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Investment Securities | 9 Months Ended
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Sep. 30, 2025
Investment Securities [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investment Securities Securities Available for Sale Below is an analysis of the amortized cost and estimated fair values of securities available for sale at:
| September 30, 2025 |  | December 31, 2024
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | 2,738 |  |  | $ | 21 |  |  | $ | (164) |  |  | $ | 2,595 |  |  | $ | 3,096 |  |  | $ | 14 |  |  | $ | (212) |  |  | $ | 2,898 |
Mortgage-Backed Securities – Commercial | 716,893 |  |  | 3,791 |  |  | (45,777) |  |  | 674,907 |  |  | 779,232 |  |  | 2,489 |  |  | (57,546) |  |  | 724,175 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 358,751 |  |  | 1,471 |  |  | (45,176) |  |  | 315,046 |  |  | 413,434 |  |  | 1,481 |  |  | (64,331) |  |  | 350,584 |
Other Government-Sponsored Enterprises | 1,000 |  |  | — |  |  | (24) |  |  | 976 |  |  | 1,000 |  |  | — |  |  | (54) |  |  | 946 |
Obligations of States and Political Subdivisions | 8,011 |  |  | 3 |  |  | (631) |  |  | 7,383 |  |  | 8,510 |  |  | — |  |  | (983) |  |  | 7,527 |
Corporate Securities | 58,236 |  |  | 1,393 |  |  | (1,557) |  |  | 58,072 |  |  | 62,475 |  |  | 1,454 |  |  | (2,436) |  |  | 61,493 |
Total Debt Securities Available for Sale | $ | 1,145,629 |  |  | $ | 6,679 |  |  | $ | (93,329) |  |  | $ | 1,058,979 |  |  | $ | 1,267,747 |  |  | $ | 5,438 |  |  | $ | (125,562) |  |  | $ | 1,147,623 |
Mortgage-backed securities include mortgage-backed obligations of U.S. Government agencies and obligations of U.S. Government-sponsored enterprises. These obligations have contractual maturities ranging from less than one year to approximately 42 years, with lower anticipated lives to maturity due to prepayments. All mortgage-backed securities contain a certain amount of risk related to the uncertainty of prepayments of the underlying mortgages. Interest rate changes have a direct impact upon prepayment speeds; therefore, First Commonwealth uses computer simulation models to test the average life and yield volatility of all mortgage-backed securities under various interest rate scenarios to monitor the potential impact on earnings and interest rate risk positions. Expected maturities will differ from contractual maturities because issuers may have the right to call or repay obligations with or without call or prepayment penalties. Other fixed income securities within the portfolio also contain prepayment risk. The amortized cost and estimated fair value of debt securities available for sale at September 30, 2025, by contractual maturity, are shown below.
| Amortized Cost |  | Estimated Fair Value
| (dollars in thousands)
Due within 1 year | $ | 8,219 |  |  | $ | 8,195 |
Due after 1 but within 5 years | 30,245 |  |  | 30,867 |
Due after 5 but within 10 years | 28,783 |  |  | 27,369 |
Due after 10 years | — |  |  | — |
| 67,247 |  |  | 66,431 |
Mortgage-Backed Securities (a) | 1,078,382 |  |  | 992,548 |
Total Debt Securities | $ | 1,145,629 |  |  | $ | 1,058,979 |
(a) Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $719.6 million and a fair value of $677.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $358.8 million and a fair value of $315.0 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac. Proceeds from sales, gross gains (losses) realized on sales and maturities related to securities held to maturity and securities available for sale were as follows for the nine months ended September 30:
| 2025 |  | 2024
| (dollars in thousands)
Proceeds from sales | $ | 69,862 |  |  | $ | 69,598 |
Gross gains (losses) realized: |  |  |
Sales transactions: |  |  |
Gross gains | $ | — |  |  | $ | — |
Gross losses | (5,142) |  |  | (5,535) |
| (5,142) |  |  | (5,535) |
Maturities |  |  |
Gross gains | 369 |  |  | 88 |
Gross losses | — |  |  | — |
| 369 |  |  | 88 |
Net losses | $ | (4,773) |  |  | $ | (5,447) |
For the nine months ended September 30, 2025, $48.5 million of the proceeds from sales in the above table are a result of management selling $53.7 million in available for sale investment securities yielding 2.61% and reinvesting the proceeds into securities yielding 5.41%. Additionally, $21.4 million in proceeds from sales are a result of the sale of investments acquired as part of the Center acquisition. All of the acquired investments were recorded at fair value at the time of acquisition and subsequently sold at the same value. Gains from maturities in the above table are related to the call of one corporate subordinated debt issue. For the nine months ended September 30, 2024, proceeds from sales included in the above table are a result of management selling $75.1 million in available for sale investment securities yielding 2.17% and reinvesting the proceeds into securities yielding 5.49%. Securities available for sale with an estimated fair value of $721.5 million and $580.5 million were pledged as of September 30, 2025 and December 31, 2024, respectively, to secure public deposits and for other purposes required or permitted by law. Equity Securities During the second quarter of 2024, Visa commenced an exchange offer for any and all outstanding shares of its Class B-1 common stock for a combination of Visa's Class B-2 common stock, Class C common stock and, where applicable cash in lieu of fractional shares. As part of this exchange, each share of Class B-1 common stock would be exchanged for one half share of the newly issued Class B-2 common stock and Class C common stock would be issued in an amount equivalent to one half of a share of Class B-1 common stock. The Company opted to participate in this exchange offer prior to its expiration and received 13,340 Class B-2 shares and 5,294 Class C shares. In 2024, the Class C shares were sold at fair value resulting in a gain of $5.7 million. During the first quarter of 2025, the Class B-2 shares, which were carried with a zero basis, were sold, resulting in a $5.1 million gain. Securities Held to Maturity Below is an analysis of the amortized cost and fair values of debt securities held to maturity at:
| September 30, 2025 |  | December 31, 2024
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | 1,454 |  |  | $ | — |  |  | $ | (161) |  |  | $ | 1,293 |  |  | $ | 1,586 |  |  | $ | — |  |  | $ | (220) |  |  | $ | 1,366 |
Mortgage-Backed Securities- Commercial | 128,911 |  |  | 627 |  |  | (12,587) |  |  | 116,951 |  |  | 89,404 |  |  | 66 |  |  | (14,785) |  |  | 74,685 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 301,895 |  |  | 508 |  |  | (35,800) |  |  | 266,603 |  |  | 266,587 |  |  | — |  |  | (47,564) |  |  | 219,023 |
Other Government-Sponsored Enterprises | 23,115 |  |  | — |  |  | (2,939) |  |  | 20,176 |  |  | 22,869 |  |  | — |  |  | (4,155) |  |  | 18,714 |
Obligations of States and Political Subdivisions | 23,740 |  |  | — |  |  | (1,396) |  |  | 22,344 |  |  | 24,193 |  |  | — |  |  | (2,246) |  |  | 21,947 |
Debt Securities Issued by Foreign Governments | 800 |  |  | — |  |  | (5) |  |  | 795 |  |  | 1,000 |  |  | — |  |  | (16) |  |  | 984 |
Total Securities Held to Maturity | $ | 479,915 |  |  | $ | 1,135 |  |  | $ | (52,888) |  |  | $ | 428,162 |  |  | $ | 405,639 |  |  | $ | 66 |  |  | $ | (68,986) |  |  | $ | 336,719 |
The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties.
| Amortized Cost |  | Estimated Fair Value
| (dollars in thousands)
Due within 1 year | $ | 1,088 |  |  | $ | 1,085 |
Due after 1 but within 5 years | 14,818 |  |  | 14,325 |
Due after 5 but within 10 years | 31,185 |  |  | 27,452 |
Due after 10 years | 564 |  |  | 453 |
| 47,655 |  |  | 43,315 |
Mortgage-Backed Securities (a) | 432,260 |  |  | 384,847 |
Total Debt Securities | $ | 479,915 |  |  | $ | 428,162 |
(a)Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $130.4 million and a fair value of $118.2 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $301.9 million and a fair value of $266.6 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac. Securities held to maturity with an amortized cost of $346.4 million and $247.5 million were pledged as of September 30, 2025 and December 31, 2024, respectively, to secure public deposits and for other purposes required or permitted by law. Other Investments As a member of the Federal Home Loan Bank ("FHLB"), First Commonwealth is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The level of stock required to be held is dependent on the amount of First Commonwealth's mortgage-related assets and outstanding borrowings with the FHLB. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. As of September 30, 2025 and December 31, 2024, our FHLB stock totaled $35.7 million and $25.2 million, respectively, and is included in “Other investments” on the unaudited Consolidated Statements of Financial Condition. FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. First Commonwealth evaluates impairment quarterly and has concluded that the par value of its investment in FHLB stock will be recovered. Accordingly, no impairment charge was recorded on these securities during the three and nine months ended September 30, 2025. At September 30, 2025 and December 31, 2024, "Other investments" also includes $5.7 million in equity securities. These securities do not have a readily determinable fair value and are carried at cost. During the nine-months ended September 30, 2025 and 2024, there were no gains or losses recognized through earnings on these equity securities. On a quarterly basis, management evaluates equity securities by reviewing the severity and duration of any decline in estimated fair value, research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, regulatory filings, the impact of interest rate changes and other relevant information. Impairment of Investment Securities We review our investment portfolio on a quarterly basis for indications of impairment. For available for sale securities, the review includes analyzing the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and whether we are more likely than not to sell the security. We evaluate whether we are more likely than not to sell debt securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy, tax position and interest rate risk position. Held-to-maturity securities are evaluated for impairment on a quarterly basis using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of credit loss expense. First Commonwealth utilizes the specific identification method to determine the net gain or loss on debt securities and the average cost method to determine the net gain or loss on equity securities. The following table presents the gross unrealized losses and estimated fair values at September 30, 2025, for both available for sale and held to maturity securities by investment category and time frame for which securities have been in a continuous unrealized loss position:
| Less Than 12 Months |  |  | 12 Months or More |  |  | Total
| Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | — |  |  | $ | — |  |  |  | $ | 2,870 |  |  | $ | (325) |  |  |  | $ | 2,870 |  |  | $ | (325) |
Mortgage-Backed Securities – Commercial | 31,438 |  |  | (740) |  |  |  | 249,463 |  |  | (57,624) |  |  |  | 280,901 |  |  | (58,364) |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | — |  |  | — |  |  |  | 447,269 |  |  | (80,976) |  |  |  | 447,269 |  |  | (80,976) |
Other Government-Sponsored Enterprises | — |  |  | — |  |  |  | 21,152 |  |  | (2,963) |  |  |  | 21,152 |  |  | (2,963) |
Obligations of States and Political Subdivisions | — |  |  | — |  |  |  | 27,436 |  |  | (2,027) |  |  |  | 27,436 |  |  | (2,027) |
Debt Securities Issued by Foreign Governments | — |  |  | — |  |  |  | 395 |  |  | (5) |  |  |  | 395 |  |  | (5) |
Corporate Securities | — |  |  | — |  |  |  | 22,497 |  |  | (1,557) |  |  |  | 22,497 |  |  | (1,557) |
Total Securities | $ | 31,438 |  |  | $ | (740) |  |  |  | $ | 771,082 |  |  | $ | (145,477) |  |  |  | $ | 802,520 |  |  | $ | (146,217) |
At September 30, 2025, fixed income securities issued by the U.S. Government and U.S. Government-sponsored enterprises comprised 94% of the estimated fair value for the total portfolio and 98% of total unrealized losses. All unrealized losses are the result of changes in market interest rates. At September 30, 2025, there are 235 debt securities in the portfolio, with 141 debt securities in an unrealized loss position. The following table presents the gross unrealized losses and estimated fair values at December 31, 2024 by investment category and the time frame for which securities have been in a continuous unrealized loss position:
| Less Than 12 Months |  |  | 12 Months or More |  |  | Total
| Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | 242 |  |  | $ | (1) |  |  |  | $ | 3,002 |  |  | $ | (431) |  |  |  | $ | 3,244 |  |  | $ | (432) |
Mortgage-Backed Securities - Commercial | 258,712 |  |  | (4,119) |  |  |  | 274,358 |  |  | (68,212) |  |  |  | 533,070 |  |  | (72,331) |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 4,759 |  |  | (56) |  |  |  | 497,445 |  |  | (111,839) |  |  |  | 502,204 |  |  | (111,895) |
Other Government-Sponsored Enterprises | — |  |  | — |  |  |  | 19,660 |  |  | (4,209) |  |  |  | 19,660 |  |  | (4,209) |
Obligation of States and Political Subdivisions | 1,104 |  |  | (11) |  |  |  | 28,097 |  |  | (3,218) |  |  |  | 29,201 |  |  | (3,229) |
Debt Securities Issued by Foreign Governments | — |  |  | — |  |  |  | 584 |  |  | (16) |  |  |  | 584 |  |  | (16) |
Corporate Securities | 9,701 |  |  | (506) |  |  |  | 17,321 |  |  | (1,930) |  |  |  | 27,022 |  |  | (2,436) |
Total Securities | $ | 274,518 |  |  | $ | (4,693) |  |  |  | $ | 840,467 |  |  | $ | (189,855) |  |  |  | $ | 1,114,985 |  |  | $ | (194,548) |
As of September 30, 2025, our corporate securities had an amortized cost and an estimated fair value of $58.2 million and $58.1 million, respectively. As of December 31, 2024, our corporate securities had an amortized cost and estimated fair value of $62.5 million and $61.5 million, respectively. Corporate securities are comprised of debt issued by large regional banks. There were 6 corporate securities out of a total of 14 that were in an unrealized loss position at September 30, 2025 and 7 corporate securities out of a total of 15 that were in an unrealized loss position at December 31, 2024. When unrealized losses exist, management reviews each of the issuer’s asset quality, earnings trends and capital position to determine whether the unrealized loss position is a result of credit losses. All interest payments on the corporate securities are being made as contractually required. There was no expected credit related impairment recognized on investment securities during the nine months ended September 30, 2025 and 2024.

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