(Source: Associated Press/AP Online)
INDIANA, Pa. - First Commonwealth Financial Corp. on Monday said it cut its quarterly dividend to 3 cents per share, down from a payout of 12 cents per share the previous quarter.
The reduced dividend is payable on Aug. 14 to shareholders of record at the close of business Aug. 6.
David S. Dahlmann, chairman of First Commonwealth's board, said the company "believes we must act responsibly and take every prudent measure to maintain our strong capital position" amid an economic recession.
Also on Monday, First Commonwealth said it took a nearly $19 million second-quarter loss as its provision for bad loans swelled, primarily from the regional bank's exposure to commercial construction projects outside Pennsylvania.
Shares of First Commonwealth rose 57 cents, or about 9 percent, to $6.87 in midday trading.
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