XML 68 R53.htm IDEA: XBRL DOCUMENT v3.10.0.1

Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Quantitative Inputs and Assumptions Used in Level 3 Fair Value Measurements

In accordance with ASU 2011-4, 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)
Other Investments	1,670			Carrying Value		N/A		N/A
Impaired Loans	1,104		(a)	Gas Reserve study		Discount rate		10.00%
						Gas per MMBTU		$2.81 - $3.35 (b)
						Oil per BBL/d		$51.59 - $59.55 (b)
	3,249		(a)	Discounted Cash Flow		Discount Rate		1.9% - 9.5%
Limited Partnership Investments	2,696			Par Value		N/A		N/A

(a) the remainder of impaired loans valued using Level 3 inputs are not included in this disclosure as the values of those loans are based on bankruptcy agreement documentation.

(b) unobservable inputs are defined as follows: MMBTU—one million British thermal units; BBL/d—barrels per day

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 at December 31:

	2018
	Level 1				Level 2				Level 3				Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—			$	9,406			$	—			$	9,406
Mortgage-Backed Securities—Commercial	—				167,744				—				167,744
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—				673,361				—				673,361
Other Government-Sponsored Enterprises	—				10,012				—				10,012
Obligations of States and Political Subdivisions	—				27,712				—				27,712
Corporate Securities	—				21,012				—				21,012
Total Securities Available for Sale	—				909,247				—				909,247
Other Investments	—				30,456				1,670				32,126
Loans Held for Sale	—				11,881				—				11,881
Other Assets (a)	—				1,769				2,696				4,465
Total Assets	$	—			$	953,353			$	4,366			$	957,719
Other Liabilities (a)	$	—			$	2,081			$	—			$	2,081
Total Liabilities	$	—			$	2,081			$	—			$	2,081

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

	2017
	Level 1				Level 2				Level 3				Total
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential	$	—			$	11,338			$	—			$	11,338
Mortgage-Backed Securities—Commercial	—				24,149				—				24,149
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential	—				625,555				—				625,555
Other Government-Sponsored Enterprises	—				1,097				—				1,097
Obligations of States and Political Subdivisions	—				27,410				—				27,410
Corporate Securities	—				16,493				—				16,493
Pooled Trust Preferred Collateralized Debt Obligations	—				—				23,646				23,646
Total Debt Securities	—				706,042				23,646				729,688
Equities	—				—				1,670				1,670
Total Securities Available for Sale	—				706,042				25,316				731,358
Other Investments	—				29,837				—				29,837
Loans Held for Sale	—				14,850				—				14,850
Other Assets (a)	—				1,778				2,143				3,921
Total Assets	$	—			$	752,507			$	27,459			$	779,966
Other Liabilities (a)	$	—			$	3,079			$	—			$	3,079
Total Liabilities	$	—			$	3,079			$	—			$	3,079

(a)

Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2018:

	Pooled Trust Preferred Collateralized Debt Obligations				Other Investments				Other Assets				Total
	(dollars in thousands)
Balance, beginning of year	$	23,646			$	1,670			$	2,143			$	27,459
Total gains or losses
Included in earnings	8,102				—				—				8,102
Included in other comprehensive income	(118		)		—				—				(118		)
Purchases, issuances, sales, and settlements
Purchases	—				—				601				601
Issuances	—				—				—				—
Sales	(12,289		)		—				—				(12,289		)
Settlements	(19,341		)		—				(48		)		(19,389		)
Transfers from Level 3	—				—				—				—
Transfers into Level 3	—				—				—				—
Balance, end of year	$	—			$	1,670			$	2,696			$	4,366

There are no gains or losses included in earnings for the period that are attributable to the change in realized gains (losses) relating to assets held at December 31, 2018.

During the year ended December 31, 2018, there were no transfers between fair value Levels 1, 2 or 3.

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows for the year ended December 31, 2017:

		Pooled Trust Preferred Collateralized Debt Obligations				Equities				Other Assets				Total
	(dollars in thousands)
Balance, beginning of year		$	33,292			$	1,670			$	930			$	35,892
Total gains or losses
Included in earnings		4,329				—				—				4,329
Included in other comprehensive income		3,725				—				—				3,725
Purchases, issuances, sales, and settlements
Purchases		—				—				1,213				1,213
Issuances		—				—				—				—
Sales		—				—				—				—
Settlements		(17,700		)		—				—				(17,700		)
Transfers from Level 3		—				—				—				—
Transfers into Level 3		—				—				—				—
Balance, end of year		$	23,646			$	1,670			$	2,143			$	27,459

Schedule of Assets Measured on Nonrecurring Basis

The tables below present the balances of assets measured at fair value on a nonrecurring basis at December 31 and total gains and losses realized on these assets during the year ended December 31:

	2018
	Level 1				Level 2				Level 3				Total				Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—			$	15,076			$	15,320			$	30,396			$	(1,778	)
Other real estate owned	—				4,035				—				4,035				(593		)
Total Assets	$	—			$	19,111			$	15,320			$	34,431			$	(2,371	)

	2017
	Level 1				Level 2				Level 3				Total				Total Gains (Losses)
	(dollars in thousands)
Impaired loans	$	—			$	23,249			$	15,245			$	38,494			$	(1,548	)
Other real estate owned	—				3,264				—				3,264				(1,099		)
Total Assets	$	—			$	26,513			$	15,245			$	41,758			$	(2,647	)

Carrying Amounts and Fair Values of Financial Instruments

The following table presents carrying amounts and estimated fair values of First Commonwealth’s financial instruments at December 31:

	2018
					Fair Value Measurements Using:
	Carrying Amount				Total				Level 1				Level 2				Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	95,934			$	95,934			$	95,934			$	—			$	—
Interest-bearing deposits	3,013				3,013				3,013				—				—
Securities available for sale	909,247				909,247				—				909,247				—
Securities held to maturity	393,855				383,993				—				383,993				—
Other investments	32,126				32,126				—				30,456				1,670
Loans held for sale	11,881				11,881				—				11,881				—
Loans	5,774,139				5,821,791				—				15,076				5,806,715
Financial liabilities
Deposits	5,897,992				5,904,147				—				5,904,147				—
Short-term borrowings	721,823				721,532				—				721,532				—
Long-term debt	7,551				7,720				—				7,720				—
Subordinated debt	170,288				168,067				—				—				168,067
Capital lease obligation	7,217				7,217				—				7,217				—

	2017
					Fair Value Measurements Using:
	Carrying Amount				Total				Level 1				Level 2				Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	98,624			$	98,624			$	98,624			$	—			$	—
Interest-bearing deposits	8,668				8,668				8,668				—				—
Securities available for sale	731,358				731,358				—				706,042				25,316
Securities held to maturity	422,096				418,249				—				418,249				—
Other investments	29,837				29,837				—				29,837				—
Loans held for sale	14,850				14,850				—				14,850				—
Loans	5,407,376				5,443,434				—				23,249				5,420,185
Financial liabilities
Deposits	5,580,705				5,580,812				—				5,580,812				—
Short-term borrowings	707,466				707,263				—				707,263				—
Long-term debt	8,161				8,548				—				8,548				—
Subordinated debt	72,167				65,785				—				—				65,785
Capital Lease Obligation	7,590				7,590				—				7,590				—

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19279-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109250915&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration