First · NYSE:FCF
First — First Commonwealth Financial — Shareholder Meeting (April 2009)
35 slides from First's shareholder meeting presentation, Apr 20, 2009
Slide 1: Welcome! 2009 Annual Shareholder Meeting
Welcome! 2009 Annual Shareholder Meeting April 20, 2009 Exhibit 99.1
Slide 2: Welcoming Remarks
Welcoming Remarks David S. Dahlmann Chairman of the Board First Commonwealth Financial Corporation
Slide 3: Business Meeting
Business Meeting David R. Tomb, Jr., Esq. Secretary and Treasurer First Commonwealth Financial Corporation Election of Directors Incentive Compensation Plan
Slide 4: Chairman's Message
Chairman’s Message
Slide 5: Chairman's Message: Accountable Governance, Strength & Stability
Chairman’s Message Accountable Governance Strength & Stability
Slide 6: Chairman's Message: Strategic Direction & Execution
Chairman’s Message Strategic Direction & Execution Leadership & Accountability Accurate & Transparent Communication
Slide 7: Chairman's Message: Dividend Reduction
Chairman’s Message Dividend Reduction Timing Change
Slide 8: CEO's Address
CEO’s Address John J. Dolan President & CEO First Commonwealth Financial Corporation
Slide 9: Executive Officers
CEO’s Address Executive Officers Thad Clements – EVP / Strategic Resources Ed Lipkus – EVP / CFO Len Lombardi – SVP / Chief Audit Executive Sue McMurdy – EVP / CIO John Previte – SVP / Investments Mike Price – President / First Commonwealth Bank Dave Tomb – SVP / Secretary & Treasurer
Slide 10: CEO's Address Overview
CEO’s Address Overview 2008 Environment 2008 Performance Critical Decisions
Slide 11: 2008 Environment
CEO’s Address 2008 Environment Market Volatility Unemployment Rate Real Estate Market in Turmoil Federal Bailouts Changes to Competitive Landscape Declining Consumer Confidence
Slide 12: 2008 Performance
CEO’s Address 2008 Performance Household Growth Core Net Income Growth Checking & Savings Growth Loan Portfolio Growth Improved Brand Recognition and Market Acceptance Stock Performance
Slide 13: Stock Performance: Total Return vs. Peers
Company Name Total Assets ($000) 1 Year 3 Year 5 Year Total Return (%) Total Return (%) Total Return (%) WesBanco, Inc. (WSBC) 5,222,041 -2.46 -20.51 -7.88 Park National Corporation (PRK) 7,070,720 -16.47 -39.37 -36.28 First Commonwealth Financial Corp. (FCF) 6,425,880 -18.91 -28.23 -21.66 S&T Banco
Slide 14: Critical Decisions
CEO’s Address Critical Decisions Capital Raise TARP Decision Former National City Branches Dividend
Slide 15: Dividend
CEO’s Address Dividend Challenges & Uncertainties Opportunities
Slide 16: Challenges for 2009 and Beyond
CEO’s Address Challenges for 2009 and Beyond Market Volatility Accounting Rules FDIC Costs Economic Conditions Credit Quality
Slide 17: Opportunities
CEO’s Address Opportunities Households Branches Whole Banks
Slide 18: Strength & Stability
CEO’s Address Strength & Stability Well-capitalized Strong Liquidity Core Earnings Growth $3 Million in Expense Reductions
Slide 19: Executive Compensation
Executive Compensation Robert J. Ventura Chairman FCFC Executive Compensation Committee
Slide 20: General Compensation Philosophy
Executive Compensation General Compensation Philosophy Attract and retain exceptional leaders Align management’s goals with shareholders’ interests
Slide 21: Base Salaries and Peer Group
th Executive Compensation Base Salaries percentile of peer group Peer group composition
Slide 22: 1-Year Total Shareholder Return vs. Peer Group
Financial Performance Review FCF was above the median of peers for 1-Year TSR 1-Year Total Shareholder Return Growth First Commonwealth vs. Peer Group 12/31/2007 - 12/31/2008 23% -100% -80% -60% -40% -20% 0% 20% 40% 60% IBNK AMFI IFC TSFG UCBI SUSQ FNB NPBC HNBC PRK FCF UBSI ONB STBA WSBC
Slide 23: Incentive Compensation Plans
Executive Compensation Incentive Compensation Plans Annual incentive plan (short-term) Long-term incentive plan (rolling three-year period)
Slide 24: Core Earnings vs. Reported Earnings
Executive Compensation Core Earnings vs. Reported Earnings Definition of core earnings Core earnings establish the engine for long-term growth
Slide 25: 2008 Annual Incentive Plan
2008 Annual Incentive Plan Actual 2007 Target 2008 Needed Change CEO EO's 40% 25% CORE EPS $0.62 $0.69 11.3% CORE ROE 7.94% 9.1% 14.6% - CORE REVENUE $(000,000's) 209.1 223.7 7.0% - GROWTH IN HOUSEHOLDS * * * 80% 70% INDIVIDUAL GOALS 100% 100% * - Not Disclosed Weight
Slide 26: Total Shareholder Return vs. Peers and Indices
Financial Performance Review FCF total shareholder return declined, approximating 25th percentile peer performance until a sharp upturn in June 2007 and at the end of 2008 exceeded 75th percentile performance and the other indices. Total Shareholder Return FCF vs. Peers & S&P Smallcap (S&P 600) and
Slide 27: Annual Incentive Plan
Executive Compensation Annual Incentive Plan 2008 bonuses Same rules to apply in 2009 Trigger of $0.68 per share ELT has foregone 2009 bonuses
Slide 28: Long-Term Incentive Plan
Executive Compensation Long-Term Incentive Plan Measures • Reported EPS • Reported ROE • At times, revenue growth, efficiency ratio, etc. Three concurrent plan periods Link management decisions to the creation of shareholder value
Slide 29: Equity Plan
Executive Compensation Equity Plan Proposal being voted today Allows awards to be paid in stock instead of cash Ownership requirement for executives
Slide 30: Risk Assessment
Executive Compensation Risk Assessment Voluntarily undertaken by First Commonwealth
Slide 31: Executive Compensation Summary
Executive Compensation Summary Balance components of the compensation plan Tool to attract and retain the right people Align management’s interests with shareholders’ interests Reinforce long-term strength and stability of the company
Slide 32: . . of FIRST
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Slide 33: Results of Election
Results of Election David R. Tomb, Jr., Esq. Secretary and Treasurer
Slide 34: Thank You!
Thank You! 2009 Annual Shareholder Meeting April 20, 2009
Slide 35: a Eilon
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