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 First Quarter 2013 Financial Results and Declaration of Increased Second Quarter 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 | ||||||||
March 31, | December 31, | March 31, | ||||||
2013 | 2012 | 2012 | ||||||
SUMMARY RESULTS OF OPERATIONS | ||||||||
Net interest income (FTE)(1) | $46,447 | $48,223 | $49,387 | |||||
Provision for credit losses | 4,497 | 5,706 | 3,787 | |||||
Noninterest income | 14,885 | 14,103 | 17,380 | |||||
Noninterest expense | 41,454 | 43,842 | 46,752 | |||||
Net income | 10,553 | 8,735 | 11,051 | |||||
Earnings per common share (diluted) | $0.11 | $0.09 | $0.11 | |||||
KEY FINANCIAL RATIOS | ||||||||
Return on average assets | 0.71 | % | 0.58 | % | 0.75 | % | ||
Return on average shareholders' equity | 5.73 | % | 4.55 | % | 5.81 | % | ||
Efficiency ratio(2) | 67.59 | % | 70.38 | % | 70.02 | % | ||
Net interest margin (FTE)(1) | 3.45 | % | 3.57 | % | 3.75 | % | ||
Book value per common share | $7.53 | $7.49 | $7.30 | |||||
Tangible book value per common share(4) | 5.90 | 5.86 | 5.75 | |||||
Market value per common share | 7.46 | 6.82 | 6.12 | |||||
Cash dividends declared per common share | 0.05 | 0.05 | 0.03 | |||||
ASSET QUALITY RATIOS | ||||||||
Allowance for credit losses as a percent of end-of-period loans(6) | 1.48 | % | 1.60 | % | 1.47 | % | ||
Allowance for credit losses as a percent of nonperforming loans(6) | 79.54 | % | 62.47 | % | 74.45 | % | ||
Nonperforming loans as a percent of end-of-period loans(5) | 1.86 | % | 2.56 | % | 2.17 | % | ||
Nonperforming assets as a percent of total assets(5) | 1.47 | % | 1.99 | % | 1.87 | % | ||
Net charge-offs as a percent of average loans (annualized) | 0.90 | % | 0.25 | % | 0.42 | % | ||
CAPITAL RATIOS | ||||||||
Shareholders' equity as a percent of total assets | 12.26 | % | 12.44 | % | 12.86 | % | ||
Tangible common equity as a percent of tangible assets(3) | 9.87 | % | 10.01 | % | 10.40 | % | ||
Leverage Ratio | 11.15 | % | 11.24 | % | 11.74 | % | ||
Risk Based Capital - Tier I | 13.27 | % | 13.28 | % | 13.52 | % | ||
Risk Based Capital - Total | 14.52 | % | 14.53 | % | 14.77 | % | ||
(5) - Includes held for sale loans. | ||||||||
(6) - Excludes held for sale loans. |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||
CONSOLIDATED FINANCIAL DATA | ||||||||
Unaudited | ||||||||
(dollars in thousands, except per share data) | ||||||||
For the Three Months Ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2013 | 2012 | 2012 | ||||||
INCOME STATEMENT | ||||||||
Interest income | $51,761 | $53,867 | $56,616 | |||||
Interest expense | 6,343 | 6,676 | 8,446 | |||||
Net Interest Income | 45,418 | 47,191 | 48,170 | |||||
Taxable equivalent adjustment(1) | 1,029 | 1,032 | 1,217 | |||||
Net Interest Income (FTE) | 46,447 | 48,223 | 49,387 | |||||
Provision for credit losses | 4,497 | 5,706 | 3,787 | |||||
Net Interest Income after Provision for Credit Losses (FTE) | 41,950 | 42,517 | 45,600 | |||||
Changes in fair value on impaired securities | 1,864 | 644 | 1,498 | |||||
Non-credit related gains on securities not expected to | ||||||||
be sold (recognized in other comprehensive income) | (1,864 | ) | (644 | ) | (1,498 | ) | ||
Net Impairment Losses | 0 | 0 | 0 | |||||
Net securities gains | 4 | 29 | 0 | |||||
Trust income | 1,663 | 1,426 | 1,542 | |||||
Service charges on deposit accounts | 3,401 | 3,768 | 3,502 | |||||
Insurance and retail brokerage commissions | 1,417 | 1,334 | 1,424 | |||||
Income from bank owned life insurance | 1,428 | 1,481 | 1,445 | |||||
Gain on sale of assets | 275 | 291 | 2,115 | |||||
Card related interchange income | 3,188 | 3,540 | 3,114 | |||||
Credit risk on interest rate swaps | 989 | (371 | ) | 606 | ||||
Other income | 2,520 | 2,605 | 3,632 | |||||
Total Noninterest Income | 14,885 | 14,103 | 17,380 | |||||
Salaries and employee benefits | 21,793 | 20,668 | 21,758 | |||||
Net occupancy expense | 3,635 | 3,313 | 3,404 | |||||
Furniture and equipment expense | 3,272 | 3,134 | 3,184 | |||||
Data processing expense | 1,516 | 1,708 | 1,563 | |||||
Pennsylvania shares tax expense | 1,190 | 1,503 | 1,183 | |||||
Intangible amortization | 358 | 358 | 371 | |||||
Collection and repossession expense | 1,151 | 1,106 | 2,699 | |||||
Other professional fees and services | 969 | 1,162 | 1,199 | |||||
FDIC insurance | 1,050 | 1,275 | 1,237 | |||||
Other operating expenses | 6,520 | 9,615 | 10,154 | |||||
Total Noninterest Expense | 41,454 | 43,842 | 46,752 | |||||
Income before Income Taxes | 15,381 | 12,778 | 16,228 | |||||
Taxable equivalent adjustment(1) | 1,029 | 1,032 | 1,217 | |||||
Income tax provision | 3,799 | 3,011 | 3,960 | |||||
Net Income | $10,553 | $8,735 | $11,051 | |||||
Shares Outstanding at End of Period | 99,298,120 | 99,629,494 | 105,050,018 | |||||
Average Shares Outstanding Assuming Dilution | 99,305,414 | 101,787,103 | 104,816,442 |
FIRST COMMONWEALTH FINANCIAL CORPORATION | |||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||
Unaudited | |||||||||
(dollars in thousands) | |||||||||
March 31, | December 31, | March 31, | |||||||
2013 | 2012 | 2012 | |||||||
BALANCE SHEET (Period End) | |||||||||
Assets | |||||||||
Cash and due from banks | $53,991 | $98,724 | $74,889 | ||||||
Interest-bearing bank deposits | 1,780 | 4,258 | 6,663 | ||||||
Securities | 1,325,560 | 1,199,531 | 1,244,749 | ||||||
Loans held for sale | 0 | 0 | 8,076 | ||||||
Loans | 4,218,810 | 4,204,704 | 4,128,588 | ||||||
Allowance for credit losses | (62,262 | ) | (67,187 | ) | (60,732 | ) | |||
Net loans | 4,156,548 | 4,137,517 | 4,067,856 | ||||||
Goodwill and other intangibles | 161,973 | 162,331 | 163,428 | ||||||
Other assets | 399,187 | 393,029 | 402,983 | ||||||
Total Assets | $6,099,039 | $5,995,390 | $5,968,644 | ||||||
Liabilities and Shareholders' Equity | |||||||||
Noninterest-bearing demand deposits | $883,307 | $883,269 | $818,896 | ||||||
Interest-bearing demand deposits | 90,276 | 97,963 | 122,320 | ||||||
Savings deposits | 2,510,615 | 2,543,990 | 2,469,736 | ||||||
Time deposits | 1,227,380 | 1,032,659 | 1,222,879 | ||||||
Total interest-bearing deposits | 3,828,271 | 3,674,612 | 3,814,935 | ||||||
Total deposits | 4,711,578 | 4,557,881 | 4,633,831 | ||||||
Short-term borrowings | 308,100 | 356,227 | 309,373 | ||||||
Long-term borrowings | 280,068 | 280,221 | 206,768 | ||||||
Total borrowings | 588,168 | 636,448 | 516,141 | ||||||
Other liabilities | 51,565 | 55,054 | 51,314 | ||||||
Shareholders' equity | 747,728 | 746,007 | 767,358 | ||||||
Total Liabilities and Shareholders' Equity | $6,099,039 | $5,995,390 | $5,968,644 | ||||||
FIRST COMMONWEALTH FINANCIAL CORPORATION |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
For the Three Months Ended | |||||||||
March 31, | Yield/ | December 31, | Yield/ | March 31, | Yield/ | ||||
2013 | Rate | 2012 | Rate | 2012 | Rate | ||||
NET INTEREST MARGIN (Quarterly Averages) | |||||||||
Assets | |||||||||
Loans (FTE)(1)(5) | $4,222,606 | 4.38 | % | $4,214,000 | 4.48 | % | $4,115,483 | 4.81 | % |
Securities and interest bearing bank deposits (FTE)(1) | 1,238,020 | 2.34 | % | 1,165,991 | 2.52 | % | 1,183,007 | 2.92 | % |
Total Interest-Earning Assets (FTE)(1) | 5,460,626 | 3.92 | % | 5,379,991 | 4.06 | % | 5,298,490 | 4.39 | % |
Noninterest-earning assets | 569,277 | 582,755 | 602,863 | ||||||
Total Assets | $6,029,903 | $5,962,746 | $5,901,353 | ||||||
Liabilities and Shareholders' Equity | |||||||||
Interest-bearing demand and savings deposits | $2,606,695 | 0.15 | % | $2,609,722 | 0.16 | % | $2,576,259 | 0.22 | % |
Time deposits | 1,141,576 | 1.14 | % | 1,082,785 | 1.28 | % | 1,203,668 | 1.62 | % |
Short-term borrowings | 355,912 | 0.25 | % | 365,697 | 0.28 | % | 334,454 | 0.27 | % |
Long-term borrowings | 280,152 | 2.80 | % | 237,975 | 3.20 | % | 207,338 | 3.83 | % |
Total Interest-Bearing Liabilities | 4,384,335 | 0.59 | % | 4,296,179 | 0.62 | % | 4,321,719 | 0.79 | % |
Noninterest-bearing deposits | 849,007 | 853,520 | 764,667 | ||||||
Other liabilities | 49,295 | 48,565 | 50,312 | ||||||
Shareholders' equity | 747,266 | 764,482 | 764,655 | ||||||
Total Noninterest-Bearing Funding Sources | 1,645,568 | 1,666,567 | 1,579,634 | ||||||
Total Liabilities and Shareholders' Equity | $6,029,903 | $5,962,746 | $5,901,353 | ||||||
Net Interest Margin (FTE) (annualized)(1) | 3.45 | % | 3.57 | % | 3.75 | % |
FIRST COMMONWEALTH FINANCIAL CORPORATION | ||||||||
CONSOLIDATED FINANCIAL DATA | ||||||||
Unaudited | ||||||||
(dollars in thousands) | ||||||||
March 31, | December 31, | March 31, | ||||||
2013 | 2012 | 2012 | ||||||
ASSET QUALITY DETAIL | ||||||||
Nonperforming Loans: | ||||||||
Loans on nonaccrual basis | $31,576 | $43,539 | $36,405 | |||||
Loans on nonaccrual basis held for sale | 0 | 0 | 8,076 | |||||
Troubled debt restructured loans on nonaccrual basis | 32,565 | 50,979 | 41,690 | |||||
Troubled debt restructured loans on accrual basis | 14,140 | 13,037 | 3,482 | |||||
Total Nonperforming Loans | $78,281 | $107,555 | $89,653 | |||||
Other real estate owned ("OREO") | 10,933 | 11,262 | 21,335 | |||||
Repossessions ("Repo") | 742 | 575 | 757 | |||||
Total Nonperforming Assets | $89,956 | $119,392 | $111,745 | |||||
Loans past due in excess of 90 days and still accruing | $3,927 | $2,447 | $8,126 | |||||
Criticized loans | 254,866 | 288,502 | 265,526 | |||||
Nonperforming assets as a percentage of total loans, plus OREO | ||||||||
and Repos | 2.13 | % | 2.83 | % | 2.69 | % | ||
Allowance for credit losses | $62,262 | $67,187 | $60,732 | |||||
For the Three Months Ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2013 | 2012 | 2012 | ||||||
Net Charge-offs (Recoveries): | ||||||||
Commercial, financial, agricultural and other | $410 | $174 | $1,676 | |||||
Real estate construction | 72 | 784 | 134 | |||||
Commercial real estate | 8,447 | 59 | 77 | |||||
Residential real estate | (401) | 753 | 1,579 | |||||
Loans to individuals | 894 | 863 | 823 | |||||
Net Charge-offs | $9,422 | $2,633 | $4,289 | |||||
Net charge-offs as a percentage of average loans | ||||||||
outstanding (annualized) | 0.90 | % | 0.25 | % | 0.42 | % | ||
Provision for credit losses as a percentage of net charge-offs | 47.73 | % | 216.71 | % | 88.30 | % | ||
Provision for credit losses | $4,497 | $5,706 | $3,787 | |||||
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." | |||||||||
March 31, | December 31, | March 31, | |||||||
2013 | 2012 | 2012 | |||||||
Tangible Equity: | |||||||||
Total shareholders' equity | $747,728 | $746,007 | $767,358 | ||||||
Less: intangible assets | 161,973 | 162,331 | 163,428 | ||||||
Tangible Equity | 585,755 | 583,676 | 603,930 | ||||||
Less: preferred stock | 0 | 0 | 0 | ||||||
Tangible Common Equity | $585,755 | $583,676 | $603,930 | ||||||
Tangible Assets: | |||||||||
Total assets | $6,099,039 | $5,995,390 | $5,968,644 | ||||||
Less: intangible assets | 161,973 | 162,331 | 163,428 | ||||||
Tangible Assets | $5,937,066 | $5,833,059 | $5,805,216 | ||||||
(3)Tangible Common Equity as a percentage of Tangible Assets | 9.87 | % | 10.01 | % | 10.40 | % | |||
Shares Outstanding at End of Period | 99,298,120 | 99,629,494 | 105,050,018 | ||||||
(4)Tangible Book Value Per Common Share | $5.90 | $5.86 | $5.75 | ||||||
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. | |||||||||