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Investment Securities | 12 Months Ended
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Dec. 31, 2018
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:
| 2018 |  | 2017
| 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 | $ | 9,011 |  |  | $ | 479 |  |  | $ | (84 | ) |  | $ | 9,406 |  |  | $ | 10,556 |  |  | $ | 789 |  |  | $ | (7 | ) |  | $ | 11,338 |
Mortgage-Backed Securities – Commercial | 169,633 |  |  | 214 |  |  | (2,103 | ) |  | 167,744 |  |  | 24,611 |  |  | — |  |  | (462 | ) |  | 24,149 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 686,906 |  |  | 1,846 |  |  | (15,391 | ) |  | 673,361 |  |  | 632,422 |  |  | 2,622 |  |  | (9,489 | ) |  | 625,555 |
Other Government-Sponsored Enterprises | 10,000 |  |  | 12 |  |  | — |  |  | 10,012 |  |  | 1,098 |  |  | — |  |  | (1 | ) |  | 1,097 |
Obligations of States and Political Subdivisions | 27,592 |  |  | 126 |  |  | (6 | ) |  | 27,712 |  |  | 27,083 |  |  | 327 |  |  | — |  |  | 27,410 |
Corporate Securities | 20,912 |  |  | 321 |  |  | (221 | ) |  | 21,012 |  |  | 15,907 |  |  | 590 |  |  | (4 | ) |  | 16,493 |
Pooled Trust Preferred Collateralized Debt Obligations | — |  |  | — |  |  | — |  |  | — |  |  | 27,499 |  |  | 526 |  |  | (4,379 | ) |  | 23,646 |
Total Debt Securities | 924,054 |  |  | 2,998 |  |  | (17,805 | ) |  | 909,247 |  |  | 739,176 |  |  | 4,854 |  |  | (14,342 | ) |  | 729,688 |
Equities | — |  |  | — |  |  | — |  |  | — |  |  | 1,670 |  |  | — |  |  | — |  |  | 1,670 |
Total Securities Available for Sale | $ | 924,054 |  |  | $ | 2,998 |  |  | $ | (17,805 | ) |  | $ | 909,247 |  |  | $ | 740,846 |  |  | $ | 4,854 |  |  | $ | (14,342 | ) |  | $ | 731,358 |
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. The amortized cost and estimated fair value of debt securities available for sale at December 31, 2018, by contractual maturity, are shown below:
| Amortized Cost |  | Estimated Fair Value
| (dollars in thousands)
Due within 1 year | $ | 4,000 |  |  | $ | 3,993 |
Due after 1 but within 5 years | 17,256 |  |  | 17,045 |
Due after 5 but within 10 years | 35,319 |  |  | 35,448 |
Due after 10 years | 1,929 |  |  | 2,250 |
| 58,504 |  |  | 58,736 |
Mortgage-Backed Securities (a) | 865,550 |  |  | 850,511 |
Total Debt Securities | $ | 924,054 |  |  | $ | 909,247 |
(a) | Mortgage Backed Securities include an amortized cost of $178.6 million and a fair value of $177.2 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $686.9 million and a fair value of $673.4 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:
| 2018 |  | 2017 |  | 2016
| (dollars in thousands)
Proceeds from sales | $ | 15,939 |  |  | $ | 143,660 |  |  | $ | 55,744 |
Gross (losses) gains realized: |  |  |  |  |
Sales Transactions: |  |  |  |  |
Gross gains | $ | 4,719 |  |  | $ | 359 |  |  | $ | 305 |
Gross losses | — |  |  | (316 | ) |  | (277 | )
| 4,719 |  |  | 43 |  |  | 28 |
Maturities and impairment |  |  |  |  |
Gross gains | 3,383 |  |  | 5,057 |  |  | 589 |
Gross losses | — |  |  | (60 | ) |  | — |
Other-than-temporary impairment | — |  |  | — |  |  | — |
| 3,383 |  |  | 4,997 |  |  | 589 |
Net gains and impairment | $ | 8,102 |  |  | $ | 5,040 |  |  | $ | 617 |
Gross gains from sales transactions of $4.7 million were recognized in 2018 as a result of the sale of the remaining pooled trust preferred security portfolio. Gross gains from maturities and impairment of $3.4 million were recognized in 2018 as a result of successful auction calls on PreSTL XIV and PreSTL IX, two of our pooled trust preferred securities. During 2017, proceeds from sales of investments include the liquidation of the DCB investment portfolio as well as the sale of small positions in CMO and MBS investments. Gross gains from maturities and impairments resulted from the early redemption of two pooled trust preferred securities. The successful auction call of PreSTL XIII provided a gain of $4.3 million and the liquidation of PreSTL VII by senior note holders resulted in a gain of $0.7 million. Proceeds from the sales of investments in 2016 were related to sales of small positions in CMO's and MBS's. During 2016, a gain of $0.6 million was recognized as a result of the early redemption of a pooled trust preferred security. This security was redeemed due to an election by the senior note holders to liquidate the trust. Securities available for sale with an approximate fair value of $636.3 million and $569.0 million were pledged as of December 31, 2018 and 2017, 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:.
| 2018 |  | 2017
| 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 | $ | 3,635 |  |  | $ | — |  |  | $ | (97 | ) |  | $ | 3,538 |  |  | $ | 3,925 |  |  | $ | — |  |  | $ | (14 | ) |  | $ | 3,911 |
Mortgage-Backed Securities – Commercial | 55,221 |  |  | — |  |  | (2,327 | ) |  | 52,894 |  |  | 58,249 |  |  | — |  |  | (1,394 | ) |  | 56,855 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 279,109 |  |  | 212 |  |  | (7,254 | ) |  | 272,067 |  |  | 305,126 |  |  | 10 |  |  | (2,552 | ) |  | 302,584 |
Mortgage-Backed Securities – Commercial | 13,159 |  |  | — |  |  | (258 | ) |  | 12,901 |  |  | 14,056 |  |  | — |  |  | (71 | ) |  | 13,985 |
Obligations of States and Political Subdivisions | 42,331 |  |  | 175 |  |  | (313 | ) |  | 42,193 |  |  | 40,540 |  |  | 335 |  |  | (161 | ) |  | 40,714 |
Debt Securities Issued by Foreign Governments | 400 |  |  | — |  |  | — |  |  | 400 |  |  | 200 |  |  | — |  |  | — |  |  | 200 |
Total Securities Held to Maturity | $ | 393,855 |  |  | $ | 387 |  |  | $ | (10,249 | ) |  | $ | 383,993 |  |  | $ | 422,096 |  |  | $ | 345 |  |  | $ | (4,192 | ) |  | $ | 418,249 |
The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2018, 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 | $ | 520 |  |  | $ | 519 |
Due after 1 but within 5 years | 7,218 |  |  | 7,210 |
Due after 5 but within 10 years | 34,993 |  |  | 34,864 |
Due after 10 years | — |  |  | — |
| 42,731 |  |  | 42,593 |
Mortgage-Backed Securities (a) | 351,124 |  |  | 341,400 |
Total Debt Securities | $ | 393,855 |  |  | $ | 383,993 |
(a) | Mortgage Backed Securities include an amortized cost of $58.9 million and a fair value of $56.4 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $292.3 million and a fair value of $285.0 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 $250.3 million and $338.3 million were pledged as of December 31, 2018 and 2017, respectively, to secure public deposits for other purposes required or permitted by law.

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