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Regulatory Restrictions and Capital Adequacy | 12 Months Ended
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Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] |
Regulatory Restrictions and Capital Adequacy | Regulatory Restrictions and Capital Adequacy The amount of funds available to the parent from its subsidiary bank is limited by restrictions imposed on all depository institutions by banking regulation that restricts and limits the payment of dividends and the ability of depository institutions to engage in transactions, including lending transactions and asset purchases, with affiliates. First Commonwealth and First Commonwealth Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators, which, if undertaken, could have a direct material effect on First Commonwealth’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, First Commonwealth and First Commonwealth Bank must meet specific capital guidelines that involve quantitative measures of First Commonwealth’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. First Commonwealth’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors. Effective January 1, 2015, First Commonwealth became subject to regulatory risk-based capital rules adopted by the federal banking agencies implementing Basel III. The capital rules require First Commonwealth to maintain the following minimum capital levels: •a minimum Tier I capital to risk-weighted assets of at least 6.0%, plus a capital conservation buffer of 2.5%, resulting in a required minimum ratio of 8.5% •a minimum Common Equity Tier 1 to risk weighted assets of at least 4.5%, plus the capital conservation buffer of 2.5%, resulting in a required minimum ratio of 7%. •a minimum Total Capital to risk weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer, resulting in a required minimum of 10.5% •a minimum Leverage ratio, which is Tier 1 capital to adjusted average assets, of 4.0% The capital conservation buffer may only include capital that qualifies as Common Equity Tier 1. The Basel III Rules also permit banking organizations with less than $15.0 billion in assets to retain, through a one-time election, the exclusion of accumulated other comprehensive income from regulatory capital. The Company elected to retain this treatment, which reduces the volatility of regulatory capital levels. In 2018, First Commonwealth Bank, the Company's banking subsidiary, issued $100 million in subordinated debt, of which $50.0 million remains outstanding as of December 31, 2024, which under regulatory rules qualifies as Tier II capital. As of December 31, 2024, this subordinated debt issuance increased the total risk-based capital ratio by 52 basis points. In March 2020, regulators issued interim financial rule (“IFR”) “Regulatory Capital Rule: Revised Transition of the Current Expected Losses Methodology for Allowances” in response to the disrupted economic activity from the pandemic. The IFR provides financial institutions that adopt CECL during 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided by the initial two-year delay (“five-year transition”). The Company adopted CECL effective January 1, 2020 and elected to implement the five-year transition. Regulatory capital levels without the capital benefit at December 31, 2024 for both First Commonwealth and First Commonwealth Bank would have continued to be greater than the amounts needed to be considered “well capitalized”, as the transition provided a capital benefit of approximately 4 to 6 basis points. As of December 31, 2024 and 2023, First Commonwealth and First Commonwealth Bank met all capital adequacy requirements to which they are subject and were considered well-capitalized under the regulatory rules. To be considered well capitalized, the Company must maintain minimum Total risk-based capital, Tier I risk-based capital, Tier I leverage ratio and Common equity tier I risk-based capital as set for in the tables below:
| Actual |  |  |  | Minimum Capital Required |  | Required to be Considered Well Capitalized
| Capital Amount |  | Ratio |  |  |  |  |  | Capital Amount |  | Ratio |  | Capital Amount |  | Ratio
| (dollars in thousands)
As of December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital to Risk Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,366,963 |  |  | 14.58 | % |  |  |  |  |  | $ | 984,292 |  |  | 10.50 | % |  | $ | 937,421 |  |  | 10.00 | %
First Commonwealth Bank | 1,268,403 |  |  | 13.56 |  |  |  |  |  |  | 982,216 |  |  | 10.50 |  |  | 935,444 |  |  | 10.00 |
Tier I Capital to Risk Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,207,183 |  |  | 12.88 | % |  |  |  |  |  | $ | 796,808 |  |  | 8.50 | % |  | $ | 749,937 |  |  | 8.00 | %
First Commonwealth Bank | 1,108,623 |  |  | 11.85 |  |  |  |  |  |  | 795,128 |  |  | 8.50 |  |  | 748,355 |  |  | 8.00 |
Tier I Capital to Average Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,207,183 |  |  | 10.63 | % |  |  |  |  |  | $ | 454,457 |  |  | 4.00 | % |  | $ | 568,071 |  |  | 5.00 | %
First Commonwealth Bank | 1,108,623 |  |  | 9.78 |  |  |  |  |  |  | 453,467 |  |  | 4.00 |  |  | 566,834 |  |  | 5.00 |
Common Equity Tier I to Risk Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,137,183 |  |  | 12.13 | % |  |  |  |  |  | $ | 656,195 |  |  | 7.00 | % |  | $ | 609,324 |  |  | 6.50 | %
First Commonwealth Bank | 1,108,623 |  |  | 11.85 |  |  |  |  |  |  | 654,811 |  |  | 7.00 |  |  | 608,039 |  |  | 6.50 |
| Actual |  |  |  | Minimum Capital Required |  | Required to be Considered Well Capitalized
| Capital Amount |  | Ratio |  |  |  |  |  | Capital Amount |  | Ratio |  | Capital Amount |  | Ratio
| (dollars in thousands)
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital to Risk Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,314,021 |  |  | 13.93 | % |  |  |  |  |  | $ | 990,508 |  |  | 10.50 | % |  | $ | 943,341 |  |  | 10.00 | %
First Commonwealth Bank | 1,222,182 |  |  | 13.01 |  |  |  |  |  |  | 986,558 |  |  | 10.50 |  |  | 939,579 |  |  | 10.00 |
Tier I Capital to Risk Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,122,814 |  |  | 11.90 | % |  |  |  |  |  | $ | 801,840 |  |  | 8.50 | % |  | $ | 754,673 |  |  | 8.00 | %
First Commonwealth Bank | 1,030,975 |  |  | 10.97 |  |  |  |  |  |  | 798,642 |  |  | 8.50 |  |  | 751,663 |  |  | 8.00 |
Tier I Capital to Average Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,122,814 |  |  | 10.04 | % |  |  |  |  |  | $ | 447,542 |  |  | 4.00 | % |  | $ | 559,427 |  |  | 5.00 | %
First Commonwealth Bank | 1,030,975 |  |  | 9.24 |  |  |  |  |  |  | 446,530 |  |  | 4.00 |  |  | 558,163 |  |  | 5.00 |
Common Equity Tier I to Risk Weighted Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Commonwealth Financial Corporation | $ | 1,052,814 |  |  | 11.16 | % |  |  |  |  |  | $ | 660,339 |  |  | 7.00 | % |  | $ | 613,172 |  |  | 6.50 | %
First Commonwealth Bank | 1,030,975 |  |  | 10.97 |  |  |  |  |  |  | 657,705 |  |  | 7.00 |  |  | 610,727 |  |  | 6.50 |

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1D -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1D Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1F -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1F + Details
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