FIRST COMMONWEALTH FINANCIAL CORPORATION 
By INDIANA, Pa., Jan. 29, 2014 /PRNewswire/ -- First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $9.3 million, or $0.10 diluted earnings per share, for the fourth quarter ended December 31, 2013, as compared to net income of $8.7 million, or $0.09 diluted earnings per share, in the fourth quarter of 2012. Included in the fourth quarter 2013 results were technology conversion related costs of $4.5 million, or $0.03 diluted earnings per share. The increase in net income was primarily the result of lower provision for credit losses, partially offset by lower net interest income, realized net losses on liquidated trust preferred securities and previously mentioned conversion charges.
(Logo: http://photos.prnewswire.com/prnh/20030416/FIRSTLOGO )
Fourth Quarter 2013 Financial Highlights
-- Net income of $9.3 million, or $0.10 diluted earnings per share.
-- Initiated "Operation: Excellence" and incurred $4.5 million, or $0.03
diluted earnings per share, of technology conversion charges and
accelerated depreciation for hardware and software to be replaced.
-- Trust preferred securities liquidation loss of $1.3 million, or $0.01
diluted earnings per share.
-- Nonperforming loans decreased $48.2 million, or 45%, over the last 12
months.
-- Loan growth of $43.8 million, or 4% on an annualized basis.
-- Dividends on common stock increased to $0.07 per share, or 17%.
For the year ended December 31, 2013, net income was $41.5 million, or $0.43 diluted earnings per share, compared to net income of $42.0 million, or $0.40 diluted earnings per share for the year 2012. The slight decrease in year-over-year net income can be attributed to $4.6 million in technology conversion charges and accelerated depreciation, or $0.03 diluted earnings per share. Net income was also impacted by reduced provision for credit losses and noninterest expense, offset by lower net interest income and noninterest income. Full year earnings per share were affected by the repurchase of 4,453,956 shares of common stock in 2013.
T. Michael Price, President and Chief Executive Officer, commented, "I am especially pleased with the progress our organization has made on strategic initiatives. Building a strong credit infrastructure and culture that creates competitive advantage, and enthusiastically migrating to a culture of operational efficiency, are two of those initiatives. Our fourth quarter credit quality metrics and kick-off of a major technology conversion are reflective of our strategic progress."
Net Interest Income and Net Interest Margin
Fourth quarter 2013 net interest income, on a fully taxable equivalent basis, decreased $0.9 million, or 2%, to $47.3 million as compared to the fourth quarter of 2012. The decrease was the result of a 22 basis point decline in net interest margin, partially offset by a $79.1 million increase in loans and a $154.3 million increase in investment securities. Net interest margin was 3.35%, 3.43% and 3.57% for the three-month periods ended December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Third quarter 2013 net interest income includes the effect of $1.0 million of income received on other-than-temporary impaired pooled trust preferred securities that added approximately 8 basis points to the net interest margin for that period. For the year ended December 31, 2013, net interest income, on a fully taxable equivalent basis, decreased $4.6 million, or 2%. The decrease was primarily due to a 22 basis point decline in the net interest margin, partially offset by growth in average loans and securities. The net interest margin for the years ended December 31, 2013 and 2012 was 3.39% and 3.61%, respectively.
Loan growth for the quarter ended December 31, 2013 was $43.8 million as compared to September 30, 2013 and $79.1 million over the last 12 months. Other significant changes to the balance sheet over the last 12 months included a $29.1 million increase in demand deposits, the early redemption of $32.5 million of fixed rate trust preferred debt obligations, a $270.4 million increase in short-term borrowings and the repurchase of 4,453,956 shares of common stock for $32.2 million.
Price noted, "I am pleased with our team's success in increasing loans and transactional deposit accounts during the past year. The improvement in asset quality has also reduced the need for loan portfolio derisking which had challenged our net loan growth in the past."
Credit Quality
The provision for credit losses was $1.2 million and $19.2 million for the fourth quarter and year ended December 31, 2013, respectively, as compared to $5.7 million and $20.5 million in the prior-year periods. The full year 2013 provision for credit losses included a $13.1 million charge-off in the second quarter of 2013 for an $18.6 million legacy credit relationship to a local real estate developer which has a net remaining balance of $2.4 million at December 31, 2013.
At December 31, 2013, nonperforming loans were $59.4 million, a decrease of $48.2 million, or 45% from December 31, 2012. Nonperforming loans as a percentage of total loans were 1.39%, 1.68% and 2.56% for the periods ended December 31, 2013, September 30, 2013 and December 31, 2012, respectively.
During the fourth quarter of 2013, net charge-offs were $1.9 million compared to $2.6 million in the fourth quarter of 2012. For the year ended December 31, 2013, net charge-offs were $32.2 million, or 0.76% of average loans, compared to $14.6 million, or 0.35% of average loans for the year 2012. The allowance for credit losses as a percentage of total loans outstanding was 1.27%, 1.30% and 1.60% for December 31, 2013, September 30, 2013 and December 31, 2012, respectively.
OREO acquired through foreclosure was $11.7 million at December 31, 2013 as compared to $9.7 million at September 30, 2013 and $11.3 million at December 31, 2012.
Noninterest Income
Noninterest income, excluding net securities gains, increased $0.6 million, or 4%, in the fourth quarter of 2013 compared to the same period last year. Increased revenue on deposit accounts and swap transactions were partially offset by less revenue from bank-owned life insurance. For the full year, noninterest income, excluding net securities gains and losses, decreased $3.9 million in 2013. The decrease is primarily the result of $2.5 million less gains on the sale of loans and OREO properties in 2013, a $1.9 million early termination fee received in 2012 on a joint venture, partially offset by improved performance in deposit fees, interchange income and swap revenues.
During the fourth quarter of 2013, a loss of $1.3 million was recognized on the early redemption of pooled trust preferred securities with a book value of $6.6 million. Senior note holders elected to liquidate all assets of the trust, resulting in losses for the mezzanine notes that were owned.
Noninterest Expense
Noninterest expense increased $1.5 million, or 3%, in the fourth quarter of 2013 from the fourth quarter of 2012, primarily from a $2.5 million technology conversion charge and $2.0 million of accelerated depreciation, included in furniture and equipment expense related to hardware and software to be replaced in the technology conversion, and a $1.1 million increase in salaries and employee benefits due to an increase in the cost of health insurance, partially offset by $3.1 million of reductions in OREO write-downs to fair market value as compared to 2012. On September 30, 2013, First Commonwealth executed a contract with Jack Henry and Associates to license the Jack Henry and Associates SilverLake System® core processing software and to outsource certain data processing services. A system conversion is expected to occur during the third quarter of 2014. First Commonwealth will incur approximately $11.0 - $12.0 million of costs related to accelerated depreciation for data processing hardware and software, early termination charges on existing contracts and staffing and employment-related charges beginning in the fourth quarter of 2013 through the anticipated conversion date. First Commonwealth expects to achieve $6.0 to $8.0 million in lower annual technology-related expenses as well as employment and other operational expense as a result of the conversion.
Despite $4.6 million in technology conversion charges and accelerated depreciation, noninterest expense for the year ended December 31, 2013 decreased $8.4 million, or 5%, as compared to the prior year. Improvements included $1.0 million in data processing, $8.3 million of loan collection/OREO costs, $3.3 million reduction in fraud losses and $1.3 million in other operating expenses, partially offset by the aforementioned technology conversion charges of $2.6 million and the aforementioned $2.0 million of accelerated depreciation included in furniture and equipment expense, and a $1.6 million early redemption fee on $32.5 million of fixed rate trust preferred debt obligations redeemed in 2013.
Full time equivalent staff was 1,362 and 1,395 for the periods ended December 31, 2013 and 2012, respectively. The efficiency ratio, calculated as 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), was 68% for the year ended December 31, 2013 as compared to 69% for 2012.
Dividends and Capital
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.07 per share on January 28, 2014, which is payable on February 21, 2014 to shareholders of record as of February 10, 2014. This dividend represents a 3.4% projected annual yield utilizing the January 28, 2014 closing market price of $8.26.
On January 29, 2013, First Commonwealth's Board of Directors authorized a $25.0 million common stock repurchase program in addition to the $50.0 million common stock repurchase program announced on June 19, 2012. Under these programs, management is authorized to repurchase shares through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. Depending on market conditions and other factors, repurchases may be made at any time without prior notice. First Commonwealth may suspend or discontinue the programs at any time. As of December 31, 2013, First Commonwealth has purchased 10,116,039 shares at an average price of $6.88 per share under these programs.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full year of 2013 on Wednesday, January 29, 2014 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-877-353-0037 or through the company's Investor web page at http://ir.fcbanking.com. 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 is a $6.2 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 110 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 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 and may cause actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect our revenues, increase credit-related costs and reduce the values of our assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Continued stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, our business and financial performance is likely to be negatively impacted by effects of recently enacted and future legislation and regulation. Our results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management's ability to effectively manage credit risk, market risk, operational risk, compliance and legal risk, interest rate risk, and liquidity risk. 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.
--2PRFCFERN2--
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)
For the Three Months Ended For the Years Ended
December 31, September December 31, December December
30, 31, 31,
2013 2013 2012 2013 2012
---- ---- ---- ---- ----
SUMMARY RESULTS OF OPERATIONS
Net interest income (FTE)(1) $47,303 $48,255 $48,223 $188,732 $193,321
Provision for credit losses 1,216 2,714 5,706 19,227 20,544
Noninterest income 13,264 17,083 14,103 60,163 65,434
Noninterest expense 45,327 40,045 43,842 168,824 177,207
Net income 9,259 15,854 8,735 41,482 41,954
Earnings per common share (diluted) $0.10 $0.16 $0.09 $0.43 $0.40
KEY FINANCIAL RATIOS
Return on average assets 0.60% 1.02% 0.58% 0.68% 0.71%
Return on average shareholders' equity 5.14% 8.83% 4.55% 5.70% 5.46%
Efficiency ratio(2) 73.15% 61.50% 70.38% 67.52% 68.54%
Net interest margin (FTE)(1) 3.35% 3.43% 3.57% 3.39% 3.61%
Book value per common share $7.47 $7.45 $7.49
Tangible book value per common share(4) 5.78 5.76 5.86
Market value per common share 8.82 7.59 6.82
Cash dividends declared per common
share 0.06 0.06 0.05 $0.23 $0.18
ASSET QUALITY RATIOS
Allowance for credit losses as a percent of
end-of-period loans 1.27% 1.30% 1.60%
Allowance for credit losses as a percent of
nonperforming loans 91.31% 77.17% 62.47%
Nonperforming loans as a percent of
end-of-period loans 1.39% 1.68% 2.56%
Nonperforming assets as a percent of total
assets 1.15% 1.33% 1.99%
Net charge-offs as a percent of average
loans (annualized) 0.18% 0.49% 0.25%
CAPITAL RATIOS
Shareholders' equity as a percent of
total assets 11.45% 11.56% 12.44%
Tangible common equity as a percent of
tangible assets(3) 9.09% 9.18% 10.01%
Leverage Ratio 10.00% 9.84% 11.24%
Risk Based Capital - Tier I 12.10% 12.04% 13.28%
Risk Based Capital - Total 13.26% 13.22% 14.53%
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except share data)
For the Three Months Ended For the Years Ended
December 31, September 30, December 31, December 31, December 31,
2013 2013 2012 2013 2012
---- ---- ---- ---- ----
INCOME STATEMENT
Interest income $51,308 $52,308 $53,867 $206,358 $219,075
Interest expense 5,002 5,079 6,676 21,707 30,146
----- ----- ----- ------ ------
Net Interest Income 46,306 47,229 47,191 184,651 188,929
Taxable equivalent adjustment(1) 997 1,026 1,032 4,081 4,392
--- ----- ----- ----- -----
Net Interest Income (FTE) 47,303 48,255 48,223 188,732 193,321
Provision for credit losses 1,216 2,714 5,706 19,227 20,544
----- ----- ----- ------ ------
Net Interest Income after Provision
for Credit Losses (FTE) 46,087 45,541 42,517 169,505 172,777
Changes in fair value on impaired securities 4,851 236 644 9,792 2,193
Non-credit related gains on securities not
expected to be sold (recognized in other
comprehensive income) (4,851) (236) (644) (9,792) (2,193)
------ ---- ---- ------ ------
Net Impairment Losses - - - - -
Net securities (losses) gains (1,395) 229 29 (1,158) 192
Trust income 1,489 1,406 1,426 6,166 6,206
Service charges on deposit accounts 4,209 4,227 3,768 15,652 14,743
Insurance and retail brokerage commissions 1,382 1,822 1,334 6,005 6,272
Income from bank owned life insurance 1,320 1,359 1,481 5,539 5,850
Gain on sale of assets 97 1,356 291 2,153 4,607
Card related interchange income 3,532 3,536 3,540 13,746 13,199
Other income 2,630 3,148 2,234 12,060 14,365
----- ----- ----- ------ ------
Total Noninterest Income 13,264 17,083 14,103 60,163 65,434
Salaries and employee benefits 21,724 20,998 20,668 86,012 86,069
Net occupancy expense 3,477 3,274 3,313 13,607 13,255
Furniture and equipment expense(5) 5,255 3,294 3,134 15,118 12,460
Data processing expense 1,498 1,492 1,708 6,009 7,054
Pennsylvania shares tax expense 1,415 1,516 1,503 5,638 5,706
Intangible amortization 216 193 358 1,064 1,467
Collection and repossession expense 974 860 1,106 3,836 5,756
Other professional fees and services 966 848 1,162 3,731 4,329
FDIC insurance 1,054 1,178 1,275 4,366 5,032
Loss on sale or write-down of assets 45 479 3,179 1,054 7,394
Operational losses 325 238 334 1,115 4,367
Loss on redemption of subordinated debt - - - 1,629 -
Conversion related expenses 2,523 65 - 2,588 -
Other operating expenses 5,855 5,610 6,102 23,057 24,318
----- ----- ----- ------ ------
Total Noninterest Expense 45,327 40,045 43,842 168,824 177,207
Income before Income Taxes 14,024 22,579 12,778 60,844 61,004
Taxable equivalent adjustment(1) 997 1,026 1,032 4,081 4,392
Income tax provision 3,768 5,699 3,011 15,281 14,658
----- ----- ----- ------ ------
Net Income $9,259 $15,854 $8,735 $41,482 $41,954
====== ======= ====== ======= =======
Shares Outstanding at End of Period 95,245,215 95,544,765 99,629,494 95,245,215 99,629,494
Average Shares Outstanding Assuming
Dilution 95,138,836 96,208,545 101,787,103 97,029,832 103,885,663
(5) - Includes $2.0 million of accelerated depreciation expense related to the technology conversion.
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
December September December
31, 30, 31,
2013 2013 2012
---- ---- ----
BALANCE
SHEET
(Period
End)
Assets
Cash
and
due
from
banks $74,427 $88,179 $98,724
Interest-
bearing
bank
deposits 3,012 5,077 4,258
Securities 1,353,809 1,324,767 1,199,531
Loans 4,283,833 4,240,004 4,204,704
Allowance
for
credit
losses (54,225) (54,957) (67,187)
Net
loans 4,229,608 4,185,047 4,137,517
Goodwill
and
other
intangibles 161,267 161,483 162,331
Other
assets 392,738 386,409 393,029
------- ------- -------
Total
Assets $6,214,861 $6,150,962 $5,995,390
========== ========== ==========
Liabilities
and
Shareholders'
Equity
Noninterest-
bearing
demand
deposits $912,361 $908,436 $883,269
Interest-
bearing
demand
deposits 89,149 96,587 97,963
Savings
deposits 2,506,631 2,491,315 2,543,990
Time
deposits 1,095,722 1,121,463 1,032,659
Total
interest-
bearing
deposits 3,691,502 3,709,365 3,674,612
Total
deposits 4,603,863 4,617,801 4,557,881
Short-
term
borrowings 626,615 551,628 356,227
Long-
term
borrowings 216,552 216,668 280,221
------- ------- -------
Total
borrowings 843,167 768,296 636,448
Other
liabilities 56,134 53,509 55,054
Shareholders'
equity 711,697 711,356 746,007
------- ------- -------
Total
Liabilities
and
Shareholders'
Equity $6,214,861 $6,150,962 $5,995,390
========== ========== ==========
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
For the Three Months Ended
December 31, Yield/ September 30, Yield/ December 31, Yield/
2013 Rate 2013 Rate 2012 Rate
---- ---- ---- ---- ---- ----
NET INTEREST MARGIN (Quarterly Averages)
Assets
Loans (FTE)(1) $4,277,981 4.17% $4,258,372 4.19% $4,214,000 4.48%
Securities and interest bearing bank deposits (FTE)(1) 1,318,332 2.21% 1,327,656 2.50% 1,165,991 2.52%
--------- --------- ---------
Total Interest-Earning Assets (FTE)(1) 5,596,313 3.71% 5,586,028 3.79% 5,379,991 4.06%
Noninterest-earning assets 565,809 576,741 582,755
Total Assets $6,162,122 $6,162,769 $5,962,746
========== ========== ==========
Liabilities and Shareholders' Equity
Interest-bearing demand and savings deposits $2,605,992 0.10% $2,608,249 0.11% $2,609,722 0.16%
Time deposits 1,117,567 1.05% 1,144,766 1.06% 1,082,785 1.28%
Short-term borrowings 561,976 0.28% 547,393 0.26% 365,697 0.28%
Long-term borrowings 216,618 1.76% 216,733 1.77% 237,975 3.20%
------- ------- -------
Total Interest-Bearing Liabilities 4,502,153 0.44% 4,517,141 0.45% 4,296,179 0.62%
Noninterest-bearing deposits 895,652 885,346 853,520
Other liabilities 49,270 47,932 48,565
Shareholders' equity 715,047 712,350 764,482
------- ------- -------
Total Noninterest-Bearing Funding Sources 1,659,969 1,645,628 1,666,567
Total Liabilities and Shareholders' Equity $6,162,122 $6,162,769 $5,962,746
========== ========== ==========
Net Interest Margin (FTE) (annualized)(1) 3.35% 3.43% 3.57%
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED
FINANCIAL DATA
Unaudited
(dollars in
thousands)
For the Years Ended
December 31, Yield/ December 31, Yield/
2013 Rate 2012 Rate
---- ---- ---- ----
NET INTEREST MARGIN
(Year-to-Date
Averages)
Assets
Loans (FTE)(1) $4,255,593 4.23% $4,165,292 4.60%
Securities and
interest bearing
bank deposits
(FTE)(1) 1,303,976 2.32% 1,183,769 2.69%
--------- ---------
Total Interest-
Earning Assets
(FTE)(1) 5,559,569 3.79% 5,349,061 4.18%
Noninterest-earning
assets 572,413 591,086
Total Assets $6,131,982 $5,940,147
========== ==========
Liabilities and
Shareholders'
Equity
Interest-bearing
demand and savings
deposits $2,612,847 0.12% $2,567,387 0.18%
Time deposits 1,154,984 1.07% 1,138,112 1.49%
Short-term
borrowings 478,388 0.26% 402,196 0.27%
Long-term borrowings 233,483 2.08% 202,598 3.76%
------- -------
Total Interest-
Bearing Liabilities 4,479,702 0.48% 4,310,293 0.70%
Noninterest-bearing
deposits 876,111 810,041
Other liabilities 48,335 50,859
Shareholders' equity 727,834 768,954
------- -------
Total Noninterest-
Bearing Funding
Sources 1,652,280 1,629,854
Total Liabilities
and Shareholders'
Equity $6,131,982 $5,940,147
========== ==========
Net Interest Margin
(FTE)
(annualized)(1) 3.39% 3.61%
FIRST COMMONWEALTH FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands)
December 31, September 30, December 31,
2013 2013 2012
---- ---- ----
ASSET QUALITY DETAIL
Nonperforming Loans:
Loans on nonaccrual basis $28,908 $42,122 $43,539
Troubled debt restructured loans on
nonaccrual basis 16,980 17,807 50,979
Troubled debt restructured loans on
accrual basis 13,495 11,290 13,037
Total Nonperforming Loans $59,383 $71,219 $107,555
Other real estate owned ("OREO") 11,728 9,656 11,262
Repossessions ("Repo") 322 695 575
Total Nonperforming Assets $71,433 $81,570 $119,392
Loans past due in excess of 90 days and
still accruing $2,505 $2,364 $2,447
Criticized loans 162,361 180,593 288,502
Nonperforming assets as a percentage
of total loans, plus OREO and Repos 1.66% 1.92% 2.83%
Allowance for credit losses $54,225 $54,957 $67,187
For the Three Months Ended For the Years Ended
December 31, September 30, December 31, December 31, December 31,
2013 2013 2012 2013 2012
---- ---- ---- ---- ----
Net Charge-offs:
Commercial, financial, agricultural
and other $987 $3,000 $174 $17,944 $4,764
Real estate construction (361) (63) 784 272 3,019
Commercial real estate 447 800 59 10,377 441
Residential real estate 33 686 753 550 3,406
Loans to individuals 842 786 863 3,046 2,961
--- --- --- ----- -----
Net Charge-offs $1,948 $5,209 $2,633 $32,189 $14,591
Net charge-offs as a percentage of average
loans outstanding (annualized) 0.18% 0.49% 0.25% 0.76% 0.35%
Provision for credit losses as a percentage
of net charge-offs 62.42% 52.10% 216.71% 59.73% 140.80%
Provision for credit losses $1,216 $2,714 $5,706 $19,227 $20,544
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."
December 31, September 30, December 31,
2013 2013 2012
---- ---- ----
Tangible Equity:
Total
shareholders'
equity $711,697 $711,356 $746,007
Less:
intangible
assets 161,267 161,483 162,331
------- ------- -------
Tangible
Equity 550,430 549,873 583,676
Less:
preferred
stock - - -
--- --- ---
Tangible
Common
Equity $550,430 $549,873 $583,676
Tangible Assets:
Total assets $6,214,861 $6,150,962 $5,995,390
Less:
intangible
assets 161,267 161,483 162,331
------- ------- -------
Tangible
Assets $6,053,594 $5,989,479 $5,833,059
(3)Tangible
Common
Equity as a
percentage
of Tangible
Assets 9.09% 9.18% 10.01%
Shares
Outstanding
at End of
Period 95,245,215 95,544,765 99,629,494
(4)Tangible
Book Value
Per Common
Share $5.78 $5.76 $5.86
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.
SOURCE First Commonwealth Financial Corporation
