First · NYSE:FCF
First — First Commonwealth Financial — Keefe, Bruyette & Woods Annual Community Bank Investor Conference 2008
28 slides from First's conference presentation, Jul 28, 2008
Slide 1: Keefe, Bruyette & Woods Annual Community Bank Investor Conference
1 Keefe, Bruyette & Woods th Annual Community Bank Investor Conference July 28 – 30, 2008 time to be… First! ™ John J. Dolan President and CEO Edward J. Lipkus, III Executive V.P. and CFO Exhibit 99.1
Slide 2: Today’s Agenda
Today’s Agenda Company Overview Lines of Business Financials Conclusion Q&A
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Slide 4: Company Overview
Company Overview Headquarters: Indiana, Pennsylvania Exchange: NYSE (FCF) Listing Date: June 10, 1992 Institutional Ownership: 36% Insider Ownership: 5% Full Service Financial Institution Commercial Consumer Wealth Management - Trust - Insurance - Financial Advisors Ownership information as of most
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Slide 8: Company Overview
Company Overview Historical Legacy of Conservative Lending Practices - relationship driven lender - no sub-prime - well diversified loan portfolio - conservative investment portfolio Strong Dividend History Beginning Stages of Business Transformation
Slide 9: Recent Fundamental Changes
Recent Fundamental Changes New Executive Leadership Team Performance Measurement - accountability - well defined goals - alignment of compensation - profitable sales driven culture into each line of business Internal Restructuring - align structure with strategy - provide role clarity - improved col
Slide 10: Commercial Services
Commercial Services Strategies Develop 3 key core competencies Corporate finance capabilities Commercial real estate lending capabilities Regional/middle market lending capabilities Serve client needs in contiguous markets (LPO’s) Opportunities Enhanced cash management & product offerings Continued
Slide 11: Wealth Management
Wealth Management Strategies Hired several talented investment representatives Improved alliance with branches Opportunities Employee Benefits Cross-selling Product development Revenue increased 27% Y/Y Wealth Management Revenue (thousands) $2,148 $2,375 $2,581 $2,337 $2,809 $2,932 1Q07 2Q07 3Q07 4Q
Slide 12: Consumer Services
Consumer Services Strategies New leadership Development of new product offerings Sales blitzes Internal sales campaigns with coordinated marketing efforts Consumer Loans increased for the first time in several quarters 20% increase in checking account openings in June Opportunities Increase market p
Slide 13: Financials
Financials Year-to-Date Income Statement (thousands) Net Interest Income (after provision) 79,475 $ 75,696 $ 3,779 $ 5% Non-Interest Income 26,545 23,827 2,718 11% Non-Interest Expense 77,741 74,652 3,089 4% Taxes 4,245 2,488 1,757 71% Net Income 24,034 $ 22,383 $ 1,651 $ 7% EPS (diluted) 0.33 $ 0.3
Slide 14: Net Interest Margin
2.75 2.85 2.95 3.05 3.15 3.25 3.35 3.45 3.55 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08* Net Interest Margin *Excludes loan prepayment fee which contributed 12bps to NIM (3.54%) Interest earning asset growth Lower cost of funds - higher priced CDs running off
Slide 15: Loans
Loans Commercial Loan Growth (YTD) Commercial & Industrial 45% Construction 24% Real Estate 31% Total loans increased 11% YTD Commercial loans increased 21% YTD Total Loans (billions) $3.5 $3.6 $3.7 $3.7 $3.9 $4.1 FY04 FY05 FY06 FY07 1Q08 2Q08
Slide 16: Asset Quality
Asset Quality Responsible, relationship driven lender No direct subprime exposure Same conservative underwriting standards, regardless of where we are in the credit cycle All mortgage-backed securities in our investment portfolio are AAA rated and backed by U.S. government agencies 99% of our pooled
Slide 17: Investment Portfolio
$1.6B U.S. Agency 6% Pooled Trust Preferred 7% Single Issue Trust Preferred 1% Agency MBS, CMO's 63% Equity Securities 5% Tax-Free Municipals 18% Investment Portfolio As of 06/30/08 Bank Stock 29% Other Stock 2% FHLB Stock 69% Bank stocks consist exclusively of regional financial institutions
Slide 18: Investment Consideration
Investment Consideration We are a conservative financial institution with room to grow within our current footprint Execution = Results Improving fundamentals Near-term growth catalyst, long-term focus - increase internal capital generation
Slide 19: Appendix
Appendix
Slide 20: Demographic Profile
Demographic Profile Market Demographics — Room to grow within our market Source: SNL Financial Ownership: Current County Market Rank Number of Branches Company Deposits in Market ($000) Total Deposits in Market ($000) Deposit Market Share (%) Percent of Franchise (%) Median HH Income ($) HH Income C
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Slide 22: Company Overview: Present
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Slide 23: Strong dividend history
• Strong dividend history • Attractive yield, especially in today’s interest rate environment Dividend Dividend Yield Increase earnings to return dividend payout ratio to a more “normalized” level Source: SNL Financial 0% 1% 2% 3% 4% 5% 6% 7% 8% FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 2Q08 Y
Slide 24: Commercial Loans
Commercial Loans Committed Balances by Industry June 30, 2008 6% 13% 5% 8% 37% 22% 3% 6% Construction Manufacturing Wholesale Trade Retail Trade Finance Insurance and Real Estate Services Public Administration Miscellaneous
Slide 25: Asset Quality
Asset Quality *Excludes one large credit placed into non-accrual during 2Q07 ($29,950) 5,000 10,000 15,000 20,000 25,000 30,000 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Non-Accrual Past Due +90 Days
Slide 26: 12 Month Total Shareholder Return
FCF 21.7% KBW Regional Bank Index -29.8% Regional Peer Group -12.1% Total Return As of 07/24/08 12 Month Total Shareholder Return Source: SNL Financial
Slide 27: Definitions
Definitions Community Bank System, Inc. CBU F.N.B. Corporation FNB First Financial Bancorp. FFBC FirstMerit Corporation FMER Fulton Financial Corporation FULT Harleysville National Corporation HNBC National Penn Bancshares, Inc. NPBC NBT Bancorp Inc. NBTB Park National Corporation PRK Provident Bank
Slide 28: Notes
Notes