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Incentive Compensation Plan | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Incentive Compensation Plan | Incentive Compensation PlanOn January 20, 2009, the Board of Directors of the Company adopted, with shareholder approval, the First Commonwealth Financial Corporation Incentive Compensation Plan. This plan allows for shares of common stock to be issued to employees, directors, and consultants of the Company and its subsidiaries as an incentive to aid in the financial success of the Company. The shares can be issued as options, stock appreciation rights, performance share or unit awards, dividend or dividend equivalent rights, stock awards, restricted stock awards, or other annual incentive awards. Up to 5,000,000 shares of stock can be awarded under this plan, of which 2,689,027 shares were still eligible for awards as of December 31, 2020. Restricted Stock The following provides detail on the restricted stock awards which were issued and outstanding in 2020, 2019 and 2018 in order to retain and attract key employees. The grant date fair value of the restricted stock awards is equal to the price of First Commonwealth’s common stock on grant date.
Grant Date | Shares issued | Grant Price | Vesting Date | Number of Equal Vesting Periods
February 20, 2020 | 95,300 |  | $ | 13.72 |  | February 20, 2023 | 1
February 21, 2019 | 63,000 |  | 14.22 |  | February 22, 2022 | 1
February 21, 2019 | 15,000 |  | 14.22 |  | February 22, 2022 | 1
November 26, 2018 | 2,000 |  | 13.82 |  | November 26, 2021 | 1
May 29, 2018 | 3,000 |  | 15.44 |  | May 29, 2021 | 1
March 26, 2018 | 2,000 |  | 14.08 |  | March 26, 2021 | 1
February 26, 2018 | 77,500 |  | 14.49 |  | February 26, 2021 | 1
March 24, 2017 | 5,000 |  | 12.99 |  | March 24, 2020 | 1
March 24, 2017 | 7,000 |  | 12.99 |  | March 24, 2020 | 1
December 19, 2016 | 15,000 |  | 13.96 |  | December 19, 2019 | 3
September 30, 2016 | 10,000 |  | 10.09 |  | September 30, 2019 | 1
September 19, 2016 | 33,000 |  | 10.02 |  | September 19, 2019 | 3
June 7, 2016 | 10,000 |  | 9.34 |  | June 7, 2019 | 1
March 1, 2016 | 10,000 |  | 8.84 |  | March 1, 2019 | 1
March 1, 2016 | 5,000 |  | 8.84 |  | March 1, 2019 | 1
June 26, 2015 | 1,000 |  | 9.84 |  | June 26, 2018 | 1
February 5, 2015 | 50,000 |  | 8.55 |  | February 5, 2018 | 1
Compensation expense related to restricted stock was $2.9 million, $2.7 million and $2.6 million in 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $3.2 million of unrecognized compensation cost related to unvested restricted stock awards granted. A summary of the status of First Commonwealth’s unvested service-based restricted stock awards as of December 31 and changes for the years ended on those dates is presented below:
| 2020 |  | 2019 |  | 2018
| Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value
Outstanding, beginning of the year | 171,500 |  |  | $ | 14.27 |  |  | 137,500 |  |  | $ | 13.05 |  |  | 117,000 |  |  | $ | 9.99 |
Granted | 95,300 |  |  | 13.72 |  |  | 78,000 |  |  | 14.22 |  |  | 84,500 |  |  | 14.50 |
Vested | (12,000) |  |  | — |  |  | (41,000) |  |  | 10.09 |  |  | (54,000) |  |  | 9.37 |
Forfeited | (4,000) |  |  | 13.85 |  |  | (3,000) |  |  | 14.40 |  |  | (10,000) |  |  | 9.34 |
Outstanding, end of the year | 250,800 |  |  | 14.13 |  |  | 171,500 |  |  | 14.27 |  |  | 137,500 |  |  | 13.05 |
The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2020, 2019 and 2018. These plans were previously approved by the Board of Directors.
Grant Date | Target Share Award | Performance Period (years) | Award if threshold met | Award if targets are met | Award if superior met | Award if threshold not achieved | Vesting After Performance Period (years) | Final vesting
December 30, 2015 | 60,000 |  | 5 |  |  |  |  | 0 | December 31, 2020
February 18, 2016 | 160,650 |  | 3 | 40 | % | 100 | % | 200 | % | — | % | 0 | December 31, 2018
February 23, 2017 | 93,500 |  | 3 | 40 | % | 100 | % | 200 | % | — | % | 0 | December 31, 2019
February 22, 2018 | 102,000 |  | 3 | 40 | % | 100 | % | 200 | % | — | % | 0 | December 31, 2020
February 21, 2019 | 121,900 |  | 3 | 40 | % | 100 | % | 200 | % | — | % | 0 | December 31, 2021
February 20, 2020 | 188,700 |  | 3 | 40 | % | 100 | % | 200 | % | — | % | 0 | December 31, 2022
The following table summarizes the estimated unvested target share awards for the Plans as of December 31:
| 2020 |  | 2019 |  | 2018
Outstanding, beginning of the year | 442,832 |  |  |  |  | 496,603 |  |  |  |  | 525,045 |  |  |
Granted | 188,700 |  |  |  |  | 134,929 |  |  |  |  | 130,995 |  |  |
Issued | (134,452) |  |  |  |  | (188,700) |  |  |  |  | (149,480) |  |  |
Forfeited | — |  |  |  |  | — |  |  |  |  | (9,957) |  |  |
Outstanding, end of the year | 497,080 |  |  |  |  | 442,832 |  |  |  |  | 496,603 |  |  |
The December 30, 2015 grant has a fair value of $9.18 based the closing stock price when the shares were granted. Based on a Monte Carlo simulation, the February 23, 2017 grant has a fair value of $13.29 per share for 75% of the grant and $15.09 per share for 25% of the grant, the February 22, 2018 grant has a fair value of $14.17 for 50% of the grant, $13.25 for 25% of the grant and $15.83 for the remaining 25% of the grant, the February 21, 2019 grant has a fair value of $14.22 for 50% of the grant, $16.62 for 25% of the grant and $13.07 for the remaining 25% of the grant and the February 20, 2020 grant has a fair value of $13.72 for 50% of the grant, $15.37 for 25% of the grant and $12.43 for the remaining 25% of the grant.

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