First Commonwealth Financial Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended Dec. 31, 2011; Provides Tax Rate Guidance for 2012; Reports Net Charge-Offs for the Fourth Quarter of 2011
January 25, 2012 at 01:30 pm
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First Commonwealth Financial Corp. announced unaudited consolidated earnings results for the fourth quarter and full year ended Dec. 31, 2011. For the quarter, the company reported interest income of $56,487,000, net interest income of $47,633,000, loss before income taxes of $10,104,000, net loss of $5,717,000 or $0.05 per diluted share as compared to interest income of $63,363,000, net interest income of $49,971,000, income before income taxes of $14,620,000, net income of $11,945,000 or $0.11 per diluted share for the same period prior year. The decrease in net income was primarily the result of a higher provision for credit losses and a collateral valuation charge for an Other Real Estate Owned (OREO) property. Negative return on average assets was 0.40% as compared to return on average assets of 0.80% for the same period prior year. Negative return on average shareholders' equity was 2.94% as compared to return on average shareholders' equity of 6.32% for the same period prior year.
For the year, the company reported interest income of $231,545,000, net interest income of $195,367,000, income before income taxes of $20,394,000, net income of $15,274,000 or $0.15 diluted earnings per share as compared to interest income of $268,360,000, net interest income of $206,761,000, income before income taxes of $32,391,000, net income of $22,978,000 or $0.25 diluted earnings per share for the same period prior year. The decrease in year over year net income was primarily the result of lower net interest income due to balance sheet restructuring strategies and depressed loan demand in 2011. Return on average assets was 0.27% as compared to 0.37% for the same period prior year. Return on average shareholders' equity was 2% as compared to 3.33% for the same period prior year. Book value per common share as at Dec. 31, 2011 was $7.23 compared to $7.15 as at Dec. 31, 2010. Tangible book value per common share as at Dec. 31, 2011 was $5.67 compared to $5.57 as at Dec. 31, 2010.
The company currently projects net effective tax rate to be in the mid 20's for 2012.
For the fourth quarter of 2011, the net charge-offs were $36,795,000 as compared to $22,417,000.
First Commonwealth Financial Corporation is a financial holding company. The Companyâs operating subsidiaries include First Commonwealth Bank (the Bank), First Commonwealth Insurance Agency, Inc. (FCIA) and FRAMAL. It provides a diversified array of consumer and commercial banking services through its bank subsidiary, FCB. It also provides trust and wealth management services through FCB and offer insurance products through FCIA. The Bank operated 126 community banking offices in 30 counties throughout western and central Pennsylvania and throughout Ohio, as well as commercial lending operations in Harrisburg, Pennsylvania, and Canton, Cleveland, Columbus, Canfield and Hudson, Ohio. The Bank also operates a network of 138 automated teller machines. All of its ATMs are part of the NYCE and MasterCard/Cirrus networks, both of which operate nationwide. The Bank is a member of the Allpoint ATM network, which allows surcharge-free access to over 55,000 ATMs.
First Commonwealth Financial Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended Dec. 31, 2011; Provides Tax Rate Guidance for 2012; Reports Net Charge-Offs for the Fourth Quarter of 2011
FIRST COMMONWEALTH FINANCIAL CORPORATION 
