OREANDA-NEWS. Fitch Ratings has affirmed and withdrawn the ratings for First Commonwealth Financial Corporation (FCF) and its principal banking subsidiary First Commonwealth Bank at 'BBB-' with a Stable Outlook. Fitch has chosen to withdraw the ratings of FCF for commercial reasons. A full list of ratings follows at the end of this release.

KEY RATING DRIVERS - IDRs, VRs AND SENIOR DEBT

FCF's ratings affirmation reflects the company's solid capital position and improving asset quality. Ratings continue to be constrained by the bank's weak profitability relative to community banking peers. Fitch notes that there has not been a material change to FCF credit profile since the company was last reviewed in September 2014 as part of Fitch' community bank peer review.

Fitch considers FCF's capital position to be a relative strength for the bank with a tangible common equity ratio totalling to 8.92% at year-end 2014. Regulatory capital ratios are also above well-capitalized standards with Tier 1 leverage and total risk based capital (RBC) totalling 9.85% and 12.79%, respectively, for year-end 2014. Fitch expects FCF to continue to manage capital to levels comparable to peers as the bank works through remaining legacy credit issues and executes additional share repurchases.

FCF's asset quality metrics continued to trend down and have improved marginally since the last review. Nonperforming assets fell to 0.99% of total assets as of year-end 2014 down from 1.15% at year-end 2013 and 1.99% at year-end 2012. Net charge-offs also fell to 0.31% of average loans for 2014 from 0.76% at year-end 2013.

FCF's earnings continue to be pressured by the prolonged low interest rate environment and elevated noninterest expenses. FCF's net interest margin (NIM) ranks was 3.27% for 2014, down from 3.39% at year-end 2013. Return on average assets (ROAA) and return on average equity (ROAE) were also below industry and community banking peer averages at 0.71% and 6.18% for 2014.

RATING SENSITIVITIES - IDRS, VRs, AND SENIOR DEBT

Rating sensitivities are no longer relevant given today's rating withdrawal.

KEY RATING DRIVERS - SUSBIDIARY AND AFFILIATED COMPANY

First Commonwealth Bank is a wholly owned subsidiary of FCF. First Commonwealth Bank's ratings are aligned with FCF reflecting Fitch's view that the bank subsidiary is core to the franchise.

RATING SENSITIVITIES - SUSBIDIARY AND AFFILIATED COMPANY

Rating sensitivities are no longer relevant given today's rating withdrawal.

KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR

FCF's Support Rating and Support Rating Floor of '5' and 'NF' reflect Fitch's view that the company is unlikely to procure extraordinary support should such support be needed.

RATING SENSITIVITIES - SUPPORT RATING AND SUPPORT RATING FLOOR

Rating sensitivities are no longer relevant given today's rating withdrawal.

KEY RATING DRIVERS - LONG- AND SHORT-TERM DEPOSITS

First Commonwealth Bank's long- and short-term deposit ratings reflect Fitch's view of how these deposits would be treated in a liquidation by the FDIC.

RATING SENSITIVITIES - LONG AND SHORT TERM DEPOSITS

Rating sensitivities are no longer relevant given today's rating withdrawal.

Fitch has affirmed and withdrawn the following ratings:

First Commonwealth Financial Corp.
--Long-term Issuer Default Rating (IDR) at 'BBB-';
--Short-term IDR at 'F3';
--Viability Rating at 'bbb-';
--Support Floor at 'NF'
--Support at '5'.

First Commonwealth Bank
--Long-term IDR at 'BBB-';
--Long-term deposit at 'BBB'';
--Short-term IDR at 'F3';
--Viability Rating at 'bbb-';
--Short-term deposit at 'F2';
--Support Floor at 'NF';
--Support at '5'.