Regulatory Restrictions and Capital Adequacy

12 Months Ended

Dec. 31, 2012

Regulatory Restrictions and Capital Adequacy

Note 28—Regulatory Restrictions and Capital Adequacy

The amount of funds available to the parent from its subsidiary bank is limited by restrictions imposed on all financial institutions by banking regulators. The dividend restrictions have not had, and are not expected to have, a significant impact on First Commonwealth’s ability to meet its cash obligations. Cash dividends declared per common share were $0.18 for 2012 and $0.12 for 2011.

First Commonwealth is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on First Commonwealth’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, First Commonwealth and its banking subsidiary must meet specific capital guidelines that involve quantitative measures of First Commonwealth’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. First Commonwealth’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors.

Quantitative measures established by regulation to ensure capital adequacy require First Commonwealth to maintain minimum amounts and ratios of Total and Tier I capital (common and certain other “core” equity capital) to risk weighted assets, and of Tier I capital to average assets. As of December 31, 2012, First Commonwealth and its banking subsidiary met all capital adequacy requirements to which they are subject.

As of December 31, 2012, First Commonwealth Bank was considered well capitalized under the regulatory framework for prompt corrective action. To be considered well capitalized, the bank must maintain minimum Total risk-based capital, Tier I risk-based capital and Tier I leverage ratios as set forth in the table below:

	Actual					Regulatory Minumum					Well Capitalized Regulatory Guidelines
	Capital Amount		Ratio			Capital Amount		Ratio			Capital Amount		Ratio
	(dollars in thousands)
As of December 31, 2012
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	708,583		14.53	%	$	390,173		8.00	%		N/A		N/A
First Commonwealth Bank		669,131		13.75			389,421		8.00		$	486,776		10.00	%
Teir I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	647,460		13.28	%	$	195,087		4.00	%		N/A		N/A
First Commonwealth Bank		608,176		12.49			194,710		4.00		$	292,066		6.00	%
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	647,460		11.24	%	$	230,322		4.00	%		N/A		N/A
First Commonwealth Bank		608,176		10.64			228,544		4.00		$	285,680		5.00	%
As of December 31, 2011
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	720,307		14.71	%	$	391,709		8.00	%		N/A		N/A
First Commonwealth Bank		689,333		14.13			390,172		8.00		$	487,715		10.00	%
Teir I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	659,083		13.46	%	$	195,855		4.00	%		N/A		N/A
First Commonwealth Bank		628,346		12.88			195,086		4.00		$	292,629		6.00	%
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	659,083		11.91	%	$	221,444		4.00	%		N/A		N/A
First Commonwealth Bank		628,346		11.44			219,627		4.00		$	274,534		5.00	%