Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)

Note 30—Condensed Financial Information of First Commonwealth Financial Corporation (parent company only)


Statements of Financial Condition	December 31,
	2012		2011
	(dollars in thousands)
Assets
Cash	$	19,493	$	6,376
Loans to affiliated parties		30		34
Investment in subsidiaries		736,165		751,702
Investment in unconsolidated subsidiary trusts		3,291		3,291
Investment in jointly-owned company		8,347		8,007
Premises and equipment, net		9,347		14,196
Recievable from subsidiaries		1,583		2,545
Dividends receivable		1,205		0
Other assets		76,715		85,833

Total assets	$	856,176	$	871,984

Liabilities and Shareholders’ Equity
Accrued expenses and other liabilities	$	4,419	$	6,091
Loans payable		0		1,600
Subordinated debentures payable		105,750		105,750
Shareholders’ equity		746,007		758,543

Total liabilities and shareholders’ equity	$	856,176	$	871,984


Statements of Operations	2012			2011			2010
	(dollars in thousands)
Interest and dividends	$	1		$	1		$	1
Dividends from subsidiaries		64,342			10,321			3,190
Interest expense		(5,711	)		(5,605	)		(5,658	)
Other income		12,581			30,595			28,789
Operating expense		(19,061	)		(44,057	)		(42,786	)

Income (loss) before taxes and equity in undistributed earnings of subsidiaries		52,152			(8,745	)		(16,464	)
Applicable income tax benefits		4,364			6,618			6,790

Income (loss) before equity in undistributed earnings of subsidiaries		56,516			(2,127	)		(9,674	)
Equity in undistributed (loss) earnings of subsidiaries		(14,562	)		17,401			32,652

Net income	$	41,954		$	15,274		$	22,978


Statements of Cash Flow	2012			2011			2010
	(dollars in thousands)
Operating Activities
Net income	$	41,954		$	15,274		$	22,978
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,719			3,730			3,658
Net gain on sales of assets		(107	)		(1,069	)		(3	)
(Increase) decrease in prepaid income taxes		(3,044	)		0			23
Undistributed equity in subsidiaries		14,562			(17,401	)		(32,652	)
Other net		8,789			1,649			9,029

Net cash provided by operating activities		65,873			2,183			3,033
Investing Activities
Net change in loans to affiliated parties		4			5			7
Purchases of premises and equipment		(3,005	)		(5,736	)		(3,026	)
Proceeds from sale of other assets		4,309			1,461			15
Additional investment in subsidiary		0			0			(70,000	)

Net cash provided by (used in) investing activities		1,308			(4,270	)		(73,004	)
Financing Activities
Proceeds from issuance of common stock		0			144			83,913
Discount on dividend reinvestment plan purchases		(92	)		(63	)		(33	)
Dividends paid		(18,759	)		(12,558	)		(5,306	)
Proceeds from reissuance of treasury stock		1,028			72			4,248
Purchase of treasury stock		(36,242	)		(9	)		(9	)
Stock option tax benefit		1			6			0

Net cash (used in) provided by financing activities		(54,064	)		(12,408	)		82,813

Net increase (decrease) in cash		13,117			(14,495	)		12,842
Cash at beginning of year		6,376			20,871			8,029

Cash at end of year	$	19,493		$	6,376		$	20,871

Cash dividends declared per common share were $0.18 for 2012, $0.12 for 2011 and $0.6 for 2010.

During 2004, the ESOP obtained a $14.0 million line of credit from an unrelated financial institution. The line of credit was used to purchase stock in 2005 for the ESOP and is guaranteed by First Commonwealth. During 2005, $8.5 million was borrowed on the line. There were no borrowings on the line during 2012, 2011 and 2010. The loan was recorded as long-term debt and the offset was recorded as a reduction of common shareholders’ equity. The final payment on the ESOP was made in November 2012 eliminating the outstanding debt. See Note 24 “Unearned ESOP Shares.”

First Commonwealth Financial Corporation has an unsecured $15.0 million line of credit with another financial institution. There are no amounts outstanding on this line as of December 31, 2012. As of December 31, 2012, we are in compliance with all debt covenants related to the line of credit.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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