Press Release

EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

*** NEWS RELEASE ***


TO:		All Area News Agencies

FROM:		First Commonwealth Financial Corporation

RELEASE DATE/TIME:		October 28, 2010/8:00 AM

First Commonwealth Announces Third Quarter 2010 Financial Results

Indiana, PA., October 28, 2010 - First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $10.7 million, or $0.11 diluted earnings per share, for the third quarter ended September 30, 2010 compared to a net loss of $5.9 million, or $0.07 per share, in the third quarter of 2009. For the nine months ended September 30, 2010, net income was $11.0 million, or $0.12 diluted earnings per share, compared to a net loss of $22.8 million or $0.27 per share in the first nine months of 2009. The increase in net income for both periods was primarily the result of a lower provision for credit losses, a decrease in net securities impairment losses on investments in pooled trust preferred collateralized debt obligations, an increase in noninterest income and a decrease in noninterest expense.

John J. Dolan, President and Chief Executive Officer, stated, “We are pleased to report favorable earnings results for the third quarter. While macro-economic challenges persist, the ongoing resolution of our credit issues continues to result in improved performance. An improved risk profile, along with our strong capital base, positions us well when the economic recovery takes shape.”

Credit Quality

The provision for credit losses was $4.5 million and $53.6 million for the third quarter and year to date periods ended September 30, 2010, respectively, as compared to $23.0 million and $79.5 million in the prior year periods. The primary component of the reduced provision expense for the quarter was the favorable resolution of a troubled $11.9 million participation loan secured by a condominium development in Missouri. This loan was placed in nonaccrual status during the first quarter of 2010 and a $2.1 million charge-off was recorded in the third quarter of 2010. The payoff of this loan released $8.8 million of the $10.9 million previously established specific reserve.

For the quarter ended September 30, 2010, nonperforming loans were $124.2 million, a decrease of $8.9 million from June 30, 2010 primarily from the resolution of the previously mentioned Missouri condominium participation loan. Nonperforming loans as a percentage of total loans were 2.89%, 3.00% and 2.88% for the periods ended September 30, 2010, June 30, 2010 and September 30, 2009, respectively.

Other real estate owned (“OREO”) acquired through foreclosure was $24.6 million at September 30, 2010; $18.1 million is related to a food manufacturing property that was previously under a sales agreement which expired.

During the third quarter of 2010, net charge-offs were $6.9 million compared to $15.6 million in the third quarter of 2009. The most significant loan charge-offs for the third quarter of 2010 were $2.1 million related to the aforementioned Missouri condominium participation loan and $0.7 million for a $5.0 million participation loan for a completed recreational facility in Illinois that was placed in nonaccrual status during the second quarter of 2009. A $2.1 million charge-off was recorded in the first quarter of 2010 and the $2.2 million remaining balance on the recreational facility was transferred to OREO in the third quarter 2010. For the nine months ended September 30, 2010 net charge-offs were $49.5 million, or 1.46% of average loans on an annualized basis, compared to $41.8 million, or 1.24% of average loans on an annualized basis, for the same period in 2009. The allowance for credit losses as a percentage of total loans outstanding was 1.99%, 1.99% and 1.95% for September 30, 2010, June 30, 2010 and September 30, 2009, respectively.

Net Interest Income and Net Margin

During the third quarter of 2010 net interest income, on a fully taxable equivalent basis, decreased $1.0 million, or 2%, compared to the third quarter of 2009. The decrease was a result of a $532.0 million decline in average interest-earning assets, partially offset by a 28 basis point increase in the net interest margin. Net interest margin was 3.90%, 3.88% and 3.62% for the three-month periods ended September 30, 2010, June 30, 2010 and September 30, 2009, respectively. The improved net interest margin is the result of a more favorable deposit mix, disciplined loan pricing and reduced balance sheet leveraging. For the nine months ended September 30, 2010 net interest income, on a taxable equivalent basis, increased $1.8 million, or 1%. The increase was due to a 20 basis point increase in the net interest margin, partially offset by a decline in average interest-earning assets. The net interest margin for the nine months ended September 30, 2010 and 2009, respectively, was 3.89% and 3.69%.

Mr. Dolan added, “An organization-wide focus on improving our mix of deposits has provided lower funding costs and improved profitability. In addition to significant growth in lower-costing transaction and savings deposits, our employees have maintained a relentless focus on deepening customer relationships by delivering competitive and appropriate financial solutions to the local communities we serve. These efforts have led to a more comprehensive customer service culture and should lead to improved financial performance.”

Significant changes to First Commonwealth’s balance sheet from the third quarter of 2009 to the comparable period in 2010 include:

•

A $941.7 million, or 71%, reduction in borrowings, driven by a decrease in loans and investment securities, and an increase in deposits.

•

The decrease of $349.5 million, or 8%, in loans is a result of planned decreases in residential real estate loans, more disciplined underwriting guidelines concerning geography and size for commercial loans and generally weak borrower demand.

•

The $345.3 million, or 26%, decline in investment securities is the result of matured securities not being replaced as the risk/reward for balance sheet leveraging activities has become less attractive in the current interest rate environment, in addition to the liquidation of municipal securities.

•

Continued improvement in the mix of deposits, as a $363.0 million, or 13%, growth in lower costing transaction and savings deposits has more than offset a $132.2 million decrease in time deposits.

During the third quarter of 2010, First Commonwealth completed a successful public offering by issuing 18,543,750 shares of common stock. The net proceeds of $81.4 million will provide flexibility to capitalize on opportunities presented within our market area as well as to support regulatory capital needs. First Commonwealth’s capital ratios for leverage, Total and Tier I at September 30, 2010 were 11.1%, 13.7% and 12.5%, respectively.

Noninterest Income

Recognized net security losses were $2.9 million, $1.5 million and $11.9 million for the three-month periods ended September 30, 2010, June 30, 2010 and September 30, 2009, respectively. These losses resulted primarily from other-than-temporary impairment charges on investments in pooled trust preferred collateralized debt obligations. Net security losses for the three month period ended September 30, 2010 include $1.4 million of realized gains primarily from the sale of municipal securities. A strategy was implemented in the second quarter of 2010 that reduced the municipal securities portfolio exposure from $209.5 million at December 31, 2009 to $53.0 million at September 30, 2010. For the nine months ended September 30, 2010 and 2009, net security losses were $6.7 million and $30.4 million, respectively.

The company’s pooled trust preferred collateralized debt obligations consist of 14 securities comprised of 368 banks and other financial institutions. Two pooled securities are senior tranches and the remaining 12 are mezzanine tranches. As of September 30, 2010, the book value of pooled securities totaled $59.9 million with an estimated fair value of $22.8 million. In the third quarter of 2010, a $4.0 million other-than-temporary impairment charge was recorded for five trust preferred collateralized debt obligations that are expected to experience a principal shortfall. The amount of impairment charge recognized represents the expected credit loss on these securities.

Noninterest income, excluding net security losses, increased $0.9 million, or 7%, in the third quarter of 2010 compared to the same period last year primarily as a result of increases in card related interchange income of $0.4 million, $0.7 million in miscellaneous noninterest income

categories and $0.3 million in income from bank owned life insurance. Offsetting these increases was a decrease of $0.5 million in insurance and brokerage commissions as a result of lower sales activity.

For the nine months ended September 30, 2010, noninterest income, excluding net security losses, increased $0.9 million, or 2%, when compared to the same period of 2009; trust income increased $0.8 million as a result of increased market values of assets under management; card-related interchange income increased $1.4 million due to growth in demand deposit accounts, increased usage of debit cards and larger dollar transactions; and income from bank owned life insurance increased $0.7 million as a result of improved crediting rates. The second quarter of 2009 included a $2.1 million gain from a legal settlement.

Noninterest Expense

Noninterest expense decreased $1.0 million, or 2%, in the third quarter of 2010 from the third quarter of 2009. The decrease is primarily related to the $0.8 million, or 4%, decline in salaries and employee benefits.

For the nine months ended September 30, 2010, as compared to the same period last year, noninterest expense decreased $2.8 million, or 2%. Contributing to this decrease was an expense reduction initiative that commenced in 2009, declines in FDIC premiums due to the special assessment of $2.9 million in 2009, $1.2 million of collection and repossession expenses related to two loans that were transferred to OREO, a decrease of $1.0 million in other loan related expenses and a decrease of $1.0 million in salaries and employee benefits. Offsetting these decreases were increases in data processing, software and maintenance expense of $1.3 million primarily due to higher investments in technology solutions and a $2.2 million write-down to current fair value for an OREO property.

Full time equivalent staff was 1,584 and 1,624 for the periods ended September 30, 2010 and 2009, respectively. The efficiency ratio, calculated as total noninterest expense as a percentage of total revenue (total revenue consists of net interest income, on a taxable equivalent basis, plus total noninterest income, excluding net impairment losses and net securities gains), improved to 62% for the nine months ended September 30, 2010 from 64% during the same period in 2009.

Dolan commented, “There has been a significant, upward shift in the expense base for the banking industry due to FDIC insurance premiums, credit cycle costs and added regulatory compliance. Despite these headwinds, we are pleased with our organization’s cost control efforts thus far, but see additional opportunities through better technology utilization and improved staff efficiencies. These will be a strategic focus for us going forward.”

Conference Call

First Commonwealth will host its quarterly conference call to discuss its financial results for the third quarter of 2010 on Thursday, October 28, 2010 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-800-860-2442 or through our web page, http://www.fcbanking.com at our “Investor Relations” link. A replay of the call will be available one hour after the end of the conference at this web page for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation is a $5.9 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 114 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. These risks and uncertainties include, among other things, the following: 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; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Law and other legal and regulatory changes; 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; management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk; and other risks and uncertainties described in our reports filed with the Securities and Exchange Commission, our 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: Robert E. Rout, Executive Vice President and Chief Financial Officer

724-349-7220

Media: Susie Barbour, Communications & Media Relations Supervisor 724-463-5618

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA (a)

(dollars in thousands, except share data)


	For the Three Months Ended															For the Nine Months Ended
	September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009			September 30, 2010			September 30, 2009
Interest Income
Interest and fees on loans	$	56,051		$	57,367		$	57,408		$	58,877		$	57,085		$	170,826		$	173,153
Interest and dividends on investments:
Taxable interest		9,193			9,664			10,467			11,300			12,406			29,324			39,291
Interest exempt from federal income taxes		721			1,839			2,151			2,351			2,540			4,711			8,094
Dividends		13			19			27			25			31			59			183
Interest on bank deposits		4			48			25			4			1			77			3

Total interest income		65,982			68,937			70,078			72,557			72,063			204,997			220,724

Interest Expense
Interest on deposits		12,194			13,067			13,580			15,338			17,014			38,841			54,464
Interest on short-term borrowings		284			616			852			789			947			1,752			3,427

Interest on subordinated debentures		1,429			1,390			1,375			1,398			1,447			4,194			4,772
Interest on other long-term debt		979			1,268			1,173			1,592			1,672			3,420			4,991

Total interest on long-term debt		2,408			2,658			2,548			2,990			3,119			7,614			9,763


Total interest expense		14,886			16,341			16,980			19,117			21,080			48,207			67,654


Net Interest Income		51,096			52,596			53,098			53,440			50,983			156,790			153,070
Taxable equivalent adjustment		1,965			2,639			2,798			2,975			3,052			7,402			9,328

Net Interest Income (FTE) (a)		53,061			55,235			55,896			56,415			54,035			164,192			162,398

Provision for credit losses		4,522			4,010			45,020			21,059			23,020			53,552			79,510

Net Interest Income after Provision for Credit Losses (FTE) (a)		48,539			51,225			10,876			35,356			31,015			110,640			82,888

Noninterest Income
Changes in fair value on impaired securities		(5,787	)		190			(1,517	)		(4,091	)		(25,473	)		(7,114	)		(68,483	)
Non-credit related (gains) losses on securities not expected to be sold (recognized in other comprehensive income)		1,497			(2,300	)		(1,233	)		(1,564	)		13,570			(2,036	)		37,953

Net impairment losses		(4,290	)		(2,110	)		(2,750	)		(5,655	)		(11,903	)		(9,150	)		(30,530	)

Net securities gains		1,430			562			420			149			44			2,412			124
Trust income		1,486			1,398			1,494			1,201			1,366			4,378			3,604
Service charges on deposit accounts		4,302			4,603			4,152			4,642			4,555			13,057			12,798
Insurance and retail brokerage commissions		1,600			1,866			1,862			1,819			2,068			5,328			5,440
Income from bank owned life insurance		1,377			1,301			1,257			1,192			1,078			3,935			3,250
Card related interchange income		2,689			2,686			2,320			2,301			2,224			7,695			6,258
Other income		2,285			2,343			2,696			3,220			1,569			7,324			9,512

Total noninterest income		10,879			12,649			11,451			8,869			1,001			34,979			10,456

Noninterest Expense
Salaries and employee benefits		20,617			21,047			22,327			21,073			21,405			63,991			64,986
Net occupancy expense		3,317			3,539			3,893			3,262			3,263			10,749			10,791
Furniture and equipment expense		3,084			3,101			3,165			3,012			3,121			9,350			9,073
Data processing expense		1,367			1,478			1,437			1,254			1,136			4,282			3,433
Pennsylvania shares tax expense		1,468			1,457			1,057			1,361			1,310			3,982			3,953
Intangible amortization		408			576			657			656			684			1,641			2,170
Collection and repossession expense		1,209			794			923			915			1,444			2,926			4,095
Other professional fees and services		719			1,062			1,166			796			723			2,947			2,633
FDIC insurance		2,014			2,012			1,963			2,041			2,046			5,989			8,430
Loss on sale or write-down of assets		92			2,314			83			140			50			2,489			161
Other operating expenses		6,636			6,298			6,568			6,013			6,763			19,502			20,903

Total noninterest expense		40,931			43,678			43,239			40,523			41,945			127,848			130,628

Income (Loss) before income taxes		18,487			20,196			(20,912	)		3,702			(9,929	)		17,771			(37,284	)
Taxable equivalent adjustment		1,965			2,639			2,798			2,975			3,052			7,402			9,328
Income tax (benefit) provision		5,863			4,015			(10,542	)		(2,002	)		(7,120	)		(664	)		(23,819	)

Net Income (Loss)	$	10,659		$	13,542		($	13,168	)	$	2,729		($	5,861	)	$	11,033		($	22,793	)


Average Shares Outstanding		97,199,306			85,777,550			85,029,748			84,681,199			84,594,952			89,380,112			84,558,972
Average Shares Outstanding Assuming Dilution		97,203,753			85,788,566			85,029,748			84,681,199			84,594,952			89,382,588			84,558,972
Per Share Data:
Basic Earnings (Loss) Per Share	$	0.11		$	0.15		($	0.15	)	$	0.03		($	0.07	)	$	0.12		($	0.27	)
Diluted Earnings (Loss) Per Share	$	0.11		$	0.15		($	0.15	)	$	0.03		($	0.07	)	$	0.12		($	0.27	)
Cash Dividends Declared per Common Share	$	0.01		$	0.01		$	0.03		$	0.03		$	0.03		$	0.05		$	0.15

(a)	Presented on a taxable equivalent basis meaning net interest income is adjusted for the effect of tax-exempt income as if it were taxable using the 35% Federal income tax statutory rate.

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

(dollars in thousands, except share data)


	September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009
Assets
Cash and due from banks	$	94,567		$	86,855		$	79,136		$	89,232		$	79,694
Interest-bearing bank deposits		40,852			1,503			57,073			327			332
Securities available-for-sale, at fair value		927,121			996,220			1,062,713			1,133,856			1,231,015
Securities held to maturity, at amortized cost		0			0			31,891			36,758			41,397
Other investments		51,431			51,431			51,431			51,431			51,431
Loans:
Portfolio loans		4,299,573			4,434,291			4,595,409			4,636,501			4,649,034
Allowance for credit losses		(85,646	)		(88,046	)		(118,725	)		(81,639	)		(90,466	)

Net loans		4,213,927			4,346,245			4,476,684			4,554,862			4,558,568

Premises and equipment, net		68,270			69,203			70,357			70,742			72,074
Other real estate owned		24,555			21,548			23,191			24,287			24,138
Goodwill		159,956			159,956			159,956			159,956			159,956
Other intangibles, net		5,766			6,175			6,752			7,407			8,063
Other assets		325,258			318,933			324,645			317,435			284,771


Total assets	$	5,911,703		$	6,058,069		$	6,343,829		$	6,446,293		$	6,511,439


Liabilities
Deposits (all domestic):
Noninterest-bearing	$	730,939		$	651,250		$	639,184		$	641,231		$	599,842

Interest-bearing demand deposits		103,346			107,261			99,218			107,612			93,062
Savings deposits		2,354,843			2,360,648			2,273,714			2,175,953			2,133,203
Time deposits		1,538,743			1,619,479			1,640,153			1,610,989			1,670,930

Total interest-bearing		3,996,932			4,087,388			4,013,085			3,894,554			3,897,195


Total deposits		4,727,871			4,738,638			4,652,269			4,535,785			4,497,037

Short-term borrowings		162,020			355,682			794,195			958,932			1,043,447

Subordinated debentures		105,750			105,750			105,750			105,750			105,750
Other long-term debt		119,475			155,250			119,084			168,697			179,784

Total long-term debt		225,225			261,000			224,834			274,447			285,534


Other liabilities		54,777			48,499			39,452			38,318			42,276

Total liabilities		5,169,893			5,403,819			5,710,750			5,807,482			5,868,294

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		105,515			86,971			86,755			86,600			86,600
Additional paid-in capital		366,647			303,961			302,841			301,523			302,418
Retained earnings		280,706			271,139			258,593			278,887			278,695
Accumulated other comprehensive income (loss), net		1,009			5,236			(1,181	)		(6,045	)		(762	)
Treasury stock, at cost		(7,967	)		(8,457	)		(8,829	)		(16,554	)		(17,706	)
Unearned ESOP shares		(4,100	)		(4,600	)		(5,100	)		(5,600	)		(6,100	)

Total shareholders’ equity		741,810			654,250			633,079			638,811			643,145


Total liabilities and shareholders’ equity	$	5,911,703		$	6,058,069		$	6,343,829		$	6,446,293		$	6,511,439


Book value per share	$	7.08		$	7.59		$	7.36		$	7.50		$	7.56
Market value per share	$	5.45		$	5.25		$	6.71		$	4.65		$	5.68

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

Quarter To Date Average Balance Sheets and Net Interest Analysis

(dollars in thousands)


	September 30, 2010								September 30, 2009
	Average Balance			Income/Expense (a)		Yield or Rate			Average Balance			Income/Expense (a)		Yield or Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	6,650		$	4		0.24	%	$	461		$	1		1.04	%
Tax-free investment securities		67,459			1,109		6.53	%		228,271			3,909		6.79	%
Taxable investment securities		930,423			9,206		3.93	%		1,097,915			12,437		4.49	%
Loans, net of unearned income (b)(c)		4,390,123			57,628		5.21	%		4,600,016			58,768		5.07	%

Total interest-earning assets	$	5,394,655		$	67,947		5.00	%	$	5,926,663		$	75,115		5.03	%


Noninterest-earning assets:
Cash		78,412								78,497
Allowance for credit losses		(91,247	)							(82,698	)
Other assets		591,115								562,452

Total noninterest-earning assets		578,280								558,251

Total Assets	$	5,972,935							$	6,484,914


Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand deposits (d)	$	629,307		$	175		0.11	%	$	603,830		$	388		0.25	%
Savings deposits (d)		1,817,235			2,773		0.61	%		1,601,898			4,421		1.10	%
Time deposits		1,601,826			9,246		2.29	%		1,707,787			12,205		2.84	%
Short-term borrowings		265,855			284		0.42	%		996,416			947		0.38	%
Long-term debt		234,255			2,408		4.08	%		286,427			3,119		4.32	%

Total interest-bearing liabilities	$	4,548,478		$	14,886		1.30	%	$	5,196,358		$	21,080		1.61	%


Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits (d)		663,947								599,606
Other liabilities		46,727								40,149
Shareholders’ equity		713,783								648,801

Total noninterest-bearing funding sources		1,424,457								1,288,556

Total Liabilities and Shareholders’ Equity	$	5,972,935							$	6,484,914


Net Interest Income and Net Yield on Interest-Earning Assets				$	53,061		3.90	%				$	54,035		3.62	%

(a)	Income on interest-earning assets is shown on a taxable 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.

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

Year To Date Average Balance Sheets and Net Interest Analysis

(dollars in thousands)


	September 30, 2010								September 30, 2009
	Average Balance			Income/Expense (a)		Yield or Rate			Average Balance			Income/Expense (a)		Yield or Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	40,036		$	77		0.26	%	$	679		$	3		0.60	%
Tax-free investment securities		144,922			7,248		6.69	%		241,709			12,453		6.89	%
Taxable investment securities		938,233			29,383		4.19	%		1,120,002			39,474		4.71	%
Loans, net of unearned income (b)(c)		4,525,149			175,691		5.19	%		4,524,567			178,122		5.26	%

Total interest-earning assets		5,648,340			212,399		5.03	%		5,886,957			230,052		5.22	%


Noninterest-earning assets:
Cash		77,027								75,994
Allowance for credit losses		(99,649	)							(59,817	)
Other assets		591,133								548,766

Total noninterest-earning assets		568,511								564,943

Total Assets	$	6,216,851							$	6,451,900


Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand deposits (d)	$	620,231		$	591		0.13	%	$	600,229		$	1,367		0.30	%
Savings deposits (d)		1,778,204			9,642		0.72	%		1,450,336			12,715		1.17	%
Time deposits		1,626,660			28,608		2.35	%		1,766,375			40,382		3.06	%
Short-term borrowings		594,182			1,752		0.39	%		1,065,530			3,427		0.43	%
Long-term debt		244,547			7,614		4.16	%		288,221			9,763		4.53	%

Total interest-bearing liabilities		4,863,824			48,207		1.33	%		5,170,691			67,654		1.75	%


Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits (d)		640,911								582,952
Other liabilities		40,807								41,766
Shareholders’ equity		671,309								656,491

Total noninterest-bearing funding sources		1,353,027								1,281,209

Total Liabilities and Shareholders’ Equity	$	6,216,851							$	6,451,900


Net Interest Income and Net Yield on Interest-Earning Assets				$	164,192		3.89	%				$	162,398		3.69	%

(a)	Yields on interest-earning assets have been computed on a taxable 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.

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

Asset Quality Data

(dollars in thousands)


	September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009
Nonperforming Loans:
Loans on nonaccrual basis	$	123,221		$	132,555		$	166,779		$	147,937		$	133,200
Troubled debt restructured loans		1,013			599			609			619			627

Total nonperforming loans	$	124,234		$	133,154		$	167,388		$	148,556		$	133,827
Loans past due in excess of 90 days and still accruing	$	15,838		$	15,045		$	13,371		$	15,154		$	14,369
Other real estate owned	$	24,555		$	21,548		$	23,191		$	24,287		$	24,138
Loans outstanding at end of period	$	4,299,573		$	4,434,291		$	4,595,409		$	4,636,501		$	4,649,034
Average loans outstanding	$	4,525,149		$	4,593,781		$	4,635,712		$	4,557,227		$	4,524,567
Provision for credit losses (Year To Date)	$	53,552		$	49,030		$	45,020		$	100,569		$	79,510
Allowance for credit losses	$	85,646		$	88,046		$	118,725		$	81,639		$	90,466
Net charge-offs (year to date)	$	49,545		$	42,623		$	7,934		$	71,689		$	41,803
Nonperforming loans as a percentage of total loans		2.89	%		3.00	%		3.64	%		3.20	%		2.88	%
Net charge-offs as a percentage of average loans outstanding (annualized)		1.46	%		1.87	%		0.69	%		1.57	%		1.24	%
Provision for credit losses as a percentage of net charge-offs		108.09	%		115.03	%		567.43	%		140.29	%		190.20	%
Allowance for credit losses as a percentage of end-of-period loans outstanding		1.99	%		1.99	%		2.58	%		1.76	%		1.95	%
Allowance for credit losses as a percentage of nonperforming loans		68.94	%		66.12	%		70.93	%		54.96	%		67.60	%
Nonperforming Securities:
Nonaccrual securities at market value	$	11,050		$	6,483		$	6,553		$	3,258		$	3,503

Profitability Ratios

(dollars in thousands)


	For the Three Months Ended															For the Nine Months Ended
	September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009			September 30, 2010			September 30, 2009
Return on average assets (a)		0.71	%		0.87	%		-0.83	%		0.17	%		-0.36	%		0.24	%		-0.47	%
Return on average equity (a)		5.92	%		8.41	%		-8.17	%		1.65	%		-3.58	%		2.20	%		-4.64	%
Net interest margin (b)		3.90	%		3.88	%		3.87	%		3.78	%		3.62	%		3.89	%		3.69	%
Efficiency ratio (c)		61.27	%		62.91	%		62.06	%		57.24	%		62.70	%		62.09	%		64.27	%

(a)	Annualized

(b)	Net interest margin has been computed on a taxable equivalent basis using the 35% federal income tax statutory rate.

(c)	Efficiency ratio is “total noninterest expense” as a percentage of total revenue.

Total revenue consists of “net interest income, on a taxable equivalent basis,” plus “total noninterest income,” excluding “net impairment losses” and “net securities gains.”

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

Capital Ratios

September 30, 2010

(dollars in thousands)


	Actual					Regulatory Minimum					Well Capitalized					Excess Over Well Capitalized
	Capital Amount		Ratio			Capital Amount		Ratio			Capital Amount		Ratio			Capital Amount
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	705,259		13.7	%	$	410,605		8.0	%		N/A		N/A			N/A
First Commonwealth Bank	$	659,982		13.0	%	$	406,320		8.0	%	$	507,901		10.0	%	$	152,081

Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	640,827		12.5	%	$	205,303		4.0	%		N/A		N/A			N/A
First Commonwealth Bank	$	596,211		11.7	%	$	203,160		4.0	%	$	304,740		6.0	%	$	291,471

Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	640,827		11.1	%	$	230,819		4.0	%		N/A		N/A			N/A
First Commonwealth Bank	$	596,211		10.4	%	$	229,092		4.0	%	$	286,365		5.0	%	$	309,846