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Leases Lease Liability Maturity (Tables) | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
Lessee, Operating Leases [Text Block] | Leases First 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; and (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.
|  |  |  |  | September 30, 2024 | December 31, 2023
Balance sheet: |  |  |  |  |  |
Operating lease asset classified as premises and equipment |  | $ | 40,982 |  | $ | 45,005 |
Operating lease liability classified as other liabilities |  | 45,472 |  | 49,327 |
|  | For the Three Months Ended |  | For the Nine Months Ended
|  | September 30, 2024 | September 30, 2023 |  | September 30, 2024 | September 30, 2023
Income statement: |  |  |  |  |  |
Operating lease cost classified as occupancy and equipment expense |  | $ | 1,406 |  | $ | 1,521 |  |  | $ | 4,333 |  | $ | 4,565 |
Weighted average lease term, in years |  |  |  |  | 13.12 | 13.37
Weighted average discount rate |  |  |  |  | 3.72 | % | 3.51 | %
Operating cash flows |  |  |  |  | $ | 1,404 |  | $ | 1,571 |
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 September 30, 2024 were as follows (dollars in thousands):
For the twelve months ended: |  |
September 30, 2025 |  | $ | 5,577 |
September 30, 2026 |  | 5,063 |
September 30, 2027 |  | 4,749 |
September 30, 2028 |  | 4,415 |
September 30, 2029 |  | 4,456 |
Thereafter |  | 34,237 |
Total future minimum lease payments |  | 58,497 |
Less remaining imputed interest |  | 13,025 |
Operating lease liability |  | $ | 45,472 |
Lessee, Operating Lease, Liability, Maturity | Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2024 were as follows (dollars in thousands):
For the twelve months ended: |  |
September 30, 2025 |  | $ | 5,577 |
September 30, 2026 |  | 5,063 |
September 30, 2027 |  | 4,749 |
September 30, 2028 |  | 4,415 |
September 30, 2029 |  | 4,456 |
Thereafter |  | 34,237 |
Total future minimum lease payments |  | 58,497 |
Less remaining imputed interest |  | 13,025 |
Operating lease liability |  | $ | 45,472 |
Lease, Cost | 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.
|  |  |  |  | September 30, 2024 | December 31, 2023
Balance sheet: |  |  |  |  |  |
Operating lease asset classified as premises and equipment |  | $ | 40,982 |  | $ | 45,005 |
Operating lease liability classified as other liabilities |  | 45,472 |  | 49,327 |
|  | For the Three Months Ended |  | For the Nine Months Ended
|  | September 30, 2024 | September 30, 2023 |  | September 30, 2024 | September 30, 2023
Income statement: |  |  |  |  |  |
Operating lease cost classified as occupancy and equipment expense |  | $ | 1,406 |  | $ | 1,521 |  |  | $ | 4,333 |  | $ | 4,565 |
Weighted average lease term, in years |  |  |  |  | 13.12 | 13.37
Weighted average discount rate |  |  |  |  | 3.72 | % | 3.51 | %
Operating cash flows |  |  |  |  | $ | 1,404 |  | $ | 1,571 |

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- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-4 + Details
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- Definition Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-6 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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