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Leases Leases | 6 Months Ended
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Jun. 30, 2021
Leases [Abstract] |
Leases of Lessee Disclosure [Text Block] | LeasesFirst Commonwealth has elected to apply certain practical expedients provided under ASU 2016-02 "Leases" (Topic 842) including (i) to not apply the requirements in the new standard to short-term leases (ii) to not reassess the lease classification for any expired or existing lease (iii) to account for lease and non-lease components separately (iv) to not reassess initial direct costs for any existing leases. The impact of this standard primarily relates to operating leases of certain real estate properties, including certain branch and ATM locations and office space. First Commonwealth has no material leasing arrangements for which it is the lessor of property or equipment. The following table represents the unaudited Consolidated Statements of Condition classification of the Company’s right of use ("ROU") assets and lease liabilities, lease costs and other lease information.
|  |  |  |  | June 30, 2021 | December 31, 2020
Balance sheet: |  |  |  |  |  |
Operating lease asset classified as premises and equipment |  |  |  |  | $ | 39,636 |  | $ | 42,617 |
Operating lease liability classified as other liabilities |  |  |  |  | 43,854 |  | 46,819 |
|  | For the Three Months Ended |  | For the Six Months Ended
|  | June 30, 2021 | June 30, 2020 |  | June 30, 2021 | June 30, 2020
Income statement: |  |  |  |  |  |
Operating lease cost classified as occupancy and equipment expense |  | $ | 1,200 |  | $ | 1,368 |  |  | $ | 2,401 |  | $ | 2,736 |
Weighted average lease term, in years |  |  |  |  | 14.69 | 14.96
Weighted average discount rate |  |  |  |  | 3.41 | % | 3.41 | %
Operating cash flows |  |  |  |  | $ | 1,193 |  | $ | 1,325 |
The ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. First Commonwealth's lease agreements often include one or more options to renew at the Company's discretion. If we consider the renewal option to be reasonably certain, we include the extended term in the calculation of the ROU asset and lease liability. First Commonwealth uses incremental borrowing rates when calculating the lease liability because the rate implicit in the lease is not readily determinable. The incremental borrowing rate used by First Commonwealth is an amortizing loan rate obtained from the Federal Home Loan Bank ("FHLB") of Pittsburgh. This rate is consistent with a collateralized borrowing rate and is available for terms similar to the lease payment schedules. Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2021 were as follows (dollars in thousands):
For the twelve months ended: |  |
June 30, 2022 |  | $ | 4,595 |
June 30, 2023 |  | 4,406 |
June 30, 2024 |  | 4,240 |
June 30, 2025 |  | 4,144 |
June 30, 2026 |  | 3,702 |
Thereafter |  | 35,772 |
Total future minimum lease payments |  | 56,859 |
Less remaining imputed interest |  | 13,005 |
Operating lease liability |  | $ | 43,854 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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