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Subordinated Debentures
 12 Months Ended
Dec. 31, 2011
Subordinated Debentures [Abstract]  
Subordinated Debentures

Note 19—Subordinated Debentures

Subordinated Debentures outstanding at December 31 are as follows:

 

            2011     2010  
     Due      Amount      Rate     Amount      Rate  
            (dollars in thousands)  

Owed to:

              

First Commonwealth Capital Trust I

      2029       $ 33,583         9.50 %    $ 33,583         9.50 % 

First Commonwealth Capital Trust II

      2034         30,929         LIBOR + 2.85        30,929         LIBOR + 2.85   

First Commonwealth Capital Trust III

      2034         41,238         LIBOR + 2.85        41,238         LIBOR + 2.85   
     

 

 

       

 

 

     

Total

       $ 105,750         $ 105,750      
     

 

 

       

 

 

     

First Commonwealth has established three trusts, First Commonwealth Capital Trust I, First Commonwealth Capital Trust II, and First Commonwealth Capital Trust III, of which 100% of the common equity is owned by First Commonwealth. The trusts were formed for the purpose of issuing company obligated mandatorily redeemable capital securities to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debt securities ("subordinated debentures") of First Commonwealth. The subordinated debentures held by each trust are the sole assets of the trust.

Interest on the debentures issued to First Commonwealth Capital Trust III is paid quarterly at a floating rate of LIBOR plus 2.85% which is reset quarterly. Subject to regulatory approval, First Commonwealth may redeem the debentures, in whole or in part, at its option on any interest payment date at a redemption price equal to 100% of the principal amount of the debentures. Deferred issuance costs of $630 thousand are being amortized on a straight-line basis over the term of the securities.

Interest on the debentures issued to First Commonwealth Capital Trust II is paid quarterly at a floating rate of LIBOR plus 2.85%, which is reset quarterly. First Commonwealth may redeem the debentures, in whole or in part, at its option at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $471 thousand are being amortized on a straight-line basis over the term of the securities.

Interest on debentures issued to First Commonwealth Capital Trust I is paid semiannually at a fixed rate of 9.50%. Subject to regulatory approvals, First Commonwealth may redeem the debentures, in whole or in part, at a redemption price equal to 103.8% of the principal amount of the debentures declining ratably on each September 1 to 100% on September 1, 2019, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $996 thousand are being amortized on a straight-line basis over the term of the securities.