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Fair Values of Assets and Liabilities (Tables)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2020
Fair Value Disclosures [Abstract]    
Fair Value Inputs, Assets, Quantitative Information  
In accordance with ASU No. 2011-4, "Fair Value Measurements (Topic 820)," the following table provides information related to quantitative inputs and assumptions used in June 30, 2020 Level 3 fair value measurements.
Fair Value (dollars
in thousands)
Valuation
Technique
Unobservable InputsRange /
(weighted average)
June 30, 2020
Other Investments$1,670  CarryingValueN/AN/A
Impaired Loans758  (a)Gas Reserve StudyDiscount rate10.00%
Gas per MMBTU$1.46 - $1.48 (b)
Oil per BBL/d$36.00 - $36.00 (b)
Limited Partnership Investments6,406  Par ValueN/AN/A
December 31, 2019
Other Investments$1,670  CarryingValueN/AN/A
Impaired Loans884  (a)Gas Reserve StudyDiscount rate10.00%
Gas per MMBTU$2.61 - $3.49 (b)
Oil per BBL/d$47.09 - $53.14 (b)
2,239  Discounted Cash FlowDiscount Rate$3.84 - $9.50
Limited Partnership Investments5,795  Par ValueN/AN/A
 
(a)The remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation.
(b)Unobservable inputs are defined as follows: MMBTU - million British thermal units; BBL/d - barrels per day.
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis  
The tables below present the balances of assets and liabilities measured at fair value on a recurring basis:
 June 30, 2020
 Level 1Level 2Level 3Total
 (dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities - Residential$—  $7,929  $—  $7,929  
Mortgage-Backed Securities - Commercial—  235,594  —  235,594  
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities - Residential—  624,155  —  624,155  
Other Government-Sponsored Enterprises—  1,001  —  1,001  
Obligations of States and Political Subdivisions—  8,984  —  8,984  
Corporate Securities—  24,477  —  24,477  
Total Securities Available for Sale—  902,140  —  902,140  
Other Investments—  10,602  1,670  12,272  
Loans Held for Sale—  30,409  —  30,409  
Other Assets(a)
—  62,036  6,406  68,442  
Total Assets$—  $1,005,187  $8,076  $1,013,263  
Other Liabilities(a)
$—  $68,883  $—  $68,883  
Total Liabilities$—  $68,883  $—  $68,883  
(a)Hedging and non-hedging interest rate derivatives and limited partnership investments
 December 31, 2019
 Level 1Level 2Level 3Total
 (dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities - Residential$—  $8,341  $—  $8,341  
Mortgage-Backed Securities - Commercial—  189,133  —  189,133  
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities - Residential—  661,947  —  661,947  
Other Government-Sponsored Enterprises—  1,000  —  1,000  
Obligations of States and Political Subdivisions—  17,909  —  17,909  
Corporate Securities—  23,962  —  23,962  
Total Securities Available for Sale—  902,292  —  902,292  
Other Investments—  15,091  1,670  16,761  
Loans Held for Sale—  15,989  —  15,989  
Other Assets(a)
—  21,894  5,795  27,689  
Total Assets$—  $955,266  $7,465  $962,731  
Other Liabilities(a)
$—  $21,469  $—  $21,469  
Total Liabilities$—  $21,469  $—  $21,469  
(a)Hedging and non-hedging interest rate derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
For the six months ended June 30, changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
 2020
 Other InvestmentsOther
Assets
Total
 (dollars in thousands)
Balance, beginning of period$1,670  $5,795  $7,465  
Total gains or losses
Included in earnings—  —  —  
Included in other comprehensive income—  —  —  
Purchases, issuances, sales and settlements
Purchases—  611  611  
Issuances—  —  —  
Sales—  —  —  
Settlements—  —  —  
Transfers from Level 3—  —  —  
Transfers into Level 3—  —  —  
Balance, end of period$1,670  $6,406  $8,076  
 
 2019
 Other InvestmentsOther
Assets
Total
 (dollars in thousands)
Balance, beginning of period$1,670  $2,696  $4,366  
Total gains or losses
Included in earnings—  —  —  
Included in other comprehensive income—  (47) (47) 
Purchases, issuances, sales and settlements
Purchases—  663  663  
Issuances—  —  —  
Sales—  —  —  
Settlements—  —  —  
Transfers from Level 3—  —  —  
Transfers into Level 3—  —  —  
Balance, end of period$1,670  $3,312  $4,982  
During the six months ended June 30, 2020 and 2019, there were no transfers between fair value Levels 1, 2 or 3. There were no gains or losses included in earnings for the periods presented that are attributable to the change in realized gains (losses) relating to assets held at June 30, 2020 and 2019.
For the three months ended June 30, changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
 2020
 Other InvestmentsOther
Assets
Total
 (dollars in thousands)
Balance, beginning of period$1,670  $6,223  $7,893  
Total gains or losses
Included in earnings—  —  —  
Included in other comprehensive income—  —  —  
Purchases, issuances, sales and settlements
Purchases—  183  183  
Issuances—  —  —  
Sales—  —  —  
Settlements—  —  —  
Transfers from Level 3—  —  —  
Transfers into Level 3—  —  —  
Balance, end of period$1,670  $6,406  $8,076  
 
 2019
 Other InvestmentsOther
Assets
Total
 (dollars in thousands)
Balance, beginning of period$1,670  $3,200  $4,870  
Total gains or losses
Included in earnings—  —  —  
Included in other comprehensive income—  —  —  
Purchases, issuances, sales and settlements
Purchases—  112  112  
Issuances—  —  —  
Sales—  —  —  
Settlements—  —  —  
Transfers from Level 3—  —  —  
Transfers into Level 3—  —  —  
Balance, end of period$1,670  $3,312  $4,982  
During the three months ended June 30, 2020 and 2019, there were no transfers between fair value Levels 1, 2 or 3. There were no gains or losses included in earnings for the periods presented that are attributable to the change in realized gains (losses) relating to assets held at June 30, 2020 and 2019.
 
Schedule of Assets Measured on Non-Recurring Basis  
The tables below present the balances of assets measured at fair value on a nonrecurring basis at:
 June 30, 2020
 Level 1Level 2Level 3Total
 (dollars in thousands)
Impaired loans$—  $30,026  $19,102  $49,128  
Other real estate owned—  1,882  —  1,882  
Total Assets$—  $31,908  $19,102  $51,010  

 December 31, 2019
 Level 1Level 2Level 3Total
 (dollars in thousands)
Impaired loans$—  $12,267  $17,518  $29,785  
Other real estate owned—  2,608  —  2,608  
Total Assets$—  $14,875  $17,518  $32,393  
Losses Realized on Assets Measured on Non-Recurring Basis  
The following losses were realized on the assets measured on a nonrecurring basis:
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2020201920202019
 (dollars in thousands)
Impaired loans$191  $(497) $(6,822) $(1,460) 
Other real estate owned(26) (532) (76) (541) 
Total losses$165  $(1,029) $(6,898) $(2,001) 
Carrying Amounts and Fair Values of Financial Instruments  
The following table presents carrying amounts and fair values of First Commonwealth’s financial instruments:
 June 30, 2020
  Fair Value Measurements Using:
 Carrying
Amount
TotalLevel 1Level 2Level 3
 (dollars in thousands)
Financial assets
Cash and due from banks$108,970  $108,970  $108,970  $—  $—  
Interest-bearing deposits348,763  348,763  348,763  —  —  
Securities available for sale902,140  902,140  —  902,140  —  
Securities held to maturity297,986  307,874  —  307,874  —  
Other investments12,272  12,272  —  10,602  1,670  
Loans held for sale30,409  30,409  —  30,409  —  
Loans6,922,075  7,273,280  —  30,026  7,243,254  
Financial liabilities
Deposits7,782,201  7,788,041  —  7,788,041  —  
Short-term borrowings108,484  107,903  —  107,903  —  
Subordinated debt170,531  159,149  —  —  159,149  
Long-term debt56,590  58,476  —  58,476  —  
Capital lease obligation6,602  6,602  —  6,602  —  

 December 31, 2019
  Fair Value Measurements Using:
 Carrying
Amount
TotalLevel 1Level 2Level 3
 (dollars in thousands)
Financial assets
Cash and due from banks$102,346  $102,346  $102,346  $—  $—  
Interest-bearing deposits19,510  19,510  19,510  —  —  
Securities available for sale902,292  902,292  —  902,292  —  
Securities held to maturity337,123  338,718  —  338,718  —  
Other investments16,761  16,761  —  15,091  1,670  
Loans held for sale15,989  15,989  —  15,989  —  
Loans6,189,148  6,393,872  —  12,267  6,381,605  
Financial liabilities
Deposits6,677,615  6,677,595  —  6,677,595  —  
Short-term borrowings201,853  201,151  —  201,151  —  
Subordinated debt170,450  171,772  —  —  171,772  
Long-term debt56,917  58,051  —  58,051  —  
Capital lease obligation6,815  6,815  —  6,815  —