EX-99.1 2 dex991.htm SLIDE PRESENTATION FOR ANNUAL MEETING OF SHAREHOLDERS Slide Presentation for Annual Meeting of Shareholders
Welcome!
2009 Annual Shareholder Meeting
April 20, 2009
Exhibit 99.1

Welcoming Remarks
David S. Dahlmann
Chairman
of
the
Board
First
Commonwealth
Financial
Corporation

Business Meeting
David R. Tomb, Jr., Esq.
Secretary and Treasurer
First Commonwealth Financial Corporation
Election of Directors
Incentive Compensation Plan

Chairman’s Message

Chairman’s Message
Accountable Governance
Strength & Stability

Chairman’s Message
Strategic Direction & Execution
Leadership & Accountability
Accurate & Transparent
Communication

Chairman’s Message
Dividend Reduction
Timing Change

CEO’s Address
John J. Dolan
President & CEO
First Commonwealth Financial Corporation

CEO’s Address
Executive Officers
Thad Clements –
EVP / Strategic Resources
Ed Lipkus –
EVP / CFO
Len Lombardi –
SVP / Chief Audit Executive
Sue McMurdy
–
EVP / CIO
John Previte –
SVP / Investments
Mike Price –
President / First Commonwealth Bank
Dave Tomb –
SVP / Secretary & Treasurer

CEO’s Address
Overview
2008 Environment
2008 Performance
Critical Decisions

CEO’s Address
2008 Environment
Market Volatility
Unemployment Rate
Real Estate Market in Turmoil
Federal Bailouts
Changes to Competitive Landscape
Declining Consumer Confidence

CEO’s Address
2008 Performance
Household Growth
Core Net Income Growth
Checking & Savings Growth
Loan Portfolio Growth
Improved Brand Recognition and Market
Acceptance
Stock Performance

Company Name
Total Assets
($000)
1 Year               3 Year               5 Year          
Total Return
(%)
Total Return
(%)
Total Return
(%)
1
WesBanco, Inc. (WSBC)
5,222,041
-2.46
-20.51
-7.88
2
Park National Corporation (PRK)
7,070,720
-16.47
-39.37
-36.28
3
First Commonwealth Financial Corp. (FCF)
6,425,880
-18.91
-28.23
-21.66
4
S&T Bancorp, Inc. (STBA)
4,438,368
-31.22
-34.87
-15.68
5
United Bankshares, Inc. (UBSI)
8,102,091
-32.03
-49.31
-32.49
6
Old National Bancorp (ONB)
7,873,890
-34.25
-39.58
-34.97
7
F.N.B. Corporation (FNB)
8,364,811
-46.96
-45.67
-53.70
8
Susquehanna Bancshares, Inc. (SUSQ)
13,682,988
-50.84
-57.47
-53.88
9
National Penn Bancshares, Inc. (NPBC)
9,403,431
-51.88
-52.99
-47.18
10
Harleysville National Corporation (HNBC)
5,490,509
-55.52
-67.56
-68.84
11
Irwin Financial Corporation (IFC)
4,914,315
-63.28
-89.32
-92.09
12
United Community Banks, Inc. (UCBI)
8,520,765
-74.71
-84.30
-80.98
13
Integra Bank Corporation (IBNK)
3,357,100
-87.95
-90.86
-90.80
14
AMCORE Financial, Inc. (AMFI)
5,059,824
-91.81
-94.44
-93.80
15
South Financial Group, Inc. (TSFG)
13,602,326
-92.42
-95.41
-95.76
Average
7,435,271
-50.05
-59.33
-55.07
Median
7,070,720
-50.84
-52.99
-53.70
FCF at December 31, 2008
23.31%
13.42%
10.38%
Position within Peer at December 31, 2008
5
1
4
Total
Return
March 31, 2009
Executive Compensation Peer Group

CEO’s Address
Critical Decisions
Capital Raise
TARP Decision
Former National City Branches
Dividend

CEO’s Address
Dividend
Challenges & Uncertainties
Opportunities

CEO’s Address
Challenges for 2009 and Beyond
Market Volatility
Accounting Rules
FDIC Costs
Economic Conditions
Credit Quality

CEO’s Address
Opportunities
Households
Branches
Whole Banks

CEO’s Address
Strength & Stability
Well-capitalized
Strong Liquidity
Core Earnings Growth
$3 Million in Expense Reductions

Executive Compensation
Robert J. Ventura
Chairman
FCFC Executive Compensation Committee

Executive Compensation
General Compensation Philosophy
Attract and retain exceptional leaders
Align management’s goals with shareholders’
interests

th
Executive Compensation
Base Salaries
50
percentile of peer group
Peer group composition

Financial Performance Review
FCF was above the median of peers for 1-Year TSR
1-Year Total Shareholder Return Growth
First Commonwealth vs. Peer Group
12/31/2007 - 12/31/2008
23%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
IBNK
AMFI
IFC
TSFG
UCBI
SUSQ
FNB
NPBC
HNBC
PRK
FCF
UBSI
ONB
STBA
WSBC

Executive Compensation
Incentive Compensation Plans
Annual incentive plan (short-term)
Long-term incentive plan (rolling three-year
period)

Executive Compensation
Core Earnings vs. Reported Earnings
Definition of core earnings
Core earnings establish the engine for long-term
growth

2008 Annual Incentive Plan
Actual
2007
Target
2008
Needed
Change
CEO
EO's
40%
25%
CORE EPS
$0.62
$0.69
11.3%
40
20
CORE ROE
7.94%
9.1%
14.6%
-
20
CORE REVENUE $(000,000's)
209.1
223.7
7.0%
-
5
GROWTH IN HOUSEHOLDS
*
*
*
80%
70%
20
30
INDIVIDUAL GOALS
100%
100%
* -
Not Disclosed
Weight

Financial Performance Review
FCF total shareholder return declined, approximating 25th percentile peer
performance until a sharp upturn in June 2007 and at the end of 2008
exceeded 75th percentile performance and the other indices.
Total Shareholder Return
FCF vs. Peers & S&P Smallcap (S&P 600) and S&P 500 Financial Index
12/31/2003 -
12/31/2008
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
$170
$180
Dec03
Jun04
Dec04
Jun05
Dec05
Jun06
Dec06
Jun07
Dec07
Jun08
Dec08
75th %ile
Median
25th %ile
FCF
S&P 500
Financial
Index
S&P 600

Executive Compensation
Annual Incentive Plan
2008 bonuses
Same rules to apply in 2009
Trigger of $0.68 per share
ELT has foregone 2009 bonuses

Executive Compensation
Long-Term Incentive Plan
Measures
•
Reported EPS
•
Reported ROE
•
At times, revenue growth, efficiency ratio, etc.
Three concurrent plan periods
Link management decisions to the creation of
shareholder value

Executive Compensation
Equity Plan
Proposal being voted today
Allows awards to be paid in stock instead of cash
Ownership requirement for executives

Executive Compensation
Risk Assessment
Voluntarily undertaken by First Commonwealth

Executive Compensation
Summary
Balance components of the compensation plan
Tool to attract and retain the right people
Align management’s interests with shareholders’
interests
Reinforce long-term strength and stability of the
company

Questions & Answers

Results of Election
David R. Tomb, Jr., Esq.
Secretary and Treasurer

Thank You!
2009 Annual Shareholder Meeting
April 20, 2009