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Leases Lease Liability Maturity (Tables)
 9 Months Ended
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, 2024December 31, 2023
Balance sheet:
Operating lease asset classified as premises and equipment$40,982 $45,005 
Operating lease liability classified as other liabilities45,472 49,327 
For the Three Months EndedFor the Nine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 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 years13.1213.37
Weighted average discount rate3.72 %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, 20265,063 
September 30, 20274,749 
September 30, 20284,415 
September 30, 20294,456 
Thereafter34,237 
Total future minimum lease payments58,497 
Less remaining imputed interest13,025 
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, 20265,063 
September 30, 20274,749 
September 30, 20284,415 
September 30, 20294,456 
Thereafter34,237 
Total future minimum lease payments58,497 
Less remaining imputed interest13,025 
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, 2024December 31, 2023
Balance sheet:
Operating lease asset classified as premises and equipment$40,982 $45,005 
Operating lease liability classified as other liabilities45,472 49,327 
For the Three Months EndedFor the Nine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 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 years13.1213.37
Weighted average discount rate3.72 %3.51 %
Operating cash flows$1,404 $1,571