First Commonwealth Announces First Quarter 2015 Financial Results; Declares Quarterly Dividend
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INDIANA, PA -- (Marketwired) -- 04/28/15 -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the first quarter of 2015.
First Quarter 2015 Highlights
Profitability
- Improvement in return on average assets, return on average equity, earnings per share, net interest margin and efficiency compared to the prior quarter and the prior year
Net Income
- First quarter net income improved to $14.2 million, or $0.16 diluted earnings per share. Net income was impacted by the following items:
- Net interest income improved due to an increase in asset yields, reduction in funding costs and a special Federal Home Loan Bank (FHLB) dividend of $1.0 million;
- Net interest margin expanded 13 basis points to 3.35% as compared to the linked quarter, of which seven basis points were attributable to the FHLB dividend;
- Asset quality continued to improve, with nonperforming loans decreasing $6.0 million, or 10.9%, compared to the prior quarter and the provision for loan losses declining to $1.2 million; and
- Noninterest income, excluding net securities gains, increased $0.7 million, or 5.2%, over the linked quarter, driven by a 23% increase in insurance and retail brokerage commissions.
"Our performance in the first quarter is largely built upon the foundation established through our 2014 strategic initiatives, including our systems conversion, mortgage launch, corporate banking expansion into Northeast Ohio and the acquisition of an insurance agency," stated T. Michael Price, President and Chief Executive Officer. "Our management of expenses has remained disciplined, and we continue to realize savings as a result of the conversion. At the same time, we have maintained our momentum in growing average loans, and we have seen encouraging movement in our net interest margin."
Financial Summary
(dollars in thousands,
except per share data) March 31, December 31, March 31,
2015 2014 2014
--------------------------------------------
Net Income $ 14,221 $ 7,729 $ 12,300
Diluted earnings per share $ 0.16 $ 0.08 $ 0.13
Return on average assets 0.91% 0.48% 0.80%
Return on average equity 8.03% 4.26% 6.97%
Efficiency Ratio 64.2% 78.45% 64.98%
Net Interest Margin (FTE) 3.35% 3.22% 3.33%
Financial Results Summary
For the three months ended March 31, 2015, net income was $14.2 million, or $0.16 diluted earnings per share, compared to net income of $7.7 million, or $0.08 diluted earnings per share, in the fourth quarter of 2014 and net income of $12.3 million, or $0.13 diluted earnings per share, in the first quarter of 2014. The increase in net income compared to the fourth quarter of 2014 was driven by a decrease in the provision for credit losses of $1.4 million, an increase in net interest income of $1.0 million, an increase in noninterest income, excluding net securities gains, of $0.7 million and a decrease in noninterest expense of $7.5 million. The decrease in noninterest expense is primarily a result of nonrecurring expenses in the prior quarter that included a legal contingency reserve and a building donation to a local university, which were offset by a partial recovery of a previous external fraud loss.
Return on average assets and return on average equity were 0.91% and 8.03%, respectively, for the first quarter of 2015, as compared to 0.80% and 6.97% in the first quarter of 2014.
Net Interest Income and Net Interest Margin
First quarter 2015 net interest income, on a fully taxable-equivalent basis, increased by $1.0 million to $48.0 million, as compared to $47.0 million in the fourth quarter of 2014. The increase from the prior quarter was primarily the result of a 13 basis point increase in the net interest margin to 3.35%. The yield on interest-earning assets improved by 11 basis points, of which seven basis points was attributable to a special FHLB dividend of $1.0 million. A two basis point decline in funding costs and a $20.9 million increase in average interest-earning assets also contributed to the improvement in net interest income.
As compared to the first quarter of 2014, net interest income, on a fully taxable-equivalent basis, increased by $1.5 million. The net interest margin of 3.35% in the first quarter of 2015 was two basis points higher than in the first quarter of 2014 due to the aforementioned $1.0 million FHLB special dividend, a $159.6 million, or 2.8%, increase in average interest-earning assets and a nine basis point decline in funding costs, partially offset by a six basis point decline in the yield on interest-earning assets between the periods.
Based on average balances, loan growth for the first quarter of 2015 was $48.2 million over the prior quarter and $170.9 million over the year-ago quarter. The fourth quarter average loan balance did not reflect a substantial amount of loans booked toward the end of the quarter. End of period loan balances declined by $16.3 million from December 31, 2014 to March 31, 2015, as growth in commercial loans was more than offset by declines in direct installment loan balances.
Average deposits decreased $95.1 million in the first quarter of 2015 from the prior quarter and $290.8 million from the same year-ago quarter, partially due to the intentional runoff of higher-cost brokered time deposits in favor of more cost-effective short-term borrowings. Average brokered time deposits decreased by $79.9 million in the first quarter of 2015 and $174.1 million from the year-ago quarter. As a result, average short-term borrowings increased $129.5 million from the prior quarter and $488.1 million over the year-ago period. Average noninterest-bearing demand deposits increased $7.0 million as compared to the prior quarter and $106.2 million from the year-ago quarter. Noninterest-bearing demand deposits currently comprise 24.2% of total deposits. Average interest-bearing demand and savings deposits decreased $56.3 million from the year-ago period, but increased $25.7 million from the prior quarter.
Credit Quality
The provision for credit losses totaled $1.2 million for the three months ended March 31, 2015, a decrease of $1.4 million as compared to the prior quarter and a decrease of $2.1 million from the same quarter last year.
At March 31, 2015, nonperforming loans were $49.2 million, a decrease of $6.0 million from December 31, 2014 and a decrease of $7.0 million from March 31, 2014. Nonperforming loans as a percentage of total loans were 1.11%, 1.24% and 1.32% for the periods ended March 31, 2015, December 31, 2014 and March 31, 2014, respectively.
During the first quarter of 2015, net charge-offs were $6.5 million, compared to $1.3 million in the prior quarter and $3.0 million in the first quarter of 2014. Net charge-offs for the quarter included $3.1 million for a loan to an energy company that was classified as nonaccrual during the third quarter of 2013. A loan loss reserve of $2.4 million had been previously set aside for this credit. Also included in net charge-offs in the first quarter of 2015 was a $1.2 million write-down on a nonaccrual loan to an equipment distributor, and the remaining outstanding balance of $3.0 million for this credit was transferred to loans held for sale. A loan loss reserve of $2.7 million had been set aside for this credit. There were no significant individual charge-offs in the fourth and first quarters of 2014.
The allowance for credit losses was $46.7 million at March 31, 2015, and as a percentage of total loans outstanding was 1.05%, 1.17% and 1.28% for March 31, 2015, December 31, 2014 and March 31, 2014, respectively. General reserves as a percentage of non-impaired loans were 0.98%, 0.97% and 1.05% for March 31, 2015, December 31, 2014 and March 31, 2014, respectively.
Other real estate owned (OREO) acquired through foreclosure was $7.0 million at March 31, 2015 as compared to $7.2 million at December 31, 2014 and $10.1 million at March 31, 2014. There were no significant additions to OREO in the first quarter of 2015.
Noninterest Income
Noninterest income, excluding net securities gains, increased $0.7 million, or 5.2%, in the first quarter of 2015 as compared to the prior quarter and decreased $0.8 million, or 5.6%, compared to the same quarter last year. The increase from the prior quarter is primarily the result of an increase of $0.6 million in commercial loan swap-related revenues included in other income and a $0.4 million increase in insurance and retail brokerage commissions due to increased production and our recent agency acquisition, offset by a decrease of $0.3 million in service charges on deposit accounts. The decrease from the prior-year period of $0.8 million is primarily related to decreases of $0.5 million in service charges on deposit accounts and a prior period gain of $1.2 million from the sale of our registered advisory business in the first quarter of 2014, offset by a $0.8 million increase in insurance and retail brokerage commissions due to increased production and our recent agency acquisition. Service charges on deposit accounts were down primarily due to lower fees for overdrafts and insufficient funds.
There were $0.1 million in securities gains in the first quarter of 2015 related to the liquidation of a trust preferred security. 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.
Noninterest Expense
Noninterest expense decreased $7.5 million in the first quarter of 2015 from the prior quarter and remained flat as compared to the first quarter of 2014. The decrease compared to the linked quarter is primarily attributable to the aforementioned $8.6 million legal reserve and $0.7 million building donation to a local university in the fourth quarter of 2014, which were partially offset by a $2.1 million external fraud recovery in the fourth quarter of 2014. Other improvements compared to the prior quarter included $0.3 million less in collection and repossession expense, $0.3 million less in professional fees and services and a sales tax refund of $0.3 million included in other operating expense. These improvements in expense in the first quarter were offset by an increase of $0.8 million in occupancy expense due to higher snow removal and utilities, a $0.8 million increase in debit card fraud losses primarily due to large merchant breaches reported in the fourth quarter of 2014, and a $0.3 million increase in reserves for unfunded loan commitments that is included in other operating expenses.
Changes in the composition of noninterest expense in the first quarter of 2015 as compared to the first quarter of 2014 included improvements of $2.4 million in IT conversion-related expenses that were incurred in the first quarter of 2014, a decrease of $0.6 million in furniture and equipment expense related to less software/hardware maintenance and programming post conversion, and a sales tax refund of $0.3 million included in other operating expense in the first quarter of 2015. Also affecting the comparison of the periods was a partial recovery of $0.9 million for a 2012 external fraud loss in the prior year period. Increases in expense compared to the year-ago period included $0.9 million in salaries and benefits (due in part to the launch of our mortgage initiative and the acquisition of an insurance agency), $0.4 million in occupancy expense due to higher snow removal and utilities, as well as a $0.8 million increase in debit card fraud losses primarily due to large merchant breaches reported in the fourth quarter of 2014, and a $0.8 million increase in reserves for unfunded loan commitments included in other operating expenses.
Full time equivalent staff declined to 1,299 at March 31, 2015 from 1,333 at March 31 2014. 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 64.20% and 64.98% for the three months ended March 31, 2015 and 2014, respectively.
Dividends and Capital
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.07 per share, which is payable on May 22, 2015 to shareholders of record as of May 8, 2015. This dividend represents a 3.1% projected annual yield utilizing the April 27, 2015 closing market price of $8.90.
On January 27, 2015, First Commonwealth's Board of Directors authorized an additional $25.0 million common stock repurchase program, under which the corporation repurchased 2,171,403 shares at an average price of $8.57 per share in the first quarter, totaling $18.6 million.
First Commonwealth's capital ratios for Total, Tier I, Leverage and Common Equity Tier I at March 31, 2015 were 12.3%, 11.4%, 9.9% and 10.1%, respectively. Our current capital levels 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 first quarter 2015 on Wednesday, April 29, 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 $6.3 billion in total assets, 110 banking offices in 15 counties throughout western and central Pennsylvania, and a Corporate Banking Business Center in northeast Ohio. 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. Factors that could cause actual results, performance or achievements to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national and international economic conditions and the impact they may have on First Commonwealth and its customers; (2) volatility and disruption in national and international financial markets; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (4) inflation, interest rate, commodity price, securities market and monetary fluctuations; (5) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth must comply; (6) the soundness of other financial institutions; (7) political instability; (8) impairment of First Commonwealth's goodwill or other intangible assets; (9) acts of God or of war or terrorism; (10) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (11) changes in consumer spending, borrowings and savings habits; (12) changes in the financial performance and/or condition of First Commonwealth's borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealth's ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealth's markets and among banking organizations and other financial service providers; (17) the ability to increase market share and control expenses; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) the reliability of First Commonwealth's vendors, internal control systems or information systems; (20) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (21) other risks and uncertainties described in the reports that First Commonwealth files with the Securities and Exchange Commission, including its most recent Annual Report on Form 10‐K. 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.
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,
2015 2014 2014
--------------------------------------------
SUMMARY RESULTS OF OPERATIONS
Net interest income (FTE)(1) $ 47,990 $ 46,978 $ 46,468
Provision for credit losses 1,159 2,575 3,231
Noninterest income 14,191 13,887 14,920
Noninterest expense 39,854 47,359 39,887
Net income 14,221 7,729 12,300
Earnings per common share
(diluted) $ 0.16 $ 0.08 $ 0.13
KEY FINANCIAL RATIOS
Return on average assets 0.91% 0.48% 0.80%
Return on average shareholders'
equity 8.03% 4.26% 6.97%
Efficiency ratio(2) 64.20% 78.45% 64.98%
Net interest margin (FTE)(1) 3.35% 3.22% 3.33%
Book value per common share $ 7.95 $ 7.81 $ 7.61
Tangible book value per common
share(4) 6.13 6.03 5.90
Market value per common share 9.00 9.22 9.04
Cash dividends declared per
common share 0.07 0.07 0.07
ASSET QUALITY RATIOS
Nonperforming loans as a
percent of end-of-period
loans(5) 1.11% 1.24% 1.32%
Nonperforming assets as a
percent of total assets(5) 0.89% 0.99% 1.08%
Net charge-offs as a percent of
average loans (annualized) 0.59% 0.12% 0.28%
Allowance for credit losses as
a percent of nonperforming
loans(6) 101.09% 94.21% 96.98%
Allowance for credit losses as
a percent of end-of-period
loans(6) 1.05% 1.17% 1.28%
CAPITAL RATIOS
Shareholders' equity as a
percent of total assets 11.3% 11.3% 11.5%
Tangible common equity as a
percent of tangible assets(3) 8.9% 8.9% 9.2%
Leverage Ratio 9.9% 9.9% 10.0%
Risk Based Capital - Tier I 11.4% 11.7% 12.4%
Risk Based Capital - Total 12.3% 12.8% 13.6%
Common Equity Tier I 10.1% 10.4% 11.0%
(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,
2015 2014 2014
---------------------------------------------------------------------------------
INCOME STATEMENT
Interest income $ 51,085 $ 50,420 $ 50,506
Interest expense 3,913 4,267 4,915
---------------------------------------------------------------------------------
Net Interest Income 47,172 46,153 45,591
Taxable equivalent adjustment(1) 818 825 877
---------------------------------------------------------------------------------
Net Interest Income (FTE) 47,990 46,978 46,468
Provision for credit losses 1,159 2,575 3,231
---------------------------------------------------------------------------------
Net Interest Income after Provision for Credit Losses (FTE) 46,831 44,403 43,237
Net securities gains 105 500 -
Trust income 1,421 1,413 1,435
Service charges on deposit accounts 3,318 3,629 3,792
Insurance and retail brokerage commissions 2,195 1,779 1,395
Income from bank owned life insurance 1,354 1,371 1,369
Gain on sale of assets 663 508 1,581
Card related interchange income 3,418 3,602 3,366
Other income 1,717 1,085 1,982
---------------------------------------------------------------------------------
Total Noninterest Income 14,191 13,887 14,920
Salaries and employee benefits 21,892 22,038 21,044
Net occupancy expense 3,911 3,150 3,506
Furniture and equipment expense(7) 2,680 2,762 5,330
Data processing expense 1,438 1,531 1,468
Pennsylvania shares tax expense 794 994 711
Intangible amortization 156 101 178
Collection and repossession expense 511 813 709
Other professional fees and services 930 1,209 1,024
FDIC insurance 1,059 1,028 1,049
Litigation and operational losses (recoveries) 1,000 7,059 (689)
Loss on sale or write-down of assets 262
354 435
Conversion related expenses(8) - 112 354
Other operating expenses 5,221 6,208 4,768
---------------------------------------------------------------------------------
Total Noninterest Expense 39,854 47,359 39,887
Income before Income Taxes 21,168 10,931 18,270
Taxable equivalent adjustment(1) 818 825 877
Income tax provision 6,129 2,377 5,093
---------------------------------------------------------------------------------
Net Income $ 14,221 $ 7,729 $ 12,300
=================================================================================
Shares Outstanding at End of Period 89,656,007 91,723,028 94,223,883
Average Shares Outstanding Assuming Dilution 90,889,035 91,598,411 94,568,059
(7) - Includes $2.1 million of accelerated depreciation expense related to the technology conversion for the three month period ended March
31, 2014.
(8) - Does not include accelerated depreciation expense described in Note 7.
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
March 31, December 31, March 31,
2015 2014 2014
--------------------------------------------
BALANCE SHEET (Period End)
Assets
Cash and due from banks $ 62,161 $ 72,276 $ 82,327
Interest-bearing bank
deposits 3,124 2,262 9,087
Securities available for
sale, at fair value 1,316,361 1,354,364 1,385,086
Securities held to maturity,
at amortized cost 30,253 - -
Loans held for sale 5,892 2,502 -
Loans 4,437,601 4,457,308 4,252,213
Allowance for credit losses (46,697) (52,051) (54,506)
-------------- -------------- --------------
Net loans 4,390,904 4,405,257 4,197,707
Goodwill and other
intangibles 162,937 163,094 160,504
Other assets 360,210 360,530 374,686
-------------- -------------- --------------
Total Assets $ 6,331,842 $ 6,360,285 $ 6,209,397
============== ============== ==============
Liabilities and Shareholders'
Equity
Noninterest-bearing demand
deposits $ 1,039,929 $ 989,027 $ 966,956
Interest-bearing demand
deposits 73,112 81,851 91,399
Savings deposits 2,462,986 2,402,288 2,474,923
Time deposits 717,722 842,345 1,114,539
-------------- -------------- --------------
Total interest-bearing
deposits 3,253,820 3,326,484 3,680,861
Total deposits 4,293,749 4,315,511 4,647,817
Short-term borrowings 1,125,520 1,105,876 572,965
Long-term borrowings 136,491 161,626 216,435
-------------- -------------- --------------
Total borrowings 1,262,011 1,267,502 789,400
Other liabilities 63,222 61,127 55,397
Shareholders' equity 712,860 716,145 716,783
-------------- -------------- --------------
Total Liabilities and
Shareholders' Equity $ 6,331,842 $ 6,360,285 $ 6,209,397
============== ============== ==============
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/
2015 Rate 2014 Rate 2014 Rate
---------------------------------------------------------
NET INTEREST MARGIN
Assets
Loans (FTE)(1) $ 4,478,240 3.92% $ 4,430,036 3.89% $ 4,307,373 4.14%
Securities and
interest
bearing bank
deposits
(FTE)(1) 1,339,682 2.60% 1,367,020 2.26% 1,350,917 2.22%
----------- ------------ -----------
Total
Interest-
Earning
Assets
(FTE)(1) 5,817,922 3.62% 5,797,056 3.51% 5,658,290 3.68%
Noninterest-
earning assets 540,469 546,385 564,689
----------- ------------ -----------
Total Assets $ 6,358,391 $ 6,343,441 $ 6,222,979
=========== ============ ===========
Liabilities and
Shareholders'
Equity
Interest-bearing
demand and
savings
deposits $ 2,501,145 0.10% $ 2,475,405 0.10% $ 2,557,406 0.10%
Time deposits 789,272 0.77% 917,056 0.83% 1,130,062 1.03%
Short-term
borrowings 1,141,098 0.34% 1,011,612 0.33% 653,045 0.29%
Long-term
borrowings 147,389 2.22% 174,288 1.98% 216,503 1.76%
----------- ------------ -----------
Total
Interest-
Bearing
Liabilities 4,578,904 0.35% 4,578,361 0.37% 4,557,016 0.44%
Noninterest-
bearing
deposits 1,002,498 995,508 896,286
Other
liabilities 58,674 49,407 53,563
Shareholders'
equity 718,315 720,165 716,114
----------- ------------ -----------
Total
Noninterest-
Bearing
Funding
Sources 1,779,487 1,765,080 1,665,963
----------- ------------ -----------
Total Liabilities
and Shareholders'
Equity $ 6,358,391 $ 6,343,441 $ 6,222,979
=========== ============ ===========
Net Interest
Margin (FTE)
(annualized)(1) 3.35% 3.22% 3.33%
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
March 31, December 31, March 31,
2015 2014 2014
--------------------------------------------
ASSET QUALITY DETAIL
Nonperforming Loans:
Loans on nonaccrual basis $ 24,587 $ 25,715 $ 33,353
Troubled debt restructured
loans held for sale on
nonaccrual basis 3,011 - -
Troubled debt restructured
loans on nonaccrual basis 8,978 16,952 12,327
Troubled debt restructured
loans on accrual basis 12,630 12,584 10,523
--------------------------------------------
Total Nonperforming Loans $ 49,206 $ 55,251 $ 56,203
Other real estate owned
("OREO") 7,025 7,197 10,080
Repossessions ("Repo") 417 432 544
--------------------------------------------
Total Nonperforming Assets $ 56,648 $ 62,880 $ 66,827
Loans past due in excess of 90
days and still accruing $ 4,245 $ 2,619 $ 2,450
Classified loans 58,393 67,756 81,229
Criticized loans 122,216 140,126 147,456
Nonperforming assets as a
percentage of total loans,
plus OREO and Repos 1.27% 1.41% 1.57%
Allowance for credit losses $ 46,697 $ 52,051 $ 54,506
For the Three Months Ended
March 31, December 31, March 31,
2015 2014 2014
--------------------------------------------
Net Charge-offs (Recoveries):
Commercial, financial,
agricultural and other $ 4,880 $ 445 $ 1,516
Real estate construction - (871) (169)
Commercial real estate 64 (141) 120
Residential real estate 470 637 851
Loans to individuals 1,099 1,238 632
--------------------------------------------
Net Charge-offs $ 6,513 $ 1,308 $ 2,950
Net charge-offs as a percentage
of average loans outstanding
(annualized) 0.59% 0.12% 0.28%
Provision for credit losses as
a percentage of net charge-
offs 17.80% 196.87% 109.53%
Provision for credit losses $ 1,159 $ 2,575 $ 3,231
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,
2015 2014 2014
-------------- -------------- --------------
Tangible Equity:
Total shareholders' equity $ 712,860 $ 716,145 $ 716,783
Less: intangible assets 162,937 163,094 160,504
-------------- -------------- --------------
Tangible Equity 549,923 553,051 556,279
Less: preferred stock - - -
-------------- -------------- --------------
Tangible Common Equity $ 549,923 $ 553,051 $ 556,279
Tangible Assets:
Total assets $ 6,331,842 $ 6,360,285 $ 6,209,397
Less: intangible assets 162,937 163,094 160,504
-------------- -------------- --------------
Tangible Assets $ 6,168,905 $ 6,197,191 $ 6,048,893
(3)Tangible Common Equity as a
percentage of Tangible Assets 8.91% 8.92% 9.20%
Shares Outstanding at End of
Period 89,656,007 91,723,028 94,223,883
(4)Tangible Book Value Per
Common Share $ 6.13 $ 6.03 $ 5.90
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.
Contact: Investor Relations: Ryan M. Thomas Vice President / Finance and Investor Relations 724-463-1690 [email protected]
Source: First Commonwealth Financial Corporation
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