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Investment Securities
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
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:
 June 30, 2023December 31, 2022
 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$3,851 $23 $(167)$3,707 $4,127 $37 $(181)$3,983 
Mortgage-Backed Securities – Commercial337,197 — (57,545)279,652 324,306 — (52,890)271,416 
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential496,213 34 (77,025)419,222 527,777 59 (78,847)448,989 
Other Government-Sponsored Enterprises1,000 — (117)883 1,000 — (118)882 
Obligations of States and Political Subdivisions9,231 — (1,217)8,014 9,482 — (1,295)8,187 
Corporate Securities30,417 — (3,786)26,631 32,010 179 (2,985)29,204 
Total Securities Available for Sale$877,909 $57 $(139,857)$738,109 $898,702 $275 $(136,316)$762,661 

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 40 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 June 30, 2023, by contractual maturity, are shown below.
Amortized
Cost		Estimated
Fair Value
 (dollars in thousands)
Due within 1 year$6,253 $6,179 
Due after 1 but within 5 years2,386 2,233 
Due after 5 but within 10 years32,009 27,116 
Due after 10 years— — 
40,648 35,528 
Mortgage-Backed Securities (a)837,261 702,581 
Total Debt Securities$877,909 $738,109 
 
(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 $341.0 million and a fair value of $283.4 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $496.2 million and a fair value of $419.2 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 and maturities related to securities held to maturity and securities available for sale were as follows for the six months ended June 30:
20232022
 (dollars in thousands)
Proceeds from sales$30,686 $— 
Gross gains (losses) realized:
Sales transactions:
Gross gains$— $— 
Gross losses— — 
— — 
Maturities
Gross gains— 2 
Gross losses— — 
— 2 
Net gains $— $2 
Proceeds from sales included in above table are a result of the sale of investments acquired as part of the Centric acquisition. The securities were recorded at fair value at the time of acquisition and subsequently sold at the same value.
Securities available for sale with an estimated fair value of $406.6 million and $626.7 million were pledged as of June 30, 2023 and December 31, 2022, 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:
 June 30, 2023December 31, 2022
 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$1,819 $— $(201)$1,618 $2,008 $— $(224)$1,784 
Mortgage-Backed Securities- Commercial72,274 — (15,641)56,633 75,229 — (14,196)61,033 
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential312,326 — (52,201)260,125 329,267 — (53,002)276,265 
Mortgage-Backed Securities – Commercial3,497 — (80)3,417 4,794 — (129)4,665 
Other Government-Sponsored Enterprises22,381 — (4,362)18,019 22,221 — (4,501)17,720 
Obligations of States and Political Subdivisions26,625 — (2,772)23,853 26,643 — (2,865)23,778 
Debt Securities Issued by Foreign Governments1,000 — (50)950 1,000 — (40)960 
Total Securities Held to Maturity$439,922 $— $(75,307)$364,615 $461,162 $— $(74,957)$386,205 
The amortized cost and estimated fair value of debt securities held to maturity at June 30, 2023, 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$1,145 $1,140 
Due after 1 but within 5 years11,814 11,181 
Due after 5 but within 10 years36,484 30,071 
Due after 10 years563 430 
50,006 42,822 
Mortgage-Backed Securities (a)389,916 321,793 
Total Debt Securities$439,922 $364,615 
(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 $74.1 million and a fair value of $58.3 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $315.8 million and a fair value of $263.5 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 $118.9 million and $368.8 million were pledged as of June 30, 2023 and December 31, 2022, respectively, to secure public deposits and for other purposes required or permitted by law.
Other Investments
As a member of the Federal Home Loan Bank ("FHLB"), First Commonwealth is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The level of stock required to be held is dependent on the amount of First Commonwealth's mortgage-related assets and outstanding borrowings with the FHLB. This stock is restricted in that it can
only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. As of June 30, 2023 and December 31, 2022, our FHLB stock totaled $40.2 million and $25.2 million, respectively, and is included in “Other investments” on the unaudited Consolidated Statements of Financial Condition.
FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. First Commonwealth evaluates impairment quarterly and has concluded that the par value of its investment in FHLB stock will be recovered. Accordingly, no impairment charge was recorded on these securities during the three and six months ended June 30, 2023.
As of both June 30, 2023 and December 31, 2022, "Other investments" also includes $6.2 million and $1.2 million, respectively, in equity securities. These securities do not have a readily determinable fair value and are carried at cost. During the six-months ended June 30, 2023 and 2022, there were no gains or losses recognized through earnings on equity securities. On a quarterly basis, management evaluates equity securities by reviewing the severity and duration of decline in estimated fair value, research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, regulatory filings, impact of interest rate changes and other relevant information.
Impairment of Investment Securities
We review our investment portfolio on a quarterly basis for indications of impairment. For available for sale securities, the review includes analyzing the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and whether we are more likely than not to sell the security. We evaluate whether we are more likely than not to sell debt securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy, tax position and interest rate risk position. Held-to-maturity securities are evaluated for impairment on a quarterly basis using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist an allowance for credit loss is recorded and included in earnings as a component of credit loss expense.
First Commonwealth utilizes the specific identification method to determine the net gain or loss on debt securities and the average cost method to determine the net gain or loss on equity securities.
The following table presents the gross unrealized losses and estimated fair values at June 30, 2023 for both available for sale and held to maturity securities by investment category and time frame for which securities have been in a continuous unrealized loss position:
 
 Less Than 12 Months12 Months or MoreTotal
 Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses
 (dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential$315 $(1)$3,483 $(367)$3,798 $(368)
Mortgage-Backed Securities – Commercial24,199 (283)312,085 (72,903)336,284 (73,186)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential11,080 (546)666,343 (128,680)677,423 (129,226)
Mortgage-Backed Securities – Commercial— — 3,418 (80)3,418 (80)
Other Government-Sponsored Enterprises— — 18,902 (4,479)18,902 (4,479)
Obligations of States and Political Subdivisions9,018 (235)22,403 (3,754)31,421 (3,989)
Debt Securities Issued by Foreign Governments198 (3)753 (47)951 (50)
Corporate Securities11,138 (278)15,492 (3,508)26,630 (3,786)
Total Securities$55,948 $(1,346)$1,042,879 $(213,818)$1,098,827 $(215,164)
    
At June 30, 2023, fixed income securities issued by the U.S. Government and U.S. Government-sponsored enterprises comprised 96% of total unrealized losses. All unrealized losses are the result of changes in market interest rates. At June 30, 2023, there are 219 debt securities in an unrealized loss position.
The following table presents the gross unrealized losses and estimated fair values at December 31, 2022 by investment category and the time frame for which securities have been in a continuous unrealized loss position:
 Less Than 12 Months12 Months or MoreTotal
 Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses
 (dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential$3,734 $(405)$— $— $3,734 $(405)
Mortgage-Backed Securities - Commercial92,208 (12,364)240,241 (54,722)332,449 (67,086)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential239,760 (21,543)482,195 (110,306)721,955 (131,849)
Mortgage-Backed Securities – Commercial4,666 (129)— — 4,666 (129)
Other Government-Sponsored Enterprises— — 18,603 (4,619)18,603 (4,619)
Obligation of States and Political Subdivisions21,234 (1,979)9,230 (2,181)30,464 (4,160)
Debt Securities Issued by Foreign Governments587 (13)373 (27)960 (40)
Corporate Securities14,406 (590)12,632 (2,395)27,038 (2,985)
Total Securities$376,595 $(37,023)$763,274 $(174,250)$1,139,869 $(211,273)
As of June 30, 2023, our corporate securities had an amortized cost and an estimated fair value of $30.4 million and $26.6 million, respectively. As of December 31, 2022, our corporate securities had an amortized cost and estimated fair value of $32.0 million and $29.2 million, respectively. Corporate securities are comprised of debt issued by large regional banks. There were eight and six corporate securities, respectively, in an unrealized loss position as of June 30, 2023 and December 31, 2022. When unrealized losses exist, management reviews each of the issuer’s asset quality, earnings trends and capital position to determine whether the unrealized loss position is a result of credit losses. All interest payments on the corporate securities are being made as contractually required.
There was no expected credit related impairment recognized on investment securities during the six months ended June 30, 2023 and 2022.
  
Credit Loss, Financial Instrument no no