First Commonwealth Financial Corp. (FCF) filed Quarterly Report for the period ended 2010-03-31.
First Commonwealth Financial Corp. has a market cap of $467.55 million; its shares were traded at around $5.46 with and P/S ratio of 1.49. The dividend yield of First Commonwealth Financial Corp. stocks is 0.73%.FCF is in the portfolios of Manning & Napier Advisors, Inc, Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of FCF over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FCF.
Highlight of Business Operations:
For the three months ended March 31, 2010, First Commonwealth had a net loss of $13.2 million or $0.15 per share as compared to net income of $1.7 million or $0.02 per diluted share for the same period in 2009. The return on average assets for the three month period was a negative 0.83% compared to a positive 0.11% for the comparable period in 2009. The return on average equity was a negative 8.17% for the three month period ended March 31, 2010 and a positive 1.03% for the same period in 2009.
The 2010 first quarter net loss resulted primarily from a provision for credit losses of $45.0 million related primarily to updated collateral values on three large commercial loans. Other items affecting results for the three month period ending March 31, 2010 include net impairment losses of $2.8 million; an increase of 15 basis points or $2.1 million in net interest margin on a fully tax-equivalent basis; an increase of $1.2 million in non-interest income, excluding net security losses; and a decrease of $0.1 million in non-interest expense compared to the same period as last year.
Net interest income, on a fully taxable-equivalent basis, increased $2.1 million, or 4%, in the first quarter of 2010 as compared to the first quarter of 2009, despite the negative impact of a $138.2 million increase in the level of nonperforming loans. The net interest income increase was a result of a 15 basis point increase in the net interest margin, partially offset by a decline in average earning assets. Net interest margin was 3.87% and 3.72% for the three month periods ended March 31, 2010 and 2009, respectively. The improved net interest margin can be attributed to a more favorable deposit mix, improved loan pricing and reduced balance sheet leveraging activities.
Interest income, on a fully taxable-equivalent basis, decreased $5.3 million, or 7%, as the contribution from loan growth was negatively offset by a decrease in average investment securities and lower interest rates. Comparing the first quarter of 2010 with the same period in 2009, average loans increased $175.4 million primarily in the commercial real estate, home equity and indirect lending categories, while average investments declined $232.5 million as proceeds from maturing securities contributed to a decrease in average borrowings. The taxable-equivalent yield on earnings assets decreased 35 basis points from 5.40% in the first quarter of 2009 to 5.05% in the first quarter of 2010.
Interest expense decreased $7.4 million or 30%, primarily due to a 58 basis point decline on rates paid for interest-bearing liabilities. The cost of interest-bearing liabilities was 1.34% and 1.92% at March 31, 2010 and 2009, respectively. The benefit from the lower interest rates paid was offset by growth in average deposits which increased $295.5 million, including $482.6 million of lower costing transaction and savings deposits, offset by a $187.1 million decrease in time deposits.
The provision for credit losses for the first quarter of 2010 totaled $45.0 million, an increase of $36.8 million as compared to the first quarter of 2009. The higher provision resulted primarily from an updated collateral valuation for a commercial real estate loan in Florida that was placed in nonaccrual status during the third quarter of 2009, an out-of market commercial loan that migrated to nonaccrual status during the first quarter of 2010 and continued deterioration in a western Pennsylvania commercial loan that was placed in nonaccrual status in the fourth quarter of 2009.