XML 31 R16.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities Securities Available for Sale Below is an analysis of the amortized cost and fair values of securities available for sale at December 31:
| 2015 |  | 2014
| 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 | $ | 20,034 |  |  | $ | 2,071 |  |  | $ | (13 | ) |  | $ | 22,092 |  |  | $ | 23,344 |  |  | $ | 2,595 |  |  | $ | (3 | ) |  | $ | 25,936 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 778,476 |  |  | 7,983 |  |  | (8,882 | ) |  | 777,577 |  |  | 947,635 |  |  | 13,076 |  |  | (9,830 | ) |  | 950,881 |
Mortgage-Backed Securities – Commercial | 28 |  |  | — |  |  | — |  |  | 28 |  |  | 72 |  |  | 2 |  |  | — |  |  | 74 |
Other Government-Sponsored Enterprises | 19,201 |  |  | 2 |  |  | (85 | ) |  | 19,118 |  |  | 269,181 |  |  | 4 |  |  | (1,308 | ) |  | 267,877 |
Obligations of States and Political Subdivisions | 27,066 |  |  | 532 |  |  | — |  |  | 27,598 |  |  | 27,058 |  |  | 362 |  |  | (43 | ) |  | 27,377 |
Corporate Securities | 1,897 |  |  | 422 |  |  | — |  |  | 2,319 |  |  | 6,682 |  |  | 573 |  |  | — |  |  | 7,255 |
Pooled Trust Preferred Collateralized Debt Obligations | 42,239 |  |  | 916 |  |  | (7,497 | ) |  | 35,658 |  |  | 41,926 |  |  | 309 |  |  | (13,236 | ) |  | 28,999 |
Total Debt Securities | 888,941 |  |  | 11,926 |  |  | (16,477 | ) |  | 884,390 |  |  | 1,315,898 |  |  | 16,921 |  |  | (24,420 | ) |  | 1,308,399 |
Equities | 2,170 |  |  | — |  |  | — |  |  | 2,170 |  |  | 1,420 |  |  | — |  |  | — |  |  | 1,420 |
Total Securities Available for Sale | $ | 891,111 |  |  | $ | 11,926 |  |  | $ | (16,477 | ) |  | $ | 886,560 |  |  | $ | 1,317,318 |  |  | $ | 16,921 |  |  | $ | (24,420 | ) |  | $ | 1,309,819 |
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 30 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. In 2015, a $0.3 million loss was recognized on the sale of approximately $75.0 million of low-yielding U.S. government agency securities. Proceeds from the sale of these securities were reinvested into higher yielding mortgage-backed securities. During 2014, a gain of $0.5 million was recognized as the result of a recovery on a trust preferred security for which a $1.3 million loss was recognized in 2013 due to the early redemption of a pooled trust preferred security with a book value of $6.6 million. Senior note holders elected to liquidate all assets of the trust, resulting in losses for the mezzanine notes owned by First Commonwealth. The gain recognized in 2014 was a result of additional proceeds distributed as part of the final liquidation of the trust. The amortized cost and estimated fair value of debt securities available for sale at December 31, 2015, by contractual maturity, are shown below:
| Amortized Cost |  | Estimated Fair Value
| (dollars in thousands)
Due within 1 year | $ | 2,601 |  |  | $ | 2,595 |
Due after 1 but within 5 years | 16,600 |  |  | 16,523 |
Due after 5 but within 10 years | 27,066 |  |  | 27,598 |
Due after 10 years | 44,136 |  |  | 37,977 |
| 90,403 |  |  | 84,693 |
Mortgage-Backed Securities (a) | 798,538 |  |  | 799,697 |
Total Debt Securities | $ | 888,941 |  |  | $ | 884,390 |
(a) | Mortgage Backed Securities include an amortized cost of $20.0 million and a fair value of $22.1 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $778.5 million and a fair value of $777.6 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, maturities and other-than-temporary impairment charges related to securities available for sale were as follows for the years ended December 31:
| 2015 |  | 2014 |  | 2013
| (dollars in thousands)
Proceeds from sales | $ | 88,054 |  |  | $ | 132,868 |  |  | $ | 671 |
Gross (losses) gains realized: |  |  |  |  |
Sales Transactions: |  |  |  |  |
Gross gains | $ | — |  |  | $ | 291 |  |  | $ | 233 |
Gross losses | (284 | ) |  | (243 | ) |  | — |
| (284 | ) |  | 48 |  |  | 233 |
Maturities and impairment |  |  |  |  |
Gross gains | 131 |  |  | 502 |  |  | 4 |
Gross losses | — |  |  | — |  |  | (1,395 | )
Other-than-temporary impairment | — |  |  | — |  |  | — |
| 131 |  |  | 502 |  |  | (1,391 | )
Net gains and impairment | $ | (153 | ) |  | $ | 550 |  |  | $ | (1,158 | )
Securities available for sale with an approximate fair value of $416.1 million and $563.2 million were pledged as of December 31, 2015 and 2014, 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 December 31, 2015. There were no held to maturity securities at December 31, 2014.
| December 31, 2015
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | 4,775 |  |  | $ | — |  |  | $ | (7 | ) |  | $ | 4,768 |
Mortgage-Backed Securities – Commercial | 16,843 |  |  | — |  |  | (247 | ) |  | 16,596 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 315,609 |  |  | 30 |  |  | (1,824 | ) |  | 313,815 |
Mortgage-Backed Securities – Commercial | 15,187 |  |  | — |  |  | (178 | ) |  | 15,009 |
Obligations of States and Political Subdivisions | 31,910 |  |  | 301 |  |  | (58 | ) |  | 32,153 |
Total Securities Held to Maturity | $ | 384,324 |  |  | $ | 331 |  |  | $ | (2,314 | ) |  | $ | 382,341 |
The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2015, 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 | $ | — |  |  | $ | — |
Due after 1 but within 5 years | 108 |  |  | 108 |
Due after 5 but within 10 years | 27,224 |  |  | 27,487 |
Due after 10 years | 4,578 |  |  | 4,558 |
| 31,910 |  |  | 32,153 |
Mortgage-Backed Securities (a) | 352,414 |  |  | 350,188 |
Total Debt Securities | $ | 384,324 |  |  | $ | 382,341 |
(a) | Mortgage Backed Securities include an amortized cost of $21.6 million and a fair value of $21.4 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $330.8 million and a fair value of $328.8 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 $45.7 million were pledged as of December 31, 2015 to secure public deposits for other purposes required or permitted by law.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration