UPDATE: Sterne Agee Downgrades First Commonwealth Financial

According to a research report released this morning, Sterne Agee has downgraded First Commonwealth Financial

from Buy to Neutral based on valuation. In the report, Sterne Agee said, “Year to date the shares increased 23% relative to a 15% increase in the NASDAQ Bank index. As the company continues to reduce problem assets, we believe FCF's 10.5% TCE/TA ratio will allow for capital flexibility leading to a potential dividend increase and/or a repurchase plan announcement.” First Commonwealth Financial closed yesterday at $6.47.