First Commonwealth Financial has reported that its net income for the fourth quarter of 2008 was $8.89 million, or $0.11 per diluted share, a decline as compared to $11.6 million, or $0.16 per diluted share, for the same period in 2007.
Fourth quarter 2008 annualised GAAP return on average equity and average assets were 5.79% and 0.56%, respectively, compared to 8.08% and 0.80% for same quarter in 2007.
Net interest income increased $12.5 million, or 31.1% to $52.66 million, compared to $40.16 million for the fourth quarter of 2007. The net interest margin on a tax equivalent basis for the fourth quarter of 2008 increased 55 basis points to 3.87% compared with 3.32% in the corresponding period in 2007.
GAAP net income was $43.1 million, or $0.58 per diluted share, for the year ended December 31, 2008, compared to the $46.3 million, or $0.63 per diluted share, reported in 2007. Return on average equity and average assets were 7.45% and 0.70%, respectively, compared to 8.08% and 0.80% for the year 2007.
Net interest income for the year ended December 31, 2008 was 16.9% higher than 2007, primarily due to an 86 basis point decrease in the cost of interest-bearing liabilities. The net interest margin for the year 2008 increased 23 basis points to 3.57% from 3.34% for the same period in 2007.
John Dolan, president and CEO of First Commonwealth Financial, said: We experienced strong growth in loans and low cost deposits during the fourth quarter. We are capitalising on significant opportunities within our footprint and we expect to continue our loan and deposit growth into 2009.
