PR Newswire
INDIANA, Pa., April 22, 2014
INDIANA, Pa., April 22, 2014 /PRNewswire/ -- First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $12.3 million, or $0.13 diluted earnings per share, for the first quarter ended March 31, 2014, as compared to net income of $10.6 million, or $0.11 diluted earnings per share, in the first quarter of 2013. The increase in net income was primarily the result of reduced provision expense and a $1.6 million reduction in noninterest expense. Annualized returns on average assets and average equity for the first quarter 2014 were 0.80% and 6.97%, respectively, as compared to 0.71% and 5.73% for the first quarter 2013.
First Quarter 2014 Financial Highlights
T. Michael Price, President and Chief Executive Officer, stated, "I am pleased with the improvements in our credit quality metrics, efficiency, competitiveness of our business lines and the progress of our IT conversion project targeted to occur in the third quarter of 2014. These areas of strategic focus and execution are the cornerstones for future performance."
Net Interest Income and Net Interest Margin
First quarter 2014 net interest income, on a fully taxable equivalent basis, was relatively flat at $46.5 million as compared to the first quarter of 2013. Net interest margin was 3.33%, 3.35% and 3.45% for the three-month periods ended March 31, 2014, December 31, 2013 and March 31, 2013, respectively.
Average loans for the first quarter 2014 increased $29.4 million as compared to the prior quarter. Average deposits decreased $36.1 million for the same time period. First quarter 2014 average deposit mix changes also include a $38.9 million increase in average purchased wholesale deposits that represented a more cost effective alternative to borrowed funds.
Price added, "Loan growth is challenging as we remain disciplined in our loan underwriting guidelines. Here too, we believe this discipline will add future strategic advantage."
Credit Quality
The provision for credit losses totaled $3.2 million for the quarter ending March 31, 2014, as compared to $4.5 million in the prior-year period.
At March 31, 2014, nonperforming loans were $56.2 million, a decrease of $3.2 million from December 31, 2013. Nonperforming loans as a percentage of total loans were 1.32%, 1.39% and 1.86% for the periods ended March 31, 2014, December 31, 2013 and March 31, 2013, respectively.
During the first quarter of 2014, net charge-offs were $3.0 million compared to $9.4 million in the first quarter of 2013. As a percentage of average loans on an annualized basis, net charge-offs were 0.28%, 0.18% and 0.90% for the periods ending March 31, 2014, December 31, 2013 and March 31, 2013. The allowance for credit losses as a percentage of total loans outstanding was 1.28%, 1.27% and 1.48% for March 31, 2014, December 31, 2013 and March 31, 2013, respectively.
Noninterest Income
Noninterest income was relatively unchanged at $14.9 million for the first quarter of 2014 compared to the same period last year. In March 2014, First Commonwealth announced the sale of its registered investment advisory business, generating a gain on sale of $1.2 million. This increase in noninterest income was offset primarily by $1.4 million of less commercial loan swap revenue.
Noninterest Expense
Noninterest expense decreased $1.6 million, or 4%, in the first quarter of 2014 from the first quarter of 2013. The decrease is primarily attributable to reductions of $0.7 million for salaries and employee benefits expense, $0.5 million of Pennsylvania shares tax, $0.4 million of OREO and loan collection costs, a $0.9 million partial insurance recovery for a 2012 external fraud loss and $1.0 million in other operating expenses comprised of reserves for unfunded commitments, marketing and promotions and a contingency accrual for client tax reporting in the first quarter of 2013. Offsetting these noninterest expense improvements is $2.4 million of IT conversion-related costs, primarily accelerated depreciation on software and hardware to be replaced in the scheduled third quarter 2014 conversion.
Full time equivalent staff was 1,333 and 1,383 for the periods ended March 31, 2014 and 2013, 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 65% for the quarter ended March 31, 2014 as compared to 68% at March 31, 2013.
Dividends and Capital
First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.07 per share on April 22, 2014, which is payable on May 16, 2014 to shareholders of record as of May 2, 2014. This dividend represents a 3.2% projected annual yield utilizing the April 21, 2014 closing market price of $8.69.
During the first quarter of 2014, First Commonwealth completed share repurchase programs in the amount of $25.0 million and $50.0 million which were previously announced on January 29, 2013 and June 19, 2012, respectively. Under these programs, First Commonwealth purchased a total of 10,810,119 shares of common stock at an average price of $6.97 per share. On February 19, 2014, First Commonwealth's Board of Directors authorized an additional $25.0 million common stock repurchase program. As of March 31, 2014, First Commonwealth has purchased 382,387 shares at an average price of $8.26 per share under this program.
First Commonwealth's capital ratios for Total, Tier I and Leverage at March 31, 2014 were 13.6%, 12.4% and 10.0%, respectively.
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the first quarter 2014 on Wednesday, April 23, 2014 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://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, headquartered in Indiana, Pennsylvania, is a financial services company with $6.2 billion in total assets and 110 banking offices in 15 counties throughout western and central Pennsylvania. First Commonwealth provides a full range of commercial banking, consumer banking, 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 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.
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, | ||||||
| 2014 | | 2013 | | 2013 | ||||||
SUMMARY RESULTS OF OPERATIONS | | | | | |||||||
Net interest income (FTE)(1) | $ | 46,468 | | | $ | 47,303 | | | $ | 46,447 | |
Provision for credit losses | 3,231 | | | 1,216 | | | 4,497 | | |||
Noninterest income | 14,920 | | | 13,264 | | | 14,885 | | |||
Noninterest expense | 39,887 | | | 45,327 | | | 41,454 | | |||
Net income | 12,300 | | | 9,259 | | | 10,553 | | |||
| | | | | | ||||||
Earnings per common share (diluted) | $ | 0.13 | | | $ | 0.10 | | | $ | 0.11 | |
| | | | | | ||||||
KEY FINANCIAL RATIOS | | | | | | ||||||
Return on average assets | 0.80 | % | | 0.60 | % | | 0.71 | % | |||
Return on average shareholders' equity | 6.97 | % | | 5.14 | % | | 5.73 | % | |||
Efficiency ratio(2) | 64.98 | % | | 73.15 | % | | 67.59 | % | |||
Net interest margin (FTE)(1) | 3.33 | % | | 3.35 | % | | 3.45 Werbung Mehr Nachrichten zur First Commonwealth Financial Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |