First Commonwealth Financial Corporation reported financial results for the first quarter of 2009. Core net income decreased 25.1% from the first quarter of 2008 to $8.1 million due to an increase in provisions for credit losses and higher expenses, partly offset by higher net interest income and lower taxes. Net charge-offs increased to $19.5 million in the first quarter. Non-performing loans decreased $26.9 million. First Commonwealth recognized $9.9 million in impairment losses relating to trust preferred securities and bank equity securities.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Q1 2009 Earning Report of First Commonwealth Financial Corporation
1. FCF 8-K 4/23/2009
Section 1: 8-K (FORM 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): April 23, 2009
First Commonwealth Financial Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania 001-11138 25-1428528
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
22 N. Sixth 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 communication 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))
2. Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 23, 2009, First Commonwealth Financial Corporation issued a press release announcing its earnings for the three month period ended
March 31, 2009. 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 - Press Release dated April 23, 2009.
3. 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: April 23, 2009
FIRST COMMONWEALTH FINANCIAL
CORPORATION
(Registrant)
By: /s/ EDWARD J. LIPKUS, III
Edward J. Lipkus, III
Executive Vice President and
Chief Financial Officer
(Back To Top)
Section 2: EX-99.1 (PRESS RELEASE)
Exhibit 99.1
*** NEWS RELEASE ***
TO: All Area News Agencies
FROM: First Commonwealth
Financial Corporation
DATE: April 23, 2009
First Commonwealth Announces First Quarter 2009 Financial Results
Growth in Loans and Low Cost Deposits Continues
Indiana, PA., April 23, 2009 - First Commonwealth Financial Corporation (NYSE: FCF), the holding company for First Commonwealth Bank,
announced today financial results for the first quarter ended March 31, 2009.
First Quarter Results
First Commonwealth reported first quarter 2009 core net income, or net income excluding impairment losses and securities gains and losses, of $8.1
million or $0.10 per diluted share. Core net income decreased $2.7 million, or 25.1%, from the first quarter of 2008 primarily due to the increase in the
provision for credit losses and higher non-interest expenses, partly offset by an increase in net interest income and lower income taxes.
First quarter of 2009 annualized core return on average equity and average assets was 4.95% and 0.51%, respectively, compared to 7.50% and
0.72% for the same period last year.
Developments during the first quarter included:
• Total loans increased $39.0 million.
• Non-accrual loans decreased $26.9 million.
• Net charge-offs increased to $19.5 million.
• The company recorded impairment losses of $9.9 million ($6.4 million after tax) relating to trust preferred collateralized debt obligations
and bank equity securities.
• First Commonwealth Bank opened a new community banking office in Butler and relocated its New Alexandria office to a more visible,
high traffic location.
1
4. GAAP net income for the first quarter 2009 was $1.7 million or $0.02 per diluted share, as compared to $11.1 million or $0.15 per diluted share for the
same period in 2008. The decrease in GAAP net income was primarily the result of non-cash charges of $9.9 million ($6.4 million after tax) for other-
than-temporary impairment recorded on four trust preferred collateralized debt obligations and four bank equity securities in addition to the $5.1
million ($3.2 million after tax) increase in the provision for credit losses.
Average diluted shares in the first quarter 2009 were 16.6% greater than the comparable quarter in 2008 primarily due to the issuance of 11.5 million
shares of common stock from our capital raise completed on November 5, 2008. First quarter 2009 annualized GAAP return on average equity and
average assets was 1.03% and 0.11%, respectively, compared to 7.73% and 0.75% for the prior year period.
“We continue to experience growth in loans, low-cost deposits, and client households, although external factors have impeded our earnings. We
are capitalizing on the opportunities that have arisen from the market disruptions within our competitive footprint,” said John J. Dolan, President
and CEO. Dolan added “We recognized $19.5 million in net charge-offs in the first quarter, which reduced non-accrual loans resulting in an
improvement in credit quality. We also minimized some of the uncertainties in the loan portfolio by taking possession of properties securing two
large credits. Our loan participation portfolio continues to perform well both in and out of Pennsylvania.”
Net Interest Income and Margin
Net interest income increased $9.5 million, or 23.2%, in the first quarter of 2009 from the first quarter of 2008. The increase was a result of both
growth in earning assets and a decline in the cost of interest-bearing liabilities.
The net interest margin on a tax equivalent basis for the first quarter 2009 increased 44 basis points to 3.72% compared with 3.28% in the
corresponding period last year. The increase in our net interest margin can be attributed to increased loan volume and declines in the cost of
interest-bearing liabilities exceeding the declines in yields on total interest-earning assets. The decrease in the cost of interest-bearing liabilities
can be attributed to lower interest rates, combined with a shift in the mix of our liabilities to low cost deposits and short-term borrowings from time
deposits and long-term debt.
Management continued to supplement deposit growth with wholesale borrowing due to the significant spread between wholesale borrowing costs
and rates paid on time deposits. In the first quarter of 2009 compared to the first quarter of 2008, average time deposits decreased $337.8 million or
15.6% which were mostly offset with increases in lower costing transaction and savings deposits. Average noninterest-bearing demand deposits
increased $50.4 million, or 9.9%, average interest-bearing demand deposits increased $12.1 million, or 2.1%, and average savings deposits
increased $226.3 million, or 20.8%.
Average interest-earning assets were $392.2 million, or 7.2%, higher in the first quarter of 2009 compared to the first quarter of 2008, driven by an
increase in average loans of $624.8 million, or 16.3%. This loan growth was partially funded by investment run-off and short-term
2
5. borrowings. Average investment securities decreased $232.8 million, and a portion of the increase in average short-term borrowings was also due
to refinancing $190.0 million of longer term FHLB advances in the fourth quarter of 2008. These advances were due to mature in the first seven
months of 2009 and were replaced with lower costing overnight borrowings.
Non-Interest Income
Core non-interest income, or non-interest income excluding impairment losses and securities gains and losses, decreased $373 thousand, or 2.9%,
in the first quarter of 2009 compared to the same period last year. This decrease was primarily due to the decline in service charges on deposit
accounts of $588 thousand as a result of lower overdraft activity. GAAP non-interest income for the first quarter of 2009 decreased $10.7 million
from the first quarter of 2008 primarily due to credit related other-than-temporary impairment losses of $8.4 million on trust preferred collateralized
debt obligations and $1.5 million on bank equity securities.
During the first quarter, First Commonwealth early adopted FSP FAS 115-2 and FAS 124-2 which requires that $9.9 million in credit related other-
than-temporary impairment be recognized in earnings while noncredit-related other-than-temporary impairment on securities not expected to be
sold be recognized in other comprehensive income (“OCI”).
In accordance with the new accounting guidance, the noncredit-related portion of other-than-temporary impairment losses previously recognized
in earnings during 2008 was reclassified as a cumulative effect adjustment that increased retained earnings and decreased accumulated OCI. Of the
$13.0 million in other-than-temporary impairment charges recognized in 2008, $6.5 million related to noncredit-related impairment. Therefore, the
cumulative effect adjustment to retained earnings totaled $6.5 million or $4.2 million, net of tax.
Non-Interest Expense
Non-interest expense for the first quarter of 2009 increased $4.5 million, or 11.6%, from the first quarter of 2008 primarily due to higher FDIC costs,
employee benefits and salaries. FDIC insurance costs rose $1.4 million primarily from premium increases. Employee benefits increased $1.2 million
due to higher health and 401(k) expenses. Salaries increased $924 thousand, or 6.1%, as a result of annual merit increases and a 3.9% increase in
the number of employees. The increase in the number of employees was due to new branch offices and enhancing the consumer infrastructure for
small business banking and retail brokerage.
“We have started an initiative to hold our non-interest expenses flat compared to 2008, excluding the impact of increased FDIC deposit insurance
premiums and special assessments,” said Mr. Dolan. “We expect that this initiative will save us approximately $3.0 million in 2009. We are
employing a disciplined approach to cost management that will not impede our ability to grow.”
Income Tax
The provision for income taxes for the first quarter of 2009 decreased $1.3 million from the same period in 2008 primarily due to the decrease in
income before taxes offset by a decline in nontaxable income and tax credits. First Commonwealth’s effective tax rate was 3.5% in the first
3
6. quarter of 2009 compared to 11.1% in the comparable quarter in 2008. Nontaxable income and tax credits had a greater impact on the effective tax
rate during the first quarter of 2009 due to lower pretax income compared to the first quarter of 2008.
Credit Quality and Provision for Credit Losses
For the quarter ending March 31, 2009, nonperforming loans decreased $26.9 million, or 47.9%, to $29.0 million from December 31, 2008. Net charge-
offs were $19.5 million in the first quarter 2009, primarily due to three commercial credit relationships totaling $39.5 million. These relationships were
mainly collateralized by equipment and real estate. Two properties were transferred to Other Real Estate Owned (OREO). We believe that the two
properties transferred to OREO have strong market interest and expect a favorable outcome. The aforementioned three loans accounted for $16.3
million, or 84%, of the net credit losses in the first quarter of 2009. These three loans had $14.8 million allocated to the allowance for credit losses at
December 31, 2008. Nonperforming loans as a percent of total loans decreased from 1.27% at December 31, 2008 to 0.65% at March 31, 2009
primarily as a result of these transfers. Net credit losses for the first quarter of 2008, totaled $4.0 million.
Loans past due in excess of 90 days and still accruing at March 31, 2009 increased $1.3 million to $17.5 million compared to December 31, 2008
primarily due to an increase in commercial loans.
The provision for credit losses for the first quarter of 2009 increased $5.1 million compared to the first quarter of 2008. The year over year increase
is attributed to loan growth, trends in losses and increased allocations for new nonperforming loans.
Participation loans outside of Pennsylvania totaled $376.4 million at March 31, 2009, an increase of $3.1 million, or 0.8%, compared to December 31,
2008. Nonperforming participation loans outside of Pennsylvania totaled $8.9 million with a reserve allocation of approximately $4.5 million. The
allocation remained unchanged from December 31, 2008 for these credits. There were no participation loans past due in excess of 90 days at
March 31, 2009.
Single Issue Trust Preferred Securities and Trust Preferred Collateralized Debt Obligations
First Commonwealth’s portfolio of single issue trust preferred securities and trust preferred collateralized debt obligations consists of 15 pooled
issues and 21 single-issue securities. The single issues are primarily from money center and large regional banks. The pooled instruments consist
of securities issued by 376 banks and other financial institutions. Two of our pooled securities are senior tranches and the remainder are mezzanine
tranches. The senior and mezzanine tranches of trust preferred collateralized debt obligations generally are protected from defaults by over-
collateralization and cash flow default protection provided by subordinated tranches, with senior tranches having the greatest protection and
mezzanine tranches subordinated to the senior tranches. At the time of initial issue, the tranches subordinated to our senior and mezzanine
tranches ranged in size from approximately 7.3% to 35.4% of the total principal amount of the respective securities, and no single issuer comprised
more than 5.0% of the total principal of the pool.
4
7. As of March 31, 2009, our single issue securities had a book value of $24.0 million and an estimated fair value of $14.2 million, while the book value
of the pooled securities totaled $95.0 million with an estimated fair value of $36.7 million. Additional detail related to our pooled trust preferred
securities is provided in the Consolidated Selected Financial Data portion of this press release. During the first quarter, all of the pooled
instruments were downgraded by Moody’s Investor Services. Two of the fifteen pooled issues, representing $12.5 million of the $95.0 million book
value, remain above investment grade. In the first quarter of 2009, an $8.4 million other-than-temporary impairment charge was recorded on four
trust preferred collateralized debt obligations that are expected to experience a principal shortfall. These obligations include Pre-TSL VI, Pre TSL
VII, Pre TSL VIII and MM Comm IX. The amount of impairment charge recognized represents the expected credit loss on these securities. Based on
management’s analysis as of March 31, 2009, all of the single issues and the remainder of the trust preferred collateralized debt obligations are
expected to return 100% of their principal and interest.
Use of Non-GAAP Financial Measure
This release includes core net income, core non-interest income and core non-interest expense which are non-GAAP (Generally Accepted
Accounting Principles) financial measures that are calculated by excluding impairment losses, securities gains and losses and asset impairment
charges from GAAP net income, GAAP non-interest income and GAAP non-interest expenses. Management believes that these core measures are
useful to the investment community in analyzing financial results and trends of First Commonwealth. This information facilitates comparisons with
prior periods and reflects the principal basis on which our management internally monitors financial performance. The table in the financial section
reconciles GAAP financial measures to non-GAAP financial measures for the periods presented.
About First Commonwealth Financial Corporation
First Commonwealth Financial Corporation is a $6.4 billion bank holding company headquartered in Indiana, Pennsylvania. It operates 115 retail
branch offices in 15 counties in western and central Pennsylvania through First Commonwealth Bank, a Pennsylvania chartered bank and trust
company. Financial services and insurance products are also provided through First Commonwealth Insurance Agency and First Commonwealth
Financial Advisors, Inc.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding the adequacy of First Commonwealth’s allowance for credit losses, liquidity and capital; expectations regarding the sale of
properties held as other real estate owned, and expected future cash flows from investments in trust preferred collateralized debt obligations.
Forward-looking 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.” Forward-looking statements describe First Commonwealth’s future plans, strategies and expectations.
These plans, strategies and expectations are based on assumptions and involve risks
5
8. and uncertainties, many of which are beyond the control of First Commonwealth and which may cause actual results, performance or achievements
to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Such risks and uncertainties
include, among other things:
• Deepened or prolonged weakness in economic and business conditions, nationally and in First Commonwealth’s market areas, which
could increase credit-related losses and expenses and limit growth;
• Further declines in the market value of investment securities that are considered to be other-than-temporary, which would negatively
impact First Commonwealth’s earnings and capital levels;
• Increases in defaults by borrowers and other delinquencies, which could result in an increased provision for credit losses on loans and
related expenses;
• Reduced wholesale funding capacity or higher borrowing costs due to capital constraints at the Federal Home Loan Bank, which would
reduce First Commonwealth’s liquidity and negatively impact earnings and net interest margin;
• Fluctuations in interest rates and market prices, which could reduce net interest margin and asset valuations and increase expenses;
• Changes in legislative or regulatory requirements applicable to First Commonwealth and its subsidiaries, which could increase costs,
limit certain operations and adversely affect results of operations;
• The inability to successfully execute First Commonwealth’s strategic growth initiatives, which could limit future revenue and earnings
growth; and
• Other risks and uncertainties described in First Commonwealth’s reports filed 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.
CONTACT: First Commonwealth Financial Corporation
Investor Relations: Edward J. Lipkus III, Executive Vice President and Chief Financial Officer 724-349-7220
Media: Susie Barbour, Communications & Media Relations Supervisor 724-463-5618
6
9. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
(dollars in thousands, except share data)
For the Quarter Ended
March 31, December 31, September 30, June 30, March 31,
2009 2008 2008 2008 2008
Interest Income
Interest and fees on loans $ 58,275 $ 64,580 $ 62,285 $ 62,614 $ 62,067
Interest and dividends on investments:
Taxable interest 13,708 14,434 15,013 15,578 15,531
Interest exempt from Federal income taxes 2,894 3,025 3,176 3,347 3,595
Dividends 63 389 663 678 609
Interest on Federal funds sold 0 0 0 2 0
Interest on bank deposits 1 1 2 2 5
Total interest income 74,941 82,429 81,139 82,221 81,807
Interest Expense
Interest on deposits 19,576 22,045 23,069 25,370 31,033
Interest on short-term borrowings 1,890 2,238 4,634 4,251 3,705
Interest on subordinated debentures 1,766 1,908 1,870 1,878 1,911
Interest on other long-term debt 1,110 3,582 3,639 3,791 4,074
Total interest on long-term debt 2,876 5,490 5,509 5,669 5,985
Total interest expense 24,342 29,773 33,212 35,290 40,723
Net Interest Income 50,599 52,656 47,927 46,931 41,084
Provision for credit losses 8,242 10,642 3,913 5,361 3,179
Net Interest Income after provision for credit losses 42,357 42,014 44,014 41,570 37,905
Non-Interest Income
Impairment (losses) on securities (28,589) (3,850) (8,619) (541) 0
Noncredit-related losses on securities not expected
to be sold (recognized in other comprehensive
income) 18,723 0 0 0 0
Net impairment (losses) (a) (9,866) (3,850) (8,619) (541) 0
Net securities gains 24 15 910 90 501
Trust income 1,087 1,125 1,444 1,538 1,532
Service charges on deposit accounts 3,837 4,555 4,792 4,786 4,425
Insurance and retail brokerage commissions 1,616 1,236 1,390 1,394 1,277
Income from bank owned life insurance 1,138 1,155 1,435 1,446 1,487
Card related interchange income 1,896 1,956 1,950 1,950 1,753
Other operating income 3,008 3,820 2,972 2,426 2,481
Total non-interest income 2,740 10,012 6,274 13,089 13,456
Non-Interest Expense
Salaries and employee benefits 22,500 21,658 21,091 20,428 20,330
Net occupancy expense 4,000 3,807 3,613 3,728 3,907
Furniture and equipment expense 2,975 2,845 2,995 3,058 3,078
Data processing expense 1,132 1,161 1,075 996 1,051
Pennsylvania shares tax expense 1,331 1,357 1,342 1,339 1,271
Intangible amortization 743 743 802 832 831
FDIC insurance 1,521 182 179 125 123
Other operating expenses 9,146 10,124 7,900 8,379 8,265
Total non-interest expense 43,348 41,877 38,997 38,885 38,856
Income before income taxes 1,749 10,149 11,291 15,774 12,505
Provision for income taxes 62 1,260 1,127 2,861 1,384
Net Income $ 1,687 $ 8,889 $ 10,164 $ 12,913 $ 11,121
Average Shares Outstanding 84,521,266 80,076,383 72,715,709 72,624,053 72,452,875
Average Shares Outstanding Assuming Dilution 84,594,211 80,179,260 72,817,216 72,734,711 72,559,668
Per Share Data:
Basic Earnings Per Share $ 0.02 $ 0.11 $ 0.14 $ 0.18 $ 0.15
Diluted Earnings Per Share $ 0.02 $ 0.11 $ 0.14 $ 0.18 $ 0.15
Cash Dividends Declared per Common Share $ 0.12 $ 0.17 $ 0.17 $ 0.17 $ 0.17
(a) In accordance with the early adoption of FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-than-Temporary Impairment,
as of January 1, 2009, prior period net impairment losses are not restated; but rather reflect both credit and non-credit related impairment.
10.
11. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
(dollars in thousands, except share data)
March 31, December 31, September 30, June 30, March 31,
2009 2008 2008 2008 2008
Assets
Cash and due from banks $ 93,259 $ 88,277 $ 93,327 $ 101,860 $ 92,554
Interest-bearing bank deposits 392 289 267 347 219
Securities available for sale, at market value 1,271,925 1,349,920 1,349,561 1,476,994 1,576,934
Securities held to maturity, at amortized cost, (Market value $46,951 at
March 31, 2009 and $50,558 at December 31, 2008) 46,433 50,840 56,839 59,200 65,935
Other Investments 51,431 51,431 52,967 47,112 46,854
Loans:
Portfolio loans, net of unearned income 4,457,358 4,418,377 4,184,600 4,113,423 3,893,183
Allowance for credit losses (41,549) (52,759) (45,482) (44,505) (41,613)
Net loans 4,415,809 4,365,618 4,139,118 4,068,918 3,851,570
Premises and equipment, net 73,376 72,636 71,141 69,890 69,191
Other real estate owned 25,936 3,262 3,718 3,271 3,280
Goodwill 159,956 159,956 159,956 159,956 159,956
Amortizing intangibles, net 9,490 10,233 10,976 11,778 12,609
Other assets 274,567 273,418 265,920 252,086 239,877
Total assets $6,422,574 $ 6,425,880 $ 6,203,790 $6,251,412 $6,118,979
Liabilities
Deposits (all domestic):
Noninterest-bearing $ 573,573 $ 566,845 $ 564,443 $ 568,158 $ 542,331
Interest-bearing 3,744,855 3,713,498 3,696,687 3,744,311 3,778,337
Total deposits 4,318,428 4,280,343 4,261,130 4,312,469 4,320,668
Short-term borrowings 1,172,104 1,152,700 875,424 834,226 642,869
Other liabilities 56,255 63,778 43,385 47,805 48,259
Subordinated debentures 105,750 105,750 105,750 105,750 105,750
Other long-term debt 122,537 170,530 386,288 404,464 426,955
Total long-term debt 228,287 276,280 492,038 510,214 532,705
Total liabilities 5,775,074 5,773,101 5,671,977 5,704,714 5,544,501
Shareholders’ Equity
Preferred stock, $1 par value per share, 3,000,000 shares authorized, none
issued 0 0 0 0 0
Common stock, $1 par value per share, 200,000,000 shares authorized;
86,600,461 shares issued and 85,055,220 shares outstanding at
March 31, 2009; 86,600,431 shares issued and 85,050,744 shares
outstanding at December 31, 2008 86,600 86,600 75,100 75,100 75,100
Additional paid-in capital 302,862 303,008 205,953 206,245 206,498
Retained earnings 305,712 309,947 315,404 317,611 317,058
Accumulated other comprehensive (loss) income, net (22,763) (21,269) (38,133) (22,604) 7,215
Treasury stock (1,545,211 and 1,549,687 shares at March 31, 2009 and
December 31, 2008, respectively, at cost) (17,811) (17,907) (18,411) (21,054) (22,293)
Unearned ESOP shares (7,100) (7,600) (8,100) (8,600) (9,100)
Total shareholders’ equity 647,500 652,779 531,813 546,698 574,478
Total liabilities and shareholders’ equity $6,422,574 $ 6,425,880 $ 6,203,790 $6,251,412 $6,118,979
Book value per share $ 7.61 $ 7.68 $ 7.23 $ 7.46 $ 7.85
Market value per share $ 8.87 $ 12.38 $ 13.47 $ 9.33 $ 11.59
12. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Loans by Categories
(dollars in thousands)
March 31, December 31, September 30, June 30, March 31,
2009 2008 2008 2008 2008
Commercial, financial, agricultural and other $1,259,597 $ 1,272,094 $ 1,148,666 $1,115,536 $1,052,971
Real estate - construction 402,569 418,639 338,303 307,278 241,114
Real estate - residential 1,203,917 1,215,193 1,227,225 1,235,334 1,230,928
Real estate - commercial 1,089,989 1,016,651 978,287 988,186 909,613
Loans to individuals 501,286 495,800 492,119 467,089 458,557
Total loans and leases, net of unearned income $4,457,358 $ 4,418,377 $ 4,184,600 $4,113,423 $3,893,183
13. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Quarter To Date Average Balance Sheets and Net Interest Analysis at March 31,
(dollars in thousands)
2009 2008
Average Balance Income/Expense Yield or Rate (a) Average Balance Income/Expense Yield or Rate (a)
Assets
Interest-earning assets:
Interest-bearing deposits
with banks $ 813 $ 1 0.50% $ 546 $ 5 3.71%
Tax-free investment
securities 258,227 2,894 6.99% 320,191 3,595 6.95%
Taxable investment
securities 1,150,320 13,771 4.86% 1,321,117 16,140 4.91%
Federal funds sold 0 0 0.00% 43 0 2.86%
Loans, net of unearned
income (b)(c) 4,460,337 58,275 5.45% 3,835,587 62,067 6.69%
Total interest-earning
assets 5,869,697 74,941 5.40% 5,477,484 81,807 6.27%
Noninterest-earning assets:
Cash 74,117 73,860
Allowance for credit losses (53,392) (42,358)
Other assets 528,270 487,546
Total noninterest-
earning assets 548,995 519,048
Total Assets $ 6,418,692 $ 5,996,532
Liabilities and Shareholders’
Equity
Interest-bearing liabilities:
Interest-bearing demand
deposits (d) $ 585,270 $ 549 0.38% $ 573,121 $ 1,747 1.23%
Savings deposits (d) 1,315,349 4,411 1.36% 1,089,059 5,348 1.98%
Time deposits 1,826,609 14,616 3.25% 2,164,394 23,938 4.45%
Short-term borrowings 1,192,817 1,890 0.64% 493,776 3,705 3.02%
Long-term debt 230,693 2,876 5.06% 549,016 5,985 4.38%
Total interest-bearing
liabilities 5,150,738 24,342 1.92% 4,869,366 40,723 3.36%
Noninterest-bearing liabilities and
capital:
Noninterest-bearing
demand deposits (d) 560,577 510,150
Other liabilities 45,381 38,054
Shareholders’ equity 661,996 578,962
Total noninterest-
bearing funding
sources 1,267,954 1,127,166
Total Liabilities
and
Shareholders’
Equity $ 6,418,692 $ 5,996,532
Net Interest Income and Net Yield
on Interest-Earning Assets $ 50,599 3.72% $ 41,084 3.28%
(a) Yields on interest-earning assets have been computed on a tax equivalent basis using the 35% Federal income tax statutory rate.
(b) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets.
(c) Loan income includes loan fees.
(d) Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings
deposits which were made for regulatory purposes.
14. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Asset Quality Data
(dollars in thousands)
March 31, December 31, September 30, June 30, March 31,
2009 2008 2008 2008 2008
Loans on non-accrual basis $ 29,049 $ 55,922 $ 49,692 $ 50,910 $ 48,799
Troubled debt restructured loans 128 132 135 139 143
Total nonperforming loans $ 29,177 $ 56,054 $ 49,827 $ 51,049 $ 48,942
Loans past due in excess of 90 days and still accruing $ 17,532 $ 16,189 $ 13,719 $ 14,210 $ 20,066
Loans outstanding at end of period $4,457,358 $ 4,418,377 $ 4,184,600 $4,113,423 $3,893,183
Average loans outstanding $4,460,337 $ 4,084,506 $ 4,011,476 $3,941,864 $3,835,587
Allowance for credit losses $ 41,549 $ 52,759 $ 45,482 $ 44,505 $ 41,613
Nonperforming loans as a percentage of total loans 0.65% 1.27% 1.19% 1.24% 1.26%
Provision for credit losses $ 8,242 $ 23,095 $ 12,453 $ 8,540 $ 3,179
Net credit losses $ 19,451 $ 12,732 $ 9,367 $ 6,431 $ 3,962
Net credit losses as a percentage of average loans outstanding
(annualized) 1.77% 0.31% 0.31% 0.33% 0.42%
Allowance for credit losses as a percentage of average loans
outstanding 0.93% 1.29% 1.13% 1.13% 1.08%
Allowance for credit losses as a percentage of nonperforming
loans 142.40% 94.12% 91.28% 87.18% 85.03%
Other real estate owned $ 25,936 $ 3,262 $ 3,718 $ 3,271 $ 3,280
Profitability Ratios
(dollars in thousands)
For the Quarter Ended
March 31, December 31, September 30, June 30, March 31,
2009 2008 2008 2008 2008
Return on average assets 0.11% 0.56% 0.65% 0.84% 0.75%
Return on average equity 1.03% 5.79% 7.38% 9.03% 7.73%
Net interest margin (a) 3.72% 3.87% 3.58% 3.54% 3.28%
Efficiency ratio (b) 65.29% 60.10% 59.07% 61.10% 66.78%
Fully tax equivalent adjustment $ 3,185 $ 3,166 $ 3,202 $ 3,078 $ 3,648
(a) Net interest margin has been computed on a tax equivalent basis using the 35% Federal income tax statutory rate.
(b) Efficiency ratio is “total non-interest expense” as a percentage of total revenue.
Total revenue consists of “net interest income, on a fully tax-equivalent basis,” plus “total non-interest income,” excluding “net impairment
losses.”
15. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Reconciliation of GAAP to Non-GAAP (a)
(dollars in thousands, except share data)
For the Quarter Ended
March 31, December 31, March 31,
2009 2008 2008
GAAP non-interest income $ 2,740 $ 10,012 $ 13,456
Less: net securities (losses) gains (9,842) (3,835) 501
Core non-interest income $ 12,582 $ 13,847 $ 12,955
GAAP non-interest expense $ 43,348 $ 41,877 $ 38,856
Less: low income housing partnership impairment 0 1,206 0
Core non-interest expense $ 43,348 $ 40,671 $ 38,856
GAAP net income $ 1,687 $ 8,889 $ 11,121
Less: net securities (losses) gains, net of tax (6,397) (2,493) 326
Plus: low income housing partnership impairment, net of tax 0 784 0
Core net income $ 8,084 $ 12,166 $ 10,795
GAAP diluted earnings per share $ 0.02 $ 0.11 $ 0.15
Less: net securities (losses) gains per diluted share $ (0.08) $ (0.03) $ 0.00
Plus: low income housing partnership impairment per diluted share $ 0.00 $ 0.01 $ 0.00
Core diluted earnings per share $ 0.10 $ 0.15 $ 0.15
GAAP return on average assets 0.11% 0.56% 0.75%
Less: net securities (losses) gains as a percentage of average assets -0.40% -0.16% 0.03%
Plus: low income housing partnership impairment as a percentage of average assets 0.00% 0.05% 0.00%
Core return on average assets 0.51% 0.77% 0.72%
GAAP return on average equity 1.03% 5.79% 7.73%
Less: net securities (losses) gains as a percentage of average equity -3.92% -1.62% 0.23%
Plus: low income housing partnership impairment as a percentage of average equity 0.00% 0.52% 0.00%
Core return on average equity 4.95% 7.93% 7.50%
(a) This release includes core net income, core non-interest income and core non-interest expense which are non-GAAP (Generally Accepted
Accounting Principles) financial measures that are calculated by excluding impairment losses, securities gains and losses and asset
impairment charges from GAAP net income, GAAP non-interest income and GAAP non-interest expenses. Management believes that these
core measures are useful to the investment community in analyzing financial results and trends of First Commonwealth. This information
facilitates comparisons with prior periods and reflects the principal basis on which our management internally monitors financial
performance.
16. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Pooled Trust Preferred Security Detail
(dollars in thousands)
Excess
Number Deferrals and Subordination
Book Fair Unrealized Moody’s/Fitch of Defaults as a % of as a % of Current
Deal Class Value Value Gain (Loss) Ratings Banks Current Collateral Performing Collateral
Pre TSL I Senior $ 3,706 $ 3,009 $ (697) A1/A 32 15.86% 116.27%
Pre TSL IV Mezzanine 1,830 730 (1,100) Ca/B 6 18.05% 51.03%
Pre TSL V Mezzanine 620 242 (378) Ba3/A 4 0.00% 73.54%
Pre TSL VI Mezzanine 369 175 (194) Caa1/CCC 5 61.35% 0.00%
Pre TSL VII Mezzanine 7,856 2,465 (5,391) Ca/CC 20 46.89% 0.00%
Pre TSL VIII Mezzanine 3,723 1,237 (2,486) Ca/CC 36 28.01% 0.00%
Pre TSL IX Mezzanine 3,000 932 (2,068) Ca/CC 49 12.85% 11.19%
Pre TSL X Mezzanine 4,000 1,218 (2,782) Ca/CC 58 17.92% 4.28%
Pre TSL XII Mezzanine 10,000 3,133 (6,867) Ca/CC 79 9.06% 12.43%
Pre TSL XIII Mezzanine 17,500 5,357 (12,143) Ca/CC 65 12.11% 12.36%
Pre TSL XIV Mezzanine 16,023 5,112 (10,911) Ca/CC 64 9.01% 19.67%
MMCap I Senior 8,838 6,703 (2,135) A3/A 29 9.15% 96.39%
MMCap I Mezzanine 1,063 508 (555) Ca/CCC 29 9.15% 12.05%
MM Comm IX Mezzanine 16,510 5,858 (10,652) Caa3/CC 34 16.65% 0.00%
Total $95,038 $36,679 $ (58,359)
17. FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED SELECTED FINANCIAL DATA
Participation Loans
(dollars in thousands)
Commercial,
Financial Loans Past Due
Agricultural Real Estate Real Estate 90 Days and
and Other Construction Commercial Total Still Accruing Nonaccrual
Pennsylvania $ 343,663 $ 36,595 $ 7,676 $387,934 $ 0 $ 0
Ohio 58,844 8,489 29,696 97,029 0 0
Maryland 57,966 0 0 57,966 0 0
West Virginia 27,455 0 0 27,455 0 0
Virginia 16,965 0 0 16,965 0 0
New York 3,521 7,027 1,831 12,379 0 0
Subtotal 508,414 52,111 39,203 599,728 0 0
Florida 18,868 43,552 0 62,420 0 2,500
Utah 0 5,015 0 5,015 0 5,015
Oregon 0 1,471 0 1,471 0 1,471
Other 66,093 29,597 0 95,690 0 0
Total $ 593,375 $ 131,746 $ 39,203 $764,324 $ 0 $ 8,986
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