First Commonwealth Announces Third Quarter 2013 Financial Results; Declares Quarterly Dividend

PR Newswire

INDIANA, Pa., Oct. 23, 2013 /PRNewswire/ -- First Commonwealth Financial Corporation (FCF) today reported net income of $15.9 million, or $0.16 diluted earnings per share, for the third quarter ended September 30, 2013, as compared to net income of $9.8 million, or $0.09 diluted earnings per share, in the third quarter of 2012. The increase in net income was due to higher net interest income, lower provision for loan losses and noninterest expense, partially offset by lower noninterest income. For the nine months ended September 30, 2013, net income was $32.2 million, or $0.33 diluted earnings per share, compared to net income of $33.2 million, or $0.32 diluted earnings per share, for the comparable period in 2012. The decrease in net income was the result of lower net interest income, higher provision for loan losses and reduced noninterest income, partially offset by lower noninterest expense.

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T. Michael Price, President and Chief Executive Officer commented, "We are pleased that credit performance in both our loan and trust preferred investment portfolios had a positive impact on our earnings results this quarter. Best-in-class performance begins with lower long-term credit costs, and we believe the effectiveness of our credit infrastructure is becoming increasingly evident and will serve as a competitive advantage over time."

Net Interest Income and Net Interest Margin

Third quarter 2013 net interest income, on a fully taxable equivalent basis, was $48.3 million, a $0.6 million, or 1%, increase as compared to the third quarter of 2012. The increase is primarily the result of $1.0 million of income recognized on other-than-temporarily impaired pooled trust preferred collateralized debt obligations that received payments during the quarter.  The additional income beneficially affected the net interest margins for the quarter and twelve-month period ending September 30, 2013 by eight basis points and two basis points, respectively. Net interest margin was 3.43%, 3.35% and 3.54% for the three-month periods ended September 30, 2013, June 30, 2013 and September 30, 2012, respectively. For the nine months ended September 30, 2013 net interest income, on a fully taxable equivalent basis, decreased $3.7 million to $141.4 million as compared to the same period of 2012. The decline was primarily due to a 22 basis point reduction in the net interest margin.  The 12-month change in net interest income was impacted by $1.0 million of delinquent interest recognized in the first quarter of 2012 for one commercial loan that paid off, offset by the aforementioned $1.0 million of additional income from the trust preferred securities. The net interest margin for the nine months ended September 30, 2013 and 2012 was 3.41% and 3.63%, respectively. The prolonged low interest rate environment is causing net interest margin compression, and the negative effects were partially offset by a $188.4 million, or 4%, increase in interest-earning assets over the twelve-month period. 

Loan growth for the quarter ended September 30, 2013, was $10.3 million compared to the prior quarter and $25.7 million over the past 12 months.  Price noted, "Loan growth over the past 12 months has been significantly muted by our efforts to reduce risks in the loan portfolio through sector concentration limits, vigorous management of hold limits, aggressive charge-offs of problem loans and encouraging marginal credits to seek financing elsewhere. Although these actions dampen short-term performance metrics, this strategic discipline is absolutely critical to long-term shareholder returns."

Deposits increased $123.4 million over the past 12 months, including a $50.4 million, or 6%, increase in noninterest-bearing demand checking accounts. Demand accounts currently comprise 20% of total deposits. Changes in the 2013 deposit mix also include $167.0 million of purchased wholesale deposits. The wholesale deposit purchases represented an alternative to borrowed funds due to more favorable rates and terms than retail deposits.

Credit Quality

The provision for credit losses was $2.7 million and $18.0 million for the three and nine months ended September 30, 2013, respectively, as compared to $6.8 million and $14.8 million in the prior-year periods. The nine-month increase in provision expense is primarily related to the $13.1 million charge-off of an $18.6 million legacy credit relationship to a local real estate developer in the second quarter of 2013.

For the quarter ended September 30, 2013, nonperforming loans were $71.2 million, or 1.68% of total loans, a decrease of $1.9 million from June 30, 2013 and $22.7 million from September 30, 2012.

During the third quarter of 2013, net charge-offs were $5.2 million compared to $4.3 million in the third quarter of 2012. Net charge-offs for the third quarter included $2.3 million for a loan to a local energy company that was previously classified as nonaccrual and had a specific reserve of $2.3 million. For the nine months ended September 30, 2013, net charge-offs were $30.2 million, or 0.95% of average loans on an annualized basis, compared to $12.0 million, or 0.38% of average loans on an annualized basis, for the same period in 2012. 

The allowance for credit losses as a percentage of total loans outstanding was 1.30%, 1.36% and 1.52% for September 30, 2013, June 30, 2013 and September 30, 2012, respectively.

Other Real Estate Owned ("OREO") acquired through foreclosure was $9.7 million at September 30, 2013, as compared to $15.6 million and $16.0 million at June 30, 2013 and September 30, 2012, respectively. During the third quarter of 2013, five OREO properties were sold generating gains of $1.1 million.

Noninterest Income

Noninterest income, excluding net security gains, decreased $0.8 million, or 5%, in the third quarter of 2013 compared to the same period last year. Positive factors affecting noninterest income include the aforementioned OREO gains and a $0.8 million increase in deposit/debit card revenues in 2013. The third quarter 2012 results included a $1.9 million gain on the early termination of a mortgage banking joint venture relationship.

For the nine months ended September 30, 2013, noninterest income, excluding net security gains, decreased $4.5 million, or 9%, when compared to the same period of 2012, primarily attributable to $2.3 million of lower gains on the sale of troubled commercial loans and the aforementioned mortgage banking termination fee in 2012.

Net security gains for the three and nine months ended September 30, 2013 and September 30, 2012 were $0.2 million. First Commonwealth has not incurred any other-than-temporary impairment charges in the investment portfolio since the third quarter of 2010.

Noninterest Expense

Noninterest expense decreased $4.7 million to $40.0 million in the third quarter of 2013 as compared to $44.8 million in the third quarter of 2012.  The third quarter of 2012 included the effects of a $3.5 million loss related to an external fraud. Other noninterest expense improvements in the third quarter 2013, as compared to the same period of 2012, include $0.5 million of data processing expense and $0.4 million of loan collection expense.

For the nine months ended September 30, 2013, as compared to the same period last year, noninterest expense decreased $9.9 million, or 7%.  The decline was primarily attributable to reductions of $3.2 million in operational/fraud losses, $3.2 million in OREO write-downs, $1.8 million in collection and repossession costs, $1.1 million in salaries and employee benefits, $1.2 million in data processing/professional expense, $0.4 million in FDIC insurance and $1.0 million in other expense. These expense reductions were partially offset by a $1.6 million charge for early extinguishment of debt for $32.5 million of fixed-rate trust preferred debt and a $0.8 million contingency reserve established for a tax reporting issue in the first half of 2013.

Full-time equivalent staff was 1,377 and 1,412 for the periods ended September 30, 2013 and 2012, respectively. The efficiency ratio, calculated as total noninterest expense as a percentage of total revenue (total revenue consists of net interest income, on a fully taxable equivalent basis, plus total noninterest income, excluding net impairment losses and net securities gains), was 66% for the nine months ended September 30, 2013, and 68% for the same period of 2012. 

On September 30, 2013, First Commonwealth executed a contract with Jack Henry and Associates to license the Jack Henry and Associates SilverLake System® core processing software and to outsource certain data processing services. A system conversion is expected to occur during the second or third quarter of 2014.  First Commonwealth will incur approximately $12.0 million of charges related to accelerated depreciation for data processing hardware and software, early termination charges on existing contracts and staffing and employment-related charges.  These charges will be recognized beginning in the fourth quarter of 2013 through the anticipated conversion date.  First Commonwealth expects to achieve $6.0 to $8.0 million in lower annual technology-related expenses as well as employment and other operational expense reductions following the conversion date.

"To date, our efficiency efforts have been effective, but incremental in nature," stated Norm Montgomery, Executive Vice President / Business Integration. "The conversion of our core processing platform represents a defining step in the evolution of our IT and operations infrastructure, and we are confident that the transition to an integrated, best-of-suite platform will provide a transformative catalyst for both our operating efficiency and our delivery process, resulting in a vastly improved customer experience."

Dividend/Buybacks

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.06 per share which is payable on November 15, 2013 to shareholders of record as of November 4, 2013. This dividend represents a 3% projected annual yield utilizing the October 22, 2013 closing market price of $8.14.

On January 29, 2013, First Commonwealth's Board of Directors authorized a $25.0 million common stock repurchase program in addition to the $50.0 million common stock repurchase program announced on June 19, 2012. Under these programs, management is authorized to repurchase shares through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. Depending on market conditions and other factors, repurchases may be made at any time or from time to time, without prior notice. First Commonwealth may suspend or discontinue the programs at any time. As of September 30, 2013, First Commonwealth has purchased 9,821,489 shares at an average price of $6.86 per share under these programs.

First Commonwealth's capital ratios for leverage, Total and Tier I were 9.8%, 13.2% and 12.0%, respectively on September 30, 2013.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the third quarter of 2013 on Wednesday, October 23, 2013 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-877-353-0037 or through the company's Investor Relations web page at http://ir.fcbanking.com. A replay of the webcast will be available approximately two hours following the conclusion of the conference. A link to the webcast will be accessible at this web page for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth is a $6.2 billion financial holding company headquartered in Indiana, Pennsylvania.  It operates 110 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: deterioration of 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; the failure of a third party to perform critical functions or services; 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, including 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.

--2PRFCFERN2--

 


FIRST COMMONWEALTH FINANCIAL CORPORATION







CONSOLIDATED FINANCIAL DATA










Unaudited










(dollars in thousands, except per share data)





















For the Three Months Ended


For the Nine Months
Ended


September
30,


June 30,


September
30,


September
30,


September
30,


2013


2013


2012


2013


2012

SUMMARY RESULTS OF OPERATIONS









Net interest income (FTE)(1)

$

48,255



$

46,728



$

47,704



$

141,429



$

145,099


Provision for credit losses

2,714



10,800



6,754



18,011



14,838


Noninterest income

17,083



14,931



17,855



46,899



51,331


Noninterest expense

40,045



41,998



44,765



123,497



133,365


Net income

15,854



5,816



9,847



32,223



33,219












Earnings per common share (diluted)

$

0.16



$

0.06



$

0.09



$

0.33



$

0.32












KEY FINANCIAL RATIOS










Return on average assets

1.02

%


0.38

%


0.66

%


0.70

%


0.75

%

Return on average shareholders' equity

8.83

%


3.16

%


5.07

%


5.88

%


5.76

%

Efficiency ratio(2)

61.50

%


68.12

%


68.45

%


65.66

%


67.95

%

Net interest margin (FTE)(1)

3.43

%


3.35

%


3.54

%


3.41

%


3.63

%











Book value per common share

$

7.45



$

7.37



$

7.45






Tangible book value per common share(4)

5.76



5.69



5.88






Market value per common share

7.59



7.37



7.05






Cash dividends declared per common share

0.06



0.06



0.05



$

0.17



$

0.13












ASSET QUALITY RATIOS










Allowance for credit losses as a percent of










end-of-period loans

1.30

%


1.36

%


1.52

%





Allowance for credit losses as a percent of










nonperforming loans

77.17

%


78.60

%


68.27

%





Nonperforming loans as a percent of










end-of-period loans

1.68

%


1.73

%


2.23

%





Nonperforming assets as a percent of










total assets

1.33

%


1.45

%


1.85

%





Net charge-offs as a percent of average loans










(annualized)

0.49

%


1.47

%


0.41

%















CAPITAL RATIOS










Shareholders' equity as a percent of total assets

11.56

%


11.55

%


12.98

%





Tangible common equity as a percent of










   tangible assets(3)

9.18

%


9.16

%


10.54

%





Leverage Ratio

9.84

%


9.89

%


11.69

%





Risk Based Capital - Tier I

12.04

%


12.05

%


13.68

%





Risk Based Capital - Total

13.22

%


13.27

%


14.93

%





 


 

FIRST COMMONWEALTH FINANCIAL CORPORATION





CONSOLIDATED FINANCIAL DATA







Unaudited







(dollars in thousands, except per share data)















For the Three Months Ended


For the Nine Months
Ended


September
30,

June 30,

September
30,


September
30,

September
30,


2013

2013

2012


2013

2012

INCOME STATEMENT







Interest income

$

52,308


$

50,981


$

53,880



$

155,050


$

165,208


Interest expense

5,079


5,283


7,230



16,705


23,470


Net Interest Income

47,229


45,698


46,650



138,345


141,738


   Taxable equivalent adjustment(1)

1,026


1,030


1,054



3,084


3,361


Net Interest Income  (FTE)

48,255


46,728


47,704



141,429


145,099


Provision for credit losses

2,714


10,800


6,754



18,011


14,838


Net Interest Income after Provision for Credit
Losses (FTE)

45,541


35,928


40,950



123,418


130,261









Changes in fair value on impaired securities

236


2,841


1,374



4,941


1,549


Non-credit related gains on securities not







expected to be sold (recognized in other







comprehensive income)

(236)


(2,841)


(1,374)



(4,941)


(1,549)


Net Impairment Losses

0


0


0



0


0


Net securities gains

229


4


163



237


163


Trust income

1,406


1,608


1,631



4,677


4,780


Service charges on deposit accounts

4,227


3,815


3,736



11,443


10,975


Insurance and retail brokerage commissions

1,822


1,384


1,844



4,623


4,938


Income from bank owned life insurance

1,359


1,432


1,465



4,219


4,369


Gain on sale of assets

1,356


425


757



2,056


4,316


Card related interchange income

3,536


3,490


3,260



10,214


9,659


Joint venture termination fee

0


0


1,909



0


1,909


Other income

3,148


2,773


3,090



9,430


10,222


Total Noninterest Income

17,083


14,931


17,855



46,899


51,331









Salaries and employee benefits

20,998


21,497


21,280



64,288


65,401


Net occupancy expense

3,274


3,221


3,235



10,130


9,942


Furniture and equipment expense

3,294


3,297


3,118



9,863


9,326


Data processing expense

1,492


1,503


1,987



4,511


5,346


Pennsylvania shares tax expense

1,516


1,517


1,510



4,223


4,203


Intangible amortization

193


297


367



848


1,109


Collection and repossession expense

860


851


1,281



2,862


4,650


Other professional fees and services

878


948


1,028



2,795


3,167


FDIC insurance

1,178


1,084


1,258



3,312


3,757


Loss on sale or write-down of assets

479


343


426



1,009


4,215


Operational losses

238


214


3,657



790


4,033


Loss on early redemption of subordinated debt

0


1,629


0



1,629


0


Other operating expenses

5,645


5,597


5,618



17,237


18,216


Total Noninterest Expense

40,045


41,998


44,765



123,497


133,365









Income before Income Taxes

22,579


8,861


14,040



46,820


48,227


   Taxable equivalent adjustment(1)

1,026


1,030


1,054



3,084


3,361


Income tax provision

5,699


2,015


3,139



11,513


11,647


Net Income

$

15,854


$

5,816


$

9,847



$

32,223


$

33,219









Shares Outstanding at End of Period

95,544,765


96,442,161


103,890,029



95,544,765


103,890,029


Average Shares Outstanding Assuming Dilution

96,208,545


97,577,010


104,098,383



97,675,352


104,595,396


 


 

FIRST COMMONWEALTH FINANCIAL CORPORATION




CONSOLIDATED FINANCIAL DATA






Unaudited






(dollars in thousands)



















September 30,


June 30,


September 30,


2013


2013


2012

BALANCE SHEET (Period End)






Assets






Cash and due from banks

$

88,179



$

77,485



$

85,183


Interest-bearing bank deposits

5,077



4,497



3,881


Securities

1,324,767



1,340,600



1,163,301








Loans

4,240,004



4,229,752



4,214,299


Allowance for credit losses

(54,957)



(57,452)



(64,114)


Net loans

4,185,047



4,172,300



4,150,185








Goodwill and other intangibles

161,483



161,677



162,690


Other assets

386,409



396,457



398,398


Total Assets

$

6,150,962



$

6,153,016



$

5,963,638








Liabilities and Shareholders' Equity






Noninterest-bearing demand deposits

$

908,436



$

900,940



$

858,003








Interest-bearing demand deposits

96,587



101,505



97,834


Savings deposits

2,491,315



2,535,592



2,433,065


Time deposits

1,121,463



1,195,010



1,105,532


Total interest-bearing deposits

3,709,365



3,832,107



3,636,431








Total deposits

4,617,801



4,733,047



4,494,434








Short-term borrowings

551,628



441,848



461,770


Long-term borrowings

216,668



216,782



180,471


Total borrowings

768,296



658,630



642,241








Other liabilities

53,509



50,664



53,072


Shareholders' equity

711,356



710,675



773,891


Total Liabilities and Shareholders' Equity

$

6,150,962



$

6,153,016



$

5,963,638




















 


FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)




For the Three Months Ended



September
30,

Yield/

June 30,

Yield/

September
30,

Yield/


2013

Rate

2013

Rate

2012

Rate

NET INTEREST MARGIN (Quarterly Averages)













Assets







   Loans (FTE)(1)

$

4,258,372


4.19

%

$

4,262,773


4.20

%

$

4,186,446


4.50

%

   Securities and interest bearing bank deposits (FTE)(1)

1,327,656


2.50

%

1,330,752


2.22

%

1,175,476


2.55

%

       Total Interest-Earning Assets (FTE)(1)

5,586,028


3.79

%

5,593,525


3.73

%

5,361,922


4.08

%

Noninterest-earning assets

576,741



577,818



588,954



Total Assets

$

6,162,769



$

6,171,343



$

5,950,876










Liabilities and Shareholders' Equity







Interest-bearing demand and savings deposits

$

2,608,249


0.11

%

$

2,630,512


0.13

%

$

2,530,100


0.16

%

Time deposits

1,144,766


1.06

%

1,216,403


1.05

%

1,101,991


1.45

%

Short-term borrowings

547,393


0.26

%

445,249


0.26

%

485,754


0.25

%

Long-term borrowings

216,733


1.77

%

221,310


1.79

%

181,038


4.10

%

Total Interest-Bearing Liabilities

4,517,141


0.45

%

4,513,474


0.47

%

4,298,883


0.67

%

Noninterest-bearing deposits

885,346



873,827



824,784



Other liabilities

47,932



46,847



53,823



Shareholders' equity

712,350



737,195



773,386



Total Noninterest-Bearing Funding Sources

1,645,628



1,657,869



1,651,993



Total Liabilities and Shareholders' Equity

$

6,162,769



$

6,171,343



$

5,950,876

















Net Interest Margin (FTE) (annualized)(1)


3.43

%


3.35

%


3.54

%

 


FIRST COMMONWEALTH FINANCIAL CORPORATION


CONSOLIDATED FINANCIAL DATA


Unaudited


(dollars in thousands)





For the Nine Months Ended


September
30,

Yield/

September
30,

Yield/


2013

Rate

2012

Rate

NET INTEREST MARGIN (Year-to-Date Averages)










Assets





   Loans (FTE)(1)

$

4,248,048


4.26

%

$

4,148,937


4.64

%

   Securities and interest bearing bank deposits (FTE)(1)

1,299,138


2.35

%

1,189,739


2.74

%

       Total Interest-Earning Assets (FTE)(1)

5,547,186


3.81

%

5,338,676


4.22

%

Noninterest-earning assets

574,639



593,883



Total Assets

$

6,121,825



$

5,932,559








Liabilities and Shareholders' Equity





Interest-bearing demand and savings deposits

$

2,615,158


0.13

%

$

2,553,173


0.18

%

Time deposits

1,167,593


1.08

%

1,156,689


1.55

%

Short-term borrowings

450,219


0.26

%

414,451


0.26

%

Long-term borrowings

239,166


2.17

%

190,720


4.00

%

Total Interest-Bearing Liabilities

4,472,136


0.50

%

4,315,033


0.73

%

Noninterest-bearing deposits

869,526



795,443



Other liabilities

48,020



51,627



Shareholders' equity

732,143



770,456



Total Noninterest-Bearing Funding Sources

1,649,689



1,617,526



Total Liabilities and Shareholders' Equity

$

6,121,825



$

5,932,559













Net Interest Margin (FTE) (annualized)(1)


3.41

%


3.63

%











 


FIRST COMMONWEALTH FINANCIAL CORPORATION





CONSOLIDATED FINANCIAL DATA







Unaudited







(dollars in thousands)















September
30,

June 30,

September
30,





2013

2013

2012




ASSET QUALITY DETAIL







Nonperforming Loans:







Loans on nonaccrual basis

$

42,122


$

41,767


$

40,704





Troubled debt restructured loans on nonaccrual basis

17,807


17,519


46,026





Troubled debt restructured loans on accrual basis

11,290


13,811


7,176





Total Nonperforming Loans

$

71,219


$

73,097


$

93,906





Other real estate owned ("OREO")

9,656


15,603


16,016





Repossessions ("Repo")

695


573


617





Total Nonperforming Assets

$

81,570


$

89,273


$

110,539





Loans past due in excess of 90 days and still accruing

$

2,364


$

2,648


$

2,998





Criticized loans

180,593


223,594


269,041





Nonperforming assets as a percentage of total loans,







plus OREO and Repos

1.92

%

2.10

%

2.61

%




Allowance for credit losses

$

54,957


$

57,452


$

64,114




















For the Three Months Ended


For the Nine Months
Ended


September
30,

June 30,

September
30,


September
30,

September
30,


2013

2013

2012


2013

2012

Net Charge-offs (Recoveries):







Commercial, financial, agricultural and other

$

3,000


$

13,547


$

1,197



$

16,957


$

4,590


Real estate construction

(63)


624


1,987



633


2,235


Commercial real estate

800


683


27



9,930


382


Residential real estate

686


232


481



517


2,653


Loans to individuals

786


524


624



2,204


2,098


Net Charge-offs

$

5,209


$

15,610


$

4,316



$

30,241


$

11,958









Net charge-offs as a percentage of average loans







outstanding (annualized)

0.49

%

1.47

%

0.41

%


0.95

%

0.38

%

Provision for credit losses as a percentage of net







charge-offs

52.10

%

69.19

%

156.49

%


59.56

%

124.08

%

Provision for credit losses

$

2,714


$

10,800


$

6,754



$

18,011


$

14,838

















FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)



RECONCILIATION OF NON-GAAP MEASURES













(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the 35% federal income tax

statutory rate.

(2) Efficiency ratio is "total noninterest expense" as a percentage of total revenue. Total revenue consists of "net interest

income, on a fully taxable equivalent basis," plus "total noninterest income," excluding "net impairment losses" and "net

securities gains."



September 30,


June 30,


September 30,



2013


2013


2012









Tangible Equity:







Total shareholders' equity

$

711,356



$

710,675



$

773,891



Less: intangible assets

161,483



161,677



162,690



Tangible Equity

549,873



548,998



611,201



Less: preferred stock

0



0



0



Tangible Common Equity

$

549,873



$

548,998



$

611,201










Tangible Assets:







Total assets

$

6,150,962



$

6,153,016



$

5,963,638



Less: intangible assets

161,483



161,677



162,690



Tangible Assets

$

5,989,479



$

5,991,339



$

5,800,948










(3)Tangible Common Equity as a percentage of







Tangible Assets

9.18

%


9.16

%


10.54

%









Shares Outstanding at End of Period

95,544,765



96,442,161



103,890,029



(4)Tangible Book Value Per Common Share

$

5.76



$

5.69



$

5.88










Note: Management believes that it is a standard practice in the banking industry to present these non-gaap measures.  These

measures provide useful information to management and investors by allowing them to make peer comparisons.

 

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