Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Quantitative Inputs and Assumptions Used in Level 3 Fair Value Measurements

In accordance with ASU 2011-4, the following table provides information related to quantitative inputs and assumptions used in Level 3 fair value measurements.

	Fair Value (dollars in thousands)			Valuation Technique	Unobservable Inputs	Range /  (weighted average)
December 31, 2020
Other Investments	$	1,670		Carrying Value	N/A	N/A
Nonperforming Loans	798		(a)	Gas Reserve study	Discount rate	10.00%
					Gas per MMBTU	$1.46 - $1.48 (b)
					Oil per BBL/d	$36 - $36 (b)
Limited Partnership Investments	6,619			Par Value	N/A	N/A
December 31, 2019
Other Investments	1,670			Carrying Value	N/A	N/A
Nonperforming Loans	884		(a)	Gas Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.61 - $3.49 (b)
					Oil per BBL/d	$47.09 - $53.14 (b)
	2,239		(a)	Discounted Cash Flow	Discount Rate	3.84% - 9.50%
Limited Partnership Investments	5,795			Par Value	N/A	N/A

(a)the remainder of nonperforming 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—one 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 at December 31:

	2020
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	7,230	$	—	$	7,230
Mortgage-Backed Securities—Commercial	—		191,180		—		191,180
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		496,033		—		496,033
Other Government-Sponsored Enterprises	—		100,998		—		100,998
Obligations of States and Political Subdivisions	—		11,397		—		11,397
Corporate Securities	—		24,385		—		24,385
Total Securities Available for Sale	—		831,223		—		831,223
Other Investments	—		10,557		1,670		12,227
Loans Held for Sale	—		33,436		—		33,436
Premises and Equipment	—		442		—		442
Other Assets (a)	—		54,362		6,619		60,981
Total Assets	$	—	$	930,020	$	8,289	$	938,309
Other Liabilities (a)	$	—	$	61,308	$	—	$	61,308
Total Liabilities	$	—	$	61,308	$	—	$	61,308

(a)Hedging and non-hedging interest rate derivatives and limited partnership investments

	2019
	Level 1		Level 2		Level 3		Total
	(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

Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2020:

	Other Investments		Other Assets		Total
	(dollars in thousands)
Balance, beginning of year	$	1,670	$	5,795	$	7,465
Total gains or losses
Included in earnings	—		—		—
Included in other comprehensive income	—		—		—
Purchases, issuances, sales, and settlements
Purchases	—		824		824
Issuances	—		—		—
Sales	—		—		—
Settlements	—		—		—
Transfers from Level 3	—		—		—
Transfers into Level 3	—		—		—
Balance, end of year	$	1,670	$	6,619	$	8,289

There are no gains or losses included in earnings for the period that are attributable to the change in realized gains (losses) relating to assets held at December 31, 2020.

During the year ended December 31, 2020, there were no transfers between fair value Levels 1, 2 or 3.

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2019:

	Other Investments		Other Assets		Total
	(dollars in thousands)
Balance, beginning of year	$	1,670	$	2,696	$	4,366
Total gains or losses
Included in earnings	—		198		198
Included in other comprehensive income	—		—		—
Purchases, issuances, sales, and settlements
Purchases	—		2,956		2,956
Issuances	—		—		—
Sales	—		—		—
Settlements	—		(55)		(55)
Transfers from Level 3	—		—		—
Transfers into Level 3	—		—		—
Balance, end of year	$	1,670	$	5,795	$	7,465

Schedule of Assets Measured on Nonrecurring Basis

The tables below present the balances of assets measured at fair value on a nonrecurring basis at December 31 and total gains and losses realized on these assets during the year ended December 31:

	2020
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Nonperforming loans	$	—	$	35,543	$	13,604	$	49,147	$	(7,905)
Other real estate owned	—		1,319		—		1,319		(30)
Total Assets	$	—	$	36,862	$	13,604	$	50,466	$	(7,935)

	2019
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Nonperforming loans	$	—	$	12,267	$	17,518	$	29,785	$	(2,667)
Other real estate owned	—		2,608		—		2,608		(196)
Total Assets	$	—	$	14,875	$	17,518	$	32,393	$	(2,863)

Carrying Amounts and Fair Values of Financial Instruments

The following table presents carrying amounts and estimated fair values of First Commonwealth’s financial instruments at December 31:

	2020
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	100,009	$	100,009	$	100,009	$	—	$	—
Interest-bearing deposits	256,572		256,572		256,572		—		—
Securities available for sale	831,223		831,223		—		831,223		—
Securities held to maturity	361,844		369,851		—		369,851		—
Other investments	12,227		12,227		—		10,557		1,670
Loans held for sale	33,436		33,436		—		33,436		—
Loans	6,761,183		7,202,763		—		35,543		7,167,220
Financial liabilities
Deposits	7,438,666		7,440,906		—		7,440,906		—
Short-term borrowings	117,373		117,037		—		117,037		—
Long-term debt	56,258		57,881		—		57,881		—
Subordinated debt	170,612		165,665		—		—		165,665
Capital lease obligation	6,385		6,385		—		6,385		—

	2019
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	102,346	$	102,346	$	102,346	$	—	$	—
Interest-bearing deposits	19,510		19,510		19,510		—		—
Securities available for sale	902,292		902,292		—		902,292		—
Securities held to maturity	337,123		338,718		—		338,718		—
Other investments	16,761		16,761		—		15,091		1,670
Loans held for sale	15,989		15,989		—		15,989		—
Loans	6,189,148		6,393,872		—		12,267		6,381,605
Financial liabilities
Deposits	6,677,615		6,677,595		—		6,677,595		—
Short-term borrowings	201,853		201,151		—		201,151		—
Long-term debt	56,917		58,051		—		58,051		—
Subordinated debt	170,450		171,772		—		—		171,772
Capital lease obligation	6,815		6,815		—		6,815		—