Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022
Other Investments	$	1,170		Carrying Value	N/A	N/A
Nonperforming Loans	363		(a)	Gas Reserve Study	Discount rate	10.00%
					Gas per MMBTU	$3.00 - $3.00 (b)
					Oil per BBL/d	$80.00 - $80.00 (b)
Limited Partnership Investments	17,691			Par Value	N/A	N/A
December 31, 2021
Other Investments	1,170			Carrying Value	N/A	N/A
Nonperforming Loans	598		(a)	Gas Reserve study	Discount rate	10.00%
					Gas per MMBTU	$2.00 - $2.00 (b)
					Oil per BBL/d	$50.00 - $50.00 (b)
Limited Partnership Investments	14,981			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:

	2022
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	3,983	$	—	$	3,983
Mortgage-Backed Securities—Commercial	—		271,416		—		271,416
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		448,989		—		448,989
Other Government-Sponsored Enterprises	—		882		—		882
Obligations of States and Political Subdivisions	—		8,187		—		8,187
Corporate Securities	—		29,204		—		29,204
Total Securities Available for Sale	—		762,661		—		762,661
Other Investments	—		25,244		1,170		26,414
Loans Held for Sale	—		11,869		—		11,869
Other Assets (a)	—		50,738		17,691		68,429
Total Assets	$	—	$	850,512	$	18,861	$	869,373
Other Liabilities (a)	$	—	$	89,298	$	—	$	89,298
Total Liabilities	$	—	$	89,298	$	—	$	89,298

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

	2021
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—	$	5,662	$	—	$	5,662
Mortgage-Backed Securities—Commercial	—		362,290		—		362,290
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—		629,974		—		629,974
Other Government-Sponsored Enterprises	—		981		—		981
Obligations of States and Political Subdivisions	—		9,524		—		9,524
Corporate Securities	—		32,949		—		32,949
Total Securities Available for Sale	—		1,041,380		—		1,041,380
Other Investments	—		11,668		1,170		12,838
Loans Held for Sale	—		18,583		—		18,583
Other Assets (a)	—		26,805		14,981		41,786
Total Assets	$	—	$	1,098,436	$	16,151	$	1,114,587
Other Liabilities (a)	$	—	$	34,263	$	—	$	34,263
Total Liabilities	$	—	$	34,263	$	—	$	34,263

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, 2022: 

	Other Investments		Other Assets		Total
	(dollars in thousands)
Balance, beginning of year	$	1,170	$	14,981	$	16,151
Total gains or losses
Included in earnings	—		—		—
Included in other comprehensive income	—		—		—
Purchases, issuances, sales, and settlements
Purchases	—		2,991		2,991
Issuances	—		—		—
Sales	—		(281)		(281)
Settlements	—		—		—
Transfers from Level 3	—		—		—
Transfers into Level 3	—		—		—
Balance, end of year	$	1,170	$	17,691	$	18,861

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, 2022.

During the year ended December 31, 2022, 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, 2021:

	Other Investments		Other Assets		Total
	(dollars in thousands)
Balance, beginning of year	$	1,670	$	6,619	$	8,289
Total gains or losses
Included in earnings	—		—		—
Included in other comprehensive income	—		—		—
Purchases, issuances, sales, and settlements
Purchases	—		8,511		8,511
Issuances	—		—		—
Sales	—		—		—
Settlements	(500)		(149)		(649)
Transfers from Level 3	—		—		—
Transfers into Level 3	—		—		—
Balance, end of year	$	1,170	$	14,981	$	16,151

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:

	2022
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Nonperforming loans	$	—	$	23,140	$	11,636	$	34,776	$	(2,127)
Other real estate owned	—		553		—		553		—
Total Assets	$	—	$	23,693	$	11,636	$	35,329	$	(2,127)

	2021
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(dollars in thousands)
Nonperforming loans	$	—	$	42,538	$	12,247	$	54,785	$	352
Other real estate owned	—		729		—		729		—
Total Assets	$	—	$	43,267	$	12,247	$	55,514	$	352

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:

	2022
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	124,254	$	124,254	$	124,254	$	—	$	—
Interest-bearing deposits	29,990		29,990		29,990		—		—
Securities available for sale	762,661		762,661		—		762,661		—
Securities held to maturity	461,162		386,205		—		386,205		—
Other investments	26,414		26,414		—		25,244		1,170
Loans held for sale	11,869		11,869		—		11,869		—
Loans and leases	7,642,143		7,639,721		—		23,140		7,616,581
Financial liabilities
Deposits	8,005,469		7,992,012		—		7,992,012		—
Short-term borrowings	372,694		363,135		—		363,135		—
Long-term debt	4,862		4,781		—		4,781		—
Subordinated debt	170,937		156,621		—		—		156,621
Capital lease obligation	5,425		5,425		—		5,425		—

	2021
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	84,738	$	84,738	$	84,738	$	—	$	—
Interest-bearing deposits	310,634		310,634		310,634		—		—
Securities available for sale	1,041,380		1,041,380		—		1,041,380		—
Securities held to maturity	541,311		536,651		—		536,651		—
Other investments	12,838		12,838		—		11,668		1,170
Loans held for sale	18,583		18,583		—		18,583		—
Loans and leases	6,839,230		7,169,768		—		42,538		7,127,230
Financial liabilities
Deposits	7,982,498		7,980,101		—		7,980,101		—
Short-term borrowings	138,315		136,473		—		136,473		—
Long-term debt	5,573		6,065		—		6,065		—
Subordinated debt	170,775		175,040		—		—		175,040
Capital lease obligation	5,921		5,921		—		5,921		—