reserve, offset by a partial recovery of $2.1 million for a 2012 external fraud loss. Return on average assets and return on average equity were 0.48% and 4.26%, respectively, compared to 0.60% and 5.14% in 2013. The legal reserve charge reduced return on average assets and return on average equity by 35 basis points and 306 basis points, respectively, in the fourth quarter.

For the year ended December 31, 2014, net income was $44.5 million, or $0.48 diluted earnings per share, compared to net income of $41.5 million, or $0.43 diluted earnings per share, for 2013. The increase in net income compared to 2013 was primarily the result of a decrease in provision expense of $8.0 million, offset by a decline of $1.7 million in net interest income and an increase in noninterest expense of $2.4 million. Noninterest expense included $7.4 million of non-routine technology conversion-related expenses incurred during 2014 (as compared to $4.6 million in 2013) and the previously mentioned legal reserve incurred in the fourth quarter of 2014. Return on average assets and return on average equity were 0.71% and 6.18%, respectively, compared to 0.68% and 5.70% in 2013. The legal reserve charge reduced return on average assets and return on average equity by 9 basis points and 77 basis points, respectively, in 2014.

Net Interest Income and Net Interest Margin

Fourth quarter 2014 net interest income, on a fully taxable-equivalent basis, decreased slightly by $0.4 million to $47.0 million, as compared to $47.4 million in the third quarter of 2014. The decrease from the prior quarter was primarily the result of a four basis point decline in the net interest margin to 3.22% due to lower replacement yields, partially offset by a two basis point decline in funding costs and a $25.4 million increase in average interest-earning assets.

As compared to the fourth quarter of 2013, net interest income, on a fully taxable-equivalent basis, decreased slightly by $0.3 million. The net interest margin of 3.22% in the fourth quarter of 2014 was 13 basis points lower than in the fourth quarter of 2013 due to lower replacement loan yields, despite a $200.7 million, or 3.6%, increase in average interest-earning assets. A 20 basis point decline in the yield on interest-earning assets between the periods was partially offset by a seven basis point decline in funding costs.

For the year ended December 31, 2014, net interest income, on a fully taxable-equivalent, basis decreased $1.7 million to $187.0 million as compared to 2013. Average interest-earning assets increased $166.5 million, or 3.0%; however, lower replacement yields on interest-earning assets compressed the margin by 20 basis points compared to the prior-year period, partially offset by a seven basis point decline in funding costs. The decrease was also impacted by $1.0 million of income recognized on other-than-temporarily impaired pooled trust preferred collateralized debt obligations that received payments, which resulted in a two basis point benefit to the net interest margin in the 2013 year-to-date period. The net interest margin for the year ended December 31, 2014 was 3.27%, 12 basis points lower than the prior-year period.

Based on average balances, loan growth for the fourth quarter of 2014 was $41.9 million over the prior quarter and $152.1 million over the year-ago quarter. Average deposits decreased $28.3 million in the fourth quarter of 2014 from the prior quarter and $231.2 million from the same quarter a year ago, partially due to the intentional runoff of higher-cost deposits in favor of more cost-effective short-term borrowings. As a result, average short-term borrowings increased $71.5 million from the prior quarter and $449.6 million over the year-ago period. Average noninterest-bearing demand deposits were essentially flat as compared to the prior quarter and increased $99.9 million from the year-ago quarter.

Credit Quality

The provision for credit losses totaled $2.6 million for the three months ended December 31, 2014, an increase of $0.5 million as compared to the prior quarter and an increase of $1.4 million from the same quarter last year. For the year ending December 31, 2014, the provision for credit losses was $11.2 million, a decrease of $8.0 million as compared to the $19.2 million provision in the prior-year period.

At December 31, 2014, nonperforming loans were $55.3 million, an increase of $10.0 million from September 30, 2014 and a decrease of $4.1 million from December 31, 2013. The increase is primarily related to one commercial credit totaling $9.9 million that was placed into nonperforming status in the fourth quarter of 2014. This loan had previously been considered a potential problem loan. Nonperforming loans as a percentage of total loans were 1.24%, 1.03% and 1.39% for the periods ended December 31, 2014, September 30, 2014 and December 31, 2013, respectively.

During the fourth quarter of 2014, net charge-offs were $1.3 million, compared to $2.0 million in the prior quarter and $1.9 million in the fourth quarter of 2013. There were no significant individual charge-offs in the fourth and third quarters of 2014 and fourth quarter of 2013. For the year ended December 31, 2014, net charge-offs were $13.4 million, or 0.31% of average loans, compared to $32.2 million, or 0.76% of average loans, for the same period of 2013.

The allowance for credit losses was $52.1 million at December 31, 2014 and as a percentage of total loans outstanding was 1.17%, 1.15% and 1.27% for December 31, 2014, September 30, 2014 and December 31, 2013, respectively. General reserves as a percentage of non-impaired loans were 0.97%, 1.06% and 1.07% for December 31, 2014, September 30, 2014 and December 31, 2013, respectively.

Other real estate owned (“OREO”) acquired through foreclosure was $7.2 million at December 31, 2014 as compared to $7.8 million at September 30, 2014 and $11.7 million at December 31, 2013. There were no significant additions to OREO in the fourth quarter of 2014.

Noninterest Income

Noninterest income, excluding net securities gains and losses, decreased $1.6 million, or 10.8%, in the fourth quarter of 2014 as compared to the prior quarter and decreased $1.3 million, or 8.7%, compared to the same quarter last year. The decrease from the prior quarter is primarily the result of a $0.5 million decrease in service charges on deposit accounts, a $0.3 million decrease in trust income and a $0.4 million decrease in commercial loan swap-related revenues included in other income. The decrease from the prior-year period of $1.3 million is primarily related to a decrease of $0.6 million in service charges on deposit accounts and decreases in other revenue of $0.7 million in commercial loan swap-related revenues and $0.4 million in investment management income (due to the sale of our advisory business in the first quarter of 2014), offset by a $0.4 million increase from insurance due to increased production and our recent agency acquisition.

During the fourth quarter of 2014, a gain of $0.5 million was recognized as the result of a recovery on a trust preferred security. In the fourth quarter of 2013, a loss of $1.4 million was recognized when this trust preferred security was liquidated. The $0.5 million received in the fourth quarter of 2014 represents the additional proceeds distributed as part of the final liquidation of the trust.

For the year ended December 31, 2014, noninterest income, excluding securities gains and losses, decreased $1.0 million, or 1.7%, as compared to the same period of 2013. Changes in noninterest income included decreases of $2.3 million in commercial loan swap-related revenues and $1.1 million primarily related to lower investment management income (due to the previously mentioned sale of our advisory business) as well as a decrease of $0.3 million in letter of credit fees over the year-ago period. These decreases were partially offset by increases of $2.9 million from the gain on sale of assets primarily from the sale of an OREO property and the $1.2 million gain from the sale of our registered investment advisory business during 2014, together with increases of $0.5 million in insurance revenues and $0.5 million in interchange revenue compared to the year-ago period.

Noninterest Expense

Noninterest expense increased $5.8 million, or 13.9%, in the fourth quarter of 2014 from the prior quarter and increased $2.0 million, or 4.5%, compared to the fourth quarter of 2013. The increase during the fourth quarter is primarily

attributable to the aforementioned legal reserve and building donation to a local university, partially offset by the external fraud recovery and a $2.1 million reduction in IT conversion-related expenses. There was $2.2 million in IT conversion-related expense in the third quarter of 2014 as compared to $0.1 million in the fourth quarter of 2014. In addition, noninterest expense reductions of $1.6 million in the fourth quarter can be directly attributed to the successful completion of the IT conversion in the third quarter of 2014.

The increase in noninterest expense in the fourth quarter of 2014 as compared to the fourth quarter of 2013 is primarily attributable to the aforementioned legal reserve and building donation, offset by the external fraud recovery and reductions of $4.4 million in IT conversion-related expenses. There was $4.5 million in IT conversion-related expense in the fourth quarter of 2013 and $0.1 million in the fourth quarter of 2014.

Despite $2.8 million in increased non-routine technology conversion charges and accelerated depreciation in 2014, as well as the aforementioned legal reserve charge and building donation, noninterest expense increased by only $2.4 million for the year ended December 31, 2014 compared to 2013. Improvements included decreases of $1.9 million in Pennsylvania shares tax expense, $0.4 million in amortization of intangibles, $1.1 million in loan collection costs, and $0.3 million in FDIC expense. Also contributing to the year-over-year comparison of non-interest expense was the aforementioned $3.0 million partial recovery for a 2012 external fraud loss in 2014, a $1.6 million charge for the early extinguishment of debt in 2013 and a $0.8 million contingency accrual for client tax reporting in 2013.

Full time equivalent staff declined to 1,328 at December 31, 2014 from 1,362 at December 31 2013. The decrease is primarily attributable to staff reductions as a result of the completion of our IT systems conversion and reductions in our branch network, offset by the recent launch of our mortgage initiative and the acquisition of an insurance agency.

The efficiency ratio, calculated as total noninterest expense as a percentage of total revenue (which consists of net interest income on a fully taxable equivalent basis plus total noninterest income, excluding net securities gains), was 78.45% and 69.23% for the three months and year ended December 31, 2014, respectively, as compared to 73.15% and 67.52% for the three months and year ended December 31, 2013. IT conversion expenses added 0.19% and 2.98% to the efficiency ratio, respectively, for the three months and year ended December 31, 2014. The legal reserve charge increased the efficiency ratio by an additional 14.17% and 3.46% for the three months and year ended December 31, 2014.

Dividends and Capital

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.07 per share which is payable on February 20, 2015 to shareholders of record as of February 9, 2015. This dividend represents a 3.3% projected annual yield utilizing the January 27, 2015 closing market price of $8.53.

During the third quarter of 2014, First Commonwealth completed a previously announced $25.0 million common stock repurchase program under which the corporation repurchased 2,924,066 shares at an average price of $8.58 per share.

On January 27, 2015, First Commonwealth’s Board of Directors authorized an additional $25.0 million common stock repurchase program.

First Commonwealth’s capital ratios for Total, Tier I and Leverage at December 31, 2014 were 12.8%, 11.7% and 9.9%, respectively. Our current capital levels would meet the fully-phased in Basel III capital requirements issued by the U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full-year 2014 on Wednesday, January 28, 2015 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-877-353-0037 or through the company’s web page, http://www.fcbanking.com/InvestorRelations. A replay of the call will be available approximately two hours following the conclusion of the conference. A link to the call replay will be accessible at this web page for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation, headquartered in Indiana, Pennsylvania, is a financial services company with $6.4 billion in total assets and 110 banking offices in 15 counties throughout western and central Pennsylvania.  First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency.

Forward-Looking Statements

This release contains forward-looking statements about First Commonwealth’s future plans, strategies and financial performance. These statements can be identified by the fact that they do not relate strictly to historical or current facts and 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." Such statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and may cause actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect our revenues, increase credit-related costs and reduce the values of our assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Continued stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, our business and financial performance is likely to be negatively impacted by effects of recently enacted and future legislation and regulation. Our results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance and legal risk, interest rate risk, and liquidity risk. Forward-looking statements speak only as of the date on which they are made. First Commonwealth undertakes no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact:

Media/Investor Relations:

Richard J. Stimel

Vice President/ Corporate Communications and Investor Relations

724-463-6806

RStimel@fcbanking.com

###

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,
	2014			2014			2013			2014			2013
SUMMARY RESULTS OF OPERATIONS
Net interest income (FTE)(1)	$	46,978		$	47,364		$	47,303		$	187,007		$	188,732
Provision for credit losses	2,575			2,073			1,216			11,196			19,227
Noninterest income	13,887			15,050			13,264			60,859			60,163
Noninterest expense	47,359			41,568			45,327			171,210			168,824
Net income	7,729			12,496			9,259			44,453			41,482
Earnings per common share (diluted)	$	0.08		$	0.13		$	0.10		$	0.48		$	0.43
KEY FINANCIAL RATIOS
Return on average assets	0.48		%	0.78		%	0.60		%	0.71		%	0.68		%
Return on average shareholders' equity	4.26		%	6.91		%	5.14		%	6.18		%	5.70		%
Efficiency ratio(2)	78.45		%	66.65		%	73.15		%	69.23		%	67.52		%
Net interest margin (FTE)(1)	3.22		%	3.26		%	3.35		%	3.27		%	3.39		%
Book value per common share	$	7.81		$	7.74		$	7.47
Tangible book value per common share(4)	6.03			5.99			5.78
Market value per common share	9.22			8.39			8.82
Cash dividends declared per common share	0.07			0.07			0.06			$	0.28		$	0.23
ASSET QUALITY RATIOS
Nonperforming loans as a percent of
end-of-period loans (5)	1.24		%	1.03		%	1.39		%
Nonperforming assets as a percent of
total assets (5)	0.99		%	0.85		%	1.15		%
Net charge-offs as a percent of average
loans (annualized)	0.12		%	0.18		%	0.18		%
Allowance for credit losses as a percent
of nonperforming loans (6)	94.21		%	112.21		%	91.31		%
Allowance for credit losses as a percent
of end-of-period loans (6)	1.17		%	1.15		%	1.27		%
CAPITAL RATIOS
Shareholders' equity as a percent of total
assets	11.26		%	11.16		%	11.45		%
Tangible common equity as a percent of
tangible assets(3)	8.92		%	8.87		%	9.09		%
Leverage Ratio	9.85		%	9.79		%	10.00		%
Risk Based Capital - Tier I	11.73		%	11.73		%	12.10		%
Risk Based Capital - Total	12.79		%	12.77		%	13.26		%
(5) - Includes loans held for sale
(6) - Excludes loans held for sale

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,
	2014		2014		2013			2014		2013
INCOME STATEMENT
Interest income	$	50,420	$	51,089	$	51,308		$	202,181	$	206,358
Interest expense	4,267		4,536		5,002			18,501		21,707
Net Interest Income	46,153		46,553		46,306			183,680		184,651
Taxable equivalent adjustment(1)	825		811		997			3,327		4,081
Net Interest Income (FTE)	46,978		47,364		47,303			187,007		188,732
Provision for credit losses	2,575		2,073		1,216			11,196		19,227
Net Interest Income after Provision for Credit Losses (FTE)	44,403		45,291		46,087			175,811		169,505
Net securities gains (losses)	500		48		(1,395		)	550		(1,158		)
Trust income	1,413		1,678		1,489			6,000		6,166
Service charges on deposit accounts	3,629		4,099		4,209			15,661		15,652
Insurance and retail brokerage commissions	1,779		1,709		1,382			6,483		6,005
Income from bank owned life insurance	1,371		1,330		1,320			5,502		5,539
Gain on sale of assets	508		742		97			4,996		2,153
Card related interchange income	3,602		3,599		3,532			14,222		13,746
Other income	1,085		1,845		2,630			7,445		12,060
Total Noninterest Income	13,887		15,050		13,264			60,859		60,163
Salaries and employee benefits	22,038		22,244		21,724			87,223		86,012
Net occupancy expense	3,150		3,180		3,477			13,119		13,607
Furniture and equipment expense (7)	2,762		4,471		5,255			17,812		15,118
Contributions	864		23		127			1,431		784
Data processing expense	1,531		1,583		1,498			6,124		6,009
Advertising and promotion expense	607		861		760			2,953		3,129
Pennsylvania shares tax expense	994		1,033		1,415			3,776		5,638
Intangible amortization	101		174		216			631		1,064
Collection and repossession expense	813		783		974			2,754		3,836
Other professional fees and services	1,209		1,050		966			3,986		3,731
FDIC insurance	1,028		926		1,054			4,054		4,366
Litigation and operational losses	7,059		187		325			6,786		1,115
Conversion related expenses (8)	112		783		2,523			1,788		2,588
Loss on redemption of subordinated debt	—		—		—			—		1,629
Other operating expenses	5,091		4,270		5,013			18,773		20,198
Total Noninterest Expense	47,359		41,568		45,327			171,210		168,824
Income before Income Taxes	10,931		18,773		14,024			65,460		60,844
Taxable equivalent adjustment(1)	825		811		997			3,327		4,081
Income tax provision	2,377		5,466		3,768			17,680		15,281
Net Income	$	7,729	$	12,496	$	9,259		$	44,453	$	41,482
Shares Outstanding at End of Period	91,723,028		91,722,649		95,245,215			91,723,028		95,245,215
Average Shares Outstanding Assuming Dilution	91,598,411		92,578,701		95,138,836			93,114,654		97,029,832
(7) - Includes $1.4 million and $2.0 million of accelerated depreciation expense related to the technology conversion for the three-month
periods ended September 30, 2014 and December 31, 2013, respectively. The years ended December 31, 2014 and 2013 includes $5.6
and $2.0 million in accelerated depreciation, respectively.
(8) - Does not include accelerated depreciation expense described in note 7.

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
	December 31,			September 30,			December 31,
	2014			2014			2013
BALANCE SHEET (Period End)
Assets
Cash and due from banks	$	72,276		$	78,696		$	74,427
Interest-bearing bank deposits	2,262			5,374			3,012
Securities	1,354,364			1,383,768			1,353,809
Loans held for sale	2,502			1,305			0
Loans	4,457,308			4,411,481			4,283,833
Allowance for credit losses	(52,051		)	(50,784		)	(54,225		)
Net loans	4,405,257			4,360,697			4,229,608
Goodwill and other intangibles	163,094			160,152			161,267
Other assets	360,530			366,106			392,738
Total Assets	$	6,360,285		$	6,356,098		$	6,214,861
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	989,027		$	995,014		$	912,361
Interest-bearing demand deposits	81,851			82,221			89,149
Savings deposits	2,402,288			2,363,464			2,506,631
Time deposits	842,345			931,689			1,095,722
Total interest-bearing deposits	3,326,484			3,377,374			3,691,502
Total deposits	4,315,511			4,372,388			4,603,863
Short-term borrowings	1,105,876			1,034,967			626,615
Long-term borrowings	161,626			188,706			216,552
Total borrowings	1,267,502			1,223,673			843,167
Other liabilities	61,127			50,553			56,134
Shareholders' equity	716,145			709,484			711,697
Total Liabilities and Shareholders' Equity	$	6,360,285		$	6,356,098		$	6,214,861

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/
	2014		Rate		2014		Rate		2013		Rate
NET INTEREST MARGIN (Quarterly Averages)
Assets
Loans (FTE)(1)(5)	$	4,430,036	3.89	%	$	4,388,130	3.97	%	$	4,277,981	4.17	%
Securities and interest bearing bank deposits (FTE)(1)	1,367,020		2.26	%	1,383,554		2.28	%	1,318,332		2.21	%
Total Interest-Earning Assets (FTE)(1)	5,797,056		3.51	%	5,771,684		3.57	%	5,596,313		3.71	%
Noninterest-earning assets	546,385				553,384				565,809
Total Assets	$	6,343,441			$	6,325,068			$	6,162,122
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits	$	2,475,405	0.10	%	$	2,466,127	0.10	%	$	2,605,992	0.10	%
Time deposits	917,056		0.83	%	954,474		0.98	%	1,117,567		1.05	%
Short-term borrowings	1,011,612		0.33	%	940,156		0.28	%	561,976		0.28	%
Long-term borrowings	174,288		1.98	%	199,435		1.79	%	216,618		1.76	%
Total Interest-Bearing Liabilities	4,578,361		0.37	%	4,560,192		0.39	%	4,502,153		0.44	%
Noninterest-bearing deposits	995,508				995,690				895,652
Other liabilities	49,407				51,327				49,270
Shareholders' equity	720,165				717,859				715,047
Total Noninterest-Bearing Funding Sources	1,765,080				1,764,876				1,659,969
Total Liabilities and Shareholders' Equity	$	6,343,441			$	6,325,068			$	6,162,122
Net Interest Margin (FTE) (annualized)(1)			3.22	%			3.26	%			3.35	%

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

	For the Years Ended
	December 31,		Yield/		December 31,		Yield/
	2014		Rate		2013		Rate
NET INTEREST MARGIN (Year-to-Date Averages)
Assets
Loans (FTE)(1)(5)	$	4,356,566	4.00	%	$	4,255,593	4.23	%
Securities and interest bearing bank deposits (FTE)(1)	1,369,496		2.27	%	1,303,976		2.32	%
Total Interest-Earning Assets (FTE)(1)	5,726,062		3.59	%	5,559,569		3.79	%
Noninterest-earning assets	555,051				572,413
Total Assets	$	6,281,113			$	6,131,982
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits	$	2,502,488	0.10	%	$	2,612,847	0.12	%
Time deposits	1,028,053		0.96	%	1,154,984		1.07	%
Short-term borrowings	815,394		0.30	%	478,388		0.26	%
Long-term borrowings	200,114		1.80	%	233,483		2.08	%
Total Interest-Bearing Liabilities	4,546,049		0.41	%	4,479,702		0.48	%
Noninterest-bearing deposits	964,422				876,111
Other liabilities	51,347				48,335
Shareholders' equity	719,295				727,834
Total Noninterest-Bearing Funding Sources	1,735,064				1,652,280
Total Liabilities and Shareholders' Equity	$	6,281,113			$	6,131,982
Net Interest Margin (FTE) (annualized)(1)			3.27	%			3.39	%

FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
	December 31,			September 30,			December 31,
	2014			2014			2013
ASSET QUALITY DETAIL
Nonperforming Loans:
Loans on nonaccrual basis	$	25,715		$	27,310		$	28,908
Troubled debt restructured loans on nonaccrual basis	16,952			6,783			16,980
Troubled debt restructured loans on accrual basis	12,584			11,164			13,495
Total Nonperforming Loans	$	55,251		$	45,257		$	59,383
Other real estate owned ("OREO")	7,197			7,751			11,728
Repossessions ("Repo")	432			902			322
Total Nonperforming Assets	$	62,880		$	53,910		$	71,433
Loans past due in excess of 90 days and still accruing	$	2,619		$	2,374		$	2,505
Classified loans	67,756			63,724			83,237
Criticized loans	140,126			139,449			162,361
Nonperforming assets as a percentage of total loans,
plus OREO and Repos	1.41		%	1.22		%	1.66		%
Allowance for credit losses	$	52,051		$	50,784		$	54,225
	For the Three Months Ended									For the Years Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2014			2014			2013			2014			2013
Net Charge-offs (Recoveries):
Commercial, financial, agricultural and other	$	445		$	294		$	987		$	8,177		$	17,944
Real estate construction	(871		)	(132		)	(361		)	(1,044		)	272
Commercial real estate	(141		)	635			447			536			10,377
Residential real estate	637			454			33			2,503			550
Loans to individuals	1,238			763			842			3,198			3,046
Net Charge-offs	$	1,308		$	2,014		$	1,948		$	13,370		$	32,189
Net charge-offs as a percentage of average loans
outstanding (annualized)	0.12		%	0.18		%	0.18		%	0.31		%	0.76		%
Provision for credit losses as a percentage of net
charge-offs	196.87		%	102.93		%	62.42		%	83.74		%	59.73		%
Provision for credit losses	$	2,575		$	2,073		$	1,216		$	11,196		$	19,227

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,
	2014			2014			2013
Tangible Equity:
Total shareholders' equity	$	716,145		$	709,484		$	711,697
Less: intangible assets	163,094			160,152			161,267
Tangible Equity	553,051			549,332			550,430
Less: preferred stock	—			—			—
Tangible Common Equity	$	553,051		$	549,332		$	550,430
Tangible Assets:
Total assets	$	6,360,285		$	6,356,098		$	6,214,861
Less: intangible assets	163,094			160,152			161,267
Tangible Assets	$	6,197,191		$	6,195,946		$	6,053,594
(3)Tangible Common Equity as a percentage of
Tangible Assets	8.92		%	8.87		%	9.09		%
Shares Outstanding at End of Period	91,723,028			91,722,649			95,245,215
(4)Tangible Book Value Per Common Share	$	6.03		$	5.99		$	5.78
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.