XML 64 R49.htm IDEA: XBRL DOCUMENT v3.24.0.1

Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

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)

December 31, 2023

Other Investments

$

6,182

Carrying Value

N/A

N/A

Limited Partnership Investments

27,137

Par Value

N/A

N/A

December 31, 2022

Other Investments

1,170

Carrying Value

N/A

N/A

Nonperforming Loans

363

(a)

Gas Reserve study

Discount rate

10.00%

Gas per MMBTU

$3.00 - $3.00 (b)

Oil per BBL/d

$80.00 - $80.00 (b)

Limited Partnership Investments

17,691

Par Value

N/A

N/A

(a)the remainder of nonperforming 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:

			2023
			Level 1						Level 2						Level 3						Total
			(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential			$	—					$	3,465					$	—					$	3,465
Mortgage-Backed Securities—Commercial			—						465,393						—						465,393
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential			—						494,599						—						494,599
Other Government-Sponsored Enterprises			—						915						—						915
Obligations of States and Political Subdivisions			—						8,202						—						8,202
Corporate Securities			—						48,412						—						48,412
Total Securities Available for Sale			—						1,020,986						—						1,020,986
Other Investments			—						44,689						6,182						50,871
Loans Held for Sale			—						29,820						—						29,820
Other Assets (a)			—						32,668						27,137						59,805
Total Assets			$	—					$	1,128,163					$	33,319					$	1,161,482
Other Liabilities (a)			$	—					$	58,167					$	—					$	58,167
Total Liabilities			$	—					$	58,167					$	—					$	58,167

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

			2022
			Level 1						Level 2						Level 3						Total
			(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities—Residential			$	—					$	3,983					$	—					$	3,983
Mortgage-Backed Securities—Commercial			—						271,416						—						271,416
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities—Residential			—						448,989						—						448,989
Other Government-Sponsored Enterprises			—						882						—						882
Obligations of States and Political Subdivisions			—						8,187						—						8,187
Corporate Securities			—						29,204						—						29,204
Total Securities Available for Sale			—						762,661						—						762,661
Other Investments			—						25,244						1,170						26,414
Loans Held for Sale			—						11,869						—						11,869
Other Assets (a)			—						50,738						17,691						68,429
Total Assets			$	—					$	850,512					$	18,861					$	869,373
Other Liabilities (a)			$	—					$	89,298					$	—					$	89,298
Total Liabilities			$	—					$	89,298					$	—					$	89,298

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, 2023: 

									Other Investments												Other Assets						Total
									(dollars in thousands)
Balance, beginning of year									$	1,170											$	17,691					$	18,861
Total gains or losses
Included in earnings									—												—						—
Included in other comprehensive income									—												3						3
Purchases, issuances, sales, and settlements
Purchases									5,000												10,055						15,055
Issuances									—												—						—
Sales									—												—						—
Settlements									—												(669)						(669)
Transfers from Level 3									—												—						—
Transfers into Level 3									12												57						69
Balance, end of year									$	6,182											$	27,137					$	33,319

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, 2023.

During the year ended December 31, 2023, 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, 2022:

																					Other Investments												Other Assets						Total
																					(dollars in thousands)
Balance, beginning of year																					$	1,170											$	14,981					$	16,151
Total gains or losses
Included in earnings																					—												—						—
Included in other comprehensive income																					—												—						—
Purchases, issuances, sales, and settlements
Purchases																					—												2,991						2,991
Issuances																					—												—						—
Sales																					—												(281)						(281)
Settlements																					—												—						—
Transfers from Level 3																					—												—						—
Transfers into Level 3																					—												—						—
Balance, end of year																					$	1,170											$	17,691					$	18,861

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:

			2023
			Level 1						Level 2						Level 3						Total						Total Gains (Losses)
			(dollars in thousands)
Nonperforming loans			$	—					$	25,215					$	9,708					$	34,923					$	(6,606)
Other real estate owned			—						609						—						609						(6)
Total Assets			$	—					$	25,824					$	9,708					$	35,532					$	(6,612)

			2022
			Level 1						Level 2						Level 3						Total						Total Gains (Losses)
			(dollars in thousands)
Nonperforming loans			$	—					$	23,140					$	11,636					$	34,776					$	(2,127)
Other real estate owned			—						553						—						553						—
Total Assets			$	—					$	23,693					$	11,636					$	35,329					$	(2,127)

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:

			2023
									Fair Value Measurements Using:
			Carrying Amount						Total						Level 1						Level 2						Level 3
			(dollars in thousands)
Financial assets
Cash and due from banks			$	125,436					$	125,436					$	125,436					$	—					$	—
Interest-bearing deposits			21,557						21,557						21,557						—						—
Securities available for sale			1,020,986						1,020,986						—						1,020,986						—
Securities held to maturity			419,009						350,595						—						350,595						—
Other investments			50,871						50,871						—						44,689						6,182
Loans held for sale			29,820						29,820						—						29,820						—
Loans and leases			8,968,761						8,860,736						—						25,215						8,835,521
Financial liabilities
Deposits			9,192,309						9,187,655						—						9,187,655						—
Short-term borrowings			597,835						594,670						—						594,670						—
Long-term debt			4,122						4,041						—						4,041						—
Subordinated debt			177,741						151,525						—						—						151,525
Capital lease obligation			4,894						4,894						—						4,894						—

			2022
									Fair Value Measurements Using:
			Carrying Amount						Total						Level 1						Level 2						Level 3
			(dollars in thousands)
Financial assets
Cash and due from banks			$	124,254					$	124,254					$	124,254					$	—					$	—
Interest-bearing deposits			29,990						29,990						29,990						—						—
Securities available for sale			762,661						762,661						—						762,661						—
Securities held to maturity			461,162						386,205						—						386,205						—
Other investments			26,414						26,414						—						25,244						1,170
Loans held for sale			11,869						11,869						—						11,869						—
Loans and leases			7,642,143						7,639,721						—						23,140						7,616,581
Financial liabilities
Deposits			8,005,469						7,992,012						—						7,992,012						—
Short-term borrowings			372,694						363,135						—						363,135						—
Long-term debt			4,862						4,781						—						4,781						—
Subordinated debt			170,937						156,621						—						—						156,621
Capital lease obligation			5,425						5,425						—						5,425						—

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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types: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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types: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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types: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
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-11

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types: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://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

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