Fair Values of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Inputs, Assets, Quantitative Information

In accordance with ASU No. 2011-04, 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)
March 31, 2024
Other Investments	$	6,182	Carrying Value	N/A	N/A
Limited Partnership Investments	28,445		Par Value	N/A	N/A
December 31, 2023
Other Investments	$	6,182	Carrying Value	N/A	N/A
Limited Partnership Investments	27,137		Par Value	N/A	N/A

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:

	March 31, 2024
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities - Residential	$	—	$	3,281	$	—	$	3,281
Mortgage-Backed Securities - Commercial	—		474,201		—		474,201
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities - Residential	—		474,204		—		474,204
Other Government-Sponsored Enterprises	—		913		—		913
Obligations of States and Political Subdivisions	—		8,175		—		8,175
Corporate Securities	—		62,937		—		62,937
Total Securities Available for Sale	—		1,023,711		—		1,023,711
Other Investments	—		19,215		6,182		25,397
Loans Held for Sale	—		31,895		—		31,895
Other Assets(a)	—		49,089		28,445		77,534
Total Assets	$	—	$	1,123,910	$	34,627	$	1,158,537
Other Liabilities(a)	$	—	$	73,790	$	—	$	73,790
Total Liabilities	$	—	$	73,790	$	—	$	73,790

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

	December 31, 2023
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities - Residential	$	—	$	3,465	$	—	$	3,465
Mortgage-Backed Securities - Commercial	—		465,393		—		465,393
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities - Residential	—		494,599		—		494,599
Other Government-Sponsored Enterprises	—		915		—		915
Obligations of States and Political Subdivisions	—		8,202		—		8,202
Corporate Securities	—		48,412		—		48,412
Total Securities Available for Sale	—		1,020,986		—		1,020,986
Other Investments	—		44,689		6,182		50,871
Loans Held for Sale	—		29,820		—		29,820
Other Assets(a)	—		32,668		27,137		59,805
Total Assets	$	—	$	1,128,163	$	33,319	$	1,161,482
Other Liabilities(a)	$	—	$	58,167	$	—	$	58,167
Total Liabilities	$	—	$	58,167	$	—	$	58,167

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

^[1],[2]

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 the dates shown below:

	March 31, 2024
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Nonperforming loans	$	—	$	27,025	$	10,047	$	37,072
Other real estate owned	—		562		—		562
Total Assets	$	—	$	27,587	$	10,047	$	37,634

	December 31, 2023
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Nonperforming loans	$	—	$	25,215	$	9,708	$	34,923
Other real estate owned	—		609		—		609
Total Assets	$	—	$	25,824	$	9,708	$	35,532

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

For the three months ended March 31, changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	2024
	Other Investments		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	6,182	$	27,137	$	33,319
Total gains or losses
Included in earnings	—		(6)		(6)
Included in other comprehensive income	—		—		—
Purchases, issuances, sales and settlements
Purchases	—		1,509		1,509
Issuances	—		—		—
Sales	—		—		—
Settlements	—		(195)		(195)
Transfers from Level 3	—		—		—
Transfers into Level 3	—		—		—
Balance, end of period	$	6,182	$	28,445	$	34,627

 

	2023
	Other Investments		Other Assets		Total
	(dollars in thousands)
Balance, beginning of period	$	1,170	$	17,691	$	18,861
Total gains or losses
Included in earnings	—		—		—
Included in other comprehensive income	—		—		—
Purchases, issuances, sales and settlements
Purchases	5,000		6,882		11,882
Issuances	—		—		—
Sales	—		—		—
Settlements	—		(151)		(151)
Transfers from Level 3	—		—		—
Transfers into Level 3	—		—		—
Balance, end of period	$	6,170	$	24,422	$	30,592

Losses Realized on Assets Measured on Non-Recurring Basis

The following (losses) gains were realized on the assets measured on a nonrecurring basis:

	For the Three Months Ended March 31,
	2024		2023
	(dollars in thousands)
Nonperforming loans	$	(2,393)	$	230
Other real estate owned	(50)		—
Total losses	$	(2,443)	$	230

Carrying Amounts and Fair Values of Financial Instruments

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

	March 31, 2024
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	77,179	$	77,179	$	77,179	$	—	$	—
Interest-bearing deposits	233,188		233,188		233,188		—		—
Securities available for sale	1,023,711		1,023,711		—		1,023,711		—
Securities held to maturity	464,708		393,749		—		393,749		—
Other investments	25,397		25,397		—		19,215		6,182
Loans held for sale	31,895		31,895		—		31,895		—
Loans and leases	8,999,870		8,907,184		—		27,025		8,880,159
Financial liabilities
Deposits	9,446,403		9,440,446		—		9,440,446		—
Short-term borrowings	546,541		540,267		—		540,267		—
Subordinated debt	177,803		156,341		—		—		156,341
Long-term debt	3,932		3,832		—		3,832		—
Capital lease obligation	4,755		4,755		—		4,755		—

	December 31, 2023
			Fair Value Measurements Using:
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	125,436	$	125,436	$	125,436	$	—	$	—
Interest-bearing deposits	21,557		21,557		21,557		—		—
Securities available for sale	1,020,986		1,020,986		—		1,020,986		—
Securities held to maturity	419,009		350,595		—		350,595		—
Other investments	50,871		50,871		—		44,689		6,182
Loans held for sale	29,820		29,820		—		29,820		—
Loans and leases	8,968,761		8,860,736		—		25,215		8,835,521
Financial liabilities
Deposits	9,192,309		9,187,655		—		9,187,655		—
Short-term borrowings	597,835		594,670		—		594,670		—
Subordinated debt	177,741		151,525		—		—		151,525
Long-term debt	4,122		4,041		—		4,041		—
Capital lease obligation	4,894		4,894		—		4,894		—

[1] Hedging and non-hedging interest rate derivatives and limited partnership investments

[2] Hedging and non-hedging interest rate derivatives and limited partnership investment