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Investment Securities
 9 Months Ended
Sep. 30, 2019
Investment Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] Investment Securities
Securities Available for Sale
Below is an analysis of the amortized cost and estimated fair values of securities available for sale at:
 
September 30, 2019
 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
(dollars in thousands)
Obligations of U.S. Government Agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-Backed Securities – Residential
$
8,112

 
$
655

 
$
—

 
$
8,767

 
$
9,011

 
$
479

 
$
(84
)
 
$
9,406

Mortgage-Backed Securities – Commercial
168,006

 
3,585

 
—

 
171,591

 
169,633

 
214

 
(2,103
)
 
167,744

Obligations of U.S. Government-Sponsored Enterprises:
 
 
 
 
 
 

 
 
 
 
 
 
 

Mortgage-Backed Securities – Residential
583,158

 
4,260

 
(2,594
)
 
584,824

 
686,906

 
1,846

 
(15,391
)
 
673,361

Other Government-Sponsored Enterprises
1,000

 
—

 
(2
)
 
998

 
10,000

 
12

 
—

 
10,012

Obligations of States and Political Subdivisions
21,959

 
209

 
—

 
22,168

 
27,592

 
126

 
(6
)
 
27,712

Corporate Securities
22,914

 
1,121

 
—

 
24,035

 
20,912

 
321

 
(221
)
 
21,012

Total Securities Available for Sale
$
805,149

 
$
9,830

 
$
(2,596
)
 
$
812,383

 
$
924,054

 
$
2,998

 
$
(17,805
)
 
$
909,247



Mortgage-backed securities include mortgage-backed obligations of U.S. Government agencies and obligations of U.S. Government-sponsored enterprises. These obligations have contractual maturities ranging from less than one year to approximately 30 years with lower anticipated lives to maturity due to prepayments. All mortgage-backed securities contain a certain amount of risk related to the uncertainty of prepayments of the underlying mortgages. Interest rate changes have a direct impact upon prepayment speeds; therefore, First Commonwealth uses computer simulation models to test the average life and yield volatility of all mortgage-backed securities under various interest rate scenarios to monitor the potential impact on earnings and interest rate risk positions.

Expected maturities will differ from contractual maturities because issuers may have the right to call or repay obligations with or without call or prepayment penalties. Other fixed income securities within the portfolio also contain prepayment risk.
The amortized cost and estimated fair value of debt securities available for sale at September 30, 2019, by contractual maturity, are shown below.
 
Amortized
Cost
 
Estimated
Fair Value
 
(dollars in thousands)
Due within 1 year
$
1,527

 
$
1,531

Due after 1 but within 5 years
36,106

 
36,779

Due after 5 but within 10 years
8,240

 
8,891

Due after 10 years
—

 
—

 
45,873

 
47,201

Mortgage-Backed Securities (a)
759,276

 
765,182

Total Debt Securities
$
805,149

 
$
812,383

 
(a)
Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $176.1 million and a fair value of $180.4 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $583.2 million and a fair value of $584.8 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.
 
Proceeds from sales, gross gains (losses) realized on sales, maturities and other-than-temporary impairment charges related to securities available for sale were as follows for the nine months ended September 30:
 
2019
 
2018
 
(dollars in thousands)
Proceeds from sales
$
—

 
$
15,939

Gross gains (losses) realized:
 
 
 
Sales transactions:
 
 
 
Gross gains
$
—

 
$
4,719

Gross losses
—

 
—

 
—

 
4,719

Maturities
 
 
 
Gross gains
15

 
3,383

Gross losses
—

 
—

 
15

 
3,383

Net gains and impairment
$
15

 
$
8,102


Gross gains from maturities recognized in 2019 were the result of calls on five municipal securities. Gross gains from sales transactions of $4.7 million recognized in 2018 were the result of the sale of the remaining pool trust preferred security portfolio. Gross gains from maturities of $3.4 million recognized in 2018 were the result of successful auction calls on PreSTL XIV and PreSTL IX, two of our pooled trust preferred securities.
Securities available for sale with an estimated fair value of $629.4 million and $636.3 million were pledged as of September 30, 2019 and December 31, 2018, respectively, to secure public deposits and for other purposes required or permitted by law.
Securities Held to Maturity
Below is an analysis of the amortized cost and fair values of debt securities held to maturity at:
 
September 30, 2019
 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
(dollars in thousands)
Obligations of U.S. Government Agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-Backed Securities – Residential
$
3,549

 
$
57

 
$
—

 
$
3,606

 
$
3,635

 
$
—

 
$
(97
)
 
$
3,538

Mortgage-Backed Securities- Commercial
54,244

 
173

 
(106
)
 
54,311

 
55,221

 
—

 
(2,327
)
 
52,894

Obligations of U.S. Government-Sponsored Enterprises:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-Backed Securities – Residential
245,238

 
1,762

 
(297
)
 
246,703

 
279,109

 
212

 
(7,254
)
 
272,067

Mortgage-Backed Securities – Commercial
12,361

 
123

 
—

 
12,484

 
13,159

 
—

 
(258
)
 
12,901

Obligations of States and Political Subdivisions
41,898

 
626

 
—

 
42,524

 
42,331

 
175

 
(313
)
 
42,193

Debt Securities Issued by Foreign Governments
600

 
—

 
(4
)
 
596

 
400

 
—

 
—

 
400

Total Securities Held to Maturity
$
357,890

 
$
2,741

 
$
(407
)
 
$
360,224

 
$
393,855

 
$
387

 
$
(10,249
)
 
$
383,993


The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties.
 
Amortized
Cost
 
Estimated
Fair Value
 
(dollars in thousands)
Due within 1 year
$
512

 
$
512

Due after 1 but within 5 years
8,084

 
8,144

Due after 5 but within 10 years
33,902

 
34,464

Due after 10 years
—

 
—

 
42,498

 
43,120

Mortgage-Backed Securities (a)
315,392

 
317,104

Total Debt Securities
$
357,890

 
$
360,224

(a)
Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $57.8 million and a fair value of $57.9 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $257.6 million and a fair value of $259.2 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.
Securities held to maturity with an amortized cost of $324.9 million and $250.3 million were pledged as of September 30, 2019 and December 31, 2018, respectively, to secure public deposits and for other purposes required or permitted by law.